Alice Wood is concerned. She has worked in a women s clothing store for several years...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Alice Wood is concerned. She has worked in a women s clothing store for several years and is now considering opening a store of her own. Her investigations have yielded considerable secondary information, but she is not sure how to go about estimating the potential for another women s clothing store in Prince George, British Columbia. Prince George is a city of 86,100 surrounded by a large trading area. It currently has 17 clothing stores and five department stores that retail women s clothing. During the past few years, Alice has been saving her money and learning all she could so that her Petite Shop women s wear store will be a success. In anticipation of starting her own store, Alice enrolled in a small business management course at a local college. The instructor stressed the importance of market research and mentioned several sources of secondary information that could assist in determining market potential for a new business. Alice obtained the reports she felt were relevant to her prospective business from the Provincial Department of Small Business, Statistics Canada, and the city hall in Prince George. This information is presented in Tables 1 and 2. TABLE 1 Population Number of families Per capita income Retail sales Per family expenditure on women s clothing Selected Data for the City of Prince George TABLE 2 Food stores Apparel stores: Sources: Financial Post Canadian Markets and Urban Family Expenditure Report and Market Research Handbook, 2009, Statistics Canada. Estimated Retail Space for Selected Retail Establishments (in square feet) City of Prince George 86,100 29,200 15,000 $737,700,000 Men s clothing stores Women s clothing stores Hardware stores Department stores $ 1,000 1,200,000 145,000 180,000 600,000 1,650,000 Now that Alice has this information, however, she is not sure how to proceed. She does not want to retail all kinds of ladies clothing, but plans to cater to the petite woman who wears dress sizes 3 to 9. Alice herself is petite (at 5 feet or 1.5 metres tall), and she feels she understands the difficulties women of her size have in shopping for clothing. From her retailing experience, she estimates that about 60 percent of all clothing sales are in women s clothing, and 20 percent of all women fit in the size 3 to 9 category. She arrived at her decision to select a store directed at the petite woman after she visited all 17 clothing stores in Prince George and the clothing departments of the city s five department stores. She estimates that only about 10 percent of clothing stores stock is sized 3 to 9, and the five department stores devote only about 6500 square feet of selling space to this size range. She believes a small shop of about 1000 square feet could provide a much better selection to this market than those outlets presently provide. Questions 1. Using the information provided, prepare an estimate of the market potential for the target market at which Alice Wood is aiming. 2. What portion of this market potential could Alice expect for Petite Shop s market share? 3. What nonquantitative considerations should be brought into this analysis? Alice Wood is concerned. She has worked in a women s clothing store for several years and is now considering opening a store of her own. Her investigations have yielded considerable secondary information, but she is not sure how to go about estimating the potential for another women s clothing store in Prince George, British Columbia. Prince George is a city of 86,100 surrounded by a large trading area. It currently has 17 clothing stores and five department stores that retail women s clothing. During the past few years, Alice has been saving her money and learning all she could so that her Petite Shop women s wear store will be a success. In anticipation of starting her own store, Alice enrolled in a small business management course at a local college. The instructor stressed the importance of market research and mentioned several sources of secondary information that could assist in determining market potential for a new business. Alice obtained the reports she felt were relevant to her prospective business from the Provincial Department of Small Business, Statistics Canada, and the city hall in Prince George. This information is presented in Tables 1 and 2. TABLE 1 Population Number of families Per capita income Retail sales Per family expenditure on women s clothing Selected Data for the City of Prince George TABLE 2 Food stores Apparel stores: Sources: Financial Post Canadian Markets and Urban Family Expenditure Report and Market Research Handbook, 2009, Statistics Canada. Estimated Retail Space for Selected Retail Establishments (in square feet) City of Prince George 86,100 29,200 15,000 $737,700,000 Men s clothing stores Women s clothing stores Hardware stores Department stores $ 1,000 1,200,000 145,000 180,000 600,000 1,650,000 Now that Alice has this information, however, she is not sure how to proceed. She does not want to retail all kinds of ladies clothing, but plans to cater to the petite woman who wears dress sizes 3 to 9. Alice herself is petite (at 5 feet or 1.5 metres tall), and she feels she understands the difficulties women of her size have in shopping for clothing. From her retailing experience, she estimates that about 60 percent of all clothing sales are in women s clothing, and 20 percent of all women fit in the size 3 to 9 category. She arrived at her decision to select a store directed at the petite woman after she visited all 17 clothing stores in Prince George and the clothing departments of the city s five department stores. She estimates that only about 10 percent of clothing stores stock is sized 3 to 9, and the five department stores devote only about 6500 square feet of selling space to this size range. She believes a small shop of about 1000 square feet could provide a much better selection to this market than those outlets presently provide. Questions 1. Using the information provided, prepare an estimate of the market potential for the target market at which Alice Wood is aiming. 2. What portion of this market potential could Alice expect for Petite Shop s market share? 3. What nonquantitative considerations should be brought into this analysis?
