Retailing and Predominant Age Group

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INTRODUCTION

COMPANIE’S BACKGROUND
* Founded in 1952 by John Henry Hutchison
* Headquartered in Richmond, Virginia
* 350 popularly priced woman’s clothing stores
* Manufacturers ship floor ready goods to distribution centers * All stores located within 400 miles of a distribution center * Hutch Fashions
* Women’s fashion apparel chain
* Trendy apparel selection
* Complementary array of accessories
* Typically require 4000 to 5000 Sq. ft.
* Hutch Extra
* Cater to women requiring large and half-size apparel * Stores requires less space (2000 to 3000 Sq. ft.)
MARKETING STRATERGY
* Customers
* Target market is women between 18 to 40 years
* Lower-middle to middle-income range
* Women who like to wear the latest fashions
* Product/Price
* Price level between the mass merchandiser and department stores * Customers perceive products to be elegant, fashionable and not too expensive * Location
* Within a 400 mile radius of distribution center
* Population range of 10,000 to 50,000
* Trade area of 50,000 to 1,50,000
* Low to middle income brackets
* Located in Strip malls or strip centers
* Located adjacent to center’s anchor
* Close to “center court”

1. How do the people living in trade areas compare with Hutch’s target customers? Given data:

PARTICULARS| Dalton| Hinesville|
Population: 2005| 93,182| 64,195|
Population: 1999| 87,293| 57,945|
Household:2005| 35,570| 20,010|
Household:1999| 33,140| 17,541|
Families:1996| 24,347| 14,277|
Race(1999): White| 92.0%| 54.1%|
Race(1999): Black| 4.9%| 38.3%|
Age(1999): 0-20| 31.2%| 40.2%|
Age(1999): 21-44| 37.1%| 47.0%|
Age(1999): 45-64| 21.7%| 9.2%|
Average Household Income| $40,397| $28,677|
Retail Sales (000) : Apparel Stores| $26,634| $9,339|
Women’s apparel Stores| 21| 8|...
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