Market analysis to determine the most suitable location for a business offering customer services

Case Study: Services

A specialized pedicure services business hired City Intelligence to conduct market analysis in order to determine the most viable location for the opening of a new branch.

The company currently has two premises in the city and, 10 years after they opened their last branch, they decided it was time to establish a new point of service. Since there were already three areas of interest (A, B, and C), the company was not sure which of these areas of the city was ideal for opening the new establishment. Being a small business, choosing the right location was crucial to its prosperity. To do this, the customer carried out a preliminary investigation that indicated some options about the best areas to locate the premises but the data produced with the help of City Intelligence objectively supported the best decision in terms of choosing the most profitable location.

City Intelligence machine learning tools helped identify the factors most relevant to the success of the client. The spatial data analysis provided by City Intelligence allowed them to analyze the population in the areas of interest at the urban block level, identify similar businesses, anchor stores that facilitate the attraction of customers, land uses, and traffic dynamics that determine the accessibility of a specific area. With these and more data, analyses were conducted that allowed us to ascertain the potential of various areas of interest, their market, and the viability of the areas.

Throughout the analysis, the company found that

  • Zone A had the highest crime rate and the least traffic, with 18% less vehicular traffic.
  • Zone B had the demographics most aligned with the company’s current market segment and the fewest competitors, as well as the highest volume of traffic with 30% less than the other zones.
  • Zone C had the most anchor stores and the largest parking capacity, with 23% more parking than the other zones.

Based on the results found, the client decided that area B was the ideal area to open their new branch since it was already the area that best suited their market segment and because it offered the lowest amount of pedicure services, both being fundamental factors for the success of a business like theirs.

Using the system, the client was able to appreciate the competitive potential of the area in which they would open their premises. They also managed to get to know the direct and indirect competitors that were nearby, in order to analyze their strengths and weaknesses and put them to use in the business and, finally, once the characteristics of the chosen area were known, 4 potential locations for the new establishment were identified.

If your business is in professional services and/or customer service, using City Intelligence you can:

  • Determine the most suitable location and site for your business.
  • Get to know the competitors in the area in order to offer a high quality, innovative service.
  • Analyze the area where your business is located, in order to determine if it is the most suitable for your business.
  • Identify areas with similar behaviors and markets.
  • Make use of large databases to find out how many consumers are around and how easy it is to access your establishment.
  • Know the characteristics of consumers in the area where your business is located.

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 to learn more about our professional services, with more than 15 years of experience in market research.

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