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Our biggest savings of the year
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.
| 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% |