Market Analysis Summary
Simplistic Labyrinth Design Studio has two targeted customers, manufacturers who are interested in Simplistic developing a prototype from their specifications or for Simplistic to develop the design. Simplistic will also target entrepreneurs who either have a general idea of some product that they think would sell well and they will have Simplistic design it.
These groups will be targeted primarily through activities within the outdoor industry like trade shows and advertisements in industry journals. Additionally, Simplistic will also specifically target entrepreneurs who are interested in taking a design to market by finding someone to manufacture it for them.
4.1 Market Segmentation
Simplistic Labyrinth's customers can be divided into two different groups:
- Manufacturers who are looking to sell a specific design and either do not have a design facility in-house, or are in need of the design quicker than their in-house staff can offer.
- Entrepreneurs who will license the design and then shop it around to different manufacturers.
The majority of the business will be with the first group. It is not unusual for a manufacturer to look outside of their company to have a prototype made. There are many companies that are considered manufacturers yet they do not even make any of their products, they farm that work out to subcontractors. Manufacturers will also farm out the design and prototyping work as a cost saving measure against large overhead charges.
Some of the market does consist of entrepreneurs who will license a design and then shop it around to different manufacturers, often overseas to have the product mass produced. Sometimes they will be responsible for the distribution and marketing of the product, sometimes they will sell the license to their customer.
4.2 Target Market Segment Strategy
Simplistic Labyrinth will target their different market segments with a three-pronged approach:
- Outdoor industry trade shows. These shows typically occur two times a year in different locations. These trade shows are quite extensive, they have retailers, manufacturers, designers, wholesalers as well as the media. The who's who can always be found at these trade shows. Attendance/display booths are by far the best way to network and gain business in this industry.
- Advertisements in industry journals. This is another targeted method of reaching the desired audience. In this case, only industry personnel have access to subscriptions so the audience is very targeted.
- Web page. A Web page will be used to advertise the company. Previous designs, as well as service offerings, will be listed on the page. The Web page allows companies that are geographically far away to be able to see past designs and learn more about Simplistic Labyrinth.
- Advertisements in entrepreneur magazines. These advertisements will be used to reach the market segments of entrepreneurs who are not necessarily in the outdoor industry but have an idea and would like it prototyped, or have money to buy a design created by Simplistic Labyrinth and will then take care of the manufacturing and marketing.