4.1 Market Segmentation
Young Professionals-- We appeal to single adults and young couples seeking to interact through the social arts and socializing. Young professional customers will range in age from 21 to 51. The venue will appeal to this category by switching the tempo and entertainment to be more appealing to adults as it gets later into the evening. A new 120-unit residential building is under construction directly across the street from the venue, expected to open in Summer 2004. Additional housing developments are undergoing construction throughout the downtown vicinity. This increased population will provide greater foot traffic in the area.
College Students--By creating an environment that is appealing to college students, we secure a natural progression between the high school student and the young professional. The venue is in close proximity to UC Santa Cruz, Cabrillo College, and CSU Monterey Bay.
Tourists and Business Travelers--More and more business travelers and tourists visit the Santa Cruz area every year. We plan to reach these people through direct marketing to local hotel patrons. Tourism generates $513 million in Santa Cruz County every year. The venue is located in the heart of downtown Santa Cruz. The Santa Cruz Boardwalk is one mile away.
Senior Citizens--10% of the Santa Cruz County population is represented by senior citizens. Music events, swing dancing, and course offerings will be scheduled during the early afternoon hours, appealing to the senior citizen population.
The following chart and table outline the target market segments for the venue, including annual growth projections, which we estimate at 2%. We conservatively estimate our target population at 200,000 people. Our sales projections are based on a percentage of this target population.
Company Summary