Supercuts 2009 Annual Report Download - page 18

Table of Contents
promotional tactics and institutional sales messages for each of its concepts 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 market of the particular salon.
Most franchise concepts maintain separate advertising funds (the Funds), that provide comprehensive advertising and sales promotion
support for each system. The Supercuts advertising fund is the Company's largest advertising fund and is administered by a council consisting of
primarily franchisee representatives. The council has overall control of all of the funds expenditures and operates in accordance with terms of the
franchise operating and other agreements. 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 concept
image and high loyalty.
Salon Education and 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, waving 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 services, 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 instruct the
stylists in current styling trends. Stylist training is achieved through seminars, workshops and DVD based programs. The Company was the first
in its industry to develop a DVD based training system in its salons and currently has over 200 DVDs 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.
Salon Staff Recruiting and Retention:
Recruiting quality managers and stylists is essential to the establishment and operation of successful salons. In search of salon managers,
the Company's supervisory team recruits or develops and promotes from within those stylists that display initiative and commitment. The
Company has been and believes it will continue to be successful in recruiting capable managers and stylists. The Company believes that its
compensation structure for salon managers and stylists is competitive within the industry. Stylists benefit from the Company's high-traffic
locations and receive a steady source of new business from walk-in customers. In addition, the Company offers a career path with the
opportunity to move into managerial and training positions within the Company.
Salon Design:
The Company's salons are designed, built and operated in accordance with uniform standards and practices developed by the Company
based on its experience. Salon fixtures and equipment are generally uniform, allowing the Company to place large orders for these items with
cost savings due to the economies of scale.
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