What is Market Presence?

Overall, there are a number of stores, but the overall number of stores does not sell well, and the ability to attract customers is weak.I often hear stories like this.Why?I would like to think about that.

On the flip side, when we plan to increase the number of stores, there are other things we should be aware of other than the number of stores.This time, I would like to introduce the word "market presence" as one of them.

What does market presence mean?This is called "Market Presence" in English. Market is "market". Presence means something like "being there".If you look it up in a dictionary, it is translated as "market presence."It's a word that's often used in business, and I myself use it a lot, but I don't think it's a very popular word in the realm of store openings and store development, so I'd like to explain.

What is market presence in the store development area?

Presence of the company name/brand name in the market to which the company belongs

can be rephrased asThis "presence" is explained by words such as "high/low" and "yes/no".

What does it mean to have a high market presence?

A high market presence means that a certain brand name (store name) has a presence in the market.It means that the rate of appearance of people who know is high.As a result, the number of people who have used the store, that is, the number of people who have used or stopped by the store with that brand name, should increase.

If you ask someone in a certain market, "Where is the name of the shop?"In technical terms, this is called the top of mind.As a result, the group of customers who know or have used stores with that brand name, in other words, the "customer base," will become stronger.Of course, the market share should also increase.

If you can make this kind of situation, the number of store property introductions will also increase.The number of property information is also increasing.

Conversely, what is a state of low market presence?A certain name has no presence in the market.Awareness and name recognition are low, and the number of people who have used it is also small.Far from the first recollection, it is not purely recollected.That's how it is.Not being remembered purely means that you can't remember and say the name.So, of course, the customer base is also vulnerable.

In such a situation, property introductions will not come and property information will not be gathered, so the level of market presence will affect store opening activities.So, of course, you want to have a high market presence.

How to increase market presence?

So, how should we open stores to increase our market presence?My goal is to increase my presence.I want to increase my customer base.I want to make it easier for the name to come up in the first recall and to introduce the store property.

First, we need to increase the number of stores.If the number of stores is small or large, the more the store is, the easier it is to increase market presence.

However, it is not enough to just follow the numbers and open stores.This is even more true in an age when the population is said to be aging and declining.As the number of store openings increases, it is necessary to proceed with store openings so that the market presence will increase.

In order to increase awareness and name recognition, it is necessary to open stores so that general consumers can frequently see their stores, logo marks, signboards, signs, etc. on a daily basis.However, with this expression, I think it is difficult to understand how "general consumers" are understood.So think about this.

How to increase your market presence?

This diagram shows the pattern of human behavior.People think they live somewhere.People move because they have a home and some destination.There are places to stop before and after going to the destination, there are places to pass through, and you change trains at stations, and move like an arrow.And finally come home.

If you think that you will take this behavior pattern, how will your market presence increase?

For example, let's say you have a store at your destination.Think of the green circles as stores.There is a store near the destination or at the destination.If you look closely, there are shops in the places you pass.There was that green logo again.Also, there was that green logo at the stop.In this way, you will see brand names, logos, and signs repeatedly along the way.By the accumulation of that, the feeling of "I should stop by" increases.

When a store you don't know opens with a pop, some people will go there right away, but I think many people won't go there from the beginning.With the number of shops gradually increasing in our living area, why don't we know the name of the shop, remember it, and visit it?Isn't the feeling that it's going to increase?

In this way, the market presence will increase.

What is a store opening that does not increase market presence?

On the other hand, even if the same three stores are opened, there are cases where the market presence does not increase.In the case of opening a store as shown in the figure below.

Imagine that there are three markets with different behavior patterns, delimited by red dotted lines.

Even with the same three stores, it is a case where one store is opened in each market like this.And it's a case where you stop opening a store here.If you open stores in this way, your market presence tends to be difficult to increase.

Just opening one store does not mean that general consumers will remember you.Also, it is normal to think that the number of people who regularly and daily circulate through these three markets is quite small.

When considering opening a store to increase market presence, it is necessary to consider the route of movement of general consumers in the location where the store is to be opened.It is necessary to gradually increase the number of stores in places where the company's store name and brand name will increase the presence of the company's store name and brand name.We want to increase the exposure of our brand name and sign more and more, but it is necessary to think about the movement route of consumers in the region and gradually increase the number of products along that route.

Also, it is important not to isolate a small number of stores in a specific area or leave them alone.It is also necessary to consider when deciding to open a store to avoid opening a store in a market where only one store can be opened, which may isolate the store.

Also, if store openings are concentrated in commercial facilities, only those who go to the commercial facilities will see the brand name (store name), so it will be difficult to increase the market presence in the entire area.Therefore, it is necessary not only to open tenant stores in commercial facilities, but also to arrange street-level stores on routes where people pass and move in a well-balanced manner.

In the future, there will be more and more demand to open stores while considering how to proceed with the area strategy in the area where the store is to be opened.

Summary/Importance of Area Strategy

In summary, this is the way of thinking about store openings in the future.

When opening a store, it is necessary to consider not only whether the location of each property is good or bad, but also whether the market presence of the company's brand name (store name) will increase.

Therefore, we may open a store because the location is good or because it is an area where we have not yet opened a store. I think that the store openings I have will be more and more necessary in the future.

What you shouldn't do at that time, what is dangerous is to isolate one store away.It is best to avoid leaving it in that state for a long period of time.If you do this, strangely, it is easy to cause a decline in Comp (Comparable Sales, year-on-year sales).The market presence in the area is not increasing, and it is not possible to attract customers as expected, and sales do not increase.If you leave such a state for a long time, you will notice that competing stores will increase in the surrounding area.Things like this can happen.It's not good.

I think that it will become increasingly necessary in the future to decide to stop opening stores in areas that would otherwise be isolated.

Please use it as a reference when you open a store in the future.

Our YouTube channelToMini courseI also uploaded it, so please take a look.