Marketing Sample

B.

4.0 Market Analysis Summary [back to top]

Our market includes millions of people in this country and others who deal with Tasks X, Y, and Z. We find them in home offices and small offices everywhere, plus business schools and professional offices. The trends only favor our business with growing needs for people performing these tasks.

According to research published last year by [source omitted], the market for [product area] is worth an estimated $3.8 billion at end-customer value in 19__, and is projected to grow at 20% per year, according to professional forecasts published in [xxxxxxxx] in August of 19__. Sources included Ralph Research and Infocorp. The [industry] Association estimates total retail sales of $3.075 billion in 19__.

4.1 Market Segmentation [back to top]

The target customer in this segment is adult, male or female. Our customers have a wide range of computer and business skills, but our most important target customers are relatively unsophisticated at computing. In many cases, our customers are also unsophisticated about business management and business analysis.

We find this target customer by focusing on small business and home office market segments, called SOHO by many market watchers. The SOHO market segment is one of the fastest growing in the U.S. market, being given increasing attention my many marketers. We fit perfectly into the SOHO trend.

In both the home office and the small office segment, our most important target customer is a smart, well-educated, and self reliant adult in a small business setting that requires a broad range of business tasks, including the nuts and bolts of daily business as well as strategic planning, business planning, marketing, sales, and administration. This person is a generalist, not a functional expert in the areas our products cover, such as task X, but does want a do-it-yourself product that will help him or her get the job right without having to turn to (and pay) an expert.

Business schools, including teachers and students, use our products for their teaching power. Our products are excellent for helping people learn by doing. We refer to this group as the academic market.

Consultants, accountants, experts with the good sense to value their own time and therefore use our products to maximize their productivity. These people have the knowledge to do their own, but they understand that working with our products instead can save them dozens of valuable hours. We refer to these as the expert market.

Market Analysis (Pie)

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Market Analysis

Potential Customers Growth 1998 1999 2000 2001 2002 CAGR

Home office 2% 22,000 22,440 22,889 23,347 23,814 2.00%

Small office 5% 15,000 15,750 16,538 17,365 18,233 5.00%

Professionals 8% 10,000 10,800 11,664 12,597 13,605 8.00%

Academic 0% 12,000 12,000 12,000 12,000 12,000 0.00%

Other 0% 10,000 10,000 10,000 10,000 10,000 0.00%

Total 3.00% 69,000 70,990 73,091 75,309 77,652 3.00%

4.2 Target Market Segment Strategy [back to top]

This should be a very thoughtful discussion of why we have chosen the topics we've chosen, but of course this is a sample business plan, not a real plan. It is intended to be published with Business Plan Pro. It is so hard to give a sample of a strategic

There is already a sense of segment strategy in the way we define our target markets. We are choosing to compete in areas that lend themselves to local competition, product and channel areas that match our strengths, and avoid our weaknesses.

For this reason, we operate in only two channels, the mainstream XXX and YYY . We don't feel that we can compete without higher prices and better margins than what would be acceptable in the mainstream grocery and main-market store channels. We are much better positioned in the smaller [omitted], both stores and chains, where the customer base is sensitive to politics of environment and the community, concerned about the ethics of buying, consuming, and producing, and in tune with our vision.

4.2.1 Market Needs [back to top]

Our target SBs are very dependent on reliable information technology. They use the computers for a complete range of functions beginning with the core administration information such as accounting, shipping, and inventory. They also use them for communications within the business and outside of the business, and for personal productivity. They are not, however, large enough to have dedicated computer personnel such as the MIS departments in large businesses. Ideally, they come to us for a long-term alliance, looking to us for reliable service and support to substitute for their in-house people.

These are not businesses that want to shop for rock-bottom price through chain stores or mail order. They want to have reliable providers of expertise.

Our standard SBs will be 5-20 unit installations, critically dependent on local-area networks. Back-up, training, installation, and ongoing support are very important. They require database and administrative software as the core of their systems.

4.2.2 Market Trends [back to top]

One important trend is the one toward greater international sales in personal computing products. Although the U.S. market is still the biggest, all the major manufacturers are recording more gains in the non-U.S. market than in the U.S. market. This is true for the main CPU lines, and related lines including peripherals, software, and accessories.

Another important trend is the one toward greater use of specialized and focused consultants, instead of in-house resources. Companies are looking for more out-sourcing and, in general, a preference for variable costs instead of fixed costs.

4.2.3 Market Growth [back to top]

The market for non-U.S. personal computers has been growing at approximately 22 percent per year during the last three years, according to a study by InfoQuest published in the Wall Street Journal earlier this year. This level of growth presumably applies to related products as well. It is considerably higher than growth in the U.S. market.

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