Hamlin and Park Design
Market Analysis Summary
Due to the strengthening of the area’s economy, more southwest Claremont homeowners are exploring interior design to improve their homes’ beauty and charm. Last year, residential interior design companies generated $4 million in sales in the greater Claremont area. Approximately, 75% of the sales were located in southwest Claremont. Forecasts for next year predict that there will be an increase of 11% in sales. This demand for interior design services is a tremendous opportunity. Hamlin and Park Design is poised to take advantage of these changes, and expects to become a recognized name and profitable entity in the city’s interior design market.
4.1 Market Segmentation
The customers that Hamlin and Park Design will be serving can be divided into three groups:
- New Home Construction: Hamlin and Park Design will compete for the interior design projects associated with new homes. Contracted consulting responsibilities with the builders can include one or more of the companies services, i.e. strategic planning, master planning, and lighting, floor or carpet design.
- Remodeling Projects: These projects have some of the same characteristics as new home construction (i.e. working as a consultant with builders) but can also include greater control over all aspect of the project.
- Interior Design of Existing Home: Hamlin and Park Design will control all aspects of these projects.
| Market Analysis | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Potential Customers | Growth | CAGR | |||||
| New Home Construction | 6% | 1,500 | 1,590 | 1,685 | 1,786 | 1,893 | 5.99% |
| Remodeling Projects | 10% | 3,000 | 3,300 | 3,630 | 3,993 | 4,392 | 10.00% |
| Interior Design of Existing Home | 8% | 2,000 | 2,160 | 2,333 | 2,520 | 2,722 | 8.01% |
| Total | 8.50% | 6,500 | 7,050 | 7,648 | 8,299 | 9,007 | 8.50% |
4.2 Competitive Edge
Hamlin and Park Design’s competitive edge is that both Courtney Hamlin and Katherine Park are highly successful interior designers with a loyal customer base. Courtney has been a Project Manager with Sullivan and Associates for five years. During that time she has established strong relationships with builders and vendors which will prove beneficial in the coming years. For the past six years, Katherine has worked as a Design Consultant for Jonathan Miller, the most successful interior designer in Claremont. Together, Courtney and Katherine have the skills, resources and experience to be build on the base of 1,000 satisfied customers.
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