Nature's Candy 2.1.1 Market demographics The profile for Ncs customer consists of the following geographic, demographic, and behavior factors Geographics There is no immediate geographic target for NC. the only constraint of the Internet is that the majority of sales will be from within the U.s. due to importing/exporting tariffs that do not make it cost effective for an international order to be placed The total targeted population is 336, 428 Demographics Both male and female Ages range from 25-65, with 73% of the people coming from the subgroup of 26-37. Young professionals who work 40-60 hours a week and appreciate the convenience of purchasing over the Internet. 64% of the customers have attended colle Behavior Factors Are very cognizant of the their health 39% of the customers practice some form of yog 31% of the targeted customers are vegetarians. 9% of the target market are vegans(vegetarian that abstains from all dairy products any animal by-product) 2.1.2 Market Needs Nature's Candy is providing its customers with a wide selection of private label supplements. Nc seeks to fulfill the following benefits that are important to their prized customers. Selection: Customers demand a wide selection so all of their supplementary needs can be met by one store Quality: There are hundreds of different brands selling supplements within the U. s. Having consistently high-quality products is important because supplements are not government regulated and vary widely in quality and strength Customer Service: Consumers want to patronize companies that have customer service as a priority. Nc will be using Amazon. com and L L. Bean as industry benchmarks 1.3 Market Trends The market trend for supplements has seen a recent increase in sales as well as an expansion of product offerings. This trend is fueled by several factors An increase in holistic medicine relative to the traditional western view of medicine An increase in people's desire to monitor/manage their health this can be seen by the ncrease in fitness club memberships over the last five years
2.1.1 Market Demographics The profile for NC's customer consists of the following geographic, demographic, and behavior factors: Geographics • There is no immediate geographic target for NC. The only constraint of the Internet is that the majority of sales will be from within the U.S. due to importing/exporting tariffs that do not make it cost effective for an international order to be placed. • The total targeted population is 336,428. Demographics • Both male and female. • Ages range from 25-65, with 73% of the people coming from the subgroup of 26-37. • Young professionals who work 40-60 hours a week and appreciate the convenience of purchasing over the Internet. • 64% of the customers have attended college. Behavior Factors • Are very cognizant of the their health. • 39% of the customers practice some form of yoga. • 31% of the targeted customers are vegetarians. • 9% of the target market are vegans (vegetarian that abstains from all dairy products or any animal by-product). 2.1.2 Market Needs Nature's Candy is providing its customers with a wide selection of private label supplements. NC seeks to fulfill the following benefits that are important to their prized customers. • Selection: Customers demand a wide selection so all of their supplementary needs can be met by one store. • Quality: There are hundreds of different brands selling supplements within the U.S. Having consistently high-quality products is important because supplements are not government regulated and vary widely in quality and strength. • Customer Service: Consumers want to patronize companies that have customer service as a priority. NC will be using Amazon.com and L.L. Bean as industry benchmarks. 2.1.3 Market Trends The market trend for supplements has seen a recent increase in sales as well as an expansion of product offerings. This trend is fueled by several factors: • An increase in holistic medicine relative to the traditional western view of medicine. • An increase in people's desire to monitor/manage their health. This can be seen by the increase in fitness club memberships over the last five years. Nature's Candy Page 3
Nature's Candy Market Forecast 160,000 140.000 100000 Baby boomers Other 40,000 20,000 2003 2004 2005 2006 2007 2.1.4 Market Growth The market for vitamins and nutritional supplements has grown to over $6.5 billion annually Herbal sales alone are growing by 20% per year. This market is lead by the aging Baby Boomers who are concerned with their mortality. Also, there has been a paradigm shift of perception of nutritional supplements. Homeopathic and naturopathic products are seen as normal, they are no longer outliers in society. Additionally, positive medical results from major studies have further egitimized these products The nutritional supplement market is a semi-mature market characterized by high-growth rates medium barriers to entry and a few large competitors. Despite the competition in the market many companies have reported annual growth levels of 30%. the market leaders are as follows GeneralNutritionalCompaniesInc.(gnc)(website:www.gnc,com):This company is a nationwide specialty retailer of vitamins, minerals, and sports nutrition supplements. With over 3, 000 stores, GNC generated $1.19 billion in 2000 NaturesSunshineProducts,Inc(website:www.naturessunshine,com):Nature's manufactures and markets a variety of health supplements. This multi-level marketing company had 2000 revenues of approximately $370 million Rexall Sundown, Inc( website: www-rexallsundown, com): Rexall develops, manufactures, markets and sells vitamins, nutritional supplements, and consumer health products through retailers, independent distributors, and mail order Rexall had 2000 venues of approximately $370 million. International Vitamin Company, Inc: IVC manufactures, packages, sells, and distributes private label vitamins and nutritional supplements to drug stores, supermarkets and health food stores. IVc had revenues of $107 million in 2000 The primary channels of distribution in this market are Mass market retailers(Fred Meyer, Rite Aide) Direct sales organizations. Health food stores(GNc) Mail order catalogs and the Internet
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2003 2004 2005 2006 2007 Baby boomers Other Market Forecast 2.1.4 Market Growth The market for vitamins and nutritional supplements has grown to over $6.5 billion annually. Herbal sales alone are growing by 20% per year. This market is lead by the aging Baby Boomers who are concerned with their mortality. Also, there has been a paradigm shift of perception of nutritional supplements. Homeopathic and naturopathic products are seen as normal, they are no longer outliers in society. Additionally, positive medical results from major studies have further legitimized these products. The nutritional supplement market is a semi-mature market characterized by high-growth rates, medium barriers to entry, and a few large competitors. Despite the competition in the market, many companies have reported annual growth levels of 30%. The market leaders are as follows: • General Nutritional Companies, Inc. (GNC) (website: www.gnc.com): This company is a nationwide specialty retailer of vitamins, minerals, and sports nutrition supplements. With over 3,000 stores, GNC generated $1.19 billion in 2000. • Nature's Sunshine Products, Inc. (website: www.naturessunshine.com) : Nature's manufactures and markets a variety of health supplements. This multi-level marketing company had 2000 revenues of approximately $370 million. • Rexall Sundown, Inc. (website: www.rexallsundown.com): Rexall develops, manufactures, markets and sells vitamins, nutritional supplements, and consumer health products through retailers, independent distributors, and mail order. Rexall had 2000 revenues of approximately $370 million. • International Vitamin Company, Inc.: IVC manufactures, packages, sells, and distributes private label vitamins and nutritional supplements to drug stores, supermarkets and health food stores. IVC had revenues of $107 million in 2000. The primary channels of distribution in this market are: • Mass market retailers (Fred Meyer, Rite Aide). • Direct sales organizations. • Health food stores (GNC). • Mail order catalogs and the Internet. Nature's Candy Page 4