By ANDY GRAY*
Not a day goes by without mention of Auckland's traffic congestion and its cost to the economy.
How can businesses deal with this - the cost is estimated at $1 billion a year - and incorporate traffic woes into marketing planning?
Dr David L. Huff's model, used to predict consumer
behaviour based on local market planning and sales forecasting, defines the attractiveness of a store location as the ratio of the store's floor area to its distance from a consumer's residence.
Other variables, including availability of parking, can be added to the model but consumers are generally attracted to "big-box" stores from a wider catchment than that of convenience stores.
Aucklanders, who rely on cars, relate the attractiveness of a retail location to distance and drive-time.
How many times have you set out on a shopping trip only to get stuck in traffic and abort or arrive at the store and have less time to shop (and spend)?
Huff's model, set out in 1963, is popular again through the increasing use of geographic information systems.
GIS comprise mapping software and customer/market data manipulated by a skilled analyst.
GIS can plot store locations and customers and make a drive-time analysis.
Workmates are amazed that I travel from Takapuna to Auckland city for a Subway sandwich but a clear harbour bridge at lunchtime makes this an attractive option based on drive-time.
Building and balancing catchments using drive-time analysis delivers real value to banks, retailers, franchisees and any marketer who has to pinpoint communications.
The value for money becomes evident when looking where to buy property.
Traffic congestion can restrict the pull of retail locations or new store opportunities can present themselves when holes in a retail network are identified through drive-time analysis.
Gone are the days where gut feel cuts the mustard in making substantial investments in retail locations. * Andy Gray is an account manager at Pinpoint Target Marketing.
* Email Andy Gray
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