Trading rea amalysis Chapter 9
Chapter 9
Objectives To Demonstrate Importance of Store Location To Discuss the Concept of Trading Area To Show How Trading Areas Can Be Delineated To EXamine Factors in Trading Area Analysis
• To Demonstrate Importance of Store Location • To Discuss the Concept of Trading Area • To Show How Trading Areas Can Be Delineated • To Examine Factors in Trading Area Analysis
Location Good Location can overcome Mediocre Strategy Mix Poor location difficult to overcome Requires EXtensive Decision Making Least Flexible Element of Strategy MiX
• Good Location CAN Overcome Mediocre Strategy Mix • Poor Location Difficult to Overcome • Requires Extensive Decision Making • Least Flexible Element of Strategy Mix
Loyal Customers and Employees May Be lost New Location May Not Have Same Characteristics Store Fixtures and Renovations May Not transfer
• Loyal Customers and Employees May Be Lost • New Location May Not Have Same Characteristics • Store Fixtures and Renovations May Not Transfer
Site Selection Steps Evaluate Alternate Geographic Trading Areas Determine Type of Location Select General Location Analyze Alternate Sites
Evaluate Alternate Geographic (Trading) Areas Select General Location Analyze Alternate Sites Determine Type of Location
Consumer Characteristics detailed Promotional Activity Focus Determined Ascertain overall Net Increase Proper Number of Stores Calculated Geographic Weaknesses Highlighted
• Consumer Characteristics Detailed • Promotional Activity Focus Determined • Ascertain Overall Net Increase • Proper Number of Stores Calculated • Geographic Weaknesses Highlighted
Overall Net Increase Total Revised Sales Total Sales Total Previous Sales of Existing Store+ of New Store of Existing Store
Total Revised Sales Total Sales Total Previous Sales of Existing Store of New Store of Existing Store + -
Trading Area ( New Proposed) miles miles 2 miles mile 2 miles Store Store nation location miles B miles Trad ng area of Estimated trading are exsting supermarket af proposed out er supermarket outlet
Geographic Information Systems(GIS) Trading Area by Specific Demographics Derive sales potential Effect of new location on Existing
• Trading Area by Specific Demographics • Derive Sales Potential • Effect of New Location on Existing
Trading Area Parts Primary Secondary Fringe(Tertiary)
• Primary • Secondary • Fringe (Tertiary)
