Market Anaylsis

University Degree Business and Administrative studies

Aundrea Jones-Christmas

Market Analysis

As of 2006, 37 million people age 65 and over lived in the United States, accounting for just over 12 percent of the total population. Also, the Baby Boomers (those born between 1946 and 1964) will start turning 65 in 2011, and the number of older people will increase dramatically during the 2010-2030 period. As of the 2007 United States Census, Charles City County had a population of approximately 7,212 individuals. Individuals 65 and older accounted for 16.2% of the population or approximately 1,168 people. New Kent County had a population of approximately 17,825 individuals. Individuals 65 and older accounted for 9.8 % of the population or approximately 1747 individuals. If Young at Heart's target market area consisted of even 10% of this population, this would give us a market base of 29 people. Currently based on research from Reach Virginia website the estimated the median household effective buying income for these counties is $42,560. The media income for Charles City County is $48,113 and the median income for New Kent is $68,437 based on 2007 state census. Charles City County is centrally located in a rural area of Virginia with a radius of approximately 30-40 miles. The closest metropolitan area is a 35-minute distance via car.

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Our market plan at Young at Heart is based on a focus strategy where we will appeal to two segments of the population who currently reside in Charles City and New Kent County: (1) those persons 60 and older and (2) the adult family members who are caring for an elderly person. The history and culture of the people are very important when examining the market area. Growing up in this area for 44 years, Aundrea has heard many stories of how children were expected, by their parents and the community, to care and help provide for the family once the elderly were unable to work. Going into a nursing home was not an option. Therefore, this community has a strong sense of family values and support. Also, the Baby Boomers are currently living through a recession and know the value of a dollar.

With the strong sense of family values, receiving quality service for their money, and the fact that the median effective buying income of this population is $42,560 Young at Heart must prove to its target market that it provides high-quality services for its price. Currently adult daycare services are not reimbursable under Medicare and although some states provide funds under Medicaid waiver programs, these funds are limited and cannot be relied upon for payment. Therefore, most adult daycare centers rely upon fee-for-service payment and philanthropic funding to pay their overhead costs. Young at Heart plans to charge $50.00 per day and plans to develop a sliding scale payment system for members of lower income.

Based on information from Charles City County on Aging, Young at Heart closest competitor is two adult daycare centers; which are located in King William County and West Point County area. Telephone interviews and on-site visits were conducted with the competitors so that we were assured we are providing similar services at competitive rates. These centers are at least a 40-50 minute drive from the target market area. Young at Heart will be, at the most, a 25 minute drive for those people who live at the edges of the market area. Also, to reach even the closest competitor, located in these counties, everyone living in the target area would need to travel further away from the interstate. This factor would cause many people from the Charles City and New Kent County to choose not to use the competitor's services. Young at Heart's unique selling point, therefore, would be that it is the only center in the immediate market area to offer adult daycare services.

Promotion:

* Young at Heart plans to advertise in the local newspapers, church bulletins, websites, and in the yellow pages. We also plan to do a mass mailing of promotional pamphlets explaining about our services.

* Young at Heart will provide free informative seminars, at various convenient locations, so that the community will be able to learn more about adult daycare and the services we will provide.

* Young at Heart also plans to use volunteer services of retired elderly persons which will not only give them a feeling of self-worth, but will make them aware of the many services offered.