START WITH THE CUSTOMER – DON'T JUST LOOK FOR YOUR DREAM LOCATION AND FORGET ABOUT THE BUYERS.

(This article borrows its perspective from a post by my friend Viet Ba – and rewrites it in the way I usually share with those preparing to open a store, so that everyone can easily visualize and apply it in practice.)

A major mistake when looking for a storefront is focusing solely on finding a "prime location," a "cheap price," or one "near the market," without considering who you're selling to.

To clarify this, we need to go back to the basics: STP – Segmentation, Targeting, Positioning

(Segmentation – Targeting – Positioning)

It might sound like marketing theory, but in practice, when opening a store, this is the framework you need to follow:

• Knowing where to open
• Who are we serving?
• And how can I make them remember me?

1. Segmentation – Segmenting customers before classifying premises

The market is not a homogeneous entity.

If you're selling beef noodle soup, you need to know whether you're selling it to office workers, factory workers, people eating breakfast alone, or families eating together on weekends.

Each region has different customer flows, different needs, and different spending behaviors.

Here are some real-life examples I've encountered:

• A pho restaurant owner opened a shop on a main road, next to a car showroom. The food was delicious, clean, and reasonably priced – but business was slow. Because customers driving cars don't stop to eat pho on the sidewalk.
• Conversely, a student who opened a sandwich cart near the student dormitory gate – offering cheap prices and generous toppings – found it extremely popular because it met the right needs and targeted the right audience.

Therefore, before choosing a location, sit down and do the following exercise:

• What is the income range of my clients?
• How do they get around (motorcycles, cars, walking, etc.)?
• What time of day do they usually shop?
• What are their current consumer habits?

2. Targeting – Choosing the right customer group to serve

It's impossible to serve everyone. A good location isn't necessarily the most crowded, but one that attracts the right people.

There are three types of goal selection:

1. Indiscriminate sales – selling to everyone indiscriminately → this approach easily leads to failure because no one remembers you.
2. Focus on a specific group – serving only office workers during lunchtime, young people taking food away, or mothers with babies early in the morning.
3. Differentiation into multiple groups is necessary – but a flexible operating model is required (few people manage to do this systematically in the early stages).

One of my students – who opened a takeaway coffee cart – didn't set up shop in the middle of a busy intersection, but chose a small corner near an office with a shortcut for morning walks. He clearly stated: "I only need to serve 100 office workers a day, consistently."“

3. Positioning – Positioning yourself so customers remember you for the right reason.

The physical location is just the "framework." It's the positioning that helps customers remember you and return.

• How is selling bread different from the bread shop at the end of the alley?
• How is your coffee shop different from Highlands or TocoToco next door?

The key is to clearly define: What am I selling – to whom – and why should they come to my shop instead of the one next door?.

This answer helps me choose the most suitable location for the property:

• If the positioning is "a home-style canteen for office workers that's quick, convenient, and clean," then it needs to be near office buildings, have easy motorbike parking, and a clear view from the main road.
• If the positioning is "a chill tea shop for Gen Z to check in," then priority should be given to locations with good space and lighting, easy to set up for Instagrammable decor, and in areas with a high density of students.

Applying STP to a point-opening strategy – a relatable example:

You open a lunch restaurant in Tan Binh.

• Segmentation:

Divide the guests into:

• Office workers prefer clean, fast service at a reasonable price.
• Ride-hailing drivers prefer cheap, well-fed meals.
• Factory workers eat lunch in shifts.
• Targeting:

Choose to serve the office worker group (because of higher profit margins and easier repeatability of the business model).

• Positioning:

“"Clean, home-cooked meals, just like mom's cooking – served quickly within 20 minutes during your lunch break."”

With that positioning in mind, you'll know where to find a suitable location, how to choose a layout, how to communicate through signage and fan pages, and how to attract the right customers.

Don't start with the question: "Is this place nice?" Instead, start with: "Does this location cater to the right customers?"“

STP is the foundation for making decisions about opening new retail outlets without ambiguity, without being influenced by emotions, and especially without being lulled into complacency by seemingly "good" numbers that are meaningless to customers.

Anyone who's planning to open a shop should print this out and stick it on their desk – every time they go to survey a location, remember to ask themselves:

Who am I serving – which group am I choosing – and what do I want them to remember me for?