We have all heard about geographical segmentation, but that usually deals with a BIG geographical area. But what if we take into account small sections of the cities? Is there enough in it to pay particular attention to location for different marketing decisions?
Well for starters, its nothing new. There is a particular reason why we find popular Fast Food shops in Dhanmondi and Gulshan areas only. There is a reason why the same item costs different in Uttara then in Mirpur in the same chain shop. Thats locational attributes playing a role.
But what i really want to put on the table starts with a question.
Are we taking maximum advantage from different locational advantages that we find ourselves in?
Let me follow it up with another question.
If one area is popular for one particular item (like Mirpur for Benarasi saree, Nilkhet for books) should a new business dealing with that particular item open up in that area or somewhere else?
Well the answer to the first question is a simple “No”. We are suffering way to much from “me-too” syndrome even when it comes to where we will set up our business. If not, we would have seen private universities springing up in Bogra and Shylet, a Coffee World outlet in Chittagong and a Fast food chain opening up all over the nation. But none of that is happening, is it? Guilty as charged!
But the answer of the second question is a little bit complicated. If the location of the business does not provide any direct locational benefit (Like Nilkhet is very close to Dhaka University. So it makes a lot sense to establish a Photocopy machine shop in that place even though there are quite a few one already), then it makes no sense to open up a business in a location where already there are similar businesses.
But quite incredibly, thats what we see time and again. That is why its really amazing when we cannot find a single decent fast food shop in Mirpur, no HSBC ATM machine in Shantinagor – Baily Road area (Although there are 3 ATM booths in Gulshan alone), no tehari or biriani store in Baridhara – Banani region….and the list goes on!
Just by targetting a particular area / location with a particular business which is not available in that area, profitable businesses can be created. Somehow this simple truth eluded all of us.