MarketAnalysis

MarketAnalysis - EEE 457 Alejandro Amezcua The Who Section...

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EEE 457 Alejandro Amezcua “The Who” 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 st 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 Market Research, 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. As our 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. According to 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 dollars. 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
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MarketAnalysis - EEE 457 Alejandro Amezcua The Who Section...

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