location analysis assignment

8/11/2019 Location Analysis Assignment

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RETAIL MANAGMENT

STORE LOCATION ANALYSIS

SUBMITTED TO.Sir, BASIT AFZAL

SUBMITTED BY.

KASHIF NIAZ 2141192

ABDUR-REHMAN 2141204

WAQAS LATIF KHAN MAYO 2141208

KHURRAM SHEHZAD 2141130

WAQAR WAHEED 2141156

MBA (1.5) Evening

SUBMITTED DATE15-08-2014

National College of BusinessAdministration & Economics

LAHORE


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CONTENTS

INTRODUCTION------------------------------------------------------------------------------------

RETAIL LOCATION STUDY---------------------------------------------------------------------

An introduction Factors in detail

JOHNNY ROCKETS LOCATION ANALYSIS------------------------------------------------

QUANTIFYING THE DATA---------------------------------------------------------

Conclusions--------------------------------------------------------------------------------


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Johnny Rockets is recognizedworldwide as the place to go fordelicious food, friendly service and a fundining experience. The companyscasual ambiance, upbeat music and

passion for guest engagement should bevery well-received by our family-focused culture. Theres r eally nothingquite like Johnny Rockets here inPakistan, and local residents and areavisitors should warmly embrace whatmakes it so special.

Throughout the world, people appreciatehome-cooked goodness of classiccomfort food; good service and a bright, clean, cheerful atmosphere.

Johnny Rockets serves simple, great-tasting food from a menu of all-American favorites,including juicy 1/3-pound burgers, crispy American Fries, classic sandwiches and rich, delicioushand-spun shakes. It's the place to go for friendly service, flavorful food, uplifting music andrelaxed, casual fun.

The all- American Rock n Roll theme is one that has proven to be universal and that leaps acrossall geographic and cultural boundaries.

Address: Z-Block,DHA, Lahore


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RETAIL LOCATION STUDY

An INTRODUCTION

Retail and service centers are often the final stocking points in a physical distribution network.

They include facilities like departmental stores, supermarkets, branch banks, medical centers andrestaurants etc. Location analysis for these points is highly sensitive to revenue and accessibilityfactors rather than cost factors.

Few Factors that influence Location Selection in Retail outlets are:

Competitors Population of trade area Customer Traffic Nearness to Complimentary Outlets Parking Availability Community Attitude

The Location of the Retail Store plays a very important role in its Success. It is an integral andcrucial part of the Retail Strategy as the location of the Store conveys a lot about its image. Italso influences the merchandising mix and layout of the store.

As once Set-up, a retailer can change its merchandise mix, adjust prices, improvecommunication/ services but it's very difficult to change the location. So a lot of Planning,Resources, and Research go in before Deciding upon some Location, Be it about penetrating intoa new city, new customer segment or a new location within the city but a lot of thought goes into

every single thing.

Where you choose to locate your retail business will have a major impact on everything yourshop does. The difference between selecting the wrong location and the right site could be thedifference between business failure and success.

Before choosing a retail store location, defining the business, both for now and in the future isimportant. And thinking about the issues like:

Who are your target customers? How do you want your store? Determining the business area, store location and the store size.

Without the answers to these basic questions, it will be hard to find the perfect location forgenerating the maximum amount of profit for the retail store.


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TAKING SOME FACTORS IN DETAIL

TYPE OF GOODS

What kind of products the business is selling, as some goods will require certain types of

locations. Would your store be considered a convenience store, a specialty shop or a shoppingstore?

Convenience goods require easy access, allowing the customer to quickly make a purchase. Amall would not be a good location for convenience goods. This product type is lower priced and

purchased by a wide range of customers.

Specialty goods are more unique than most products and customers generally won't mindtraveling out of the way to purchase this type of product. This type of store may also do well nearother shopping stores.

