2015

MARKET RESEARCH REPORT

assesSMENT OF MY EYE DR.’S PROSPECTIVE MARKETSTiffany Collins

Abstract

As My Eye Dr. takes on the endeavor of expanding its company through acquiring nation-wide, it is of utmost importance for the company to be cognizant of the dominant forces that exist within their prospective target markets in Atlanta, Tampa, New Haven, and more to reach their targeted objectives of growth within the next few years. This report opts to underline crucial elements in the economic environments of the specific target markets of Atlanta, Tampa, New Haven, Dover, Hartford and Philadelphia relative to their demographics, state of their health care market and retail market as well as the city’s GDP per capita. The findings in this report were retrieved from the state’s government report, articles from publications, and academic journals published between years ranging from 2013 to 2015. At the beginning of each section, there will be a note specifying the main publications and sources that were referred to in the section.

Market Analysis 1

General Opportunities For MyEyeDr. Online purchasing platforms: Today’s world revolves around convenience through tech

platforms. Online shopping, as we know, is the biggest trend, which explains why online shopping has triggered over $870 million

o Our Current advantage: is that we have recently modified our company’s website to be more mobile-friendly, which can cause more engagement with customers. Moreover, general personal income in the country is rising, causing increases in customer confidence and price elasticity of those customers.

Tracking Wellness online: Customers are increasingly beginning to track their health online and through technological platforms to monitor, research and gain insight on ways to improve their health. The use of smartphone applications, online blogs, and others to help track customer/user health.

General Threats For MyEyeDr.

Health care reforms in the future: Very sensitive for our customers.o What has worked for the optometry industry: Incorporating kid’s plans and benefits

The US economy is projected to fall slightly in 2015 due too Chinese economy’s growth set to decreaseo More boomers begin to retire (more strain on government expenditures (higher tax?)

Market Analysis 2

ATLANTA, GA

Note. Information retrieved from economic reports from Colliers International, Georgia Power and the US Census Bureau

DEMOGRAPHICS

Population: Around 450,000 3.5% population growth Growth is making it more attractive to newcomers become a very diverse community

(expats, etc.) Median personal income of $55,500 (projected to increase in the next few years)

o More disposable income According to Georgia Power’s research, Atlanta’s personal income grew at a faster rate (2.3%) than that of the US average growth of around 1.8% (see line graph on bottom right).

High economic growth + rises in personal income/disposable income could imply that customers have a higher price elasticity, insinuating that some customers could be more prone to brand-oriented preferences rather than discount-oriented ones. This can also insinuate higher sales.

THE MARKET

One of the fastest growing regions in the US Many top companies have their headquarters here (i.e Coca Cola, Home Depot, etc.)

Advantages and Possible Opportunities:

Market Analysis 3

o Could be beneficial to collaborate with for Health Fairs/other eventso Find contacts (companies) in DC that can link us to others in Atlanta to begin marketing

events/spread our brand in this new market.

RETAIL

The current state of Atlanta’s retail market poses a few opportunities for MED. First and foremost, a research carried out by Colliers International states that Atlanta’s occupancy rate has attained its highest level in 7 years following its 15 years of positive growth in the retail market

o Driving factors of Atlanta’s successful retail market Overall expansion of the population and employment base Most active retailers: health and fitness, recreational and discount retailers of

which grocery stores and market centers are the most active.*This gives us great insight for the location that we choose to place our MED location

Can choose to partner with a prominent local market center as well as reserve booths or locations in grocery stores

o Rental rates are relatively low (currently at $12.28 per square foot) due to older retail property in the outskirts of the city.

Quoting rental rates 15% below the market average However will possibly go up in the near future

HEALTH CARE

Very prominent health care presence in Atlanta(expanding economy and growth in most areas of the health care market)

o Will become more competitive market

WORKFORCE/EDUCATION

Home to various top institutions (Emory, Georgia State, Georgia Institute, etc.) highly educated talent pool (Georgia Power p. 8).Advantages and Possible Opportunities:

o Could be beneficial to collaborate with for Health Fairs/other eventso Find contacts (schools) in DC that can link us to others in Atlanta to begin marketing

events/spread our brand in this new market The population is becoming increasingly more diverse as the city continues to experience high

growth (expats, highly trained professionals, large workforce) Ranked #9 as the Best City For Young Professionals

TRANSPORTATION:

MARTA is Atlanta’s public transportation system which operates throughout the Fulton and DeKalb counties (Georgia Power p. 10).

o The 9th largest transit system in the US

Market Analysis 4

o Roughly 54% of trips taken by customers on the MARTA transit system are made to work This number could increase as the population is projected to rise.

MARTA could provide transportation and access to our perspective customers in the Atlanta metropolitan area

Tampa, FL

Notes. Information retrieved from CBRE’s Florida’s Retail Report, Bureau of Labor Statistics, and Safety Net Hospital Alliance of Florida.

