Part III: Trade area analysis and site selection without customer data Getting to Know ESRI Business Analyst Fred 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 sites  Geocode available property data from an Excel spreadsheet  Identify attractive areas with Customer Prospecting and Grid Map tools  Creating Threshold Rings from consumer expenditure data  Creating 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 analysis  Have received a table of available locations for their first store from a commercial real estate agent  Must select a site for their first store based on market area characteristics and the competitive environment  Must 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 project  Use customer prospecting tools and grid-based heat maps to identify concentrations of attractive customers  Create 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 addresses Symbolize 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 reports  Design 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 project  Use customer prospecting tools and grid-based heat maps to identify concentrations of attractive customers  Create 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  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 to support your recommendation

Evaluation of ROI for business GIS analysis The 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 Analyst Fred L. Miller, PhD Murray State University