Please read the mini case and answer the following questions:

Monkey Joe$$s Franchise Opportunity:

Your friend Bob is planning to start a Monkey Joe$$s Franchise in the El Paso city, TX or Lubbock City, TX$.$ Knowing your expertise in market research he has reached out to you to seek more information about the market potential in both these markets.

He has shared the following information with you.

Question $1$: Do a preliminary search and describe Monkey Joes business. Define the products or services it offers and its target market. $($Less than $100$ Words$)(20$ Points$)$

Question $2$: Identify $1$ existing business in El Paso, TX and $1$ existing business in Lubbock City, TX that has operated in the last two years that you believe are direct competition to Monkey Joes. $(1$ existing business in El Paso and $1$ existing business in Lubbock City$)(20$ Points$)$

Question $3$: Go to census.gov. You will see a link to Quick Facts about local data. Search the links on El Paso to find out $(20$ Points$)$

$1.$ Population estimates for El Paso as of July $1,2022.$

$2.$ Population estimates for Lubbock as of July $1,2022.$

$3.$ Total number of persons in El Paso under $5$ years.

$4.$ Total number of persons in Lubbock under $5$ years.

$5.$ Total number of persons in El Paso between $5-18$ years

$6.$ Total number of persons in Lubbock between $5-18$ years

$7.$ Median Household income in $2021$ dollars for El Paso.

$8.$ Median Household income in $2021$ dollars for Lubbock.

$9.$ Total persons in poverty in El Paso City

$10.$ Total persons in poverty in Lubbock City

Question $4$: Please estimate the annual market potential for El Paso City and Lubbock city using the above information and the following assumptions. $(40$ Points$)$

Assumption $1$: Assume that kids under $5$ years old visit on average $5$ times a year and spend $$15$ on each visit.

Assumption $2$: Kids $5-12$ years old visit on average $3$ times a year and spend $$30$ on each visit.

Assumption $3$: Number of Kids between $5-12$ years is half of number of kids between $5-18$ years. For example, if there are $24,000$ kids between $5-18$ years then number of kids between $5-12$ years old is $0\mathrm{.}5$ X $24,000=12,000.$

Assumption $4$: Please exclude the kids from families in poverty in your market. For example, if there are $10,000$ kids below $5$ years and $12,000$ kids between $5-12$ years and the poverty rate is $10\%.$

$$ Then your target market for kids under $5$ years is $(1-0\mathrm{.}1)$ X $10,000=9000.$

$$ Then target market for kids between $5-12$ years old is $(1-0\mathrm{.}1)$ X $12,000=10,800.$

Based on the above assumptions and using the number of kids under $5$ years, kids between $5-18$ years, $\%$ of poverty in El Paso City and Lubbock City, please estimate the annual market potential for $(1)$ El Paso City and $(2)$ Lubbock City.

You can follow the following steps to answer question $4.$

You need to find the annual market potential $($in $s$)$ for Monkey Joes in El Paso and Lubbock city.

Step $1$: Identify the target segments $($two target segments, kids under $5$ years old, kids $5-12$ years old$).$

Step $2$: For each city, identify the number of kids in each target segment for each city. $($kids under $5$ can be directly obtained from census website, from census data obtain kids in the age range of $5-18$ years, use assumption #$3$ to determine number of kids in $5-12$ years range.$)$

Step $3$: For each city, each target segment excludes the number of kids in poverty. $($p$=\%$ in poverty can be obtained from census data, $(1-$p$)*$ number of kids under $5$ will give you the addressable market for kids under $5$ years in a specific city$)$

Step $4$: After obtaining the addressable size of each target segment, calculate the market potential using assumptions #$1$ and #$2.$ For example, if El Paso has $$a$$ number of addressable kids under $5$ years of age. Then the market potential for under $5$ years old segment is a X $5$ X $$15($see assumption $1).$ If El Paso has $$b$$ number of addressable kids in $5-12$ years of age, then the market potential for $5-12$ years old segment is b X $3$ X $$30($see assumption $2).$ The total market potential for El Paso will be the sum of these two values.