Market Analysis SummaryThe Market Analysis looks at potential customers and potential business. Hisarlik Hardware explored the market segments, their needs, and did a marketing analysis.The need for this venture was looked at first. Does downtown need a hardware store? The answer was a resounding yes.Once the need was established, Hisarlik needed to analyze the make up of its customers, who and how many. Who is the potential customer? How many potential customers are there?Once it was determined that there was a need and who the customer is, the next step was to figure out how to make them Hisarlik Hardware customers. How to get the potential customer in the store?
4.1 Market SegmentationThere are six major market segments:. Downtown Residents: Downtown Residents will make up as much as 40% of the potential business of the store.
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This is an ever growing and expanding group. Downtown Resident levels are at an all-time high. There are also major projects like the former Cressida Agora site and the Troilus Townhomes in downtown Wilusa that will increase the numbers of residents. Wilusa Downtown, Inc. estimates there are currently 615 new residential units currently in the pipeline.
In addition, 91 renovation permits were issued last year on existing downtown residential structures. Property Managers: Every residential building and every commercial building downtown has a property manager that keep the properties in good repair.
These property managers all need supplies and materials that are conveniently available. These managers will be able to rely on Hisarlik Hardware to stock what they need. Hisarlik feels the store will prove to be a quick, easy, and convenient way to fulfill the needs of these property managers. Hisarlik and Building Blocks both feel paint and paint supplies will be a big percentage of what these property managers will buy.
The City of Wilusa estimated there was $18.0 million in paint and wallpaper Retail Sales in 2002 (within a three mile radius of the proposed location). Contractors: As stated earlier, there were 91 renovation permits and 615 new residential units under construction in the last year. The new residential units represented $261 million investment in downtown. Hisarlik Hardware will work to become a reliable supplier to these contractors working in the area.
We will also open early in the morning to help supply and be a convenient source for the contractors who start work early each day. Downtown Business: Every downtown business will need supplies from time to time. The City of Wilusa states there are 2,861 businesses located within one mile of the proposed location. As of the time of opening the focus will be to sell this group traditional retail hardware supplies. As the business is established, Hisarlik will work to develop the Commercial Supply Network for these businesses. Suburban Commuters: Since the proposed location is on a major Eastbound thoroughfare (E.
Anglia Street) out of the downtown, the potential is encouraging for Suburban Commuters to stop on their lunch hour or on their way home from work. Research tells us that these commuters will be in search of good service and convenient shopping, things they may not find in their suburban neighborhoods. Commercial Sales: This could be the largest growth area of business that Hisarlik Hardware will have. As Hisarlik develops a positive reputation, there will be a push to activate the MRO ( Building Blocks' commercial and industrial supply network). Once again with so many businesses located downtown there is an infinite amount of business. There are also a large number of Federal, State and Local government entities located downtown.
These is also one major university and several major hospitals within two miles of the proposed location. Market AnalysisYear 1Year 2Year 3Year 4Year 5Potential CustomersGrowthCAGRDowntown Residents0%450,050,050,0000.00%Property Managers0%297,097,097,0000.00%Contractors0%255,055,055,0000.00%Downtown Businesses0%180,080,080,0000.00%Suburban Commuters0%110,010,010,0000.00%Commercial Sales0%38,8,8,9300.00%Total0.00%1,330,9301,330,9301,330,9301,330,9301,330,9300.00%.