Part III: Trade area analysis and site selection without customer data

Getting to Know ESRI Business AnalystFred L. Miller, PhD

Murray State University

Presentation topics

This presentation will cover: The decision scenario for Living in the Green Lane Relevant business GIS tools and tasks Chapter 4: Geocoding and evaluating alternative

potential sitesGeocode available property data from an Excel spreadsheetIdentify attractive areas with Customer Prospecting and

Grid Map toolsCreating Threshold Rings from consumer expenditure dataCreating Huff Equal Probability Trade Area model

Presentation topics (cont.) Chapter 5: Defining trade areas, generating reports,

selecting best site Create drive-time trade areas around available locations and create reports detailing their

characteristics Perform comparisons of site population, purchasing, and lifestyle segmentation

characteristics by using general and detailed reports Select and recommend a retail site by integrating and evaluating information from several

maps and reports Design map documents to illustrate your analysis and support your recommendation

Evaluation of ROI for business GIS analysis Business GIS learning goals and skills

LITGL decision scenario

Living in the Green Lane’s owners, Janice Brown and Steven Bent:Have performed environmental scanning and market opportunity analysisHave received a table of available locations for their first store from a commercial real estate agentMust select a site for their first store based on market area characteristics and the competitive environmentMust support this decision within their business plan using reports and map exhibits

Relevant business GIS tools and tasks

Geocoding store locations from addresses Creating trade areas around potential location for

comparative purposes Gathering data on trade area population characteristics Gathering competitive environment information for

trade areas Researching comparative site characteristics with

reports, tables and graphs Selecting a store site and supporting the decision with

reports and map exhibits

Chapter 4: Geocoding and evaluating alternative potential sites

In this chapter, you will perform the following Business Analyst Desktop tasks:Geocode data on available properties and include it in a GIS projectUse customer prospecting tools and grid-based heat maps to identify concentrations of attractive customersCreate threshold trade area rings around locations based on consumer expenditure data Create Huff Equal Probability Trade Areas and Locator Reports, and use them to assess the competitive environment of available locations

Geocode potential site addressesSymbolize their point features

Identify attractive locations with Customer Prospecting, Grid Heat Maps, and Threshold Rings

Creating Huff Equal Probability Trade Areas

Chapter 5: Defining trade areas, generating reports, selecting best site

In this chapter, you will perform the following Business Analyst Desktop tasks:Create drive-time trade areas around available locations and create reports detailing their characteristics Perform comparisons of site population, purchasing, and lifestyle segmentation characteristics by using general and detailed reports Select and recommend a retail site by integrating and evaluating information from several maps and reportsDesign map documents to illustrate your analysis and to support your recommendation

Create Drive Time Trade Areas

Compare trade areas with reports

Design map exhibit to support business plan

Business GIS learning goals and skills

In Part III, you will learn to use Business Analyst Desktop to: Geocode data on available properties and include it in a GIS projectUse customer prospecting tools and grid-based heat maps to identify concentrations of attractive customersCreate threshold trade area rings around locations based on consumer expenditure data Create Huff Equal Probability Trade areas and Locator Reports, and use them to assess the competitive environment of available locationsCreate drive-time trade areas around available locations and create reports detailing their characteristics Perform comparisons of site population, purchasing, and lifestyle segmentation characteristics by using general and detailed reports Select and recommend a retail site by integrating and evaluating information from several maps and reportsDesign map documents to illustrate your analysis and to support your recommendation

Evaluation of ROI for business GIS analysisThe costs of this Business Analyst application are: A Business Analyst Desktop and Segmentation Module The time of managers and business GIS analyst

The benefits of this Business Analyst application are: Best match of company’s marketing strategy and target

customers Improved sales from most attractive location

The estimated incremental revenues are: About $2 million compared with second best location About $4.5 million compared with most likely

alternative location

Part III: Trade area analysis and site selection without customer data

Getting to Know ESRI Business AnalystFred L. Miller, PhD

Murray State University