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Geomarketing in Practice

GfK GeoMarketing

Achieving market optimization through spatial analysis

Compact


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Dear Readers,

Geomarketing is a crucial component

or success in businesses o all sizes

and types. It allows companies to opti-

mize their markets, minimize risk and

realize untapped potential.

One o Europes largest providers o

geomarketing solutions, GK GeoMar-

keting is happy to present you with apractical guide to geomarketing that

details its typical business applica-

tions. In short, this valuable resource

explains what companies stand to gain

by implementing geomarketing and

how to do this most eectively.

Pleasant reading!

Doris Hardt-Beischl

Head o Sales, GK GeoMarketing

Foreword/ Contents Introduction

Introduction

What is geomarketing?

Components

1. Geomarketing sotware:

Analyzing and visualizing custo-

mers, turnover and sales territories

2. Geomarketing maps and market

data: Realizing potential bybuilding on a solid oundation

3. Geomarketing consultancy:

Profting rom the proessionals

know-how

Applications

1. Marketing: Analyzing customers

and target groups

2. Controlling and sales territory

planning: Target lucrative sales

regions

3. Branch network optimization,

location and expansion planning:

Laying the groundwork or successand growth

Checklists

About GK GeoMarketing

What is geomarketing?

Geomarketing is the cornerstone o successul businesses in this age o

digitalization and quickly changing markets. Geomarketing involves the

geographic analysis and visualization o your company data in order to spot

trends and relationships that would otherwise go unnoticed. Geomarketing

thus comprises the ideal basis or sound location and sales territory plan-

ning. Using digital maps to display your market, customer and company data

allows or more eective and efcient decision-making.

All businesses need to know where their bestcustomers are located, how much disposable

income their target groups possess and how

ar any given customer must travel to the ne-

arest sales or service point. Successul market

optimization depends upon utilizing all re-

sources to their ull advantage particularly

with regard to sales. Geomarketing provides

a comprehensive and insightul overview o

the relevant actors o a companys structure

and business operations. Put simply, geomar-

keting brings clarity to the many where ques-

tions with which businesses are conronted

e.g., where are my customers located?, where

is my turnover the highest?, where are my

target groups?, where are the strengths andweaknesses o my markets?, and so on. Com-

pany data can be geographically analyzed

because this inormation usually contains a

location-specic component. Tese analy-

ses allow companies to zero in on their re-

gional markets with increased precision and

accuracy. Geomarketing is a multiaceted

approach that allows or both a comprehen-

sive overview o market and company data

as well as detailed microgeographic analyses.Tis exibility is vital when attempting to

maximize your potential and pinpoint your

target groups in highly competitive markets,

where both local and more wide-ranging ac-

tors must be taken into account.

Areas o application

Geomarketing allows sales, marketing and

controlling divisions to extract valuable in-

ormation and insights rom company, cus-

tomer and market data. Companies rom

across all branches o trade use geomarke-

ting soware to determine market strengths

and weaknesses, evaluate and compare regi-

onal turnover gures, optimize branch and/or sales networks, plan marketing campaigns

and develop expansion strategies. Te geo-

graphic visualization and analysis o data

create new opportunities or growth and

market optimization. Furthermore, the re-

sulting insights serve as an objective basis or

inter- and intracompany exchanges as well as

a transparent oundation or making impor-

tant business decisions.


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5Introduction Sotware component

Geomarketing solutions

Geomarketing encompasses a ull range o

components and services. Geomarketing

soware, market data, digital maps and ex-

pert consultancy services oer a multiace-

ted approach to answering location-related

questions in sales, marketing and controlling.

Geomarketing in practice

Using examples rom everyday practice, Geo-

marketing in Practice provides an overview

o he many applications o geomarketing in

all areas o business, rom marketing, sales

and controlling to expansion planning and

sales territory optimization.

Some o geomarketings many uses:

GeoMarketing

sotware

Market dataConsultancy

Digital maps

Territory Planning

Real estate expertise

Branch network optimization

Risk analysis

Location customers

Location anaysis and planning

Direct marketing

Controlling

Demographic analysis

Marketing

Market analysisDemographic analysis

For the sake o clarity and compactness, Geomarketing in Practice avoids abstract theoretical

discussions as well as exhaustive listings o geomarketings every possible use. Rather, the

booklets aim is to help readers make ull use o the regional actor in their daily business

practices and inspire them to embrace the unbounded possibilities that a geomarketing ap-

proach aords.

Geomarketing sotware:

Analyzing and visualizing customers,

turnover and sales territories

1. Select appropriate maps:With geomarketing soware applications, its

possible to overlay multiple theme-specic

maps, creating an eect similar to placing

multiple transparencies on an overhead pro-

jector. Te layering principle involves placing

maps o regional areas such as states or pos-

tal code districts on the bottom, layers such

as highways, streets and rivers in the middle

and, nally, layers with point objects (e.g.,

city locations) on the top. Tis ensures that

all layers can be viewed simultaneously.