POPULATION AND THE CUSTOMER

If the retailer is choosing a city or state to locate the retail store, a thorough research of the area before making a final decision is to be carried out. Reading local papers and speaking to othersmall businesses in the area helps. Obtaining location demographics from the local library,chamber of commerce or the Census Bureau also gives a lot of idea. Any of these sources haveinformation on the area's population, income and age. Knowing who are the customers, andassuring a location where your customers live, work and shop.

ACCESSIBILITY, VISIBILITY AND TRAFFIC

Don't confuse a lot of traffic for a lot of customers. Retailers want to be located where there aremany shoppers but only if that shopper meets the definition of their target market. Small retailstores may benefit from the traffic of nearby larger stores and also by complementary stores.

How many people walk or drive past the location? Is the area served by public transportation? Can customers and delivery trucks easily get in and out of the parking lot? Is there adequate parking?

Depending on the type of business, it would be wise to have somewhere between 5 to 8 parkingspaces per 1,000 square feet of retail space.

When considering visibility, look at the location from the customer's view point. Can the store beseen from the main flow of traffic? Will your sign be easily seen? In many cases, the bettervisibility your retail store has, the less advertising needed. A specialty retail store located sixmiles out of town in a free standing building will need more marketing than a shopping storelocated in a mall.


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COMPETITION AND NEIGHBOURS

Other area businesses in your prospective location can actually help or hurt your retail shop.Determine if the types of businesses nearby are compatible you're your store. For example, ahigh-end fashion boutique may not be successful next door to a discount variety store. Place it

next to a nail or hair salon and it may do much more business.

LOCATION COSTS

Besides the base rent, consider all costs involved when choosing a retail store location.

Who pays for lawn care, building maintenance, utilities and security? Who pays for the upkeep and repair of the heating/air units? If the location is remote, how much additional marketing will it take for

customers to find you?

How much is the average utility bill? Will you need to make any repairs, do any painting or remodeling to have thelocation fit your needs?

Will the retailer be responsible for property taxes?

The location you can afford now and what you An afford in the future should vary. It is difficultto create sales projects on a new business, but one way to get help in determining how much rentyou can pay is A find out what sales similar retail businesses are making and how much rentthey're paying.

PERSONAL FACTORS

If you plan A work in your store, think about your personality, the distance from the shop Ahome and other personal considerations. If you spend much of your time traveling to and fromwork, the commute may overshadow the exhilaration of being your own boss. Also, manyrestrictions placed on a tenant by a landlord, management company or community can hamper aretailer's independence.

SPECIAL CONSIDERATIONS

Your retail shop may require special considerations. Make a list of any unique characteristic of

your business that may need to be addressed. Will the store require special lighting, fixtures or other hardware installed?

Are restrooms for staff and customers available?

Is there adequate fire and police protection for the area?

Is there sanitation service available?


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JOHNNY ROCKETS LOCATION ANALYSIS

The category of our given store

Retail fast food chain

By superior instruction of our respectable instructor, we selected Johnny rockets for its locationanalysis assignment to satisfy the requirements of the course we study, retail management.

In terms of analysis of location of Johnny rockets we consider:

Consumer base Paying Capacity Socio Economic conditions of the residents around A visible, accessible store location Budget constraints Parking Competitors around Store Size availability

And as far as the difference is considered

First it was in the CONSUMER BASE

Johnny rockets basically target upper segment of the society and looks for rich paying familiesaround, targets Youth and Business Clients.

We see enormous potential in this highly populated region that, up until now, had never seen afun- focused restaurant like Johnny Rockets, explained Fuller. As an economic hub in one of


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Pakistans most accessible cities, we foresee exponential opportunities in this rapidly expandingconsumer market.

Another difference being the STORE SIZE

Less than a month after its flagship restaurant was unveiled in Karachi, a second Johnny Rocketsopened doors on January 17th in Lahore, the countrys second largest city. The highlyanticipated opening is part of a strategic plan by Hamdan International to bring ten JohnnyRockets restaurants to Pakistan within the next decade. Measuring 8,200 square feet andencompassing multiple floor levels, this marks the companys largest restaurant of its more than300 locations, worldwide. This is a very big consideration before locating a store location.

