2. Analysis of Micro-Zones
For the analysis of potential locations, in some cities with a lage number of administrative areas (such as London or Paris) it is sufficient to use only national statistics, while in others (such as Ho Chi Minh with 19 districts) it is preferable to use a more detailed analysis. Therefore, Geomatrix also provides the analysis of micro-zones. Micro-zones are the squares of territory, 400×400 meters, which allow geomarketing research to be performed with much more precision and accuracy. Micro-zones show the distribution of permanent population, the density of mobile devices geo-signals, the concentration of people around POIs.
For example, in Ho Chi Minh, after analyzing 67784 residential blocks that were divided into 3128 microzones with the average population by micro-zone of 2511 people, it is possible to identify the most populated micro-zones with a highest population 19119 people.
This analysis allows retailers to spot the best street retail locations within micro-zones in chosen cities.
3. The Accessibility Area analysis – a Market size analysis
The size of the accessibility area is the key indicator when choosing a location for a new store. The size of the area directly affects the number of customers who will visit your store. Moreover, the calculation of the accessibility area depends on the format of your future store. If we are talking about the format of a local store for daily needs, then it is necessary to analyze the pedestrian accessibility zone. If we consider the opening of a supermarket or hypermarket, then we should calculate the transport accessibility zone.
Compare these two accessibility zones through the Carrefour Singapore’s case (434 MacPherson Road, Singapore):
It should be noted that one of the most common mistake in choosing a method of estimating a sales point is to estimate only one location. After all, the ultimate goal of all, even the most complex techniques, is to identify from several different proposals the best object, which has the maximum potential.
Accessibility area studies show very pertinent results in order to screen, rank, and select best options between several potential locations. Nevertheless, when arises the need to determinate the potential traffic and turnover of a retail outlet, more robust analytics should be used, such as catchment area analysis.
Light-blue coloured zone is the accessibility area. Within this area are operating competitors – they are shown as purple dots. Squares of green and yellow shades are the catchment area, which lies within the accessibility area. The greener a square is, the more suitable the zone is for opening a new trade point (is in the accessibility area; no competitors). Accordingly, the closer to competitor’s territory, the more yellow becomes the zone. If there are no squares, it means that this territory is occupied by other companies.