Bumper Buddy

...

Bumper Buddy would tend to skew male in terms of gender segmentation. Although women certainly have the same desire for status, it is more likely to be men that place such status in a car’s appearance. Men also tend to be more aggressive drivers, and would be more likely to need protection from minor bumps resulting from reckless driving techniques.

Our product’s income segment would include those making $50k – $200k per year. The rationale behind this range was that those consumers making less than $50,000 would not tend to drive expensive vehicles or work in a job where status symbols would be as important. Likewise, those making over $200,000/year would own cars that would typically not be parked on city streets or congested areas. Following that train of logic, our product would appeal to consumers in the middle class to lower upper class, as their incomes would most closely match our income segment target. In addition, the Bumper Buddy appeals to the economy-oriented customer, who is looking for an inexpensive, yet effective way to prevent costly repairs from minor collisions. Our middle class to lower upper class customers would be attracted to the product’s economic value.

Our product would also target those who have families, especially those with younger children. The rationale behind this family life cycle segment would be that parents of younger kids would be interested in products that promote safety on the road. Young parents with children in car seats would be a particular target market, as any minor bump could easily cause new parents to worry about the lasting effects on their child. Therefore, the product is also geared to psychographic segment of the safety-oriented parent, for whom protection is paramount.

Finally, our product would appeal to automobile enthusiasts (aka gearheads), who, regardless of other demographic variables such as income, age, race, or social class, value the appearance of one’s car as an extension of their self-image. Those who consider themselves “car buffs” would seek out products that would aim to keep their vehicles in pristine condition. This segment transcends these other categories because car enthusiasts can be found across the spectrum of automobile ownership (from economy cars to luxury cars to sports cars). Therefore, the readiness stage for our product could come from the informed interested (seeking out the product to solve the problem of minor nicks while parking) to the unaware (those shopping in auto parts stores for other items and come across the Bumper Buddy).

In terms of anticipated growth and revenue opportunities, I see Bumper Buddy expanding from its original markets or larger urban centers (500k+) to small-to-medium sized cities (75k+). Although these smaller markets would not entail the same degree of hazard as driving/parking in larger cities, there are nevertheless circumstances where street parking is common, even in municipalities that are relatively small (i.e. college towns, sporting events, etc.)

IV. COMPETITIVE ANALYSIS

The market we are entering has a few competitors, but none that offer the exact product we want to bring to market. The two key players in the bumper protection market for the Bumper Buddy are “Bumper Bully” (www.bumperbully.com) and “BumpTek” (www.bumptek.com). After visiting auto parts stores and browsing the online marketplace, these two products stood out as the current industry leaders in bumper protection.

Bumper Bully

- Strengths

- Most visible competitor currently in marketplace

- Guards entire rear bumper

- Theft-proof technology, all-weather, safety reflectors

- Slick, professional website

- Weaknesses

- Much larger than Bumper Buddy (measures 48” x 12”)

- Cumbersome, heavy, and requires frequent handling

- Unsightly when parked (see Figure 1)

- Only protects rear bumper, not designed for front bumper

BumpTek

- Strengths

- Protects corners of car

- Sleek design blends well with car (see Figure 2)

- One-time installation, no handling for use

- Universal, fits any vehicle

- Weaknesses

- Only designed to protect corners on front bumper

- Requires careful installation for spacing, symmetry, etc.

- Permanent, not able to remove (without damage)

- Cannot be transferred to a new vehicle

Product Comparisons and Market Share Analysis

Bumper Buddy nicely fits a niche with the competitor’s products. First, both Bumper Bully and BumpTek guard different areas on the car (rear bumper, corners) than our product (front bumper). The flexibility of our product also sets it apart from these two. It is a one-time installation (rather than the frequent handling of Bumper Bully) and transferable to any vehicle’s license plate holder (rather than permanently attached by glue, as with BumpTek). Its small, sleek design is certainly more visually appealing than Bumper Bully’s large, ungainly appearance. In addition, our product involves easy installation without the measuring and application required by BumpTek. Therefore, our target market will differentiate our product by its small, sleek design, easy installation, transferability, and front bumper protection.

From available online data, it would appear that these two products comprise the majority of the current market share. Although there is no specific data on how many units they have sold, Bumper Bully claims to be the #1 offering in bumper protection in New York City (where they are based). In addition, it appears to also be offered in stores like Sears. BumpTek, which owns a similar market share for corner protection, claims to be Europe’s #1 bumper guard, and is also available through their website and at Sears. Since neither of these products is made by a publically-traded company, their financials are not readily available. However, after searching through automotive blogs and websites, it appears that the current options