DR. JAMES SMITH

 

 

Site Selection Servicetm

~Sample~

Jacksonville/St. Augustine, Florida

Demographic & Psychographic Report

To Support Site Selection

&

Practice Marketing

 

 

 

 

 

 

 

 

 

Prepared June 2006

www.AmericanDentalMarketing.com

 

 

TABLE OF CONTENTS

PART 1: SUMMARY PROFILE

Motivation for this Site Selection Service

Delineation of Practice Area

ZIP Code Analysis and Numerical Ranking

Practice Area Highlights

Conclusions & Recommendations

Practice Area
General Dentist Locations by ZIP Code

ZIP Code 32259 – Jacksonville
ZIP Code 32082 – Ponte Vedra Beach

ZIP Code 32258 – Jacksonville

ZIP Code 32225 – Jacksonville

ZIP Code 32224 – Jacksonville

ZIP Code 32223 – Jacksonville

ZIP Code 32080 – St. Augustine

ZIP Code 32250 – Jacksonville Beach

ZIP Code 32092 – St. Augustine

ZIP Code 32256 – Jacksonville

ZIP Code 32226 – Jacksonville

ZIP Code 32095 – St. Augustine

Tapestry Lifestyle Segment Descriptions

Data Sources & Tapestry Methodology

 

PART 1: SUMMARY PROFILE

Motivation for this Site Selection Service

 

Dr. Jim Smith graduated from dental school and has spent the past year as an associate in several

general dental practices in Northern Florida. For a recent graduate, he demonstrates a remarkable

capability to generate an extremely high rate of clinical production. At this time, Dr. Smith believes

he is ready to launch his own general dental practice, and already done significant research on a

suitable practice location.

 

An additional important consideration for Dr. Smith is his desire to invest in real estate, meaning that

he wishes to purchase and own his new practice’s physical space. Therefore, his initial investment

in his new dental practice will require him to make a long term financing commitment of

approximately $1,000,000. We recommend that Dr. Smith proceed with the extensive due diligence

in advance of assuming this major financial responsibility – hence, our motivation for a demographic

analysis proposal as being appropriate in light of his goals and desires.

 

He seeks to attract a primarily upper middle class clientele, with a 70/30 mix of professional and

blue collar occupational background. He desires patients who truly appreciate a soothing and

classy, but comfortable rather than elite, office atmosphere. Disposable income in the practice area

should be sufficient to support him spending 30-40% of his time performing highly elective

procedures such as cosmetic dentistry not covered by insurance.

 

Dr. Smith would like to avoid treating young children, or the extreme elderly whose primary needs encompass palliative and denture care. At the same time, he does find the “baby boomer” and recently retired population to

be a highly desirable segment, as they will likely have a strong interest and the means to seek fixed

prosthodontic and implant dental care.

 

Delineation of Practice Area

Dr. Smith has identified his ideal location to be an office condominium currently under construction

south of Jacksonville, Florida. To determine the suitability of this location from a demographic

perspective, we defined the area of analysis to be the Jacksonville metropolitan area, with further

extension to the south for an additional 30 miles. This area covers all of Duval (Jacksonville) and St.

Johns (St. Augustine) counties and includes a total of 41 ZIP codes (see map on page 9).

 

ZIP Code Analysis and Numerical Ranking

For each of the 41 ZIP codes, we obtained data on 80 unique demographic characteristics related to

the success of a family dental practice. These are spread among broad categories to include

aspects of discretionary and non-discretionary spending, income and wealth, population distribution

and growth, education, employment, density of general dental practices, and lifestyle characteristics.

Our approach was customized for a general dental practice by focusing on population growth,

housing growth, household income, net worth, and expenditures on health care, dental services, and

discretionary health products/services.

 

Using a proprietary model developed by GamePlan Solutions, these factors were simultaneously

analyzed across all 41 ZIP codes in the practice area, and each ZIP code was assigned a score. The

scores were ranked from high (best combination of factors) to low (worst combination of factors).

 

Our ranking results are based upon refinements to the set of factor weights, where higher priority

factors are given greater emphasis relative to lower priority factors. Only a select few ZIP codes

remain consistently highly rated regardless of the weighting scheme applied. This sensitivity analysis

allows us to establish with certainty the very best ZIP codes for locating your new practice. The

rankings were found to be robust; that is, across twelve refinements of the model, only six ZIP codes

were consistently ranked in the top 5. This report summarizes demographic, economic, and

competitive conditions for the 12 highest ranked ZIP codes. These ZIP codes cluster together and

are referred to as the Practice Area.

