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Recycled Riding Dreams

Market Analysis Summary

Over the past ten years, biking has developed an entirely new customer base among baby boomer men, ages 40 to 65.  Last year, motorcycle sales for this age group was twice that of young men, ages 18 to 25. These two groups represent 80% of motorcycle sales. In Montclair, motorcycle sales exceeded $6 million in 2000 and sales are predicted to grow by 10% this year. The city has ten motorcycle organizations and sponsors an annual cycling event as part of the city’s spring celebration.

The demographics suggest that there is a large market for used motorcycles and motorcycle parts, especially among experienced bikers.  This is particularly important because the experienced customer will seek out a shop where the owner has a reputation for quality and service in the motorcycle community.

4.1 Market Segmentation

Recycled Riding Dreams will focus on two customer groups:

  • Male baby boomers, ages 40 – 65.
  • Young men, ages 18 – 25.
Motorcycle shop business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Male Baby Boomers 6% 85,000 90,100 95,506 101,236 107,310 6.00%
Young Men 5% 70,000 73,500 77,175 81,034 85,086 5.00%
Total 5.55% 155,000 163,600 172,681 182,270 192,396 5.55%