Candia Milk: Expansion Strategy and SWOT

Candia Milk: Expansion Strategy and SWOT CDL (Chaudhry Dairy Limited) is one of the respectable and eminent organizations in Pakistan. CDL was built up in 1984 as a private restricted organization. The organization concocted its first item Haleeb Milkâ' and kept on growing its product offering. In 1988, CDL presented Haleeb Creamâ' which was propelled straightforwardly for purchaser showcase as well as provided to many frozen yogurt plants where it was utilized as a center fixing. The organization has its administrative center in Lahore and a plant found 65-km from Lahore in BhaiPheru. The plant is furnished with most recent gear and innovation, particular laborers researchers and experts who guarantee quality at each degree of creation process. Chaudhry Dairies constrained is one of the individuals who have entered the dairy business of Pakistan and have presented genuine dangers to settled firms like Nestle. The name of Chaudhry Dairies constrained was changed to Haleeb Foods Limited with impact from February, 2004. Candia is a result of CDL, which was propelled in 1999. Candia is a French brand and it is prepared and stuffed under and authorized in CDL. Candia as of now is an extremely mainstream brand in Europe and other 52 nations. Presently it is additionally accessible in Pakistans significant urban areas under CDL conveyance channels. CDL contributed around 200 million rupees to jump start Candia in Pakistan out of which 10 to 15 million were spent on its notices as it was propelled right on time during the World Cup of 1999. Candia is Europes Number One selling milk. CDL Foods Limited and Candia of France have held hands to bring the individuals most excellent milk. Without precedent for Pakistan, CDL Foods Limited has presented milk stuffed in food grade plastic containers. These jugs are made from imported materials at CDL Foods most recent plant. They guarantee longer time span of usability, highest caliber and capacity easily of utilization. SWOT Analysis Qualities The Major quality of Candia is simply the item in light of the fact that there is no other item with such uniqueness in the market. Thickness: It is more caramelized milk in its inclination. Accommodation: It is in a jug shape so it is simpler to open. Simply take the cover off and pour milk. Shortcomings Their item is disregarding female taste; Mostly, Men use to drink thick milk when contrasted with Women. The shade of the milk was yellowish consequently making the customers hesitant to purchase. There is no running advancement. Just Niche markets focused to serve any semblance of N.W.F.P and Punjab. Music assumes an imperative job in promoting of any item. As indicated by one research in 70% advertisements, it is music, which pulls in the consideration of crowd. The promotions for Candia didn't have any music or song in them. Openings Enormous Market is there in light of the fact that 77% of the piece of the overall industry is yet to be caught. Dangers Haleeb bottle milk is its greatest danger since there will be a tearing apart circumstance in the market. Tetra Pack is the greatest danger for CANDIA on the grounds that it is the main packaged common item in Pakistan. Reasons Why Candia Milk Failed In Pakistan As indicated by examine, it was seen that there are zones of shortcomings in the market endeavors of Candia. Candia has not demonstrated the outcome which was anticipated from it.It propelled the entire ad cost at the outset and it just paid in for the initial three months. From that point forward, the offer of Candia milk has been falling and it is driving the organization to eliminate its limited time costs. Following are the main considerations of its disappointment: POOR ADVERTISING AND MARKETING CAMPAIGN Candia milk neglected to do an appropriate promotion and advertising effort. There was not really any on air notice and no other vehicle for ad was utilized not to mention promoting. Shading AND TASTE The significant traits that Candia needs are shading and taste of the milk. The shading isn't simply white because of which individuals start to imagine that the milk isn't unadulterated and sterile. AGE GROUP Candia doesn't cover all periods of gathering. It neglects to cover all age gatherings. It focuses on the age gathering of 6-12. Individuals over this age boundary; Youth and old individuals, they are not focused on. The youngsters matured 20-34 have a high buying power. Notwithstanding, they don't incline toward Candia or some other bundled drain and lean toward new milk. Valuing Another zone of shortcoming is the valuing system utilized for Candia. Its cost was higher than different brands accessible in Pakistan. This didn't permit Candia to infiltrate the market viably. Bundling Bundling is the most significant factor adding to terrible taste and shading of the milk. Despite the fact that it has a USP bundling yet whenever uncovered in the daylight, the milk is stained. Marking The name Candia was moderately obscure to the individuals of Pakistan and many idea it was a treats or something of that sort. They were and still not mindful of the first Candia, which was so famous in Europe and other 52 nations around the globe. The brand has kind of milks as opposed to downright milk. Profundity Another significant explanation behind the disappointment of Candia is that the organization has not had the option to expand the profundity of their item since propelling its flavors, hues, sizes, and generally assortment. These advancements are vital tocreate a decent picture of the brand in the brain of the buyer. Impetuses No impetus or limits are offered to the shoppers. No mass limits are given either. The contenders be that as it may, follow this training. CDL is additionally not giving profound coolers and ice chests to huge retail outlets and departmental stores of Candia. Because of this, there are numerous territories where Candia milk isn't performing great, particularly in regions of their objective markets. Candia milk focuses on the high-pay individual living in pushing territories, which has significantly decreased its deal. Research Material The idea of bundled milk has become in the course of the most recent decade and is getting progressively well known. The survey that we coasted adamants this as 62% of the individuals said they devoured bundled milk though 38% didn't. One of the fundamental explanations behind the expanded pattern, as portrayed by our poll was the people groups worry for cleanliness. A huge rate, about 46% of the individuals said they devoured bundled milk since they thought it was significantly more sterile. About 20% should for it dependent on its comfort, 15% according to the proposal of their family/companions and 18% on account of its more drawn out time span of usability. As per our poll, 40% of the individuals accept that they consider costly milk brands to delude and don't satisfy their quality basis. 