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Target Market Information

The shopping center “Irkutskiy” is the biggest nonfood market in
Irkutsk, in which everybody can buy everything, what is used in everyday life, for example clothes, shoes, satchels, wallets, kitchen-ware and etc.
It unites three shopping centers and contains up to 500 small shops. The shopping center “Irkutskiy” is the only big nonfood shopping center with such range of goods in Irkutsk and, consequently, serves most of the
Irkutsk population. The shopping center ``Fortuna`` is the biggest car spare part market. The “Complex” is also a big nonfood market, but it is smaller than “Irkutskiy”.

Social Environment

Demographic

The Irkutsk population today is 592,4 thousand people.
(http://www.centerru.com/regions/regions.asp?id=7). The potential clients of the shopping center “Irkutskiy”, where I plan to open the first consulting center, and also the potential clients of my database are people from 18 to 60 years. It is 60% of the whole population 355,2 thousand people. (http://www.centerru.com/regions/diagrams/d1_r.html). I do not take into account people below 18 and over 60 because their parents or children usually maintain such people. The people over 60, who are not maintained by their children, usually have very small pension.

In addition, the shopping center “Irkutskiy” is oriented on the people and households from the middle class with revenues from 120,000 to 240,000 rubles per year. According to the statistical information and my knowledge it is approximately 10% of able-bodied citizens or 35,5 thousand people.
(http://www.centerru.com/regions/regions.asp?type=reg&id=7). I also made a small survey, which tells that approximately once for three months respondents of such people make purchases of clothes, shoes, or some other similar products. I assumed that for year potential clients make 142 thousand purchases, 0,38 thousands a day. If every second makes such purchase in of the shopping center “Irkutskiy”, than there may be approximately 190 potential clients of my database a day according to demographic analysis.

Culture

According to my survey and experience, I divided all potential clients into two categories. The first is people, who like go shopping and do it for rest. They are approximately 70% of respondents. The second is people, who do not like go shopping and do it as necessity 30%. The second category is my potential clients. So, I assumed that there are about 57 (190*30%) potential clients of my database a day.

Political Environment

For last years, the local government has made attempts to increase the power of the consumer protection law. It reflects in the increasing quantity of people, who are content from purchases. As a result, more people are ready to make a purchase and companies increase their quality of service and products. It can be applied also to the shopping center
“Irkutskiy” because for the last year more people have made purchases there than for previous years. These political attempts and other economical factors are the causes of the increasing quantity of clients in the shopping center “Irkutskiy”, and, consequently, my potential clients.

Economic Environment

For last years, the level of revenues of population in Irkutsk is constantly increasing.
(http://www.centerru.com/regions/regions.asp?type=reg&id=7). It increases the purchasing power of population. As a result, the shopping center
«Irkutskiy» has constantly increasing quantity of clients that can be the potential clients of my database.

The increase in the level of revenue results in the increase quantity of nonfood purchases because this sector of household is only 15% of all households revenues (about 60% of revenue are spent for food in Russia). It is significantly less than in developed countries. So, the increase of revenues increases the quantity of nonfood purchases.

Competitive Environment

There is no such service in the shopping center «Irkutskiy» and other markets. So, there are no direct competitors.

Indirect competitors are different print media that usually give brief information, where people can buy some kinds of clothes, shoes and etc.
Such information is usually about one product or one company and does not give potential clients the picture of the whole market to choose the most appropriate product. So, these competitors can not influence my business very much.

Potential Problems

1. My assumption that every second purchase is made in the shopping center

“Irkutskiy” may be overrated, so there are may be the smaller quantity of potential clients of my database.
2. The results of my survey may be not valid. It also may change the quantity of potential clients.

Market Data Summary

Target Clients

Target clients are people between 18 and 60 years old, who have revenues from 120,000 to 240,000 rubles per year and go shopping as necessity. They will use my service as they do not want to spend much time on shopping and want to save their time.

Target Market Size

There are 355,2 thousand people between 18 and 60 years old. Ten percent of them 35,5 thousand have an average annual income between 120,000 to 240,000 rubbles. Thirty percent of them do shopping as necessity. So, my target market size is 10,650 clients a year. If every client makes four purchases a year in average than total annual purchases are 42,600.

MARKET STRATEGY

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