Supercuts 2003 Annual Report Download - page 18

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Table of Contents
Markets and Marketing
The Company maintains various advertising, sales and promotion programs for its salons, budgeting a predetermined percent of revenues for
such programs. The Company has developed promotional tactics and institutional sales messages for each of its divisions targeting certain
customer types and positioning each concept in the marketplace. Print, radio, television and billboard advertising are developed and supervised
at the Company’s headquarters, but most advertising is done in the immediate area of the particular salon.
Most franchise brands maintain separate Advertising Funds (the “Funds”), managed by the Company, that provide comprehensive advertising
and sales promotion support for each system. All stores, company-owned and franchised, contribute to the Funds, the majority of which are
allocated to the contributing market for media placement and local marketing activities. The remainder is allocated for the creation of national
advertising campaigns and system-wide activities. This intensive advertising program creates significant consumer awareness, a strong brand
image and high loyalty.
Salon Training Programs
The Company has an extensive hands-on training program for its stylists which emphasizes both technical training in hairstyling and cutting,
hair coloring, perming and hair treatment regimes as well as customer service and product sales. The objective of the training programs is to
ensure that customers receive professional and quality service, which the Company believes will result in more repeat customers, referrals and
product sales.
The Company has full- and part-time artistic directors who train the stylists in techniques for providing the salon services and who instruct the
stylists in current styling trends. The Company also has an audiovisual based training system in its salons designed to enhance technical skills
of stylists.
The Company has a customer service training program to improve the interaction between employees and customers. Staff members are trained
in the proper techniques of customer greeting, telephone courtesy and professional behavior through a series of professionally designed video
tapes and instructional seminars.
The Company also provides regulatory compliance training for all its field employees. This training is designed to help supervisors and stylists
understand employee regulatory requirements and compliance with these standards.
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