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A Cut Above Barbershop A Cut Above Barbershop

(Barbering and grooming services)(Barbering and grooming services)

Cameron JohnsonCameron Johnson

Justin JamesJustin James

Michael MattiaMichael Mattia

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AgendaAgenda• Business ObjectivesBusiness Objectives

• StrategiesStrategies

• Mission/Motto Mission/Motto

• Keys to Success Keys to Success

• Industry Analysis Industry Analysis

• TrendTrend

• OperationsOperations

• Services Services

• Price Price

• Marketing and SalesMarketing and Sales

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Executive summaryExecutive summary

• Business ObjectivesBusiness Objectives• Become an established community destination Become an established community destination

by end of Year 1by end of Year 1• Have a clientele return rate of 90% by end of Have a clientele return rate of 90% by end of

Year 1Year 1• To create a service-base company whose goal is To create a service-base company whose goal is

to exceed customer's expectationsto exceed customer's expectations• To increase the number of clients services by at To increase the number of clients services by at

least 20% per year through superior performance least 20% per year through superior performance and word-of mouth referralsand word-of mouth referrals

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Executive summary cont’dExecutive summary cont’d

• Strategies Strategies Our promotional strategy will be two-fold: first phase promotion will advertising before, during, and six months following our opening; the second phase advertising will deal with long-term advertising.

• First Phase Promotions

• Advertising

• We will utilize local newspaper, local social magazines, local radio, mail-outs to all households within the immediate 10-mile radius Internet

• We will have a website featuring our products and services.

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Executive summary Cont’DExecutive summary Cont’D

• Long Term Strategies Long Term Strategies Advertising

• We will continue to place ads in the local social magazines year around. Radio and television ads will be done only when we have sale promotions during the holiday season

• Internet

• We will continue with our website.

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Executive summary cont’dExecutive summary cont’d

•Mission:Mission:

To create a comforting and stimulating To create a comforting and stimulating atmosphere that provides world class atmosphere that provides world class

barbering and grooming services while barbering and grooming services while embodying the essence of manhood in embodying the essence of manhood in

all formsall forms

•Motto:Motto:

A Cut Above -- Truly a Man’s WorldA Cut Above -- Truly a Man’s World

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Executive summary cont’dExecutive summary cont’d

• Keys to Success Keys to Success

• Our competitive edge is a combination of our unique services, outstanding location, and our interaction with our clients.

• By providing our clients an old school gentleman's club like atmosphere as well as providing them with world class services that can not be found in any other facility such as ours, Our clients will come to depend on our unique services and fulfilling environment.

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Market analysisMarket analysis

• Industry Analysis: Industry Analysis: Barbers cut, trim, shampoo, and style hair mostly for male clients. They also may offer scalp treatments and facial shaving. In many States, barbers are licensed to color, bleach, and highlight hair, and to offer permanent-wave services. Barbers also may provide skin care and nail treatments.

• Industry Leaders: Industry Leaders: • 71 Barbershops 71 Barbershops • Big Boys Barbershops of AtlantaBig Boys Barbershops of Atlanta• Exodus Barbershops Exodus Barbershops

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Market analysisMarket analysis

• Target Market : “The Professional Male”Target Market : “The Professional Male”• African-American MaleAfrican-American Male• Professionals and Retirees Professionals and Retirees • $70K +$70K +• Age: 25 +Age: 25 +• Atlanta Metropolitan AreaAtlanta Metropolitan Area• Men with SonsMen with Sons

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Market analysisMarket analysis

•Trends jTrends job opportunities should generally be good, A large number of job openings will come about from the need to replace workers who transfer to other occupations, retire, or leave the labor force for other reasons.

•Median hourly wages in May 2010 for barbers, including tips, were $11.56. The middle 50 percent earned between $8.93 and $14.69. The lowest 10 percent earned less than $7.56, and the highest 10 percent earned more than $19.51.

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Swot analysisSwot analysis

Strengths

Unique ServicesQuality of ServiceLocation Atmosphere

Weaknesses

No Low-Cost servicesNot yet a recognized brandStart-up timing

Opportunities

Untapped African-American MarketPossibility to become a front-runnerHeavy traffic flow

Threats

Clientele unfamiliar with servicesEstimated time of returnLow-cost Providers

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OperationsOperations

• Customization Customization • Job process – provides flexibility needed for Job process – provides flexibility needed for

customer satisfaction and adherence to niche customer satisfaction and adherence to niche strategystrategy

