Client: A firm with almost a hundred stores in Hungary
Projekt: Market and location analysis of the sales network, determination of sales potential and analysis of sales outlets’ catchment areas.
Summary: Our client wanted to know which of its stores that outperform or underperform considering their capabilities.
Beyond answering this question our client wanted to know the market size and its respective market share in particular locations.
The original problem was that the country-wide measurable market share of our client was lower than it should have been, considering the number of its stores. Our client assumed that while they could sell more products and services in one location in comparison to the conditions of the area, in similar circumstances they cannot take advantage of market opportunities in other sites and sell less than they could.
The sales manager wanted to know which locations perform well, and which are the ones that lag significantly behind the capabilities of the area. They knew the turnover of their individual stores, but these data could not have been compared to anything until the beginning of the project. We obtained detailed information about the catchment area of the stores by the help of our data platform during the projekt. We analysed the demographic composition of retail customers in the area by household types, income and wealth characteristics, and living conditions. In view of this information we defined the needs of the retail customers on individual products, i.e. the demand for those products.
We determined the saturation level of specific areas by analysing the competitor locations and catchment areas – i.e. the market supply of the products.
The map tool, created as a result of this project, showed our customer’s market share and sales potential in each area in an accurately visible way. It was possible to define the product, service or store choice preference of an area even at address level. The analysis of the company’s sales points’ catchment area and the determination of their sales potential were completed. Our client uses this tool to measure its market share, plan ad campaigns, determine the annual sales plan and even to plan their sales hr.
As a result of our tool, they exactly know the predictible turnover of every store according to their locations, business and social environment.
They can set realistic goals, and the over- and under-performance can be certainly caused by human factors, which can be handled more confidently in this way.