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RETAIL MANAGMENT

STORE LOCATION ANALYSIS



SUBMITTED TO.
Sir, BASIT AFZAL

SUBMITTED BY.

KASHIF NIAZ 2141192
ABDUR-REHMAN 2141204
WAQAS LATIF KHAN MAYO 2141208
KHURRAM SHEHZAD 2141130
WAQAR WAHEED 2141156

MBA (1.5) Evening











SUBMITTED DATE
15-08-2014
National College of Business
Administration & Economics
LAHORE

EXECUTIVE SUMMARY


By the grace of our respected instructor Basit Afzal we have been assigned a
topic store location analysis of the brand name Johnny Rockets, well known
American fast food chain working internationally with its 300 outlets in 24
countries. It started its operation in Pakistan by hamdan international and after
unveiled in Karachi they open new outlet in 2nd largest city Lahore in Z- block,
DHA because they seek and target porches communities around.
It is located in the commercial area of DHA Lahore, where the parking space is
common for all the stores around. And thus it also gets crowded specially in
weekends and acts as a repellent for the store. Major competitors and neighbors
within 1 kilometer distance are Mc Donalds, KFC, Hardees, Subway, Submarine,
Coffee Planet, Gloria jeans coffees.
















CONTENTS

INTRODUCTION------------------------------------------------------------------------------------
RETAIL LOCATION STUDY---------------------------------------------------------------------
An introduction
Factors in detail
JOHNNY ROCKETS LOCATION ANALYSIS------------------------------------------------
QUANTIFYING THE DATA---------------------------------------------------------
Conclusions--------------------------------------------------------------------------------
















Johnny Rockets is recognized
worldwide as the place to go for
delicious food, friendly service and a fun
dining experience. The companys
casual ambiance, upbeat music and
passion for guest engagement should be
very well-received by our family-
focused culture. Theres really nothing
quite like Johnny Rockets here in
Pakistan, and local residents and area
visitors should warmly embrace what
makes it so special.
Throughout the world, people appreciate
home-cooked goodness of classic
comfort food; good service and a bright, clean, cheerful atmosphere.
Johnny Rockets serves simple, great-tasting food from a menu of all-American favorites,
including juicy 1/3-pound burgers, crispy American Fries, classic sandwiches and rich, delicious
hand-spun shakes. It's the place to go for friendly service, flavorful food, uplifting music and
relaxed, casual fun.
The all-American Rock n Roll theme is one that has proven to be universal and that leaps across
all geographic and cultural boundaries.
Address: Z-Block,DHA, Lahore









RETAIL LOCATION STUDY
An INTRODUCTION
Retail and service centers are often the final stocking points in a physical distribution network.
They include facilities like departmental stores, supermarkets, branch banks, medical centers and
restaurants etc. Location analysis for these points is highly sensitive to revenue and accessibility
factors rather than cost factors.
Few Factors that influence Location Selection in Retail outlets are:
Competitors
Population of trade area
Customer Traffic
Nearness to Complimentary Outlets
Parking Availability
Community Attitude
The Location of the Retail Store plays a very important role in its Success. It is an integral and
crucial part of the Retail Strategy as the location of the Store conveys a lot about its image. It
also influences the merchandising mix and layout of the store.
As once Set-up, a retailer can change its merchandise mix, adjust prices, improve
communication/ services but it's very difficult to change the location. So a lot of Planning,
Resources, and Research go in before Deciding upon some Location, Be it about penetrating into
a new city, new customer segment or a new location within the city but a lot of thought goes into
every single thing.
Where you choose to locate your retail business will have a major impact on everything your
shop does. The difference between selecting the wrong location and the right site could be the
difference between business failure and success.
Before choosing a retail store location, defining the business, both for now and in the future is
important. And thinking about the issues like:
Who are your target customers?
How do you want your store?
Determining the business area, store location and the store size.
Without the answers to these basic questions, it will be hard to find the perfect location for
generating the maximum amount of profit for the retail store.

