Developed by the Institute for the Application of Geospatial Technology in collaboration with the Rochester Institute of Technology U.S. Department of Labor’s High Growth Job Training Initiative Program Trade Area Analysis with GIS Food and Beverage Manufacturing and Processing Industry Finger Lakes Region of New York State

 Business Geographics  Retail Trade Area Analysis  Spider Diagrams  Ring Studies  Drive Time Analysis  Demographic Comparison Topics Covered

Introduction – Businesss Geographics Farmers Customers Retailers Distributors Processors Food Supply Chain/Network Geospatial Data + Analysis/Visualization = Better Planning and Management   Success in business depends on a number of factors:   Customers   Competitors   Products and services offered   Pricing structure   Advertising and promotion   Location

Introduction – Retail Trade Area Analysis StoreCustomersCompetitors

Elements of Trade Area Analysis  Map your customers  Drive times and distances  What other variables impact your business?  Finding productive new retail sites  Understanding the customer base of new sites

BusinessMap

Wine/Liquor Case Study  New location should:  Have a similar demographic profile  Have minimal competition  Not compete with Sarah’s current store  GIS can be used to find a location that meets these criteria

Wine/Liquor Case Study

Customer Analysis – Existing Customer Locations 500 Almay Rd 484 Almay Rd 300 Almay Rd

Customer Analysis – Spider Diagrams

 Characterize trade areas around a location  Quantify customer proximity  Quantify proximity of other variables as well Customer Analysis - Ring Studies 85 customers within ½ mile (61%) 128 customers within 1 mile (91%) 139 customers within 2 miles (99%) 3 competitors within 1 mile 7 competitors within 2 miles No competition within ½ mile

  Similar to ring studies   Analyzes variables within zones around a point location   Zones based on travel time rather than “as the crow flies” distances   Based on characteristics of the local street network Customer Analysis - Drive Time 0 competitors within 1 minute 1 competitors within 2 minutes 4 competitors within 4 minutes

Demographic Comparison My customers tend to be: More affluent than averageMore affluent than average Middle-agedMiddle-aged Established professionalsEstablished professionals Where are other areas with people like this? Demographic data aggregated to various levels: StateState CountyCounty MSA (Metropolitan Statistical Area)MSA (Metropolitan Statistical Area) Census TractCensus Tract 3-digit ZIP Code3-digit ZIP Code 5-digit ZIP Code5-digit ZIP Code

Finding Similar Demographic Areas

New Location Assessment

Concept Review Which of the following are elements of trade area analysis? Check all that apply. Correct - Click anywhere to continue Incorrect - Click anywhere to continue You answered this correctly! Your answer: The correct answer is: You did not answer this question completely Try again You must answer the question before continuing SubmitClear A) Identifying competitor locations B) Mapping the food supply chain C) Locating new retail sites D) Understanding the customer base E) Finding new vineyard sites

Concept Review Which is an example of geocoding? Correct - Click anywhere to continue Incorrect - Click anywhere to continue You answered this correctly! Your answer: The correct answer is: You did not answer this question completely You must answer the question before continuing SubmitClear Try again A) Digitizing lakes and streams B) Matching street addresses to the appropriate locations on a street network C) Calculating drive times D) Creating a base map

Concept Review Which business geographic analysis tools help visualize or quantify the distribution of customers, competitors, and other features around a particular location? Correct - Click anywhere to continue Incorrect - Click anywhere to continue You answered this correctly! Your answer: The correct answer is: You did not answer this question completely You must answer the question before continuing SubmitClear A) Ring studies B) Gantt charts C) Snake corridors D) Drive time analysis E) Demographic characteristics F) Spider diagrams G) Customer lists Try again

Conclusion  GIS can help address several unknowns when analyzing your trade area.  Careful planning is much more dependable than counting on luck or gut feelings

Resources  BusinessMap  Software information -  Demonstration videos -  Business Analyst -  Data  U.S. Census shapefiles  DataPlace -  American Factfinder -

Contact For more information on How to Succeed with GIT: IAGT 199 Franklin St Suite 300 Auburn, NY (315) www.iagt.orgRIT Center for Multidisciplinary Studies 31 Lomb Memorial Drive Rochester, NY (585) www.rit.edu/cms

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