Location Analysis with Geomarketing - How it Works!

5. Sales Forecasts Through Gravity Analysis: To Make Statements About the Profitability of Locations

WIGeoGIS supports you with location-based sales forecasts. Gravity models make it possible to realistically simulate customer traffic and therefore sales probabilities. Such location assessments use microgeographic inhabitant and household figures as well as information on the regional consumer potential, be it the retail purchasing power or the product-specific purchasing power.

A decisive factor for a meaningful analysis is always the definition of attractiveness for each location, including your own locations and those of the competition. The attractiveness of a location includes information such as retail space, product range, number of employees and cash registers and available parking. Based on the distance, on the location of the demand and on the attractiveness of the sales location, gravitational analysis shows the chances of a potential customer visiting the sales location and thus provides clear statements on the expected sales.

Sales forecasts are dependent on the company and the industry. WIGeoGIS has extensive experience with predictive analysis and works with you to design your individual forecasting model. We determine the model parameters and their weighting together with you in a workshop. Ultimately, the combination of methods used depends on the industry and the defined goals. We will also be happy to provide you with the appropriate location assessment software.

6. Branch marketing

Location-specific market analysis is the basis for successful branch marketing. Save costs and avoid wastage. Both goals are achieved through regional target group analyses with geomarketing software. Target groups can be precisely localized and advertising areas selected on a small scale. Advertising campaigns are better controlled and the costs are reduced. 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

WIGeoGIS location analyses support the optimal branch orientation and management. The range of products can be ideally matched to the dominant target group in the branch environment.

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. The catchment area of the location is analyzed based on socio-demographic figures. Data on the ethnicity of people living in the catchment area also provides further valuable information for your product planning and personnel management.

Location analysis makes it possible to tailor the range of products to the regionally dominant target group. On the one hand, the location analysis provides you with clarity as to why certain articles are slow sellers at certain locations. On the other hand, it provides you with information about which products or package sizes are selling well due to the environment.

When should I use which location analysis?

In terms of methodology, GIS-based location planning makes use of a variety of analyses such as catchment area analysis, distance matrix, accessibility analysis, scoring, gravitational analysis and even the location allocation method. Which method is used depends on the one hand on your particular industry and on the other hand on your defined goals.

For years now, WIGeoGIS has been performing location analyses for numerous companies in a wide variety of industries.

Checklist for Modern Location Analysis

Would you like to analyze and evaluate locations, but don’t know if you’ve thought of everything? Check if you’re ready to go with our site survey checklist. The more you can check off, the more precisely your locations can be analyzed.

• You have lists with addresses of your locations and potential locations in Excel, as txt or a database.
• You know what your catchment areas should look like (accessibility on foot, vehicle, bicycle, radius or based on your customer data).
• You know your preferred location.
• You know your target groups.
• You have a preferred location environment and can describe it.
• You know your competition.
• You want to avoid cannibalizing your own locations.

Are you missing a check mark or do you have any questions? Then simply contact us using the form at the bottom of the page. We are experts in location analysis and with WIGeoLocation we offer you a modern web-based location analysis tool.

WIGeoGIS - Your Specialist for Location Analysis

Location Analysis with GIS - In addition to the right method, we rely on current market data and communication.

WIGeoGIS creates location analyses based on real key figures. These figures include regional market densities and market shares. Further key figures include market data, such as number of residents, employees, footfalls, competitors and purchasing power. WIGeoGIS supports you as a consultant and service provider with the following types of location analysis:

• White Spot and Greenfield Analyses
• Location Analysis with Scoring Model
• Branch Location Optimization with Location-Allocation
• Generation of Location Reports
• Sales Forecasts with Gravity Analysis
• Correlation Analysis: What Factors of the Location Environment are Relevant for Success?
  

It is essential here to first work together to determine the relevant location factors. WIGeoGIS will help you determine exactly what factors are important for your business.