TAKING SOME FACTORS IN DETAIL
TYPE OF GOODS
What kind of products the business is selling, as some goods will require certain types of
locations. Would your store be considered a convenience store, a specialty shop or a shopping
store?
Convenience goods require easy access, allowing the customer to quickly make a purchase. A
mall would not be a good location for convenience goods. This product type is lower priced and
purchased by a wide range of customers.
Specialty goods are more unique than most products and customers generally won't mind
traveling out of the way to purchase this type of product. This type of store may also do well near
other shopping stores.
POPULATION AND THE CUSTOMER
If the retailer is choosing a city or state to locate the retail store, a thorough research of the area
before making a final decision is to be carried out. Reading local papers and speaking to other
small businesses in the area helps. Obtaining location demographics from the local library,
chamber of commerce or the Census Bureau also gives a lot of idea. Any of these sources have
information on the area's population, income and age. Knowing who are the customers, and
assuring a location where your customers live, work and shop.
ACCESSIBILITY, VISIBILITY AND TRAFFIC
Don't confuse a lot of traffic for a lot of customers. Retailers want to be located where there are
many shoppers but only if that shopper meets the definition of their target market. Small retail
stores may benefit from the traffic of nearby larger stores and also by complementary stores.
How many people walk or drive past the location?
Is the area served by public transportation?
Can customers and delivery trucks easily get in and out of the parking lot?
Is there adequate parking?
Depending on the type of business, it would be wise to have somewhere between 5 to 8 parking
spaces per 1,000 square feet of retail space.
When considering visibility, look at the location from the customer's view point. Can the store be
seen from the main flow of traffic? Will your sign be easily seen? In many cases, the better
visibility your retail store has, the less advertising needed. A specialty retail store located six
miles out of town in a free standing building will need more marketing than a shopping store
located in a mall.
COMPETITION AND NEIGHBOURS
Other area businesses in your prospective location can actually help or hurt your retail shop.
Determine if the types of businesses nearby are compatible you're your store. For example, a
high-end fashion boutique may not be successful next door to a discount variety store. Place it
next to a nail or hair salon and it may do much more business.
LOCATION COSTS
Besides the base rent, consider all costs involved when choosing a retail store location.
Who pays for lawn care, building maintenance, utilities and security?
Who pays for the upkeep and repair of the heating/air units?
If the location is remote, how much additional marketing will it take for
customers to find you?
How much is the average utility bill?
Will you need to make any repairs, do any painting or remodeling to have the
location fit your needs?
Will the retailer be responsible for property taxes?
The location you can afford now and what you An afford in the future should vary. It is difficult
to create sales projects on a new business, but one way to get help in determining how much rent
you can pay is A find out what sales similar retail businesses are making and how much rent
they're paying.
PERSONAL FACTORS
If you plan A work in your store, think about your personality, the distance from the shop A
home and other personal considerations. If you spend much of your time traveling to and from
work, the commute may overshadow the exhilaration of being your own boss. Also, many
restrictions placed on a tenant by a landlord, management company or community can hamper a
retailer's independence.
SPECIAL CONSIDERATIONS
Your retail shop may require special considerations. Make a list of any unique characteristic of
your business that may need to be addressed.
Will the store require special lighting, fixtures or other hardware installed?
Are restrooms for staff and customers available?
Is there adequate fire and police protection for the area?
Is there sanitation service available?
JOHNNY ROCKETS LOCATION ANALYSIS
The category of our given store
Retail fast food chain
By superior instruction of our respectable instructor, we selected Johnny rockets for its location
analysis assignment to satisfy the requirements of the course we study, retail management.









