Part III: Trade area analysis and site selection
without customer data
Getting to Know ESRI Business Analyst
Fred L. Miller, PhD
Murray State University
Presentation topics
This presentation will cover:
 The decision scenario for Living in the Green Lane
 Relevant business GIS tools and tasks
 Chapter 4: Geocoding and evaluating alternative
potential sites
Geocode available property data from an Excel spreadsheet
Identify attractive areas with Customer Prospecting and
Grid Map tools
Creating Threshold Rings from consumer expenditure data
Creating Huff Equal Probability Trade Area model
Presentation topics (cont.)
 Chapter 5: Defining trade areas, generating reports,
selecting best site
 Create drive-time trade areas around available locations and create reports detailing their
characteristics
 Perform comparisons of site population, purchasing, and lifestyle segmentation
characteristics by using general and detailed reports
 Select and recommend a retail site by integrating and evaluating information from several
maps and reports
 Design map documents to illustrate your analysis and support your recommendation
 Evaluation of ROI for business GIS analysis
 Business GIS learning goals and skills
LITGL decision scenario
Living in the Green Lane’s owners, Janice Brown and
Steven Bent:
 Have performed environmental scanning and market
opportunity analysis
 Have received a table of available locations for their
first store from a commercial real estate agent
 Must select a site for their first store based on market
area characteristics and the competitive environment
 Must support this decision within their business plan
using reports and map exhibits
Relevant business GIS tools and tasks
 Geocoding store locations from addresses
 Creating trade areas around potential location for
comparative purposes
 Gathering data on trade area population characteristics
 Gathering competitive environment information for
trade areas
 Researching comparative site characteristics with
reports, tables and graphs
 Selecting a store site and supporting the decision with
reports and map exhibits
Chapter 4: Geocoding and
evaluating alternative potential sites
In this chapter, you will perform the following Business
Analyst Desktop tasks:
 Geocode data on available properties and include it in
a GIS project
 Use customer prospecting tools and grid-based heat
maps to identify concentrations of attractive
customers
 Create threshold trade area rings around locations
based on consumer expenditure data
 Create Huff Equal Probability Trade Areas and
Locator Reports, and use them to assess the
competitive environment of available locations
Geocode potential site addresses
Symbolize their point features
Identify attractive locations with Customer
Prospecting, Grid Heat Maps, and Threshold Rings
Creating Huff Equal Probability Trade Areas
Chapter 5: Defining trade areas,
generating reports, selecting best site
In this chapter, you will perform the following Business
Analyst Desktop tasks:
 Create drive-time trade areas around available
locations and create reports detailing their
characteristics
 Perform comparisons of site population, purchasing,
and lifestyle segmentation characteristics by using
general and detailed reports
 Select and recommend a retail site by integrating and
evaluating information from several maps and reports
 Design map documents to illustrate your analysis and
to support your recommendation
Create Drive Time Trade Areas
Compare trade areas with reports
Design map exhibit to support business plan
Business GIS learning goals and skills
In Part III, you will learn to use Business Analyst Desktop
to:
 Geocode data on available properties and include it in a GIS project
 Use customer prospecting tools and grid-based heat maps to identify concentrations of






attractive customers
Create threshold trade area rings around locations based on consumer expenditure data
Create Huff Equal Probability Trade areas and Locator Reports, and use them to assess
the competitive environment of available locations
Create drive-time trade areas around available locations and create reports detailing their
characteristics
Perform comparisons of site population, purchasing, and lifestyle segmentation
characteristics by using general and detailed reports
Select and recommend a retail site by integrating and evaluating information from
several maps and reports
Design map documents to illustrate your analysis and to support your recommendation
Evaluation of ROI for business GIS analysis
The costs of this Business Analyst application are:
 A Business Analyst Desktop and Segmentation Module
 The time of managers and business GIS analyst
The benefits of this Business Analyst application are:
 Best match of company’s marketing strategy and target
customers
 Improved sales from most attractive location
The estimated incremental revenues are:
 About $2 million compared with second best location
 About $4.5 million compared with most likely
alternative location
Part III: Trade area analysis and site selection
without customer data
Getting to Know ESRI Business Analyst
Fred L. Miller, PhD
Murray State University