Target Market Location
The retail and distribution consultancy venture targets Staten Island, New York City market. Staten Island is among the boroughs experiencing a high immigration flow, with data indicating a 1% increase between 2018 and 2019 (Census Reporter, 2019). The rate of starting entrepreneur ventures in the borough among immigrants is high and expected to rise with the increase in immigration (Census Reporter, 2019).
Such a high population of immigrants, who the venture targets, provides a large market and potential expansion opportunities. The changing demographic in Staten Island also challenges entrepreneurship in such areas as limited and need for more capital, unstable culture, and mismatch between employers and employees (Tseng & Tseng, 2019). Such challenges in entrepreneurship resulting from more demand for new ventures and cultural differences in employment create demand for consultancy services as people seek to overcome entrepreneurial barriers.
Moreover, in the New York City and Staten Island borough, there are many people who can promote entrepreneurs or start a venture creating retail and distribution consultancy opportunities. The borough has wealthy people who can start entrepreneur ventures or become customers of the establishments (Census Reporter, 2019). Therefore, entrepreneurship has more chances of flourishing in Staten Island and influences retail and distribution consultancy businesses’ growth. The high potential to start businesses due to a wealthy population implies more demand for guidance from a consultancy firm with business ideas, leading to a large market for the venture.
Target Demographic
Initially, the business will target minority groups within Staten Island borough and later the larger New York City who are more likely to start entrepreneur ventures and seek consultancy services. The target population will be young immigrant women within the borough. Immigrants have been aggressive in starting businesses in Staten Island and nationwide. According to New American Economy (n.d.), immigrants had a share of 32.5% of all entrepreneur ventures in New York state in 2019. Such aggressiveness implies a potential market to provide retail and distribution consultancy services to immigrants.
The percentage of women running a business in Staten Island borough increased by 27% between 2011-2016 (Bowles, 2016, para 9). Such an increasing rate of starting a business among women provides a promising market for consultancy in the retail and distribution business. On the other hand, young people below 50 constitute a larger percentage than the older ones across New York City and Staten Island. The high population of younger people implies higher chances of starting businesses to become consultancy customers.
Apart from high populations and aggressiveness in starting businesses, minority groups receive more support from other organizations such as financial institutions in their entrepreneurial ventures. Most organizations, such as Capital One’s Future Edge, have realized the role of minority people such as women in economic growth, leading to different support to start businesses (Bowles, 2016). However, the minorities require more support in ideas and direction to get such organizations to assist. The increasing help of minorities to start new businesses is also raising the number of people who need entrepreneurial consultancy services. Therefore, young immigrant women make up a wealthy customer population for the retail and distribution consultancy business.
Market Competitors
Among the retail and distribution consultancy business competitors within Staten Island is Dun & Bradstreet and AVP Consulting Services. Dun & Bradstreet and AVP are data mining and analyzing companies that help businesses make vital decisions such as competition and market penetration (AVP, n.d.). Other consultancy companies in the market include Deloitte Consulting LLP and McKinsey & Company, which offer additional accounting and business management services.
The four competitors’ strength lies in their brand names, where some of them, like Deloitte Consulting LLP and McKinsey, are international. Such a firm brand name provides high competition for the proposed venture. The companies also offer a wide range of business consultancy, including management, accounting, and data analysis. A wide range of products promises sustainability to entrepreneurs who seek consultancy services from the companies, which is an essential consideration in entrepreneurship (Tur-Porcar et al., 2018). Therefore, the companies are competitive due to their ability to provide more and quality services that assure sustainability.
On the other hand, Dun & Bradstreet, AVP, Deloitte Consulting LLP, and McKinsey are weak in the competition following many emerging and large constancy firms. The four companies are competitors within their group, creating risk for low-income entities which cannot sustain their offices in different areas. The companies are vulnerable through their large size, making them unable to focus on small and new entrepreneurs. Firms like Deloitte Consulting LLP and McKinsey are large international ventures which pose a threat to small and new entrepreneurs who need consultancy services. The large sizes risk entry and competition from small and medium-size consultancy firms which provide more focus with sufficient follow-up services to their clients.
Market Entry Strategy
The retail and distribution consultancy business will make a physical presence in entering the market while offering high quality, differentiated, and low price services. Most firms in Staten Island are international or originate from other regions lacking local presence. Local presence is a market niche with clients seeking a company that understands their needs (Min et al., 2017). Physical presence, including renting an office and hiring local representatives, is appropriate to appeal to locals on a new venture with a different perspective to their solutions. The local representatives will attract clients due to association with one of their own and trust.
Moreover, the ventures target a different and unique population that will hardly discriminate the services with large firms such as Deloitte. The services’ low price will attract the target market for ease of penetration following their economic needs. Maintaining quality and differentiation while offering services at a low price will increase public acceptance and grow a sizeable market share.
Despite the entry strategy, the market is flooded with consultancy firms with strong brand names. The venture is likely to face a barrier in attracting clients from established firms. Another possible obstacle is compliance with the rules and regulations of operating a consultancy firm (Kose, 2020).
The rules might complicate the process making it hard to start or access support such as financial. There is also the risk of low-quality services and negative ratings from established firms due to a lack of experience and technology. Technology and experience have raised the quality of consultancy services following large data mining and related innovations. The lack of such technology and expertise creates the risk of obtaining low ratings from the public and an inability to penetrate certain areas.
Marketing/Advertising Needs
The venture requires an emotional appeal advertising following the business entry strategy and overcoming the flooded market. A new firm that assures unique consultancy services will attract the target population who feels that the large companies cannot appropriately handle their needs. The venture is unique in its problem-solving approach, which is effectuation. Such a strategy is more rational and goal-driven to impart optimistic promises to clients (Reymen et al., 2016).
Moreover, the venture will provide low price services with a local approach. Marketing such unique positioning is an assurance of better entrepreneurial outcomes where customers seek the services. The target population, which is the minority groups, seeks cheaper products that address their local needs. Advertising the company as local responsive will enhance its brand leading to acceptance in the market.
References
AVP (n.d.). Consulting & professional services. AVP. Web.
Bowles, J. (2016). Opportunities for women entrepreneurs in New York City. New York City Future. Web.
Census Reporter (2019). Staten Island borough, Richmond County, NY. Census Reporter. Web.
Köse, E. (2020). Chapter 2 comparison of Turkish and American entrepreneurship cultures in the cultural axis of entrepreneurship. In E. Köse (1st ed.), Management Studies (pp. 11-26). Akademisyen Publishing House.
Min, S., Kim, N., & Zhan, G. (2017). The impact of market size on new market entry: A contingency approach. European Journal of Marketing, 51(1), 2-22. Web.
New American Economy (n.d). Entrepreneurship. New American Economy. Web.
Reymen, I., Berends, H., Oudehand, R., & Stultiëns, R. (2016). Decision making for business model development: A process study of effectuation and causation in new technology-based ventures. R&D Management, 47(4), 595−606. Web.
Tseng, C., & Tseng, C. (2019). Entrepreneurship is a key resolution for declining business dynamism. Journal of Applied Business and Economics, 21(3), 114. Web.
Tur-Porcar, A., Roig-Tierno, N., & Llorca Mestre, A. (2018). Factors affecting entrepreneurship and business sustainability. Sustainability, 10(2), 452. Web.