2. Import data:

Company data such as customer addresses

can then be imported into the soware usinga shared geographic point o reerence, such

as postal codes. urnover gures, sales orce

customer assignments and region-specic mar-

ket data like purchasing power can also be im-

ported into the maps using the same principle.

3. Evaluate data:

Geomarketing soware is customized or

business use. Tis type o soware employs

analytical tools originally developed by car-tographers and scientists and applies them to

solving typical sales, marketing and control-

ling tasks. Users can import and associate da-

tasets to perorm customized spatial analyses.

4. Export results:

Te digital maps and data can be exported

into multiple le ormats or presentations,

websites, e-mails or CRM applications. Ap-

plications o geomarketing soware at a glance:

Marketing (e.g., advertising campaign planning)

Controlling (e.g., market share analyses)

Sales (e.g., sales territory planning)

Expansion and location planning

Logistics (e.g., planning delivery zones,catchment areas, etc.)

Geomarketing soware is used by compa-

nies rom all sectors. Geomarketing busi-

ness solutions such as GK GeoMarketings

RegioGraph oers a wealth o analytical

methods and display options or getting the

most rom your company and market data.

> www.gk-regiograph.com

A crucial component o geomarketing is the visualization o data via a specialized

geomarketing soware application. Working with this soware involves several

straightorward steps.

Advertising/ Media planning


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7Map & data component Consultancy component

Te operating scope and struc-

ture o businesses in todays

markets are increasingly inter-

national. Digital maps and corresponding

market data constitute a reliable vehicle ornavigating the realities o the global mar-

ketplace. Using digital maps as your ound-

ation, you can import company and market

data to create compelling visualizations o

your border-crossing market activities, as

well as your branch networks and sales ter-

ritory structures. ogether, the maps, data

and geomarketing soware allow you to ex-

amine your market structure and potential

at a glance. For example, its possible to use

a Europe-wide postal code map as the basis

or an insight-generating sales map. You can

then identiy market potential by incorpora-

ting Europe-wide purchasing power gures!

GK GeoMarketing oers a wide array o

digital maps and market data

GK GeoMarketing is poised

to meet all sales-, control-

ling- and marketing-related

needs with its comprehensive range o di-

gital maps and corresponding market data.

GK GeoMarketing oers the worlds largest

collection o digital postal and administra-

tive maps, with coverage o 240 countries!

Map sets are available in country-specic

or continent editions and are regular-

ly updated and enhanced. For example,

GK GeoMarketing was the rst to oer asix-digit postal code map o Belarus. Te

highresolution maps comprising the Euro-

pe Edition provide comprehensive, gapless

and seamlessly tting coverage o the entire

continent. All o GK GeoMarketings data-

sets can be quickly and easily imported into

the maps using a geomarketing soware

application.

op-quality digital maps and

market data oer:

Complete coverage o all regions o the

country in question

Regularly updated maps and data reec-

ting the latest status o a given region Reliable sources o inormation, strict

quality control and high levels o detail

Perect compatibility between maps and data

Easy integration into geomarketing and

sales territory planning soware

For more inormation, visit:

> www.gk-geomarketing.com/en/digital_maps

> www.gk-geomarketing.com/en/market_data

Geomarketing consultancy:

Profting rom the proessionals know-how

Location-related business de-

cisions are oen risky, with ar-

reaching implications. Tey de-

mand vision, expertise and tact. In selecting

sites or expanding/restructuring sales and

service networks, theres always the danger

o not paying enough attention to critical ac-tors. Also, sometimes it can be challenging to

convince employees o the necessity or the-

se changes. An external consultant can oer

much-needed objectivity and provide invalu-

able support rom the planning phase to the

implementation stage. Such consultants oen

have years o experience advising companies

rom all branches o trade, as well as a tho-

rough knowledge o international site apprai-

sals. Its rare or businesses to have access to

this level o expertise rom internal sources.

When it comes to major company-wide de-

cisions, high-quality and unbiased geomarke-

ting consultancy services are indispensible or

maximizing chances or success.GK GeoMarketing oers a wide range

o consultancy options to assist in your lo-

cation and sales territory planning. Location

research services provide support to project

developers, retailers, investors and public

institutions in the analysis, planning and

comparison o sites, both domestically and

abroad. Location and expansion planning in

new markets can dramatically benet rom

GK GeoMarketings international experi-

ence and expertise. A member o the world-

wide GK network, GK GeoMarketing has

access to a broad array o high-quality mar-

ket data that is otherwise dicult or impos-

sible to obtain.

Our experts have many years o experi-ence in optimizing existing sales networks

and/or developing new ones. We support

you every step o the way, rom the evaluati-

on o your current networks to the selection

o the required market data and the imple-

mentation o the planned changes.

