Wooderful Floors has identified two market segments that it will target: remodelers and restorers. Remodelers are redecorating one or more rooms within a house, restorers are refinishing their wood floor to the original shine. These two segments are targeted due to their willingness to do a complete, refinishing job to their floor and to their environmental commitment.
Wooderful Floors operates within the wood floor refinishing service business. There are many different competitors in this niche that are described in detail in the Service Business Analysis, and Competition and Buying Patterns sections.
Two distinct market segments will be targeted for Wooderful Floors' marketing and sales campaign.
Home owners who are remodeling one or more rooms of a house. The remodeling is likely to include both floor work, wall coverings/movement, and possibly ceiling work. Each project is fairly extensive. Demographic data for this group includes:
Home owners refinishing the surface of their wood floor.
The two market segments were chosen as a way of identifying customers that would use wood floor refinishing services. The difference between the target segments is the extent of the project. Remodelers may be harder to reach than the restorers, since the remodelers have more demands on their time dealing with multiple decisions for the whole project.
As the demographic data in the Market Segmentation section indicates, both groups of customers have environmental tendencies. This is an important characteristic for Wooderful Floors because its water-based floor finishing treatment offers the most value to those that have environmental concerns.
Wooderful Floors operates within the wood floor refinishing service business. This industry is primarily residential base since 90% of wood floors are found in private residences. This industry is primarily made up of refinishers who can make small repairs. A smaller segment are installers who also offer refinishing. The industry was valued at $588 million in 2002 in the USA.
The industry has many competitors. Some competitors have a minimum square footage requirement, most offer all types of finishing products, but others like Wooderful Floors may only offer one type of finishing product. Some companies compete on price, some on speed, some on service, some on finished product quality. Companies within the industry indicate that 19% of their business is from word-of-mouth referrals.
A search in the Yellow Pages finds twelve companies that offer wood floor refinishing. Four offer the water based-finishing product, but Wooderful Floors is the only company that exclusively offers the water-based product. Four popular competitors include: