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:
http://www.cityofkearney.org/© BrainMass Inc. brainmass.com October 17, 2018, 10:36 am ad1c9bdddf
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.
Qantas: Strategy development and demand forecasting in volatile markets.
Forecasting: Seeking Financial Altitude in a Cloudy Sky
LEAD STORY-DATELINE: The Australian Financial Review, May 17, 2002.
Qantas has a lot riding on remaining dominant and profitable in the Australian domestic market for air travel and freight, as well as remaining profitable on its overseas routes-particularly the "Kangaroo" route to and from the United Kingdom. It has reported expansion plans involving $A13 billion that it intends to spend over a ten-year period on a range of upgrades to planes and lounge facilities, as well as on new aircraft.
The marketing environment for airlines is volatile at the best of times, and from money-man Warren Buffet's (Berkshire Hathaway) viewpoint, nobody ever made money from investing in an airline over the long term. However, Qantas CEO Geoff Dixon aims to prove this wrong. How can this be done in such a volatile market?How can Qantas continue to generate revenue and earnings equal to or greater than those in 2000, 2001, and as forecast for 2002?
The domestic market is relatively stable since the final demise of Ansett Airlines in April 2002. The new competitor, Virgin Blue, is a single-class operator and as anxious as Qantas to keep the public flying with realistically low pricing, but also wants to ensure profitability and ultimately, survival. However, Virgin Blue is not backward in making its views heard by the Australian Competition and Consumer Commission (ACCC) when it believes that its larger competitor has overstepped the (legal) mark, and possibly engaged in unfair practices (under the Trade Practices Act) that might hurt its market position and financial position.
The international market is far more volatile, particularly since the terrorist activities of September 11, 2001. Qantas and its part-owner British Airways (BA) have maintained a strong alliance in the face of turmoil in the aviation industry generally. While BA has become cash strapped, Qantas has remained cash positive and profitable. How has this been done? Qantas's strategy is to remain flexible-not only by ensuring that its fleet can operate as a single-class carrier or be quickly converted to a mix of business and economy class, but also by cutting costs. More importantly it plans to ensure that its non-airline businesses stay profitable. These businesses accounted for 30 percent of the company's profits in the six months to December 2001, and include Qantas Flight Catering Ltd, Qantas Holidays, Qantas Defence Systems, Australian Air Express, Qantas Business Travel and also includes its frequent flyer programs and co-branded credit card operations.
It can be seen from the Qantas company structure that it has remained an integrated airline, while many of its international rivals have sold off such operations when seeking capital to either build their airline business, or to stay profitable, or simply to remain airborne.
In this section, we consider questions concerning strategy development and demand forecasting in volatile marketing environments:
Provide a definition of market demand.
How are market demand, market potential and sales forecasting related to each other?
The fertility rate in Australia is declining and immigration levels are not yet set at levels that might lead to population growth (at the time of writing). Might this influence the revenue and earnings that Qantas could achieve in the future?
How might Qantas employ such a tool as the Ansoff product/market expansion grid in developing its growth strategies? (Click here for more details about the grid.)View Full Posting Details