Market Analysis Summary
Abbey Electronic Services' focus is on meeting the demand of the local resident customer base, as well as service agreements with Harry's Electronics and Olson's Appliance Superstore. Abbey Electronic Services' relationships with these two large tenants of the Cherry Grove Shopping Center will serve as a solid foundation for the growth of the business. The company estimates that about 60% of revenues will come from the these two business customers. It is estimated that these contracts will grow yearly at 15%. The remaining 40% will come from local walk-in traffic from local residents. We estimate that this segment of potential customers will grow by 15% annually. Over time, serving the local customer base will become the core of the business.
4.1 Market Segmentation
The table and chart below further estimates the total market potential of services rendered by Abbey Electronic Services in the metropolitan area.
4.2 Target Market Segment Strategy
The market of electronic repair services is very competitive. The majority of the successful electronic repair shops have strong local customer support from years of faithful service. The niche where Abbey Electronic Services positions itself represents one convenient location for business clients and local residents. The Cherry Grove area of Montclair has been booming with middle- and upper-class residential housing. Currently, there is no established electronic repair service in the area. Abbey Electronic Services success in obtaining service contracts from the two major electronic product tenants of the Cherry Grove Shopping Center immediately establishes the business as the local focus for electronic repairs.