This blog post is a case study for a recent feasibility study that was completed by Research & Marketing Strategies (RMS), a market research firm in Syracuse, NY. The feasibility study aimed to discover interest and demand for an auto mall being built in the state of Arizona.

Objective: Our client recently acquired land in Arizona and partnered with our market research firm to evaluate the use of this property. One of the key establishments tested for this study was the feasibility of an auto mall. Key objectives of this study included: (1) identifying the best use of the land; (2) identifying other potential uses of the land; and (3) assessing the competition in the market places and measure the demand of such tested establishments.

Feasibility Study Firm Syracuse Ny

If we build it, will they come?

Approach: In order to address the objectives at hand for our client, RMS recommended the following components:

  • In-depth interviews (IDIs) among economic council members, industrial development agencies and other key business advisers to identify market potential for use of this property including but not limited to an auto mall. This component identified their awareness, market opinions and knowledge of applicable businesses related to demand for this property and market area.
  • Telephone survey among the target market within the primary market area (PMA) of the property. The survey provided our client with statistically reliable information on travel patterns, appeal of different uses for the property, demand for each and preferred sources for marketing, among other secondary objectives.
  • Demographic analysis to profile the targeted PMA.  This overview detailed household trends, consumer expenditures and other demographic trends in the region.
  • Competitive assessment of potential competition for auto malls or alternative uses, which identified locations relative to the market area, service offerings and other profiling statistics.  This helped the establishment on the property develop unique selling points (USPs) relative to its competitors.

What are the components of a feasibility study?

Results and Key Statistics at a Glance:

These key statistics were derived from the four component approach and statistical model designed by RMS for the feasibility study.

Population

  • Key demographic (25- to 54-years-old – to increase by 1.6 percent to 3.2 percent by 2016).
  • Willing to drive 50 minutes when shopping for vehicles.
  • 51 years of age is the average age for a new vehicle buyer.
  • Average household owns 1.8 vehicles in 2011 and its expected the average household will own 2.1 vehicles in 2016.
  • Consumer expenditures for vehicles to increase 23 percent to $84 billion by 2016.
  • Expected 16 percent household growth from 2011 to 2016.

Region

  • Existing market under-served by $122 million in vehicle sales currently.
  • Only two other similar auto mall style facilities are located in the PMA.
  • Property location is located along two interstate connections.
  • Approximately 50,000 vehicles travel the interstate between the exits where the property is located on a daily basis. This figure is expected to increase 60 percent over the next 18 years.

Community

  • Key stakeholders within the community were very receptive to the auto mall concept – 86 percent felt it could be successful.
  • More than 33 percent of area population believe that the area has a somewhat to strong need for car dealerships or an auto mall.
  • 24 percent of survey respondents (representing the population-at-large) said they would be likely to use the car dealership/auto mall in the area specified.
  • 76 percent of survey respondents (representing the population-at-large) said they believed an auto mall in the specified area would be successful.
RMS closely examined the four components of the market research project and rated each on a scale of positive, neutral and negative in relation to whether it would support the feasibility of an auto mall at the proposed property in Arizona. It was determined that an auto mall located on the proposed property would be a potentially successful venture.

Are you interested in hiring a feasibility study firm in Syracuse, NY for your needs? Contact our Business Development Director, Sandy Baker at SandyB@RMSresults.com or by calling (315)635-9802.