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Recommendation for the Location for Maigue-Pascua’s RTW’s Expansion Essay

This document is to suggest the appropriate property to hold the expansion of Maigue-Pascua’s RTW. After their second bi-monthly meeting for this year, owners decided to pursue the building of a new branch to cater the needs of their growing number of customers. Other preparations, such as the budget allocation and manpower, are already taken care of except for the location. This recommendation report proposes several spots that would suffice the needs of the company.

Maigue-Pascua’s RTW has been established since 2009 owned by Ms Jinky Maigue and Mr James Pascua. It offers fair-priced yet high-quality and trendsetting garments that’s suitable for their target demographic: students/teenagers. Due to the increasing demands for their products, the business partners opt to have a business expansion and to make a new image of being a top-line clothing store. Financial and marketing strategies are already made for this project but their main problem is the location. They currently have one branch, which is conveniently placed in the heart of the market. Now, they are looking for a place wherein they could offer the same convenience and is also low-priced. The partners also want to venture on broadening their market scope.

• A stall on a mini-bazaar outside a high-end village. Located on its right side is another clothing shop and on the left are a few more vacant stalls. It costs P60000 per month.

• A P72000-worth of monthly rent for a stand between a bank and a drugstore near a public market.

• An establishment on lease for P61000 on an upscale shopping centre. It is placed near a coffee shop/bookstore and in front of the centre’s leisure park.

• A kiosk beside a food stall built on a public park. Its monthly rent is P50000.

The expanses of all the proposed locations are all approved by the business partners.

The location should be customer-friendly, convenient, marketable, and reasonably-priced and should offer a wider market scope. Other matters, such as the expanse and the interior, were already taken into consideration on the first phase of planning. The aforementioned considerations should be followed in deciding for the location of the company’s expansion.

The points of comparisons are the following: ambience, competitions, price and demographics.

The stall is favourable to the residents of the nearby village due to its close proximity but the atmosphere of the mini-bazaar is not fitting to the new image that the company wishes to build. The stand, on the other hand, is misplaced. The location is not suitable for an apparel store. Consequently, the air in the establishment portrays the exact change that the owners want for their business. And lastly, the kiosk sets a good mood for it is placed on a recreational area.


All of them don’t have a nearby shop that offers the same product except for the stall.

The prices of the four locations range from P50000-P72000. The kiosk is the cheapest and the stand is the most expensive.

The stand and the kiosk don’t meet the entity’s customer target because their locations are too public while the establishment and the stall are in line with their goal of widening their scope from the student/teenager to the upperclassmen. The latter are more likely to bring in the desired customer due to its location.

Based on the comparisons aforementioned, these conclusions were drawn: 1. The most suitable ambience is from the establishment on the shopping centre. 2. The monthly rent of the kiosk is the lowest.

3. The stall’s location is more likely to have competition. 4. The establishment and the stall best suit the new target market of the entity. 5. The establishment gives off a good atmosphere, is reasonably-priced, has less competition and matches the new demographic of the entity.

Maigue-Pascua RTW should consider using the establishment on the shopping centre for several reasons. First, it is in sync with the new image that the entity wanted to build up. Second, it is relatively cheap for a store in a fancy centre. Third, it would help in bringing in a new demographic in the entity’s customer.

Having a branch in a shopping centre is quite a huge risk but with the projected sales of the company and future influx of customers, the company will pick up in the long run.

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