Scenario dataset is the most important requirement of huff model; this model is generated in order to simulate market scenario demonstrating changes in proportions which help in adding a new store to the market. Destinations are stores and their attributes are retail square footage and warehouse square footage, origins are small census units and their attributes are number of households and average household income. Similarly scenario data has the patronage between origin and destination (Dramowisz, 2005).
Scenario data is used by GIS to discover sites for new stores. Moreover this data helps other stores to know about the loss they can have due to new stores. Model calibration evaluates fewer shopping trips to any particular store from the origin given before. This shows an underperformance patronage of a store comparatively. Total stores share the total sales and Huff model evaluates this by calculating the market shares. Market shares are evaluated by applying probability of expenditure done by origins.
The calibration of market shares lead to survey market scenarios (Dramowisz, 2005). This type of study is valuable as adoption of GIS technology favors the store managers in order to make intelligent decisions in market. The biggest Kroger Store should enhance their future grocery
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Exposure to GIS tools gives consumers assistance to reach the nearest retail outlet (Pillar, 2007). GIS implementation provides the location optimization to the managers in capital planning. Retail managers are helped in a way that they can see the market and select the location by prioritization. Using GIS predictive models can analyze the demographics of the region very quickly avoiding any week-long researches. This analysis helps in calculating the number of stores a firm can open and to model a market’s potential.
GIS ensures far better and more concrete market analysis. GIS solutions help managers in merchandising activities. The retailers can evaluate their target audience and demographic information in order to promote it using appropriate medium like paper advertisements, billboards promotion etc. Therefore managers of stores should apply an easy to use technology that has no harm but only an optimized and efficient output (Pillar, 2007). References Dramowisz, E. (2005, July 2).
Retail Trade Area Analysis Using the Huff Model. Retrieved March 21, 2009, from Directions Magazine: http://www. directionsmag. com/article. php? article_id=896 ESRI. (2008, October). Geography Matters. An ESRI White Paper . New York, United States of America. Pillar, M. (2007, February). GIS’ Multidiscipline Retail Value Proposition. Retrieved March 21, 2009, from Integrated Solutions For Retailers: http://www. ismretail. com/index. php? option=com_jambozine&layout=article&view=page&aid=7020&Itemid=61