Week 5: Target Area Analysis

The United Kingdom's vast expanse poses a unique challenge for Sportsman's Warehouse as it considers expansion. To ensure a successful entry into the UK market, the company must strategically target specific territories or populations where its products and services are most likely to thrive.

In this week's blog post, we will recommend target areas within the UK, backed by rigorous analysis. To convey our findings effectively, we will create geo-related visualizations, including scatter plots, geographical maps, and regional maps. These visualizations will not only highlight the selected areas but also provide a compelling rationale for our recommendations.

Based on the information available, we recommend targeting urban areas within the United Kingdom, specifically metropolitan regions such as London, Manchester, and Birmingham. 


Here's why:

Market Potential in Urban Areas:

The data shows that over 60% of all nature-based spending in 2019 within Great Britain occurred in urban settings. This indicates a significant demand for outdoor and sports-related products in cities. Therefore, focusing on urban areas aligns with market preferences and spending patterns.


Higher Population Density:

Metropolitan regions like London, Manchester, and Birmingham have higher population densities, offering a larger customer base for Sportsman's Warehouse. A larger population translates to more potential customers interested in sports and outdoor leisure activities.


Economic Viability:

Urban areas typically have a more diverse and economically active population. This means there is a higher likelihood of attracting customers with disposable income to spend on sporting goods and outdoor equipment.


Competitive Advantage:

Establishing a presence in major cities allows Sportsman's Warehouse to compete more effectively with other sports and outdoor retailers. These regions often have a concentration of competitors, and by entering these markets, Sportsman's Warehouse can position itself strategically.


Accessible Infrastructure:

Major cities benefit from well-developed transportation and logistics infrastructure, making it easier to manage supply chains and serve customers efficiently.


In summary, based on the data and market dynamics, targeting urban areas like London, Manchester, and Birmingham within the United Kingdom would be a strategic move for Sportsman's Warehouse's expansion. These regions offer the potential for a substantial customer base and align with the spending patterns observed in the data.





References

Park, N. (2022, December 21). United Kingdom population mid-year estimate. United Kingdom population mid-year estimate - Office for National Statistics. https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/timeseries/ukpop/pop 

Dutton, H. D. and A. (2021, April 27). Tourism and outdoor leisure accounts, natural capital, UK: 2021. Tourism and outdoor leisure accounts, natural capital, UK - Office for National Statistics. https://www.ons.gov.uk/economy/environmentalaccounts/bulletins/tourismandoutdoorleisureaccountsnaturalcapitaluk/2021#:~:text=The%20number%20of%20outdoor%2Drelated,in%202019%20within%20Great%20Britain. 

HDX. (2020, March 4). Home. Humanitarian Data Exchange. https://data.humdata.org/dataset/united-kingdom-high-resolution-population-density-maps-demographic-estimates 

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