Components o proessional

geomarketing consultancy services:

Provision o economic and socio-

economic data or all o Europe

Perormance o on-site analyses, e.g.,

rentable space assessments, real-estate

appraisals, inrastructure evaluations

Optimization o sales territories andbranch networks

Determination o alternative sales

territory networks or site-usage concepts

Evaluation o real estate portolios

Communication o detailed, legally sound

advice and well-ounded recommendations

For more inormation, visit:

> www.gk-geomarketing.com/consulting

Geomarketing maps and market data:

Realizing potential by building on

a solid oundation


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9Applications: Marketing Applications: Marketing

Geomarketing means successul marketing

Geomarketing is indispensible when it comes

to marketing-related tasks. By illustrating

market data on digital maps, you can reveal,

at a glance, the distribution o target groups,

regions with particularly high purchasing

power and overall market potential. Tisdata can then be analyzed by geomarketing

soware to produce insightul results. Ex-

perienced consultants can answer any ques-

tions that may arise during this process, or,

in some cases, arrange or a market study to

be carried out that is specically tailored to a

companys needs. Successul marketing these

days means geomarketing!

Pinpoint target groups

Birds o a eather ock together. Tis well-

known adage also applies to target groups.

For example, in Germany, Berlin tends to be

a magnet or singles, while the ederal state o

Saarland is known to attractsenior citizens. Being able

to hone in on specic target

groups allows you to tailor your marketing

language more precisely, boost response ra-

tes and maximize resources.

Regionalized market data signicant-

ly enhances your ability to pinpoint target

groups. GK market data provides companies

with a wealth o inormation on their target

groups, including customer

age ranges, purchasing po-

wer and place o residence.

Its also possible to determine

the turnover o a specic product line accor-

ding to region. A specialized geomarketing

soware application displays this and otherinvaluable inormation, allowing you to spot

relationships and trends in your company

and market data that would otherwise go

unnoticed.

Locating target groups is not always

straightorward. For example, i a companys

target group is eyewear purchasers, it can

be dicult, at rst glance, to determine this

groups preerences with regard to places o

residence. However, with some insight and

creativity, it is usually possible to zero in on

target group locations. For example, areas

with high concentrations o senior citizens

tend to have a disproportionately large num-

ber o glasses wearers. A company can thenuse socio-demographic market data (e.g., the

GK Demographics dataset) to channel their

marketing eorts these regions.

Companies can signicantly benet rom

the advice o geomarketing experts with

regard to coming up with strategies or re-

vealing the regional distribution o their tar-

get groups.

Locate customers and analyze

response rates

An analysis o the current state o a companys

customer base can generate valuable insights

and provide an objective oundation on

which to build a more successul enterprise.

Most companies havent ully mined and

made use o the wealth o inormation ound

in their customer databases. While these da-

tabases oen contain details regarding tur-

nover gures, product sales and sales/serviceregion assignments, this inormation oen

hasnt been structured and analyzed or ma-

ximum benet.

A geomarketing analysis revolves around

combining and comparing dierent types o

inormation using a common location-rela-

ted actor and then displaying the results on

digital maps. Using this method, the possibi-

lities or recognizing trends in your data are

endless. For example, you can create an over-

view map that visually associates customer

locations with turnover. You can then spot

at a glance regions with a below-average

customer-to-turnover ratio. With a quality

geomarketing soware application, its a

cinch to do things like zoom in on specic

regions, create alternative scenarios and per-

orm a large variety o analyses.

Realize potential and optimize

advertising campaigns

A geomarketing approach gives marketing

divisions the ability to examine and illustra-

te their markets rom multiple perspectives,

rom a macromarket overview to highly de-tailed proles o individual

street segments. Macrodata,

in combination with geo-

marketing soware, have

application in the prepara-

tion and analysis o com-

pany data or management,

presentations and websites.

Detail-rich microdata are

invaluable or planning highly regionalized

advertising campaigns or other marketing

activities, such as yer distributions. Geo-

marketing components or successul mar-

keting:

Marketing: Analyzing customers

and target groups

Birds o a eather

ock together.

Geomarketing

provides a com-

prehensive pers-

pective o your

markets, rom the

smallest detail to

the big picture.

Areas

o appli-

cation

Market data

Target group defnition

and location

Market and product

potential determination

Turnover evaluation

and tool or setting

realistic sales goals

Sotware and maps

Customer analysis

Market analysis

Assessment o competition

Defnition o distributon areas/zones

Catchment area identifcation

Advertising and media planning

Presentations, websites

Consultancy

Client-tailored case

studies or on-site

evaluations o potential

Database enhancement

Marketing concepts


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11Applications: Marketing Applications: Marketing

Advertisements, brochures, trade airs and

mailings are expensive. Marketing person-

nel are under constant pressure to justiy

these costs, a challenge accentuated by the

act that the success o these endeavors is

notoriously dicult to calculate. O course,

one can measure the response rate to so-mething like a newspaper advertisement,

but questions such as whether more po-

tential customers could have been reached

using some other method oen linger.

A seemingly trivial question: How many

potential customers do you have?

Suppose, or example, that a large urnitu-

re store wishes to raise its regional visibi-

lity through newspaper advertisements or

mailings.

