Cranium Filament Reductions 2.1.1 Market demographics The profile for Cranium Filament Reductions consists of the following geographic, demographic, and behavior factors Geographics The immediate geographic target is the city of shaker Hts. and the surrounding communities with a total population of 112,000 A 20 mile geographic radius is in need of the offered services he total targeted population is 46,000 Demographics Male, female, and children Ages 3-55 The women are individuals who are concerned about getting quality hair cuts/styling but are unwilling to pay the exorbitant charges associated with women-only hair salons The men are concerned about getting a reasonably priced, convenient haircut The children do not have any major preferences other than having toys to play with while they wait. Have an individual income of at least $30, 000 Behavior Factors Are always on the lookout for convenience factors in regards to service provider Attempt to get all of the family's needs serviced at the same time if possible 2.1.2 Market Needs Cranium Filament Reductions is providing families with a one-stop option for providing a wide range of hair cutting/styling options. Cranium seeks to provide the following benefits that are important to its customers Convenience: Cranium can serve the entire family with no appointment necessary Additionally, Cranium's storefront is in a centrally located area Customer Service: Serving the customer with superior attention is what the employees are trained to provide Competitive Pricing: Cranium offers pricing that is a bit more than a traditional barber but far less than a dedicated women 's hair salon
2.1.1 Market Demographics The profile for Cranium Filament Reductions consists of the following geographic, demographic, and behavior factors: Geographics • The immediate geographic target is the city of Shaker Hts. and the surrounding communities with a total population of 112,000. • A 20 mile geographic radius is in need of the offered services. • The total targeted population is 46,000. Demographics • Male, female, and children. • Ages 3-55. • The women are individuals who are concerned about getting quality hair cuts/styling, but are unwilling to pay the exorbitant charges associated with women-only hair salons. • The men are concerned about getting a reasonably priced, convenient, haircut. • The children do not have any major preferences other than having toys to play with while they wait. • Have an individual income of at least $30,000. Behavior Factors • Are always on the lookout for convenience factors in regards to service providers. • Attempt to get all of the family's needs serviced at the same time if possible. 2.1.2 Market Needs Cranium Filament Reductions is providing families with a one-stop option for providing a wide range of hair cutting/styling options. Cranium seeks to provide the following benefits that are important to its customers: • Convenience: Cranium can serve the entire family with no appointment necessary. Additionally, Cranium's storefront is in a centrally located area. • Customer Service: Serving the customer with superior attention is what the employees are trained to provide. • Competitive Pricing: Cranium offers pricing that is a bit more than a traditional barber but far less than a dedicated women's hair salon. Cranium Filament Reductions Page 3
Cranium Filament Reductions 2.1.3 Market Trends The market trend for the hair cutting industry is one of consolidation Consolidation can be seen with the high-end hair salons as well as the full-service, full-family companies such as Best Cuts. Over the last five years there have been an expansion of upscale chain salons in major metropolitan areas. the expansion takes the form of opening new stores as well as purchasing independently-owned salons and transferring them over to the chain. Additionally this trend has occurred with the full-service family hair cutting stores Cranium is not participating in this trend of aligning itself with a chain. cranium believes that it has better insight to its local market ar ld rather apply this specialized insight instead of adopting the procedures of a national chain Market Forecast 160000 140000 120000 100000 Males Mothers w/children 40000 2005
2.1.3 Market Trends The market trend for the hair cutting industry is one of consolidation. Consolidation can be seen with the high-end hair salons as well as the full-service, full-family companies such as Best Cuts. Over the last five years there have been an expansion of upscale chain salons in major metropolitan areas. The expansion takes the form of opening new stores, as well as purchasing independently-owned salons and transferring them over to the chain. Additionally, this trend has occurred with the full-service, family hair cutting stores. The reason for this trend is similar to other industries that are consolidating; cost saving measures. Cranium is not participating in this trend of aligning itself with a chain. Cranium believes that it has better insight to its local market and would rather apply this specialized insight to its market instead of adopting the procedures of a national chain. 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2002 2003 2004 2005 2006 Males Females Mothers w/children Market Forecast Cranium Filament Reductions Page 4