Year of Graduation
Geomarketing Approach in Making Decisions on Corporate Location
Faculty of Economics
The problem of determining the location of retail outlets is one of the most difficult, but at the same time very important problems of any seller, acting on the market. Market conditions and high level of competition bring an ultimate importance to the location factor for consumers and success of business. Such a long-term and expensive investment requires thoughtful approach to it.The aim of this work is to apply geomarketing approach on real database and place retail sportswear retail shop within the city of Irkutsk. Results of applying of this approach make possible to replace the store in accordance with the needs of customers. Through the evaluation of the results of this study, we can conclude how effective approach is in the decision-making on replacing of retail outlets. In order to achieve the goal, there were determined several objectives: to study the problems of spatial competition and the available literature on the subject, to examine the methodology of geomarketing approach in decision-making in this area, to explore consumer preferences of sportswear brand Forward on the basis of these preferences to conduct geomarketing analysis, to confirm the results of the approach by regression analysis and the method of the center of mass.Geomarketing approach, which is the main method used in this paper is a complex of various phases and components. This approach is based on the consideration of the territory in the map view and an analysis of space in terms of location of various urban facilities. One of the initial stages of the research is to study consumer preferences and characteristics. This step was done by conducting a survey on the social network of buyers of sportswear Forward in Irkutsk. Results of the survey (total number of respondents was 55 people) helped to create a portrait of the potential buyer, the requirements of which must be satisfied by sellers at the retail point of sale placement. Based on respondents' answers the territory were analyzed, there were highlighted the most suitable areas (zones) for the new shop. Next, the method the center of mass was applied as a supporting procedure, which is aimed to minimize transport costs for consumers in relation to their place of residence. In the final part of the paper the results of the regression analysis are presented, which was conducted on the existing sample to identify the importance for buyers of such characteristic as the distance to the store.Thus, the purpose of the work was achieved through the application of geomarketing approach; there were received three areas that are most suitable to locate the new retail shop Forward. Among three zones there was determined the one that gives the minimum amount of costs for buyers of this clothes. Econometric analysis of the data shows that the increase in the distance to the store brings a negative impact on the probability of visiting the shop.Keywords: spatial competition, retail location planning, geomarketing approach.