Market Analysis Summary
The market area for Quaestor Services will be focused on three counties, Pleasant, Niceburg and Contented, in Plainstate. These counties are experiencing a combined average growth in population over the 2000 census of 6.45%.
As of 2004, the Whelnoan Insurance Company is the second largest insurance company in Plainstate with 23% of the market share. The overall market for Quaestor is wide open. This business plan has identified over 1.3 million individuals and business as potential clients in the market area.
4.1 Market Segmentation
Quaestor Services has targeted the following market segments:
|YR 2004 Estimate-Total Population||4,814,628||545,991||560,265||284,032||1,390,288||28.9%|
|YR 2004 Estimate-15 to 24 years old||528,756||55,264||60,509||19,652||135,425||25.6%|
|YR 2004 Estimate-24 to 74 years old||2,224,217||255,517||265,626||136,052||657,195||29.5%|
|Available Market Share 77%||2,752,973||310,781||326,135||155,704||792,620||28.8%|
|YR 2004 Estimate-Total Housing Units||2,244,113||237,308||279,912||97,555||614,774||27.4%|
|Available market Share 77%||1,727,967||182,727||215,532||75,117||473,376||27.4%|
|Housing Units-Owner Occupied||1,162,922||124,254||113,154||66,028||303,436||26.1%|
|YR 2004 Estimate-Small Bus > 20 Emp||122,452||–||–||–||94,288||77.0%|
The available market share of 77% represents the market that Whelnoan Insurance has not captured at this time. Although,the entire state is an available marketing area, the tri-county area will be the focus marketing area at this time. The total population of the tri-county area available for marketing is 29% of the total available population in Plainstate.
The first and most important market segment is population broken down by age groups. This can be used for determining the market for personal lines of insurance such as auto and various recreational vehicles, life and life planning products.
Note that the population of 15 to 24 year olds has been separated from the available population as a market segment in itself for determining the possibility of high risk auto insurance policies.
The second market segment is housing units broken down by owner occupied and renters. This can be used for determining the market for personal lines of insurance such as home, townhouses, condominium, renters and mortgage protection.
The third market segment is small businesses with less than 20 employees. This can be used for determining the market for accounting and bookkeeping services and commercial lines of insurance including property and casualty, retirement and workers compensation.
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Focus Population (Ages 15 to 24 years old)||6%||135,425||144,160||153,458||163,356||173,892||6.45%|
|Focus Population (Ages 25 to 74 years old)||6%||657,195||699,584||744,707||792,741||843,873||6.45%|
|Small Business (Less than 20 employees)||6%||94,288||99,757||105,543||111,664||118,141||5.80%|
|Focus Housing Units (Owned)||12%||303,436||339,059||378,865||423,344||473,045||11.74%|
|Focus Housing Units (Rented)||12%||30,752||34,362||38,396||42,904||47,941||11.74%|