Market Analysis Summary
CCB's largest market segment will be Internet users who live in the continental U.S. and own an aquarium. Other potential customers include tropical fish retailers and walk-in customers. Fish keeping is the second most popular hobby (behind photography) in the U.S.
We estimate that by the year 2003 there will be approximately seven million Internet users who live in the continental U.S. and own an aquarium. This is a very conservative estimate. We estimate that 5% (350,000) of these users will view our site in one year's time and that 2.5% (8,750) of those potential customers will actually buy fish.
4.1 Market Segmentation
- Internet customers: the majority of our customers will be Internet users. Research estimates that this segment consists of seven million Internet users.
- Tropical fish retailers: these customers consist of six tropical fish shops within 100 miles our business. While these customers are few they will buy considerably more fish per order than Internet customers.
4.2 Market Needs
- Tropical fish enthusiasts are on the Internet looking for information on particular species and places to obtain them. Most people do not have access to retail fish shops that regularly carry a large number of different cichlid species. Some of the most beautiful and interesting cichlids cannot be found in these shops at all. CCB will provide these hard-to-find species to hobbyists.
- Retail fish shops do not have access to the species that customers may ask for and CCB provides. CCB will sell our fish to retail shops within 100 miles of the breeding center. The fish will be sold to the shops at wholesale prices.
4.3 Competition and Buying Patterns
Competition in the online fish-selling industry is based on customer satisfaction. If the ordered fish arrives as advertised and in good health the customer is satisfied. If a business can consistently provide customer satisfaction through quality product and quick service the consumer will become loyal and regard product price as secondary in importance.