Point-o-sale studies show that custo-mers tend not to be willing to drive more

than one hour or shopping-related pur-

poses. Tis raises the seemingly straight-

orward question o how many households

are located within a 60-minute radius o the

urniture store. In other words, how large is

the potential customer base comprising the

target group in question? With a geomar-

keting approach, this otherwise dicult-to-

answer question is easily tackled.

For example, in the geomarketing so-

ware application, you can create driving-

time zones with a ew clicks o the mouse.

You can then calculate and display the po-

pulation gures, household numbers andmany other details or these zones. Only a-

ter using this approach to arrive at the num-

ber o potential customers will you have a

solid oundation or accurately assessing

your target groups, growth potential and

marketing budget. Te benet o geomar-

keting lies not simply in coming up with

accurate numbers, but also in the ability to

illustrate these results on digital maps. Te

Using geomarketing to fne-tune

a urniture stores advertising campaign

Reach more

customers or

the same money

by using a

geomarketing

approach to

marketing

campaigns.

combination o these two elements makes it

easy to identiy regions with especially high

concentrations o your target groups.

Maps as a means o communication

between management, sales and marketing

Te term transparency is requently ci-

ted with regard to ostering understanding

mongst management, sales and marketing

teams. With the help o high-quality digital

maps, marketing divisions no longer haveto settle or vague speculations concerning

the success o their campaigns. Digital maps

can reveal, in one glance, the regional pro-

le o the areas that delivered the highest re-

sponse rates, such as, or example, those in

which mid-level income groups dominate.

Assume that a mailing o 500,000 bro-

chures is planned within a catchment area

o 2.5 million households. Using a geomar-

keting approach, the company in question

can concentrate its mailings primarily in

those sub-regions where its main target

group mid-level income-earners resi-

des. Tis ensures the best possible response

with the resources at hand. Te maps canprovide a digital snapshot o the response

rates and target group locations at any point

in the process, making them an ideal ree-

rence point to pass on to management.

Replace best guesses with solid science

Geomarketing acilitates better decision-

making by providing marketing teams with

actbased analyses visualized on digital

maps. Tis acts as a corrective to unrealistic

goals and expectations, while stimulating

insights about how and where to realize un-

tapped potential. Multiple

actors can be illustrated

simultaneously, including

areas o opportunities and

the presence and impact

o the competition in a gi-

ven region. Te latter oen

sheds light on why a com-pany enjoys market domi-

nance in some areas, while

struggling in others.

Put simply, geomarketing produces re-

sults that guide companies to more inor-

med courses o action. Returning to the

urniture store example, a geomarketing

approach highlights the specic geographic

regions where a marketing campaign is

most likely to yield ruit. Tis increases the

response rate, which in turn translates to a

more lucrative campaign!

Locate target groups and measure

success with geomarketingGeomarketing is a highly ecient tool or

carrying out targeted marketing actions. It

supports marketing teams across the ull

range o their tasks, rom the creation o

an advertising campaign to the measuring

o response rates. Geomarketing also serves

as a versatile channel o communication

between management, sales and marketing

personel.

RegioGraph makes it easy to calculate

distance zones around your branches.

urniture store

20-minutes-zone455,941 households

40-minutes-zone786,447 households

0-minutes-zone,860,353 households


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13Applications: Controlling/ Sales Applications: Controlling/ Sales

ransorming complex structures

into enlightening analyses

Te geo actor contained in company and

market data makes it possible to spot relati-

onships and trends in inormation. Geomar-

keting involves taking many actors into ac-

count simultaneously. Tis helps companiescoordinate their operations, ensuring that

everything rom stocking strategies or indi-

vidual branch locations to logistical planning

and the allocation o sales orce assignments

unctions like a well-oiled machine.

Its rare or a company to enjoy a perect-

ly balanced presence across its markets and

product lines. In order to secure long-term

success and growth, companies must take re-

gional market variations into account. Only

then can they achieve their ull potential.

odays competitive markets can be unorgi-

ving to companies with inecient operating

practices. Clarity as to a companys structure

and how its sales territories contribute tooverall turnover is essential in order to im-

plement business strategies custom-tailored

to regional market conditions.

Geomarketing in controlling:

See the meaning behind the numbers

With its nger on the pulse o turnover gu-

res and revenue, controlling divisions providecompanies with a oundation

or perorming targeted mar-

ket optimization. Geomar-

keting has a key role to play

here as a tool or comparing

company data with market

potential. As a result, areas o

strengths and weaknesses can

be more easily recognized and measured.

Customer and turnover distributions:

Where are the most important customers

and regions located?

Most companies have a very large database,

complete with inormation on key accounts,customer locations, turnover share and the

nearest supply points. Without geomarke-

ting soware and digital maps, the unique

trends and relationships contained in this

data would likely go unrecognized. Geomar-

keting allows controllers to illustrate this in-

ormation on digital maps, giving them the

ability to provide daily updates and samples

or distribution to employees or publication

Controlling and sales territory planning:

Target lucrative sales regions

Geomarketing

supports controlling

and management in

the securing and

development o

markets and in the

realization o com-

pany potential.

on websites. Tese digital maps also serve as

convincing reerence points or company re-

ports and strategic decisions.

