INDUSTRY RESEARCH

Dealernews Research

By Don Musick

X MARKS THE SPOT!

A HELICOPTER ON MARS?

184.67 million miles away in the 45 km-wide Jezero Crater, sits a tiny 1.8 kg (~4 lbs.) package of techno wizardry named Ingenuity. Designed to fly autonomously in the thin Martian atmosphere, Ingenuity relies on sophisticated surface recognition algorithms to navigate around its flight path (Fig 1).

Ingenuity analyzes real-time imagery of the Martian surface to dynamically map out its environment. The data collected is used in subsequent flights to identify areas for further exploration as while optimizing flight times and landing security. So basically, Ingenuity is mapping out its territory (trade area) in order to discover where opportunities (customers) lie. Sound familiar?

BACK TO EARTH

The good news is that you don’t need an $85 million drone to map out your territory! In our last “Finding Waldo” article we explored ESRI’s “Tapestry” data product with ArcGIS Online to examine the characteristics of its 67 neighborhood “LifeMode” and “Urbanization” categories (see this link). Since the free trial period of 21 days has likely expired since then, you can re-up for another trial on the following link (ArcGIS Online trial).

This go-round we’re not interested in socio-demographic characteristics, but instead let’s take a peek under the hood at 1) Retail Goods Spending and 2) Spending Behaviors. In Fig 2 below, we’ve once again arranged a tandem view of Google My Maps and ArcGIS Online. My Maps includes layers for customer locations and drive-time contours while ArcGIS has a single layer named “2020 USA Retail Goods Spending”.

As a reminder, you can find this layer in ArcGIS Online by clicking on the “Add” icon (red circle), selecting “Browse Living Atlas Layers “then searching for “2020 USA Retail Goods Spending”. Click on the layer to add it to the map.

This layer depicts the average amount spent per household on retail goods at the Census Block Group level. Clicking on a Block Group opens a pop-up that compares retail spending vs the national average. The inset bar graph compares 2020 annual budget expenditures (left) and retail goods spending (right).

Seeing any correlations between customer distribution and retail spending? Interesting for sure, but we want more (more is better than less)! So the “Living Atlas” is much more than a one-trick pony. As mentioned in the last “Finding Waldo” article, it contains literally thousands of layers to choose from around the world. This time we’ll search for a layer named “2019 Esri Spending Behaviors”.

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The format for this layer is a little different from what we’ve seen so far (Fig 3.). First off, the geography in this layer is only available down to the Census Tract level rather than Census Block Group. Second, the map symbols are represented by both size and shading. The size of the circle is proportional to the number of households while the color intensity is a measure of the Retail Goods Index. Taken together, you can easily see both consumer volume and retail clout in a single layer. But we still want more!

From his first motorcycles (a Honda S65 and an S90) when he was 16 to 50 years later, Don Musick has never stopped twisting the throttle. Although his accomplishments in the research arena have surpassed his MX career Don has over 25 years experience with major manufacturers in the Powersports and Automotive industries specializing in e-business solutions for retail distribution networks. His solution portfolio includes the development and implementation of manufacturer/dealer extranets, consumer-direct commerce portals, manufacturer/dealer e-channel integrations as well as development of web-based sales force automation tools. For most of his career, Don has been fascinated (his wife would say obsessed) with geographic market analytics, dealer location planning and sales territory optimization. He founded Genesys Technology Solutions (GenesysTech) http://www.genesystech.com/ to develop new tools and market intelligence products to help manufacturers understand the competitive landscape of their industries, recognize opportunities and grow their businesses. A Spartan to the core, Don earned a B.S. in Physiology and PhD in Biochemistry from Michigan State University. Contact: dmusick@genesystech.com