Figure 1. Consumer Confidence

RETAIL MARKET

Consumer spending, housing and migration are all key contributors to Florida’s improved economic standing. Their retail sales is on strong footing and has been growing since 2010, outperforming that of national retail sales growth according to ICSC, a trade organization for the national/international retail industry (ICSC, P.8).

The state of Florida’s retail market is projected to flourish even more due to the following circumstances:

o More spending in retail due to high volume of visitors and tourists $76.1 billion tourism spending// 94.7 million visitors (2013) Optical spending:

HEALTHCARE MARKET

Florida’s healthcare is considerably lagging in comparison to national healthcare performance. Regarding general physicians, the city is experiencing a moderate downfall of 11% of which demand for physicians is higher than the supply, driving down the physician-to-patient ratio. However, the supply is augmenting at a slightly higher rate than the demand. This insinuates a possible continual rise in the future which can result in the supply catching up with its demand.

Market Analysis 5

Figure 2. Graph of the Number of General Physicians in Florida (moderate)

Note: Physicians Workforce Analysis (p.2 2015) http://safetynetsflorida.org/wp-content/uploads/SNHAF-Physicians-Workforce-Analysis-Brochure1.pdf

However, even more concerning is the fact that Florida is undergoing a current 18% drop, which is projected to persist and plummet further to 19% by 2025.

o The supply of specialists in Florida is below that of the national average when considering

Changes in the state’s demographics Health risk factors

Figure 2. Graph of the Number of Physicians Specialties in Florida (severe)

Note: Florida Physicians Workforce Analysis: Forecasting Supply and Demand (p.2, 2015).http://safetynetsflorida.org/wp-content/uploads/SNHAF-Physicians-Workforce-Analysis-Brochure1.pdf

Vision care and ophthalmology are categorized within the dwindling types of physician specialties in Florida.

Market Analysis 6

Figure 3. Physician Specialties that are Experiencing Deficiencies in Florida’s Healthcare Market

Note: Florida Physicians Workforce Analysis: Forecasting Supply and Demand (p.3, 2015).http://safetynetsflorida.org/wp-content/uploads/SNHAF-Physicians-Workforce-Analysis-Brochure1.pdf

The table in Figure 3 (above) shows the types of physician specialties that are suffering from a deficit.

REGIONAL FINDINGS

All regions are suffering from a physician deficit however, Tampa (located between region 5 and 6) is doing considerably better in Ophthalmology with an average deficit of around -1.5%. This takes into account region five’s supply growth of 4% and region six’s supply deficit of -7%. This insinuates that the region 5 and 6 area where Tampa is located provides one of the best environments for optometric care where the physician-to-patient ratio is higher. However, this could also mean fierce competition

o Question: Would we prefer to enter a market where Deficit: A severe lack of specialized physicians in the market so that we can

bridge this gap and gain customers who would otherwise find it difficult to secure an appointment.

Market Analysis 7

PRO:o Bridge gap in market by providing more careo We can focus on targeting tourist groups in the city who are

there for a short period of time capitalize on providing tourist discounts on sunglasses, for example (customers who broke, lost or are in need of a new pair of glasses

o Less competition present in the market CON: Would we be able to find doctors to practice at our locations due

to the deficiency? Surplus: OR a market that has positive growth or minimal deficiency in their

supply of physicians. This could mean more physicians going into the market (severe competition) or it could mean more physicians that we can partner with for our services

PRO: Proven track record of success and demand for our services in the Tampa opthemetric market, wider selection of physicians that we can choose from to practice at our locations ( and/or more acquisitions?)

CON: Fierce competition

Figure 4. Physician Deficits by Specialty and Region

Note: Florida Physicians Workforce Analysis: Forecasting Supply and Demand (p.5, 2015).http://safetynetsflorida.org/wp-content/uploads/SNHAF-Physicians-Workforce-Analysis-Brochure1.pdf

Market Analysis 8

Figure 5. Physician Supply Relative to Region

New Haven, CT

Notes. Information retrieved from Data Haven, as well as publications by its executive director, Mark Abraham.

GENERAL ECONOMY Population: 130,000 New Haven’s main employers are reside in utilities, hospitals and educational institutions of

which health services and education are amongst the highest.

ECONOMIC ELEMENTS Advantage – Aging population and strong health care economy:

o Aging population to grow by 44% between 2013 and 2025 o A strong economy in which health care is a main contributing factor

Disadvantage - Transportation issues & lower income in the New Haven area: o The inner New Haven area is characterized as having the lowest income in the state of

Connecticut. GDP per capita in New Haven is at an estimated $38,000 per years while that of Connecticut is at around $68,000 per year.

