chapter 15: location/layout 1 location, layout, and physical facilities

Chapter 15: Location/LayoutChapter 15: Location/Layout 11

Location, Layout, and Physical

Facilities

Location, Layout, and Physical

Facilities


Choosing a Location:Choosing a Location:Sources of InformationSources of Information

Census Data (see http://www.census.gov).Census Data (see http://www.census.gov). Survey of Buying PowerSurvey of Buying Power.. Editor and Publisher Market GuideEditor and Publisher Market Guide.. Rand McNally's Commercial Atlas and Rand McNally's Commercial Atlas and

Marketing GuideMarketing Guide.. Zip Code Atlas and Market PlannerZip Code Atlas and Market Planner..

KeyKey: Selecting the site that serves : Selecting the site that serves the needs of the business's target the needs of the business's target market most efficiently.market most efficiently.


Geographic Information Geographic Information Systems (GIS)Systems (GIS)

Computerized programs combining map-Computerized programs combining map-drawing with database management drawing with database management capability.capability.

Search through virtually Search through virtually anyany database and database and then plot the results on a map.then plot the results on a map.

Visual display reveals otherwise hidden Visual display reveals otherwise hidden trends.trends.


Selecting the StateSelecting the State

Proximity to marketsProximity to markets Proximity to raw materialsProximity to raw materials Labor supply needsLabor supply needs Business climateBusiness climate Wage ratesWage rates


Selecting the CitySelecting the City

Population trends and densityPopulation trends and density CompetitionCompetition Index of Retail Saturation (IRS)Index of Retail Saturation (IRS)


Index of Retail Saturation Index of Retail Saturation (IRS)(IRS)

C = number of customers in the trading areaC = number of customers in the trading area RE = retail expenditures. The average expenditure RE = retail expenditures. The average expenditure

per person ($) for the product in the trading area.per person ($) for the product in the trading area. RF = retail facilities. The total square feet of selling RF = retail facilities. The total square feet of selling

space allocated to the product in the trading area.space allocated to the product in the trading area.

IRS = IRS = C x REC x RERFRF

where . . .where . . .



CostsCosts Local laws and regulationsLocal laws and regulations Compatibility with communityCompatibility with community Quality of lifeQuality of life

Population trends and densityPopulation trends and density CompetitionCompetition Index of Retail Saturation (IRS)Index of Retail Saturation (IRS)



Transportation networksTransportation networks Police and fire protectionPolice and fire protection Public servicesPublic services Location’s reputationLocation’s reputation

(continued)


Location Considerations for Location Considerations for Retail and Service Business Retail and Service Business

Trade area sizeTrade area size Retail compatibilityRetail compatibility Degree of competitionDegree of competition Transportation networkTransportation network Physical, fear, or political barriersPhysical, fear, or political barriers

Customer trafficCustomer traffic Adequate parkingAdequate parking Room for expansionRoom for expansion VisibilityVisibility


Retail and Service Retail and Service LocationsLocations

Central Business Districts (CBDs)Central Business Districts (CBDs) Neighborhood LocationsNeighborhood Locations Shopping Centers & MallsShopping Centers & Malls


Shopping Centers Shopping Centers and Mallsand Malls

Neighborhood Shopping CentersNeighborhood Shopping Centers 3 to 12 Stores; anchor is 3 to 12 Stores; anchor is

supermarket or drugstore.supermarket or drugstore. Community Shopping CentersCommunity Shopping Centers

12 to 50 stores; anchor is 12 to 50 stores; anchor is department or variety store.department or variety store.


Regional Shopping MallsRegional Shopping Malls50 to 100 stores; anchor is one or 50 to 100 stores; anchor is one or

more major department stores.more major department stores. Power CentersPower Centers

Combines drawing power of a Combines drawing power of a mall with convenience of mall with convenience of neighborhood shopping center.neighborhood shopping center.

Shopping Centers Shopping Centers and Mallsand Malls


Retail and Service Retail and Service LocationsLocations

Near CompetitorsNear Competitors Outlying AreasOutlying Areas Home-based businessesHome-based businesses

Central Business Districts (CBDs)Central Business Districts (CBDs) Neighborhood LocationsNeighborhood Locations Shopping Centers & MallsShopping Centers & Malls


The Location Decision for The Location Decision for ManufacturersManufacturers

Foreign Trade Zones (FTZs)Foreign Trade Zones (FTZs)


Figure 15.2. How a Foreign Trade Zone (FTZ) Figure 15.2. How a Foreign Trade Zone (FTZ) Works. Works.

