The Big Opportunity

1. The Big Opportunity By: Alex Enriquez, Iviee Li, Corey Pierce

2. Tim Barry • Frustration turns into millions • Shipped 10,000 seat belt Extenders for $60-$70 a pop • ScaleIt.com and SuperSize World.com • Expected to hit $1 mil in sales Introduction

3. Americans are fat, and they’re getting fatter • Not just low Income. Urbanites are the ones rising most rapidly. • “Plus – size” population are the new baby boomers • American businesses are rethinking their strategies Large Market Segment

4. Between 1962 and 1980 – stable growth in average body size: 1/3 pound a year • In 1980, average adult male – 174 pounds, average adult female – 145 pounds • By 2000, 30% of US population is obese (BMI 30 or above) and 34% is overweight (BMI 25 – 29.9)* Accelerating Trend

5. 64% of total population is in the market for plus size merchandise • Fatty food, bigger portions, less cooking at home are factors that contribute to the “growing” trend Accelerating Trend

6. Most department stores and top retailers paid little attention to larger customers • Lane Bryant became the industry leader in plus size women’s clothing in 2000 • 690 stores and $930 million in sales, acquired by Charming Shoppes in 2001 • Charming Shoppes – 3rd largest specialty retailer • Women wearing size 14 and larger make up more than 50% of the overall market Beyond Weight Loss

7. Historically oversized markets were very underserved. • Shopping trips use to have the prospects of a needle in a haystack. • Women often would concede to buying oversized men's clothing. • Tedious past experiences have left consumers jaded. • Consumers not as price sensitive. • Something that “fits” feels like a luxury. Loyal Customers

8. “This business was so underserved for so long”, “A plus-size woman sticks with a brand she likes, and she doesn’t mind paying full price for it” • Barry Zeinman. General Manager Specialty Retail, Elisabeth Stores, Liz Claiborne. Loyal Customers

9. Companies can now find profitable markets by reengineering existing products for large consumers. • Smart existing companies need to asses market periodically (market research and assessment). • Ex. Furniture, surgical equipment • Insightful and fast entrepreneurs can catch big companies snoozing. • Ex. Toilet seats Product Line Extension

10. Products or Services must be designed for larger consumers but not seem to be only for them. • Products that reflect too much reality- that it reminds the person that they are overweight- Often Bomb. • Subtlety is Key. Difficulty in Marketing to Obese

11. Videos: http://www.youtube.com/watch?v=1YntprQzdTo http://youtube.com/watch?v=nPZcCvtB9Wg&feature=related • Cartoon: http://fitnessfanatic.org/blog/weight-loss/nutrition-notes-on-weight-loss-supplements/ • Healthy weight, overweight, and obesity among US adults: http://www.cdc.gov/nchs/data/nhanes/databriefs/adultweight.pdf • Crawford, Krysten (June 5, 2006). The big opportunity. Business 2.0 Magazine, Retrieved Jan 30, 2009, from http://money.cnn.com/magazines/business2/business2_archive/2006/06/01/8378500/index.htm References