23% saw such a brand to be of more excellent, 29% were uninterested and an irrelevant 8% figured they would consider it to be focusing on a particular market portion. About 36% of the individuals said that a tune or a jingle could without any help be the most significant factor in making them notice or review a promotion. 16% said that the subject of the promotion would be that significant factor, though the term, recurrence, and endorser scored 20%, 18%, and 10% individually. 5. According to the details that we got from our survey, 49% of the individuals accept that the shade of the milk itself influences their purchasing choice. Though 38% can't help contradicting this and a simple 13% were not especially sure on both of thee. After soliciting, what kind of bundling did the purchasers wanted to purchase the milk in, to half; 54% of the individuals said they favored it in a jug. The staying supported something else, which means they favored the bundling to be either in a pocket or a tetra pack. The rates were 16% and 30% separately. A high level of the buyers, 35%, task the decent variety in flavors offered in a milk brand to influence their purchasing propensities for devouring a specific milk brand. Though 26% said that, the snappiness of the ads itself expands their odds of picking milk brand. Aside from that, a generally comparative measure of customers were influenced by the prominence, type and valuing of the milk brand. The vehicle of promotion that the shoppers thought snared them the most once more, had pretty much similar rates. Nonetheless, 39% of the individuals said that, it was one mode of advancement as well as it was rather the amalgamation of every one of these methods together, the consolidated notice through every one of these mediums that grabbed their eye the most. The mediums being Television, Magazines, Radio, Social media and Signboards. As per the information that we assembled from the survey, Candia as a milk brand is seen/reviewed by 39% of the individuals as a brand that was not advanced a great deal not to mention profoundly publicized. About 15% of the individuals recall it as being profoundly estimated, 13% as mainstream, 15% as focusing on an objective market, and 18% as a brand granting high caliber. 10. A genuinely high measure of the individuals prescribed that Candia should utilize a considerably more infectious subject, alongside a pleasant jingle, something that taps the brains of the individuals and remains in their minds. They additionally recommended that Candia ought to publicize its image considerably more than it as of now does with the goal that the individuals are increasingly mindful of the brand. Aside from that, they anticipated the chance of accomplishment of Candia on the off chance that they focused on not simply the adolescents or a particular objective market however a mass market. Changing Consumers Perception Purchasers go over numerous items every day except don't generally recollect them all. The ones they review are typically the ones they have encountered or simply the ones they are uncovered to.There are a few items to which they get uncovered so that the memory of that item remains with them. Such items have traits like conspicuous bundling or something bizarre. Other such factors incorporate the manner in which the item is advanced, how it is publicized, and who embraces it. The medium utilized for publicizing has a significant influence in the learning and memory of a purchaser concerning a specific item. The recurrence of a TV advertisement may be in excess of a print promotion or an announcement a

Communication Assignment Example | Topics and Well Written Essays - 250 words - 10

Correspondence - Assignment Example The quality methods capacity to scatter data in a manner that is suitable for the crowd and graphical outline is a model. I can exceed expectations in manual advancement of charts through concealing however need aptitudes for programming applications. The quality methods affectability to attributes of the crowd for a fitting crowd and social affectability is a model. I do exceed expectations in comprehension people’s conduct yet I can't acquire culture. A more extensive collaboration with individuals from various societies can assist me with enhancing this. This implies drawing in pertinent gatherings, with a noteworthy degree of affectability to their security, by scattering to them data that is important to their extent of obligations. A case of the quality is the capacity to choose proper method of correspondence. I am acceptable distinguishing delicate data about partners however I sometimes flop in recognizing a medium that can protect

Oppressed Women In Handmaids Tale - Free Essay Example

