In a white paper, GfK GeoMarketing retail expert Oliver Giehsel shows how a geomarketing approach to branch-network planning allows companies to optimize their operations while saving valuable resources.
Geomarketing analyses yield insight into the factors that determine a company's success, the extent to which regional potential is being exploited and the locations that offer favorable conditions.
In a white paper that uses the example of a brand-name manufacturer and retailer, GfK retail expert Oliver Giehsel demonstrates how a geomarketing approach to branch-network optimization can result in significant savings.
"Given the annual contribution margin of an average location, it became clear that focusing exclusively on locations with high potential would substantially increase the return-on-investment and average turnover for all branch locations," writes Giehsel, highlighting one of the insights afforded by a geomarketing approach to branch-network optimization.
"The savings amount to millions of euros in terms of rent, our client saves 3.2 million over 10 years as well as 1.2 million per year in personnel costs."
The long-term effects of the exploitation of previously untapped potential and strategic market positioning are especially valuable, as only companies that plan their branch networks with a focus on sustainability can succeed in a competitive market.
"A geomarketing approach makes it possible to identify locations with high potential and determine success factors, giving companies a reliable basis for making sustainable expansion-planning decisions that can save millions," explains Giehsel, summarizing the thrust of the white paper.
Source: Gfk Geomarketing