A Market Area Analysis By

Is the TOP shopping destination of India, a MARKET AREA for your PRODUCT? Not Necessary..!! As the nature of product and its demand will decide your MARKET AREA and not the WELL KNOWN shopping destinations.

A market area is the geographic region where a specific good or service is offered for sale. The market area differs from business to business based on 1. Demand, 2. Sales goals, 3. And marketing techniques. By clearly defining the market area for its product or service, a company is better able to market and promote its product to customers, and also to identify new potential customers. DEFINITION

What is Demand? The amount of a particular product that a consumer or group of consumers will want to purchase at a given price.  So more the demand, BETTER is the Market Area.

What is the sales goal? Its is nothing but a figure, that needs to be achieved through retail sales.  Sales target will majorly decide the market area.

A small-town butcher may define his market as people who live or work within the confines of the town or surrounding suburbs

A large retailer, on the other hand, may define his market as wherever products are sold. This may include just the local area, or may encompass countries across the globe. In this type of situation, the company often divides market area into many regions or zones to make it easier to coordinate marketing and sales efforts.

MARKET OF A PRODUCT OR SERVICE HOW FAR PEOPLE ARE WILLING AND ABLE TO TRAVEL TO OBTAIN THAT PRODUCT OR SERVICE LOCAL DEMAND FOR THAT PARTICULAR GOOD In the modern global economy, market area may be quite large because of the availability of online retailers AVAILABILITY OF SUBSTITUTE PRODUCTS OR COMPETITORS

The more butcher shops there are in a small town, the smaller the market is for each one, because meat products are largely interchangeable. :(

:) If one of these shops can distinguish itself based on price or quality, it may be able to widen its market area and capture more customers.

Information can be used to market more effectively Helps the company set prices, introduce new products, or modify existing products based on demand from consumers within the defined area. Plan expansions, maximize size Advantages: clearly defined market area

For Example: A swimming pool supply will have less potential in rural Maine than in California.

World’s Largest Retailer Walmart

 Based on Geographic Regions  Focuses on Middle Atlantic States Reasons:  More Loyal customers  Excellent Visibility  Well Known  Merchandising, pricing, promotional strategies based on regional market needs.  Management have greater control over a regional market Hess’s Department Store

STARBUCKS

USA-established stores France was considered a market area because of the cultural change in the country. Asia is a different market than Europe because major countries like India & china are Tea drinking nations.(not a conducive market for starbucks) China has one of the world’s smallest coffee markets India ranks 36 th out of 53 nations with the most sales of packaged coffee. Changing consumer aspirations and lifestyle led to the development of a niche market in China. In India the market area for coffee chains is growing by leaps and bounds.

Zara in India Stores in Chandigarh, Jaipur, Pune, Chennai – bleeding money & dragging overall sales down 65% sales from star performer stores Delhi (2), Mumbai, Bangalore 65% sales from star performer stores Delhi (2), Mumbai, Bangalore

Best Price - Walmart's wholesale stores 20 stores in India Members: Resellers, kirana stores, Offices & Institutions, hotels, caterers and restaurants. Areas targetting the business population Amritsar, Zirakpur, Agra Lucknow, Kota, Hyderabad Plans B2B ecommerce platform Plans 50 wholesale stores in coming Five years 20 stores in India Members: Resellers, kirana stores, Offices & Institutions, hotels, caterers and restaurants. Areas targetting the business population Amritsar, Zirakpur, Agra Lucknow, Kota, Hyderabad Plans B2B ecommerce platform Plans 50 wholesale stores in coming Five years

VISHAL to V2 Tier 2 and 3 cities. Aimed at opening in every town to be the first on the block Expanded too quickly without consolidating supply chain. Deliveries piled up Shut down about a dozen stores. R. Agrawal sold of the company to Airplaza retail holdings Started V2. (Bihar, UP, Odisha) Under penetrated small cities with cheaper real estate