City of Tuscola Merchant Expansion Case Study

 

Hypothetically, an existing merchant located in Tuscola, IL was interested in the market potential available for expanding their product line to include line of boats and RVs. They knew that many people from the area enjoyed outdoor recreation and there was currently not an existing dealership in town. By using our GIS application, ECIDC would be able to provide them with professional reports and maps to help them analyze their market and decide if it would be a wise decision to expand their current offerings.

We would answer the following questions by building specialized reports and maps to help them build their case:

 

 

What is the average amount spent per household by Tuscola residents on the purchase of RVs or Boats yearly?

Through generating a Recreation Expenditures Report, we are able to gather information about how much an average household spent on on RV and boat purchases each year, along with the total dollars spent in your study area (whether that be your community, county, congressional district, zip, distance around a selected site, census block group, census track, states, major markets, metropolitan areas or the entire U.S.).

Recreation Expenditures
This report captures spending potential for recreation and amusement activities such as entertainment fees, toys and games, recreational vehicles, reading, sports and exercise equipment, and photography supplies. The report details the total dollar amount and average amount per household spent on these products and services. A spending potential index (SPI) allows you to compares amounts spent locally to the U.S. average. Retailers use this report to offer product mixes that match their customers' needs and create effective advertising to attract them.

                                                                                                

                                                                                                                        

How much of this market is being captured? Is there room for a RV and boat dealer?

Through generating a Retail MarketPlace Profile Report, we were able to easily see the Retail Potential (Demand) for Other Motor Vehicle Dealers in comparison to the actual Retail Sales (Supply) of  Other Motor Vehicle Dealers in Tuscola so that we could see if there was a gap between supply and demand that needed to be filled.  We can also visually display the potential retail sales that would be spent yearly on Other Motor Vehicles in Tuscola if the market was adequately served.

Retail MarketPlace Profile
Understand the scope of retail activity in your market area. The Retail MarketPlace Profile displays the retail sales and retail potential dollar amounts; the leakage/surplus factor, which measures the gap between supply and demand; and the number of businesses by industry. Use the data in this report to evaluate the potential of future sites, determine if customers are traveling outside the area to shop, and plan marketing/advertising campaigns.

For example, retail figures from the database reveal that

  • Direct Selling Establishments and Vending Machine Operators industries are growing to more than $10 billion and $5 billion, respectively.
  • Total market value topping nearly $89 billion for Electronic Shopping and Mail-Order Houses continues to dent the revenues of the Books, Periodical, and Music Stores; Department Stores; and Office Supplies, Stationery, and Gift Stores sectors.

 

 

What does my potential target population look like and how do I advertise to them?

Through generating a Tapestry Segmentation Area Profile and Dominant Tapestry Map for the City of Tuscola, we can first of all see which tapestry segments are present in Tuscola and where.  These report allow us to profile the potential customers so that we know which media to use to best target that audience, what their lifestyles entail, and where they live so we know how to use direct mail more efficiently. Click here to read the tapestry segment desriptions for Tuscola.

Dominant Tapestry Map

The Tapestry maps and reports provide powerful information to better tailor your messages to America's diverse consumer markets, identify your best markets, reach those markets more effectively, and define the products and services preferred by your consumers.

Tapestry helps reveal your customers and your markets, enabling you to find more like them. Use Tapestry to

  • Evaluate current and potential sites.
  • Target direct mail campaigns.
  • Use customer preferences in developing new products.
  • Expand sales territories.
  • Plan media campaigns.
  • Target advertising by segment.

 

Tapestry Segmentation Area Profile

This report compares the top Tapestry segments in your area, ranked by household percentage, to their national counterparts. The report also includes data for the 12 LifeMode summary groups (groups with similar consumption and demographic patterns) and 11 Urbanization summary groups (groups with similar density).


Use this report to help

  • Define market penetration.
  • Compare local markets to their national counterparts.
  • Identify opportunities.
  • Discover untapped potential.
  • Target your best customers and prospects by geography.

The 65 market segments of the Community Tapestry segmentation system classify U.S. neighborhoods based on their socioeconomic and demographic composition. Segments are combined to identify

To view the summary of Tapestry Segments click here.                                                                                                                        


 

For more information contact:

Trisha Mason, Executive Director ECIDC

Phone: (217) 540-3517