Know your customers: – Every business should know who your customers are, do you know them, most of the organizations think that they know, but often they are wrong. It is very important to understand who your customers are. It is very important to know your regular and frequent customers and if the organization knows who their frequent customers are, it will help to identify other areas that may have demographics with similar characteristic. Before selecting a new location for the business, Roti’s management should consider on this factor.
Trade area: – Trade areas come in many shapes and sizes, so the organization should know what area they intend to serve. Trade areas are not actually round, square, or rectangular, instead they usually reflect irregular shaped pattern. It correspond to road or street pattern, it is altered by competition, physical and psychological barriers, and the demographic of the local residents and employees of the certain area. So Roti’s management needs to consider which is the realistic area and can attract more customers.
Structure of the market: – Every city, town, neighborhood, building, house has a structure and it is determined by physical and psychological barriers. Socio-economic characteristic, street and motorway patterns, industrial and commercial concentrations, type of employment, income, age, topography, and other factors, and by identifying these most important benefits of the structure, “Roti” can substantially improve the opportunity for success.
Demographic area: – When organizations select or look locations, they have to consider on the local area’s population, because if you are taking help of the leasing agent or a real estate broker, they usually throw away the population numbers, or you may also be given a computer generated data listing the population, households, age, and income of the given area.
The organization should develop their own feel for the market, they can also consider how much population growth is expected in certain period of time.
The most important element is not how many people reside in the population area, but it is rather who are the people, what are their ages and what is the income. So every organization should clearly analyze these facts. Accessibility: – Access mainly occurs at three levels, so the organizations have to analyze these three levels. 1 whether there is easy access to the business location, 2 the access to the particular site and (3) lastly whether this access is via adequate curb cuts, traffic signals or others, and if the access is poor it can be overcome by reputation or promotion, especially when competition is at its peak.
Roti’s management have to consider whether there is an easy access for their customers and suppliers where they are going to re-locate their restaurant. Competition: – Most of the organizations in today’s era thinks that they are unique, and some are, and some not. Therefore, competition is a significant factor that an organization should consider before choosing a location. Organization must determine competition and measure its importance.
You should know the sales, service level, production level of your competitors, and if the one do not know answer to above all, how can they determine their own success. Roti should know all the main Indian restaurants in the area they are going to choose. They should also observe and research how customers are attending these restaurants and at which hours. Visibility & Exposure: – Here visibility means ability to see or recognize the location, as its exposure is being seen and recognized over a long period of time.
Visibility can create huge success and opportunities for the business. Visibility is the most important factor that a restaurant or any business should consider before selecting a particular location for you business. Restaurant’s location is as important as the food it serves. Management of “Roti” should consider all the above factors before selecting a new location to relocate their restaurant. I will suggest them that they should try to find the location near the commercial area or office towers.
The new location should be easily accessible for the people and the suppliers and it can be easily reached by walk or drive. The new site should avoid facing another restaurant because it may mislead the customers to enter the wrong place when they want to come to your restaurant. The new location they are going to select should be in the convenient zone, the transportation tool and pedestrian can pass it conveniently. The also need to consider the nearby parking lot has enough space for your customer’s vehicles.
They should also consider the location in well known dining area, location near the street corner and the street name should be well known, because everybody will know when they pass by it no matter car driver or pedestrian. And when people feel hungry or they think the location is convenient they will come to the restaurant enjoying your place without hesitation. So in the nutshell we can say that the management should say that they the location they are going to select should be convenient, in well known area, easily accessible, in the busy area, and enough parking space.
Methods of evaluating location alternatives The decision where to locate is based on many different types of information and inputs. There are different models and techniques available which will help organization to organize site information and that can be used as starting point for comparing different locations. For “Roti” I have selected the most popular method “the factor-rating method. ” Decisions from this method will not be made based solely on these ratings, but they will provide a good way to organize and rank factors. We con also consider it as a quantitative approach.