Business Plan Sample: Market Description

Geographic Area

Northwind Traders is based in Seattle, Washington, and targets individuals interested in adventure vacations in Europe. The region comprises the incorporated cities of Redmond, Bellevue, and Tacoma and the encompassing counties of King, Snohomish, and Pierce.

Market Description

The Greater Seattle area--including all of King, Pierce, and Snohomish counties--is home to approximately 3 million people (1994 figure), half of whom fall within our target market. Seattle's job rate is climbing at a rate of 10 percent each year, and new jobs and growth are expected through the year 2007. Seattle has become a world-class destination, and the downtown retail and shopping core has grown steadily over the last decade. The following major facilities reside in the Greater Seattle area: an international airport, several major medical centers, a state university, and four other colleges and universities.

The percentages of employment by industry are as follows: 28 percent services, 25 percent wholesale and retail, 16 percent manufacturing, 14 percent government, 6 percent transportation and communication, 6 percent finance and insurance, and 5 percent construction.

Target Customers

Seattle/King County's labor force is highly educated, skilled, productive, and stable. It consists of individuals who are deeply attached to the area and have tended to stay and wait out past periods of economic downturn. The vital economy, the Northwest lifestyle, and its unique environmental qualities attract people. Both public officials and business leaders recognize the need to keep our labor force well equipped with marketable skills.

From within this population, our target customers are individuals who are professionals with incomes of $40,000+, ages 25 to 35, single or married, without children, and college educated.

Market Definition

The world travel market is forecast to expand at a 4.1 percent average annual growth rate until 2010. This is faster than the general economic growth rate, which is expected to be around 2.4 percent per year.

The European market, while not the fastest growing, will be the most important destination, accounting for over 50 percent of all international arrivals (see Appendix 1). Within Europe, France, Italy, and Spain are the most popular destinations. This is why we have selected tour operators with appropriate products in these areas as our initial partners.

Figures for the size and projected growth of adventure vacations are sketchy, but the figures from one recent study (World Adventure Travel Data Corp.) are in Table 2.

Table 2. Adventure Travel Vacations - World forecast (Million Arrivals): 1990 - 2010