ArcGIS Business Analyst

Measure Cannibalization with ArcGIS Business Analyst Pro

Exciting features in ArcGIS Business Analyst Desktop
This blog is part of a nine-part series covering the tools and features of ArcGIS Business Analyst Desktop. Explore the full series by clicking the image above.

Short Description: Overview of the Measure Cannibalization tool in the Business Analyst extension for ArcGIS Pro

 

This is the 3rd blog in an 8-part series that highlights new capabilities in the Business Analyst extension for the 2.5 release of ArcGIS Pro.  Other blogs in this series can be viewed here.

In a market where you have multiple stores, understanding where cannibalization occurs is vital as each store is competing for the same customers and revenue.

The latest release of the Business Analyst extension for ArcGIS Pro contains the Measure Cannibalization geoprocessing tool. This tool identifies where trade area boundaries overlap to measure the impact of cannibalization in your market.

This 2-minute video provides a nice overview of this tool:

 

As the video illustrates, you can use this tool to create a layer of polygons representing trade area overlap.  The overlapped areas could signal marketing inefficiencies or in some cases show a positive market saturation.  To further assess this cannibalization, an optional report summarizes statistics that show the proportion of overlap between areas.

 

The images below provide a simple example of how cannibalization statistics are calculated.  Two trade areas are displayed below as light green polygons.

Map showing two drive time trade areas that are partially overlapping

The Measure Cannibalization layer is shown in darker green. This represents the area of overlap between the two trade areas.

Two Trade Areas with overlap and the Output Feature Class from the Measure Cannibalization tool, which captures overlap as polygons.

The statistics are displayed below in the Output Feature Class Attribute Table.

The field definitions are as follows:

The Measure Cannibalization report shown below presents these same statistics along with a map of each overlapped area.

 

Cannibalization Report displaying overlap statistics as percents.

Using the Measure Cannibalization Tool

Consider a scenario where you own five Southern California stores with trade areas defined by four-minute drive time polygons. You want to understand where cannibalization occurs, so that you can eliminate marketing redundancy in these areas.

Five Stores with four minute drive time trade polygons as trade areas, which overlap one and other.

Here is an example of how I used the Measure Cannibalization tool to examine the overlap between the 5-features in the “Drive Time Areas” layer:

Measure Cannibalization tool with parameters set to output overlap on Drive Time Trade Areas and Create Report Check On.

The output for this tool captures the areas of overlap, shaded in green below. The associated statistics are displayed in the open Output Feature Class Attribute Table, below the map. The highlighted row compares proportions of area and overlap between Store 2 and Store 3 Trade Areas.

The corresponding areas of overlap are highlighted in the map as well.

Five four minute drive time trade areas with areas of overlap and the Output Feature Class from the Measure Cannibalization tool, which contains polygons representing overlap.
Measure Cannibalization tool measures the overlapping trade areas for further analysis.

The optional Measure Cannibalization report is displayed below.
The report contains a page for each comparison and in this case, the displayed information corresponds to the highlighted row in the table above.

Optional Cannibalization Report Displaying Store 2 versus Store 3 Trade Area Comparison Statistics as Percents.

The cannibalization areas in the output can be further analyzed with Business Analyst tools and workflows to model change and identify best course of action.  For example, you can use the Enrich Layer tool to understand how many people live in the areas of overlap.

Additional information about these new tools can be found in the ArcGIS Pro documentation for Measure Cannibalization. We’re excited to share this new capability with you.  Please reach out and let us know if you have any questions about these two new tools or any other capabilities in ArcGIS Business Analyst.

Email the team: businessanalyst@esri.com

Below you can find some links for Business Analyst that you may find useful.

About the authors

Darren is a Product Engineer on the Business Analyst team. He enjoys the collaborative process of creating features that enable Business Analyst customers to model their vision of success.

Jordan Cullen is the group lead for the ArcGIS Apps Product Marketing team at Esri and the Senior Product Marketing Manager for ArcGIS Business Analyst. Alongside an extensive background in software marketing and multichannel communications, Jordan has a passion for analyzing consumer behavior and market trends, creating strategic content and captivating concepts, and helping the best customers in the world along their unique product journeys.

Connect:

Leave a Reply

Please Login to comment

Next Article

What's new in ArcGIS StoryMaps (October 2020)

Read this article