Keith's Sporting Goods

Start your own business plan »

Sports Equipment Retail Business Plan

Market Analysis Summary

The Eugene community is very active and has a great athletic heritage. It is the location of the University of Oregon, home to many running and hiking trails, and has a youth athletic center called Kidsports. Eugene also happens to be a growing community that has always supported the small entrepreneurs. Taking these factors into consideration, KSG will focus on three main groups.

  • Young parents with children active in youth sports
  • College students
  • Active adults

These groups comprise the majority of athletes in the city, and we find them to be the ones with the disposable income to spend on athletic apparel.

4.1 Market Segmentation

  • Parents (Elementary & Middle School)
  • High School Athletes
  • College Students
  • Middle-aged Adults (35+)
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Parents 17% 3,150 3,686 4,313 5,046 5,904 17.01%
High School Athletes 25% 3,600 4,500 5,625 7,031 8,789 25.00%
College Students 7% 15,000 16,050 17,174 18,376 19,662 7.00%
Middle-aged Adults 10% 50,000 55,000 60,500 66,550 73,205 10.00%
Total 10.65% 71,750 79,236 87,612 97,003 107,560 10.65%

4.2 Target Market Segment Strategy

Because there are so many different sports and levels at which to compete, there is a broad range of markets for the company to target. At KSG, we will provide a marketplace that satisfies the needs of each group. We will stock a variety of goods for the wide variety of our customers.

We strive to build long-term, personal relationships with our customers, in order to do this, we will need to attract customers at young ages. Therefore, our primary target market will be parents with young children. By building a trust relationship, we may be able to maintain a family right up through the child's college years.

It will be important to target these groups because youth sports are growing at an incredible rate. Data has indicated that youth sports has the highest growth rate of any segment within the athletic industry. Capturing the market at a young age will lead to future sales when athletes spend more money on their athletic needs.

Young parents and high school students will not be the only groups that we will focus on because they also make up the smallest population. Focusing on college students and active adults will also be key.

4.3 Competition and Buying Patterns

To an athlete who is serious about achieving particular goals, having the correct athletic equipment is integral. Somebody who runs many miles over the course of a week needs to have shoes that not only last over time, but also protect joints from over use. It is the same for a basketball player who needs to wear light clothing that allows him/her to move freely. In either case, the athlete is looking for the best equipment and is always open to try new, innovative products that might help reach peak performance.

In the sporting goods retailing many companies compete in different ways. For example, Copeland's tries to sell products more on a cost basis using their capitol power to sell products at the lowest price. When doing this, they sacrifice the customer service and support that many athletes are looking for.

As a smaller company we intend to provide customers the support and knowledge they need to fulfill their goals.