Spectrum Analysis has developed a powerful yet simple to understand hard copy (or electronic PDF) collection of demographics mapping information, profiling any local area of interest. There are four main ingredients in the pack:
Demographics Mapping & Summary
This one page summary focuses on major demographic segments within the local market. It compares the specific area with the National or state averages to highlight differences and groups of opportunity. The Demographic Summary also includes information on age, transport to work, occupation, family type, country of birthplace, language spoken at home, type of occupancy and also the structure of the dwelling.
Business Demographic Summary
People do not only make buying decisions from where they live, but also from where they work, play and travel. As such, residential demographic data is giving you only half of the picture about an area.
The Business Demographic Summary tells us how many people work in an area, the size of individual businesses and the industry groups local businesses belong to.
This really assists in determining the opportunity for lunchtime trade, business to business marketing and assistance as to which Local Area marketing promotion will be most successful.
Business Hit List
The Business Hit List gives you contact points into which to market your business. It is broken down by business category. The list names the company name, address, suburb, state, phone, fax and the type of business it is classified as. The Hit List can be supplied in hardcopy or electronic (Excel) format.
The locator map shows the location of your retail store, franchise or trade boundary, the residential density of population, the location of local businesses and community groups as well as the location of retail hubs and shopping centres. For an additional charge, competition locations can also be included on the map.
Spectrum Analysis has distilled a range of commercially relevant information into a single, easy to use package…
Featuring a Demographic Summary, a Business Summary, a Business List, and a detailed map, this Data Pack can assist with questions about what kinds of potential customer live in the area, what kind of businesses/employees are based in the area, and how people are likely to move around within the area.
The sections of the Data Pack are explained in more detail below. Detailed Map They say a picture is worth a thousand words and, in combination with the data of the other three parts of the Data Pack, this map may be worth even more. It shows the boundary of the postcode that defines the area from which the other data was drawn. It shows the industrial and commercial precincts, as well as schools, hospitals, parks, and residential areas. It shows Shopping Centres and Strips, with a key to their size. It shows the major and minor roadways that people use to move around within, through, into, and out of the area.
In short, it shows just about everything you might need to help with decisions about where to open a store, or where to place fixed advertising, or any other location-related issue.
Demographic Summary This is the place to start if you have questions like:
‘What is the socio-economic level of this area?’
‘Which age-groups are more prevalent?’
‘How many people rent and how often do they change address?’
Containing detailed measures of vital population indicators including age, income, marital status/family composition, profession, ethnicity, and housing, the Demographic Summary offers valuable insights into the kind of customer that might be found in a given area. It even provides a comparison with the most relevant major city or state, so you can quickly identify whether the area in question is above or below average on any of these indicators.
Business Summary For any B2B type of business, the relevance of the Business Summary is clear. But it is also highly relevant to many B2C businesses, because a large proportion of people make choices about where to shop based on where they work, either by ducking out during lunch, or stopping in on the way home.
The Business Summary details the number of businesses in an area, categorised by their size and also by the industry in which they operate. Some values in the local area are compared with the averages across the state or capital city. The target area can therefore be analysed in terms of the sheer number of businesses and employees, the proportion of businesses that are white or blue collar, the proportion of employees in a given field, and even whether the area has a lot of big business or is predominantly small business.
Business Hit List The Business List shows the company name, address, business type, and the phone number (please note disclaimer below) of businesses in the area. Use it to prospect for customers, to establish referral or alliance relationships, or to send out invitations for an opening or special offers. For areas with large numbers of businesses the list will be restricted to 500 records. You can contact Spectrum to gain access to additional lists.
Household Expenditure Data / Reports are designed to provide a broad measure of demand for consumer goods and services (measured in current dollar terms) for any geographic area in Australia.
Spectrum’s current Household Expenditure database is derived from the Australian Bureau of Statistics Household Expenditure Survey (HES). The data has been adjusted to current values and can be used to produce reports showing household expenditure in either of two formats
For a range of commodities for a single nominated area, such as a trading area around a retail outlet
For a range of areas, such as all Sydney postcodes, for a single commodity or group of commodities.
Results can also be mapped across any broad area of interest, down to a very micro level (census collection districts, areas containing approximately 200 – 300 households).
Household Expenditure Reports are powerful marketing tools and can be used to:
Calculate market share or penetration at a branch, territory or postcode level
Estimate total market share
Locate market ‘hotspots’
Assess actual performance against market potential
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Time Series Forecast
How can I estimate my future sales? A time series is a sequence of observations taken over a period of time. For example, daily / weekly / monthly sales figures, yearly profits and daily maximum temperature are all times series. The most common use of time series analysis is to forecast future values of that series. Many franchises whilst operating profitably can have major problems with cash flow due to seasonal nature of goods they are selling; for big sales months such as December looking great for profits, a large account base, slow debtors and of course very stringent ATO wanting their GST, PAYG etc. on time, cash flow can be a major problem. Forecasting can be used to get a good feel of what sales to expect, and then financially plan for this to occur.
There are numerous other ways in which franchises and franchisors can benefit from such analyses.
Assess Performance of the Network or Individual Stores - The sales data plotted against time can be analyzed to reveal the trend and seasonality more clearly and even decomposed into its elements by removing the trend (detrending) and seasonal factors (seasonal adjustment) from the data.
This kind of analysis can help you understand the fluctuations in sales by revealing simple facts like the overall trend, the high and low periods, and more complex facts like unusual drop and rise in sales, which are not a part of any regular pattern. The reasons for these occurrences can then be investigated with the aim of improvisation, assessing the performance of individual sites or the whole network of stores.
The analysis can also be used to look at each individual store against what the rest of the network is doing.
Forecasting - The sales data can be modelled and weekly / monthly forecasts produced. These projections are a more realistic indicator of how your business is expected to perform than one “lump” sales forecast for a year. These forecasts among other things can be used to get an handle on the overall market expectations for stock and ordering, for better financial planning, optimizing staffing and resources needs.
Initial Consultation Initial consultation is necessary to understand the business, the products / services offered, the current customer base and the buying patterns. From this, a strategy is put in place to assemble the relevant data with a predetermined objective in mind.
Creating the Model The process begins by a data review to get a feel of the overall sales and check for inconsistencies. Depending on the objective, which can range from just a trend, seasonality and outlier analysis to development of a forecast model, the analysis usually involves use of appropriate statistical techniques like smoothing, logarithmic transformation and choice of appropriate time series models. The last stage of model development involves concealing the last few known values of sales and tuning the model till it predicts these values as accurately as possible.
Using the Model Once a model has been created and tested to satisfaction, it is ready to be utilized to forecast future sales.
Are you a B2B business, and if so, how can you estimate the potential of your territories?
Spectrum is happy to announce that we have entered in to an agreement where we shall be able to supply Business Hit Lists to our customers. The List has a database of 680,000 businesses including business name, address, phone number and category. We have also mapped the locations of the businesses so that we can supply hit lists by postcode, or a radius from the store in question. If you have a territory based business, we can also cut the list to follow postcodes or exact boundaries if necessary.
Some typical applications of this dataset is as below:
1. Business & Employment Summary
Business and Employment Summary can be requested as part of a standard datapak or a stand-alone product. The summary can be prepared for a postcode, territory, a certain radius around the site, or any customed region as per request.
Spectrum Analysis has been using this a lot in territory planning consulting. The idea is to use one combined variable to represent capacity of different areas (postcodes, suburbs, etc ...) in Australia. For B2B businesses, the input is often number of businesses by size and by ANZSIC categories.
The document at the link below explains how we calculate UoD for different areas using business data input: