Market Analysis Assignment
I based my Market analysis assignment based off of Star Audio.Star Audio will be my future business geared at car audio installation. My target audience will mostly be men between the ages of 18-30. Based upon research this tends to be the age group that will spend the most amount of time,and money to reach the desired optimal sound.
My customers would fall under the category of the complex buying behavior.This was chosen because my customers will be willing to invest a large amount in the equipment,but ideally they want to know that the product they are buying will be a good investment in the long run,although they are willing to spend, they won’t spend frivolously.
My target market is about 45% of adult men between the ages of 18-30 which are likely to invest in their sound systems, 22 percent of these men are african american, 18 percent are caucasian, and 5% are hispanic.
Potential customers are based on repeat customers I’ve installed as side jobs, and those customers are willing to pay up to 800, depending on quality of equipment and installation fees.
The competition right now would be the major and most recognized audio brands such as:Car toys,Geek Squad,Mobile One,etc., because they are nationally known and have built up rapport with consumers.
Their strengths would be access to more capital, being nationally known, some of them are franchised,multiple locations,and have access to high quality products. A few weaknesses that my competitors do have is : they charge higher prices for low quality products,it can take weeks to replenish out of stock products, locations don’t offer flexibilities for customers such as mobile services, and some of the locations don’t have sales associates that possess knowledge of the audio equipment to offer good recommendations.