Silva runs SST programs. Most of his customers are 10-13 years old and enroll in two to three SST programs per year. He has also run a few summer camps in Boulder and Northglenn; both are about 50 miles from Fort Collins. These have been successful but currently are limited.

There are several small cities within 25 miles of Fort Collins. Loveland, a city of about 70,000, borders Fort Collins on the south. Greeley and Longmont, each with about 100,000 people are about 25 miles away by interstate highway. These areas have very limited soccer training programs except for their competitive high school teams, and awareness of SST is low. Those who have heard of SST are often not familiar with its philosophy and programs. Silva is not sure if parents in these communities would be willing to drive their kids to Fort Collins for training. If not, he would have to run his programs there. Silver knows that he wants to grow his business but wonders how we can accomplish this goal. He currently sees a few options:

1. His current customer retention rate among kids 10-13 is pretty high: about 80 percent. However, when the kids reach 14 or 15, other high school sports and activities make these kids less interested in extra soccer training. One option is to try to increase retention of his current customers by developing programs targeted at kids over 14.

2. Another option is to encourage his current target customers ages 10-13 to buy more, increasing the profit per customer

3. The owner could try to grow the business through by targeting new markets and acquiring new customers market development. His market penetration with kids 6 to 9 years old is very small. He might develop new programs to better meet the needs of and attract kids of this age.

4. Another market development option is geographic expansion. He could serve more kids from the neighboring towns.

I have to list 2 advantages and disadvantages about each scenario demonstrating understanding of marketing perspectives!