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Market Analysis Summary

The market has been expanding exponentially with the advances of technology in the teaching sectors and the acceptance of technology as a teaching aid. The critical component to our entrance into the market will be approval and support from the school communities – including teachers, the PTA, and special education programs.

Market Segmentation

Our primary target markets include these four areas:

  1. The kids themselves. We include ages 5-9 and ages 10-14 in our market statistics because these are the breakdowns available at, and we include only 10% of the total in each category.
  2. Parents. We include 10% of the parents, assuming that leads to an average combined income above $100,000. Most of these people live in suburban areas, but the urban upper class is also a major component. [Editor note: details for this sample plan are not necessarily correct.]
  3. Educational institutions for the children of the upper class. This includes day care and private schools. Penetrating this market is excellent because it generates leads to our other targets. We include 107,000 schools in the U.S. in our table.
  4. Self-teaching families. There is an excellent group of established customers who teach their children from home. The site will benefit greatly from the time available from this target group.
Childrens website business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
U.S. Kids 5-9 2% 1,994,000 2,033,880 2,074,558 2,116,049 2,158,370 2.00%
U.S. Kids 1-14 2% 1,961,200 2,000,424 2,040,432 2,081,241 2,122,866 2.00%
U.S.Parents 2% 12,000,000 12,240,000 12,484,800 12,734,496 12,989,186 2.00%
U.S.Schools 1% 107,000 108,070 109,151 110,243 111,345 1.00%
Home School Families 40% 5,000 7,000 9,800 13,720 19,208 40.00%
Non-U.S.Parents 4% 24,000,000 24,960,000 25,958,400 26,996,736 28,076,605 4.00%
Non-U.S.Schools 0% 225,000 225,000 225,000 225,000 225,000 0.00%
Total 3.20% 40,292,200 41,574,374 42,902,141 44,277,485 45,702,580 3.20%

Target Market Segment Strategy

While we have plans to expand into international territory, our initial launch will target our most important market – the American upper class. We know that most of our clients drive BMW’s and have very good taste – they spend money on their children because they can appreciate the technology that we have created. They also generally have high bandwidth connections, and are impressed by first-class design.

The market for intelligent technological teaching devices is growing exponentially. The key factors driving this growth are the increase in salaries in the technology sectors, the double-income household and the loss of leisure time. Hardworking parents are dedicated to giving their children every educational opportunity possible. Our target market’s behavioral patterns are changing dramatically as well – research used to happen in many places; now increasingly it happens on the Internet.

Market Growth

The macro-environment is the real reason for the urgency of the e-commerce project. All trends in our market indicate that strong a Web presence will not be a frivolous extra for the company, but rather, an absolute necessity. As mentioned before, the double-income family in the technological sector is doing their research on the Internet. In order to survive, must be present as a destination for these search results.

Market Needs

The website will have to reflect its product line – simultaneously fun, easy to use and informative. In order to gain recognition for our site efforts, we are going to have to put together a site that is worthy of attention. The design work should promote the feeling of superior quality. The attitude will match the company’s inherent value drive – parents and educators will feel guilty not buying into these products.

Industry Analysis

The website industry is exploding. Growth is absurd, amazing. We don’t have business reasons to detail this situation in this plan, our readers are aware of it.

Competition and Buying Patterns

This is sample text describing factors in competition for website use by bright children ages 8-14, for sales to their parents and schools. It details information available about the importance of factors such as pricing, shipment, quality, presentation, etc.

Main Competitors

Our competition is the market leader – and their success is a symbol of our potential market. We were pleased to see their Web division spin-off to its own company that went public with a tremendous initial offering. The market is too large for them to cover entirely, and as a second-best in dollar market share, with better reviews from the critical industry leaders, stands in a position to expand our business significantly.

Industry Participants

This is sample text describing the different companies addressing the same target market. The real plan included details on which companies sell products (toys, books, or games) into this market. It includes who owns them, how much market share they get (according to available information sources), and what we know about their assorted business models.

Distribution Patterns

This is sample text describing the different websites addressing the same target market. The real plan included details identifying these websites, who owns them, how much traffic they get (according to available information sources), and their assorted business models.