Handmaids Tale written by Margaret Atwood shows us unique aspects about the women who live in Gilead, the two different types of women in which Atwood mentions are   unique, which are   the Handmaids and the Marthas. These two different groups of women are not allowed to read because Gilead imposes a illiteracy on the female population. Both removal of language and prescription of phrases are similar to newspeak in 1984 and the hypnopedia teachings in Brave New World.   The women of Gilead have unique aspects about themselves especially the Handmaids.They are not allowed to read books, and by doing so this gives them a benefit of not rebelling against the commander and even the government, another way this gives the Handmaids a benefit of not being able to read is that they can be told what to do and they will do it.   less talking and learning and more working.A quote from this would be :   Blessed be the fruitMay the lord open. ( Atwood, 19) this quote right here is from the bible and it is saying that the handmaids are there just to make babies, whatever condition the handmaids are in the commander and his wife would not care but all they want is a healthy baby, and in the quote the fruit is symbolising the fetus and they want god to bless them.   The novel also mentions prescription of phrases, they are allowed to mention and listen to certain phrases such as   May the lord open (Atwood,19). Once in awhile they have meetings; and during these meetings they read certain passages from the bible about   Rachel and Leah and they just tell them that reproduction is very important. The people of Gilead are oppressed from reading and writing, but they have also been limited to where and what they could talk about:   Washroom, I said. Watch the clock. End stall, two-thirty. ( Atwood, 71) this shows us the reader that they are always being watched and only talk about certain things, this may be because they are being brainwashed into thinking this is what they are made for and nothing else, and in this quote we know that Offred and Moira have to sneak into the bathroom and talk about whatever they want.  Ã‚  Ã‚   In the dystopian society in the Handmaids Tale they suffer from many types of suppression and one of them is the freedom of reading and writing, the lock and key is something that only the commander can touch because the the books are always locked in his office and you have to have a key to open this, and in this society the handmaids are oppressed and can not have nice things:   On the fourth evening he gave me the hand lotion, in an unlabeled plastic bottle. (Atwood, 157) this shows the reader that she is not used to having   basic nice things such as hand lotion.   the Handmaids are just essentially just a womb with legs, the women of Gilead are oppressed because the men of the society think they are submissive and they need to be put into their place and this is why there are caste systems for the women population, since each woman is separated they can not do much and this gives the men in the society some type of   peace, another reason why there is illiteracy on the f emale population is because the men want to be on top and show dominance.

Individuals That Misuse Animals - Free Essay Example

Sample details Pages: 2 Words: 618 Downloads: 10 Date added: 2019/04/15 Category Literature Essay Level High school Tags: Lord of The Flies Essay Did you like this example? Individuals that misuse animals often convey their acts onto abusing people. Cruelty is defined as pleasure in causing torment. In the novel Lord of the Flies, cruelty is revealed from lack of civilization amongst the boys. Don’t waste time! Our writers will create an original "Individuals That Misuse Animals" essay for you Create order Golding stated the overall theme of the novel as an attempt to trace the defects of society back to the defects of human nature. The moral is that the shape of a society must depend on the ethical nature of the individual and not on any political system however apparently logical or respectable. Increasing acts of cruelty in the novel reflect the boys inner evil overtime. One incident where an act of cruelty was shown took place in chapter 4 when Jack and the hunters killed a pig. At first, Jack didnt have the boldness to hunt down a pig, and he failed at it the first time in chapter 2. However, when he finally hunted down the pig, he became so fixated with the sentiment of killing that he felt the urge to repeat it again. Jacks exact words were Kill the pig. Cut her throat. Spill her blood (Golding 145). He felt a sense of power once he painted his face as a sort of camouflage. Later on, his camouflage implies something other than a disguise, it gives him a chance to conceal himself from the other boys too. Jack and Roger got joy from this slaughtering. This binds back to the topic since it gives additional proof to how the boys are moving away from human progress and more onto their own particular manner of living openly. This mercilessness uncovers Jack as a savage and having certain qualities of a dictator. Another incident where an act of cruelty was shown took place in chapter 8 when the boys killed the mother pig in a horrific way. In this scene, Golding presents striking character headway for Jack and Roger, advances the topic, and foretells a later occasion. As a matter of fact,this scene showed a clear example of the boys beginning to receive pleasure from brutally killing. The boys get wedded to her in lust, excited by the long chase while chasing the wounded sow (Golding 297). The sow alludes to a female pig that was a mother to child pigs. The depiction of the manner in which the sow was murdered appeared to be more brutal than butcher, it was assault. The main boy that didnt make part in this move was Simon. Unexpectedly, the most terrible occurrence that happens later on in the novel happens to Simon, the one boy that didnt participate in this explicit activity. This cold-bloodedness uncovers Jack as a sickening kid with uncontrolled brutality. The last demonstration of pitilessness was the most horrendous, occurring in part 9. This is the scene that was foreshadowed from the horrendous killing of the sow, aside from this time the killing was toward one of their own, Simon. His death happened as a result of a wild desire to execute, horrible planning, and confused personality. One shocking quote that stood out to me was Simons dead body moved out toward the open sea (Golding 341). This uncovers the pitilessness in Jack explicitly on the grounds that it never entered his thoughts that he really murdered Simon in a butchering way until the point that his body was seen streaming out away from any confining influence ocean. At last, murdering pigs prompts the thirst of executing a human. The young men are roused by excite than by logic. The way that these demonstrations of pitilessness are being displayed by kids adds to the awfulness of its world. As George Bernard Shaw once said, Mans inhumanity to man is only surpassed by his cruelty to animals.

