Canada Retail CH7 加拿大零售第七章.pptVIP

Chapter 7 Retail Location Decisions Location Selection Process The selection process begins with an analysis of the firms strategy. The strategic analysis is followed by.... Choosing a region or metropolitan area Performing a trade area analysis Evaluating and selecting the site Small differences in locations can greatly affect profitability. Type of Market Coverage Market coverage strategies describe the size and kind of geographic area you choose for you location. Three market coverage strategies are possible. Regional Dominance Market Saturation Small Community Emphasis Regional Dominance The retailer places many stores in a particular geographic region (e.g Northeastern China.) Advantages to the retailer include.... Lower distribution costs经销成本 Easier personnel supervision人员监督 Ability to understand customer needs Strong reputation in the area Better benefit from sales promotion Type of Goods and Location Strategy Convenience Goods 日用品(low time/effort精力) Best located in high traffic areas. Parasite stores are convenience good selling stores located near larger department stores to feed on the traffic generated by those stores. Shopping Goods 交易品(medium time/effort) Best located near other stores that sell shopping goods because customers prefer to compare stores and brands. Specialty Goods特殊商品 (high time/effort) Draw their own traffic. Can be located in a variety of places, including stand-alone locations. Choosing a Region or Metropolitan Area Developing a location plan requires careful study of potential markets. Focus on locations where the market potential fits the firms growth objectives. The steps of location selection are.... Choose the region or metropolitan area Trade Area Analysis(size) Geographic qualities, housing patterns and land use. Site Analysis and Evaluation Land costs, traffic flow, ingress and egress, etc. Site Selection Region or Metro Area Selection Factors Index of Retail Saturation (IRS) The index of retail saturation (IRS) is a mea