Our market includes millions of people in this country and others who deal with Tasks X, Y, and Z. We find them in home offices and small offices everywhere, plus business schools and professional offices. The trends only favor our business with growing needs for people performing these tasks.
According to research published last year by [source omitted], the market for [product area] is worth an estimated $3.8 billion at end-customer value in 19__, and is projected to grow at 20% per year, according to professional forecasts published in [xxxxxxxx] in August of 19__. Sources included Ralph Research and Infocorp. The [industry] Association estimates total retail sales of $3.075 billion in 19__.
The target customer in this segment is adult, male or female. Our customers have a wide range of computer and business skills, but our most important target customers are relatively unsophisticated at computing. In many cases, our customers are also unsophisticated about business management and business analysis.
We find this target customer by focusing on small business and home office market segments, called SOHO by many market watchers. The SOHO market segment is one of the fastest growing in the U.S. market, being given increasing attention my many marketers. We fit perfectly into the SOHO trend.
In both the home office and the small office segment, our most important target customer is a smart, well-educated, and self reliant adult in a small business setting that requires a broad range of business tasks, including the nuts and bolts of daily business as well as strategic planning, business planning, marketing, sales, and administration. This person is a generalist, not a functional expert in the areas our products cover, such as task X, but does want a do-it-yourself product that will help him or her get the job right without having to turn to (and pay) an expert.
Business schools, including teachers and students, use our products for their teaching power. Our products are excellent for helping people learn by doing. We refer to this group as the academic market.
Consultants, accountants, experts with the good sense to value their own time and therefore use our products to maximize their productivity. These people have the knowledge to do their own, but they understand that working with our products instead can save them dozens of valuable hours. We refer to these as the expert market.
This should be a very thoughtful discussion of why we have chosen the topics we've chosen, but of course this is a sample business plan, not a real plan. It is intended to be published with Business Plan Pro. It is so hard to give a sample of a strategic
There is already a sense of segment strategy in the way we define our target markets. We are choosing to compete in areas that lend themselves to local competition, product and channel areas that match our strengths, and avoid our weaknesses.
For this reason, we operate in only two channels, the mainstream XXX and YYY . We don't feel that we can compete without higher prices and better margins than what would be acceptable in the mainstream grocery and main-market store channels. We are much better positioned in the smaller [omitted], both stores and chains, where the customer base is sensitive to politics of environment and the community, concerned about the ethics of buying, consuming, and producing, and in tune with our vision.
The market for non-U.S. personal computers has been growing at approximately 22 percent per year during the last three years, according to a study by InfoQuest published in the Wall Street Journal earlier this year. This level of growth presumably applies to related products as well. It is considerably higher than growth in the U.S. market.
It is harder to gauge the more important growth rate, which would be the growth in specialty international marketing consulting. John Doe, an expert in marketing-related consulting, estimated the growth in focused marketing consulting at 40 percent per year, according to a report published in the San Jose Chronicle.
In our market analysis, we suggest growth in the number of potential customers between six and seven percent per year.
One important trend is the one toward greater international sales in personal computing products. Although the U.S. market is still the biggest, all the major manufacturers are recording more gains in the non-U.S. market than in the U.S. market. This is true for the main CPU lines, and related lines including peripherals, software, and accessories.
Another important trend is the one toward greater use of specialized and focused consultants, instead of in-house resources. Companies are looking for more out-sourcing and, in general, a preference for variable costs instead of fixed costs.
Our target SBs are very dependent on reliable information technology. They use the computers for a complete range of functions beginning with the core administration information such as accounting, shipping, and inventory. They also use them for communications within the business and outside of the business, and for personal productivity. They are not, however, large enough to have dedicated computer personnel such as the MIS departments in large businesses. Ideally, they come to us for a long-term alliance, looking to us for reliable service and support to substitute for their in-house people.
These are not businesses that want to shop for rock-bottom price through chain stores or mail order. They want to have reliable providers of expertise.
Our standard SBs will be 5-20 unit installations, critically dependent on local-area networks. Back-up, training, installation, and ongoing support are very important. They require database and administrative software as the core of their systems.
The software industry is frequently segmented according to product type. The important division between designs and systems software is only the beginning. Some analysts split software into leverages, types of designs, and so on, ad infinitum.
We prefer segmentation by economics and buying patterns. This incorporates some of the product type differences, but in a more practical sense:
Another useful segmentation divides the market by the various buyer/user types:
The single most important factor in software is the bandwagon. The rich get richer, and the poor poorer. However, there is still a lot of room for new products and new companies outside the main designs types.
Supple Software Company is staking out a new area in software. We handle specific business tasks in a way unlike what other software companies or software products do. We identify competition in terms of specific products that fill the same needs that we fill. The main competitors are:
Cheap dealio software:
Sellers of cheap software for business applications. The most successful is __________, of _______, __, which has established itself as a 'xxxxxxxx' for xxxxxxx for _____________, and _____________. There are a few others.
The main strength of the cheap software are their price. In a price-sensitive area they can be very strong.
_______'s weakness is common to all vendors of low-cost _______: the product is not very useful. Buyers get what they pay for, a cheap widget model with no documentation.
Industrial Blippo software is an immature industry characterized by high growth rates, low barriers to entry, and many small competitors. It was born in the last 10 years as part of the industrial blippo revolution, and is now beginning to settle into the process of maturation. Despite the pulverized complexion of the industry, leaders have emerged. Several have revenues in the hundreds of millions of dollars annually:
The market for software is worth an estimated $3.8 billion at end-user value in 19__, and is projected to grow at 20% percent per year, according to professional forecasts published in Widget Reseller News in August of 19__. Sources included Ralph Research and Infocorp. The Widget Manufacturers' Association (WMA) estimates total retail sales of $3.075 billion in 1987. $274 million of that was bleep software, and $2.4 billion of that was blap software.
Market leaders are Malcom Corporation, Arrog International, and Litmus Development Corporation. However, the industry is highly pulverized; its top 10 companies account for less than one third of the total market.
Distribution channels are a very serious bottleneck. The country's 7,000 retail outlets are swamped with product, completely unable to deal with the thousands of titles published. This has several repercussions:
Royalties run well below the bleep industry, as low as 1-2 percent for very high profile manufacturing, 5-10 percent for most contracts, and higher for some low volume, low profile manufacturing.
There are exceptions to the rule. Beerland International faced practically the same barriers to entry when it started in 1983, but a combination of good product and good marketing broke through those barriers. There is still enough market to provide ample opportunity to the right combination.