Tips & Toes is a leading nail spa chain in the UAE looking to expand. Its General Manager, Ms. Ghafurian, noticed key weaknesses in competitors like same experiences and underinvestment in training. She differentiated Tips & Toes through relaxed customer experiences, product innovations, and a total rewards strategy for employees including training, bonuses, and career growth. However, high employee turnover remains a challenge due to job switching culture and competitors offering higher pay.

2. • Tips & Toes, chain of nail spas in UAE.
• Ms Tina Ghafurian, the General Manager of Tips & Toes
was ready to launch an aggressive growth and expansion
strategy designed to capitalize on her company’s position
as market leader and innovator.
• Competition in the wellness and beauty industry is fierce
and requires sustained innovations in diverse, new sensory
experiences and treatments for customers.
• Ms Ghafurian used a three-pronged approach: a product
leadership philosophy, and the practice of a total rewards
strategy with the employees

3. • The global wellness and beauty industry had turnover of
almost $2 trillion in 2010 comprising segments: spa industry
for $60 billion & beauty/anti-aging industries $679 billion
• In 2008, the spa and wellness industry in the Middle East
region had a turnover of $631 million, and $268 million of
that was in the UAE.
• Dubai has one of the highest concentrations of spas per
capita in the world ; given that 80 percent of beauty
customers in Dubai alone are either local nationals or
expatriates.
• Emotions are the drivers for consumer decision-making
processes regarding spas and beauty, main aspects are :
relaxation/stress management, hair/nail/waxing
maintenance, and improving appearance.

4. Ms Ghafurian noticed several key weaknesses in
the existing companies:
 All had the same look and feel when it came to
the customer experience.
 Investment into employee training was
considered a cost and therefore a liability for the
company.
 Employees were motivated primarily by direct
compensation, and so therefore would jump to
a competitor for just a minimum amount more
salary per month.

5. • Tips & Toes started with one location in Sharjah
in 2005 and at the beginning of 2012 operated a
total of 13 branches in UAE.
• For the first three years, the branches focused
on core services of nail care, waxing, thread, and
massage.
• In 2008 when they opened their new branch on
Khaleej Al Arabi Street in Abu Dhabi, they
extended their services under the roof of one-
day spa(hair care, slimming treatments, and
Moroccan and Turkish bath services)

7. • This diversity of service lines were a direct
result of listening to the market.
• The service expansion also reached to cover
the fitness and wellness market.

8. • Tips & Toes embraced the concept of luxury villas for the first time in 2011 in
Khalifa City in Abu Dhabi.
• This location consisted of five luxury villas each totaling 3,500 sq ft in size and
resembled the concept of a small village. The location offered a new line of
service: a personal training fitness studio named ‘‘PeTi’’.

9. • The Tips & Toes family started with one employee, Ms
Ghafurian, in 2005. In January 2012 it numbered 544
employees.
• 15 of whom (2 percent) were male employees, It is truly
a women-operated business.
• demographic details:
 50 percent of the employees were from Philippines
 20 percent from Nepal and India
 10 percent from Bali and the remaining
 20 percent were a mix of different nationalities including
Iranians and Arabs from Morocco, Jordan, Lebanon, and
Egypt.
• Age of employees are from 20 to 40 years old.
THE TIPS & TOES FAMILY

10. • The other companies in the market focused on
maximizing customer traffic through quick service and a
rather sterile, clinical environment, Tips & Toes
combined prompt service at a competitive price in a
much more relaxed and pampering environment.
• The second level of differentiation that distinguished Tips
& Toes from its competitors is the product leadership
strategy which is followed by Ms Ghafurian.
• Tips & Toes has been first to market with products,
promotions, and corporate social responsibility in its field
in the region. For example, Tips & Toes was the first nail
spa/salon in the UAE to offer eyelash extensions.
BUILDING THE TIPS & TOES BRAND

11. • In order to more accurately tailor nail care offerings to the unique
population mix of the UAE, Tips & Toes started its own nail polish line
called Tito offering over 120 colors. Many of the color names reflect
local culture, fashion, and sensibilities: Dubai Diva, Sandstorm, London
Calling, Macchiato, and Jumeirah.
• In terms of Corporate Social Responsibility, in 2011 Tips & Toes
publically donated 20 percent of revenue from all services involving
pink shades of nail polish during October Breast Cancer Awareness
month and will include the planting of a tree whenever a customer
avails of a particular service in June 2012.
• The third area of differentiation for Tips & Toes has been Ms
Ghafurian’s insistence on creating an engaging and productive ‘‘home
away from home’’ atmosphere for her employees through a total
rewards strategy.

