"We're very pleased with the territory optimization and already experienced positive results shortly after the implementation.“
Denon Germany is a manufacturer of high-end audio and entertainment systems. Denon's outside sales force manages its partners in the electronics sector. The company wanted a dedicated outside sales force team to handle its HEOS (multiroom audio system) product line. The goal was to create a structure that would best tap the available market potential.
We met with Denon to determine their goals and the data basis to be used for the sales territory optimization. Drawing on figures from our POS measurement panel, we calculated the retail turnover for consumer electronics for all two-digit postcodes in Germany as well as all federal states in Austria. We then determined Denon's regional market exploitation by comparing the current turnover data for HEOS with the regional potential. This data on potential then served as a basis for modeling a new, acquisition-oriented HEOS sales structure. We proposed and agreed on this structure with Denon in a second workshop.
Denon was able to quickly implement the new sales structure. Shortly thereafter, Denon observed an increase in the number of households using its products. In the future, the company wants to focus more attention on regions with low market exploitation (high potential accompanied by low current turnover).