Western Civilization Essays - 991 Words

Western Civilization from 1589 to 1914 had many specific changes that contributed to the structure of the western world before World War I. In the absolutism state sovereignty is embodied in the person of the ruler. Kings were absolute kings and were resposible to no none except god. In the seventeenth and eighteenth centuries absolute rulers had to respect the fundamental laws of their land. They had to control competing jurisdictions, institutions or groups that were interested in their territory. They regulated religious sects. France of Louis was the classic model of absolutism. Louis XIV, quot; the sun king,quot; was a devoted Catholic who believed that god had estalblished kings as rulers on the earth. The French language and†¦show more content†¦They believed that around the earth were ten circular spheres and that beyond the spheres was heaven. Science in this period was primarily a branch of theology. Galileo contributed greatly to the world of science. He discovere d the laws of motion using the experimental method. He also used the experimental method to astronomy, using the newly invented telescope. Galileo was tried by the Inquisition for heresy in 1633 and forced to recant his views. The scientific revolution caused the Medieval Universities to provide frame world for new science. The renaissance stimulated by science rediscovering ancient mathematics and supporting scientific investigations. The scientific community’s primary goal was to expand knowledge. Because the link between pure science and applied technology was weak, the scientific revolution had little effect on daily life before the 19th century. nbsp;nbsp;nbsp;nbsp;nbsp;The Enlightenment also had its benefits to the western world. The Enlightenment was an intellectual and cultural movement that tied together certain key ideas and was the link between the scientific revolution and a new world view. Some of these ideas were the natural science and reasoon can explain all aspects of life. And that the scientific method can explain the laws of human society. Also, another idea was progress the creation of better societies and better people is possible. Many writers made scientific thoughtShow MoreRelatedWestern Civilization1515 Words   |  7 PagesCivilization: The West and the Rest Niall Ferguson’s thesis in his book â€Å"Civilization: The West and the Rest,† is to explain and prove why western civilization has exceeded the accomplishments of other nations throughout history up until present day. He attributes this world dominance to six â€Å"killer applications† the west had adopted and advanced beyond the means of any other civilizations. These applications were: competition, science, private property, medicine, consumption, and work. 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Transgender Americans The Fight For Equality Essay Example For Students

Transgender Americans : The Fight For Equality Essay For transgender Americans, the fight for equality is not over. While the recent changes in laws affecting LGBT individuals have done a great deal to improve the situation, the fact remains that a portion of the population is still denied the most basic of human rights. Something as simple as using the bathroom has become the new battleground for civil rights, as many states attempt to pass laws that restrict bathroom usage to the gender on someone’s birth certificate. While the number of transgender Americans seems small at an estimated 0.3 percent, this is still a significant number of people who are unable to feel comfortable using a public bathroom (Wong). Not only is avoiding the bathroom a health risk, forcing transgender Americans to use the bathroom of the biological gender has led to verbal harassment and physical violence. Transgender Americans should be allowed to use the restroom of the gender they identify with. The number of anti-transgender bills has been increasing, and is higher now in 2015 than any other year. This wave of legislation seems to be in response to the advances made in state non-discrimination policies that protect transgender people (Daileda). The opposition has proposed many bills that are unfair to transgender people:So-called â€Å"bathroom bills† introduced by social conservatives†¦typically mandate that people use the bathroom that matches the sex on their birth certificate. That’s a marker that is difficult for most transgender people to change, as well as one that, for them, is a bureaucratic indicator decided by someone else that should not be weighed against their innate sense of self. (Steinmetz)Some examples of proposed bills include the one created by Rep. Frank Arties in Florida, which wo. .room avoidance has led to health problems, and the UCLA School of Law conducted a think tank to study them. They found that more than half of the transgender people surveyed reported physical problems from trying to avoid the public restrooms. This included dehydration and kidney problems (Wong). For transgender Americans, something as simple as using the restroom has turned into a legal battle. The opposition’s concern that allowing transgender people to use the bathroom of the gender they identify with will led to an increase of violence against women and children is unfounded and nothing but propaganda. Transgender Americans should be allowed access to a safe environment where they are comfortable, just like all other Americans. The battle of equality will not be over until transgender Americans are allowed to use the restroom of the gender they identify with.

