Businesses invest heavily in the development of new or the redevelopment of existing outlets. You need to be confident of your returns before you invest. Market Analysis is more than just looking at the demographics around a site. It involves:
Field work performed personally by our professional analyst/consultants
Quantifying the trade area
Carefully assessing competition
Evaluating the site
Accurately projecting sales using the most sophisticated techniques
Market Analysis demonstrates the sales potential in your trade areas, projects sales for various operational options and provides site/location comparisons. We can develop market wide strategies or work on a single site basis.
Site Location Analysis
Site Location Analysis involves the study of a particular location’s probability of success for a specified retail store, grocery, pharmacy or banking institution. Below are some of the Site Location Analysis services provided at Dakota Worldwide.
How can sales, market share and profit be optimized for the entire marketplace and network of stores? Consider current effectiveness, new site locations, expansions of existing stores, and upgrading (without expanding) facilities.
Where should a store be located to maximize sales?
What is the impact on your other stores?
What are the potential sales to be realized from opening a new retail store?
What if we expand or change the format?
What are the effects on your sales performances should a new competitor enter the market?
Acquisition & Investment Analysis
Will a particular acquisition or investment produce the sales levels necessary to achieve the desired return?
What is the sales potential today and in the future?
Acquisition Analysis is a valuable addition to the legal and financial analysis services provided at Dakota Worldwide. We are often asked to participate in a due diligence process by supplying data and professional opinions regarding the current positioning of the acquisition candidate’s store network as well as the outlook for the future. Our data and analysis is useful in meeting overall FTC requirements and answering questions concerning possible divestitures.
We often work in the following phases:
Acquisition Opportunity Analysis
Information utilized during this phase comes from outside sources, our in-house data and from field observations.
We provide an overview of the demand side of the market. This is normally presented on a map overlaid with the competition as well as in tabular form.
Competitive locations are identified and presented on a map, such locations being derived from secondary databases as well as our in-house information. Each major competitor is identified separately and grouped as to certain important characteristics. Based upon secondary information, in-house databases and field analysis, we provide our professional opinion regarding the opportunity.
Further Analysis of Store Network
This phase focuses on the acquisition candidate’s stores and provides our professional opinion regarding two specific questions on a store-by-store basis.
What will happen to the store(s) if nothing is done in the way of capital expenditures and competition makes the moves that are either confirmed or expected.
Should the store(s) be closed, remodeled, expanded, razed and rebuilt, relocated, or left as is.
Please see our separate category regarding Strategic Planning.
Preferred Market Analysis
Preferred Markets Analysis is a systematic approach we utilize with clients who have limited resources. Our goal is to help the client to prioritize and focus these limited resources in areas where they will provide the greatest probability of return for the investment.
What are the major drivers of success for your endeavor? We analyze them from both sides of the supply/demand equation.
Our procedures are used in existing markets as well as for possible market entries. The scope can begin broadly, comparing regions within your universe, narrowing to individual markets within regions or even to individual locations within markets.