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The Toddler Warehouse
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The Toddler Warehouse is a start-up business. A comprehensive marketing plan and effort will be instrumental in developing visibility and generating sales. The Toddler Warehouse offers Salem, Ore. a full-service child care and child development facility for toddlers. These services will be differentiated from the competition through advanced training and learning systems.
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Through a lot of research, The Toddler Warehouse has accumulated good information regarding the market and are aware of many common attributes of key customers. The Toddler Warehouse will leverage this information to continue to study who is served, their needs, and how The Toddler Warehouse can best communicate with them.
Market Analysis | |||||||
2001 | 2002 | 2003 | 2004 | 2005 | |||
Potential Customers | Growth | CAGR | |||||
Two income professional families | 9% | 12,000 | 13,080 | 14,257 | 15,540 | 16,939 | 9.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 9.00% | 12,000 | 13,080 | 14,257 | 15,540 | 16,939 | 9.00% |
The Toddler Warehouse is providing Salem parents with a full-time child care service that utilizes a sophisticated learning development system. The Toddler Warehouse will fulfill the following benefits that are important to their customers:
The market trend in child care is an increased utilization of child care by parents. This is fueled by the parents desire/need to go back to work generating income for the family. While this trend fuels the need for more general child care facilities, it also generates demand for facilities that offer child development. As the parents are spending less and less time with the children, they have less time to help them develop. The trend is moving demand away from solely babysitting child care to child development care. This will benefit The Toddler Warehouse because they offer state of the art learning systems.
In 1999, the national child care industry had $11 billion in revenues. The industry is estimated to grow at 9% for the next several years. This growth can be primarily attributed to parents going back to work, creating two income households. These parents need a service provider to care for their children, and more parents are turning to child care services as opposed to a babysitter or live in nanny.
The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing The Toddler Warehouse.
There are many different competitors in the child care space. The Toddler Warehouse will only detail the direct, or reasonably direct competitors, and will not detail the myriad of other service providers that offer some sort of child care option. The direct competitors are:
The Toddler Warehouse offers Salem, Oregon upper-end child care for toddlers aged three to five. The Toddler Warehouse offers a low teacher to student ratio, custom made facilities, and innovative learning programs. The Toddler Warehouse hours will be a wider range than normal business hours to accommodate the working parents, the target customer.
The two income families have children, yet both parents work. The Toddler Warehouse is an innovative solution that acts as virtual parents, broadening the children's skills during the day. This is no baby sitter facility. The children are engaged throughout the day, learning new skills and reinforcing already acquired ones.
The Toddler Warehouse is still in the speculative stage as a child care facility. Its critical issues are to continue to take a modest fiscal approach; expand a reasonable rate, not for the sake of expansion in itself, but because it is economically wise to; and continue to build brand awareness which will drive new customers.
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