| Summary: | The purpose of this report is to determine the need,
attractiveness and viability of opening a new supermarket in
Jurong West, a developing estate. This topic is selected
because of an observed lack of supermarket in Jurong West.
Both primary and secondary data were used. The primary
research includes interviews, mailed questionnaire, and
observation. The sources of secondary data include
literature, statistical report, companies financial reports
and periodicals.
The need for a new supermarket was determined using the
Saturation Theory, and through the assessment of the various
population and household characteristics of Jurong West. In
addition, an analysis was done on the major potential
competitors of the new supermarket. The analysis concludes
that a need for the new supermarket exists.
With a market to tap, the marketing strategies for the
achievement of the expected sales level were outlined. Two
operating years' projected financial statements were also
drawn to show the feasibility and viability of the project. In the projected income and expenditure statements, the
Turnover was estimated using a pro forma strategic model. The
operating expenses were derived by prorating the specific
industrial cost items, either in terms of the floor area of
the new supermarket or the industry percentage of Turnover.
In conclusion, the group believes that the supermarket
will be able to achieve stable growth and profits in
approximately two to three years' time. This is based on the
favourable projected financial statements, and other
qualitative factors, such as a growing population, and an
unsatistied need.
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