Catchment Area Analysis
CHAPTER 1- INTRODUCTION
1.1 Introduction to Catchment analysis
Catchment analysis is originally a study to identify an ideal location for establishment of a new retail outlet but it can be helpful to identify potential customer base in any geographical area for existing retail outlets. This study includes study about various geo-demographic factors like occupation, mother tongue, education standard etc. and help in understanding customer preferences, accessibility in buying, purchase intentions buying patterns and likelihood of buying for the group of products that the retailer deals with and level of competition in that area. The final outcome of catchment area analysis provides the retailer an idea about number of customers who can visit the store and kind of products that will be in demand and the stock he need to maintain in order to meet the demand in selected location. Importance of catchment can be seen in the point that if all retail companies are offering same products and services within same price range and quality standards than we can easily say that the population within the catchment will do all its purchasing at the nearest centre. However in practicality it‟s not possible that different retail companies are same and people have to travel to their preferred destination for purchasing instead of their nearest one. Differences between similar stores can affect the spending pattern in the present time, but it is important to see how changes in various demographic factors and infrastructure development in competing locations will have impact on such store in future. Catchment analysis pre launch will ideally decide the product mix and formats of the stores, catchment analysis done from time to time will give information about what is happening and where to concentrate marketing energies to get more walk-ins. The total catchment area, of a store is useful information to decide a store location and post store opening marketing energies focus. The
1.1 Introduction to Catchment analysis
Catchment analysis is originally a study to identify an ideal location for establishment of a new retail outlet but it can be helpful to identify potential customer base in any geographical area for existing retail outlets. This study includes study about various geo-demographic factors like occupation, mother tongue, education standard etc. and help in understanding customer preferences, accessibility in buying, purchase intentions buying patterns and likelihood of buying for the group of products that the retailer deals with and level of competition in that area. The final outcome of catchment area analysis provides the retailer an idea about number of customers who can visit the store and kind of products that will be in demand and the stock he need to maintain in order to meet the demand in selected location. Importance of catchment can be seen in the point that if all retail companies are offering same products and services within same price range and quality standards than we can easily say that the population within the catchment will do all its purchasing at the nearest centre. However in practicality it‟s not possible that different retail companies are same and people have to travel to their preferred destination for purchasing instead of their nearest one. Differences between similar stores can affect the spending pattern in the present time, but it is important to see how changes in various demographic factors and infrastructure development in competing locations will have impact on such store in future. Catchment analysis pre launch will ideally decide the product mix and formats of the stores, catchment analysis done from time to time will give information about what is happening and where to concentrate marketing energies to get more walk-ins. The total catchment area, of a store is useful information to decide a store location and post store opening marketing energies focus. The