| |
| Worksheet
3: Existing Market Demand |
| What
is the defined target market? (refer to Worksheet
2) |
|
- surrounding
homes in Wolf Chase/Lionville and Grey Fox
- transient
traffic customers
|
| How
many potential buyers are included in the target market? |
|
- approximately
15,000 over age 18
- approximately
20,000 total, including children
- traffic
patterns, with nearly 5,000 cars passing the proposed site during
normal business hours, indicates a transient customer base of
approximately 250,000
|
| What
is the best estimate of per capita consumption of fruits and vegetables
for the area? |
|
- The
average consumer is reported to consume around $160 worth of
fresh produce annually.
(Note: per capita consumtion estimates can be obtained for specific
items).
|
| Multiply
the number of potential buyers by the per capita consumption figure.
This will tell you the target market's demand for fruits and vegetables.
(Of course, competitors will be competing for the same customers.) |
| |
| 20,000 |
X |
$160 |
= |
$3,200,000 |
| population
in target market |
|
per
capita consumption |
|
total demand |
- There
is definitely substantial potential in the area
- Rich
and Debbie plan to sell other products and items
- Rich
and Debbie expect to capture a 20% market share for an estimated total
of $640,000. This will take and estimated 4,000 customers annuallly.
From traffic pattern information they are estimating approximately
4,900+ vehicles per week.
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