Optimization of Retail Branch Network using Location Intelligence
Teta is a drugstore chain with 700+ stores in the Czech Republic. Teta was awarded the title of "Retailer of the Year" five times by GE Money as well a the retailer with the highet footfall by Incoma GfK. The company distributes drugstore and cosmetic products to 5500+ stores and has it's own production of products.
Unoptimized Branch Network
- What is the potential of a planned location?
- What will be the impact on the current network if we open a new store at a particular location?
- In which of the existing stores should we invest and which calls for termination?
- What is the pressure of internal and external competition in the given location (current and planned)?
- Are there any white spots left on the map?
- From where are our customers coming, and who are they?
- Are we efficiently distributing our flyers?
- Does the redesign of stores increase footfall, customer loyalty, and the value customers bring?
Location Context for Business Decisions
Drugstore chain TETA has a mature and highly adopted loyalty program with more than 2,000,000 members. Using transaction data from this program and combining it with the external demographic data, CleverMaps enabled TETA with the needed insight enriched with location context. The location analysis brought the following:
- Catchment areas for stores and the entire network
- Penetration and share of members of the loyalty program
- Market potential and market share of each store
- Overlaps of own stores within the network
- Market share of the network in various areas
- Market potential of proposed location(s)
- Increased return on investment on flyer distribution
Continuous Network and Direct Marketing Optimization
The retail network is like a living organism that reacts to even the smallest change in its surroundings. Thanks to CleverMaps, TETA's decisions are now driven by the most accurate data that is instantly updated and accessible online in an easy-to-understand map.
Key takeaways for Teta:
- Data-driven decisions for branch network
- Determination of real market potential and share
- Increased ROI of flyer distribution