NATIONAL RETAIL NETWORK OPTIMISATION
A national apparel retailer was reviewing its store network to understand the minimum number of stores required to service its customer base.
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 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.
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.
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 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.
QUARTERLY REPORTING AND PLANNING
A district council had implemented a range of initiatives to improve the utilisation of its town centre. The council had anecdotal feedback that its changes were increasing the town centre’s popularity after years of mixed performance results, but they lacked hard evidence to back this up. Without facts, the council was having difficulty justifying its expenditure into tangible results for ratepayers.
Marketview implemented a comprehensive quarterly monitor that focused on different parts of the district and different store types and categories. Marketview could utilise data pre and post the councils’ changes, and assist the council to quantify the value of its investment. We could also benchmark our client’s performance against a peer group of similar sized councils around the country to further prove the effectiveness of its changes.
Our report enabled the council to understand which precincts were on the up, what store types locals were most interested in, and to what degree tourism spending featured.
With access to consistent, factual and relevant figures, the council is able to monitor, plan and benchmark its district as a whole, as well as the precincts within it.
Promoting, running and measuring local events are a key marketing tool for most local bodies. Measuring the economic impact of these events can be difficult, particularly as many aren’t ticketed events or centred in one location.
Marketview works with a number of local bodies to analyse and report on changes in spending values and cardholders seen in town for a number of key events.
Our reports focus on what happens to retail and hospitality spending over the period of the event, which store types benefit the most, and who drives spending around events.
Expanding on this, our reports measure the dollar value of visitors and any impact on local resident expenditure during events. By running the reports annually, the council is able to benchmark, quantify and monitor the impact of events over time on their local economy.
The council now knows how much money has been pumped through the local economy as a result of hosting these events – information that has proved critical in planning, marketing and budgeting for future events.
Like many councils around the country, our client was under pressure from retailers in its town centre to level the playing field against competitors in the local mall that offered free parking. These smaller, independent retailers felt they were disadvantaged by not having free customer parking nearby.
Removing parking meters would mean a loss of council revenue. This revenue was earmarked to service debt for new infrastructure, so it was a decision that needed to be taken carefully.
The council agreed to trial free parking in the CBD, monitored by Marketview.
The granular nature of our data inputs enabled us to replicate the town centre’s parking zones. This allowed us to focus on the relevant streets that were most affected by changes in parking fees.
As transactions are time stamped we were able to precisely measure the change in spending patterns before and after the change in fee, as well as throughout the day.
The report benchmarked CBD sales and analysed the effect that the change in parking policy had for retailers. The council used the information as a vital input in business meetings, to help determine whether free parking would continue, when in the year would work best, and for how long, and allowed an unbiased and accurate result to justify these decisions to stakeholders.
TOURISMREGIONAL TOURISM VALUATION
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.
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 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.