Measuring success, determining market

share and setting realistic goals

Companies can only gauge how they are per-

orming in the market aer comparing their

results with the cumulative potential o the

regions in which they are active. Market data

serve this end, helping businesses set realis-tic turnover goals. Tis inormation ranges

rom data on companies in the industrial

sector organized according to size and post-

code districts (GK Prole and Distribution

o Businesses), to GK point-o-sale turnover

gures or a wide range o product lines. By

comparing this data with company turnover

gures, its possible to determine the extent

to which potential is being realized. With

this inormation, companies can gain clarity

with regard to their market penetration and

channel their eorts accordingly.

Discovering whether locations and sales

territories are ully optimized, and i not, whyShould some o your locations be under-

perorming, a geomarketing analysis can

pinpoint potential causes. For example, by

displaying each such locations catchment

area prole with a geomarketing soware

application, its possible to assess the eect o

competing stores, accessibility issues and the

purchasing power o the nearby population.

Using this approach, one can determine i

the problem lies with the location itsel, the

regional inrastructure or an incompatibility

between the purchasing habits o the local

population and the service

or product being oered.

Sometimes, this analysis

reveals that a targeted sales

and marketing campaign

would be helpul. In other

cases, it may become appa-

rent that a companys salesterritories suer rom stark

variations in potential. For

example, while some sales areas enjoy high

concentrations o regular customers, others

may be struggling, serviced by sales person-

nel who must drive signicant distances to

meet with customers whose purchases con-

tribute very little to the overall company

turnover. With the help o geomarketing

analyses, controlling can give the sales team

valuable eedback regarding sales and ser-

vice network optimization. In short, geomar-

keting helps the controlling and sales teams

work together more eciently and produc-

tively. oo oen sales and controlling remainin their sel-enclosed worlds. Companies

are most successul when they nd ways to

bridge the gap between these two divisions,

ensuring that both are proactively involved

in the articulation and implementation o a

unied market strategy. Geomarketing can

bring these divisions together by providing

concrete insight into what needs to change in

order to boost a companys perormance.

Geomarketing

sotware and

market data

help transorm

inormation

into insights.


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15Applications: Controlling/ Sales Applications: Controlling/ Sales

Te external sales orce is the most expen-

sive contingency o a sales division: each

customer visit costs a company an average o

between 120 and 800 euros; a

single sales orce member thus

carries an annual price tag

o 100,000 euros. Tese costs

highlight the importance o

taking a targeted, cost-benetapproach to the utilization o

company expenditures. By

regularly perorming sales

territory optimizations, businesses can en-

sure that nothing goes to waste, particular-

ly with regard to sales orce assignments.

Tese optimizations serve to elevate the

cost-eectiveness o the regions in questios

while improving prot margins and emplo-

yee motivation. Te upshot: A geomarketing

approach actualizes potential, increases tur-

nover and decreases costs.

A success story: Vichys geomarketing-

approach to sales territory planningSince 2003, Vichy has been using Regio-

Graph, GK GeoMarketings geomarketing

soware solution or sales territory planning.

Vichys controlling team prepares the com-

pany data, aer which a GK GeoMarketing

consultant visits the company to perorm a

comprehensive sales territory planning ana-

lysis using RegioGraph. A consultants ex-

pertise signicantly contributes to the sales

territory optimization process, explains Ste-

an Mohrlang, a sales controller at Vichy: A

regularly perormed sales network optimiza-

tion makes sense both rom the standpoint

o the market as well as the company, he

explains. Te challenge consists in keeping

personnel inormed with regard to emerging

developments in our markets, while, at the

same time, communicating a clear visionconcerning the uture direction o the com-

pany. Geomarketing has been pivotal in hel-

ping us accomplish this goal.

Sound sales and service territory plan-

ning involves taking multiple actors into ac-

count simultaneously, including the current

state and projected growth o the market(s)

in question, existing company-client relati-

onships, sales territory size, market poten-

tial, travel requirements or customers and

the external sales orce, number and type o

customers, transport networks and natural

barriers such as

mountains and

rivers. Aer ob-taining a compre-

hensive overview

o our markets, we

used RegioGraph

and digital maps

to illustrate and

analyze the struc-

ture o our sales

territory network

Sales territory planning a recurrent theme

Regularly up-

dating yoursales and service

networks is

essential or

ensuring long-

term success.

the geomarketing approach incorporates

the experience o all sections o a business

as well as the expertise o consultants. Te

result: a selection o realistic, thoroughly re-

searched suggestions or optimization that

are much more likely to win the support and

condence o employees. Geomarketing a-

cilitates concrete, straightorward proposals

or how to hone in on the most promising

regions o your market or reduce the trave-

ling done by the external sales team.Aer the proposed changes have been

discussed, a GK GeoMarketing sales terri-

tory planning consultant manually ne-tu-

nes the changes in RegioGraph says Stean

Mohrlang, continuing his explanation o

Vichys restructuring process. Te act that

the results o any changes made in RegioGraph

can be seen immediately makes it an irrepla-

ceable tool or restructuring.

