Market Analysis Summary
The Safe Keeping Co. target market strategy is based on becoming an attractive choice for businesses and private homeowners in the greater Eugene, Springfield area. The target markets that we are going to pursue include small to large businesses wanting documentation of their belongings.
We feel there is a great need for documenting items that have value to these businesses, making it easier to deal with insurance companies in case of a burglary. Private homeowners will be targeted with the same services. Safe Keeping would like to realize a 5% increase of potential customers on a yearly basis.
4.1 Market Segmentation
The profile of our customer consists of the following geographic and demographic information.
- Our immediate geographic market is the greater Eugene, Springfield metropolitan area with a population of 200,000 people.
- A 100 mile geographic area would want our services as we expand into business.
- The total target area population is estimated at 500,000 people.
- Male and Female.
- Married and Single.
- Combined annual incomes in excess of $50,000.
- Age range of 25 to 80 years, with a median age of 40.
- Own their own homes, townhouses and/or condominiums valued at over $150,000.
- Most work out of the home by choice in a professional/business setting.
- Belong to one or more business, social and/or athletic organizations, which may include: Downtown Athletic Club, Eugene Country Club, American Woman’s Association, and the Eugene Chamber of Commerce.
We know the following regarding the profile of the typical resident of the greater Eugene, Springfield area:
- 50% have lived in the area for 10 or more years.
- 30% are between the ages of 30 and 45 years of age.
- 40% have completed some college.
- 28% are professionals and/or business owners, or managers.
- 55% are married.
- 60% have children living at home.
- 52% own their own residence.
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4.2 Target Market Segment Strategy
Our target market is based on becoming a resource of choice for people wanting to document their valuables as well as become educated on protecting their property. Our marketing strategy is based on superior performance in the following areas:
- Customer service
- Confidential record keeping
- Expert consultation
The target markets are separated into two segments; “Business sector,” and the “Private sector.” The primary marketing opportunity is selling to these accessible target market segments that focuses on the security of homes and businesses.
Business Sector – A lot of small, to large business owners need documentation of inventories as well as security tips and information. For insurance purposes it is important to keep up to date records in case of theft or damage to the property.
The types of business customers we will be targeting are small, medium, and large, with no particular industry in mind. As we begin operating our business we will concentrate on businesses that typically have up to a 100 employees. Again we will not concentrate on any particular industry but will look for businesses that meet our criteria.
The business needs to have valued inventory or valuables that they want documented for insurance purposes if we are to offer our video services. Our business customers can take advantage of our consultation to make their property more secure. Most of the businesses we will service have a revenue of at least $50,000 a year, with many exceeding that amount.
Private Sector – Many private homeowners are concerned with adequate property protection. Consultation with the homeowner about properly securing their property is a very viable benefit.
4.3 Service Business Analysis
The security industry continues to be very competitive. Traditionally the security business is about monitoring properties and sending police out if there is a problem. Having a security guard patrol properties is another service typically offered.
Safe Keeping is taking a different approach to business and home security. Expert consultation will be offered on how to properly secure properties with a complete walk through of each property. We will make a video tape record of all valuables that will be kept on file in case of theft or damage to the property. With the steady concern over the growth of crime in our society, and the need to have good records in case of an incident, our service is a truly needed one. All records will be kept strictly confidential.
4.3.1 Competition and Buying Patterns
The security industry typically offers business and home protection through alarm systems and on site patrolling. There are several security businesses in our geographic area. Safe Keeping is taking a different approach to the security business by offering services that are on the industry’s cutting edge.
The consumer who does not feel the need to have a full time security company watching their properties but would like to do something themselves to protect their property will find what we have to offer very attractive.