Market target paper Essay Example | Topics and Well Written Essays - 1000 words

Market target paper - Essay Example In addition, LA is also the focal point of the Los Angeles-Long Beach-Riverside, which has cumulative population of over 18 million approximately estimated in 2009 (US Census, 2010). It should be highlighted that the larger the population in a city, the great the derived needs / demand and the greater the market size. In addition, the per capita income across Los Angeles city is nearly $55,000 as estimated in 2010 (Beacon Economics, 2010). The major suppliers of watches to JBR collections will be international corporations with well known brands such as Replica, Rolex, Casio, Citizen, Armani, Adidas, Orient, Omega, Franck Muller, Rado, Raymond Weil, Seiko etc. For instance, the non-branded local and imported watches from India and China of medium to high quality will be offered at budget prices to attract customers from different social classes. The watches will be marketed to both male and female customers within the age bracket of 16 - 65 years. 2. Target Market The actual target m arket of JBR Collections is elite, upper – middle and middle – middle class groups because Los Angeles is a city of well-established rich consumers with an average annual income of $55,000 in 2009 – 2010 (Beacon Economics, 2010). Indeed, highly expensive elitist branded watches will be targeted to income groups having on average $70,000 and above per annum. The relatively high priced and affordable brands will be observed to middle – middle customers with an income range of $45,000 – 70,000 per annum. Finally, the low priced budget watches, local and imported, will be for lower – middle customers with an income of $20,000 – 30,000. 3. Product Indeed, it should be highlighted that the US economy is recovering from recession; therefore, new business opportunities have been created that could be utilized prudently to maximize financial gains. The products will be wristwatches, wall clocks and time pieces that are heavily demanded by indi viduals, households and businesses because a watch is a genuine need of a human being, thus having relatively inelastic demand. 4. Competition The value proposition of JBR will be â€Å"Premium watch collections at competitive prices†. Indeed, the showroom will be opened in well established City Shopping Center, which enjoys a strong customer base. For instance, the showroom will face intense competition with other watch showrooms located in LA in shopping malls such as Beverly Center Shopping Mall, Rodeo Drive, Two Rodeo, Century City Shopping Center and Westside Pavilion (LA Tourist Guide, 2011). Shops located in unorganized smaller markets will also give competition to JBR Collections. The only strategy to ensure business survival is to adopt penetration pricing strategies in first few months of operations because low introductory prices will help attracting many potential customers to JBR Collections. 5. Mission Statement To offer valued customers of Los Angeles City the high priced premium quality watch brands as well as budget price watches at affordable prices and to create value through meeting consumers’ watches demand and maintaining quality standards through strict control and after-sales-services. 6. Market Strategies 6.1 - Price JBR Collections has planned to use promotional pricing strategy in first three months after official inauguration of its new showroom. The reason behind it is the fact that it would like to attract maximum customers in first few mon