Supercuts’ Market Segmentation

All of our target market segments are either of American, Canadian, British, or Puerto Rican nationality and come from lower to middle social classes. Segment 1: 18-50 years old men Supercuts have identified several target market segments that will be pursued. The largest market segment (65%1) are male customers aged between 18 and 50 years old who want to have a current look at an affordable price in a convenient location. These mostly urban area citizens are usually in hurry and aren't too picky with the design of their hair cut. These customers come to the salon on average every two weeks to let their hair cut.They hardly ever buy hair products from the company. Estimate of market size: 42. 3 million (32 million for US only) Support requirements: Supercuts have reasonable prices and have a lot of salons which are located in strip malls to maximize visibility and convenience. With the company, no appointments are necessary so a customer can get his hair done whenever he has few min utes of free time. Positioning statement: â€Å"Quick and fashionable haircut will move you faster on your way to success. † How to reach the segment: * Promotion via email, newsletters * Billboards on freeways, in malls Articles or advertisements in newspapers, magazines * Free haircut events in the malls * Reference rewards Price sensitivity: Because they are coming from lower or middle income category, the customers could be sensitive if the prices rise. However, if the company is loyal to them and they become long-time customers, they will most likely remain with Supercuts because to find a new good salon would take too much effort and time which these men don’t have. Segment 2: Parents of 3-13 years old children Another segment of their target market would be parents of usually younger children, between 3-13 years old.These parents want to get a cute haircut for their children. They require fast service for good price. They expect to bring their kids, get the hair cut done in 5 minutes, and leave. Children don’t like waiting. They require action or entertainment otherwise they will get bored and they will start crying or misbehave. What the parents are looking for is a nice hairdresser who will talk to the child, or who will give them a toy to play while she/he will be working on the child’s haircut. By this both the hairdresser and the parent will avoid stress from having to make the child calmer when he/she doesn’t want to get haircut.Going to hairdresser with a child should be from now a pleasant situation where a parent can relax with a cup of coffee and magazine in the hands, and doesn’t have to feel any negative feelings, inconvenience, or stress. Regarding necessity of getting a haircut, little boys usually need it once in a month or two, girl from two months to a year depending on the haircut. Estimate of market size: 33. 5 million (25 million for US only) Support requirements: Company’s priorities a re to be fast and convenient for an affordable price which will catch the attention of many parents.Hairdressers are very talkative and nice so children will not feel afraid of getting a haircut with them. Supercuts’ staff is trying to build loyalty with their little customers so when they grow up they continue using their services. Positioning Statement: â€Å"With us you can tranquilly drink your cup of coffee while we will be taking care of your child. † How to reach the segment: * TV commercials, advertisements in magazines * Billboards on freeways, in malls * Advertisements directly to mail box Free haircut events for children at elementary and middle schools, sporting ; extracurricular events while having parents present * Reference rewards Price sensitivity: Parents appreciate the convenience of having a stress-free salon visit with their child more than possibly higher prices. On the other hand, Supercuts still must consider the families’ lower or middle class background. Segment 3: Busy parents Third segment would be mothers or fathers with children requiring a lot of attention, especially employed parents for who time is money and who have to take care of their children at the same time, no matter if it is the man or oman taking care. They need to find few minutes in their busy schedule and get a new haircut for themselves. More than for complicated designs, they are looking for an easy haircut. At the same time, they still want to look chic. Estimate of market size: 29 million (23. 5 million for US only) Support requirements: Supercuts’ benefits are an easy access, parking, and the salon’s proximity to other big stores or supermarkets like Wal-Mart and Target. Customers can get their fast haircuts and do household shopping at once.From another point of view, Supercuts are known for staying on top of hairstyle trends, therefore the popularity of these salons increased by the interest of customers who would like to l ook fashionable. Keeping up with the changing trends is essential to the company. â€Å"We added ‘Supercolor’ quick color services since so many customers are now interested in getting highlights† says Alan Storry, the vice president of  Franchise  Development for Regis Corp. 2 At Supercuts, the staff often offer free samples of hair products which especially a lot of women appreciates. Positioning Statement: â€Å"Look chic in less than 20 minutes. How to reach the segment: * Promotion via email, SMS * Advertisements and discount cards in magazines, newspapers * Billboards on freeways, in malls * Reference rewards Price sensitivity: Lower prices are expected for this segment, but it might differ from family to family. Some families have a lot of children therefore they cannot afford getting expensive haircuts, some families have just one child, so even though the parents can still be really busy, they could pay for their haircut a bit more. Sources: 1 http: //www. wikinvest. com/stock/Regis_(RGS)/Supercuts 2 http://www. bison. com/profile_Supercuts_06012007