Market Analysis 9

o Transportation and Geography: Over one in four families living in the city of New Haven does not own a car. Most entry and mid-level jobs are located in the outskirts of the city, and with limited public transportation, such trips are challenging to make. MyEyeDr. Should be cognizant of this when deciding their location in the New Haven area (Abraham 2014). When choosing a suitable location in New Haven for our MED store should we consider an:

Inner City Location: Should we be closer to the inner city of New Haven so that those without a car have better access to us + further from those coming from affluent outer city locations who own a car + higher rent cost

Outer City Location (Outskirts): Will be closer to a more affluent client base who would have easy access to our services, however this might omit some of our inner city clients who rely on public transport (a significant number) as transportation issues may prevent their access to our store

Geographic Elements Figure 1, below allows us to distinguish New Haven’s (shown in blue) by the income

level of their inhabitants. The darker shades of blue depict regions that encompass higher incomes while the lighter blue illustrate regions characterized by lower incomes. This could help MyEyeDr select the location that would better suit their business activities relative to their target audience in this area (Abraham P. 8).

Market Analysis 10

Philadelphia, PA

Economy Workforce: Current workforce in the city is at 662,000. Nearly one third of the city’s

workforce (212,000) are employed in healthcare and education, which attests that healthcare and education dominate a significant part of employment in the city, whereas other industries such as services, transportation and government employ over 50,000 workers.

o Has 25% fewer jobs than it had in the 1970so The city has undergone moderate growth in the past few years

Industries: While some of Philadelphia’s major industries lost jobs in the past decade (manufacturing, financial services, and government at a decline of 39%, 20% and 15% respectively), this has in part been offset by the growth in education and health services, recognized as the top economic sectors of Philadelphia (Philadelphia Chamber of Commerce p. 10).

o This would also be the cause of competition within the health services for MED

Competitiveness: The city has one of the highest local tax in the nation, and is said to stifle the city’s economic growth; Hence, why they have been experiencing only moderate growth in the past decade ((Philadelphia Chamber of Commerce p. 17).

o Makes it difficult for business to move to Philadelphia

Market Analysis 11

Bibliography:

Abraham, Mark. (2014) “How Transportation Problems Keep People Out of the Workforce in Greater New Haven”. http://ctdatahaven.org/reports/how-transportation-problems-keep-people-outworkforce- greater-new-havenAbraham, Mark. “Greater New Haven Community Index 2013”. Data Haven. file:///C:/Users/tcollins/D

ownloads/Greater_New_Haven_Community_Index_2013%20(1).pdf

Atlanta: The Growth Engine in the Southeast. (2014) Metro Atlanta Overview. Georgia Power. http://selectgeorgia.com/publications/atlanta-overview.pdf

Notes. Report sets forth reasons to invest in Atlanta, GA as well as provide insightful information concerning all aspects of the city’s economy.

Florida Strategic Plan For Economic Development (2014). eFlorida. http://www.camsys.com/pubs/FL_5y rEcoPlan.pdf

International Council of Shopping Centers, ICSC. (August 2014). Florida Retail Report. CBRE. http://www. icsc.org/uploads/event_documents/2014FL_Retail_Report.pdf

Morgan, Erinn. Top 10 Business Trends for 2015. EyeCare Business. http://www.eyecarebusiness.co m/articleviewer.aspx?articleid=112092

Ortman, Velkoff, & Hogan (2014) http://www.census.gov/prod/2014pubs/p25-1140.pdf

Notes. Report by Jennifer Orton, Victoria Velkoff and Howard Hogan, the chiefs of the population projections branch, social statistics and director for demographic programs respectively at the US States Census Bureau

Pratt, Robin. (2015) “A Closer Look at the $13 Billion Premium Eyewear Market”. Business of Fashion. http://www.businessoffashion.com/articles/intelligence/a-closer-look-at-the-13-billion-premium-eyewear-market

Research & Forecast Report: Atlanta Mid-Year 2015. (2015). Colliers International. http://www.co lliers.com/-/media/files/marketresearch/unitedstates/markets/atlanta/my2015atlantare tailmarketreport.pdf

“Roadmap for Growth: A Vision for the City of Philadelphia”. (2015) Greater Philadelphia chamber of Commerce. http://news.gpcc.com/wp-content/uploads/2014/07/RoadmapReport- lowres.pdf

Su, Betty W. Employment Outlook. Bureau of Labor Statistics http://www.bls.gov/opub/mlr/2007/11/art2full.pdf

Teaching Hospital Council of Florida & SNHA. (2015) Physicians Workforce Analysis: Forecasting Supply and Demand. http://safetynetsflorida.org/wp-content/uploads/SNHAF-Physicians-Workforce-Analysis-Brochure1.pdf

Market Analysis 12

Note: Supply data and inputs come primarily from the AMA Master File and the 2012 and 2013 biannual Physician Workforce Licensure Surveys administered by the Florida Department of Health. The demand estimates and projections take into consideration current and projected future demographics, presence of disease and other health risk factors among the population, and medical insurance coverage changes associated with the ACA

Market Analysis 13