No FTZNo FTZ

Imported Parts Imported Parts and Materialsand Materials

Store

Assemble

Package

Manufacture

Process

Mix

Imported Parts Imported Parts and Materialsand Materials

FTZFTZ

DutyDutyPaidPaid

NoNoDutyDutyPaidPaid

U.S.U.S.SalesSales

ExportsExports

U.S.U.S.SalesSales

ExportsExports

DutyDuty

Small Company

PaidPaid


The Location Decision for The Location Decision for ManufacturersManufacturers

Enterprise zonesEnterprise zones Business incubatorsBusiness incubators

Foreign Trade Zones (FTZs)Foreign Trade Zones (FTZs)


Layout: External FactorsLayout: External Factors Size - Is the building large enough to accommodate the Size - Is the building large enough to accommodate the

business? business? Create the proper image or "personality" for the business in Create the proper image or "personality" for the business in

the customer's eyes.the customer's eyes. Develop creative window and in-store displays.Develop creative window and in-store displays. Choose appropriate storefront design.Choose appropriate storefront design. Entrances must Entrances must inviteinvite customers in. customers in. Building must comply with Americans with Disabilities Act.Building must comply with Americans with Disabilities Act. Pay attention to the business sign, the most direct method of Pay attention to the business sign, the most direct method of

reaching potential customers.reaching potential customers.


A Business Sign...A Business Sign... tells potential customers who you are tells potential customers who you are

and what you're selling.and what you're selling. must comply with local sign ordinances.must comply with local sign ordinances. should be visible, simple, and clear.should be visible, simple, and clear. should be changed periodically to avoid should be changed periodically to avoid

becoming part of the background.becoming part of the background. should be legible both day and night.should be legible both day and night. must be maintained properly.must be maintained properly.

The ToyStore


Building InteriorsBuilding Interiors

ErgonomicsErgonomics, the science of adapting work , the science of adapting work and the work environment to complement and the work environment to complement employees’ strengths and to suit customers’ employees’ strengths and to suit customers’ needs, is an integral part of any design.needs, is an integral part of any design.

Proper layout and design pays off in higher Proper layout and design pays off in higher productivity, efficiency, or sales.productivity, efficiency, or sales.

Proper lighting is measured by what is Proper lighting is measured by what is ideal for the job being done.ideal for the job being done.


Careful selection of colors can create the Careful selection of colors can create the desired impressions among customers desired impressions among customers and employees.and employees.

Appealing to Appealing to allall of the customer's senses of the customer's senses can boost sales.can boost sales.

Building InteriorsBuilding Interiors


Three Retail Layout Three Retail Layout PatternsPatterns

GridGridRectangular with parallel aisles; formal; Rectangular with parallel aisles; formal;

controls traffic flow; uses selling space controls traffic flow; uses selling space efficiently.efficiently.

Examples: Supermarkets and self-service Examples: Supermarkets and self-service discount stores.discount stores.



Free-FormFree-FormFree-flowing; informal; creates "friendly" Free-flowing; informal; creates "friendly"

environment; flexible.environment; flexible.Example: Small specialty shops.Example: Small specialty shops.



BoutiqueBoutiqueDivides store into a series of individual Divides store into a series of individual

shopping areas, each with its own theme; shopping areas, each with its own theme; unique shopping environment.unique shopping environment.

Example: Small department stores.Example: Small department stores.


Layout GuidelinesLayout Guidelines

Know your customers buying habits and Know your customers buying habits and plan your layout accordingly.plan your layout accordingly.

Display merchandise as attractively as your Display merchandise as attractively as your budget will allow.budget will allow.

Display complementary items together.Display complementary items together.


Layout GuidelinesLayout Guidelines

Recognize the value of floorspace; never Recognize the value of floorspace; never waste valuable selling space with nonselling waste valuable selling space with nonselling functions.functions.

Create effective window displays and change Create effective window displays and change them often; they can be powerful sales tools.them often; they can be powerful sales tools.

Pay attention to the business sign, the most Pay attention to the business sign, the most direct method of reaching potential direct method of reaching potential customers.customers.


Manufacturing Manufacturing LayoutsLayouts

Product (or line) layoutProduct (or line) layout Process layoutProcess layout Fixed position layoutFixed position layout

chapter 15: location/layout 1 location, layout, and physical facilities

Documents

shopping centers malls

visibility slide

neighborhood shopping

community shopping centers

retail facilities

retail expenditures

power centers

regional shopping malls