Allocating market share among all competing units is the heart of the gravity model. This is a function of the competitiveness of the competitors and the time to each from every neighborhood in the trade area.

Develop: a competitive ranking system and an
algorithm for market share by neighborhood

  • Identify the characteristics of the proposed facility and the competition that would most impact their ability to attract customers. Rank their competitiveness by these characteristics.
  • We use a combination of statistical modeling (artificial intelligence, stepwise regression analyses) to develop a relationship between 1) each neighborhood's business potential and 2) the competition's and the studied site's competitive rankings and 3) the travel time to the studied site and the competitors from each neighborhood.
  • A competitor is a competitor if it captures sales from the trade area even if it is located outside the trade area.
  • Differences may be due to statistical deviation, imperfections in the model, or may indicate a need for changes in the marketing program.
Gravity Model vs Actual Sales GIF

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