Sample Market Analysis

 

 

 

 

 

Market Analysis

for

InifiniTea

 

 

 

 

 

 

 

 

 

for

Small Business Loan Officer

Bank of America

Klamath Falls Branch

 

 

 

 

 

 

 

 

 

by

Tiffany Goddard

 

 

 

October 20, 2009

 

 

 

 

 

 

 

Market Analysis for InfiniTea

 

 

INTRODUCTION

 

InfiniTea is a coffee shop aimed at serving high quality café foods at affordable prices. We strive to be not only a shop with excellent product offerings, but also a great atmosphere and environment for our customers. One of our large focuses is to give back to the people in the community through the services we offer. We have summarized information on InfiniTea in the following pages in order to illustrate our goals and desires as a company.

 

 

INFINITEA AS A BUSINESS

 

InfiniTea is a company that has a lot to offer. Here is a brief overview of a few aspects of the company including our three target markets, our products, and our service offerings.

 

The Target Markets

 

There are three markets InfiniTea will target.

 

Students of Oregon Institute of Technology and Klamath Falls Community College

 

Our shop is a comfortable place for students to get together and study and succeed in their schooling. Students who are interested in learning and getting help with their school work can access free Wi-Fi here in a quiet, relaxing environment.

 

Artists, Poets, and Musicians

 

InfiniTea is a great environment for all types of artists. We host live music entertainment on weekends, monthly poetry nights, and opportunities for artists to exhibit their work in our shop. We long to help people succeed.

 

Local Residents of Klamath Falls

 

We want to give back to the people of Klamath Falls. We are here to support community events and activities, and in turn they will feel drawn to the environment we have created here at InfiniTea. We will have a poster-board on one of the walls of our shop where people can post fliers for any need they may have, whether it’s a job posting or a lost pet, we are here to help.

 

Product/Service Offerings

 

InfiniTea has a diverse selection of product offerings:

 

  • Our drink menu includes a variety of teas and a large assortment of coffee drinks. We also offer juices, smoothies, and bottled water.

  • Our food menu contains muffins, coffee cakes, and various desserts as snacks. We also have bagels and sandwiches for lunches. We offer meal-deals which contain a food menu item and a drink item at a discount price.

 

We provide a range of services for our customers as well:

 

  • We offer live music entertainment on weekends. We have a small stage in our shop to allow for local musicians to come and play Friday, Saturday, or Sunday evenings. We invite anyone to sign up, but we ask for an acoustic style of performance. We request this because the stage is not large enough for a full band, and also, the acoustic style of music will be less likely to interfere with customers’ meal orders or students’ study time.

  • Every 1st Monday of the month we host an open mic poetry night where people can share their talents will others in the community.

  • If local residents are looking for a place to show off their artwork, we are happy to oblige. We have wall space around the shop specifically designed to display art pieces and slots beside them to hold business cards if the artist is interested in selling.

  • We at InfiniTea desire to help students achieve their goals. That is why we offer a quiet homework lounge, free Wi-Fi, and study materials for students to use. The study materials include tools such as dictionaries, calculators, encyclopedias, and more.

 

 

THE LOCATION

 

We chose a location based on ease of access to our target markets: 2609 Campus Drive, Klamath Falls, OR 97601. It is across the street from Oregon Institute of Technology (OIT) and fairly close to Klamath Falls Community College.

 

 

THE COMPETITION

 

The coffee business is very popular; however, we feel that we can stand up to our competitors through the nature of our company, our word-of-mouth advertisement, and our accessible location.

 

Other Businesses
 

The location of InfiniTea helps tie in with the competition aspect of the business. Klamath Falls is a fairly small town, and there is only one local Starbucks. It is not within walking distance from the schools, so it is likely that students would much rather visit a coffee shop that is much closer. That is why we chose a location directly across the street from OIT.

 

Even if there were more coffee shop chains around town, many people prefer to support local businesses.

 

Advertisement

 

By hosting music and poetry nights, the performers will advertise to their friends about the shows, this removes a majority of the need for us to advertise on our own. In the same way, artists will invite their friends to come to our shop to see their posted work. Soon we will have enough funds to begin giving back to the community by sponsoring local events, activities, and organizations which will help gain the support of the community.

 

We will also have various promotions throughout the year. An example would be the use of punch cards: buy 10 drinks get the 11th free.

 

 

THE ECONOMY

 

Our economy might not be in the perfect state for instigating new businesses, but we feel certain that if we can acquire the funds to commence InfiniTea, that the community will acknowledge our company and help it to thrive.

 

Community Finances

 

In a community with few coffeehouses, we feel confident that our business will prosper. Almost everyone drinks coffee, and InfiniTea is an affordable, nearby shop that has a lot to offer.

 

Funding

 

A large part of the start-up funds for InfiniTea are coming from the owners of the company and also from angel investors. Still, we must take out a loan to get our business up and running.  BE SPECIFIC: List amount of funds already procured, and name amount requested in the small business loan.

 

 

CONCLUSION

 

InfiniTea aspires to be more than just a coffee shop--we long to come alongside the community of Klamath Falls to help people succeed in what they love to do. We hope that after reading what our business has to offer, you will grant us this loan. Thank you.