BizMiner Market Research Edge #4 Using Branch Data to
Assess Industry Consolidation Trends
1. The Market Research Edge #3 discusses
how comparisons of local and national New Branch rates within
specific industries help target high opportunity locations
and industry vitality.
2. This issue looks at another way to
use branch facility data – as a measure of Industry
Consolidation trends.
3. BizMiner Market Research Profiles – both the
national and local versions – include an Industry
Consolidation index which measures the change in branch
facilities as a percentage of total industry firms.
4. Marketing research measures at the
national level compare branch facilities to total establishments
at two different points in time, typically three years apart.
The concentration of branches, and changes in that rate,
are compared to measures for all industries or the parent
industry sector. The resulting measure suggests existing
and increasing concentrations of decision making in an industry,
an important factor when considering sales penetration opportunities
or competitive scale for your marketing plan.
5. Local Market Research measures
make a corresponding comparison between industry establishments
in a specific area and the same industry nationally. This
comparison can suggest the strength of local decision making
power in a given industry and area, an important consideration
when allocating sales and marketing resources to a specific
area in your marketing plan.
6. Branch employment measures add to
the depth of the analysis in both national and local marketing
research reports.
7. Conclusion: Consolidation trends
are not a barometer of industry or area vitality in the
same way as New Branch Development rates. However, a good
reading of Industry Consolidation trends can help firms
better understand an industry and allocate resources to
appropriate targets in and among industries and areas in
your marketing plan.
Industry Consolidation rates are
included in every one of BizMiner's 900,000 online Market Research Profiles, available for over 15,000 business segments.
Market 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.
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