Finally, the results o the restructuring are

detailed in reports and illustrated on maps,

both o which are passed on to all employees

so that everyone is ully in-

ormed. I was particularly

impressed by the quality andstraightorwardness o the

results. Everything was very

clear despite the complexi-

ty o the theme, Mohrlang

comments. Geomarketing

carried out with the help o

RegioGraph and an experienced consultant is

an immensely important component o Vichys

sales territory planning and optimization.

Step 1: Assess

the current stateo things.

Step 2: Identiy

planning goals.

Step 3: Optimize

your markets

with the help o

geomarketing

sotware and the

advice o an expert.

Low-risk

planning:

Geomarketing

brings max.

efciency toexternal sales

orce resources.

as it existed at the time, says Mohrlang,

describing the next phase o Vichys salesrestructuring. We then dened the criteria

that were relevant to our purposes. Finally,

aer producing some concrete restructuring

suggestions using the soware, we discussed

the results with our external sales team, ma-

king sure that any proposed changes took

their on-the-ground experience and insights

into account.

Geomarketing creates transparency and

highlights courses o action or sales orce

optimization

Regular sales structure reviews are an essen-

tial business practice and should ideally be

done rom time to time in the presence oan unbiased external consultant in order to

ensure objectivity. Its not helpul simply to

give the sales team members a top-level di-

rective that they should shorten their driving

distance or meetings with customers.

Geomarketing oers a transparent and

trustworthy solution to this situation, provi-

ding well-grounded suggestions or changes

in a visually compelling ashion. Moreover,


9/13

16


17Applications: Expansion planning Applications: Expansion planning

Location planning:

Preparing or the uture today

A standstill in a companys market develop-

ment is almost always atal. Opportunities or

entering and expanding into markets oendont come around twice. In a companys lo-

cation, network and expansion planning, its

vital to pay attention to regional actors. Cus-

tomers, target groups, delivery depots, compe-

titor locations, purchasing power and consu-

mer condence are never distributed equally

throughout a given market. Numerous locati-

on studies carried out by GK GeoMarketing

have shown that many mar-

kets contain signicant untap-

ped potential, particularly in

countries where the market in

question has only recently as-

sumed momentum. However,

oen these areas o greater po-tential also pose greater risks.

Misguided location-related

decisions are extremely expen-

sive and can only be reversed

with great diculty, i at all.

Geomarketing allows compa-

nies to objectively measure opportunities or

success and minimize the associated risks.

Businesses should take a variety o things into

account when making location-related decisi-

ons. GK market data provide an objective basis

or the Europe-wide evaluation o markets and

their potential. Geomarketing soware bringsthe numerous actors into ocus through ana-

lyses and compelling illustrations. Its possible

to identiy trends and orecast likely develop-

ments based on the current market status. Te

third component is consultation with an ex-

perienced location and real estate expert. GK

GeoMarketing consultants regularly perorm

on-site studies, giving them a broad know-

ledge base that can help companies evaluate

their plans and goals more objectively.

Geomarketing oers all the angles on your

markets as well as your location, sales and

service networks

A companys long-term success depends notjust on the status o an individual location, but

also on the conguration and interaction o

the entire network o locations. Depending on

the goals or phase o development o a parti-

cular company or market, the ollowing cour-

ses o action promote, enhance and sustain

success:

Branch network optimization,

location and expansion planning: Laying

the groundwork or success and growth

Expert advice and

appraisals are

a crucial aspect

o making well-

ounded location-

related decisions,

particularly when

entering unami-

liar markets.

experienced expert include the quality o

the location itsel and the surrounding in-

rastructure, the develop-

ment prospects and the

eect o planned projects

in the immediate vicinity.

GK GeoMarketing location

analysts careully consider

all o these issues and many

others when carrying out a

site assessment.

Impact analysis legally-

sound planning or

trouble-ree growth

Many European countries

have very restrictive policies

with regard to the establishing and operating

o large-area retail outlets. Teres oen a si-

gnicant amount o bureaucracy to take care

o at the beginning o a pro-

ject. Frequently the potenti-

al impact o the new project

on existing retailers, supply

areas and nearby town cen-

ters must be claried.GK GeoMarketing is

well versed in laws, provi-

sions and building regulati-

ons throughout Europe and

has a wealth o experience

in serving as a neutral and reliable mediator

between local authorities, project developers

and the public.

Geomarketing

helps compa-

nies identiy

regional trends

and quickly

adapt to the

current and

uture repercu-

sions o com-

pany or market

changes.