VISIBILITY:

When considering visibility, look at the location from the customer's view point. Can the store beseen from the main flow of traffic? Will your sign be easily seen? In many cases, the bettervisibility your retail store has, the less advertising needed. A specialty retail store located sixmiles out of town in a free standing building will need more marketing than a shopping storelocated in a mall.

With a stunning glass-encased exterior and the signature neon signs of Johnny Rockets, corner building of the street front Z Block venue is poised to attract local residents and visitors eager toembrace the brands iconic taste of Americana.

Visibility becomes a very important factor in a store to increase the number of foot falls in thestore.

COMPETITORS:

With so many fast food chain stores present in the same city, or in the country, Johnny rocketswanted to be the first catcher. It holds a huge space on the ground of commercial market, Z-

block DHA. While its competitors may have better place & location than jonny rockets.

SIGNAGE, ZONING AND PLANNING POLICIES:

Before signing a lease, be sure you understand all the rules, policies and procedures related toyour retail store location. Contact the local city hall and zoning commission for information on

regulations regarding signage. Ask about any restrictions that may affect your retail operationand any future planning that could change traffic.

Johnny rockets running its fast food restaurant in a porches society DHA, where DHA makestheir own policies for the sake of betterment and maintenance of society. And every one is liableto follow these rules and regulations.


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THE PROCEDUREFirst of all we determined the major factors that are to be considered while selecting alocation on our own judgment and also instruction of our honorable instructors.

After this, we visited the outlets of Johnny rockets and interacted with the key

personnel there.Based on the information provided by them we allotted weights to these factors. Theweights were assigned on a scale of 1 to 10 with weights approaching 10 indicatinggreat importance.

Thereafter the outlets were given scores individually from 1 to 10 with scoresapproaching 10 referring to favored location status.


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QUANTIFYING THE DATA Johnny rocket

FACTORS WEIGHTAG POINT % score

Visibility 10 8

Accessibility 10 8

Parking Space 10 7

Store location 10 9

Customer traffic 10 9

Store size 10 9

External environment 10 8

Total score 70 58 58/70*100= 82.86

0

2

4

6

8

10

12

Visibility Accessibility ParkingSpace

Storelocation

Customertraffic

Store size Externalenvirement

Series1

Series2

Series3


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CONCLUSION:

Johnny rockets Location plan is feasible enough. Being centrally located it is ableto attract the masses. Since its target audience is the upper class of the society, thelocation is close to its customer base. However the location costs a lot to the ownerand a major part of the revenues is used in the location which happens to be themajor drawback. Moreove r since its located in the commercial area of DHALahore, where the parking space is common for all the stores around. And thus italso gets crowded specially in weekends and acts as a repellent for the store.


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APPENDIX

RETAIL SITE SELECTION CHECKLIST

Local Demographics

Population Density Lifestyles of Consumers Income Age Population of nearby Special markets

Traffic Flow & Accessibility

Number and Type of Vehicles Passing Location Access of Vehicles to Location Number and Type of Pedestrians Passing Location Quality of Access Streets Presence of Physical Barriers affecting trade area

Retail Competition

Trade Area Size Number and Types of Stores in Area Key Players in General Area Competitiveness of Other

Merchants Number and Location of Direct Competitors in Area Number and location of Supporting Competitors in Area

Site Characteristics

Number of Parking Spaces Available Distance of Parking Areas Visibility of Site from Street Type of Zoning Traffic Counts\ General Appearance in Area

Legal Issues

Zoning and Building Codes Zoning determines HOW a particular site can be used Building Codes determine the TYPE of building, signs, type of parking etc. Signs Licensing Requirements

location analysis assignment

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