Market Analysis Summary
Statistics show that this hobby is primarily enjoyed by women. With the surrounding population totaling 139,750, 71,607 are women. This gives our business an estimated 51% of the total potential market.
The average “scrappers” are women from the age of 20-45. Along with this group, It’s Scrappy! will target the teen and pre-teen market (ages 10-19). With special classes and special discounts on supplies that they can afford, It’s Scrappy! hopes to draw this group into scrapbookers as a hobby. It’s Scrappy! believes this will also service the community by teaching them a craft and showing them how to be proud of what they accomplish. The above-45 age group will also be targeted urging them to pull out those boxes of photos that are never looked at and display them in a manner that they can be cherished and remembered the way they deserve to be. We will use special mailings and class offers to promote our services.
4.1 Market Segmentation
The following groups are most likely to offer the best opportunity for current and new market segmentation:
- Teen and Pre-Teen (ages 10-19)
- Avid scrapbookers (20-45 yr.)
- Over 45 years of age
- Single dads
- Internet customers
The only group currently targeted are the avid scrapbookers. This group already knows the basics of the hobby and what most of the products are used for. However, they are also most likely to want to learn new techniques and to be aware of the latest trends.
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Teen & Pre-teen||10%||11,030||13,236||15,883||19,060||22,872||20.00%|
|Over Age 45||20%||22,072||25,383||29,190||33,569||38,604||15.00%|
4.2 Target Market Segment Strategy
It’s Scrappy! will focus on these significant customer groups:
- Teen and Pre-Teen customers: We plan on staying in touch with this age group on a regular basis by keeping up to date on teen activities going on in the community such as dances and sports activities so we can use this information in special mailings and classes geared for their specific age group. In addition, to help them with their small cash allowances, we will be starting a membership only “Teen Scrappers” club which will give them discounts on supplies.
- Current scrapbookers: We will target these customers by staying up to date on newest scrapbookers trends and techniques to keep these customers informed and to offer classes to demonstrate new techniques and materials.
- Ages 45 and up: This group will be targeted by mailings as well as our special “50+” age discounts for seniors. Many potential customers in this age group have their photographs and memories stored somewhere in a box, or in the “old type” albums that deteriorate photos making them yellow and unrecognizable. Our mailings will bring to their attention how they are currently storing and displaying their photographs, how those methods ruin their photographs over time and what they can do instead to preserve, showcase and enjoy them in a manner that will last a lifetime. Classes and time schedules for classes will be tailored for this group.
- The Single Dad: The single Dad is increasing, and more children are living with their father only on a regular basis. Because photos of our children are a huge part of scrapbookers, we will target these customers with the basics of acid-free albums/glues and papers instead of all the supplies used to create the “storybook” scrapbookers.
- Internet customers: It’s Scrappy! will have a website with information about our location and contact information, with a brief description of our store and the types of supplies we carry. Later we hope to expand this into an online store to make it convenient for customers outside the immediate area to purchase the same supplies we carry in the store.
4.3 Consumer Market Research
THE FOLLOWING SECTION IS INCLUDED AS STATISTICAL BACKGROUND FOR MARKET RESEARCH. THIS INFORMATION WAS NOT INCLUDED WITH THE ORIGINAL SAMPLE PLAN AND IS NOT REFERENCED ANYWHERE ELSE IN THE PLAN.
The following statistics came from the U.S. Census Bureau and American Demographics:
- Seniors are responsible for 14% of total spending power (approximately $588 billion) with average spending per household of $26,533. Average age is 75.
- Empty Nesters are responsible for 13% of total spending power (approximately $557 billion) with average spending per household of $39,340. Average age is 59.
- Old Baby Boomers are responsible for 24% of total spending power (approximately $1 trillion) with average spending per household of $46,160. Average age is 49.
- Younger Baby Boomers are responsible for 26% of total spending power (approximately $1.1 trillion) with average spending of $45,149. Average age is 40.
- Gen Xers are responsible for 18% of total spending power (approximately 736 billion) with average spending per household of $38,945. Average age is 30.
- Gen Yers are responsible for 5% total spending (approximately $187 billion) with average spending per household of $22,543. Average age is 21.