Market Analysis in Stages
Use the model to forecast sales for new
locations. If designed to use nationally available data, the model can be used throughout
We have built models that offer an inexpensive "First Pass" to see if
there is sufficient market demand for a new unit.
A "Second Pass" model would couple the demand forecast with inexpensive
competitive research in a gravity model to see if the supply and demand balance are
If a location passes both these preliminary analyses, detailed competition and
local conditions research become the foundation of a comprehensive market feasibility
The forecasted market share for
each neighborhood is shown below. To forecast sales, multiply the forecasted market share
by the forecasted sales potential.