The Skate Zone
Market Analysis Summary
The company’s emphasis is on the sport recreation and entertainment market. Miami is the fourth largest city in America, thus providing enormous potential for growing enterprises such as inline hockey.
Within these markets, The Skate Zone focuses on the more lucrative areas of youth sports and extracurricular activities because of what the statistics show in the amount of time spent in these areas of our lives. Figure 3, in the following section, provides a breakdown of the total sales of inline skates for 1996 and 1997.
The company will also be involved in the selling of sporting goods and accessories. Figure 2, also in the following section, gives a profile of the sporting and recreation goods industry.

Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Youths | 30% | 250 | 325 | 423 | 550 | 715 | 30.04% |
Adults | 25% | 280 | 350 | 438 | 548 | 685 | 25.06% |
Families | 30% | 450 | 585 | 761 | 989 | 1,286 | 30.02% |
Other | 15% | 100 | 115 | 132 | 152 | 175 | 15.02% |
Total | 27.58% | 1,080 | 1,375 | 1,754 | 2,239 | 2,861 | 27.58% |
Service Business Analysis
Figure 1 below provides the market statistics for the sporting and recreation goods industry. This includes establishments primarily engaged in the wholesale distribution of sporting goods and accessories, billiard and pool supplies, sporting firearms and ammunition, and marine pleasure craft, equipment, and supplies.
Figure 1. Market Size Statistics
Estimated number of U.S. establishments | 9,906 |
Number of people employed in this industry | 60 |
Total annual sales in this industry | $15 million |
Average employees per establishment | 6 |
Average sales per establishment | $1.6 million |
Figure 2. Inline skate sales
Year | Skates Sold | Total Sales |
1996 | 5.4 million pairs | $374 million |
1997 | 6.4 million pairs | $418 million |
Figure 3 provides a breakdown of the top 20 inline skating areas in the United States. The number of skaters shown is in thousands. Inline hockey totals include players who also skate in other disciplines.
Figure 3. Top 20 Inline Skating Areas in the United States
Area | Rec/Fitness | All Skating | Hockey only | Total Skaters |
New York City | 1,438 | 255 | 657 | 1,503 |
Los Angeles | 1,435 | 217 | 56 | 1,491 |
Chicago | 911 | 153 | 39 | 950 |
Detroit | 827 | 189 | 48 | 875 |
Washington DC | 711 | 67 | 17 | 728 |
Philadelphia | 577 | 84 | 21 | 598 |
San Francisco | 502 | 46 | 13 | 515 |
Phoenix | 459 | 65 | 17 | 476 |
Boston | 463 | 32 | 8 | 471 |
Dallas/Fort Worth | 406 | 79 | 21 | 427 |
Atlanta | 429 | 24 | 6 | 435 |
South Florida | 369 | 37 | 10 | 379 |
Minneapolis | 360 | 25 | 7 | 367 |
Buffalo | 311 | 21 | 6 | 317 |
San Diego | 301 | 38 | 10 | 311 |
Houston | 298 | 20 | 5 | 303 |
St. Louis | 287 | 57 | 15 | 302 |
Tampa Bay Area | 264 | 32 | 8 | 272 |
Denver | 248 | 50 | 13 | 261 |
Cleveland | 247 | 12 | 3 | 250 |
Market Segmentation
The company’s target customers are as follows.
- Youths. Elementary, middle, and high school youth, ages 8 to 18 years old. Potential new customers within this industry include Miami and it’s surrounding cities.
- Adults. Adults ages 19 to 55 years old. Potential new customers within this industry include Miami and its surrounding counties.
- Families. Any individual will have the ability to purchase concession products that The Skate Zone provides.
- Others. The Skate Zone has future market plans to establish a Pro Shop for customers to purchase items.
Customer Buying Criteria
The company believes that its customers will choose The Skate Zone based on the following criteria:
- Price. The league fee is price sensitive, and players are typically expected to pay between $20 and $60 per season.
- Performance. The structure and dimensions of the hockey arena are designed specifically to give optimal player and game agility.
- Snack Bar. All major sporting events consider concessions a primary investment for high-volume revenue.
- Locker Rooms. We will provide a changing room with lockers to protect from theft.
- Accessibility. The location of The Skate Zone is on Jackson, a main thoroughfare on the Northwest side of Miami.