Demographic and market size
The target market is defined by the products and service feature. The company mainly targets the upwardly mobile youth between the ages of 15 to 40 years. The targeted customers are more fashion conscious with a keen eye for details. These people would not shy away from spending money to improve their image, and this includes materially by owning expensive items, accessories, and electronics to putting on the high-end clothes. Their fashion sense speaks class making them more likely to spend as much money as possible to look the part. Their image needs to include good grooming, high-end clothes,
The population is approximately 100,000 out of this, 40% are youths aged 15 to 25 years old, and the rest is 20% made up of young adults aged between 26 years to45 year. The rests are adults and children. These two segments form the largest percentage of the inhabitants in the targeted geographical location. It is also important to n9ote that over 40% are middle-income earners, while only 30% are low-income earners and the 30% are high-income earners. Pricing the products and services highly means that the products would still be affordable to the middle and high-income earners as a well as the low-income earners who have a fashion sense. Currently, there are over 2000 providers meaning that the company can gain a significant market share through products development or market penetration. The company can only gain competitiveness through innovative pricing, service bundling, research, and development or through innovation to offer superior quality products and services
Purchasing Patterns, Buying Sensitivity and Market Size Trends
The buyers are not price sensitive when it comes to paying or high-end fashion. Other buying sensitivities include brand name, prices, quality, product features, as well as customer service and return policies. These people's demand if linear depending on the season or time of the month as most would afford to pay high prices when they earn their salaries (Abrams &, Kleiner R, 2003).
The market size is significantly higher with over 80% of the market targeted. On the other hand, the company expected a further increase in the population as well as an increase in the earning capacity that translates into a lot of disposal household income. The increase in income leads to increase in household spending on luxuries and beauty accessories. The company, therefore, expected significant increases in sales growth and revenue from the targeted market segment.
Abrams R. &, Kleiner E. (2003). The Successful Business Plan: Secrets & Strategies. Successful Business Plan Secrets and Strategies. Successful Business Plan. The Planning Shop
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