• Front office strategy – Front office strategy – • High customer contactHigh customer contact• Direct interaction with the customerDirect interaction with the customer• High contact service is adapted and tailored to each High contact service is adapted and tailored to each

customercustomer• Customer has more choice in how each step of the Customer has more choice in how each step of the

process is carried outprocess is carried out

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ServicesServices

• Hair: Dark Caesar, Beijing, Fade, Complete Hair: Dark Caesar, Beijing, Fade, Complete Shaves, Custom Haircut ($23)Shaves, Custom Haircut ($23)

• Shaves: Straight Razor Shave, Hot Towel, Razor Shaves: Straight Razor Shave, Hot Towel, Razor Bump Treatment ($22)Bump Treatment ($22)

• Nails: Manicure, Pedicure ($25)Nails: Manicure, Pedicure ($25)

• Shoe Shines: Standard shoe shine chosen to by Shoe Shines: Standard shoe shine chosen to by the customer to be performed during services the customer to be performed during services or while awaiting ($5)or while awaiting ($5)

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Services cont’dServices cont’d

• PackagesPackages• ““Entry Level” – Line up, Loose End Trim, Neck ShaveEntry Level” – Line up, Loose End Trim, Neck Shave

($18)($18)• ““The Executive” – Haircut, Straight Razor Shave, The Executive” – Haircut, Straight Razor Shave,

Shoeshine ($35)Shoeshine ($35)• ““The CEO” – Haircut, Straight Razor Shave, Facial The CEO” – Haircut, Straight Razor Shave, Facial

Massage Shoeshine, ($48)Massage Shoeshine, ($48)• ““The Chairman” -- Haircut, Straight Razor Shave, The Chairman” -- Haircut, Straight Razor Shave,

Facial, Facial Massage, Shoeshine Facial, Facial Massage, Shoeshine ($60) ($60)

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Pricing strategyPricing strategy

• Prestige Pricing Prestige Pricing • High price is charged to signify that services are High price is charged to signify that services are

exceptionally fine.exceptionally fine.• Most commonly seen in cars, clothes, and jewelry.Most commonly seen in cars, clothes, and jewelry.• Target market’s lifestyle will agree with prestige Target market’s lifestyle will agree with prestige

pricing and therefore is naturally prestige oriented.pricing and therefore is naturally prestige oriented.

Bundled pricingBundled pricing• Service packages are sold together to create a Service packages are sold together to create a

greater value and to enhance the barber shop greater value and to enhance the barber shop experience.experience.

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BrandBrand

• A Cut Above as a brand will strive to embody A Cut Above as a brand will strive to embody its name.its name.

• The service names were strategically chosen The service names were strategically chosen to best identify with our target market.to best identify with our target market.

• We plan on capturing emotional benefits by We plan on capturing emotional benefits by encouraging clients to share this experience encouraging clients to share this experience with their sons. with their sons.

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Marketing StrategyMarketing Strategy

• Our marketing strategy is the key to our Our marketing strategy is the key to our success:success:

1.1. Focused Differentiation ( Niche ).Focused Differentiation ( Niche ).2.2. Strategic Fit - Buyer preferences and needs Strategic Fit - Buyer preferences and needs

are distinctly different. are distinctly different. 3.3. Competitive advantage – Attribute appeal Competitive advantage – Attribute appeal

specifically to niche membersspecifically to niche members4.4. Service Line – Attributes tailored of the tastes Service Line – Attributes tailored of the tastes

and requirements of niche membersand requirements of niche members

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Marketing strategy cont’dMarketing strategy cont’d

5. Marketing emphasis – Communicates how 5. Marketing emphasis – Communicates how service offering does the best job of meeting service offering does the best job of meeting niche buyers expectationsniche buyers expectations

6. Keys to sustaining strategy – Constant 6. Keys to sustaining strategy – Constant commitment to servicing niche better than commitment to servicing niche better than rivals. rivals.

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Sales strategySales strategy

1.1. Our sales strategy is to sell our barbers to the Our sales strategy is to sell our barbers to the male professional as a uniquely desirable male professional as a uniquely desirable destination that will enhance their lives.destination that will enhance their lives.

2.2. We will sell Cornerstones through each We will sell Cornerstones through each employee's skill, courtesy, and warmth, employee's skill, courtesy, and warmth, creating a trusting impression on all clients, creating a trusting impression on all clients, and establishing loyalty and return visits. We and establishing loyalty and return visits. We will ensure each visit is a relaxing and will ensure each visit is a relaxing and memorable experience. memorable experience.

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Sales strategy cont’dSales strategy cont’d

1.1. Our comprehensive brochure will explain the Our comprehensive brochure will explain the nature of our services, and how this benefits nature of our services, and how this benefits our clients.our clients.

1.1. Our website will be comprehensively Our website will be comprehensively informative of our services, environment and informative of our services, environment and their benefits.their benefits.

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Thank YouThank You

Are we on the right Are we on the right track?track?