GIS Project

Project Aim

The aim of this project is to identify the best location for a new video rental store in Palmerston North. Demographic data, travel times data, competitor data and population growth will be used to draw conclusions as to where the best site for a new video rental store would be.
 

Background

The video rental market is very competitive and recently has become even tighter. In Australasia video rental revenues have decreased around five per cent over the past five years. The reason for this is internet downloading, online DVD ordering, and the posting of television programs and movies online. High interest rates, combined with higher petrol and food prices has also been affecting spending on entertainment. A video rental business faces these and many other business challenges. A critical factor to the success of these businesses is location. In Palmerston North there are ten video rental sites. This project aims to assess where would be the best location for a eleventh player in this market. The age group that spends most on DVD and video rental is between 25 and 34 with an average weekly expenditure of $1.10 per person. The second highest is the 35 to 44 year age group and they spend a weekly average of $0.90 per person. We can see that the young to mid adult age group is more likely to use video retail outlets. DVD and video rental is listed under cultural services for the Household Economic Survey. Information gathered from this survey in June 2007, shows that spending on recreational services increases as household income increases. Although there is an interesting drop-off with households earning between $33400 to $44899 spending more on recreational services than the $44900 to $55799 group. Another fact to take into consideration is that the age group that has the highest yearly income is between 40 and 50 years of age. Taking all this into account, the key age group for video retail is between 20 and 40 years of age. Those with higher incomes in this age are especially more likely to use video rental stores.

 Report in Word format can be downloaded here