Hutch: Locating a New Store Essay
Hutch: Locating a New Store
Getting the best location for their new store requires a proper scrutiny of available options, in this case Dalton and Hinesville. According to NetMBA (2007), marketing research is an integral part in any marketing undertaking. The Hutch Vice President of new business development, Dale Abell has embraced this and adequate information about the two proposed sights has been collected. Hutch target middle income and lower-middle income women between 18 and 40 years of age. The selection of the location must therefore provide this target market. Dalton The target age group falls under the 21-44 year range provided in the Dalton census.
This is the biggest percentage compared to other age groups in the area. This augers well for Hutch’s target of women between 18 to 40 years. The average income received in the area is middle income which falls within the income that Hutch targets among customers. The Whitfield Square shopping centre is strategically placed and is off the highway. This satisfies one of Hutch’s requirement for easy accessibility. Noster (1) notes that a highway could bring in good business due to the high number of highway users likely to stop by a shopping centre along the highway.
The shopping centre is located only two miles from the town centre. Hutch has the policy of locating their premises as close to the centre court as possible. Since the target market is likely to frequent the town centre for provisions, a location near the town centre offers a good ambience and accessibility of a business to customers (Allen, 2). Convenience of this location is made better by Wal-Mart and Kroger which is a large grocery store. This means that women coming to the shopping centre for their grocery supplies can easily get into the shop.
Hutch would therefore be able to quickly gain customers in the area. More so, there is a popular shoe store, a Chinese and Mexican restaurant, a beauty salon and McSpeedy’s Pizza. Most of the businesses in this location are more likely to be visited by women who form Hutch’s target market. The only reservation is that the presence of the two outparcels is likely to reduce parking space for customers coming to the store as well as block its visibility. According to Allen (2), obstruction that affects visibility of the business could cause loss of business.
Hinesville The percentage of people aged between 21 to 44 is quite high and makes up 47. 0% of the total population. This would be favorable for Hutch which targets women in the 18 to 40 age bracket. The income however is relatively low in the area. The Stuart army base is located in this location and hence there is a relatively high population. Similar to Hutch’s requirements for a location that is close to the town centre, Hinesville is strategically located. The Target Plaza is well placed at a junction of two famous highways: the State Route 119 and the U.
S highway 82. This is another advantage and the business is likely to record sales due to the accessibility as well as the busy nature of the two roads (Noster, 1). The presence of Target and the grocery store which is well recognized because it is associated with a famous Eastern U. S chain are likely to attract many women shoppers who are likely to purchase the company’s products. Target is immediately adjacent to the available spot for Hutch. This would go along well with the company’s desire to have their position adjacent to the center’s anchor.
The available spot is 6,800 square feet which means that it is possible for the company to put up a Hutch Fashions and Hutch Extra in a combination store. The area required is between 6,000 and 7,000 square feet. In Dale Abell’s position, I would select Dalton as the location for the new store. This is because the market profile of this particular location favors Hutch’s business more than Hinesville. The population in Dalton area would provide a larger market for Hutch’s merchandise more so given that the age that Hutch targets makes the largest proportion of the population.
Dalton has a population of 93,182 while Hinesville’s is 64,195. Projected population by year 2015 is also higher which will provide guarantee for continuously growing sales. The consideration of demographics is very essential in selecting a business location (Ubalde and Monzon (3). Even though both locations are strategically located because they are close to the highway, Dalton still proves to be much better due to the businesses that surround it in the shopping centre. Grocery stores, shoe stores and fancy restaurants are known to attract large numbers of women customers.
The Whitfield Square shopping centre is well endowed in these kinds of businesses given that there is an internationally recognized shoe store, a large grocery store, restaurants and a beauty salon all which are likely to attract hosts of female customers. As they make their shopping trips and visit the restaurants, they are likely to visit Hutch for some clothes supply as well. Compared to Hinesville, Dalton records higher area sales. The data shows that while Dalton records area sales of $18. 01, Hinesville only makes $8. 97. The area sales per capita for Dalton is $206.
26 while Hinesville’s is $154. 74. This indicates that Dalton is good for business as compared to Hinesville. There is a high perceived risk of investing in Hinesville because the population is highly influenced by military settlement. Should the government send the military on international missions the business is likely to suffer from loss of customers. Word Count: 926 Works Cited Allen, S. (2009). Choosing a Location for Your Businesses: There is more to consider than just cost. Retrieved on April 27, 2009 from http://entrepreneurs. about. com/od/gettingstarted/a/chooselocation.
htm NetMBA (2007). Target Market Selection. Retrieved on April 27, 2009 from http://www. netmba. com/marketing/market/target/ Noster, K. (2008). Highway Location Boosts Profit #3110. Retrieved on April 27, 2009 from http://www. bizbuysell. com/listing-information-q344730. html. Ubalde, A. and Monzon, P. (2009). Site Selection: Demographic and Economic Information. Retrieved on April 27, 2009 from http://proceedings. esri. com/library/userconf/proc98/PROCEED/TO500/ HYPERLINK “http://proceedings. esri. com/library/userconf/proc98/PROCEED/TO500/PAP498/P498. HTM”