You’ve heard the old saying of “a picture is worth a 1000 words”. Well, in the highly subjective world of Retail Site Selection
, I am presenting a new saying that provides a more objective, meaningful alternative to the process – “a Map is worth a 1000 pictures”.
That “Map” is the end visual result of a unique Market Penetration Study
that I use to identify and analyze where the high potential, high use customers for your specific retail business concept live within a defined geographic area.
This process begins with the development of a Customer Lifestyle Profile
that is unique to your retail business brand. The Profile is based on an independent lifestyle segmentation system, developed by a nationally-renown research organization, which analyzes and categorizes stated customer product purchase and usage preference data
across a wide array of industries.
By cross-referencing stated customer use behavior and purchase frequency for specific retail concepts similar to yours, I am able to analyze and develop a lifestyle segmentation profile that identifies the high potential, high use customers for your particular retail business brand.
Your unique Customer Profile will include only customer lifestyle segments that have reported above-average usage of retail businesses such as yours.
Each of these lifestyle segments is accompanied by a wealth of demographic and geographic information. The key facet of my methodology is that the lifestyle segments drive the identification process of high potential customers based on their stated usage of retail outlets like yours.
Not based solely on income levels or age or occupation type.
After all, a 45-year-old professional with an income of $65K who is single and lives in a rented apartment is likely to have a different usage pattern for a casual dining Asian restaurant or a low-budget shoe store than a 45-year-old professional with the same income who is married with 3 children and lives in a 4-bedroom house.
Armed with the unique Customer Profile for your retail business brand, I now determine where the highest concentration
of these customers is found in the defined geographic area. Usually, the defined geographic area is an entire metropolitan area, commonly referred to as an MSA (Metropolitan Statistical Area). The entire metropolitan area is examined by individual zip code
, matching the number of segment households that are part of the defined Customer Lifestyle Profile for your retail brand against the total household count in that zip code. The resulting calculation yields a percentage of penetration in each zip code representing the relative concentration of desired, high potential customers living there.
These penetration percentages
are then visually reflected on a Map of the entire metropolitan area, delineated by zip code. Those zip codes with a “very high” penetration percentage are represented on the map in a particular color. Those with an “above-average” penetration percentage are shown in a different color. Zip codes with an “average or below-average” penetration percentage remain on the map in white.
Invariably, these zip codes will cluster together
based on this color-coding scheme. With this Market Penetration Map, I am able to clearly identify the zip code clusters throughout the entire metropolitan area where the highest concentration of your desired customers are found.
At this point, a population density component
is added to the Map. All zip codes with a “high” population density are represented with a particular shading/grid pattern. Those zip codes with an “average or low” density have no shading/grid pattern.
Now, my analysis will focus your real estate search
to zero in on the zip codes and clusters with both a “very high” percentage of desired customers and a “high” population density. After all, doesn’t this sound like the ideal place for you to put your new retail business outlet?
Of course it does! And you have found it by using a process that is more scientifically
, more objectively based. Certainly better than saying “well, there seems to be a lot of people around here with good jobs and high incomes”.
So the Market Penetration Study Map
becomes your visual guide in the Site Selection process for future retail locations in your designated market area. In this case, I can say your Map is truly worth a 1000 pictures!Click here to view a Market Penetration Map sample
. You MUST
use the "BACK ARROW"
to return to this page after viewing the map.