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August 2007August 2007
City of Richmond / Wayne County, INCity of Richmond / Wayne County, IN
CommunityCommunityIDID Final Report Final Report
• Ernst & Young Entrepreneur of the Year® 2007 Southwest Area
• Named Key Player in the Retail Industry for 2006 by Retail Traffic Magazine
• Selected as American Business Awards 2006 Most Innovative Company for up to 2,500 employees
• The largest provider and #1 expert in customer analytics solutions
• Over 450 years of retail experience
• Analyzed every type of retail, restaurant and service concept
• Modeled over 100,000 retail and restaurant locations
• Over 1,500 clients
About Buxton
Who Initiates Retail Projects?
TRADITIONALLY-• Developers• Land Owners• Retailers
TODAY-• Communities
Enhances residents’ (current and prospective) lifestyles with more shopping and dining choices
Increases property tax receipts
Decreases retail leakage
New, permanent jobs
Expands economic opportunities by attracting more people and businesses
Benefits of a Strong Retail Sector
Cities Can Be Underserved Because:
• Retailers focus on established growth areas
• The best site is selected rather than best trade area
• Outdated data sources don’t show current potential
• Sites and communities inventoried as far out as five years
• You are not on the radar screen
• You are not “pro-business”
Case Study – Rochelle, IL
Their Strategic Plan for Recruiting Retail:
• Commercial/Retail Development Coordinator• City Goals & Priorities• Buildings & Sites Database• Intentional Marketing Strategy• Public-Private Partnerships
Case Study – Marion, IN
Their Process for Guiding Development:
• Planning: master plan, potential sites, inventory
• Assessing: ownership and title status, community input, feasibility analysis
• Managing: site control, assembly, preparation, partnerships, funding mechanisms
• Implementing: assign to end user or developer, integrate use, construction
• Fun: watch developer make tons of cash
McKinney targeted retailers matching their trade area profile
Example: Match to World Market profile
Case Study – McKinney, TX
El Dorado Plaza
Case Study – McKinney, TX
Retailer/Restaurant Sales in Millions Preferred GLA
Ann Taylor $2.44 5,000
Belk $10.30 50,000-180,000
Cost Plus World Market $4.01 18,300
Lane Bryant $1.03 4,200-5,500
Linens & Things $5.44 35,000
Pier One Imports $1.70 9,000-20,000
Talbot’s $1.67 3,700-5,000
Over $1 million in public revenue!
Case Study – McKinney, TX
Key Steps in Strategy Development
Step 1. Delineate Your Trade Area
Step 2. Identify and Profile Your Customers
Step 3. Match Customers to Retailers
Step 4. Provide Customized Marketing Packages
City Limits
8 Mile Ring
15 MinuteDrive Time
Population 9,947 15,715 25,583
Retail Potential$450
million$750
million$1 billion
Restaurant Sales
$41 million
$64 million
$100 million
Automobile Sales
3,243 vehicles
4,522 vehicles
6,968 vehicles
Types of Trade Areas Compared
Drive Time Trade Area
City Limits
Population 9,947
Retail Potential$450
million
Restaurant Sales
$41 million
Automobile Sales
3,243 vehicles
City Limits
8 Mile Ring
Population 9,947 15,715
Retail Potential$450
million$750
million
Restaurant Sales
$41 million
$64 million
Automobile Sales
3,243 vehicles
4,522 vehicles
Core Customers
This profile represents the makeup of a community
Retailers Locate Near Customers
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Community Profile
Core Customers
A retailer profile is then compared to your community profile. The blue bars represent the core segments for the retailer.
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XYZ Company Community Profile
Retailers Locate Near Customers
Now, customers can be identified based on:
LifestylesPurchase
BehaviorMedia Habits
For retailers: It’s Customers, Not People
Psychographics vs. Demographics
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All U.S. households fall into 1 of 66 psychographic segments
Segmentation
The City of Richmond / Wayne County’s Purpose
To identify retailers and restaurants that best fit the market trade area
ApplicationThe City of Richmond and Wayne County can
now focus resources on recruiting specific retailers that match the trade area’s
consumers while working with existing businesses to grow the retail marketplace.
