Geodemographics is the “analysis of people by where they live” (Sleight, 1997, p. 16). It is the suggestion that WHERE you are, says something about WHO you are; that knowing where someone lives provides useful information about how that person lives. To quote some product advertising, it is the possibility that “we know who you are, because we know where you live”. It is a simple idea – one that has shown itself to be of commercial value and the catalyst of a rapidly growing and globalizing industry. Continue reading Geodemographics, GIS and Neighbourhood Targeting – Richard Harris, Peter Sleight, Richard Webber
Consumer packaged goods are small, non-durable items that are generally bought at the grocery store. These might include soda, breakfast cereal and laundry detergent. Like most retailers and manufacturers of consumers’ goods of any type, the consumer packaged goods industry is beginning to use micro-marketing techniques (Buxton 1993). Through using a sophisticated combination of databases and manipulation techniques, product marketing programmes can be developed at the retail chain level. In the US, almost all grocery stores use check-out scanners. These scanners read a bar-code on each product and automatically provide the price of the product. This is convenient for stores because they can change the price of the product (such as for a sale) without having to re-tag each item. Not only is this convenient for stores, but because of this process, a very rich database of what brand’s products are purchased at what stores is generated. These data are aggregated into approximately 50 “scanner markets” that cover various portions of the US. By combing these data with the demographics that tend to drive product demand, such as age and income, a buying power index (BPI) can be modelled for stores. The BPI indicates how much of various products could be sold at that store. By knowing a store’s BPI, the retailer can improve the product mix (micro-marketing) to “push through more product” – to use the industry jargon.
Levi Strauss & Company (LS&Co) is a good example of a product retailer that has begun to use geographical technology to customize “product mix”, or the combination of products available in specific stores (Allen 1993). LS&Co is one of the world’s largest clothing manufacturers, and sells many product lines in addition to Levi’s jeans. Unfortunately, the company’s sales had been lagging significantly primarily as a result of mergers, acquisitions, price wars and significant retailers such as GAP chain creating their own product lines instead of selling LS&Co’s products. Continue reading GIS FOR RETAIL AND PRODUCT MIX – GIS for Business and Service Planning
After “the past and present of customized and proprietary GIS”, the authors continue with the “GIS futures” at the time, specially for retailers – both for site selection and for other tatics, like retail performance modeling and network performance modeling too.
“Given the range of issues that retailers are now addressing and the more complex problems that GIS will need to consider, proprietary system development must proceed by responding very sensitively to the needs of the client. Only in this way will development remain relevant. There will be a greater role for additional support services alongside software systems and a greater need for tailored and customized solutions for particular problems. Continue reading GIS FUTURES – 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
Esri has a 43% share in the geographic information system (GIS) market, compared to just an 11% share from the second-largest supplier. The business model relies in constantly improved industry-specific solutions. Continue reading ESRI LEADERSHIP IN GIS GLOBAL MARKET