12. • The primary objective is to have employees become
engaged members of a productive and energized
workforce for the organization.
• An effective TRS must satisfy the following criteria:
a. Motivate, direct and educate employees.
b. Keep employees focused on current objectives
while preparing them for future challenges.
c. Align the interest of key stockholder groups.
d. Create an image of value that will retain and engage
employees.
TOTAL REWARD STRATEGY OF TIPS & TOES

13. Ms. Ghafurian planned to invest more heavily in each
employees to get a better result.
 Technicians are provided with basic salary+
accommodation + transportation cost + extra benefit
required by Labour Laws
 Store employees can earn additional salary through
individual sales target and store wise sales target.
 Back office and management staff can earn annual bonus
of one to four times their monthly salary based on their
performance.
For individual growth new employees have training
For first month, once they are certified they can have
additional skills. A certified employee will receive a increase
in basic salary also they can upgrade their professional
status.

14.  Total pay
 Individual Growth
 Positive workplace
 Compelling future
Ms. Ghafurian brings in international trainers from Europe
USA to train her employees, she also sent few Technicians
and store managers for training and conferences in Europe
and Thailand.
She believes in promoting from within, which leads her
employees to success. There are various success stories
started at Tips & Toes, Cashier promoted to Financial
Manager, Several lower employees are promoted to Nail
Technicians.

15. Recruitment agency of Ms. Gahfurian use to hire employees according
to their criteria. The person should have the attitude i.e. willingness to
learn, to improve, make mistake and rise to take another challenge.
Tips & toes allows the employees to build talent inside gave room to
make mistakes and learn from it, to grow and rise for their ambitions.
Ms. Gahfurian instruct the employees to draw face on their palm to let
their hand smile. She wants her employees to engage with their
customer and enjoy the work which makes a positive work culture.
She wants there should be easy flow of communication in the
workplace whether with the customer or within the employees inside
the office of employees of other branches, there should be easy and
direct flow of communication among each and every employees
New employees are also familiarized with the management & every
department is provided with the manuals of new employees and their
rights.

16.  The successful implementation of the planned TRS in
Tips & Toes has a positive impact on the employees.
 Ms. Gahfurian emphasizes to her staff also to focus on
future aspects rather than only the present.
 She believes that employees training is an investment not
the cost to company which created a sense of employee
loyalty, increased in level of employee engagement and
lower turnover rate compared to the market.
 Her philosophy gives the employee satisfaction to stick
to the job.
 75% of the staff renews their employment contract to
continue to the organization and 60% of the ex
employees call HR to express regret for leaving the
organization and desires to rejoin the business.

17. Tips & toes centered on ensuring a proper
geographic coverage and increasing the
profitability of the stores. It strives to be the
biggest nail and beauty service provider in middle
east and to provide first class service to their
clients. It has four new locations openings.
They also expanding their service line to reach
out the male customer.
New market segment would require different
services.

19. key weaknesses in the existing companies in the
market:
1. All had the same look and feel when it came to
the customer experience.
2. Investment into employee training was considered
a cost.
3. Employees were motivated primarily by direct
compensation, and so therefore would jump to a
competitor for just a minimum amount more salary
per month.

21.  Tips and Toes differentiated itself from its competitors in
UAE market through customer experience, product
leadership strategy.
 They combined prompt service at a competitive price in a
much more relaxed and pampering environment.
 By creating an engaging and productive “home away from
home” atmosphere for employees through a total rewards
strategy.
 All employees had direct access to HR if they feel they
can’t approach their team leaders and store managers.
 The organizational chart reflects simple & direct
communication between employees, team leaders &
managers.

22.  Job switching nature of
employees.
 Ensuring a proper geographic
coverage and increasing
profitability of the stores.
 To expand their business through
new location openings.
 Expanding their service line to
reach out male customers.

23.  Other Competitors or
businesses attract
employees through higher
pay offers.
 The employee turnover
rate is quite high in this
industry.