Hair Loss SeriesModule 5: Hair Loss Market

Hair Therapies

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Hair Loss 101-5 Overview

Module 5: Hair Loss Market, Hair Therapies and other stuff

1. Hair Loss Market

2. EXT

3. Hair Cloning

4. Laser Therapy

5. Hair Care- Conditioning

6. Fun Quiz

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Hair Loss 101-5 Market Trends

Key Findings – Although 28% of people report concern

over hair loss, only a small percentage(8%) of the population takes action.

– Of the people who report any hair loss, only 16% have tried a hair loss remedy.

– People are much more likely to try shampoo and topical remedies for hair loss than other remedies. (50% Shampoo, 49% Topical, 13% Pill, 11% Hair System , 2% Surgery)

– Although shampoos and topical treatments are the most used treatments, the level of satisfaction is low.

Next Steps– There is a sizeable market of people who

are concerned with hair loss, but have yet to act. Through various marketing and advertising tactics we will work to account for a larger share of the potential market.

– Opportunistic secondary advertising (direct mail, email, etc) will offer shampoo kits.

Concern with Hair Loss

13%

15%

15%

56%

Very Somewhat Not too Not at all

38%

62%

35%

65%

0%

10%

20%

30%

40%

50%

60%

70%

Shampoo Topical

Level of Satisfaction

Extremely/Very/Somewhat

Not too/Not at all

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Hair Loss 101-5 Education/Income

Key Finding

• A negative correlation exists between income level and education level in regards to hair loss concerns. The more money or education a person has the less concerned they are with hair loss.

Hair Loss Concern & Education

38% 35% 32%

21%

0%

10%

20%

30%

40%

HS Incomplete HS Graduate CollegeIncomplete

CollegeGraduateL

evel

of

Hair

Lo

ss C

on

cern

Hair Loss Concern & Income

43% 43%

27% 27%23%

0%

10%

20%

30%

40%

50%

LT $25K $25K-35K $35K-50K $50-75K $75K ormore

Level

of

Hair

Lo

ss C

on

cern

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Hair Loss 101-5 Gender

Key Findings Women are more concerned about hair loss than men. Of the people who are concerned about hair loss, 19% of women and 13% of men try a hair

loss remedy.

32%26%

0%

50%

People Very/Somewhat Concerned with Hair Loss

Women Men

19%

13%

0%

20%

People Concerned Who Take Action

Women Men

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Hair Loss 101-5 Gender

Key Findings Men try topical solutions significantly more than women. Women try Hair Systems significantly more than men Hair transplant data was statistically insignificant (very small sample size)

51% 49% 49%

64%

13%9%

15%

7%

0%

10%

20%

30%

40%

50%

60%

70%

Shampoo Topical Pill Hair System

Hair Loss Remedies Tried

Women Men

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Hair Loss 101-5 Demographic Trends

People Very/Somewhat Concerned with Hair Loss

– Race 52% Black 42% Hispanic 25% White

– Region 33% South 26% West 31% Northeast 23% North Central

People who have tried a hair loss solution

– Race 14% Black 11% Hispanic 7% White

– Region 10% West 9% Northeast 8% South 6% North Central

Key Findings

The Black population is twice as concerned with hair loss as the White population.

The Black population is twice as likely to try a hair loss solution than the White population.

Consumers in the South report the highest levels of concern in reference to hair loss.

Consumers in the West are the most likely to try a hair loss solution.

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Hair Loss 101-5 Competitive

Key Findings Although there is a high level of brand awareness, Hair Club has a low level of favorability. People reported their next action concerning hair loss would most likely be seeking the expertise of

a doctor.

Next Steps Hair Club will continue to leverage our position as the “All Proven Solutions” provider with the

support of Hair Club’s doctors in all creative across media types. Short form campaigns will continually be produced. Awareness and opinion will be positively impacted by further short form and long form campaigns. Additional surveying will be performed every 6 months to measure the impact of our new

positioning.

Total Company Awareness as Surgical/Non-surgical Hair Loss Remedies Provider

1. 71% Hair Club

2. 29% Bosley

3. 26% MHR

4. 44% Avacor

Very/Somewhat Positive Opinions of Hair Loss Remedy Providers

1. 31% Bosley

2. 25% MHR

3. 21% Hair Club

4. 17% Avacor

Action most likely to be taken concerning hair loss

1. 25% Go to a doctor

2. 11% Purchase a shampoo from a drugstore

3. 7% Go to a company, such as Hair Club

4. 1% Go to a doctor to prescribe a pill

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Hair Loss 101-5 EXT

How does EXT work?

Best Non-Prescription Hair loss prevention. Extreme Hair Therapy improves the condition of your hair and scalp and fights hair loss by:

1. Incorporates an FDA-approved hair loss remedy (minoxidil)

2. Improves the health and condition of the scalp by reducing sebum oil build-up

3. Incorporates high quality cleansers and conditioners.

Within the EXT treatment regimen is the FOLLICLE ACTIVATOR with FDA-approved 2% and 5% Minoxidil lotion.

Stimulates hair growth in thinning areas by keeping hair follicles in the growth phase longer, growing thicker hairs and slowing further thinning.

