Dollar Store

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Retail Discount Store Business Plan

Market Analysis Summary

We expect sales to increase steadily as consumers find that they can purchase a variety of quality items at bargain prices. We intend to tap into the retail market with pricing that will encourage quantity buying, and our pricing will attract consumers on fixed budgets.

Our target market is the lower income portion of the Bend and Redmond community. This includes working class individuals, the elderly, and students, many of whom are price conscious and looking to find a value for their dollar.

4.1 Market Segmentation

The market analysis pie chart shows potential customers and the company's target markets. The Dollar Store intends to provide affordable shopping alternatives to working class families with incomes under $25,000, for elderly people on fixed incomes, and also a large student population that tend to be on strict budgets. Bend makes up the largest market segment. We expect this market to grow at a rate of 10% per year. This market constitutes the general public who are looking for affordable merchandise at bargain prices. Redmond constitutes the second largest market with a fast growing retirement community. There are also many bedroom communities that shop in the Bend area that will add to the percentage of consumers.

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Elderly 10% 40,000 44,000 48,400 53,240 58,564 10.00%
Students 10% 20,000 22,000 24,200 26,620 29,282 10.00%
Working Class Families 10% 50,000 55,000 60,500 66,550 73,205 10.00%
Total 10.00% 110,000 121,000 133,100 146,410 161,051 10.00%

4.2 Target Market Segment Strategy

We focus on the price conscious consumer who is looking for value as well as quality. Both the Bend and the Redmond groups will be marketed to as they are isolated populations which do most of their shopping in the greater Bend area. If we can attract and keep these consumers the word will continue to spread about what our store has to offer.

4.3 Industry Analysis

In an ever changing economy the discount store model is becoming more popular with the consumer. Providing a large selection of bargain-priced items is our intended goal.

4.3.1 Competition and Buying Patterns

Consumers demand quality customer service, fair pricing, and a convenient location.

Competition is very tough with customer service and location key components. The selection of merchandise a store provides is also very important.