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Calculate Market Penetration (Business Analyst Tools)

Summary

Calculates the market penetration based on the number of customers within an area compared to a demographic variable such as total population.

An optional report can be created detailing the market penetration.

Usage

  • The layer used for calculating market penetration must be a polygon layer, such as a standard geography layer from Business Analyst or a trade area.

  • The polygon layer requires a numeric field with market information, for example, total households.

  • The customer layer must be a point feature class.

  • Use a trade area and specify a store ID for both the polygon layer and the customer layer to calculate the performance of store trade areas.

  • All features from the input polygon layer will be used in the analysis. To improve performance, limit the features to the analysis area.

  • You can also calculate market penetration based on a weight field in the customer layer rather than customer counts. For example, you can calculate penetration based on total sales per household for each ZIP Code.

  • This tool creates the following fields:

    • BA_CUST—The number of customers in each trade area or boundary.

    • BA_TCUST—The total number of customers in the analysis.

    • BA_PCUST—The percentage of customers in each trade area boundary. The formula used is as follows: (BA_CUST / BA_TCUST) * 100

    • BA_CUSTW, BA_TCUSTW, and BA_PCUSTW—These fields are the same as the customer fields (CUST, TCUST, and PCUST) except these are based on weights. This is often sales per customer or an expenditure value.

    • BA_BASEVAL—The base market value for calculating penetration (total market count). This is often shown as total households or population. The market value is used as the denominator.

    • BA_MKT_P—The market penetration rate. The formula used is as follows: (BA_CUSTW / BA_BASEVAL) * 100. When customer counts are used in place of weighted values, the formula is (BA_CUST / BASEVAL) * 100.

Parameters

Label Explanation Data type

Input Features

The input feature class that will be used for calculating market penetration.

Feature Layer

Output Feature Class

The output feature class that contains the calculated market penetration features.

Feature Class

ID Field

A unique ID field in the market penetration layer.

Field

Market Penetration Base Field

The field containing the values that will be used to calculate market penetration. This field will be used as the denominator and represents the market, for example, Total Population or Total Households.

Field

Input Customer Features

The input feature class containing the points for the customer layer.

Feature Layer

Area Description Field

(Optional)

The field that will be used to describe each feature in the market penetration layer.

Field

Customer Weight Field

(Optional)

The field in the customer layer that will be used as a weight to calculate market penetration rather than customer counts.

Field

Create Report

(Optional)

Specifies whether a summary report will be created.

  • Checked—A summary report will be created.

  • Unchecked—A summary report will not be created. This is the default.

Boolean

Input Feature Store ID Field

(Optional)

A unique identifier associated with each store for each trade area.

Field

Customer Feature Store ID Field

(Optional)

An ID that assigns a trade area to a customer.

Field

Report Title

(Optional)

The title of the report.

String

Output Report Folder

(Optional)

The output directory that will contain the report.

Folder

Report Format

(Optional)

Specifies the format that will be used for the generated report.

  • PDF—The report will be in PDF format. This is the default.

  • PAGX—The report will be in PAGX format.

  • ZIP—The report will be generated as a .zip file.

String

Derived output

Label Explanation Data type

Output Report

The output report file.

File

Environments

Current Workspace

Licensing information

  • Basic: Requires Business Analyst
  • Standard: Requires Business Analyst
  • Advanced: Requires Business Analyst