FEASIBILITY ANALYSIS

Feasibility Analysis

Business Plan: Home Improvement Retailer

Section 1

1.0: Executive Summary

The main theme of this report is to conduct a Customer Feasibility Analysis Report for Home Improvement Retailer located in Cardiff Wales. The name of the business is Classified Home Improvement Retailer - CHIR. This company will furnish products and services for home decorating, maintenance, repair & buildings remodelling. Company main objective is to attract a large customer base through their merchandising practices. According to HighBeam Research, Home improvements demand has kept other home improvement provider sales figures up in Cardiff, Wales.

CHIR aimed to provide absolute products line for meeting customers different home improvement needs such as appliances, lumber, millwork, building materials, flooring, gift cards, hardware, heating and cooling systems, home décor and paint, lawn and garden equipment, outdoor living appliances, plumbing products, storage, tools, rough electrical and home fashion, windows and doors, bathroom appliance and accessories, garage products, kitchen products (cabinets and countertops), laundry room products, patio products and accessories. In order to make company's services much more feasible, CHIR provide installation services, in-store services, credit cards; protection plans for appliances and special orders.

In order to see the viability of the business, John Mullins Seven Domains Model will be utilized.

Figure 1: Seven Domains Model of John Mullins

Source: The New Business Road Test

Section 2

2.0: Micro-Level Market Assessment

2.1: Target Market and its Pain

Home improvement retailer market is very competitive and slow due to the economy state. The reason for this is the lack in consumer confident and competition among retailers. CHIR will be looking into new ideas in order increase their market share simultaneously outshine in pleasing the customer needs (Susan, 2011, p. 31).

In order to assess the target market for CHIR, the qualitative methods has been used. Questionnaires with three main questions were distributed in the Cardiff Wales in order to know the demand for such services and to see the number of companies that has been offering these services to the customers. According Research Report by TNS-BMRB, every year UK consumers spend around £27 billion on their home improvement, repair and maintenance.

As the number of household are increasing, the market for home improvement also increasing. Furthermore, in Cardiff Wales, 60% of the home improvement cost is £1,000 or more than this amount while, 60% of the repairs & maintenance cost is not as much of £500 (Mullins, 2011, p. 6).

The following chart has been made through two year of data that was available on Department of Trade and Industry. This shows the work commonly undertaken by the households, among them, the highest points was given to central heating system and central heating repair for both Home improvement and repairing (Canlen, Brae, 2011, p.n.d).

Figure 2: Demand for different kind of work

In order to confirm these statistics, the resident of the Cardiff Wales were surveyed in order to see demand for each type of improvement and repair (Per, Søilen, 2011, p. 55).

Figure 3: Type of improvement and repair



Beside this, citizens were also asked whether ...