It is significant that, in great part because of the earlier out-migration of families, there are only two family child care providers in the area (both more than fifteen miles from the center of Big Acre) and no larger day care centers. The two family providers operate at capacity for infant, toddler, and pre-school children. The local council of churches has plans for creation of a larger child care center but those plans are still in the fund raising stage and are not expected to be able to be implemented for at least three calendar years. In January of 2017, Blue Sky undertook to advertise its intended opening in June 2017 using a variety of print media and personal contacts. This resulted in pre-enrollment statements of interest from 8 parents for 8 children (80 percent of licensed capacity). To date the parents of 6 children have provided Blue Sky with a pre-enrollment deposit. Blue Sky believes that the combination of location and program will enable it to be at licensed capacity at or very close to opening. While there will be future marketing efforts in formal print media (brochures and program descriptions) Blue Sky expects that word-of-mouth and reputation effect will have the effect of sustaining enrollment at licensed capacity. Note how much information is contained in these four short paragraphs: • The geographic area to be served ; • The extent of the market in reaction to growth; • The causes of growth; • The expected duration of this level of demand; • The segment of the market that Blue Sky seeks to serve; • The number and kind of incumbent competitors and their competitive disadvantage in being fifteen miles away; • The timing of any future competitive entry; • The extent of pre-opening marketing and its success; • The status of Blue Sky as a major market incumbent for the immediate future.
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