Introduction to the Market Analysis Process...Purpose of a Market Analysis 1. To support business...
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Webinar Session #1, September 18, 2012 (1:00 PM - CT) Ryan Pesch (Minnesota-Extension), Bill Ryan (Wisconsin-Extension); and Bruce Schwartau (Minnesota-Extension); Working with local and regional Extension educators in Illinois, Minnesota and Wisconsin Introduction to the Market Analysis Process Funding - North Central Regional Center for Rural Development (NCRCRD) Seed Grant
Transcript of Introduction to the Market Analysis Process...Purpose of a Market Analysis 1. To support business...
Webinar Session #1, September 18, 2012 (1:00 PM - CT)
Ryan Pesch (Minnesota-Extension), Bill Ryan (Wisconsin-Extension);
and Bruce Schwartau (Minnesota-Extension);
Working with local and regional Extension educators in Illinois, Minnesota and Wisconsin
Introduction to the Market Analysis Process
Funding - North Central Regional Center for Rural Development (NCRCRD) Seed Grant
Presenter
Presentation Notes
Bill R. Purpose of Market Analysis: To provide a plan for a vibrant downtown economy helps businesses improve sales; explores business development opportunities; and demonstrates the importance of downtown. Our job is to help you complete a study toolbox instruction Learn from each other Today we are going to: Become familiar with each others issues Highlight certain components of the on-line toolbox
Purpose of a Market Analysis 1. To support business development
with reliable data that accurately describes the market.
2. To research issues specific to your particular community.
3. To provide a foundation for developing economic development strategies for a business district.
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BRUCE S. Investors and entrepreneurs need reliable data as they make business decisions. This may include information about customer purchasing trends, local competition, regional competition, demographic & income patterns, as well as the understanding of how existing businesses view this community as a place to do business. This type of information is useful to an individual entrepreneur but it is also useful to look at all of these items when city leaders are developing a comprehensive strategy for their business district. By being proactive they stand a better chance of keeping their current businesses or understanding what type of businesses might be able to fill any empty stores when that situation arises. A well-maintained plan helps separate out a dream from a realistic target.
http://fyi.uwex.edu/downtown-market-analysis/
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Bill R. self-help resource Or w/ help of an Extension educator url or simply Google “Downtown Market Analysis. 20 sections. Some sections are required while others are optional depending on your research objectives. Three parts: Part I. - Understanding the market – These 7 sections help you collect data on your customers, your competition, and your community. tools to collect readily available secondary data (like demographics) tools to conduct primary research (like business owner or consumer surveys).
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Bill R. Part III. - Putting your research to work These 7 sections are designed to help you develop an action plan from your research.
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Bill R. Part III. - Putting your research to work These 7 sections are designed to help you develop an action plan from your research.
I. Understanding the Market
Trade Area Analysis
Factors to Consider: • Population • Proximity of competing
centers • Local mix of businesses • Local destination attractions • Traffic patterns
Tools to Use: • Focus groups • Mapping using geographic
features (distances, highways, drive-times, etc.)
• Mapping using customer addresses and zip codes
A trade area is the geographic area from which a community generates the majority of its customers. A community may have both a convenience and a destination trade area.
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RYAN P. 1st step Need to also look at non-residents Tourists Drive through
Establishing Trade Area(s) Using GIS
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RYAN P.
I. Understanding the Market
Demographic & Lifestyle Analysis
Demographic Data: • Population and households • Housing ownership and value • Income • Age, gender and ethnicity • Educational attainment • Employment
Lifestyle Data: • Households in a trade area
are segmented into unique clusters that describe their lifestyle, characteristics
• Examine spending propensity for a variety of goods and services
Demographic and Lifestyle data can provide insight into local consumer buying behaviors and preferences. Comparison are made to state and national averages.
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BRUCE S.
