GGR252S Marketing Geography (Snow 2019 – Swales): Trade Area Analysis

Department of Geography – University of TorontoGGR252S Marketing Geography (Snow 2019 – Swales)Assignment Two (25%)Trade Area Analysis:The Example of an Upscale Automobile Dealership in the Toronto AreaThis assignment addresses retail location techniques using the example of upscale automobiledealerships for one automobile company in the Toronto area. You will consider the spatialdistribution of the dealerships, apply the Thiessen polygon technique, assess new potential locations,andcritically evaluate the approach you use. You will then address market variables using the census.PART A: Trade area delimitation for dealerships1. The attached map shows the distribution of locations for a luxury automobile dealership in theToronto Area on a base map of census tracts and income. The triangles show existing dealerships.The choropleth map shows average household income by census tract (the darker the greater). Thethick yellow lines are major highways. All the automobile company’s luxury models are available atall the dealership locations. Describe the spatial distribution of the stores. What locational strategy isapparent?2. On the map draw Thiessen polygon trade areas for all the existing dealerships (shown in triangles).3. Identify with a symbol theoretically best sites for new dealerships. Briefly explain your choices.Use Google Maps with the satellite option activated to explore some of the new sites. Identifyproblems with some of thetheoretically best sites you have identified. Give the map an appropriatetitle and legend (you can use the white space to the south east of the map to place the legend andtitle).4. If your student number ends in 0, 1, 2, 3 or 4 answer the following question using prospective(theoretically good) sites south of Highway 401. If your student number ends in 5, 6, 7, 8 or 9 answerthe following question using prospective (theoretically good) sites north of Highway 401. Pick theprospective site in your assigned area that you believe is the best for a new dealership. Justify yourchoice by comparing your chosen prospective site with other prospective locations in your assignedarea.5. Describe how you would use the Thiessen technique to evaluate the impact of locating a new storeat your prospective new site. (Just describe how you would do this; you do not actually have to doit.)6. Identify the limitations of the application you have executed forthis particular set of retail outletsin this particular geography. How appropriate is it to apply the methods to this set of stores? Couldalternative normative methods help in this analysis?Read the relevant chapters in the book, mostly Chapter Four, in order to complete thisassignment. The appendices are also useful, particularly Appendix Two which givesstep-by-step instructions on retrieving census variables. More detail on this below.PART B: Market evaluation using census variables7. You will be familiar with some census variables from Appendix Two in the textbook whichshows selected census variables for the entire Toronto CMA and one census tract (535034.02).The data are retrieved from 2016 Community Profiles at the Statistics Canada website: you have Search options: Place name, Postal code and Geographic code; select Postal code.Type in your home postal code and select the census tract number under Census tracts (CT) (e.g. apostal code near the campus is M5R 3C4 and the CT is 5350092.00). This will give you your homeCT and also a benchmark for comparison (such as the Toronto CMA).Study the census data for your home census tract and the Toronto CMA. Note that you also have theoption to “map” the census tract – try it. For your home census tract and Toronto CMA retrieve thedata for the following variables: median age, average household size, predominant dwelling type (e.g.single-detached, row house, apartment), average household total income and an ethnic variable anda commuting (journey to work) variable of your choice. Where appropriate convert to percentagedata to enable better comparisons between your home census tract and the CMA. Present the data forboth your CT and CMA in a small table. Also provide your home postal code and census tract numberin the table.8. Use the data to compare your home census tract with the Toronto CMA as a whole. How wouldthe variables you have presented be relevant for a luxury automobile dealership? Would your homemarket area be a good prospective site for a new dealership?9. How could you use a combination of the variables in Appendix Two and Appendix Three toevaluate potential market for upscale automobile dealerships?NOTE: The written component of this assignment must not exceed five type-written pages(exclusive of map and table), double spaced. Do not use small fonts or small margins. Staple, do notbind your assignment.DUE DATE: Hand your assignment directly to your TA at the beginning of your tutorial session asper the tutorial schedule otherwise it will be considered late and late penalties will apply.Readings: Stephen Swales (2018) GEOGRAPHY MATTERS: Location Analytics for Retail and PublicServices, McGraw Hill. (Chapter 4 & all three Appendices.)
Student Academic Integrity: It is essential that you read and abide by the guidelines on studentacademic integrity in order to avoid academic misconduct: plagiarism which can result in failing the course or worse.
Follow the instructions in Appendix One in the textbook to retrieve 2016 census data for theToronto CMA and your home census tract (use your home postal code to retrieve the latter).

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