Micromarketing Lab, Week 5

Sales Forecasting and Micromerchandising Using Visual and Lifestyle Data

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Micromarketing Lab, Week 5

Sales Forecasting and Micromerchandising Using Visual and Lifestyle Data
Overview: Today we will draw the trade area for a possible new Dicks sporting goods store. Then we
will continue to analyze the site and the consumers that live there using visual data from Google Maps
and lifestyle data from Experian.
Part A: Draw the New Trade Area Based on Drivetime
Overview. First we will create the trade area for our new store site.
1. Launch Alteryx.
2. Click the folder: In/Out.
3. Find the Text Input tool and drag it into the New Workflow window. DONT CHOOSE INPUT
DATA; CHOOSE TEXT INPUT

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Look in the Configuration window in the left pane.

See the little 2 x 2 of boxes. See above.
Click ON THE COLUMN HEADING and type: Latitude
Click ON THE NEXT COLUMN HEADING and type: Longitude
Then, type in these values in the correct fields.
The latitude is: 32.915
The longitude is: -117.119
DONT CUT AND PASTE; TYPE IN THESE NUMBERS.

9. First we must create the spatial object or point, and then we can create the trade area around it.
10. Open the Spatial folder. You may have to scroll to the right to find it.
11. Choose the Create Points tool and drag it beside the text input tool so they connect.

12. VERY IMPORTANT: The Longitude field might be WRONG; it might say Latitude (SEE ABOVE).
If you see this, use the Longitude dropdown to select: Longitude. Ensure it looks as shown below.

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Click on the Trade Area tool, and drag it beside the Create Points tool so they are connected.
In the Configuration window on the left, in the Specific Value box, type in: 6
VERY IMPORTANT: Check Drivetime Minutes.
Ensure your window looks as shown below. If you see a red error message on the Create Points tool,
click on it and ensure latitude and longitude fields are correctly chosen (see above).

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Click the folder: In/Out.

Find the Browse tool and connect it to the Trade Area Tool.
Under Help, find the green circle with arrow and click on it to run the workflow.
When done, click OK.
If you dont see a map, click on the Browse tool.
If you still dont see a map, redo the above and then rerun the workflow.
22. If you want to add a base map, click that dropdown.

Part B: Obtain Retail Demand for the Trade Area and Shape Files for Trade Area and Site
Overview: We now will obtain retail demand for our trade area to ensure it is sufficient to map it
1. Delete the Browse tool (click on it and click delete).
2. Click on the Demographic Analysis folder to open it. You might need to scroll to the right to see it.
3. Click the Allocate Append tool. DONT CHOOSE ALLOCATE INPUT.
4. Drag the Allocate Append tool beside the Trade Area tool so they connect.

5. VERY IMPORTANT: In the Configuration window, in the Spatial Field dropdown, choose:
SpatialObject_TradeArea

6. Open these folders (like before): Retail Demand, Current Year Estimates, Demand by Store Type,
Sporting Goods, Hobby, Book & Music Stores, Sporting Goods, Hobby & Musical Instrument Stores
7. Click the box next to Sporting Goods Stores

8. Open the folders: Geographic Identifiers, Current Year Estimates

9. Check: Area Square Miles

10. Click the folder: In/Out

11. Click on the Output Data tool, and drag it next to the Allocate Append tool so they connect

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In the Configuration window and click the Write to File or Database dropdown. Click File Browse.
Choose the file type: xlsx. IT MUST BE AN EXCEL FILE.
Under file name, type in: new store breakeven
Click Save, then OK

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Under Help, find the green circle with arrow and click on it to run the workflow.
When done, click OK.
Click View, Results.
Click the Excel file hotlink.
Calculate sporting goods expenditures per square mile as previously: $260,110 > $204,000 so good!

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Resave the Excel file, then close Excel

Close the results window (click x on top right)
Lets now save the new stores trade area and street location as a shape files
Click on the Output Data tool
In the Configuration window and click the Write to File or Database dropdown
Click File Browse
Click the Save as type dropdown.
Choose the file type: ESRI SHP (*.shp). IT MUST BE A SHAPE FILE THIS TIME
Under file name, type in: new trade area. Then click Save.

30. VERY IMPORTANT: In the Spatial Object Field dropdown, choose: SpatialObject_TradeArea.
31. CHECK TO ENSURE YOUR WINDOW LOOKS AS SHOWN BELOW.

32. We also need to see the new store location itself, which is the centroid. So drag another Output Data
tool into the workspace and attach it to the Allocate Append tool.

