Market Analysis Summary
Malone’s Maternity has identified two distinct attractive market segments. The first segment includes expecting and just delivered mothers. The second segment encompasses family, friends, coworkers, and others purchasing gifts. Malone’s Maternity operates within the large maternity industry, which offers a wide range of products for mothers and children. Malone’s Maternity will compete within the upper echelon of this market.
4.1 Market Segmentation
Malone’s Maternity has identified two particularly attractive market segments.
Parents – This segment is primarily the expecting mother, and also includes the father.
- Ages 24-34, median age 32.
- Household income above $80,000.
- Go out to eat 2.3 times a week.
- 89% have an undergraduate degree.
- 39% have a graduate degree.
- Spend $350 a month on clothing for themselves.
Family & Friends – This segment is buying gifts for the new parents and child. They are looking for something upscale, something that would be really enjoyed.
- Ages 32-57.
- Household income greater than $83,000.
- Go out to eat 2.1 times a week.
- 83% have an undergraduate degree.
- 23% have a graduate degree.
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Family & Friends||4%||299,454||311,432||323,889||336,845||350,319||4.00%|
4.2 Target Market Segment Strategy
Malone’s Maternity has chosen parents, and family and friends, as the two most attractive segments to target. These segments are the most desirable because they have high levels of disposable income, and they spend it. The parents are used to having fashionable clothes and accessories and it is totally consistent with their purchasing patterns that this preference would remain unchanged once they get pregnant. Many expecting parents like to reward or pamper themselves with nice gifts when they’re pregnant.
Family and friends are interested in buying nice gifts for their expecting friends. This segment recognizes their friend’s appreciation for nice things and are looking for something that they know they will enjoy. The gifts are meant to be something nice, and luxurious. Much of the current maternity wear and accessories are utility based, and while they serve their purpose, they are not the most engaging gift. Family and friends are looking for something that will stand out, that the new parents will truly enjoy.
4.3 Industry Analysis
The retail maternity and child industry is made up very specific retailers that generally do not have much crossover. This means that a retailer will concentrate on either maternity or children; it is rare for a retailer to offer products for both mother and child in the same store. While this is somewhat intuitive because it allows the retailer to remain focused on one thing, Malone’s Maternity believes that there are many lost opportunities in that case since maternity and children go hand in hand. Malone’s Maternity will capitalize on these missed opportunities and allow one-stop shopping for both mother and child.
- There is a shift in the new millennium toward a younger mom, beginning at age 20.
- 82% of 20-24 year olds think motherhood is the most important job in the world compared with 72% of women age 24-34.
- Molded cup nursing bras are the fastest growing product. They tend to give mothers a fresh, young look while keeping them pretty and confident.
- There is an increase in active wear as a result of two factors:
- New research indicates it is beneficial for women to exercise during and after pregnancy.
- Women are becoming more athletic.
- Cotton/Lycra blend has become the fabric of choice for comfort.
- Cotton- for superior breathability.
- Lycra- its body sculpting properties offer youthful, natural looking support, forgiving fit and easy-care properties.
4.3.1 Competition and Buying Patterns
Malone’s Maternity faces competition from several sources.
- Mail order/Internet – Many retailers sell their products from remote locations that are accessible either by catalog or a Website. This provides the consumer with a wide selection. While this works for certain general items, it causes problems for clothing that must be tried on first. Especially for the expecting mother whose size is changing rapidly. Some mothers do not know what their size is due to fluctuation.
- Local retailers – There are six different retailers within a 20 mile radius of Malone’s Maternity. Five of them cater to the mid-price point. The sixth is a higher end store carrying some of the same merchandise for the mother Malone’s Maternity will carry. While this store has similar stock, the store itself does not feel like a boutique. They have high-end merchandise but the store experience does not translate into high-end boutique. The store is somewhat drab. All of the local competing stores sell only maternity items. They do not offer anything for children.