Target Market and Competitive Analysis - Off 2 Gran Grans - Research Paper Example

HERE YOUR HERE HERE HERE Target Market and Competitor Analysis Off 2 Gran Grans Target Market Fortunately for Off 2 Gran Grans, segmenting the market is relatively simplistic, especially considering this industry is driven by relationship development and establishment of a solid care giving brand. Segmentation variables include a concentrated emphasis on psychographics, behavioral segmentation, and demographics where appropriate for different rural marketplaces. The largest customer segment for Off 2 Gran Grans is referred to as the Sandwich Generation, Baby-Boomers and elderly markets that have cared for their children in a family home and wish to spend their retirement years in a familiar home environment (The Mature Market 1). The majority of clients, approximately 60 percent, will consist of those with strong family values, with respect for traditionalism in politics and socialization, with a recognized propensity for brand loyalty. Under the VALS 2 psychographic model, the largest target market will be the Believers, those who are conservative and conventional individuals valuing predictable and trusted brands (Boone and Kurtz 217). The secondary target market will be characterized with each expansion opportunity by age demographics, population density in certain urban versus rural regions, and income demographics. In some key regions that have the most profitability opportunities, preliminary qualitative market research to identify key characteristics and market needs will be conducted. The four main target market characteristics: 60 years old to 100 years old – Baby Boomers and Sandwich Generation Children of elderly spouses looking for home care alternatives over nursing home facility Believers with strong brand attachment and traditionalism Paraplegic or otherwise immobilized mass markets These four aforementioned target markets are attractive to Off 2 Gran Grans due to income potential of higher resource buyers (e.g. the Believer markets). Behavioral characteristics for these markets will be considerably important for the creation of promotional materials to have impact on attitude and brand personality. The high volume of stresses and anxiety for the children of older adults can bring much more visibility to the business if these relationship development opportunities are included in targeted advertising. Because the goal of Off 2 Gran Grans is to establish a brand with dedication, credibility, trust and consistency, the reliability and conventionalism of the business can create emotional, social and psychological connections with the most opportunistic markets. There are very low franchising requirements associated with this type of business model, with initial investments between only $58,000 and $95,000 and liquid investor assets of only $39,000 (Entrepreneur.com 1). The expansion opportunities for Off 2 Gran Grans will provide additional support for achieving more market presence and producing consistent, streamlined promotional materials in widely-dispersed markets across the country. Low franchising fees also keep corporate overhead reduced in marketing, allowing more aggressive promotional advertising to be developed and distributed corporately and across the growing franchise network. Growth in the chosen four markets is generally at 70 percent since 2000. It is also estimated that over 70 million individuals will have reached retirement age by 2030, providing a stable growth opportunity. Competitive Analysis Visiting Angels, America’s Choice in Home Care, has one of the most well-known brands in the country, consisting of a network of over 170 locations across the nation. Years of promotion and appropriate targeted advertising have given this business a credible name that is easily recalled due to the catchy jingles used in advertising. Strengths of Visiting Angels: Very strong brand recall with markets maintaining a tendency of brand loyalty Strong cash flow Much sponsorship support from such brands as AARP giving more visibility. Weaknesses of Visiting Angels: Negative word-of-mouth present on numerous online sites and blogs Less corporate control over visiting nursing and assistance employees Low barriers to market entry preventing a monopolization of key urban and rural markets Maintains a very clinical brand allowing for market penetration by Off 2 Gran Grans with more social and humanistic dimensions of service and support. Direct mailing advertisements give Visiting Angels considerable market presence. Figure 1 illustrates the effective promotional success of this competitor. Figure 1: Direct Mailing Literature of Visiting Angels Source: Visiting Angels. Unfortunately, Visiting Angels is not a publicly traded company, thus their current revenue growth and capability is not publicized for analyses. However, success of this brand comes from the conservative, support-minded brand personality developed by this business. As an early market mover, this large competitor maintains much brand trust that will be more difficult for Off 2 Gran Grans to combat through brand-building strategies. The strong brand is the largest threat to this business model. However, Visiting Angels utilizes imagery of individuals in clinical fields rather than informal friendships and relationships which should give the business much competitive edge by removing the hospital-like concept from this home care business. Other competitors in this market are simply too small-scale to be considered significant profit threats. However, threats will be provided by local, government-sponsored programs that provide reduced cost care through a variety of community and federal programs. Some of these competitive threats include the Long Term Care Ombudsman and local Outreach Services. The diversity of these program-based competitors should be considered as a single competitive entity. This competition often has higher operating budgets of millions of dollars dispersed to individuals who have been immobilized or require at-home elderly patient care. Strengths: High budget and volunteerism allowing for faster market response Federal and State level operating support through grants and donations Weaknesses: Unreliable and inconsistent service delivery No ability for consumers to customize the services – limiting choice To effectively compete against competitive models that maintain high budgets and high labor opportunities, Off 2 Gran Grans must exploit the unreliable dimensions of these funded program deliverers. Focusing on the lack of customization and differentiation will be competitive strategies for improving market share and position. Fortunately, these organizations are not well positioned in key markets, giving Off 2 Gran Grans a competitive advantage. Differentiation against both identified competitors will be accomplished with the portable alert device with radio frequency signaling that is unavailable even from larger competition. The ability to contact the organization directly and schedule appointments through voice-over services will provide significant advantages in key identified markets. Market response, additionally, in this growing market with limited entry barriers will, at first, be dependent on brand recall and understanding the brand personality of this business. Works Cited Boone, Louis and David Kurtz. Contemporary Marketing. 12th ed. Thompson South-Western, 2007. Entrepreneur.com. Visiting Angels. 2012. Web. October 16, 2012 < http://www.entrepreneur.com/franchises/visitingangels/282539-0.html> The Mature Market. The Goal of Visiting Angels is to Allow Seniors to Maintain the Independence of their Daily Routines. 2004 Web. October 15, 2012 < http://visitingangels.com/pdfs/news_10.25.2004.pdf> Read More