4.0 Market Analysis

Skyworld is faced with the exciting opportunity of being the first-mover in the Birninyero cyber-cafe market. The consistent popularity of coffee, combined with the growing interest in the Internet, has been proven to be a winning concept in other markets and will produce the same results in Birninyero.

Market Analysis
		Year 1	Year 2	Year 3	Year 4	Year 5
Potential Customers	Growth						CAGR
University Students	4%	15,000	15,600	16,224	16,873	17,548	4.00%
Office Workers	3%	25,000	25,750	26,523	27,319	28,139	3.00%
Seniors	5%	18,500	19,425	20,396	21,416	22,487	5.00%
Teenagers	2%	12,500	12,750	13,005	13,265	13,530	2.00%
Other	0%	25,000	25,000	25,000	25,000	25,000	0.00%
Total	2.68%	96,000	98,525	101,148	103,873	106,704	2.68%

4.1 Target market

Skyworld intends to cater to people who want a guided tour on their first spin around the Internet and to experienced users eager to indulge their passion for computers in a social setting. Furthermore, Skyworld will be a magnet for local and travelling professionals who desire to work or check their email messages in a friendly atmosphere. These professionals will either use Skyworld's PCs, or plug their notebooks into Internet connections. Skyworld's target market covers a wide range of ages: from members of Generation X who grew up surrounded by computers, to Baby Boomers who have come to the realization that people today cannot afford to ignore computers.

2. .1 Competitors

• The major competitors in the retail coffee segment are Cafe Pap and Coffee Corner which are located in the city, and target a similar segment to Café 711(i.e. educated, upwardly-mobile students and business people).

• Competition from online service providers comes from locally-owned businesses as well as national firms. They are Infocom Nigeria and Nigeria online.

4.2.2 Competitiveness

• Skyworld will be the first Internet cafe in Birninyero. Skyworld will differentiate itself from the strictly-coffee cafes in Birninyero by providing its customers with Internet and computing services.

• Competitive edge; achieve a competitive advantage in the cafe market by providing Internet service, providing a comfortable environment with coffee and bakery items, making the prices affordable distinguishing itself from other Internet providers in Birninyero, Nigeria.