The big opportunity
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The Big Opportunity. By: Alex Enriquez, Iviee Li, Corey Pierce. Tim Barry Frustration turns into millions Shipped 10,000 seat belt Extenders for $60-$70 a pop ScaleIt.com and SuperSize World.com Expected to hit $1 mil in sales. Introduction.

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The Big Opportunity

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The big opportunity

The Big Opportunity

By: Alex Enriquez, Iviee Li, Corey Pierce


Introduction

  • Tim Barry

  • Frustration turns into millions

  • Shipped 10,000 seat belt

    Extenders for $60-$70 a pop

  • ScaleIt.com and SuperSize

    World.com

  • Expected to hit $1 mil in

    sales

Introduction


Large market segment

  • Americans are fat, and they’re getting fatter

  • Not just low Income. Urbanites are the ones rising most rapidly.

  • “Plus – size” population are the new baby boomers

  • American businesses are rethinking their strategies

Large Market Segment


Accelerating trend

  • Between 1962 and 1980 – stable growth in average body size: 1/3 pound a year

  • In 1980, average adult male – 174 pounds, average adult female – 145 pounds

  • By 2000, 30% of US population is obese (BMI 30 or above) and 34% is overweight (BMI 25 – 29.9)*

Accelerating Trend


Accelerating trend1

  • 64% of total population is in the market for plus size merchandise

  • Fatty food, bigger

    portions, less cooking

    at home are factors

    that contribute to the

    “growing” trend

Accelerating Trend


Beyond weight loss

  • Most department stores and top retailers paid little attention to larger customers

  • Lane Bryant became the industry leader in plus size women’s clothing in 2000

  • 690 stores and $930 million in sales, acquired by Charming Shoppes in 2001

  • Charming Shoppes – 3rd largest specialty retailer

  • Women wearing size 14 and larger make up more than 50% of the overall market

Beyond Weight Loss


Loyal customers

  • Historically oversized markets were very underserved.

    • Shopping trips use to have the prospects of a needle in a haystack.

    • Women often would concede to buying oversized men's clothing.

  • Tedious past experiences have left consumers jaded.

    • Consumers not as price sensitive.

    • Something that “fits” feels like a luxury.

Loyal Customers


Loyal customers1

  • “This business was so underserved for so long”, “A plus-size woman sticks with a brand she likes, and she doesn’t mind paying full price for it”

    • Barry Zeinman. General Manager Specialty Retail, Elisabeth Stores, Liz Claiborne.

Loyal Customers


Product line extension

  • Companies can now find profitable markets by reengineering existing products for large consumers.

    • Smart existing companies need to asses market periodically (market research and assessment).

      • Ex. Furniture, surgical equipment

    • Insightful and fast entrepreneurs can catch big companies snoozing.

      • Ex. Toilet seats

Product Line Extension


Difficulty in marketing to obese

  • Products or Services must be designed for larger consumers but not seem to be only for them.

    • Products that reflect too much reality- that it reminds the person that they are overweight- Often Bomb.

    • Subtlety is Key.

Difficulty in Marketing to Obese


References

  • Videos: http://www.youtube.com/watch?v=1YntprQzdTo

    http://youtube.com/watch?v=nPZcCvtB9Wg&feature=related

  • Cartoon: http://fitnessfanatic.org/blog/weight-loss/nutrition-notes-on-weight-loss-supplements/

  • Healthy weight, overweight, and obesity among US adults: http://www.cdc.gov/nchs/data/nhanes/databriefs/adultweight.pdf

  • Crawford, Krysten (June 5, 2006). The big opportunity. Business 2.0 Magazine, Retrieved Jan 30, 2009, from http://money.cnn.com/magazines/business2/business2_archive/2006/06/01/8378500/index.htm

References


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