This paper outlines the target market analysis, competitive landscape, and integrated marketing communications (IMC) strategy for an online arts and crafts supplies e-business. It identifies three consumer segments within the hobby crafts industry — dedicated hobbyists, cost-motivated DIYers, and craft entrepreneurs — and examines how demographic shifts and economic conditions have expanded this market. The paper then analyzes major competitors, including Michaels, Joann Fabrics, and Hobby Lobby, before proposing a differentiation-focused IMC approach designed to capture dedicated hobbyists who are underserved by large retail superstores.
The target market for this online business is the Do-It-Yourself arts and crafts supplies industry, commonly known as the Hobby Craft Industry. This sector encompasses a wide range of creative pursuits — from knitting and sewing to jewelry-making and floral arrangement — and serves consumers whose motivations range from personal passion to economic necessity.
The hobby craft market grew 11% in 2011, despite overall stagnation in consumer spending during the same year (SEC Form S-1, p. 1). This expansion was driven by two converging forces: the economic downturn and demographic shifts in the market. Hobby crafts were previously the exclusive domain of middle-aged and older women. However, young adults — male and female — have taken up crafts such as knitting as a result of political movements emphasizing sustainable production, as well as pop culture trends that celebrate, often in an ironic manner, vintage or handmade goods over mass-produced alternatives.
The hobby craft market is traditionally perceived as a leisure industry, with the hobby aspect serving as the main driver of consumer behavior. Hobbyists form the core of the crafts supplies market. Although they are typically focused on one particular craft, they are likely to experiment as they acquire new skills and therefore require both depth and variety within their narrow range of supplies. Hobbyists typically possess solid skill in making crafts and prior experience finding and purchasing the supplies they need.
As a result of the recent economic downturn, the hobby craft market has also been expanded by consumers wishing to save money on goods they would ordinarily purchase from a retailer. Such consumers substitute self-made crafts for non-necessity or luxury items such as hats, scarves, or jewelry. Because they take up crafts more out of economic necessity than natural interest, they typically possess less skill than dedicated hobbyists and are less experienced in sourcing supplies. These consumers are primarily concerned with cost and coverage, requiring introductory-level supplies across a broad range of crafts.
Finally, there are those who have turned their hobby into a business. These individuals typically begin by making crafts for friends and family and later start selling to a wider audience through word-of-mouth. They tend to buy in large quantities and know exactly what they are looking for, making cost their primary concern rather than selection. Because online retail enables fast and simple price comparison, these consumers may switch retailers for even small price differences.
The primary competitors for this online crafts business are Michaels Fabrics, Joann Fabrics, and Hobby Lobby — including both their brick-and-mortar and online operations.
"Superstore brand strategy, history, and differentiation attempts"
"Brand image, hobbyist targeting, and promotional channels"
"Ad messaging focused on individualism and craft depth"
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