Location, Layout, and Physical Facilities

1. Location, Layout, and Physical Facilities

2. Choosing a Location:Sources of Information Key: Selecting the site that serves the needs of the business's target market most efficiently. • Census Data (see http://www.census.gov). • Survey of Buying Power. • Editor and Publisher Market Guide. • Rand McNally's Commercial Atlas and Marketing Guide. • Zip Code Atlas and Market Planner.

3. Geographic Information Systems (GIS) • Computerized programs combining map-drawing with database management capability. • Search through virtually any database and then plot the results on a map. • Visual display reveals otherwise hidden trends.

4. Selecting the State • Proximity to markets • Proximity to raw materials • Labor supply needs • Business climate • Wage rates

5. Selecting the City • Population trends and density • Competition • Index of Retail Saturation (IRS)

6. Index of Retail Saturation (IRS) • C = number of customers in the trading area • RE = retail expenditures. The average expenditure per person ($) for the product in the trading area. • RF = retail facilities. The total square feet of selling space allocated to the product in the trading area. C x RE IRS = RF where . . .

7. Selecting the City • Population trends and density • Competition • Index of Retail Saturation (IRS) • Costs • Local laws and regulations • Compatibility with community • Quality of life

8. Selecting the City (continued) • Transportation networks • Police and fire protection • Public services • Location’s reputation

9. Location Considerations for Retail and Service Business • Trade area size • Retail compatibility • Degree of competition • Transportation network • Physical, fear, or political barriers • Customer traffic • Adequate parking • Room for expansion • Visibility

10. Retail and Service Locations • Central Business Districts (CBDs) • Neighborhood Locations • Shopping Centers & Malls

11. Shopping Centers and Malls • Neighborhood Shopping Centers • 3 to 12 Stores; anchor is supermarket or drugstore. • Community Shopping Centers • 12 to 50 stores; anchor is department or variety store.

12. Shopping Centers and Malls • Regional Shopping Malls • 50 to 100 stores; anchor is one or more major department stores. • Power Centers • Combines drawing power of a mall with convenience of neighborhood shopping center.

13. Retail and Service Locations • Central Business Districts (CBDs) • Neighborhood Locations • Shopping Centers & Malls • Near Competitors • Outlying Areas • Home-based businesses

14. The Location Decision for Manufacturers • Foreign Trade Zones (FTZs)

15. U.S. Sales Figure 15.2. How a Foreign Trade Zone (FTZ) Works. Small Company No FTZ Duty Paid Imported Parts and Materials Store Exports Assemble U.S. Sales Package Duty FTZ Paid Manufacture No Duty Paid Imported Parts and Materials Process Exports Mix

16. The Location Decision for Manufacturers • Enterprise zones • Business incubators • Foreign Trade Zones (FTZs)

17. Layout: External Factors • Size - Is the building large enough to accommodate the business? • Create the proper image or "personality" for the business in the customer's eyes. • Develop creative window and in-store displays. • Choose appropriate storefront design. • Entrances must invite customers in. • Building must comply with Americans with Disabilities Act. • Pay attention to the business sign, the most direct method of reaching potential customers.

18. A Business Sign... • tells potential customers who you are and what you're selling. • must comply with local sign ordinances. • should be visible, simple, and clear. • should be changed periodically to avoid becoming part of the background. • should be legible both day and night. • must be maintained properly. The Toy Store

19. Building Interiors • Ergonomics, the science of adapting work and the work environment to complement employees’ strengths and to suit customers’ needs, is an integral part of any design. • Proper layout and design pays off in higher productivity, efficiency, or sales. • Proper lighting is measured by what is ideal for the job being done.

20. Building Interiors • Careful selection of colors can create the desired impressions among customers and employees. • Appealing to all of the customer's senses can boost sales.

21. Three Retail Layout Patterns • Grid • Rectangular with parallel aisles; formal; controls traffic flow; uses selling space efficiently. • Examples: Supermarkets and self-service discount stores.

22. Three Retail Layout Patterns • Free-Form • Free-flowing; informal; creates "friendly" environment; flexible. • Example: Small specialty shops.

23. Three Retail Layout Patterns • Boutique • Divides store into a series of individual shopping areas, each with its own theme; unique shopping environment. • Example: Small department stores.

24. Layout Guidelines • Know your customers buying habits and plan your layout accordingly. • Display merchandise as attractively as your budget will allow. • Display complementary items together.

25. Layout Guidelines • Recognize the value of floorspace; never waste valuable selling space with nonselling functions. • Create effective window displays and change them often; they can be powerful sales tools. • Pay attention to the business sign, the most direct method of reaching potential customers.

26. Manufacturing Layouts • Product (or line) layout • Process layout • Fixed position layout