Burts Bee

In: Other Topics

Submitted By aminaleman
Words 626
Pages 3
Executive Summary

lndustry Overview
The college bookstore market can be divided into two major segments, four-year traditional schools and two-year non-traditional community, technical and junior colleges. In total 14 million students will enroll in these 4500 institutions this year, and this number is estimated to grow to 16 million over the next ten years. It is also estimated that $90 billion represents college student spending, and of that 23% is non-essential. Students at four-year schools are insulated in avery enclosed environmen! typically attend full-time and attend from age 18-22. Students at two-year schools typically attend part-time, commute to school and are 29 years in age on average. Each type of school represents 50Yo of the college bookstore market. Buyers

will use reps and distributors as well as buy from a company direct. Reps commissions are l0-l5Yo, they are the most frequently used form of distribution and best way to atfract

attention to a new product. Mark-ups typically range from 20%-50%. The buying cycles revolve around the major quarters, semesters or trimesters.

Key Trends & Attitudes
Recently, college bookstores have been faced with a substantial increase in outside competitive forces i.e. school supplies and computer outlet stores. In an attempt to compensate, many stores are moving towards a one-stop-shopping approach. Items such as Starbucks, designer clothes and Clinique cosmetics have begun to appear in stores nationally. This provides significant opportunities for new product categories to enter the market. Thidy percent of the college bookstores are managed by a handful of private institutions and this is estimated to increase at a rate of 3-5%o annually. For a vendor to sell within these stores they must fnst receive corporate approval. A vendor may enter the college bookstore market without having already received…...

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