Strategies

Plans and Strategies

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The Vanity and Glamour market far exceeds the Dermatological Hair Restoration marketplace, which tends to depend on expensive and less consistent surgical procedures. The ManeGain HairGrowerTM is a self-sustaining computer based device requiring no attendant or specialist to operate. It can be controlled by the customer’s cell or smart phone. Hair stylist find that the HairGrowerTM gives them better hair to perform their art with, creating more satisfied clients and thus better business. Stylists become marketers of the service and since they already have a close relationship with the client, it becomes an easy therapy to recommend and purchase. In addition, high end salons are far better at marketing the hair growing experience and a beauty treatment, as opposed to a Doctor’s medical practice, as well as providing a friendly and “warm’ environment for it to take place in.

It is ManeGain’s intent to focus on raising the value of the Company by expanding our footprint of placements of our HairGrower device in order to position ourselves for sale to one of the major hair and/or glamour players (other companies) in either the domestic or international Salon and Beauty market. The Company’s goal is to accomplish this within a 3 to 4 year time frame. Typically this approach means that the investors either sell their stock to the company buying ManeGain for cash or trade their ManeGain stock for stock in the company buying ManeGain. In either case, ManeGain will be acquired and probably become a division of the purchasers. The possible buyers  include but are not limited to Unilever, Proctor & Gamble; Henkel AG, Colgate-Palmolive, Johnson & Johnson, Shiseido, Bosley, Coty, Paul Mitchel, L’Oreal, Estee Lauder, and Koa Corporation as examples.

ManeGain plans to use the funding from this IPO to accomplish 7 primary tasks:

  1. Obtain FDA 510(k) clearance for the HairGrowerTM though additional clinical trials and the FDA vetting process, this will take the FDA from 5 to 6 months to complete.
  2. Set up an FDA approved manufacturing facility and build FDA approved HairGrowersTM for placement in salons.
  3. File additional and amended patents on the HairGrowerTM and develop additional products.
  4. Update our web presence as well as improve and expand our internet back-end software to account for our mobile applications and some of the patents we intend to file.
  5. Set up the ManeGain University to train and evangelize stylists from the salons and develop our brand ambassadors.
  6. Start to seed high end salons with  implementation of our marketing plan and commercialization of the ManeGain services  products, including placement of the HairGrowerTM within these salons.
  7. Recruit celebrity endorsements from high profile individuals, partner with celebrity stylists, and start cultivating social media hair and beauty influences and for other general corporate marketing and sales purposes.

ManeGain will be using a ‘Long Tail” approach to penetrate the market.  The traditional way was to market to the whole world at a very high cost of exposure. Instead we leverage the local high-end Salons and market to those who can get them for our service or fulfillment. Essentially developing a “tribe” of users within this niche market. Why spend money on advertising in the middle of North Dakota when there are no High-end Salons there? Instead, we will market to the locale where people are affluent and want to be glamorous. By selectively using only successful salons catering to this market, we can readily establish contact and ‘presence’ with the customers who want the results we offer. This dramatically reduces the cost of market entry and brand development, which in turn increases profits. As locales get more prosperous, economically advantaged people are concentrated around them – and as such it becomes easier and more cost-effective to focus on the most profitable ‘zip codes’ rather than the whole country.

Tribes are self-organizing social groups that form based on commonalities such as interests, values, community, profession, needs or aspirations. While tribes have always existed, they have expanded rapidly as a result of tools such as social media that resulted from the commercialization of the internet beginning in the mid-1990s. Tribes are most effected when associated with niche marketing and relationship marketing, both of which are highly susceptible to what is known as influencers. Influencers in the hair and beauty markets traditionally have been either celebrities, models, or high profile stylists. The dawn of the internet and the development of tribes and new-new influencers are social media mavens who have developed a special brand of niche marketing. They essentially have become the influencers equal to the traditional celebrities and spoke persons.

ManeGain use the power of the internet in combination of personal local brick-and-mortar fulfillment of its therapy. While the salon’s Stylist handles the personal touch of sales with the customer, the Internet is how the relationship is maintained. Everything from education though appointment scheduling and billing to turning the HairGrowerTM on and off is done on the internet on their smart or cell phone. All the salon needs to do is be open for them to use the machine. More importantly, once the initial seed investment in marketing and product awareness is expended in the first 6 months, ManeGain investment level drops to a precipitously low run-rate. As such, our cost to deliver the service then more resembles a true internet company than a retail brick-and-mortar one. This is Internet service with local fulfillment.

The Company’s Go-To-Market strategy is actually how we plan to execute on our plan. This is the “blocking and tackling” of growing our business from zero locations to 300 in three years and reaching a revenue rate over $6.5 million per month and profits exceeding $3.5 per month. First we need to identify the top 200 High End Salons in the fifty different locations in the country, and approach them with our novel business model and execution plan. This plan is in detail below in the Promotional segment.

Next, once we have an agreement with a salon, or multiple salons, it is vitally important that we develop out “brand ambassadors” or evangelists in salon. In order to achieve this goal, ManeGain first is given two of the salon’s top stylists (preferably one male and one female) to attend our ManeGain University. There, they will not only learn about our “cult of culture” but also all the ins and outs of our “software as a service” web presence, out technology benefits, and how to market and sell the regrow, rejuvenation, and revitalization of a person’s hair. But we do NOT stop there. ManeGain will also go in salon to do a “rep night” when every stylist in the salon can learn firsthand about the HALO TherapyTM. The Company will encourage every stylist to try the HALO Therapy at least 10 times so they can speak from firsthand knowledge about its effects and efficacy.

Finally, once the training is completed it is now about promoting ManeGain and each salon. Of course, that involves placing ManeGain information on the salon’s website and the salon’s information on ManeGain’s. But it goes way beyond that including writing press releases, a direct eMailer to all the salon clientele, ManeGain doing a direct mailer, and placing ads in the local high end style, fashion, and beauty magazines, and finally have an in salon party where ManeGain personnel are present to answer questions from clients and stylists. Essentially, IT IS ALL ABOUT THE EXPERIENCE OF MANEGAIN at this juncture. It is vitally important that we cultivate an air of excitement and uniqueness within the salon, for we have found that people tend to talk about things that are new, novel, and exciting, and just as importantly, will actually help their clients.