 

Chart 1 below shows the ranking of all 41 ZIP codes by attractiveness. Dr. Smith’s target ZIP code

(32259) is ranked #1 out of all ZIP codes we analyzed. Also, the ZIP code adjacent to the south

(32095) is ranked #10. In fact, the 12 top-ranked ZIP codes are all clustered around Dr. Smith’s

target location, which suggests that the overall area is ideal for patient acquisition and growing a

successful practice. The map on page 9 shows the clustering of the 12 practice area ZIP codes.

 

Practice Area Highlights

This section of the report provides summary information for the 12 highest-ranked ZIP codes

combined (“practice area”) and for individual ZIP codes. Detailed profiles of each ZIP code begin on

page 15.

Table 1

Legend: 1=ZIP Code 2=Rank from Analysis  3=Area Name  4=Size (land area)

5=Population 6= Population Density 7=Population Growth (2005-10) 8=No. General Dentists

9=Dentists/sq. miles 10=Population/Dentist 11= Competition Level

 

   1             2              3                             4               5           6                7                8        9       10        11

32259      1             Jacksonville             54.3         25,327   466.5        31.9%        4        0.1     6,332   Very Low

32082      2             Ponte Vedra Bch     59.0         35,272   598.0        26.0%        15      0.3     2,351   Low

32258      3             Jacksonville             19.1         15,119   791.0        14.6%        1        0.1     15,119 Very Low

32225      4             Jacksonville             26.5          53,431  2,017.6     13.7%        13      0.5      4,110  Very Low

32224      5             Jacksonville             17.2          37,078  2,153.6     14.6%        4        0.2      9,270  Very Low

32223      6             Jacksonville             11.5          27,639  2,395.1     10.2%        14      1.2      1,974  Moderate

32080      7             St. Augustine           15.6          21,542  1,382.7     27.4%        19      1.2      1,134  High

32250      8             Jacksonville Bch       10.5          28,498  2,702.8     11.1%        16     1.5       1,781  Moderate

32092      9             St. Augustine            129.8        8,480    65.3 28        .2%          0      0.0                  None

32256      10           Jacksonville               68.4          32,879  481.0        12.0%       28      0.4      1,174  High

32226      11           Jacksonville               99.8          9,706    97.3          15.2%        0       0.0                 None

32095      12           St. Augustine             82.2          6,731   81.9          26.4%        0        0.0                 None

 

ALL 594.0 301,702 507.9 17.8% 114 0.2 2,647 Low

 

Population Size and Growth (Table 1)

  • Together, the 12 top-ranked ZIP codes cover 594 square miles and have 301,702 residents, for an overall population density of 508 persons per square mile.
  • Population density ranges from 65 persons per square mile in St. Augustine ZIP 32092 to 2,703 persons per square mile in Jacksonville Beach (32250).
  • The population of the entire 12-ZIP practice area is projected to grow rapidly (+18%) over the next few years, with every ZIP code expected to see double-digit growth.
  • Projected population growth for 2005-2010 ranges from 10% for Jacksonville ZIP 32223 to 32% for target ZIP code 32259.

Competition (Table 1)

·         Population-per-dentist ratios provide approximate measures of competition in each ZIP code.

·         Most dental practices have, on average, 1,200-1,500 patients per full-time doctor.

·         Areas with fewer than 1,200 residents per dentist are considered highly competitive, those with 1,200-2,000 residents per dentist are considered moderately competitive, and those with 2,000 or more residents per dentist are considered to have low competition.

·         While most residents see dentists located near where they live, others go to locations near where they work.

Practice Area

·         Residents may see dentists outside the area and vice versa. Thus, population-per-dentist ratios provide a general rule of thumb for competitiveness, but they are not definitive.

·         Because there are twice as many residents per dentist as the average practice (2,647 residents per dentist), the overall level of competition in the 12-ZIP code area is low.

·         Target ZIP code 32259 and other Jacksonville ZIP codes 32224, 32225, and 32258 have very low competition as well, with over 4,000 residents per dentist.

·         Ponte Vedra Beach (32082) has low competition with 2,531 residents per dentist.

