Purpose Provide haircuts and grooming services to men at UW-Milwaukee Provide other haircut and styling services such as: Beard and mustache trims Hot towel treatments Straight razor neck shaves Hair washing Scalp and neck massage Sell a variety of hair and shaving products Tyler
Competitive Edge and Differentiators Gabe
Consumer survey results 43% would use a Barber Shop on Campus 42% get their haircut at least once a month Around 13,500 male students enrolled this past semester Top priorities for Male UWM students in Choosing a Barber shop: Quality of haircut Convenience Customer Service Price Lenny
Operation hours Saturday 10:00am-3:00pm Monday, Thursday, Friday 10:00am-6:00pm Tuesday, Wednesday 12:00pm-9:00pm Saturday 10:00am-3:00pm Kristyn
services Buzz/Crew Cut Standard Hair Cut Moustache/Beard Trim $12 A haircut will include the haircut, straight razor neck shave, hot towel, wash, and scalp/neck massage Moustache/Beard Trim 5 with any other service, $7 on its own. This will include the trimming and shaping of a beard and/or mustache Eyebrow Trim/Shaping $3 (must be used with a haircut) Buzz/Crew Cut $10 This includes a buzz cut, straight razor neck shave, wash, and hot towel service Kristyn
American Crew products Classic Body Wash Daily Moisturizing Shampoo Boost Cream Daily Shampoo Fiber Grooming Cream Super Glue Moisturizing Shave Cream Post-Shave Cooling Lotion Precision Shave Gel Kristyn
Positioning of Our product Barber shops are classified in their own industry, separate from salons and beauty salons. The industry itself has had quite a bit of fluctuation with the number of establishments that open and close over the course of a year, but has had steady and substantial growth in total sales for the industry on both a national and regional level. Kristyn
national Number of establishments - 4,293 Total Annual sales - $567,795,000 Average Annual sales per establishment - $132,260 Total Payroll Expenses - $257,808,000 Average Payroll Expenses per establishment - $60,050 Total Paid Employees - 14,789 Average number of paid employees per establishment - 3.4 Average yearly income per paid employee - $17,430 Average % of sales to payroll - 45% Kristyn
wisconsin Number of establishments - 91 (2.1% of all national establishments) Total Annual Sales - $11.067,000 (1.95% of total national sales) Average annual sales per establishment - $121,615 Total Payroll Expenses - $5,253,000 Average payroll expense per establishment - $57,725 Total Paid Employees - 329 Average number of paid employees per establishment - 3.6 Average yearly income per paid employee - $15,967 ($1,463 below the national average) Kristyn
competitors Sal’s on Oakland which is around ¾ of a mile from campus on Oakland Ave. There are over 30 indirect competitors within a 5 mile radius of UWM including Cloud 9 Salon, Capriccio's Salon, Cost Cutters, Super Cuts, and other salons. Kristyn
Price Strategies We offer mainly services, we have no variable costs (other than the shampoo used for the hair washing). All of our prices were based off of industry data nationally and locally as well as from the marketing research survey. The majority of consumers said that they would spend $10.00 and up for a haircut and since our standard cut comes with a straight razor neck shave, a hot towel, hair wash, and scalp massage we decided to do $12.00. The lowest price of our near competitors was 6.99, but that only included a haircut and nothing else. The average price of a haircut in Milwaukee is $14.00. For our products, the mark-up is right at 100% (which is the industry average) and less than our competitor (The Men’s Room) who sells the same products as we do. We offer discounts and promotions every month during the school year on both our products and services Gabe
Channels of Distribution Campus Cuts will rely on promotion through UWM sponsored channels such as the UWM Post. Campus cuts will also use Word of mouth promotion as well as fliers. Last but not lease Campus Cuts will use the internet to its advantage by having links to Facebook, Twitter and Foursquare through its own campuscutsuwm.com website. Gabe
Marketing and sales strategy Campus Cuts will focus on two markets Male UWM students between the ages of 18-24 Survey results project around 2,400 cuts per month (75-100 cuts per day) for this market Professors and faculty at UWM Make up 10% of UWM population Would enjoy the convenience of having an on campus barber shop Tyler
Promotion Promotions at Campus Cuts are continually being updated Some examples of upcoming promotions are as follows: September 1st-31st – Bring in a friend and receive a buy one get one free deal October 1st-31st – American Crew products 10% off November 1st- December 31st – Holiday special (free haircut with $50 or more purchase on gift cards) Promotions are organized around events and holidays going on that month Strategically targeted to catch the eye of our customers Tyler
Sales force Owners Lenny Robert Becky Stylists – 4 independent contracts Future growth Lenny
references Census Bureau Homepage." Census Bureau Homepage. Web. 03 May 2012. <http://www.census.gov>. Free Business Statistics, Financial Ratios and Industry Statistics by BizStats." Free Business Statistics, Financial Ratios and Industry Statistics by BizStats. Web. 03 May 2012. <http://www.bizstats.com>. American Crew: Official Supplier to Men. Web. 03 May 2012. <www.americancrew.com>. The Men's Room Barber Shop. Web. 03 May 2012. <www.mensroombarbershop.com>. The Barber Shop (Rodchester MN)." Personal interview. 21 Mar. 2012 UWM Union Director." Personal interview. 05 Apr. 2012. Kotler, Philip, and Kevin Lane. Keller. A Framework for Marketing Management. Boston, MA: Pearson, 2012. Print. Tyler