Business Plan Research Market Segmentation
Autor: Xia23 • April 2, 2019 • Business Plan • 347 Words (2 Pages) • 438 Views
Market segmentation
the market is segmented towards households that earns less than $30,000 a year. Especially family in need of help for a healthy eating habit or struggling to provide the right nutrition to their family.
Market size.
The Healthy food retail store will open its operation in several areas where low income families lives. We feel that this reasonable since that is our main target. We will offer quality products at reasonable price that will satisfy our customers. According to the IbisWorld, “Millennials have emerged as the most populous generation in the United States” this means that as their income rises, it will increase our service operation to service these individuals with our healthy supplements. The market concentration of this industry is relatively low, but it has a high competitive level and it is not so hard to enter. 45.2% of the market’s total revenue earns less than $30,000 a year.
Estimated annual sales
The operation is expected to start with a $90,000 in sales. Depending on its location and the amount of people living in the area. The store is expected to sell more than 40,000 private quality products. By household size, the grocery spending average will be $51 per week in one- person households to $100 per week in household of five or more. According to the Food Marketing Institute the per person spending is: “per-person weekly expenditures are only $23 in households with five or more members but $35 in one-person homes”. In order to reach our projected sale we will price our product below the national price. This way it will not only attract low income customers but also others who would lobe to save money on good quality products.
Buyer behavior
Year | Revenue $ million | Growth % |
2005 | 547,321.8 | 0.0 |
2006 | 547,216.8 | 0.0 |
2007 | 556,532.0 | 1.7 |
2008 | 569,387.5 | 2.3 |
2009 | 565,396.6 | -0.7 |
2010 | 568,949.2 | 0.6 |
2011 | 585,772.2 | 3.0 |
2012 | 592,567.0 | 1.2 |
2013 | 593,831.4 | 0.2 |
2014 | 609,738.4 | 2.7 |
2015 | 617,816.2 | 1.3 |
2016 | 620,882.9 | 0.5 |
2017 | 621,659.8 | 0.1 |
2018 | 631,921.0 | 1.7 |
Customers want high quality products at a reasonable price. They want products that are good for the body and that satisfy the nutrition that the body requires. Consumers wants to have a healthy life style where they can save money on insurance. They want to prevent getting future illness and want to live longer.
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