Location Strategy

Anuradha Gaikwad
Introduction

 A space you lease for the selling of

goods to consumers
Market Coverage strategies

 Intensive Market Coverage

 Selective Market Coverage

 Exclusive Market Coverage

Importance of Location in Retail Business

 Business location is a unique factor which the competitors cannot imitate. Hence, it can
give a strong competitive advantage.
 Selection of retail location is a long-term decision.
 It requires long-term capital investment.
 Good location is the key element for attracting customers to the outlet.
 A well-located store makes supply and distribution easier.
 Locations can help to change customers’ buying habits.
General Guidelines for Location Selection

 Define Goal & Objective

• Type of store desired
• General location desired
• Potential revenue
• Specific type of location
• Desired size of store
• Merchandise mix
• Level of customers to be offered
• Expected catchment area/ footfall
• Total cost, expected walk-ins
Analyse Market Dynamics

 Policies like FDI

 Influx of investment

 Emergence of new economic zones/ townships

 City level economic indicators

 Assess sustainability of economic growth

Analyse Economic Base of Target Population

 Demographic information
 Income / Employment stability
 Movement of major players
 Future prospects of income / employment
 Unemployment rate
 Local cultural societal characteristics
 Total disposal income
 Income class & purchasing power
Retail business centres

 Retail mapping
 Retail positioning perceptual image
 Retails centres
 Consumer drawing power of existing centres
 Analyse highest retail potential & walk-ins
 Existing players
 Quality of potential / current area
 Availability of floor space
 Depth / width of brand
 Presence of International brands/ chains
Other infrastructure –related considerations

 Existing roadways

 Projected network

 Accessibility with respect to present infrastructure

 Traffic flow patterns

 Visibility of the store

 Convenience of reaching the shop

Legal considerations

 Permissions

 Legal issues

 Zoning issues

 Regulations
Competition Analysis

 Identify key players

 Retail coverage, relative market share & profitability
 Connections with channel partners
 History of firm
 Average weekly footfall
 Brand positioning
 Evaluation of competitors management/ organisational strengths
 Store infrastructure
 Support facilities
 Merchandising policies
 Operating polices