Chapter 8, Problem 1.3VC

Summary Introduction

Introduction:

Company RL has an expanding chain of business which had grown to 705 locations with $2.6 billion in country U’s annual sales. Though there were many competitors in the market, the growing business of company RL indicated that the firm has large room for growth. The director of marketing development, Person RR, is incharge for identifying sites which will maximize the store sales without compromising existing sales.

The features for identifying a good location has not changed in the past 40 years but the time duration of decision making has been minimized due to software development. Company RL parterned with company MIC  which contains powerful GIS for analyzing the trade area. MIC allows Person RR to develop psychographic profile of potential trade areas for company RL.

MIC segmented country U into 72 segements of customer profile. Person RR wants the new site to be atleast 3 mile from the exisiting RL firm and  which not negatively impact its sales more than 8%. A specific spot selected lies in the hands of seven real estate brokers of company RL.

To determine: The three classes of the chains which has most restaurant.