MapInfo Forums 2014Find the GapA case study of strategic expansion
Bob Schwartz
Chief Economist, Pitney Bowes Software
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Business Problem:
How to be more proactive in location
decision-making
Many clients come to us because they
want to put some ‘science’ behind
their decisions.
This client came to us because they
had been too dependent on
opportunities coming to them.
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Client:
Major consumer-facing organisation
They need large floorplates for their
stores.
As such, they rely on developers
coming to them.
Often, the developers need them,
rather than the other way around.
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Desired Location:
Not necessarily in a shopping centre
Consumers come to the client.
The company wants to find those
areas that are currently un-served or
under-served.
So, where do you start?
Well, how about Brisbane?
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Next, we put in our clients
stores and all of their
competitors stores
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Then, we calculated a 15
minute drive time around each
location.
With this, it is now possible to
see whether there are any
unserved areas.
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We then calculated a measure
of persons per square metre
of floorspace.
The darker the colour, the
more underserved the area.
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Armed with this information,
we were then able to pinpoint
areas to investigate.
The stars represent potential
unserved or underserved
sites.
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The client needs a catchment
of 75,000 people.
The circles around the
potential sites represent the
size of the trade area that is
needed to reach the
necessary population.
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The area around Deception
Bay is less densely populated
than Mango Hill.
Thus, Deception Bay has to
draw from a much larger
catchment to reach 75,000
people.
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The previous slide showed
that both areas had a large
number of underserved areas
(the regions in blue).
The next slide shows those
areas (SA1s) with at least 400
people resident.
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The next slide shows the
thematic of daytime
population. The stronger the
colour, the higher the daytime
population.
Here, as with the population,
Mango Hill is stronger than
Deception Bay.
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Finally, we look at the per
capita spending on the
products and services that are
important to our client.
The darker the area, the
higher the spending.
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The end result is that Mango
Hill is a better location than
Deception Bay.
Mango Hill has higher
spending, more residents and
higher daytime population.
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There’s No Magic Involved
Good data leads to good analysis
Data that was used in the project
Census
Estimates and Projections – Pitney Bowes Current Income
Future Population
Daytime Population – Pitney Bowes
Consumer Spend Potential – Pitney Bowes
Client data
Thanks for your time