The Big Opportunity

The Big Opportunity By: Alex Enriquez, Iviee Li, Corey Pierce

Tim Barry • Frustration turns into millions • Shipped 10,000 seat belt Extenders for $60-$70 a pop • ScaleIt.com and SuperSize World.com • Expected to hit $1 mil in sales Introduction

Americans are fat, and they’re getting fatter • Not just low Income. Urbanites are the ones rising most rapidly. • “Plus – size” population are the new baby boomers • American businesses are rethinking their strategies Large Market Segment

Between 1962 and 1980 – stable growth in average body size: 1/3 pound a year • In 1980, average adult male – 174 pounds, average adult female – 145 pounds • By 2000, 30% of US population is obese (BMI 30 or above) and 34% is overweight (BMI 25 – 29.9)* Accelerating Trend

64% of total population is in the market for plus size merchandise • Fatty food, bigger portions, less cooking at home are factors that contribute to the “growing” trend Accelerating Trend

Most department stores and top retailers paid little attention to larger customers • Lane Bryant became the industry leader in plus size women’s clothing in 2000 • 690 stores and $930 million in sales, acquired by Charming Shoppes in 2001 • Charming Shoppes – 3rd largest specialty retailer • Women wearing size 14 and larger make up more than 50% of the overall market Beyond Weight Loss

Historically oversized markets were very underserved. • Shopping trips use to have the prospects of a needle in a haystack. • Women often would concede to buying oversized men's clothing. • Tedious past experiences have left consumers jaded. • Consumers not as price sensitive. • Something that “fits” feels like a luxury. Loyal Customers

“This business was so underserved for so long”, “A plus-size woman sticks with a brand she likes, and she doesn’t mind paying full price for it” • Barry Zeinman. General Manager Specialty Retail, Elisabeth Stores, Liz Claiborne. Loyal Customers

Companies can now find profitable markets by reengineering existing products for large consumers. • Smart existing companies need to asses market periodically (market research and assessment). • Ex. Furniture, surgical equipment • Insightful and fast entrepreneurs can catch big companies snoozing. • Ex. Toilet seats Product Line Extension

Products or Services must be designed for larger consumers but not seem to be only for them. • Products that reflect too much reality- that it reminds the person that they are overweight- Often Bomb. • Subtlety is Key. Difficulty in Marketing to Obese

Videos: http://www.youtube.com/watch?v=1YntprQzdTo http://youtube.com/watch?v=nPZcCvtB9Wg&feature=related • Cartoon: http://fitnessfanatic.org/blog/weight-loss/nutrition-notes-on-weight-loss-supplements/ • Healthy weight, overweight, and obesity among US adults: http://www.cdc.gov/nchs/data/nhanes/databriefs/adultweight.pdf • Crawford, Krysten (June 5, 2006). The big opportunity. Business 2.0 Magazine, Retrieved Jan 30, 2009, from http://money.cnn.com/magazines/business2/business2_archive/2006/06/01/8378500/index.htm References

The Big Opportunity