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Market analysis… interior design business plan

Clients are the backbone of your interior decoration business and it is upon them that the success of your venture solely depends. Market analysis will help you to know your target market better and will help you define your target clients for this will go on to form the foundation and the building blocks of your business.

This analysis will provide you with all the essential information you need about the tastes ,attributes and preferences of your would be clients and would go a long way in helping you serve your clients better and build a loyal client base for your interior decoration business.This information can also be used to design an effective marketing campaign and a product mix that will be the key to your future business fortunes.

The first job that you need to do is to divide your market into segments so that you have clearly demarcated markets where you can position your business.
Lets take the example of Pslams interiors in Boston which is conducting a market analysis for its interior decoration business. They have come up with the following analysis of their target segment.

1.They have decided that their geographic market area would be the wealthy and rich class in that area which has a population of around 124623.
2. They have decided to operate within a 55 mile area within which they would operate initially.
3. They have decided to target a specific class of people within this area. This group includes the following;

. College educated married females within the ages 30-60 years.
.Either employed in their own business or working elsewhere and even homemakers.
.Have a combined household income of more than $120000.
. They or their spouses will require interior decorators for their homes or professional working spaces.
.They should be owners of a house or a villa .
.Should be members of an exclusive club,business or service organizations.
.Should be actively involved in either community work or be members of a charity and should have an active social life.

After deciding on the group they further streamlined the segment by including the behavioral patterns in the group ;

The target group should be fond of entertaining and should frequently invite people over to her house.
She considers her living space to be reflection of herself and is fond of continuously updating and renovating her home.She takes an active role and interest in decorating her home. Her home decides her social standing in her group.She subscribes to any or all of the following magazines
o Home.
o House Beautiful.
o Elle decor
o Metropolitan Home.
o Traditional Homes.
o Country Home
She has an opinion of herself as a decorator,but however would like an affirmation on her taste from a professional decorator.

Based on its chosen area of operation Psalms Interiors came up with the following conclusions;

a.32% of the target group are between the ages of 30 and 60.
b.56% of the group have had some sort of college education.
c.58% own at least one home or a villa.
d.22% own more than one house.
e.15% are either professionals and/or own their own business.
f.53% are married.
g.48% have a spouse who is a professional.
h.37% of the group have a spouse who runs his own business.
i.58% are involved in a charity.
j.67% have a club membership or are members of sevice or business associations.

After the market analysis Psalms interiors which had already planned to go into the home decorating business decides that there is ample scope to set up its interior decoration business in this area and it now has a idea of the clientele that it wants to serve.

Their clients are affluent women who have ample disposable income in their hands and are willing to spend it on their homes and workplaces.Their target group is a group that believes in having an individualistic design for their houses and they desire their homes and work ares to be unique,tasteful and with a personal touch.They are looking for guidance to further their ideas and have ample resources to do so.

Psalms interiors can now design its products and services and even their prices keeping in view its target client.