Location Analysis with Geomarketing - How it Works!

1. Location Search: Identify the right areas for your locations

White-spot analyses allow you to identify promising locations in a city, region, province or country. The goal is to answer the following questions:

• Where are the white spots for my branch network?
• Where is the best location environment?

The careful selection of locations is the basis for success of any company. The best location concept will not do any good if the potential is lacking, the target group is not reached or the travel distance is too far for customers. Customized white-spot analyses help optimize and expand branch networks. They focus your expansion in the most promising areas.

2. Location Evaluation: All the relevant facts at a glance

The easiest way to determine the potential of existing or potential locations is with the WebGIS Software WIGeoLocation. Location analyses and reports allow you to assess the potential of a location and its environment based on your individual location factors in just 3 minutes.

3. Location Analysis Scoring Model: Which locations are really profitable?

Scoring models are ideally suited for the assessment of branch or retail networks in terms of actual market potential. The score is a combination of differently weighted location factors and describes the potential of the locations. It is then compared with the performance of existing locations. As a result, the location analysis shows:

• Which locations are successful from an objective point of view?
• Which locations need to be optimized?
• Where should branch relocations occur?

Conduct a location analysis using scoring models to benchmark existing branches or candidate locations.

4. Branch Network Optimization and Retail Network Optimization

If a location network is to be optimized or restructured, different what-if scenarios are considered:

• What is the optimal distribution of the branches in the market area?
• How many locations can the current market situation still support?
• How many locations are needed to best supply the market and where should they be positioned?
• Where is there potential for new locations without cannibalizing existing branches?

The location analysis compares the scenarios with the existing branch network. This shows which branches should be expanded (high-potential locations), merged, relocated or closed.

5. Sales Forecasts through Gravity Analysis: To make statements about the profitability of locations

Gravity models are used for location-based sales forecasts. The forecast models:

• realistically simulate customer traffic and therefore sales probabilities
• use microgeographic data on inhabitants, households and target groups as well as information on regional consumer potential
• include the attractiveness of your own locations and those of your competitors

WIGeoGIS supports you with location-based sales forecasts and the appropriate tools.

6. Branch marketing

Location-specific market analysis is the basis for successful branch marketing.

The objectives are:

• Avoid wastage
• Localise target groups precisely
• Better targeting of campaigns
• Reduce costs

Point-of-Sale campaigns are carried out at the locations that are most frequented by the product-specific target group. Location analyses help to increase marketing efficiency.

7. Category Management - environment-related category management

In order to ensure the long-term success of a branch location, information about the location environment is used for the category management and thus to promote sales.

• Which products or package sizes sell well?
• Why are items at certain locations slow sellers?

The catchment area of the location is analyzed based on socio-demographic figures, such as information on ethnic origin. In order to achieve an optimal orientation of branches, it is advisable to match the assortment to the dominant target group in the branch environment.