Study Area Retail Saturation Limit Under The Wenzhou Cigarette Retail Outlets Competing Site Applications

The tobacco industry in China is monopolizing, but the competition in the tobacco retail market is fierce. In order to survive after breaking the monopoly channel, tobacco companies as channel businesses, have to improve their competitiveness by constructing a high-quality retail terminal network.The retail stores location decision is vital for the building of the cigarette retail terminal network. Under a competitive environment, the retail stores location aims to expand market share and improve profitability by reasonable decision. Rule of gravitation and retail regional saturation are two effective factors that affect retail competing sites. The thesis mainly analyzes the application of competitive location model in tobacco retail market restricted by the regional retail saturation. Firstly it introduces the research background and methodology, reviews the achievements in research location and competitive location, and explains certain factors of retail outlets location in the cigarette retail market of Wenzhou. Then it describes retail competition site model under the limit of retail regional saturation in detail, discusses the relevant parameters in the model, and makes a correlation analysis. Finally it takes samples in the target area into application. The result shows that the model can apply to location decisions in Wenzhou and can efficiently acquire an approximate solution.Its innovation lies in the analysis of ultra-high saturation of existing outlets of Wenzhou cigarette retail market, the solution of consumer demand by proposing the coincidence of existing high density of outlets and huge retail demand, and the use of consistency authentication by combining the expert scoring method with the group AHP to ensure the scientific quality gravity. The operation result proves the validity of the model in the course of practice through a certain cycle practice test.