Assignment:
Discuss the below:
Market Analysis
Your Fireplace Shop focuses on selling primarily to homeowners. In fact, according to a survey done by the HPBA, homeowners are looking for cleaner, more efficient options for heating their homes. So, over fifty-one percent of homeowners believe that installing a high-efficiency fireplace or stove would lower their heating bills. Thus, we will ensure that our customers not only get what they want, but that their choices meet their needs. That is, we will provide our customers with hearth products that are energy efficient and it can help cut energy bills. In addition, our wood or pellet burning stoves and fireplace inserts are certified by the U.S. Environmental Protection Agency to produce as much as 90% less wood smoke than uncertified wood burning appliances.
We will also offer aesthetically pleasing fireplaces for those homeowners that just want the aesthetic appeal of a fireplace, but don't want to bother cleaning it. Thus, our fireplaces from Vermont Casting are vent-free and generate heat with a real, open flame, and without the hassle or mess of wood or ashes. In fact, some of these fireplaces are electric or operate with gas. Moreover, we will offer ventless gel fireplaces for homeowners that want a fireplace but can't afford to have one. These kinds of fireplaces run from around $300 to less than $800, complete. Thus, our products not just add warmth and beauty to a home but it also adds value. In fact, according to builders magazine "fireplaces add another $12,000 to the value of the home almost instantly".( www.buildernewsmag.com)
Finally, our secondary market will be homebuilders since they are looking for fireplaces that are easy to install. In fact, according to NAHB "75 percent of factory built fireplaces or stoves are installed during new construction" Thus, we will provide homebuilders with factory built fireplaces from Vermont Casting.
In fact, our goal is not just to provide products and services but to provide benefits to our customers. That is, our customers will benefit from our products since they will be able to save money on their heating bill. And they won't have to worry about air pollution since our products are 90% smokeless. Moreover, those customers that can't afford a fireplace will have the opportunity to own one since our ventless gel fireplaces are inexpensive. And our homebuilders will benefit since our Vermont Casting fireplaces are easy to install. Thus, our new fireplaces will provide homeowners and homebuilders with improved heat distribution, energy savings, indoor air quality and easy installation. Market Segmentation
Our market is divided into two different groups, homeowners and homebuilders. Therefore, the company anticipates serving the needs of these two groups and all other potential customers within the Northeast Kingdom The total population is 64,682 and median incomes range from $44,000 - $54,000 for 2006. In addition a survey done by the census revealed that homeowners are our largest market and more of them are using wood than gas. According to the Lieutenant Governor of Vermont, more Vermonters this year are also turning back to wood burning due to the high cost of heating oil. So, this will be emphasized in all of our company's marketing and promotional efforts. As for homebuilders there are only 30 of them around the area. Thus targeting this market will depend upon establishing meaningful relationships. The following chart shows each county housing unit by heat source based on census data.
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Housing Units by Heat source 2000
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Caledonia
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Orleans
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Essex
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Heated with Utility Gas
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96
|
40
|
6
|
|
Bottled / Tank / LP Gas
|
1,678
|
991
|
252
|
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with Electricity
|
311
|
275
|
30
|
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Fuel Oil / Kerosene
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7,813
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7,187
|
1,921
|
|
Coal / Coke
|
30
|
7
|
1
|
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with Wood
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1,671
|
1,905
|
388
|
|
Solar Energy
|
5
|
4
|
0
|
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Other Type of Fuel
|
43
|
29
|
0
|
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That Are not Heated
|
16
|
8
|
4
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