In terms of analysis of location of Johnny rockets we consider:
Consumer base
Paying Capacity
Socio Economic conditions of the residents around
A visible, accessible store location
Budget constraints
Parking
Competitors around
Store Size availability
And as far as the difference is considered
First it was in the CONSUMER BASE
Johnny rockets basically target upper segment of the society and looks for rich paying families
around, targets Youth and Business Clients.
We see enormous potential in this highly populated region that, up until now, had never seen a
fun-focused restaurant like Johnny Rockets, explained Fuller. As an economic hub in one of
Pakistans most accessible cities, we foresee exponential opportunities in this rapidly expanding
consumer market.
Another difference being the STORE SIZE
Less than a month after its flagship restaurant was unveiled in Karachi, a second Johnny Rockets
opened doors on January 17th in Lahore, the countrys second largest city. The highly
anticipated opening is part of a strategic plan by Hamdan International to bring ten Johnny
Rockets restaurants to Pakistan within the next decade. Measuring 8,200 square feet and
encompassing multiple floor levels, this marks the companys largest restaurant of its more than
300 locations, worldwide. This is a very big consideration before locating a store location.
VISIBILITY:
When considering visibility, look at the location from the customer's view point. Can the store be
seen from the main flow of traffic? Will your sign be easily seen? In many cases, the better
visibility your retail store has, the less advertising needed. A specialty retail store located six
miles out of town in a free standing building will need more marketing than a shopping store
located in a mall.
With a stunning glass-encased exterior and the signature neon signs of Johnny Rockets, corner
building of the street front Z Block venue is poised to attract local residents and visitors eager to
embrace the brands iconic taste of Americana.
Visibility becomes a very important factor in a store to increase the number of foot falls in the
store.
COMPETITORS:
With so many fast food chain stores present in the same city, or in the country, Johnny rockets
wanted to be the first catcher. It holds a huge space on the ground of commercial market, Z-
block DHA. While its competitors may have better place & location than jonny rockets.
SIGNAGE, ZONING AND PLANNING POLICIES:
Before signing a lease, be sure you understand all the rules, policies and procedures related to
your retail store location. Contact the local city hall and zoning commission for information on
regulations regarding signage. Ask about any restrictions that may affect your retail operation
and any future planning that could change traffic.
Johnny rockets running its fast food restaurant in a porches society DHA, where DHA makes
their own policies for the sake of betterment and maintenance of society. And every one is liable
to follow these rules and regulations.

THE PROCEDURE
First of all we determined the major factors that are to be considered while selecting a
location on our own judgment and also instruction of our honorable instructors.
After this, we visited the outlets of Johnny rockets and interacted with the key
personnel there.
Based on the information provided by them we allotted weights to these factors. The
weights were assigned on a scale of 1 to 10 with weights approaching 10 indicating
great importance.
Thereafter the outlets were given scores individually from 1 to 10 with scores
approaching 10 referring to favored location status.

































QUANTIFYING THE DATA Johnny rocket


FACTORS WEIGHTAG
E
POINT
S
% score
SCORES
Visibility 10 8
Accessibility 10 8
Parking Space 10 7
Store location 10 9
Customer traffic 10 9
Store size 10 9
External environment

10 8
Total score 70 58
58/70*100=82.86




0
1
2
3
4
5
6
Category 1 Category 2 Category 3 Category 4
Series 1
Series 2
Series 3
0
2
4
6
8
10
12
Visibility Accessibility Parking
Space
Store
location
Customer
traffic
Store size External
envirement
Series1
Series2
Series3
CONCLUSION:

Johnny rockets Location plan is feasible enough. Being centrally located it is able
to attract the masses. Since its target audience is the upper class of the society, the
location is close to its customer base. However the location costs a lot to the owner
and a major part of the revenues is used in the location which happens to be the
major drawback. Moreover since its located in the commercial area of DHA
Lahore, where the parking space is common for all the stores around. And thus it
also gets crowded specially in weekends and acts as a repellent for the store.





















APPENDIX

RETAIL SITE SELECTION CHECKLIST
Local Demographics
Population Density
Lifestyles of Consumers
Income
Age
Population of nearby Special markets
Traffic Flow & Accessibility
Number and Type of Vehicles Passing Location Access of Vehicles to Location
Number and Type of Pedestrians Passing Location
Quality of Access Streets
Presence of Physical Barriers affecting trade area
Retail Competition
Trade Area Size
Number and Types of Stores in Area Key Players in General Area Competitiveness of Other
Merchants
Number and Location of Direct Competitors in Area
Number and location of Supporting Competitors in Area
Site Characteristics
Number of Parking Spaces Available
Distance of Parking Areas
Visibility of Site from Street
Type of Zoning
Traffic Counts\
General Appearance in Area
Legal Issues
Zoning and Building Codes
Zoning determines HOW a particular site can be used
Building Codes determine the TYPE of building, signs, type of parking etc. Signs
Licensing Requirements