Case Study – GIS IN THE AUTOMOBILE INDUSTRY – GIS for Business and Service Planning

The automobile industry is a sector that has long recognized the importance of geographical planning and analysis. All the main auto manufacturers distribute their products to the market via a network of franchise dealers. These dealers are independent businesses but are allocated an exclusive geographical territory to which the manufacturer agrees not to assign any other dealer, subject to the existing dealer meeting certain performance criteria. Clearly most manufacturers aim to maximize their market share and profitability in their market. From analysis of the voluminous amounts of registration data it is clear that there is a very strong relationship between market share and dealer location. In other words the more dealers the manufacturer appoints. The greater the likely market share. However, this is traded off against the fact that as market share increases there are diminishing returns and the sales of each dealer reduce, thus affecting individual dealer profitability and, possibly, the scope for retail price discounting. As a consequence, manufacturers are trying to find a balance between maximizing market share whilst at the same time ensuring that each individual dealership is a profitable business in its own right.

Achieving this balance requires a thorough understanding of existing market performance and the ability to examine alternative scenarios through an intelligent GIS approach. Continue reading Case Study – GIS IN THE AUTOMOBILE INDUSTRY – GIS for Business and Service Planning

Combining Drive-Time Analysis with Geodemographics – GIS For Business and Service Planning

It is possible to look at a published example which demonstrates the method. The example is drawn from a description of a method used at the Oxford Institute for Retail Management to estimate (ante post) potential revenues at the Meadowhall shopping centre using a combination of geodemographics and spatial analysis based on comparisons to Gateshead’s Metro Centre, a shopping centre of a similar type, which had been opened in the mid-1970s (OXIRM 1990). Continue reading Combining Drive-Time Analysis with Geodemographics – GIS For Business and Service Planning

Geodemographics – GIS for Business and Service Planning

DATA SOURCES AND THEIR GEOGRAPHICAL INTEGRATION

Geodemographics has come into use as a shorthand label for both the development and the application of area typologies that have proved to be powerful discriminators of consumer behaviour and aids to “market analysis”.

Continue reading Geodemographics – GIS for Business and Service Planning