33. In the Configuration window and click the Write to File or Database dropdown. Click File Browse.
34. Click the Save as type dropdown.
35. Under file name, type in: new store site. Then click Save. Ensure it is a SHP file.

36. CHECK TO ENSURE YOUR WINDOW LOOKS AS SHOWN BELOW.

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Under Help, find the green circle with arrow and click on it to run the workflow.
When done, click OK.
Save your work in Alteryx. Click File, Save As, Browse.
Navigate to Computer\C:\MM LAB\WK 5.
Type on the file name: new trade area, and then click Save.
Minimize Alteryx.

Part C: Map the New Trade Area and Site

1. Launch ArcMap.
2. Click: File, Open.
3. Navigate to Computer\C:\MM LAB\WK 5.
4. Choose: trade area prework, and then click OK.
5. Your map should look as shown below. If white, close out, change folder name to above, and re-open.

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Click the icon: Add Data.

Click the icon: Connect to Folder.
Navigate to Computer\C:\MM LAB\WK 5. Click OK
Ensure the dropdown shows C:\MM LAB\WK 5
Click: new store site.shp
Shift click: new trade area.shp
Click: Add

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In the new trade area layer, click on the RECTANGLE.

In the Symbol Selector window, click the Fill Color dropdown and choose: No color.
Change the outline width to: 5
Change the outline color to: red. Then click OK.

17. In the new store site layer, click on the DOT

18. In the Symbol Selector window, change size to 18, and color to red, then click OK

19. Your map should look similar to the one below. The area in red is the primary trade area. The
secondary trade area is slightly further out and it looks good too, right?
20. Hover over the store site and you will see the latitude and longitude on the bottom right

21. Click the new trade area layer, and click Zoom to Layer
22. Zoom in even closes to the new site, and use the identify tool, and the all layers dropdown, to
identify the closest major road and 3 schools
23. Does this new site still look viable? Why or why not? What other info should you obtain?

24. Click File/Save.

25. Name the file: trade area final

26. Close ArcMap

Part D: Look at the Trade Area in Google Earth

Overview: We will now use Google Earth to look at photographs, magnet stores and competitors.
1. Ensure you have installed Google Earth Pro (see instructions from last week).
2. Launch Google Earth Pro. You should see an icon on your desktop. If not, go to Start, Programs
3. Close the welcome window.
4. On top, where it says Search, type in or cut and paste as follows: 32.915 -117.119 because
The latitude is: 32.915
The longitude is: -117.119
5. Click Search. You should see the map shown below.
6. At the bottom left, you will see a list of layers.
7. Find Roads and check it.
8. Open the folder called: More.
9. Check: Local Place Names
10. Check: Place Categories
11. Open the Place Categories (POI) folder and note the store icons, e.g., grocery store = shopping cart.

12. Hover over the places icons to identify them. Try to identify magnet stores that will draw lots of
people in, e.g., grocery stores, big box retailers. Are there any? Which ones? How many?

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On the map, move the cursor to the top right to find the controls.
Zoom in by the yellow push button.
Find the Person icon and put it in front of the yellow push button to get into street view.
You should be in front of Old Navy. Pan as needed to view the area.

17. How does this shopping center look? Does it look suitable for a Dicks sporting goods store?
How is street access?
How is the visibility of store fronts?
How is parking?
How do the cars and people look?
What other stores do you see and how do they look?
Check the imagery date. Is it current enough? If not, then what?
18. Exit street view. (Click on the exit street view tab on the extreme top right.)
19. Zoom out.

20. On the top, where you see folders, click: Add.

21. Click: Placemark.

22. In this window, type in the New Placemark Name: Dicks site
23. Click OK

24. Locate the closest Sporting Goods Stores as follows.

25. In the Search menu on the top left, type: sporting goods stores. Click: Search.

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The map should zoom out to show the closest 10 sporting goods stores. If not, click search again.
Note that there is a Big 5 and a Play it Again Sports nearby, but no major competitors. Whew.
To see the possible Dicks store location again, click Search, History and click on the lat/long again.
Or under Places, scroll to the bottom and you should see your Placemark: Dicks site

30. Close out of Google Earth.

Part E: Discover More about the Consumers in the Trade Area using Demographic and Lifestyle Data
Overview: Now we will obtain richer data on the consumers in the trade area, using demographic reports
and lifestyle reports from Experian.
1. Maximize Alteryx
2. Delete the last 3 tools used in the workspace: Output Data (2) and Allocate Append
3. On the top right, click: Demographic Analysis (you may need to scroll to the right to see it).
4. Find the tool: Allocate Report
5. Drag it over so it connects with the Trade Area tool.

