Cranium Filament Reductions is a hair salon located in Shaker Hts., Ohio that allows the entirefamily to have their hair needs satisfied in one convenient location. Cranium serves men, women,and children and accepts appointments as well as walk-ins. Cranium also sells retail hair careproducts. Cranium is able to serve the entire family in one quick, convenient visit. While there are many "quick salons" like Cranium, Cranium will excel due to its attention to detailregarding customer service. Through unheralded customer attention, Cranium will slowly but surelygain market share as it services the entire family, creating long-term relationships. Lastly Cranium's location will allow it to attract a lot of walk in traffic. After month four, sales will grow steadily for Cranium. Profitability will be reached by month nineand $443,000 in revenue will be earned during year three with $61,000 in profits.
Cranium Filament Reductions is in its first year of business as a start-up company. Craniumrecognizes the fact that a comprehensive, strategic marketing plan is required to ensureprofitability and success. Cranium offers a wide range of hair cutting services. The market need isfor a one-stop, convenient, hair salon that is skilled and reasonably priced, serving the entirefamily. 2.1 Market Summary
Cranium Filament Reductions possess good information about the market and knows a great deal about the common attributes of its most prized customers. Cranium will leverage this information to understand who is served, their specific needs, and how Cranium can better serve them.
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.
•Male, female, and children.
•The women are individuals who are concerned about getting quality haircuts/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.
•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 widerange of hair cutting/styling options. Cranium seeks to provide the following benefits that areimportant 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
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 has 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...