 the topic now we are going to discuss is trading area analysis so trading area analysis is actually the geographical area where actually there are customers or set of customers for a particular good or a particular service or a particular set of goods or a particular set of services so actually if we talk in general perspective this is that area in which when a retail store decides to operate then before that it analyzes the area that how many customers are there in that particular area which we call catchment area in that particular catchment area how many customers are there for his products and services the evaluation of this in general, normally we call it trading area analysis every retailer before opening any store before opening it properly a trading area analysis is done what are the benefits of this first of all we will discuss it quickly you have if you can see it there are a lot of benefits some of the special points the key points I have mentioned here the first point we have discovery of consumer demographics and socio-economic characteristics so when we analyze any area of the retail store trading area so first of all the information we have comes from consumer demographics or its socio-economic characteristics when we get to know this then we are in this position that accordingly we can design an assortment for the customer what is the profile of the customer what are the buying habits of the customer what is the income level what is the education level of the customer all these things we study in demographics so the trading area helps you to understand it the second benefit it has opportunity to determine focus of promotional activities you can define it very easily that in which area I am going to operate the business and I have to conduct what promotional activities are present what are the opportunities which I can capitalize similarly we have third advantage third benefit is opportunity to view media coverage patterns of course when we are operating in any particular area or we decide to operate so we have to see what is the media coverage pattern because I will use any media tool to attract the customer to engage the customer to gain the customer I will have to see which medium is the most commonly used or easily accessible or most used medium for example in some areas let's say cable television cable coverage is the ideal in some places movie channels specifically are the key newspaper let's say social media coverage in this particular area so we have to evaluate all the opportunities which are possible only when we do analysis of trading area next point we have assessment of effects of trading area overlap whenever we do analysis of trading area in front of us it comes what is the catchment area which means on how many time zones which customers are present and how many area overlap to explain this concept in detail I will come on next slide but in general trading area analysis helps us trading overlaps between one store and another store to identify it next benefit we have that is a certain whether chains competitor will open nearby when we are doing trading area analysis in that duration one of the benefits is that you have an idea which retailer is present which is a competitor apart from this all competitors chain stores which are aspiring in future in that particular area to open their business so this is also a trading area analysis which is very well identified in this way discovery of ideal number of outlets geographical weaknesses in all ways analysis paralysis of that particular geographical area that you get to know that in this trading area how many number of outlets there is opportunity to open your competitor so that you get to know how many competitors you can open or how many number of stores then we have next benefit the view of other options such as transportation is very important because you have to see how your customer has access to the store if customer can easily access your store on your store transportation facility is present which can easily come to your store so all these things you have to see that trading area analysis part next I will take you quickly to give a view which I have just told that if we evaluate two particular locations then how do we see for example this is trading area of one store store one and this is trading area of second store I am writing it here as S2 which means store one if you notice normally in general this is not in any circle but of course this geographical demarcation is of the store area which is present in the surrounding and what is the basis of this for example if this is the store assumingly this is time zone 1 this is time zone 2 time zone 3 time zone 4 time zone 5 and time zone 6 and time zone 7 so what is time zone 1 how many customers are like this which on 10 minutes drive time they can access the store so time zone 1 is actually 10 minutes or less time time zone 2 is between 11 to 20 minutes drive normal speed to the store and then time zone 3 is 30 minutes and then 40 minutes and then 50 minutes so you always evaluate that in my store how many time zones customers are travelling most of the cases are observed that time zone 1 2 3 are the time zones on which most of the customers are approaching because the distance is more than this so most of the customers don't approach your store so when you have to do trading area analysis you have to evaluate that in my time zone 1 time zone 2 and time zone 3 how many customers are like this which are relevant according to my business according to my goods according to my services in the same way I quickly have an example of another store if you want to open let's say if hyperstar wants to open two stores in Lahore or 3 stores in Lahore or 4 stores in Lahore then he is seeing that where to go my time zones overlap between one store and another store this green area shaded area you are seeing this is overlap normally time zone 4 5 or 6 can be overlapped between one store to another store so in generally trading area analysis helps you to identify the number of customers in your store's catchment area which are relevant and the location of your store the location of the other store which will be your own store how distant it is and how much area it is is overlapped and this way trading area analysis helps any retailer to make their site identification site location from the customer's perspective from the customer's perspective