Section III: Market Research and Analysis
A. Definition of Relevant market and Customer Overview
“The Who” plans to create business concepts that appeals to mother’s- to-be in the
US, between ages 25-45 and who are in their 1
to final trimesters of pregnancy. They will be
targeted based on specific parameters, which include: age, income, educational background,
ethnicity, stage in pregnancy/motherhood, and marital status.
According to the
the average age of women giving birth has increased significantly. As a pregnancy
gifting service, we aim to make this service available to not only to pregnant women
themselves but to husbands and other close family members and friends. Essentially, our
company aims to primarily target the mom market in the US with disposable income.
business expands, “The Who” seeks to expand to target fathers.
B. Market Size and Trends
In order to understand the mom market, one must first understand the overall
population dynamics in the US. Currently the US population exceeds 300 million people,
with 49.3% male and 50.7% female. Among women, 51.1 million fall into the prime birthing
years. From these 51.1 million women in their birthing years, we estimate our primary
market size to be 4.5 million women per year, which is based on the average number of
births in the US.
Birth rates among women in their prime to late 40s are increasing; as a
result we expect an increase in market size (US Mom Report).
Since women are giving birth
late into their careers, this service will help them to save time needed in preparing for a child.
In addition, our market includes educated women who want the best during their pregnancy.
Therefore, we project a market expansion of .5 million customer over the next few years.
IBIS world, Women's Clothing Stores in the US will experience a
growth rate of 3.4% between 2011-2016.
Based on 4.5 million potential customers and a
price of $100 for 5 years, the estimated market size is 61,337.82 units and $19.63 million
The growth within the market
C. Buyer Behavior
Majority of our customers will be pregnant women. Females are responsible for the
majority of shopping in the United States and they also account for the largest market of the
Mail Order industry. As more women enter the workforce, they have less time to visit stores
to shop. Therefore, as the working female population increases, more households will engage
in convenient shopping methods, including mail order. (IBIS World 45411B industry
performance). Although during the pregnancy many women receive assistance from initial
family or their spouse. Besides the pregnant women herself, mothers of pregnant women and
the breadwinner of the family would be the decision maker.
Unfortunately 69% of women don’t get prenatal care during their trimester (U.S