Free Essay

Furniture Retail in Irvine

In: Business and Management

Submitted By gustavopicheki
Words 844
Pages 4
1. Summary

Furniture retail in the United States is a very important aspect for the country's economy. The market size of Furniture and home furnishing stores had expanded from $52.34 billion worth of sales in 1992 to $90.07 in 2011.This is expected to increase to about 96 billion U.S. dollars in 2016. Accordingly, city of Irvine has the brisk demand for purchasing home furnishing. Because there are a lot of university student using furniture in the short term. The research clarifies the possibility for opening a new home furnishing shop. It will take about 7 weeks and costs $36,320.

2. Background

a. Market situation

Industry: Furniture and home furnishing Area: Irvine

“Household” and taxable sales for Home Furnishings and Appliance stores in Irvine

“Sales per store” for taxable sales for Home Furnishings and Appliance stores in Irvine

b. Product

Furniture is a problem to almost every new student that have to move close to university campus. We will open a store nearby UCI campus, which have most new students in the area every quarter. Our shop will provide all kinds of convenience that students should have, by example: easy transportation service, affordable and durable furniture, used furniture, fitting measurement, etc. We will conduct focus groups and surveys to find out where is the right place to open our store, which kind of furniture the students want, which is the right price for our customers, who are our most important competitors and which are the best ways to do promotion with our target. This way we can determine important aspects of our brand, communication, pricing, product line and best location. We want offer the most convenient service for students at an affordable price.

c. Customer We have 231,117 population in our trading area (Irvine). Total market sales are U$ 327,497. Average sales per store are U$ 592.219 per year. Number of students: Almost 30,000 UCI students and 12,000 new students living in campus each year. Irvine have 203,292 households. Average per household spent in furniture: U$1,611 per year. All these information can be found in Appendix C.

d. Competitors Our main competitors around Irvine do not have a strong focus on niche student market. We have 553 competitor stores that sells furniture in Irvine and total market is U$ 327,497. One of our competitors have a strong brand awareness but through research we can determine if our target is more concerned about brand awareness or convenient service and affordable price.

e. SWOT analysis

|Strengths |Weaknesses |
|- Competitive pricing |- No brand awareness |
|- Focus on students |- Hard to stay up to date with new trends |
|- Delivery options |- No proprietary products |
|- Relationship with students (buy and sell) |- Hardly any customization |
|- Durable furniture |- Small variety of products |
|Opportunities |Threats |
|- High volume of students every quarter |- Strong competitors |
|- No competitor with focus in students |- Change in tastes |
|- Short term used furniture |- Mature market |
|- Niche student market |- Tied to volume of new students in UCI |
|- Growing market |-Economical uncertainty |

3. Objective Every year 12,000 of new UCI students moves to Irvine. A large portion of these students needs furniture. Our company is planning to focus on furniture for students. However, we need to analyze if it is a good niche market. We need to determine how big will be our trade area and find the best locations for our store. In addition, we need to know how much money is spent per household and how much are the sales of furniture in general in Irvine. Another important aspects of our research is to determine buying habits, purchasing motivation, pricing, which kinds of product are the best options to our clients, which will be the most effective ways to do promotion and what are our most important competitors.

4. Research Approach

Task 1: Secondary data

• Demographic data for Irvine • Market research data for Furniture and home furnishing in Irvine

Task 2: Focus group

The objective of conducting focus group discussions is to reach out to your potential users for feedback and comment. This effective method helps to improve some specific product or service during the development of strategic plans. The focus groups will be conducted with Students who are university student and host father (or host mother) in Irvine area.

Task 3: Intercept Survey

We suggest do the intercept survey for student at UC Irvine. Objective of this survey is to know the customer needs and sell the products in a manner that is appropriate and effective. **** The sample size is needed 500students. 5% of margin of error this survey. We will research by 5 people 2week***

5. Time and cost
1. Time line

| |

|Task |Hours |Cost |Comments |
| |
|Initial Meeting |
|Administration |
|Client Interview |
|Analysis |
|Project. Admin |
|Interviewing |

Analysis |4 |4 |0 |4 |2 |$180 |$260 |0 |$500 |$350 | | |Report Prep |4 |4 |0 |4 |2 |$180 |$260 |0 |$500 |$350 | | |Subtotal |332 |26 |36 |22 |16 |$14,940 |$1,690 |$3,240 |$2,750 |$2,800 |$25,420 | |

6. Technical Appendix ➢ Focus group subscript ➢ Survey Questionnaire ➢ Secondary data…...

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