CommunityID
CommunityID
Results:• Incorporated the drive time trade areas for primary & secondary trade area
• Incorporated the household profiles of the consumers in these trade areas
•Matched specific retailers with core customer profiles that are like your households
•Provided retail recruiting packages customized for each targeted retailer
•Developing an outdoor recreation destination retail analysis
CommunityID – Overview of Findings
•Strong demand for goods and services by consumers living in the primary trade area.
•Good overall mix of “core customers” within the trade areas.
•140+ retailers and restaurants identified as having a market in your area.
•Multiple access points/exits along heavily-traveled Interstate 70 a big plus in recruiting new business.
Trade Area: Overview Map
Overview: Secondary Trade Area
Segmentation: Primary Trade Area
Segmentation: Secondary Trade Area
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Upscale, empty-nesting couples College-educated professionals Leading citizens of their small-town community Maintain large investment portfolios Spend freely on computer technology
Segment 9 Big Fish, Small Pond
Psychographics focus on
Customer Lifestyles
Lifestyles
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Psychographics focus on
Customer Lifestyles
Purchasing Behavior
Segment 9 Big Fish, Small PondItem # Lifestyle Characteristics Index
1 Belong to country club 4472 Shop at Talbots 3983 Travel to Germany 3434 Buy women's slacks $100+ 2935 Own/lease new volvo 275
Over 4500 individual categories available
Purchase Behaviors
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Middle-class couples, 50-60 years old
Own home in a small-townHave a granola-and-grits lifestyle Read Country Living, Gourmet,
ForbesBuy recreational vehicles and
campers
Segment 28 Traditional Times
Psychographics focus on
Customer Lifestyles
Lifestyles
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Psychographics focus on
Customer Lifestyles
Purchasing Behavior
Segment 28 Traditional TimesItem # Lifestyle Characteristics Index
1 Drink Diet Rite Cola 3702 Own/Lease New Buick 3203 Own a Camper 2984 Travel to Alaska 2355 Order from L.L. Bean 230
Over 4500 individual categories available
Purchase Behaviors
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Singles and couples over 65 years old Own lower-middle-class, rural homes Held blue-collar jobs, pre-retirement Many served in the militaryMost members of veterans clubs
Segment 38 Simple Pleasures
Psychographics focus on
Customer Lifestyles
Lifestyles
0
1
2
3
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1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65
Segment 38 Simple Pleasures
Psychographics focus on
Customer Lifestyles
Purchasing Behavior
Item # Lifestyle Characteristics Index1 Belong to a Veterans Club 2852 Watch Jeopardy!,3-5 Times/wk 2503 Own Riding Lawn Mower 2084 Church board member 1885 Shop at Walmart 172
Over 4500 individual categories available
Purchase Behaviors
Primary Trade Area Retail Trade Potential
Secondary Trade Area Retail Trade Potential
Retailers and Restaurants Matched
Bed Bath & Beyond Match Report
Bed Bath & Beyond Match Report
Best Buy Match Report
Best Buy Match Report
A 60-minute drive-time trade area was defined to provide a snapshot of the destination retail potential.
Destination Retail – Trade Area
Destination Retail – Segmentation
Destination Retail – Dollar Demand
Strategy + Execution =
Success
•Retail specific material•Aggressive marketing•Developer relationship building•Use real estate brokerage community
Next Steps – Marketing to New Business
•Be realistic
•Remember … retailers come in many shapes and sizes
•Retail diversity is important
•Take some chances…don’t limit yourself
Next Steps – Marketing to New Business
•Realistic trade area delineation
•Retail trade potential of residential population identified and detailed
•Evaluation of consumer tendencies (PRIZM information)
•Opportunities, not Threats…
Next Steps – Marketing Opportunities for Existing Businesses
• ICSC (International Council of Shopping Centers)
• Focuses on:– Membership– Education– Research– Government Relations– Meetings/Conferences
• 56,000 members• Ongoing Buxton Support at the Las Vegas
conference
Leveraging ICSC
CommunityID SCOUT 2.0
Market your community using SCOUT’s dynamic online tools
Click to show your site
Click to show the trade area
Click to show the retailer’s
dominant segment
households
Enter SCOUT together with your target
retailer
Click Match Report to show the retailer you are their target
market
CommunityID SCOUT 2.0
Market your community using SCOUT’s dynamic online tools
Click on a Retailer Marketing Package to show all the data relative to the target retailer and your community
You can send this and other reports electronically to your prospect