Market Analysis Summary
Betcher Chiropractic has identified two distinct market segments that it will target. The largest segment is individuals ages 45-65. This is the age group that begins to experience an increased incidence of health problems. The second market segment is individuals age 20-44. This group is interested in chiropractic medicine due their larger acceptance of alternative medicine.
4.1 Market Segmentation
Betcher Chiropractic has identified two distinct market segments that it will target services to.
Individuals age 45-65
This customer segment has experienced an increase in wellness issues, particularly those that are related to the vertebral dysfunction. This segment often has the disposable income to pay for visits in the event that their insurance does not cover chiropractic visits.
- Have a household income of at least $65,000
- 67% of the group have at least an undergraduate degree
- 29% of the customers have a graduate degree
- Tend to fall in the middle or slightly to the left politically
- Are open to try new treatments in search of a wellness program that will reduce their current pain levels
- 44% of the customer are vegetarian
- 67% of the customers are cognizant of their food intake and are careful to analyze their diet
Individuals age 25-44
This segment is in search of a wellness treatment/program to address their constant or intermittent pains. This segment may or may not have tried a more traditional medical treatment, with no relief. This is a more liberal group that is embracing alternative therapy in replace of more traditional western medicine regimes.
- Have an individual income of at least $35,000
- 76% of the group population have an undergraduate degree
- 24% of the group have a graduate degree or some graduate course work
- Are politically liberal
- 54% have tried another type of alternative treatments to address their wellness issues
- 49% of the group are vegetarians
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Individuals age 45 – 65||15%||345,090||396,854||456,382||524,839||603,565||15.00%|
|Individuals age 20 – 44||10%||387,090||425,799||468,379||515,217||566,739||10.00%|
4.2 Target Market Segment Strategy
Betcher Chiropractic has targeted these groups for two separate but important reasons. Each factor applies more directly to one of the two different groups.
- Health Problems: A variety of health problems associated with the body’s muscular, nervous, and skeletal systems is the impetus for the majority of customers age 45-65. It is at this mid to late portion of a person’s life that they began to develop more wellness issues. This customer segment seeks out chiropractors to aid in the management of the pain/discomfort.
- Openness to alternative medicine: For individuals age 25-44, the willingness to try alternative medicine therapy is a significant motivator for the customers to use a chiropractor’s treatment. They are open to the possibility that an alternative form of treatment can be effective in allowing them to manage their pain. This openness to alternative treatment could be a result of western medicine’s ineffectiveness, or a willness to try non-conventional means.
4.3 Service Business Analysis
Chiropractors are licensed doctors of chiropractic medicine. All states regulate the practice of chiropractic and grant licenses to chiropractors who meet educational and examination requirements. Most state boards require a four year bachelors degree in additional to chiropractic college coursework from an accredited program for becoming a Doctor of Chiropractic. There are currently 16 accredited Chiropractic Education programs.
The job market for chiropractors is growing at a faster rate than the average of all occupations. There are about 50,000 licensed chiropractors, most in a solo practice, although some practice with a group. Median annual earnings of salaried chiropractors was $67,030 in 2000. The middle 50% earned between $44,030 and $105,520 a year.
Self employed doctors typically earn more than their salaried counterparts. Typically chiropractic doctors experience relatively low earnings initially, increasing as their practice grows.
4.3.1 Competition and Buying Patterns
There are approximately 2,300 chiropractic doctors in Oregon, 1,390 in Portland alone. In Portland, 89% of the chiropractors are in a solo practice. The direct competitors to Betcher Chiropractic are other local chiropractors. Indirect competitors are other alternative treatment providers as well as more traditional physicians.
Buying patterns of customers are usually dictated by the element of networking or word of mouth. Patients are more likely to visit a doctor that is recommended to them, however not everyone can get a referral. Patients that have success with a chiropractor are often quite vocal about their results thereby increasing the word of mouth effect.