For the analysis week, two additional market areas were defined for the existing Better Books stores to try to determine which market area best represents the distribution of Book Club Lovers Members for each of the stores. Remember, from last week the first defined market area was a 1-mile buffer around the store. The second market area is based on percentage of store sales to book club members wherein 0-60% of a stores sales are made by members within the inner ring and 60-80% of the stores sales are made by members in the outer ring. The third market area is defined based on driving times. It has an inner ring composed of members within a 0 - 1 minute drive time and the outer ring is within a 1 - 3 minute drive time.
Based on comparisons made using data from the GIS obtained mostly through spatial queries (i.e selection by location) and the summarize function, the 0%-60%/60%-80% model was chosen to be the best model to use for market analysis due to it's demographic and sales information being the closest to the actual distribution of Book Club Lovers Members. Further analysis from the data compiled last week shows that the Steiner store should be the model for locating the new site as it has higher sales, higher average sale per order and per customer and has a lot more positive demographics then the Bosworth store based on the 0%-60%/60%-80% market area report (More households, higher average income, net worth and home values, higher population growth, greater diversity).
With the model store identified, new properties can now be evaluated to look for similar demographic information. Six properties are available but only three meet the initial criteria for new sites (one was rejected because it was zoned for industrial use, the other two where with the 1-mile market are of the two existing stores). The demographic information for the three sites will be compared and reported during the Report phase of the assignment.
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