Capacity planning -

Capacity planning

In all markets and geographic areas, there is a maximum number of establishments that can be installed. Beyond this, business results will suffer.

It makes it essential to know the degree of saturation of an area and its maximum capacity so that we do not make an effort that will not offer benefits in the future.

General Description of this use case

It is a challenge for retail managers to find the exact number of shops to locate in a given area. Not only this, but also that they are placed in the optimal locations to achieve the best sales results.

If more outlets are opened than necessary, a market will be saturated. As a consequence, the cannibalisation effect will appear. In other words, shops of the same brand will compete with each other and their sales will be negatively affected.

On the other hand, if we have fewer outlets than the ideal number, we are missing an important opportunity to make more profit in that particular market or area.

Therefore, we are not talking about a simple decision, as each market or area has its own peculiarities that make it very difficult to be accurate in this estimation.

Learn how this apply to your business

Tell us the particularities and needs your project needs to be able to implement a plan specially designed for you.

What solutions do you need?

In order to accurately estimate the number and location of establishments in a given geographic area, it is key to have certain geolocated data under control.

In this way, we will have reliable information on how the presence of other shops in your vicinity, whether they belong to the same brand or to your competitors, influences your business. Depending on the response obtained, we will have a basis on which to make a decision on whether or not to continue expanding. If the answer is yes, the geospatial information will also serve to determine the locations with the greatest potential.

Other types of geographical data also come into play here, such as those related to the socio-demographic characteristics of the population and those that define their consumption and living habits, as these will adapt better or worse to the offer of our business.

OMNICHANNEL RETAIL NETWORK OPTIMIZATION

The retail sector is clearly marked by the influence of different sales channels, such as physical and online stores. Therefore, it is essential to know the geospatial data that explain the dynamics of these channels, as well as the cause-effect relationships between them. With Locatium, you will be able to choose the best locations for new stores, predict results in new locations, mitigate the influence of competitors considering cannibalization, and optimize the right online-Vs-offline mix in each location.

Do you want to see how
many industries this use case applies to?

Capacity planning is a critical process for a number of industries. From Locatium would like to help you identify the main industries where we can lend a hand to prevent this from happening.

Retail

Geographic data is a high-value resource for analyzing the effects of the industry's own omnichannel and for customer segmentation. With them, the locations of the establishments and their particular characteristics can be set more accurately, avoiding cannibalization and the influence of competitors.

Telco

With such a wide offer, telecommunications companies are forced to offer excellent service to their customers to be truly competitive. To achieve this it is necessary to design an infrastructure capable of meeting the needs of the user, as well as doing it with the greatest efficiency. Geolocated information is key to your site selection and deployment.

fmcg

Geospatial technology greatly speeds up the supply of fast consumer goods, facilitating their access for all buyers through an adequate choice of the locations of the establishments, as well as the types of products that these really demand.

Restaurants

Choosing the most valuable location for hospitality businesses involves analyzing useful geospatial data to attract customers who come to the physical establishment and for those who request home delivery (OoH marketing). It is also important to know the degree of saturation of each market, in order to know the ideal number of restaurants for each one of them.

Healthcare

Geographical data to know precisely and without risk the best situation for the performance of clinics of various medical specialties. These greatly increase the planning capacity of the various brands in the sector in specific markets.

Banking

The banking sector faces a challenge when it has to design a network of branches that satisfy the demand of its clients, as well as optimize its portfolio of financial products based on the characteristics of its target audience, both current and potential.

Automotive

The geolocated information allows you to decide in a documented way where it will be most beneficial to locate dealers and workshops. For this, areas of influence, prediction of demand, levels of cannibalization, and those establishments that are more and less profitable are taken into account, among other variables.

Want to know more about this use case?

If we have caught your interest or if you have any questions, we will be happy to help you without any obligation so that you are really clear about how Locatium can contribute to the success of your project with our datasets and advanced solutions.