The 3rd P in the most popular theory of marketing (4Ps) stands for ‘Place.’ It is one of the pillars of any marketing strategy as well as the entire business strategy. Several critical business decisions hinge on this matter. For example, based on your location, you will be choosing your supplier, storehouse, efficient transportation route, etc. Your selection will affect your financials like rent, utility bills and several variable costs. Moreover, these things will have a direct effect on your sales and revenue. Therefore, you need to consider everything carefully and, choose the perfect location for your shop. Before you get to that, you need to know how to determine the right position and what elements would drive in making this decision.
Your Core Business Idea
Have you ever asked yourself a question? Why don’t you see a clothing store and an expensive car brand side by side? Because they have different business concepts and diverse markets to cater. Plus, these brands fulfill different types of needs according to the Maslow’s hierarchy of needs. Hence, they require separate customization and the right business location.
Generally, for B2C business shops, either you have to offer a product or a service. They are usually classified into the following categories: convenience, shopping, and specialty based on the needs. For example, grocery products are convenience goods, and they will need an open, easy to access location. On the other hand, shopping goods such as clothing, accessories are purchased less often, and when the consumers expect comfort and a better environment. Most of them are available in AC shopping malls. Lastly, specialty goods like furniture or cars require more attention and naturally, consumers are more careful purchasing them. Nevertheless, high valued products as such shall be offered a customized experience based on the product. So, if you are to set up a shop, first you need to figure out your business category before choosing a location.
Attracting The Target Customer
Secondly, drawing the right customer should be your determinant. Not all the grocery shops offer the same quality of products, nor all of them contain the same products. The reason is, based on the locality, consumer need varies. For this, most super shops in Dhaka tend to target the posh areas like Gulshan, Banani or Bashundhara R/A etc first as they know residents in this area have the need and financial ability to afford their products. So, determine the right target customer and their location before you decide to set up your shop.
The Right Exposure
Visibility is another top concern of a brick and mortar business. Ultimately, if people cannot quickly notice your brand logo/name or if it is hard to access your shop; the business will experience difficulties. Not only that, it might be a complete waste of your investment in such commercial property.
On the other hand, it again depends on your business strategy. For instance, on your way home, you think of buying a bag of oranges. If you notice a fruit shop on the second floor of a building, most likely you will not consider buying it. Though it has the right exposure, it is ineffective. However, if it were a clothing shop, you certainly wouldn’t mind climbing up the floors. So, the right exposure matters according to your business needs.
Check Your Financials
You might have found right business category and shop but it all comes to your financials with every bit of your investment. Maybe you can consider investing by calculating your ROI and expected profit from the business during the tenure of the contract. Furthermore, you need to consider your risks associated with the investment. If the outcome is favorable, go ahead and rent your perfect shop!
Don’t rush into a business deal just because you have to beat your competitor. A better business is worth the wait; especially for such investment decisions like this. So, do your research and evaluate everything carefully and you will find the perfect location for your shop.