Geotech Information Services

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Geotech Information Services
Data Driven Solutions by
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Overview

• Information is the new Currency of Success
• Enormous Competitive Advantage can be gained
  through effective use of information
• Despite this potential, most organisations do not
  use information effectively

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Geotech Information Services

• Data Mapping Bureau
• Network Development Planning
• Market Share Strategic Analysis
• Franchise Territory Planning
• Sales Demand Forecasting
• Customer Profiling Targeting
• Competitor Analysis
• Data Driven Micro Marketing Systems

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Data Mapping Bureau

• People do not only make buying decisions were
  they live.
• Geotech gathers geographic data for each of the
  following categories

Geotech Australian Lifestyle Database
At Home
At Work
At Play
In Transit
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User Friendly Data Presentation

• Data in its raw form is often meaningless to
  decision makers.
• Geotech has put enormous effort into presenting
  detailed information in an easy to interpret
  format.
• Our unique PDF based mapping system, Net Tracker,
  allows access to layered market maps and includes
  full functionality (such as zoom and print)
  without the cost and technicalities of committing
  to a full inhouse GIS mapping system

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PDF Based Data Mapping System
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Retail Gravity Simulator

• Two of the most important determinants of
  Consumer Patronage Probability are
• Travel Distance (Time)
• Attractiveness
• Using technology developed in the USA by
  Professor Huff, Geotech has developed its own
  Retail Gravity Simulator for the Australian
  Retail Environment.
• This Technology allows for an incredible array of
  analyses to be undertaken

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Retail Gravity Simulator

• Analyses include
• Probability of Store Patronage from any location
• Trade Area Definition
• Market Share Analysis by Brand
• Sales Cannibalisation
• Optimum New Store Locator
• Improved Sales Prediction Modelling

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Retail Gravity Simulator
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Retail Gravity Simulator
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Sales / Demand Prediction Modelling

• Corporations / Franchises with a network of
  stores or years of sales history have a unique
  opportunity
• To statistically analyse what makes the good ones
  good and the bad ones
  bad
• The learning of the key drivers of sales
  potential can then be used to make more effective
  and profitable decisions.

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Drivers of Store Sales
Local Market Demographics
Operations
Local Generators
in the till
Brand Strength
Store Specific Characteristics
Store History / Local Perception
Competition
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Methodology

• Gather Sales Data
• Group Like Stores
• Design Execute Site Specific Survey
• Gather External Market Competition Data
• Data Mine (correlation analysis)
• Build Models
• Testing
• Finalise Models and Rank Drivers

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Example - Drivers of Store Sales

• Generator Score (1-6)
• Prime Sign Visibility (1-5)
• of Lower Socio Economic Households
• of Southern Europeans
• Franchised Store (y/n)
• Competition within 4 km
• Clustered Competition (y/n)
• Operating Hours (Restaurant Drive Thru)
• Average Daily Traffic Past Site ( vehicles)
• Blue Collar Employees within 3km

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The Model (Example Only)

• Weekly Sales (s)
• 4264 x Generator Score (1-6)
• 1,053 Prime Sign Visibility (1-5)
• 235 of Lower Socio Economic Households
• - 576 of Non English speaking Residents
• 2,200 Franchised Store (y/n)
• - 1,500 Competition within 4 km (non clustered)
• 800 Clustered Competition (y/n)
• 87 Operating Hours (Restaurant Drive Thru)
• 0.33 Average Daily Traffic Past Site (
  vehicles)
• 243 Blue Collar Employees within 3km

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Modelling Accuracy
R2 81
40,000
Predicted Performance
30,000
20,000
20,000
30,000
40,000
Actual Performance
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Utility of Results

• In addition to being able to predict future store
  performance, Spin Off Benefits Include
• Clinical Review of Site Potential
• (Remove Bias or Gut Feel)
• Understand the relative contribution various
  factors make to sales performance (drivers)
• Highlight Under and Over Performing Stores
• Show Due Diligence in site selection methodology
  (Franchising Code of Conduct)

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Quadrant Analysis
Stars
40,000
Under Performers
Predicted Performance
30,000
20,000
Leave Alone
Dogs
20,000
30,000
40,000
Actual Performance
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Sales / Franchise Territory Planning

• Cutting territories based upon residential
  populations is a sure fire way to create
  inequitable territory opportunity for franchisees
• Geotech has developed a unique territory planning
  system that ensures equity of sales opportunity
  for franchisees
• Ask us how

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Sales / Franchise Territory Planning
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Micro Marketing Systems

• Geotech Can Design Implement Data Driven Micro
  Marketing Systems for our clients
• Run the most appropriate local promotions for
  each area
• More effective than a one size fits all approach
  to local marketing
• Geotech work with the client to link the local
  data profiles to the most appropriate local
  promotions

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Where to Next

• Contact Geotech and arrange a meeting where we
  can discuss your needs and layout strategies to
  help you fulfil them.

Geotech Information Services- Bruce Waddington
Director Phone [phone] Fax 61 3
9550 0816 Email brucew_at_geotechinfo.com.au