identify demographics and geographics
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Scenario
You have decided to develop a business that concentrates on importing fair-trade world goods for sale in retail mall outlets in several different American cities (Detroit, Philadelphia, Seattle, Las Vegas, Atlanta, and Dallas). The theme you have selected is, "A Small World." Because of the nature of this business, you will need to investigate world economic trends and theories, as your products will come from many different countries and cultures. Your product line will be primarily décor items, some small furniture, small gifts, and bric-a-brac items. The stores will be relatively small (about 4,500 square feet) and packed with items, so that there is a lot for potential customers to see and touch. You will also offer free coffee samples for shoppers (and may also decide to sell some), but coffee will likely be your only consumable product. The outlet stores will follow regular mall hours and because of the parking provided at the malls, parking should not be an issue.
The malls usually have high foot-traffic, so the potential for a lot of impulse buyers is high. This is good, because you will likely have little money for advertising. You are unsure about product mix and about the range of products. You have also thought about adding a sales Web site and perhaps selling home décor products to other retailers, such as Target, J.C. Penney, and Sears.
Based on the above scenario:
1. Research and identify demographics and geographics.
2. Describe the competition sources and types.
3. Calculate the size and trends of the market
4. Select an appropriate structure for the buseinss, matched to its specific needs, market, and surrounding cultures (see organizaitonal theory about this issue).
5. Provide a description of the structure and explain how the structure is strategically and appropriately matched to your business's specific needs. For example, will your company be organized by product line? by geography? By functional area? Will it be a flat organization or a tall one? How will the stores be managed.
6. How will the stores be related to company management?
7. Describe how your market analysis influences the organizational structure you chose, your decision-making, and value creation for the organization.
8. Describe how your business will reflect the various economic theories, strategies, trends, and practices for domestic and global environment. How will your business be influenced by these factors?
Please cite sources.
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Solution Summary
1. Research and identify demographics and geographics.
2. Describe the competition sources and types.
3. Calculate the size and trends of the market
Solution Preview
1. Research and identify demographics and geographics.
The company will target customers in all major cities and towns across the United States as the product mix will appeal to customers across the nation. The target customers will be primarily women who usually purchase lifestyle items for their homes. The company will also target men who are interested in lifestyle products and make purchases for their homes or offices. The company will target customers from middle to upper-middle or higher income levels for their stores. For the gift products, the company will also target unmarried or younger men and women as well. Hence, the target population will be quite broad due to a wide range of products.
2. Describe the competition sources and types.
The organization will compete with both larger nationwide retailers such as Walmart, Home Depot, Target, JC Penny, Pier 1 Imports, etc, as well as smaller local retailers in different locations across the country that are engaged in selling lifestyle, gift and furniture related products. As the product mix of the company is wide, it will deal with competitors in different product segments. However, companies like Pier 1 imports that specialize in foreign products will be the main competitors. The company will also compete with numerous online retailers that sell such lifestyle products.
3. Calculate the size and trends of the market
The total retail sales in USA was close to 4.7 trillion in 2011 (reference: http://retailindustry.about.com/od/statisticsresearch/p/retailindustry.htm), which was more than 8% growth over 2010 sales, which clearly depicts the recovery from recent recessionary times as well as the huge size of retail industry in USA. Hence, the market opportunity for retailing is huge in USA. As the company deals in wide range of lifestyle products, the total market opportunity is huge. Further, in terms of trends, retail sales are picking up again in USA. Further, consumers are not only looking for wider range of ...
Education
- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
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