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Success story
Retail|Geomarketing|United Kingdom|English

Category management with geomarketing: Optimal product positioning

Bruchsal, 05.08.2016

We calculated the regional market potential for our client’s product line categories. This allowed the retailer to optimize these product lines at the chain store level, resulting in cost savings and a more effective response to local demand.

Situation

Our client wanted to align the sales area for various product groups with the market potential around these sites to improve chain store performance. This required identifying the product line categories with below-average performance per chain store. These insights were to serve as a basis for optimizing the sales area and product mix for each chain store.

Approach

Our client wanted insights on ten furniture-related product groups (kitchens, bathroom furniture, home textiles and garden furniture, among others). Based on aggregated, anonymized information from GfK’s consumer panels, we determined our client’s regional potential for these product lines. We also used postcode information from POS surveys to find out the market reach of each chain store.

We then calculated a benchmark that compared our client’s local turnover with the product line-specific potential and sales area share in that region. This revealed the product line categories with regional weaknesses and optimization potential.

Outcome

Our analysis illuminated the strengths and weaknesses of our client’s product line categories and the associated demand potential at the level of individual chain stores. This made it possible to align product lines with local demand.

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