I have chosen to create a sporting goods retail store to be located in Kearney city, NE (home to University of Nebraska at Kearney) so that we can serve central and western Nebraska State. This store will be similar in scope to Scheels All Sports Store which located in Omaha, NE (180 miles from Kearney). Our products will include sporting equipment, apparel, hunting and fishing equipment, and vitamins and proteins. This is a viable business because there is not a major sporting goods store in central or western Nebraska. Our major competition in Kearney will include sport stores such as Cabelas, Sports Village, and Sporting Edge. However, these stores do not include all sports gear. We will offer everything under one roof.
1. An assessment of market demand, including an analysis of the target market and market potential for the product/service. Supporting primary and/or secondary data is expected.
2. A complete marketing strategy for reaching the target market.
Information about Kearney city where the store will be located:
Assessment of Market Demand:
There will be two segments that will be targeted by the sporting goods retail store. The first segment will be the youth segment which will be of individuals aged 30 years and below. The second segment will be the elderly segment which will consist of individuals aged more than 30 years. The size of the youth segment will be 7,500 persons. This figure is based on the secondary data that the median resident age in Kearney city is 29.0 years in 2009. Also the population of Kearney city is 30,787. This is the segment that is interested in sports. These are likely to purchase sporting equipment and sporting apparel. The estimated median household income in 2009 is $44,062. It is expected that of the youth segment each individual is likely to spend at an average $500 per annum. This means that the value of the youth segment is $3,750,000.
Next we consider the elderly segment. As the elderly have more leisure time the size of the segment is estimated to be 10,000 persons. The main purchases of the elderly segment will be hunting and fishing equipment, vitamins and proteins, and sport apparel. As the income of the elderly segment is higher and vitamins and proteins are regular consumption items, the annual spending per person in the elderly segment is estimated to be close to $800 per year. The value of the target market in the elderly segment is estimated to be $8,000,000.
The total market capacity of the Kearney city market for the sports store is $11,750,000. This is the maximum total sales revenue of sports stores in the market during a period of one year. Since the sporting goods retail store is the only store of its kind in the area, this figure represents the total sales revenues of the store during one year.
One secondary data is that a little league team from Kearney ...
The answer to this problem explains a Marketing Strategy. The references related to the answer are also included.