Katie\'s Kids-Trade Area Analysis Read the case below and answer the multiple ch
ID: 390763 • Letter: K
Question
Katie's Kids-Trade Area Analysis
Read the case below and answer the multiple choice questions. Once you have answered them, review the suggested strategy.
Katie Beckman owns a children's store, Katie's Kids, in the central business district of a major metropolitan area. Katie's Kids is a specialty retailing store that sells designer children's apparel and accessories. The children's clothes at Katie's Kids are fashionable and durable. Her clothes fit newborns to 10 years old. The average price point is $65 per outfit (top and bottom). Katie opened Katie's Kids in 2005 after she worked as a children's apparel buyer for a major department store. She opened in the central business district because the rents were lower and she was targeting parents with higher disposable incomes. Katie believed that parents would shop on their lunch breaks for their children. Although her business has been fairly successful over the past several years, Katie is starting to yearn for the weekend customer who, unfortunately, does not travel downtown on Saturdays and Sundays. She is looking to relocate her store to an area closer to where her target market lives rather than where they work.
Katie is torn between two locations in two different parts of town. Both are located in heavily trafficked lifestyle center. The power center for Location A has two large department stores, a Bed Bath and Beyond, and many specialty retailers and restaurants. The lifestyle center for Location B has one large department store, a Barnes and Noble, several small retailers that sell team merchandise, and a variety of specialty retailers. Both locations are easily accessible. In addition, each location offers retailers the opportunity to buy signage at the front of the center which increases visibility. Katie is torn between the two locations, so she decides to use The ESRI Tapestry Segmentation system to determine which location would be best for reaching her target market.
Location A has the following Tapestry Segments:
Segment 02-Suburban Splendor
Household Type: Married-Couple Families
Median Age: 41.5
Income: High
Employment: Professional/ Management
Education: Bachelor/ Grad Degree
Residential: Single Family
Financial: Hold large life insurance policies
Media: Listen to all-news radio
Vehicle: Have navigational systems in vehicle
Activities: Gardening
Segment 04- Boomburbs
Household Type: Married-Couple with kids
Median Age: 33.7
Income: High
Employment: Professional/ Management
Education: Some College; Bachelor/ Grad Degree
Residential: Single Family
Financial: Have 2nd mortgage (equity loan)
Media: Listen to sports radio
Vehicle: Own/ Lease SUV
Activities: Make purchases online
Location B has the following Tapestry Segments:
Segment 46- Rooted Rural
Household Type: Married Couple Families
Median Age: 42.2
Income: Lower Middle
Employment: Skilled/ Professional/ Management/Service
Education: No High School Diploma, High School Grad
Residential: Single Family, Mobile Home
Financial: Use full service bank
Media: Watch rodeos
Vehicle: Lease vehicle
Activities: Own dogs
Segment 62- Modest Income Homes
Household Type: Other family households, Singles
Age: 35.7
Income: Low
Employment: Services/ Skilled/ Not in Labor Force
Education: No High School Diploma
Residential: Single Family, Duplex
Financial: Own Annuities
Media: Watch Television or Syndicated TV
Vehicle: Own/ Lease Dodge
Activities: Eat at Fast Food Restaurants
1.
What family demographic is most important to Katie?
select
2.
Because of the high price point of Katie's merchandise, how important should household income be in her location decision?
select
3.
Which location has segments that have an appropriate average age for potential Katie's Kids shoppers?
select
4.
Which location is most likely to have members who may have shopped at Katie's Kids when it was located downtown near most of the professional offices?
select
QUESTION PROGRESS Decision Generator Decision Generator central business district because the rents were lower and she was targeting parents with higher disposable incomes. Katie believed that parents would shop on their lunch breaks for their children. Although her business has been fairly successful over the past several years, Katie is starting to yearn for the weekend customer who, unfortunately, does not travel downtown on Saturdays and Sundays. She is looking to relocate her store to an area closer to where her target market lives rather than where they work. 3. Which location has segments that have an appropriate average age for potential Katie's Kids shoppers? select 4. Which location is most likely to have members who may have shopped at Katie's Kids when it was located downtown near most of the professional offices? Katie is torn between two locations in two different parts of town. Both are located in heavily trafficked lifestyle center. The power center for Location A has two large department stores, a Bed Bath and Beyond, and many specialty retailers and restaurants. The lifestyle center for Location B has one large department store, a Barnes and Noble, several small retailers that sell team merchandise, and a variety of specialty retailers. Both locations are easily accessible. In addition, each location offers retailers the opportunity to buy signage at the front of the center which increases visibility. Katie is torn between the two locations, so she decides to use The ESRI Tapestry Segmentation system to determine which location would be best for reaching her target market. select select Location B Both locations Location A Location A has the following Tapestry Segments Segment 02-Suburban Splendor prev glossaryExplanation / Answer
1. Families with Children is most important segment to Katie. The store sells products for children and singles/families without children won't visit her store much.
2. Household income is an important decision in her location decision. Without the high income / high spending power, customers won't buy merchandise at a higher cost.
3. Location A has the potential market segment for Katie, high-income families with children.
4. Location A would most likely to have members who may have shopped at Katie's kids. The location includes high income families with children and employed in professional / management services.
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