Mc Donalds and Burger King free essay sample

His seemingly endless enthusiasm and constant support helped me thru-out my program at Kent State University. I thank my other committee members Dr. Shawn Banasick and Dr. Chuanrong Zhang for their valuable comments and suggestions. I thank Dr. Milton Harvey and Mrs. Mary Lou Church for their affection and concerns. I am grateful to them and all my friends at McGilvrey Hall, for being the surrogate family during my years at Kent and their continued moral support thereafter. I thank Dr. MunroStasiuk, Dr. Schmidlin, Dr. Sheridan, Dr. Kaplan, Dr. Haley, Dr. Dymon, Dr. Bhardwaj and other faculty members in the Department of Geography for making the atmosphere in the department stimulating for research and academics. The Kent State University Library staffs are acknowledged for their efficiency and availability. A particular thanks to Edith Scarletto, Head of the Map Library, who helped me, gather the initial data required for the research. I would like to thank my friend Sathy for his help in formatting the entire text. We will write a custom essay sample on Mc Donalds and Burger King or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I am forever indebted to my family, for their blessings and love and who have supported and encouraged me to do my best in all matters of life. Particular thanks, to my husband, Harsha, for his tireless support, love and affection and without whom I would have struggled to find the inspiration and motivation needed to complete this thesis. ix Last but not the least, I dedicate my thesis to my Grandmother â€Å"Jhaiji† who’s Blessings and loving support has encouraged me throughout my academic career and life. Sadly, Jhaiji left for her heavenly abode just a few days before the thesis was submitted. x Chapter 1 Introduction There has been a growing interest among the academia and the private sector for the use of GIS techniques in the analysis and planning of retail store network. Almost without exceptions, various retail organizations need to plan for complex consumer markets and keep up with competitions. Over the past few decades the methodologies used for research of sighting of retail outlets have become more sophisticated as a result of applicable modeling procedures being developed with GIS. This study conducts a retail location analysis of the relationship between the fast-food store performance of McDonald’s and Burger King and the various spatial and socio-economic factors of their respective catchment areas. Analytical procedures in GIS and statistical techniques have been applied to carry out the analysis in this study. In particular, study areas have been partitioned into a set of Thiessen polygons and into various spatial configurations using variable buffer polygons to emulate various spatial configurations of catchment areas (i. e. , trade areas) associated with each fast food store. The socio-economic profiles in the partitioned polygons have been analyzed with a series of regression models. The result of the study brought out a better understanding of how location factors influence the performance of 1 2 the stores as well as how the socio-economic attributes of the catchment areas affect the store revenues. 1. 1 Research Objectives: The main objective of this retail location analysis is to develop and apply methodology for analyzing the relationship between fast food store performance and the various socio-economic and demographic factors with various spatial configurations of their catchment areas in Portage and Summit Counties. The traditional role of GIS in retail demand-and-supply analysis has been to analyze market characteristics such as consumer demand, geodemographics, traffic flow, competitor locations, etc. and to search for an optimal location for a new retail outlet or to close retail outlets in over crowded markets. Knowing the geographical distributions of retail demand and supply is important in conducting marketing analysis using GIS analytical tools. GIS can overlay different data sets onto one another in an integrated environment. GIS analytical tools have been widely applied for exploring the relationships between demand and supply in many types of business practices, including operations of fast food restaurants. However, perhaps due to relatively low real estate costs and flexible rentals or perhaps due to the all too often time lag in adopting newly emerging technology, many retailers do not make use of sophisticated location analysis methods that are now available. Many a times, retailers follow the location decisions previously made by anchor retailers. The choice of a store location has a profound effect on the entire business of a retail operation. For picking an optimal store-site, it is necessary to utilize data of the demographics of that area (income, family size, age, ethnic composition, etc of the population), traffic patterns, and similar kind of retail outlets or competition in the area. These factors are basic to all retail location analysis. GIS tools can help to find the right site along wit h market penetration, market share and trade areas by combining aerial photos/maps, competitors’ locations, geodemographic factors, customer surveys and census data. GIS market analysis tools can also help to determine whether the products match the lifestyle and buying patterns of the customers. In this study- Retail Location Analysis: A Case Study of Burger King McDonald’s in Portage Summit Counties, Ohio, an analysis of catchment areas of the analyzed restaurants has been done using a series of regression models to analyze socio-economic and demographic factors in various spatial configurations of the study area. The study area has been partitioned to a set of Thiessen Polygons and also to sets of spatial configurations by using different buffering zones surrounding the retail