Market Analysis Summary
Recycled Dreams has two segmented groups that they will be targeting. The first group is the bridal couple that is responsible for the production of the wedding. This population typically has limited financial resources so they are particularly interested in ways of maximizing the money they can spend on the wedding. The other group is the parents of the bride. While they are likely to be more financially secure then the wedding couple themselves, they still typically have a limited budget. Usually the parents will solicit information from the couple and they (if they have been in a wedding party before) will relay the sentiment that buying the attendees dresses is a waste of money as the individuals really do not care if they own the dress if it is a gift, and if it they have to buy it they are bordering on resentment, tempered only by tradition that they have to purchase this ugly dress to wear once.
4.1 Market Segmentation
Recycled Dreams will be targeting low- to middle-income brides to be as well as the parents of the bride. Traditionally, it is the parents of the bride who are responsible for the costs associated with the wedding. Not everyone follows tradition however, it is increasingly the trend for the wedding couple to be responsible for the costs associated with the wedding production. For this reason both the couple, and the bride’s parents, will be targeted.
The wedding couple is likely to be interested in the rental of attendee’s bridal wear because the couple is usually young, just getting started, and not yet financially secure. A wedding in general is a large expense and the couple is typically looking for ways in which costs can be cut, yet will have no real effect on the event. In addition, the couple has other financial responsibilities such as the wedding rings and honeymoon that money is obviously tight. Even if the couple does not pay for the rentals and pass the costs onto the attendees, the attendees are likely to be in similar financial conditions as the couple and could in theory put the money saved from the rental into a nicer gift.
The other group to be targeted is the parents of the bride. This segment is likely to appreciate the option of renting bridal wear instead of purchasing it for several reasons. They are likely to recognize that the attendees of the bridal party do not typically care about the dresses that they must wear. With this in mind, they are more likely to spend the saved money from the rental on some other expense in the wedding that will be more meaningful. This is assuming that they will end up spending the money saved in some other way. They may also choose the renting option as a way to save the money. As many know, weddings can get very expensive upwards of $20,000-30,000 is not unheard of. Saving a few thousand dollars is certainly appealing.
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Parents of the wedding couple||8%||112,547||121,551||131,275||141,777||153,119||8.00%|
4.2 Target Market Segment Strategy
Recycled Dreams will be targeting its chosen segments through an advertising campaign that involves advertisements in the local newspaper. Weddings in general are very social occassions and the social scene is captured in several different sections within the newspaper. People that are having a wedding typically page through the local newspaper, looking at the other wedding announcements. The local newspaper is also a good resource for finding local services and people use the paper as a resource guide.
Recycled Dreams will also be targeting these groups through advertisements in the yellow pages. The yellow pages are a fantastic resource guide, although it is at times not all that refined in terms of searching for information.
Lastly, Recycled Dreams will be relying on their website to increase visibility regarding their services. The website provides Recycled Dreams with a very controlled way to raise awareness of Recycled Dreams’ service offerings.
4.2.1 Competition and Buying Patterns
Recycled Dreams’ main competition comes from traditional bridal stores. These stores can be broken down into various types:
- Franchise stores: these shops are national or regional franchises that use buying power of a multi-shop establishment to lower prices as well as increase selection.
- Sole proprietor shops: this style is a single outlet. It is hard to categorize much beyond this. There are some high-end independent shops as well as some budget ones. These stores are often relying on knowledge of local tastes as well as being a member of the community.
Currently Portland has no bridal wear rental facilities. There are rental facilities for men’s wear such as tuxedos, however, the rental trend has not extended to bridal wear. Entrepreneurs have been afraid to venture into women’s rentals out of fear that women are too fashion conscious to be willing to rent a dress, that would simply be a fashion faux pas.
As people’s finances become tighter and tighter, women are making decisions as to how to spend their money. As disposable income becomes more and more of a scarce resource, they are now more than ever willing to sacrifice what someone else might think of the idea of wearing a rental in return for freeing up their cash to do with it as they choose.