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6. VERY IMPORTANT. Click the Spatial Field dropdown and choose: SpatialObject_TradeArea
7. DOUBLE CHECK TO ENSURE SPATIAL FIELD IS SPATIAL OBJECT TRADE AREA

8. Scroll half way down and check: Mosaic Household Comparison Report

9. Click the folder: In/Out

10. Find the Browse tool and connect it to the Allocate Report tool.

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Under Help, find the green circle with arrow and click on it to run the workflow.
When done, click OK.
On the top left, look in Configuration. If not there, click on Browse tool or delete tool and repeat.
Review the Mosaic Lifestyle report
The largest lifestyle group is B10 Cosmopolitan Achievers, with 8k households (37%)
Note they are in Group B: Flourishing Families

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15. IMPORTANT: SAVE YOUR WORKSPACE.

16. Click File, Save As, Browse, and navigate to C, MM LAB, WK 5.
17. Call the file: new trade area data and click Save.

18. We can look up the lifestyles in the Mosaic lifestyle guide; on EEE. Alternatively we can use the
online report in Alteryx as follows.
19. Click File, Open Workflow, Browse

20. Browse to: C, MM LAB, WK 5

21. Click: Alteryx Workspace for Accessing Mosaic Reports, then Open

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Run the workspace

Scroll to the right as needed to click on the very last tool: Render
On the left, click the icon: Messages (!)
By Render, click the hotlink

26. Click your group name: Flourishing Families

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27. Click your segment number for more details: B10 Cosmopolitan Achievers
28. Read the detailed description of this segment
29. Also look at the demographics and lifestyle data, including both percents and indices
E.g., look at CHILDREN, and at SPORTS AND FITNESS PARTICIPATION

30. How would you merchandise or stock products in this new Dicks sporting goods store?
31. Close the report and close Alteryx.

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Micromarketing Lab, Week 5, Homework Assignment

1. Open the map you created for HW 4. Using the select elements (pointer) tool and the zoom in tool,
point to a geographic area that you would like to analyze further. In most cases this will be a highly
promising location. For instance, it might be a possible new store site, an existing store site you want
to promote more, or the center of some other advertising area that you might want to target;
depending on your project. However, it could also be a weak location, e.g., a store that should be
closed. Look on the bottom right corner of the map and write down the latitude and longitude of this
promising (or not so promising) point location.
If a new site, you should likely look for good freeway access (with an exit) and a mall.
2. Following Part A of todays exercise, using Alteryx and the trade area tool, draw the relevant trade
area (e.g., based on drive time). HINT: Open the Alteryx Workflow we created in class called new
trade area and modify it to fit your project.
3. Following Part B, obtain an estimate of total retail demand (or consumer sales expenditure or the total
number of people in your target group) for this trade area, per square mile. Use Excel to see your
results and use print screen to save and print out your results.
4. Following Part C, map the trade area. Add this trade area to the map that you created in HW 4, and
zoom in so it is viewable. Print out this map. ENSURE IT HAS A LEGEND.
5. Following Part D, look at the same area in Google Earth. Look it up using the latitude and longitude
from Step 1 above. Obtain additional relevant data on the area, e.g., parking, visibility to street,
magnet stores and competitors. Print out this map also, using an appropriate zoom.
6. Following Part E, obtain additional information on the consumers in the trade area, e.g., use the
Allocate Report tool and ask for the Mosaic Household Comparison Report. Use the Browse to see
your results and use print screen to save and print out your results. You should also run the Alteryx
Workspace for Accessing Mosaic Reports and print out several key pages of the report that pertain to
your top lifestyle segment(s).
7. Write a one page, single spaced memo (12 point font) that describes what you have learned about this
area and its relevance. Refer to the data that you obtained above. Explain how you would use this
information to make important marketing or business decisions. Specifically, describe how you might
use this information to determine (a) if you should open a new store, and (b) if you do open it, how
you should merchandise or stock products at this store.
HAND IN THE FOLLOWING TO YOUR TA AT THE BEGINNING OF THE NEXT CLASS:
1. A screen shot from Alteryx showing estimated demand for your product or service in the trade area.
2. Your ArcMap map showing the trade area, with a legend.
3. Your Google map of the same trade area, showing competitors and/or magnet stores.
4. The Mosaic Household Comparison Report.
5. Several key pages from the Alteryx Workspace for Accessing Mosaic Reports that pertain to your top
lifestyle segment(s).
6. Your 1 page, single spaced memo (12 point font). This 1 page should not include the map or
screenshots. The memo should be 1 page by itself.
7. Please put your first and last name and lab section (am or pm) on each page of your homework.

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