NATIONAL RETAIL NETWORK OPTIMISATION
The problem
A national apparel retailer was reviewing its store network to understand the minimum number of stores required to service its customer base.
The solution
Marketview analysed the current network based on the population coverage of the existing stores, competitor positioning and key retail centres across the country.
Each store in the network was reviewed against a key criteria set, with each store’s clients modelled to predict the likelihood of their spending going to another store in the chain, or to a competitor. Market factors were also considered, alongside other factors such as store size, lease commitments and staffing levels.
Marketview also analysed markets where the client had no stores, and prepared a ranked list of potential new sites, based on market valuation and opportunities identified.
The outcome
The end result was a ranked list of the network’s stores based on sales performance and profitability within their markets.
Completing this project enabled the client to confidently make informed decisions on which stores needed to close to minimise losses, and which areas to prioritise for new stores to increase future sales and profitability.
The model enabled us to determine the critical value of each location, from which the new network was designed.
Reducing the number of stores lead to a number of efficiency gains in marketing and store costs. Since the optimisation, the business’s sales have also grown at a faster rate than the market in general.
Following the project’s success, the client maintains regular performance reporting to monitor each store’s performance.
CUSTOMER SEGMENTATION
The problem
A large multi-national hospitality business had been using our services to track its national sales performance and monitor general trends in their category.
The monitoring exposed to the client that while their sales were tracking to forecast, their category was growing at a faster rate. This presented both a threat – what’s wrong with our offer – and an opportunity.
The solution
Marketview worked with the client and its advertising agency to develop a bespoke customer segmentation model utilising both their brand spending and wider lifestyle attributes to identify, quantify and track the client’s most important customers, and better target these high value consumers.
The outcome
The result was a customer segmentation and profiling tool that is used daily by our client to:
- understand who its customers are, and how this varies throughout the country, as well as during the course of the day;
- determine which customers purchase which products;
- track who responded to marketing campaigns, ensuring the marketing budget remained well spent
- identify and value opportunities for new products and new locations;
- allow individual store managers to market specifically to their local customers, based on valuated opportunities identified by Marketview.
As a result of this work, our client has made up lost opportunity and is once again a market leader.
TOURISM
REGIONAL TOURISM VALUATIONThe problem
Tourism is growing rapidly in New Zealand, from both international and domestic visitors.
But for Regional Tourism Organisations (RTOs) there is minimal information available that reports on the value of these visitors at a local level.
An RTO approached Marketview to obtain district-specific information that would help them evaluate and value local tourism, and its contribution to its local businesses.
The solution
An in-depth pilot report was produced for the RTO, which analysed tourism in the region. Our analysis measured where visitors to the region came from, how often they came, how long they stayed, how much they spent and on what, as well as how they travelled around the region.
The outcome
The study has been a valuable source of information for the RTO’s strategic planning. By understanding the tourism trends in its region, the RTO has invested its funding wisely for advertising, planning, and asset management and investment.