LESSON 4 Location Analysis

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LESSON 4 Location Analysis
"It's a question of whether we're going to go
forward into the future, or past to the back." 
                   ...V.P. Dan Quayle
Introduction Identify factors that are important
to the decision of where to locate. 
 Objective  Determine what constitutes a
good location for your business and identify a
logical address choice for a business.
Determine the appropriate look for a
business represented by exterior, interior,
layout, etc. that emphasizes the appropriate
image.
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Lecture Point One
Location, location, location.  You've heard that
slogan many times. It's true.  Your business
location is crucial to effective the interception
of your target customer at the moment they seek
your goods/services.  If you have a physical
location (e.g. barber shop or gift shop), you
must consider the proximity of that location to
your target, then the route they will likely
take, as well as the time of day they will
travel that route.  Many services are
established as home-based businesses--negating
the need to be accessible from the customer's
point-of- view, but you must still consider
the logistics of your travel to the customer. 
Paper In AM
Cleaning in PM
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Finally, if your business is virtual (on the
Internet), your location is determined by the
logic of the access portal to your business and
the search engines (where keywords are more
important that cross-streets) looking for your
page. So, the definition of location (as it fits
the broad concept of business) would be, "being
available where and when your customer needs
you."  It's time to examine what your textbook
has to say on the topic, please go to the Study
Quiz 4.
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Lecture Point Two

• If your business is a physical location, you
  should examine your setting at three broad
  levels  general neighborhood, store exterior,
  and store interior.  Let's examine these factors
  in more detail
• General location.  Do my customers want me  near
  their home, work, near a major thoroughfare,
  during lunchtime, quickly accessible?  Determine
  trends affecting the location choice--is
  neighborhood increasing or decreasing in quality
  (both physically and its ability to attract your
  target customer). 
• Locate near successful stores, and
• parallel businessesthose that also
• attract your target.  Avoid being near
• stores that repel your target
• (eg. strip-club near a day-care center), or
• that monopolize the shared parking-lot. 

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• If you are locating in a
• mall setting, make sure
• there is an excess
• vacancy clause (you
• can vacate without
• penalty if store vacancies
• exceed XX). Note the
• two vacancy signs next
• to this restaurant.
• When you write your business plan, it is likely
  (if you have a physical location) that you will
  prepare a site-map.  This involves a simple
  aerial view of the immediate area showing the
  access to your site and identification of local
  businesses. You will also want to indicate
  traffic patterns and entrance/exit patterns (or
  problems) Here is a sample.

Vacancies
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• Store exterior.  If possible, the outside
  appearance of your store should be consistent
  with your unique identity.  It should be
  functional (secure, easily
• accessible by all your customers). 
• It should have good lighting, lack of
• clutter, doors large enough to
• accommodate customers with parcels
• or handicapped.  The parking should
• be easily accessible (especially convenience
  stores)--easy in and out of the store and the
  adjacent parking area.
• Be sure to consider the traffic pattern--you
  should be on the right side of the road on the
  way to or from work--depending on when your
  customer needs you.  Not only should your
  store be visible, you should avoid
  locating where medians will block
  customers from making a left-turn into your
  parking area.  

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Store interior.  The customer is drawn to your
product through all their senses.  You should
attempt to adapt your interior setting to appeal
to your target.  These factors include sight
appeal (visually supports your chosen image),
sound appeal (sounds include music compatible
with target's interests and avoids unwanted
noises), scent appeal (avoids unpleasant odors
and includes scents that support concept), touch
appeal (sales increase if customers can get their
hands on the merchandise and try it out), and
taste appeal (a slam-dunk for restaurants,
or you could offer snacks??)  Scented
candles will support some store images, but
wouldnt be appropriate in others. The
juke-box is perfect for the 5 and Diner, but
Nordstroms provides live classical piano music.
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Most important, your store interior design should
reinforce the image you intend to project.
Whether it is a warehouse-look to emphasize
volume and barebones low-cost, or  a luxury
image, it must project what mindset you want
your customer to have upon en try to your
store.  If your name and promotion image centers
on "discount", having an interior design and
other supporting elements that look
"up-scale" will confuse your customer and
will not produce the desired response.
Your next project will guide you through a
thinking and research process that should help
clarify most of your location considerations.  
This is the all-important Location Analysis.
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Business F
Business D
Business C
Business E
Business G
Business B
Business A
Traffic Flow
Your location
Business I
Business H
Business J