Gravity Analysis – Data Segmentation

A classic work in market analysis was published by William J. Reilly under the title The Law of Retail Gravitation. Inspired by the formula for gravity, Reilly proposed that a similar formula could be used to calculate the point at which customers will be drawn to one or another of two competing centers. In other words, Reilly's formula allows us to determine in Km, for instance, the area from which an outlet is more likely to draw its customers. In the map below the line connecting all whiskers delimit this area.

Retail Gravitation Analyst applies the Law of Retail Gravitation as originally postulated by William J. Reilly.
This analysis can be very helpful to marketing and sales managers when segmenting territories for assigning budgets, planning surveys, measuring advertising, circumscribing area test markets, assessing performance, and more.