Download - The Big Opportunity
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The Big Opportunity By:Ashley DelinkoKazu Ogami
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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
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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
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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
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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
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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
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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)
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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
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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
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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
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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
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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?