Rose Petal Nursery
Market Analysis Summary
Rose Petal Nursery target market strategy is based on becoming an attractive choice for homeowners and landscape contractors in the greater Eugene/Springfield region. The target markets we are going to pursue are the residential consumers looking for a wide variety of plants and trees to beautify their residences. Landscape contractors will be attracted by competitive prices and a diverse inventory. People will want to shop at our location because of the superior customer service we will provide. Rose Petal Nursery would like to see a five to ten percent increase in customers annually.
4.1 Market Segmentation
The profile of our customer consists of the following geographic and demographic information:
- Our immediate geographic market is the greater Eugene/Springfield metropolitan area with a population of 200,000 people.
- A 100 mile geographic area would want our services, as we become a well known nursery.
- The total target market is estimated at 500,000 people.
- Male and Female.
- Married and Single.
- Combined annual income in excess of $50,000.
- Age range of 25 to 80 years, with a median age of 40.
- Own their own houses or townhouses valued at over $150,000.
- Most work out of the home by choice in a variety of work environments.
We know the following regarding the profile of the typical resident of the greater Eugene/Springfield area:
- 50% have lived in the area for 10 or more years.
- 30% are between the ages of 30 and 45 years of age.
- 40% have completed some college.
- 30% are professionals and/or business owners, or managers.
- 60% have children living at home.
- 50% own their own residence.
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4.2 Target Market Segment Strategy
Our target market is based on becoming a resource for people looking to buy flowers, trees, and garden supplies. Our marketing strategy centers around superior performance in the following areas.
- Customer service
- Large selection and fair pricing
- Quality products
The target markets are separated into three segments; “Residential, Homeowners,” “Commercial Contractors,” and “Renters”. The primary marketing opportunity is selling to these accessible target market segments that focus on the beautification of peoples’ homes and places of business.
Residential, Homeowners — Rose Petal Nursery would like to be an attractive choice for homeowners purchasing plants and garden supplies. With our large and varied selection of plants, trees, and garden supplies it is our aim to give individual attention to every customer and to serve their planting needs. The residential sector has a wide range of income levels, but on average the annual household income of our customers is $50,000.
Commercial Contractors — Commercial contractors are important Rose Petal Nursery customers. A consistent inventory, and providing the large quantities contractors need, is important. With prompt and affordable service, contractors will know that they can count on us to meet their needs in a professional manner. Most of the contracting businesses we will service have an annual revenue of at least $50,000 to over $100,000.
Renters — People who do not own their own homes but need flowers and plants to beautify their living spaces make up an important segment of our target market. Many rentals and even apartment complexes have spaces that renters can use to plant gardens. Household income for this group would be in the range of $20,000 to $50,000.
4.3 Industry Analysis
The nursery business is highly competitive, and it is important to maintain a high level of customer service, offer quality products, and give the consumer a wide variety of choices when shopping for plants and trees. Our approach will be to offer a diverse selection of plants, trees, and garden supplies. Exceptional customer service will be important in meeting the needs of our target markets. Healthy plants will be a top priority, and we will display the plants artistically. Plants are a commodity that will always have a market as people consider them to be very important to have around their residences. There are four other nurseries around the greater Lane County area, and we will have to provide top quality service to be succeed.
4.3.1 Competition and Buying Patterns
Current local competition includes the following:
- Lone Pine Nursery — Locally owned, and selling a limited variety of plants, shrubs, trees, and garden products to the general public. This nursery is seasonal focusing on spring and summer flowers. They have a very pleasant facility in which to shop, but prices are a little more on average than Rose Petal’s with not a very good selection of trees and shrubs.
- McKenzie Nursery — Locally owned, offers a limited selection of plants and shrubs with the main emphasis on providing fresh produce in the summer months. Seasonal “U-pick” strawberries, blueberries, and apples are available on the property. Their prices are competitive but the location is not convenient for a lot of people, as it is 25 miles out of town.
- Green Thumb Nursery — Locally owned, offering a variety of plants and trees, as well as, a large selection of garden supplies. Green Thumb most closely matches what we have to offer when talking about plants and shrubs, but they do not have a large enough inventory to service some of the large contractors in the area.
Rose Petal Nursery will provide competitive pricing for its products, and will guarantee to match competitors’ prices, but exceptional customer service and product knowledge will make us stand out to our target markets. The size of our inventory and the variety of choices our customers will have when choosing flowers, trees, and shrubs will make Rose Petal Nursery an attractive choice. Our location is very convenient, only 5 minutes outside the city limits.