On The Water
Market Analysis Summary
On The Water focuses on local and tourist active restaurant seekers, with special focus on young adults with a $20-30,000/year income and a desire for good food and a fascinating atmosphere as our target market.
4.1 Market Segmentation
Our target market segmentation is divided between young restaurant seekers with money to spend, as well as other adults and tourists who are known to frequent Sunset Blvd. for recreational enjoyment. Defining the high-end crowd is difficult because most of Sunset Strip goers are such.
We generally know the characteristics of our clientele with our available demographics of the area, our personal crowd would consist of young adults (ages 20-29) and adults (ages 30-50), both male and female, usually at least one year of college if not already fully graduated. Our geographics include people from the local Hollywood area, party animals from other neighboring cities, and tourists from other states and countries. The psychographics of our clientele include “yuppies, big spenders, club hoppers, baby boomers, Sunset rats, etc…” The buying patterns of our clientele will be people who like to spend money on pampering themselves, on quality food, feeling special, projecting an image of wealth, trying new things, and thrill seeking.
| Market Analysis | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Potential Customers | Growth | CAGR | |||||
| Young adults | 8% | 638,949 | 686,870 | 738,385 | 793,764 | 853,296 | 7.50% |
| Adults | 5% | 1,152,870 | 1,210,514 | 1,271,040 | 1,334,592 | 1,401,322 | 5.00% |
| Total | 5.91% | 1,791,819 | 1,897,384 | 2,009,425 | 2,128,356 | 2,254,618 | 5.91% |
4.2 Target Market Segment Strategy
On The Water will focus on attracting young adults and adults ages 20-55, with an annual income of at least $15,000 to $60,000. We will concentrate on the high-end spenders who enjoy new restaurants, eating out, a fun atmosphere, and high-end food and service. We want the yuppies, baby boomers, high-end clubbers, tourists with money, wealthy image seekers and compulsive spenders. We focus on these specific groups because these are the types of people who frequent other clubs and restaurants like ours on Sunset Blvd. They are the ones that are willing to spend their money on good dining and service at high prices.
We generally know the characteristics of our clientele with our available demographics of the area, our personal crowd would consist of young adults and adults ages 20-55, both male and female, usually at least one year of college if not already fully graduated. Our geographics include people from the local Hollywood area, party animals from other neighboring cities, and tourists from other states and countries. The psychographics of our clientele include “yuppies, big spenders, club hoppers, baby boomers, Sunset rats, etc…” The buying patterns of our clientele will be people who like to spend money on pampering themselves, on quality food, feeling special, projecting an image of wealth, trying new things, and thrill seeking.
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