Branch network optimization

Te goal o a branch network optimization is

to ensure that all locations are accessible to

as many customers as possible, achieve more

avorable positioning than the competition

and increase the market share in the regions

under review. A key component o this ap-

proach involves carrying out a detailed ana-

lysis o the existing and/or uture locations

with the help o an experienced location-re-

search specialist such as GK GeoMarketing.Its important that companies draw on this

expertise so that they can successully achie-

ve a greater and sustainable presence in the

desired target market.

Site appraisals

Location analysis revolves around identiy-

ing the actors inuencing the success o an

individual location or collection o locations.

Retail outlets, or example, only turn a pro-

t i enough customers show up on a daily

basis. Proessional location and real estate

researchers thereore analyze the specic

components that relate to customer requen-

cy: proximity o store to place o residence,draw o the retail location, accessibility,

nearby competition and the sites socio-de-

mographic prole. Regarding the latter, this

could be anything rom a town center or a

specialized store in an outlying retail park to

a shopping center.

Other important actors that oen can

only be properly evaluated on-site by an

The right loca-

tion i.e., the

place best suited

to a companys

specifc needs

emerges through

a comparative

analysis o region-wide market cri-

teria and detailed

microgeographic

assessments.


10/13

18


19Applications: Expansion planning Applications: Expansion planning

Retailers increasingly eel pressure to gain a

oothold in international markets in order

to enjoy continued growth. Eastern Euro-

pe and Asia are particu-

lar points o ocus among

todays orward-lookingbusinesses. Cultural di-

erences oen pose signi-

cant challenges to Wes-

tern companies looking to

make an entry into markets

abroad. Local laws, cus-

toms, business models and

practices oen dier ra-

dically. Any site-selection

strategy must take these is-

sues into account. In order

to accurately assess market

potential, its necessary to examine socio-

economic and socio-demographic data on

the microgeographic level.Market research concepts and practices

in some developing markets lag behind

those o industrialized nations. Tis means

that market data, when available at all, is

requently less detailed and comprehensive.

As a result, geomarketing has assumed a vi-

tal role in guiding retailers in the search or

suitable business locations in these impor-

tant growth regions.

Invest today in the land o the rising sun or

big wins tomorrow

With over 1.3 billion inhabitants, the Peoples

Republic o China is the worlds most popu-

lated country. Combine this number with

the countrys constantly rising purchasingpower, and its obvious that the Chinese mar-

ket will play a dominant role in the uture.

Chinas retail-related turnover is expected to

exceed Germanys by 2015. By 2025, experts

predict that China will be the third largest

consumer market in the world.

GK GeoMarketing recently perormed a

location analysis in Peking in order to cal-

culate the purchasing power or a German

clothing company looking to enter the Chi-

nese market. Using the geomarketing so-

ware RegioGraph, population data was pre-

pared, analyzed and dierentiated according

to region. With the help o these gures, con-

sumer potential was calculated, providing therst objective benchmark or the companys

plans to expand to China. Tis served as a

oundation or calculating optimal catch-

ment areas so that the company could gain

insight into the proposed locations ull mar-

ket potential.

Further calculations on location-related

actors were carried out, including site lo-

cation characteristics, accessibility, nearby

Expand or expire: Meeting the demand

or growth in todays global markets

competition and the nature and structure o

existing businesses in the immediate vicini-

ty. Te results yielded detailed inormation

regarding the most suitable locations, as wellas regions to be avoided.

Shopping centers are the preerred rst step

when expanding abroad

When expanding into new markets abroad,

retailers oen preer to begin with a shop-

ping center location. However, the on-site

studies carried out in Peking by GK Geo-

Marketing location researchers revealed

Expansion,

location- and

sales network

planning can

be enhanced

tremendously

by importing

region-specifc

socio-demogra-

phic data into a

geomarketing

sotware appli-

cation.

Geomarketing

helps determine

whether a par-

ticular sales

concept can be

applied to a

oreign market.

that shopping centers have not yet gained

the consumer condence enjoyed by de-

partment stores. Still, the studies showed

that quite a ew shopping

centers have opened in re-

cent years and their accep-

tance among consumers

is steadily rising in many

locations.

o the German clothing

company or whom thesestudies were perormed,

the resulting inormation

and insights were a decisi-

ve component in their expansion planning.

In growing markets like China, its vital to

know how purchasing power levels vary

regionally. For example, although over-

all purchasing power is increasing rapidly

throughout China, only a

small percentage o the po-

pulation has enough dispo-

sable income to shop regu-

larly or Western products

and brands. A geomarke-

ting approach can pinpointthese particularly afuent

areas, thereby substantially

increasing a companys chances or success.

Geomarketing oers a reliable ounda-

tion or expansion-planning decisions, the

results o which aect a companys health or

years to come. A geomarketing approach is

thereore indispensible amidst the complex

challenges posed by todays global markets.

