Demographic analysis for business plan

People who share the same demographic profile usually have the same purchasing behavior.

Demographic analysis for business plan

Once you know the demographics of your target customer, you can more effectively pursue branding, pricing, product development, advertising, promotions and distribution strategies. Demographics Demographics are objective identifiers of consumers that include traits or characteristics such as age, sex, marital and parental status, and income and educational levels.

Depending on your product or service, you might only need to know a few demographics about your customer.

Demographics

In other instances, the more you know, the more you can target your message to a particular segment of the marketplace. Target Demographic The detailed profile of your customer gives you your target demographic, which is often a combination of more than one characteristic or trait.

For example, instead of targeting women, a salon might target affluent women between the ages of 30 and A sports bar might target single people with high median incomes who are between the ages of 25 and After studying local census data, a local restaurant might target young families with children.

The more you narrow down your target demographic, the fewer potential customers you have, but the more you can create a brand that tells them you serve their unique needs. The trick is finding the right combination of demographics to find enough people in a group who feel you offer the best product just for them.

Use of Demographics Knowing your marketplace demographics will help you set your prices, determine where to sell your product, what features you should add and the benefits you should emphasize. Demographics help you create strategies to improve sales by helping you satisfy demands consumers want.

For example, if you have a restaurant and know that most of the population in your area is older, you might want to create a healthier, more affordable menu with fewer spicy dishes. If you operate in a tony suburb with consumer demographics that skew toward younger, high earners with college educations, you might create a more upscale brand and exotic menu with a wine list.

These groups often conduct national surveys and provide detailed information on consumer demographics, preferences, buying habits and trends in a specific industry. Census Bureau data for your area to determine the population characteristics of your market.

The towns in your area often list population characteristics of residents at their websites. Check your website statistics to see who is visiting your website, or use free data available from Internet companies such as Quantcast and Alexa.

Discuss with your salespeople who they are seeing on a regular basis, who is buying what and how much different types of customers are buying to determine if you should target a specific group.

What is a market analysis?

Segmenting the Market When you target one group of consumers, you protect and enhance your brand, but lose the opportunity to sell to other groups.

For example, if your main target demographic for your health club is people between the ages of 25 and 45, and you begin advertising senior aerobics classes, you might damage your brand with young hard bodies. Offering coupons for a discount cut and blow dry at an upscale salon might cause your affluent women to seek a more exclusive salon.

Consider leasing distressed space in the same mall and opening a second shop for budget hair styling.Unit of Analysis. In demographic analysis, managers need to first determine if their customers are individuals or businesses.

demographic analysis for business plan

This guides variable selection and information gathering. Demographics. Demographics are objective identifiers of consumers that include traits or characteristics such as age, sex, marital and parental status, and income and educational levels.

Unit of Analysis.

demographic analysis for business plan

In demographic analysis, managers need to first determine if their customers are individuals or businesses. This guides variable selection and information gathering.

Business Plan Section 5: Market Analysis This is the part of your business plan where you really get to shine and show off that awesome idea you have. Of course, your product or service is the best! Understanding the demographics of your target customers is critical for the success of your business.

Not only do you need to understand them in order to decide exactly what your product and. For a business to be successful, it requires extensive planning and analysis to survive in the market and industrial environment. Businesses conduct analyses to assess conditions and environment in .

Market Demographic Analysis | vetconnexx.com