Hair Loss Series Module 5 Hair Loss Market

Hair Loss Series Module 5: Hair Loss Market Hair Therapies

Hair Loss 101 -5 Overview 4 Module 5: Hair Loss Market, Hair Therapies and other stuff 1. 2. 3. 4. 5. 6. 2 Hair Loss Market EXT Hair Cloning Laser Therapy Hair Care- Conditioning Fun Quiz

Hair Loss 101 -5 4 Key Findings – – Although 28% of people report concern over hair loss, only a small percentage(8%) of the population takes action. Of the people who report any hair loss, only 16% have tried a hair loss remedy. People are much more likely to try shampoo and topical remedies for hair loss than other remedies. (50% Shampoo, 49% Topical, 13% Pill, 11% Hair System , 2% Surgery) Although shampoos and topical treatments are the most used treatments, the level of satisfaction is low. 4 Next Steps – – 3 There is a sizeable market of people who are concerned with hair loss, but have yet to act. Through various marketing and advertising tactics we will work to account for a larger share of the potential market. Opportunistic secondary advertising (direct mail, etc) will offer shampoo kits. Market Trends

Hair Loss 101 -5 Education/Income 4 Key Finding • A negative correlation exists between income level and education level in regards to hair loss concerns. The more money or education a person has the less concerned they are with hair loss. 4

Hair Loss 101 -5 Gender 4 Key Findings Ø Women are more concerned about hair loss than men. Ø Of the people who are concerned about hair loss, 19% of women and 13% of men try a hair loss remedy. 5

Hair Loss 101 -5 4 Key Findings Ø Men try topical solutions significantly more than women. Ø Women try Hair Systems significantly more than men Ø Hair transplant data was statistically insignificant (very small sample size) 6 Gender

Hair Loss 101 -5 4 People Very/Somewhat Concerned with Hair Loss – Race w 52% Black w 42% Hispanic w 25% White – Region w w Ø 33% South 26% West 31% Northeast 23% North Central Demographic Trends 4 People who have tried a hair loss solution – Race w 14% Black w 11% Hispanic w 7% White – Region w w 10% West 9% Northeast 8% South 6% North Central Key Findings 7 Ø The Black population is twice as concerned with hair loss as the White population. Ø The Black population is twice as likely to try a hair loss solution than the White population. Ø Consumers in the South report the highest levels of concern in reference to hair loss. Ø Consumers in the West are the most likely to try a hair loss solution.

Hair Loss 101 -5 4 Total Company Awareness as Surgical/Non-surgical Hair Loss Remedies Provider 1. 2. 3. 4. 71% Hair Club 29% Bosley 26% MHR 44% Avacor Competitive 4 Very/Somewhat Positive Opinions of Hair Loss Remedy Providers 1. 2. 3. 4. 31% Bosley 25% MHR 21% Hair Club 17% Avacor 4 Action most likely to be taken concerning hair loss 1. 25% Go to a doctor 2. 11% Purchase a shampoo from a drugstore 3. 7% Go to a company, such as Hair Club 4. 1% Go to a doctor to prescribe a pill 4 Key Findings Ø Although there is a high level of brand awareness, Hair Club has a low level of favorability. Ø People reported their next action concerning hair loss would most likely be seeking the expertise of a doctor. 4 Next Steps Ø Hair Club will continue to leverage our position as the “All Proven Solutions” provider with the support of Hair Club’s doctors in all creative across media types. Ø Short form campaigns will continually be produced. Ø Awareness and opinion will be positively impacted by further short form and long form campaigns. Ø Additional surveying will be performed every 6 months to measure the impact of our new positioning. 8

Hair Loss 101 -5 How does EXT work? Best Non-Prescription Hair loss prevention. Extreme Hair Therapy improves the condition of your hair and scalp and fights hair loss by: 1. Incorporates an FDA-approved hair loss remedy (minoxidil) 2. Improves the health and condition of the scalp by reducing sebum oil build-up 3. Incorporates high quality cleansers and conditioners. w Within the EXT treatment regimen is the FOLLICLE ACTIVATOR with FDA-approved 2% and 5% Minoxidil lotion. w Stimulates hair growth in thinning areas by keeping hair follicles in the growth phase longer, growing thicker hairs and slowing further thinning. w The appearance of thicker hair can be seen after 4 -6 months. 4 What’s the success rate? Does it really work? – – 9 Not successful for everyone. About 35% of users experience noticeable improvement in the appearance of their hair. More than 90% of users either stop their hair loss (i. e. keep what they have) or significantly reduce their rate of hair loss. EXT • Minoxidil: “Follicle Activator” Originally an oral blood pressure medicine Growth phase extended: Revitalizes the hair follicle (helps blood flow to cells in scalp that grow hair) and causes the follicles to shift from a dormant phase to an active growing phase. Enlarges the follicles and causes follicles at rest to grow. Helps grow hair in 10 to 20% and slows the rate of hair loss for 90%. FDA approved Studies: Study of 393 men (18 -49 years old) 5% vs. 2% Men who used 5% minoxidil experienced 45% more hair regrowth than

Hair Loss 101 -5 Cloning WHAT IS HAIR CLONING? Hair Cloning – Harvesting healthy follicle stem cells and multiplying them. Cloning Procedure 1. 2. 3. 4. Harvesting healthy stem cells Stem cell grown in laboratory culture Then attached to tiny cell-scaffolds Implanted to bald area of scalp Did you know? Researchers have discovered that some follicle cells do more than regenerate. They give off chemical signals. Nearby follicle cells -- which have shrunk during the aging process -- respond to these signals by regenerating and once again making healthy hair This technology is still in the research phase and should be available within the next decade SOURCES: Ken Washenik, MD, Ph. D, medical director, Bosley; and clinical assistant professor of dermatology, New York University Medical Center. George Cotsarelis, professor of dermatology and director, Hair and Scalp Clinic, University of Pennsylvania School of Medicine, Philadelphia. 10

Hair Loss 101 -5 Laser Therapy How it Works: Laser Therapy uses low level light energy to massage the scalp, while simultaneously expanding the pores. The invisible infrared light increases cellular metabolism, blood circulation and oxygen supply. TYPES OF LASER EQUIPMENT v Laser Hair Therapy 6000 v Laser. Tek 5000 v Laser. Tek 9000 v Boston Laser v Laser Comb Report shows: v 54% Increases blood supply v 85% Stop the progression of hair loss v Stimulates re-growth of hair. v Repairs and improves hair shaft quality resulting in a 25% increase in volume. v Relieves irritating scalp conditions. WHO IS THE BEST CANDIDATE? v Between the ages of 18 and 65 v Patients with early stages of hair loss v Women that experience general thinning throughout. 11 v When used post-operatively with hair transplantation, the newly transplanted hair follicles can forego the dormancy stage. Source: Advanced Medical Institute and Leonard HTA

Hair Loss 101 -5 Basic Hair Care 4 Step 1: Shampoo hair a minimum of 3 times weekly – Helps to remove dirt and buildup on the hair that can deteriorate the condition of the scalp – Shampoo must be worked through all of the hair – Rinse thoroughly to eliminate any residual detergents that can damage the hair shaft and scalp 4 Step 2: Condition and moisturize, moisturize – After shampooing the hair, condition for 3 to 5 minutes – Correct use of conditioners containing light proteins, such as hydrolyzed human hair keratin proteins, can help strengthen your hair – A good conditioner with these proteins can easily penetrate the hair shaft to replenish nutrients. These proteins can also repair split ends. Split ends develop after the protective cuticle has been stripped away from the end of hair fibers as a result of harsh chemicals or even vigorous brushing 4 Step 3: Protect the hair from the elements. – Use a leave-in conditioner that contains sun block (UV protector) – Excessive exposure to the sun can damage the hair by inducing oxidation of the sulfur molecules within the hair shaft, leaving the hair weak, brittle, dry and faded. People who bleach or lighten their natural hair color may also notice slight color changes in their hair when it is exposed to sun – Blond hair may turn yellow, fade or become dull due to UV exposure. Even natural brunette hair tends to develop reddish hues from sun exposure due to oxidation of melanin pigments 12

Surprise Promo READY FOR A SURPRISE? 13

Surprise Promo Take 5 4 GOLD CLIENTS AND BELOW: 4 Take 5: We think conditioning is sooo important that we plan to put our money where our mouth is. 4 Take 5: A chance to prove to our clients that conditioning works 4 Take 5: We will sample more than 20, 000 bottles of conditioner over a two month period 4 Take 5: The promo will be supported with mirror clings and buttons 4 If you would like to participate: Contact Steve Miller, Steve Cook or Duncan Robinson Is conditioning really that important? YES! – – 14 Slows down the natural weathering and wearing down of the cortex Dry hair lacks moisture, and moisture must be restored to regain the healthy look Lack of moisture means the number of hydrogen bonds may be reduced Conditioning re-establishes the hydrogen bonds and improves the moisture content of the hair by improving the weatherproofing of the cuticle

Hair Loss 101 -5 1. Describe laser therapy 2. How does Minoxidil work? 3. List 3 reasons why a person needs to condition their hair: 4. Describe hair cloning: 15 Fun Quiz