1 / 12

The Big Opportunity

The Big Opportunity . By: Ashley Delinko Kazu Ogami. Background Information . Tim Berry: 55 yr old management consultant who traveled Issue faced: not enough seatbelt for Tim Decided to to make his own travel kit with seatbelt extenders

emil
Download Presentation

The Big Opportunity

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The Big Opportunity By: Ashley Delinko KazuOgami

  2. Background Information • Tim Berry: • 55 yr old management consultant who traveled • Issue faced: not enough seatbelt for Tim • Decided to to make his own travel kit with seatbelt extenders • He discovered there was a shortage of seatbelt extenders

  3. Extend-its.com • Launch a retail site • Small warehouse located in Vancouver, Washington • Has shipped: • 10,000 Belt Extenders • Sold for $60 to $70 • Lead to two other retail sites

  4. Entrepreneurial Opportunities • Supersizeworld.com • Sclae-it.com • $20 hangerzillas holds coats up to 100 lbs • High capacity scales • Plush bath towels (sold $60) • Expected to hit $1 M in sales in 2006 • 2 employees • Only advertisements on Google

  5. Market Segment • In 2006, 60 million Americans qualify as obese • Expected by 2013: 78 million Americans • Has caused $49 billion weight loss industry • Weight loss industry was narrowly targeted • Corporate America driven a larger segment for this industry • Obese trend has an affect on consumer goods

  6. Retailers have reacted • Toyota Rav4 • 3 inches wider • Jessica Simpson • Big bottom jeans • Tommy Hilfiger & Ralph Lauren • Plus size lines • Size acceptance night clubs in urban areas

  7. Accelerating trend • In 1980, the average weight of Americans • 174 pounds (male) • 145 pounds (female) • Today, nearly a third of adult men and more than a third of adult women are considered obese • 205 pounds (male) • 175 pounds (female)

  8. Pioneers in This Industry • Lane Bryant • expanded its clothing chains to more than 690 stores and $940 million in sales • Plus-size women make up more than half of the overall market • Torrid • Sold Baby Phat tube tops and Hot Kiss gaucho pants to large women • Revenue growth to more than $70 million

  9. Loyal Customers • The prize for retailers isn’t just increased sales, but also customer loyalty • Barry Zelman (general manager of specialty retail) • A plus-size woman sticks with a brand she likes, and does not mind paying full price for it • Loyalty expands beyond clothes • Chairs, spas, restaurants, and couches

  10. Product Line Extension • Brayton International • Sold waiting-room chairs designed for bigger people in 2003 • 2.9 billion in annual revenue • A small plumbing manufacture in LA • Designed the Big John Toilet Seat, a 19-inch throne made of reinforced plastic • Demand has doubled over the last six months

  11. Product Line Extension • Design bigger products without advertising them or talking about them • Toyota Rav4 mini SUV • Some businesses remain reluctant to make to to make themselves more fat-friendly • Southwest Airlines • Julio Rincon

  12. Discussion Questions • What are the potential risks of expanding product lines to taylor to the growing market of plus size Americans? • What are the potential advantages? • Should companies support the trend of growing plus size Americans?

More Related