The appearance of thicker hair can be seen after 4-6 months.

What’s the success rate? Does it really work?– Not successful for everyone. – About 35% of users experience noticeable improvement in the

appearance of their hair. More than 90% of users either stop their hair loss (i.e. keep what they have) or significantly reduce their rate of hair loss.

Minoxidil: “Follicle Activator”

– Originally an oral blood pressure medicine

– Growth phase extended: Revitalizes the hair follicle (helps blood flow to cells in scalp that grow hair) and causes the follicles to shift from a dormant phase to an active growing phase.

– Enlarges the follicles and causes follicles at rest to grow.

– Helps grow hair in 10 to 20% and slows the rate of hair loss for 90%.

– FDA approved

– Studies: Study of 393 men (18-49

years old) 5% vs. 2% Men who used 5% minoxidil experienced 45% more hair regrowth than 2% at week 48. Men also had an earlier response to treatment. Psychosocial perceptions of hair loss were also improved.

– Source: J Am Acad Dermatology 2002

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Hair Loss 101-5 Cloning

Did you know? Researchers have discovered that some follicle cells do more than

regenerate. They give off chemical signals. Nearby follicle cells -- which have shrunk during the aging process -- respond to these signals by regenerating and once again making healthy hair

This technology is still in the research phase and should be available within the next decade

WHAT IS HAIR CLONING?Hair Cloning – Harvesting healthy follicle stem cells and multiplying them.

Cloning Procedure

1. Harvesting healthy stem cells

2. Stem cell grown in laboratory culture

3. Then attached to tiny cell-scaffolds

4. Implanted to bald area of scalp

SOURCES: Ken Washenik, MD, PhD, medical director, Bosley; and clinical assistant professor of dermatology, New York University Medical Center. George Cotsarelis, professor of dermatology and director, Hair and Scalp Clinic, University of Pennsylvania School of Medicine, Philadelphia.

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Hair Loss 101-5 Laser Therapy

Report shows:

54% Increases blood supply

85% Stop the progression of hair loss

Stimulates re-growth of hair.

Repairs and improves hair shaft quality resulting in a 25% increase in volume.

Relieves irritating scalp conditions.

When used post-operatively with hair transplantation, the newly transplanted hair follicles can forego the dormancy stage.

Source: Advanced Medical Institute and

Leonard HTA

How it Works: Laser Therapy uses low level light energy to massage the scalp, while simultaneously expanding the pores. The invisible infrared light increases cellular metabolism, blood circulation and oxygen supply.

WHO IS THE BEST CANDIDATE?

Between the ages of 18 and 65

Patients with early stages of hair loss

Women that experience general thinning throughout.

TYPES OF LASER EQUIPMENT

Laser Hair Therapy 6000

LaserTek 5000

LaserTek 9000

Boston Laser

Laser Comb

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Hair Loss 101-5 Basic Hair Care

Step 1: Shampoo hair a minimum of 3 times weekly– Helps to remove dirt and buildup on the hair that can deteriorate the condition of the scalp– Shampoo must be worked through all of the hair– Rinse thoroughly to eliminate any residual detergents that can damage the hair shaft and scalp

Step 2: Condition and moisturize, moisturize, moisturize– After shampooing the hair, condition for 3 to 5 minutes– Correct use of conditioners containing light proteins, such as hydrolyzed human hair keratin proteins, can

help strengthen your hair– A good conditioner with these proteins can easily penetrate the hair shaft to replenish nutrients. These

proteins can also repair split ends. Split ends develop after the protective cuticle has been stripped away from the end of hair fibers as a result of harsh chemicals or even vigorous brushing

Step 3: Protect the hair from the elements. – Use a leave-in conditioner that contains sun block (UV protector)– Excessive exposure to the sun can damage the hair by inducing oxidation of the sulfur molecules within the

hair shaft, leaving the hair weak, brittle, dry and faded. People who bleach or lighten their natural hair color may also notice slight color changes in their hair when it is exposed to sun

– Blond hair may turn yellow, fade or become dull due to UV exposure. Even natural brunette hair tends to develop reddish hues from sun exposure due to oxidation of melanin pigments

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Surprise Promo

READY FOR A SURPRISE?

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Surprise Promo Take 5

GOLD CLIENTS AND BELOW:

Take 5: We think conditioning is sooo important that we plan to put our money where our mouth is.

Take 5: A chance to prove to our clients that conditioning works

Take 5: We will sample more than 20,000 bottles of conditioner over a two month period

Take 5: The promo will be supported with mirror clings and buttons

If you would like to participate: Contact Steve Miller, Steve Cook or Duncan Robinson

Is conditioning really that important? YES!– Slows down the natural weathering and wearing down of the cortex

– Dry hair lacks moisture, and moisture must be restored to regain the healthy look

– Lack of moisture means the number of hydrogen bonds may be reduced

– Conditioning re-establishes the hydrogen bonds and improves the moisture content of the hair by improving the weatherproofing of the cuticle

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Hair Loss 101-5 Fun Quiz

1. Describe laser therapy

2. How does Minoxidil work?

3. List 3 reasons why a person needs to condition their hair:

4. Describe hair cloning: