BikeArt

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Bicycle Art Business Plan

Market Analysis Summary

BikeArt's customers can be broadly classified from coming from two different groups, those that appreciate industrial design artwork, and those who are bicycle enthusiasts and value anything having to do with cycling.

Being based in Eugene is very fortuitous for BikeArt.  Eugene is a progressive city which tends to favor more industrial tastes compared with more conservative towns.  Eugene is also a bicycling mecca, known nationwide for its affinity for cycling.  Having such a high concentration of cycling enthusiasts provides a large population base of prospective customers.

4.1 Market Segmentation

BikeArt's market can be divided into two groups, industrial art collectors and bicycle enthusiasts.  The industrial art collectors are characterized by people who collect art with an industrial edge.  Industrial art is typically characterized through the use of either technical looking structures or using parts that existed for another function for the basis of the art work.  Industrial art is the opposite of organic art.  Industrial is typically sharp angles, straight lines.

The other market is of bicyclist enthusiasts.  Eugene is a bicyclist town, one of the hottest in the country. In a town of 130,000, there are three bicycle manufacturers, miles upon miles of bike lanes and independent bike paths.  If you drive around town you will see just about everyone on bicycles, from small children to grandmothers.  This culture will lend itself to BikeArt.  The bicycle enthusiasts are people that ride a lot and appreciate anything related to bicycles, including bicycle art pieces.

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Industrial art collectors 8% 5,644 6,096 6,584 7,111 7,680 8.00%
Bicycling enthusiasts 10% 12,545 13,800 15,180 16,698 18,368 10.00%
Total 9.39% 18,189 19,896 21,764 23,809 26,048 9.39%

4.2 Target Market Segment Strategy

BikeArt's market can be divided into two groups, industrial art collectors and bicycle enthusiasts.  The industrial art collectors are characterized by people who collect art with an industrial edge.  Industrial art is typically characterized through the use of either technical looking structures or using parts that existed for another function for the basis of the art work.  Industrial art is the opposite of organic art.  Industrial is typically sharp angles, straight lines.

The other market is of bicyclist enthusiasts.  Eugene is a bicyclist town, one of the hottest in the country. In a town of 130,000, there are three bicycle manufacturers, miles upon miles of bike lanes and independent bike paths.  If you drive around town you will see just about everyone on bicycles, from small children to grandmothers.  This culture will lend itself to BikeArt.  The bicycle enthusiasts are people that ride a lot and appreciate anything related to bicycles, including bicycle art pieces.

4.3 Industry Analysis

BikeArt has several different competitors:

  • Other retailers in the mall. For people that are shopping at BikeArt for gifts for other people, they are also likely to visit other retailers in the mall.  While the other retailers are not direct competitors, their products will act as a substitute product.
  • Art galleries. These retailers specifically sell different types of artwork.  While some might specialize or carry a theme of industrial art, none of them sell bicycle-specific art.  People that are looking for a wide range of art work are more likely to go to these retailers.
  • Bicycle retailers. Some bicycle shops do carry gifts for cycling enthusiasts.  Sometimes this gift section will be art work based on bicycles.  Some of BikeArt's artists also sell to bicycle shops so they might have identical pieces.  The bicycle retailers do not however, have the same selection as BikeArt.  As BikeArt grows, they will be able to leverage their vendors to make BikeArt the exclusive dealer for their bicycle art.