Market Analysis Summary

Market Analysis Summary

Randall Crater is faced with the exciting opportunity of being the first-mover in the East Hampton cyber-cafe market. The consistent popularity of coffee, combined with the growing interest in the Internet, has been proven to be a winning concept in other markets and will produce the same results in East Hampton.

4.1 Market Segmentation

Randall Crater’s customers can be divided into two groups. The first group is familiar with the Internet and desires a progressive and inviting atmosphere where they can get out of their offices or bedrooms and enjoy a great cup of coffee. The second group is not familiar with the Internet, yet, and is just waiting for the right opportunity to enter the online community. Randall Crater’s target market falls anywhere between the ages of 18 and 50. This extremely wide range of ages is due to the fact that both coffee and the Internet appeal to a variety of people. In addition to these two broad categories, Randall Crater’s target market can be divided into more specific market segments. The majority of these individuals are students and business people. See the Market Analysis chart and table below for more specifics.

Market Analysis (Pie)
Randall BP 3
Click to Enlarge

Market Analysis
Potential Customers Growth 1999 2000 2001 2002 2003 CAGR
University Students 4% 15,000 15,600 16,224 16,873 17,548 4.00%
Office Workers 3% 25,000 25,750 26,523 27,319 28,139 3.00%
Seniors 5% 18,500 19,425 20,396 21,416 22,487 5.00%
Teenagers 2% 12,500 12,750 13,005 13,265 13,530 2.00%
Other 0% 25,000 25,000 25,000 25,000 25,000 0.00%
Total 2.68% 96,000 98,525 101,148 103,873 106,704 2.68%