GK Geo-

Marketings

experts specia lize

in the research and

analysis o

original data sour-

ces and draw on

years o internatio-

nal experience


11/13

20


21Checklists Checklists

End-consumer data

GK Purchasing Power Europe

Shows the disposable income o the

population according to consumers

places o residence

GK Purchasing Power USA and Canada

Number o Inhabitants

Number o Households

GK Retail Purchasing PowerReveals demand or xed-location

retail trade and mail-order trade accor-

ding to region

Retail trade data

GK Point-o-Sale (POS) Turnover

Shows the amount spent on retail goods

according to the place o purchase

GK Retail Centrality

Reveals the drawing power o locations

i.e., the relative attractiveness o muni-

cipalities as shopping areas

Europe Retail Location Guide

shows the top European metropolitanareas at a glance

reveals the most important details

about the retail situation in 341 Euro-

pean cities

analyzes the retail potential in European

cities in 31 countries

is an important tool or nding the ideal

retail location in Europe

What inormation does it provide?

Te ollowing data are included at both nati-

onal and city levels:

number o inhabitants

number o households

GK Purchasing Power

age demographics

retail sales growth rates (GDP, private expenditu-

res and retail sales)

shopping center areas (rented space/

GLA) and addresses

Te data are supplemented by graphs il-

lustrating three- or our-year trends as well

as a comparison o the European and natio-

nal average.

Overview o available European market data

All o the listed datasets are available down to

the level o postal codes and municipalities.

Sales territory optimization checklist

Whether perorming your own sales territory optimization or hiring

proessional consultants, the ollow guidelines should be ollowed in

order to ensure that any resulting company changes are successul and

accepted by all employees:

o Allow enough time or the planning phase (at least six months).

o Collect and enter all available data regarding the existing

structure o the company into a database.

o Provide a detailed timerame to all those to be aected by

the process.

o Consult the knowledge and experience o the external sales orce.

o Defne goals clearly e.g., more time or customers, 10% new

customer acquisition, concentrate more on key accounts, cut

operating costs by 30%, etc.

o Carry out a detailed documentation and analysis o the current

state o your company and markets.

o Acquire the relevant market data: branch benchmarks, purchasing

power or specifc product lines, customer potential, customer

surveys, etc.

o Strive or objectivity and transparency throughout the planning

and implementation phases.

o

On the web

You can consult this checklist as well as urther inormation on location planning at

> www.gk-geomarketing.com/download_phases


12/13

22


23Checklists About us

Who is GK GeoMarketing?

GK GeoMarketing is one o the largest Eu-

ropean suppliers o geomarketing solutions,

building on an experience o more than 70

years. GK GeoMarketing oers innovative

geomarketing solutions or companies Euro-

pe-wide and rom all branches o trade. Te

companys core areas are:

Consultancy or location researchand sales territory planning

Europe-wide market data

Worldwide digital maps

Geomarketing sotware solution

RegioGraph

GK GeoMarketing is a subsidiary o GK,

the worlds ourth-ranked market research

organization. GK GeoMarketing promotes

business success through its innovative array

o geomarketing solutions, complemented by

its access to high-quality market data romthe globally active GK network.

GK GeoMarketing employs a total o

more than 100 sta across its three locations

in Bruchsal, Nuremberg and Hamburg. It re-

gularly presents its products and services at

trade airs throughout the world.

o Macro-location:

Administrative conditions, accessibility, characteristics o immedi

ate environs, socio-demographic and macro-economic profle

o Micro-location:

Analysis o the property and its surroundings, accessibility, avail-

ability o parking, site image, building regulations

o Competition:

Analysis o the location potential with respect to the existing and

predicted net work o competitors

o Potential:

Defning o a (prospective) catchment area, calculation o site

attractiveness And the level o variation in the immediate sur

roundings, analysis o market penetration, rent levels, cost-use

evaluation, comparison o projected turnover with overhead...

o Impact analysis and/or calculation o redistributed turnover

o Location pros and cons

Location analysis checklist

On the web

You can consult this checklist as well as urther inormation on location planning and GK

GeoMarketings range o consultancy services at

> www.gk-geomarketing.com/consulting

Imprint

GK GeoMarketing GmbH

Werner-von-Siemens-Str. 9

Gebude 6508

76646 Bruchsal; Germany

Tel.: +49 (0)7251 9295100Fax: +49 (0)7251 9295290

www.gk-geomarketing.com

[email protected]

Responsible or publication:

GK GeoMarketing GmbH

Management Board:

Wolram Scholz,

Dr. Eberhard Stegner

Chie Editor:

Cornelia Lichtner

(V.i.S.d.P. by German law)

Graphics & layout:

Nathalie Adlung

Translation:

Christopher Guider


13/13

"I use RegioGraph or market

analysis, advertising planning

and micromarketing."Iris Nedelmann, Head o Marketing

GfK GeoMarketing

RegioGraph 2009

Let RegioGraph help you with important decisions

Plan target group-speciic marketing campaigns

Beneit rom GK data on potential and a ull range o maps

Make better, more inormed decisions

For more inormation, visit www.gk-regiograph.com or call +49 (0) 72 51 92 95 200.

INNOVATION PRIZE

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