The Big Opportunity

The Big Opportunity By:Ashley DelinkoKazu 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 He discovered there was a shortage of

seatbelt extenders

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

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

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

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

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)

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

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

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

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

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?