outlets to create different proximity polygons for further analysis. Thiessen polygons define individual areas of influence around each service center, or in this case each fast food restaurant, in a set of points/locations of fast food outlets geocoded in such a way that any locations within a Thiessen polygon are closer to the polygon’s centroid (the retail outlet used to make up the polygon) than to any other retail outlet. Buffer polygons have been constructed around the fast food locations 4 based on various assumptions of how far the distances consumers may be willing to travel to receive fast food services. With the various spatial configurations of Thiessen polygons and buffer polygons as defined by the locations of retail outlets, regression models have been constructed to examine the importance of a set of selected socio-economic and geodemographic factors. The different regression models that use different independent variables as structured by both the Thiessen polygons and Buffer polygons have been done to see how well or poorly either of the two approaches capture the variations in the sales volumes of fast food stores. In today’s world of highly competitive market environment, it has become imperative that retailers must make use of spatial analytical technology to acquire new clientele, retain the existing/current customers, to enable market expansion, and to stay abreast with changing consumer tastes and requirements. Advances in GIS technology reiterates the fact that the future success of retail, real estate and restaurants will be determined to get a great extend by using this smart technology. 1. 2 Summary: Many successful businesses in the United States make use of GIS software to integrate, view and analyze data using geography. Use of GIS techniques enables retailers to understand and visualize spatial relationships and improves productivity and effectiveness of the business processes. The use of multiple regressions modeling in this study has been done to identify how the ethnic composition of population and median 5 household income in the service areas of Burger King and McDonald’s restaurants interact with one another to produce a specific sales outcome. Chapter 2 Problem Statements Retail location analysis is an important part in site selection of a retail store. â€Å"A trade area of a retail store is the geographical area from which it draws most of its customers and within which its market penetration is the highest†(Ghosh and McLafferty, 1987). Retail location analysis also helps to determine the focus areas for marketing promotional activities, highlights geographic weaknesses in the customer base and projecting future growth and expansion of the retail services (Berman and Evans, 2001). 2. 1 Size and Shape of the Retail Trade Area: The size of the retail trade area often depends on the nature of goods and services rendered at the retail outlets, along with the geographical distribution of other competing retail outlets. For instance, fast food restaurants like Burger King and McDonald’s sell goods and services that are popular, easily substituted and affordable by the majority of consumers create a smaller retail trade zone as compared to a specialty restaurant. Usually, retail trade zones are not geometrically regular, i. e. , a circle, a square or a polygon. Rather, the shape of the trade zone is based on road networks, geology and topography of the area, land use of the neighboring areas, etc. 6 7 When examining the way customers travel to make retail purchases, it is always necessary to take into consideration the distance that a customer has to travel. The distances that customers may be willing to travel are different, depending upon the type of object to be purchased. The number of trips undertaken by consumers and the travel time will be different based on specialty or commodity product (Salvaneschi, 1996). For purchasing a specialty product, which is generally expensive, unique or long lasting, the consumer is willing to travel over a longer distance. This tends to expand the trading area of that good or service. On the other hand, to purchase everyday supplies or common items consumers often prefer convenience, as the trips for such goods are frequent, distances are short and travel time is brief. For instance, people typically will not drive to another town for fast food, unless they are on way to or back from other destinations. According to consumer behavior studies the time availability of consumers is an important variable in the convenience and fast food market. Therefore, it should be an important part of market strategy (Darian and Cohen, 1995). In this thesis research, the study area is partitioned into polygons representing trade areas for further analysis. Several different approaches to creating trade areas are used. These include trade areas defined as buffer polygons surrounding fast food restaurants with widths of 1, 2 and 5 miles. In addition, partitioning the study area into a set of collectively inclusive but mutually exclusive Thiessen polygons with the restaurants as polygon centroid also generates trade areas. Generating buffers around features is a commonly used analytical procedure in GIS. Most buffering methods create simple-distance bound geometric buffers around the 8 features. Buffers surrounding retail outlets(or other service-rendering establishments) are also known as service areas, hinterlands or market areas and have useful in many geographical applications (Shaw, 1991; Sierra et al. , 1999; Van Wee et al. , 2001). A buffer delineates the area within a specified distance of a feature. It can be created from points, lines or polygons. The output buffers may be lines or polygons depending upon the features and their distance are specified in map units (Price, 2004). Concentric buffers represent the delineation of multiple