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The Big Opportunity

The Big Opportunity . By: Ashley Delinko Kazu Ogami. Background Information . Tim Berry: 55 yr old management consultant who traveled Issue faced: not enough seatbelt for Tim Decided to to make his own travel kit with seatbelt extenders

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The Big Opportunity

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  1. The Big Opportunity By: Ashley Delinko KazuOgami

  2. Background Information • Tim Berry: • 55 yr old management consultant who traveled • Issue faced: not enough seatbelt for Tim • Decided to to make his own travel kit with seatbelt extenders • He discovered there was a shortage of seatbelt extenders

  3. Extend-its.com • Launch a retail site • Small warehouse located in Vancouver, Washington • Has shipped: • 10,000 Belt Extenders • Sold for $60 to $70 • Lead to two other retail sites

  4. Entrepreneurial Opportunities • Supersizeworld.com • Sclae-it.com • $20 hangerzillas holds coats up to 100 lbs • High capacity scales • Plush bath towels (sold $60) • Expected to hit $1 M in sales in 2006 • 2 employees • Only advertisements on Google

  5. Market Segment • In 2006, 60 million Americans qualify as obese • Expected by 2013: 78 million Americans • Has caused $49 billion weight loss industry • Weight loss industry was narrowly targeted • Corporate America driven a larger segment for this industry • Obese trend has an affect on consumer goods

  6. Retailers have reacted • Toyota Rav4 • 3 inches wider • Jessica Simpson • Big bottom jeans • Tommy Hilfiger & Ralph Lauren • Plus size lines • Size acceptance night clubs in urban areas

  7. Accelerating trend • In 1980, the average weight of Americans • 174 pounds (male) • 145 pounds (female) • Today, nearly a third of adult men and more than a third of adult women are considered obese • 205 pounds (male) • 175 pounds (female)

  8. Pioneers in This Industry • Lane Bryant • expanded its clothing chains to more than 690 stores and $940 million in sales • Plus-size women make up more than half of the overall market • Torrid • Sold Baby Phat tube tops and Hot Kiss gaucho pants to large women • Revenue growth to more than $70 million

  9. Loyal Customers • The prize for retailers isn’t just increased sales, but also customer loyalty • Barry Zelman (general manager of specialty retail) • A plus-size woman sticks with a brand she likes, and does not mind paying full price for it • Loyalty expands beyond clothes • Chairs, spas, restaurants, and couches

  10. Product Line Extension • Brayton International • Sold waiting-room chairs designed for bigger people in 2003 • 2.9 billion in annual revenue • A small plumbing manufacture in LA • Designed the Big John Toilet Seat, a 19-inch throne made of reinforced plastic • Demand has doubled over the last six months

  11. Product Line Extension • Design bigger products without advertising them or talking about them • Toyota Rav4 mini SUV • Some businesses remain reluctant to make to to make themselves more fat-friendly • Southwest Airlines • Julio Rincon

  12. Discussion Questions • What are the potential risks of expanding product lines to taylor to the growing market of plus size Americans? • What are the potential advantages? • Should companies support the trend of growing plus size Americans?

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