Market Analysis
Market Analysis
Supercar Club will offer supercars to customers in Philadelphia. The US rental and leasing industry has grown for the past years due to demand for vehicles. The number of companies offering car rental services to customers in Philadelphia is high due to customer demand. The car rental market in Philadelphia will grow as the number of customers using the car rental services increases. Many people have realized the importance of renting cars, and this will lead to increase in demand for rental services in the future. Most people prefer to rent cars from car rental companies because of convenience and comfortable. They are able to comfortably move from one place to another in a short duration. There are supercar clubs outside Philadelphia like Ecurie25.
However, there are no super car clubs in Philadelphia, and this provides an opportunity for supercar club. Supercar club will not face competition from other companies, and this will increase sales and profit. The company will also grow as there is a possibility for growth in the center city, Philadelphia as there are no supercar clubs. Most of the companies in Philadelphia offer regular car rental services. Supercar Club will offer super cars to car enthusiastic in Philadelphia. Car enthusiasts will get an opportunity to rent and enjoy supercars from supercar club for several days. The company will target businessmen and people interested in club membership. The yearly membership is high, and so customers should have a high income. The customers will be mainly male car enthusiasts (United States Census Bureau, 2012).
Philadelphia population in 2011 was 1,536,471. The population increased considerably from 2010 as the population in 2010 was 1,526,006. Females and males accounted for 52.8% and 48.2% of the population. People aged below 5 years formed 6.8% of the population. In addition to that people aged 18 years and 65 years and above accounted for 22.5% and 12.1% of the population. Hence, people aged between 18 years and 64 years firmed the largest proportion of the population. Most people in Philadelphia have a high school, college, elementary or university education. Majority of people have managed to get an education. High school graduates accounted for 80% of the population in 2011. However, the number of people having a bachelors degree or higher was low compared to those with graduate degrees. Only 22.6% of the population had a bachelor’s degree and above compared to 26.7% of the population in Pennsylvania. The median household income for people living in Philadelphia was high. The median household income for people living in Philadelphia was $36957.
Moreover, the median household income for people living in Pennsylvania was $51,651. Philadelphia County was ranked as one of the counties with the lowest household income in 2007. The household income for Philadelphia in 2007 was $35,365. The income earning for men and women in Pennsylvania in 2007 was 44,755 and 33,438 respectively. Thus, men in Pennsylvania earned more than women. The income earning in United States differed from one person to another based on education attainment. Men with graduate and professional degrees earned more than men with a bachelor’s degree. Men with graduate and professional degrees earned $77,219 in 2007 and those with bachelors’ degree earned $57,397. In addition, women with graduate degree earned $50,937, and those with bachelor’s degree eared $38,628. Hence, an individual’s level of education determined the income earning. Therefore, men in United States earned more than women in 2007, and this provides an opportunity for supercar club. Targeting male car enthusiastic will lead to rapid growth as the company will have a ready market because customers will be able to afford renting supercars (United States Census Bureau, 2012).
Primary research
The primary research showed that car enthusiasts in Philadelphia will rent the supercars. The interviews and surveys revealed that male customers will rent supercars often than women due to the income difference. Male customers earn more than female customers and they can afford supercars. Male customers like buying cars more often than female customers as they are car enthusiasts. Results from the interviews and surveys showed that male customers bought super cars due to convenience and comfort. They preferred to rent super cars or buy as they were convenient and comfortable compared to other means of transport. They enable them to travel quickly. Also, they preferred stylish cars over convectional cars. Hence, supercar club will meet the needs of male customers by offering stylish cars like super cars. Customers will be able to rent the cars anytime as they are comfortable and convenient (Proctor, 2000).
Entry strategy
Since, supercar club is new to customers a wide range of strategies will be used to enter the market. The company will offer super cars to customers at a lower price. This will help attract customers and promote growth. Also, the company will spend a large part of its budget on advertising and promotion. Electronic and print media will be used to advertise the supercars and other services that the company offers. The company will offer 20% discount on customers who rent supercars during the first week. Also, it will offer 20% discount on membership fee for customers who join the club during the first week after launching of the club. This will increase memberships and customer base (Proctor, 2000).
Reference
United States Census Bureau. (2012).State & County Quick Facts. Retrieved http://quickfacts.census.gov/qfd/states/42/4260000.html on 6/12/2012
Proctor, T. (2000). Strategic Marketing: An Introduction. Routledge
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