Essay about Market Analysis
Pet World is a medium sized pet store in a busy suburban retail area. Located in an upper-middle class suburb of Paddington, Brisbane; the store location has excellent exposure to pedestrian traffic and the area has plenty of parking available for customers. The business has been operating for 5 years in the same location and has established a good reputation with the local and surrounding suburbs. There are no other retail pet stores in the retail strip; however, there are 3 other pet stores within a 10 km radius, two of which have been operating for longer than 5 years.
Pet World specialises in providing popular breeds of dogs and cats, from purebred to designer breeds. The target market is …show more content…
3. Broaden its product mix
The store is a medium size retail space; the layout has opportunity for improvement to provide additional space for the addition of a new product or service. Research has been completed and two viable opportunities have been identified that could use the space and realise the marketing objectives:
a) Introduce a new market segment of pets i.e. birds, fish or reptiles
b) Offer a Clipping / Grooming service to existing customers
Based on the current market Pet World is operating in, the clipping and grooming service provides an immediate opportunity to offer a new product in an existing market. Pet World will penetrate a new market segment in an accessible market by marketing to their existing base of loyalty card customers. The clipping and grooming segment provides a broad range of products and services for customers, a recent study by the Animal Health Alliance estimated pet clipping a grooming to be worth $305 million per year. The average spend per household in Australia is $100 per year. Similar to consumable products; this market segment offers sustainability through frequent repeat business.
Pet World has a loyalty card customer base of 4000 customers; they forecast that 10% of this customer base will access the new service per year. Revenue expectations are that 80% ($40,000) of the revenue increase will be generated from the existing customer base with