customer and competitor mapping for economic gardening clients
DESCRIPTION
Examples of how to map existing and future customers, and cross check competitor locations using free ABS data. This is a copy of a presentation by co-developer Steve Harvey and I to the Aust New Zealand Regional Sciences Association national conference in early Dec 2011.TRANSCRIPT
Using data and spatial analysis to support
Economic Gardening as a grassroots economic development tool in regional
Australia
Dr Kim Houghton Director Strategic Economic Solutions
Steve Harvey Director Bugseye
Adaptation and innovation
NSW Innovation Council, Regional Innovation Strategy
Engaging and energising entrepreneurs
• Many horses, lots of water, few drinkers • Picky customers, want instant results • Experiential learners • Building adaptive capacity • Practical help
– Getting to markets – Increasing sales and adding value – Accessing ‘knowledge intensive business services’
• Culture of innovation and investment
Economic Gardening • Designed by Chris Gibbons, Littleton
Colorado • Develop local entrepreneurs
– Create a nurturing environment – People with roots in the community
• Support innovation to keep exports from becoming a commodity
• Public sector’s role: – Invest in community, not companies
• Information (GIS, database research, web marketing)
• Infrastructure (renewal, capital works) • Connections (R&D, networks)
© Chris Gibbons, used with permission
Sample Uses of GIS in Economic Gardening
© Chris Gibbons, used with permission
Customer locations Demographic data: High income families with children under 15
Drive times
Expenditure mapping
Competitor locations
Australian applications
• Illawarra, Bega Valley, John Grant • Crucial information (market research)
component hampered by lack of data – Reliance instead on workshops, strategy
advice and ebusiness • Great Australian data – much underused
– Household Expenditure Survey – Australian Business Register
An Australian example The search for expansion opportunities for the pharmacy
industry in NSW
The Questions
•Where do we start looking?
•What locations will drive sales?
•Where are our best customers?
•Where’s the competition?
Highest spend profiles across NSW
• Estimated spend on pharmacy product lines by LGA. • No State or National averages. • Modelling delivers and reflects local area spend characteristics select demographic elements and current-day value.
Drill down for LGA assessment
Look for families (high net value customers) to refine search
Look for regional existing activity hotspots indicating likely density of demand
Mine for deeper data at suburb level and seek out the competition hotspots
Look for passing trade patterns
Get to the coal face and an area of interest
Taking it a level deeper Street hierarchy and trade catchment
Taking it a level deeper A bird’s eye view of competition
Conclusion
• Practical help, easily applied • Value for business (informed decisions for
SMEs) • Culture of adaptation and innovation
– Higher value products and services – Defined markets
• Practitioner insight into what’s possible and practical
