I recently received a copy of an interview with Al Ricks, the commercial Realtor for Vom Fass, written by Toni Jakovec. See the attached article. In this interview Al discusses how he helps the Vom Fass franchisees site prospect for the right location. In the article, Al also discusses the measures of market potential that they use for evaluating location trade areas: a population of approximately 100,000 and a median household income of between $65,000 or higher.
How GeoWize Measures Market Potential
Since 2012 GeoWize has provided Vom Fass with market prospecting services for potential sites, incorporating GIS analysis of demographics, target expenditures, market potential, consumer profiles, education attainment and competitor intelligence to help them in spotting the customer potential of a specific area.
Community Tapestry Map used for visualizing the market potential factors
The site prospecting process begins by creating a 100,000 population threshold trade area as a guide around the prospective site. Using the threshold area as a guide, the prospective trade area is redrawn to conform to natural boundaries, such as rivers, lakes, highways, mountains, federal or state lands, and major streets. The Demographics and Income Profile Report is then used to confirm the final population, household and family count. The report provides a complete breakdown of population by income, age, and ethnicity, and growth trends compared to the state and national levels. Adjacent territories are also defined, using the same market potential measures, to balance the population and other criteria, and to ensure that the territories do not overlap, or there are not any holes of coverage in the territories.
Additionally, the Community Tapestry Profile Report is used to determine the demographic, socioeconomic, residential and behavioral characteristics of the consumers within the defined territory or trade area. These reports are also powerful tools that can be effectively used for creating and administering advertising and marketing campaigns.
Community Tapestry Segmentation Report used to evaluate the measures of market potential
To read the entire article and to learn more about measuring market potential click here
Do you want to know more about site prospecting for franchising? Click here
