Locating your target market for a new branch

Case Study: Pharmacies and healthcare professionals

A company that markets dermatological products employed City Intelligence to carry out market analysis focused on consumers of a middle socioeconomic level, in order to determine the ideal location for the opening of its new branch.

The company currently has three pharmacies specializing in high-end pharmaceutical products and they want to expand their line of pharmacies in the city. Based on the results of an analysis of their customers, the company concluded that most of their customers are people between 12 and 55 years of age, from high socioeconomic levels, and that there were few pharmacies with attractive pharmaceutical products for consumers of middle socioeconomic levels. With this in mind, it was important for the company to focus on targeting consumers of middle socioeconomic levels and identifying competitors in that segment, in order to position their new branch in the right location.

The City Intelligence machine learning tools helped contextualize the factors that are most relevant to client success. The spatial data provided by the system allowed them to carry out a geolocated search of the population of socioeconomic levels C and C- and to identify the most frequently used routes and traffic of the target market. Additionally, they analyzed at the urban block level the pharmacies specialized in dermatological products within the areas in which their target market resides and interacts. With this and more data, an analysis was carried out that enabled the potential of various areas of interest to be evaluated, as well as the market and the viability of the areas.

Through the analysis, the client found that:

  • 80% of the consumer segment moves within a 7.5 km range around the area in which they live.
  • There are six areas in the city with a high population density of people of socioeconomic levels C and C-.
  • In the area with the largest population of people of socioeconomic levels C and C-, where they make up 62% of the total population, there is only one pharmacy specialized in dermatological products.
  • There are 1.3 pharmacies specialized in dermatological products in areas with a high population density of people of socioeconomic levels C and C-.

Based on the results found, the client decided to position their product in the area with the highest population density of people from the socioeconomic levels C and C- since, in addition to being the most suitable regarding its target market, the competitor density was low, which indicates that there was ample market opportunity.

Using the system, the client was able to appreciate the competitive potential of the areas of interest in which the target market is concentrated. They were also able to locate the consumers who were near the chosen area to later analyze their behaviors and routes, and in this way determine how many total consumers could be attracted to the selected area and its surroundings.

If your business is in pharmacies and health care, using City Intelligence you can:

  • Determine the most suitable location and site for your premises, laboratory, clinic, or doctor’s office.
  • Get to know the competitors in the area in order to offer a valuable and high-quality service.
  • Analyze the area where your consumers are located, and therefore be able to determine if this is the most suitable area for your business.
  • Identify areas with similar behaviors and markets within the city.
  • Make use of large databases to find out how many consumers are in the area and how easy it is for them to access your establishment.
  • Know the characteristics of consumers in the most viable area for your premises, laboratory, clinic, or doctor’s office.

We complement the services of City Intelligence with other marketing research tools to offer you more detailed studies that are tailored to your needs. Visit http://www.lac.mx to learn more about our professional services, with more than 15 years of experience in market research.

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