levels of proximity. For example, different distances of 1 mile, 2 miles and 5 miles from the store can be used to generate buffer polygons around retail outlets. This type of concentric buffers may reveal patterns of market penetration in which the inner buffers often account for the largest proportion of customers while the density of customers decreases as one moves away from the outlet to the subsequent buffers. This distance-decay effect reflects the impact of geographic accessibility on store patronage. The actual size of the trade area for each store varies, depending on the location of the store. The sharper the distancedecay effect, the smaller would be the trade area for each of the fast food store. For this study a regression models are applied that relates sales outcomes (dependent variable) to many factors such as ethnic composition and median household income (independent variable) of population in the retail trade zones of the Burger King and McDonald’s in Portage and Summit Counties. These regression models show that Burger King’s annual sales are better explained by the included independent variables for buffers with widths of 1 and 2 miles than those of McDonald’s sales by the same set of variables. For a 5-mile buffer and Thiessen polygons, sales are better explained for 9 McDonald’s. Ethnic population and median household income for buffer polygons of 1 and 2 miles around the restaurants better explain annual sales for Burger King and polygons of 5-miles for McDonald’s. 2. Summary: Retail location analysis helps in site selection for a business outlet and in determining the performance of retail outlets in the trade area of the store. The trade area of the store reflects the socio-demographic characteristics of the clientele and is thus useful in determining the marketing strategies. The size and the shape of a retail trade area are determined by the nature of goods and services offered. Since fast food restaurants sell goods that can be easily substituted, majority of consumers form a small retail trade area. Ethnic composition of population and the median household income within the buffer polygons constructed around the fast food restaurants indicate how much time and distance consumers drive or travel to patronize these restaurants. Chapter 3 Literature Review During the past three decades, several important advancements have taken place in spatial-data analysis, data storage, retrieval and mapping. Geographic Information Systems have been very useful in tackling spatial analytic approaches and in forming an interface with the field of location science (Church, 2002). Several studies give an overview of the major impacts of GIS on works done in the field of location science in terms of model application, development and various methods that can be used for landuse suitability modeling (Malczewski, 2004). For example: GIS is now the most widely used software for analyzing, visualizing and mapping spatial data such as retail location analysis, transport networks, land-use patterns and census track data. Since GIS can be used to assemble large volumes of data from various sources with different map scales and in different coordinate systems, it is considered an important tool in location analysis. GIS can combine and simultaneously use several databases by transforming them into a common set of database (Pettit and Pullar, 1999). However, the use of GIS in location analysis involves the aspect of accuracy of representing real world situations in a GIS database. The notion of accuracy is the representation of geographical objects and representing socio-economic, cultural and political elements of the environment within which location analysis is done (Church, 2002). Not only is GIS used 10 11 as the source of input data for a location model, it has also been used as a means to present model results (Malczewski, 2004). . 1 GIS for Business and Service Sector Planning: The growing consumer orientation in business and service planning along with advances in GIS and spatial analysis techniques, have led to the promotion of the use of GIS in the area of business and service planning (Longley and Clark, 1995). Several books and articles assess the use of GIS for supporting business a nd service planning at the level of tactical and strategic decision-making (for example: Davies and Clarke, 1994; Benoit and Clarke, 1997; Clarke, 1998; Birkin, et al. , 2002). These studies aim to further explore and promote the use of GIS in the area of business and service planning by demonstrating the benefits of both methodological advances and evidence of benefits in GIS applications and spatial models in GIS. Business planning requires a critical review of geodemographic features and paying attention to requirements posed by endusers (Longley and Clark, 1995). By linking GIS and spatial analysis software, proprietary GIS can be applied to solving problems in several applications like retail location analysis, localized marketing, etc. This involves the integration of spatial models and GIS customized to the specific information needs of retail organizations for specific localities. Thus spatial modeling is used in the explanation and prediction of interaction between demand and supply for retail facilities and the search for suitable locations for retail outlets in an area. The major theme of these studies is the evolution of GIS towards a more flexible 12 and powerful spatial decision support system (DSS) or intelligent GIS (IGIS), applied in several service sectors, including retailing, financial services and health care. Marketing information systems (MKIS) are decision support systems targeted at marketingspecific decisions (Birkin, Clark and Clark, 1996). There is a realizable benefit in integrating GIS with MKIS because of its ability to provide map-based data presentation considered most effective for decision-makers (Ronald and Lawrence, 2004). 