Using New Branch Development Data to Assess Opportunity

1. New Branch facility development is an important measure of new dynamism, and should be considered in conjunction with entrepreneurial startup activity rates.

2. New Branch rates are developed by comparing the number of recently developed branches (BizMiner Marketing Research Profiles use a one-year analysis period) to the total number of establishments in an industry and area.

3. The rate of New Branch development varies widely by industry, making local branch development benchmarks against industry-wide patterns especially useful to assess current market vitality and to ascertain where bets being placed by larger players in a given market.

4. The most promising New Branch index is one that registers slightly above national averages, suggesting that other firms may have recognized local opportunity, but have not yet flooded the market. Consider targeting these areas in your marketing plan.

5. Where marketing research reveals very high New Branch index scores, emerging market openings may already have been snatched.

6. Where marketing research suggests a low New Branch index, the rate can signal either opportunity (low levels of competition) or low vitality (no interest, or poor market assessment, by competitor firms) -- requiring additional evaluation by the researcher.

7. Conclusion: Use comparisons of local and national New Branch rates within specific industry work best for firms with one or more localized market areas. For high opportunity areas to target in your marketing plan, look for a local New Branch index slightly above national averages (1.00 in BizMiner Marketing Research Profiles). For firms with markets not specific to any areas (including many manufacturers and traded services), New Branch rates serve best as an index of new growth vitality in the industry. In these, look for high national New Branch and Startup rates to identify dynamic, growth segments. (See Marketing Research Edge #1 for more information on Entrepreneurial Startup Activity rates.)

New Branch data is included in every one of BizMiner's 900,000 online Marketing Research Profiles, available for over 15,000 business segments. Marketing Research Reports are available in both national and local versions covering over 250 US metropolitan areas.


Available online at www.bizminer.com/market-research-report.asp.