·         Jacksonville ZIP code 32223 and Jacksonville Beach (32250) have moderate competition with nearly 2,000 residents per dentist. St.

·         Augustine ZIP code 32080 and Jacksonville ZIP code 32256 have high competition with fewer than 1,200 residents per dentist.

·         Jacksonville ZIP code 32226 and St. Augustine ZIP codes 32092 and 32095 do not have any general dentists.

 

 

TAPESTRY ANALYSIS (excerpts)

©ESRI BIS

Metropolitans (2.3%):

Metropolitans residents favor city living in older neighborhoods populated by singles or childless couples. These

neighborhoods are an eclectic mix of single- and multifamily structures, with a median home value of $183,000.

Residents include both Generation Xers and retirees, most of whom are prosperous with a median household

income of more than $55,000. Busy and actively living the urban lifestyle, Metropolitans residents participate in

yoga, attend rock concerts, and visit museums. They listen to jazz, news, talk, and sports radio and rent foreign

videos. They travel for business or pleasure, belonging to three or more frequent flyer programs. They

participate in numerous civic activities such as volunteering for environmental causes.

 

Green Acres (2.2%):

A "little bit country," Green Acres residents enjoy homes in a pastoral setting. This upscale market represents

developing fringe areas, with more in the Midwest. Most families are bluecollar baby boomers, many with children

aged 6–17 years. Their median household income of $61,200 and median home value of $168,000 are high

compared to that of the United States. Country living describes the lifestyle of Green Acres residents. They are

do-it-yourselfers and are not afraid to tackle home improvement projects such as painting and installing decks,

patios, and spas. They are enthusiastic about gardeners and own a separate freezer to hold the bounty. For

leisure, they watch Home and Garden Television, NASCAR races, and pro football games on TV. Their favorite

outdoor activities include hiking, hunting, and backpacking.

 

Rural Resort Dwellers (1.7%):

Rural Resort Dwellers residents follow the scenic route. Favoring milder climates and pastoral settings, they live

in rural nonfarm areas throughout the United States. These small, growing communities consist of single-family or

mobile homes with a significant inventory of seasonal housing. With a median age of 46 years, the population is

older than the U.S. median; most residents are married with no children living at home. Although retirement

officially looms for many,most are still working. Many in Rural Resort Dwellers neighborhoods are self-employed

with a median household income of $43,000. Simple living and consumer tastes describe the Rural Resort

Dwellers residents. They own equipment so they can work on home and garden improvement projects. Domestic

four-wheel drive trucks are popular. Their lifestyle includes baking and preparing home-cooked meals as well as

participating in local civic issues. They read magazines that focus on fishing, hunting, and home improvement.

They go hunting, listen to country music, and zoom around in power boats.

 

 

 

DATA SOURCES & TAPESTRY METHODOLOGY

Data Sources:

Demographics – ESRI BIS forecasts for 2005 and 2010, based on Census 2000 data

Socioeconomics – Income, value of owned houses, education, and occupation: ESRI BIS forecasts for

2005, based on Census 2000 data

Psychographics – Tapestrysegments: ESRI BIS (see below); household budget and medical

expenditures: ESRI BIS forecasts for 2005, based on 1999-2001 Consumer Expenditure Surveys,

Bureau of Labor Statistics

Competition – Number and locations of dentists by ZIP code were derived from American Medical

Information, a division of InfoUSA

TapestrySegmentation:

The Community Tapestry segmentation system provides an accurate, detailed description of America’s

neighborhoods. U.S. residential areas are divided into 65 segments based on demographic variables.

Using proven methodology introduced more than 30 years ago by the ACORN segmentation system,

neighborhoods with the most similar characteristics are grouped together, and neighborhoods showing

divergent characteristics are separated.

Each neighborhood is analyzed and sorted by more than 60 attributes including income, source of

income, employment, home value, housing type, occupation, education, household composition, age,

and other key determinants of consumer behavior. Data sources include Census 2000, proprietary

ESRI BIS 2003 demographic updates, the Acxiom InfoBase consumer database, the Mediamark

Research Inc. national consumer survey, and other sources.

Tapestry combines traditional statistical segment analysis methodology with the latest ESRI BIS data

mining techniques. These techniques complement and strengthen the traditional methodology used in

working with large amounts of geo-demographic data to produce a vigorous and compelling

segmentation of U.S. neighborhoods.