Market location is about geography. A grocery store has a geographic market that serves neighborhoods within a five mile radius, for example. The major retail shopping center may serve a region that covers a 150 mile radius. A manufacturing firm may locate where utility costs are low, workers are skilled, and regional, national and global market distribution is possible by ready-access to warehousing, shipping and logistics.
Location decisions are aided by analyzing social, economic and demographic market characteristics. Your business's customer data, and consumer and community pscyhographic segmentation variables, are equally important to location analysis.
Hoffman Strategy Group is using maps to visually analyze location opportunities for a company that is interested in placing their product in Australia. Market maps are built by analyzing socio-economic and demographic data that is correlated with customer profile data from the company. For example, the company's product is purchased by high net-wealth individuals over the age of 50; by high-end commercial real estate developers; and by municipalities with a concentration of high-income resident population.
The above maps (click one for slide show) illustrate high-level market profiles in Australia and two key market areas -- Brisbane metropolitan area, in the State of Queensland, and Melbourne metropolitan area, in the State of Victoria. Generally,
- The Australian national map of employment concentration by key economic industries match the company's typical customer profile. While this reveals various potential target markets, the profiles of Brisbane and Melbourne closely correlate with customer profiles.
- We can then drill down further and examine market profiles of Brisbane and Melbourne at the neighborhood level. A couple of Brisbane suburbs match the typical customer profiles, for example.
- In Melbourne, we were able to identify the neighborhoods that match customer profiles. What we uncovered is a special demographic profile related to race and nation of origin that is not characterized by existing customer data.
Hoffman Strategy Group can identify retail trade areas, markets for new and existing products, and the location for various businesses such as retail franchise stores, restaurants, retail shopping centers, bank branches, automatic teller machines, convenience and grocery stores, and specialty stores.
Where is your market? Contact us to find out.