Expert Answer:
Answer rating: 100% (QA)
An estimate of the market potential for the target market at which Alice is aiming Alice is targetin... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
Students also viewed these accounting questions
-
How would you go about estimating the current market value of a publically-traded common stock? Would this take more or less time than most real estate appraisals?
-
How would you go about estimating the maximum length of time that a worker should be exposed to a particular heat environment?
-
How would you go about estimating the different probabilities of three alternatives occurring if you have little empirical data on which to base your estimates?
-
The CFO of the Jordan Microscope Corporation intentionally misclassified a downstream transportation expense in the amount of $575,000 as a product cost in an accounting period when the company made...
-
Luisa borrowed to buy a piano for her business, Luisas Music, paying $135 at the end of each month for five years. The bank charges interest on the loan at 8.8% compounded monthly. (a) What was the...
-
Exhibit 15.7 presents a portion of the statement of changes in shareholders equity for Sirens, Inc., for 2013. Prepare journal entries for each of the six listed transactions in Exhibit 15.7....
-
Identify and describe the key attributes that might mitigate a red flag, suggesting that no bad act or compliance issues exist.
-
Danish company Bang & Olufsen (B&O) is known globally for its high-end audio and video. CEO Kalle Hvidt Nielsen says, Our mission is to make complex technology very simple to use. B&O uses contract...
-
One way financial managers evaluate a firm's current financial condition is by computing ratios based on current accounts listed on the firm's financial statements. Financial managers look at four...
-
In this exercise, you modify the Chopkins Toys application from Exercise 11. Use Windows to make a copy of the Chopkins Solution folder. Rename the copy Modified Chopkins Solution. Open the Chopkins...
-
3 Graph the line with slope passing through the point (-5, -2).
-
The following are the Greeks associated with three sets of calls and puts, all on the same stock: Set 3 Set 1 Set 2 c1 p1 c2 p2 c3 p3 A .5 -.5 .7 -.3 .4 -.6 r .02 .02 .01 .01 .03 .03 0 1.0 1.0 2.0...
-
Write a function that takes a binary search tree as input and produces a linked list of the entries, with the entries sorted (smallest entries at the front of the list and largest entries at the...
-
Violet Company's third year's gross profit was 125% of its first year's gross profit. If the gross profit in the third year was $125,000, what was the gross profit of Violet Company in the first year?
-
2. A loan is being amortized by means of level monthly payments at an annual effective interest rate of 10%. The amount of principal repaid in payment number 27 is 1,300 and the amount of principal...
-
Noah was gifted a truck with a value of $500. The accumulated depreciation value was included on the balance sheet, does that mean that the truck itself should be listed as an asset?
-
Part 2: (40 points) 5. Using the specs in Table 1 below configure Router0 & 1, Switch0, Switch 1, and PCs 0 to 3. VLANs should be named as given. The frame tagging protocol to be used is IEEE802.1Q....
-
During registration at Tech every quarter, students in the Department of Management must have their courses approved by the departmental advisor. It takes the advisor an average of 4 minutes...
-
On January 1, 2011, Peanut Company acquired 80% of the common stock of Salt Company for $200,000. On this date, Salt had total owners equity of $200,000, which included retained earnings of $100,000....
-
Patton is considering joining Microtech Enterprises as a partner. The company provides data imaging for a variety of end users. Patton will have to contribute $100,000 of capital upon admission as a...
-
Record the following events of Mental Health Clinic, a VHWO: 1. A contribution of $20,000 was received and is to be used for the purchase of equipment, but not until an addition to the building is...
-
Derive Eq. (13.79). Equation (13.79) Pa 1 (1+K) Mnp Mp-1 k=0 1 (Mnp+k) K k! (Mnp) (1+K,
-
Develop a MATLAB program to calculate the cumulative probability of detection.
-
The sum inside Eq. (13.79) presents a very formidable challenge. It can be, however, computed recursively with relative ease. Develop a recursive algorithm to calculate this sum. Equation (13.79)...
Study smarter with the SolutionInn App