3. 2 GIS as a tool for Retail Location Decision: A dynamic and uncertain environment characterizes retailing and retail organizations as needing to plan for the complex consumer markets, while anticipating and reacting to competitions. This competitive nature of retail environment and the large number of techniques made use of by the retailers in locational planning, has led GIS to be used as an aid in strategic retail decision making and applications (Davies and Clark, 1994). GIS is used not just for location and catchments analysis but also for other retail sector issues such as category management, merchandising, marketing communications and relationship marketing (O’Malley, Patterson and Evans, 1997). Existing literature contains a practical framework and other important issues involved in retail network planning. GIS has contributed immensely in improving the efficiency and precision of retail planning and marketing. Since the 1960s methodologies used for retail outlet location research have become more sophisticated 13 as a result of modeling procedures brought about by GIS (Birkin, Clark and Clark, 2002). The US experience shows that the effective utilization of geospatial databases, and the development of decision support systems (DSS), is becoming a significant source of competitive advantage for retailers over those without. Some retailers further explore information opportunities afforded by GIS technology for their business practices. Rather than relying on customer information alone, they are now combining data from several sources simultaneously in a bid to better support their process of decision-making (Birkin, Clark and Clark, 2002). 3. 3 GIS Methodologies for Retail Location Studies: For analyzing the spatial structure of retail activities with location data at micro scale, a number of technologies are now widely available and utilized. These include application of methods such as Probability Density Function (PDF), Decision Support Systems (DSS), Spatial Interaction Models, Network Huff Model, Analysis of Variance (ANOVA) (Byrom, 2005), MATISSE (â€Å"Matching Algorithm, A Technique for Industrial Site Selection and Evaluation†), and RASTT (Retail Aggregate Space Time Trip Model) (Baker, 2003), and others. The Probability Density Function (PDF) of the retail stores is a function of how densities of the subject matters vary over specified dimension. If the specified dimension is time, the probability density function describes how such matter changes their frequencies and distribution over time. Alternatively, if the specified dimension is 14 locations (or space), the probability density function then describes how such matters vary in their spatial patterns. The PDF has been used to analyze the spatial structure of retailing (Sadahiro, 2001). Sadahiro tested the validity of this method by applying this method to the locational data of retail stores in Yokohama. This approach helps to measure the degree of agglomeration, spatial patterns, the relationship between the size and function of retail agglomerations and analyzes the spatial structure of retail agglomeration. Retailers for sales promotion activities and long-term strategic decision-making are increasingly developing GIS as DSS. GIS merges endogenous database by retailers and the exogenous databases sources to introduce retail decision- making and systems implementation (Nasirin and Birks, 2003). As an example, the examination of the experiences of some of the UK based retailers reflecting GIS implementation in retail location analysis shows a highly organized series of process management that has resulted as a result of this application. The Network Huff Model is formulated on a network with the shortest-path distance as an extension of the ordinary Huff (based on Euclidean distance) (Okabe and Okunuki, 2001). This computational method can be used for estimating the demand of retail stores on a street network in a GIS environment. Extending from the gravity model, the original and network Huff models use distances (Euclidean or shortest distance over a network) between retail outlets as inverse weights to estimate divisions of the entire market area into individual trade areas of the retail outlets. The benefits of 15 these models are the ability to meaningfully divide the studied space into a set of trade areas to support retail business operations. MATISSE is a knowledge-based decision support system (KBDSS) based on decision tables that can be used by industrial decision-makers and planners to assess the suitability of potential sites (Witlox, 2003). Witlox explains how a relational approach to the modeling of the site suitability concept can be implemented and tried to find all possible locations that meet the spatial production requirements based on the organizational characteristics of the firm. The growing interest of urban geographers and economic geographers in applying KBS, DSS and integrated system has been largely attributed to the development of computer systems. Computers are able to store, organize and process enormous amount of data as well as make possible the availability and accessibility of the domain-specific knowledge underlying the spatial problem. Witlox has identified three major categories of location factors at the highest level of decision-making. These three conditions are site conditions, investment and operating considerations and make up MATISSE’S head decision table. He points out that the experience with the construction of the system indicates that the developed procedure of knowledge in acquisition worked quite well, however, there are some problems with capturing of compensatory decision-making in terms of the decision table formalism. Nevertheless, the system is at a stage where it can be used in a straightforward manner.