Understanding the Effectiveness of Catchment Area in Retail Sector - An Analysis for Big Bazaar, Belagavi Zone

This paper attempts to highlight an ideal location for establishment of a new retail outlet which can be helpful to identify potential customer base in a geographical (Belgaum) area for existing retail outlets. The analysis is based on the principle of catchment area which is used by many organizations to locate their business taking into consideration the geographic and demographic factors of the residents of that area. The different types of catchment areas are studied which are related and relevant to their areas of operation. Analysis is conducted taking into consideration the customer related factors. Survey method is used to collect the primary data related to catchment area and the customer's opinion about the same. The main findings of this paper are that the customers prefer to shop in bulk during weekends and demand convenience of buying everything under one roof. Big Bazaar has got the advantage of being the only Hyper Market in the city and hence lures customers from extension areas.