Analysis of Trade Area(s) Using Tables and Maps
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BRUCE S. ESRI Business Analyst online Compare with State Key data: Population and growth Household income Age
I. Understanding the Market
Business Owners Survey
Purpose of Questions: • provides information on
business needs to support retention and expansion efforts.
• Allows business community to share ideas for new economic activity in the community.
Possible Methods to Use: • Written Survey • Telephone Survey • Web-Based Survey • Business Visitations • Focus Groups
A business owner survey invites business owners to share their perspectives regarding the current and future economic health of the business district.
Presenter
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BILL R. This type of survey is valuable because: It can identify ways to help existing retailers It can engage businesses in the search for ways to improve the economic health of downtown. The toolbox offers various methods to conduct survey research including written and web-based techniques.
Provides Information on: • Who they are and how to
reach them. • Where, when and why they
shop for various goods and services
• How downtown can be improved in terms of retail as well as other uses.
Possible Methods to Use: • Written Survey • Telephone Survey • Web-Based Survey • Social Media • Intercept Surveys • Focus Groups
A survey can help you understand the attitudes and shopping behaviors and preferences of current and potential consumers specific to your trade area.
I. Understanding the Market
Consumer Survey
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BILL R. These surveys can help local businesses learn how to serve their trade area better. Surveys can include questions like” Why don’t you shop downtown? What products and services are lacking? How can the business district be improved? Again, the toolbox offers a variety of tools including written and web-based surveys
Surveys – Download Examples and Templates
Toolbox includes: • Question-bank to help you
determine what questions are most relevant to your analysis
• Downloadable survey templates that can be customized for your community.
• Examples of surveys that have been customized and implemented in various cites.
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BILL R. The business owner and consumer survey sections include sample questions that could be included in your survey research. Standardized survey instruments can also be downloaded in Word and customized for your local needs.
Structure of Sessions: • 7-10 people with common characteristics (perhaps same
market segment) • Minimum of three groups • Conducted by a trained facilitator • Non-threatening environment • Used to understand human behavior • Not used to collect facts
A carefully planned discussion to collect qualitative data about feelings and perceptions regarding the downtown area.
I. Understanding the Market
Focus Groups
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RYAN P.
Includes tools for estimating demand and supply for selected business categories. Business opportunities are examined in terms of quantitative and qualitative factors
Realistic Retail/Service
Business Opportunities
Demand Supply
Reasonableness Check
II. Analysis of Opportunities by Sector
Examining Retail Opportunities
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RYAN P. Estimate demand and supply in SQ Feet for selected categories. Consider findings from other market analysis components Surveys Focus groups Peer cities Where are the gaps?
Includes techniques for estimating demand and supply for various downtown uses. To the extent possible, opportunities are examined in terms of quantitative and qualitative factors
II. Analysis of Opportunities by Sector
Analysis of Other Property Uses
• Restaurants • Arts and Entertainment • Housing • Office Space • Lodging • Light Industrial
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BILL R. Encourages communities to consider mixed uses for its downtown. Mixed uses generate traffic for various purposes at various times throughout the day and week. Businesses can benefit from the synergy created by mixed uses.
• Niche Development • Space Usage • Image, Branding, Marketing • Business Retention/Expansion • Business Recruitment • Entrepreneurship • Benchmarking
Market analysis findings can provide a solid and objective foundation for launching economic development strategies for your district.
III. Putting Your Research to work
Using Your Market Analysis
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Bill, Bruce, Ryan Niche Development – Does the analysis indicate the opportunity to become a retail or service niche destination? a niche market means you can attract customers from a wider area. Arts community or antique, restaurants, weddings or home furnishings? Or, do you have a particular consumer niche like college students, retirees, tourists, office workers, artists? Space Usage – being a successful downtown often means finding the optimal mix of building and space uses. What is the compatibility with surrounding uses? Does clustering business types make sense? What type of visibility does the business need (1st floor retail on a main street or a legal office on a side street?)
