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RETAIL Excellence

Retail Strategy RetailStrategy

NathalieRAMANANTSOAFRAT

2012

Agenda

Introduction Strategic approach to retail S Store l location decision making i d i i ki Conclusions


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INTRODUCTION

A common definition

The sale of commodities or goods in small quantities to ultimate consumers consumers Websters Di ti W b t Dictionary

ESSECMBALuxuryBrandManagement RetailExcellence NathalieRAMANANTSOAFRAT

Retail is the final step in the Consumer Product Value Chain


Consumer Product, Distribution & Retail Value Chain
Supplier Consumer Products: Primary Production Consumer Products: Consumer Packaged Goods (CPG) Distribution

INTRODUCTION

Manufacturer

Transporter

Wholesaler/Distributor Retailer
ESSECMBALuxuryBrandManagement RetailExcellence NathalieRAMANANTSOAFRAT

Retail

INTRODUCTION

Why is excelling at Retail level so important?

ESSECMBALuxuryBrandManagement RetailExcellence NathalieRAMANANTSOAFRAT

What key trends shape todays Retail business issues?

INTRODUCTION

Consumer Market Organization Technology

ESSECMBALuxuryBrandManagement RetailExcellence NathalieRAMANANTSOAFRAT

What are the Retailers key stay-awake stakes?

INTRODUCTION

ESSECMBALuxuryBrandManagement RetailExcellence NathalieRAMANANTSOAFRAT

Agenda

Introduction Strategic approach to retail S Store l location decision making i d i i ki Conclusions


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STRATEGICAPPROACHTORETAIL

Distribution is part of the Marketing-Mix

MARKETING MIX

Product

Pricing g

Promotion

Distribution Place

Channel Strategy

Channel Management

ESSECMBALuxuryBrandManagement RetailExcellence NathalieRAMANANTSOAFRAT

and a key component of most Business Model


KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION CUSTOMER SEGMENTS

STRATEGICAPPROACHTORETAIL

KEY RESOURCES

CHANNELS

COST STRUCTURE

REVENUE STREAMS

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The Nespresso Success Story: a case about finetuning Retail strategy & Business Model

STRATEGICAPPROACHTORETAIL

Searchingalongand windingroutetoriches. i di t t i h

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Retail Companies Follow the Same Basic Process Model


High Level Process Model

STRATEGICAPPROACHTORETAIL

STRATEGY

Plan

Buy

Move

Sell & Service

Infrastructure Finance, HR, IT, Legal

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STRATEGICAPPROACHTORETAIL

Elements of a typical Retail Strategy

Marketanalysis:Goods/servicescategory Competitiveenvironment&trends Organisationalmissions Ownership&managementalternatives Positioningandambitions g Economics Consumersprofiles

Situation analysis

Objectives

Targeting

Segmentation Relevantmarketingmix Value Chain ValueChain

Business model

Levers(controllable&uncontrollablevariables) Daily&shorttermoperations Responsestoenvironment

Control

Evaluation Adjustment

Feedback
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Channel strategy is strongly shaped by intensity of distribution


Intensivedistribution:
Demandsmalllotsizes(andfrequentpurchases) ( q p ) Demandhighspatialconvenience Demandlowdelivery/waitingtimes Frequently,lowconsumerinvolvement q y,

STRATEGICAPPROACHTORETAIL

Selectivedistribution:

Higherconsumerinvolvement Greaterwillingnesstosearch Demandforspatialconvenienceislower

Exclusivedistribution:

Interactionwithothermarketingmixelementsishigh Locationplaysakeyroleindefiningtheproduct Brandtiedtolocation

Sales will always increase in the short term by moving to intensive distribution.
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Target marketing techniques and their strategic implications


MassMarketing Mass Marketing
Location Offerings mix
(products & services)

STRATEGICAPPROACHTORETAIL

Differentiated Marketing M k i
Near a large population base p p Distinct offerings aimed at each segment g Different media & messages for f each segment h t Depending on segment Multiple specific strategies, directed at heterogeneous groups

Concentrated Marketing k i
Near a small or medium p p population base Selection geared to market segment g Direct mail, e-mail, subscription, phoning, etc. t High or low One specific strategy directed at a limited groups of customers f

Near a large popu a o bas population base Wide selection of medium quality items

Strategicimplications

Promotion efforts

Mass advertising

Pricing

Popular prices One general strategy for a large homogeneous group of consumers

Strategy

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STRATEGICAPPROACHTORETAIL

Overview of a Retailer Value Chain

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STRATEGICAPPROACHTORETAIL

Overview of a Retailer Value Chain


Define Define Strategy
Source& Source & Develop Products Manage Logistics& Warehouse g Manage Communication &Promotion Manage Manage Business Performance Manage Store Orders

Plan Merchandise

Build Collection

HandleStore H dl S Operations

1. Market&competitionanalysis 2. Strategy definition / Business Model Definition Strategydefinition/BusinessModelDefinition 3. ValuePropositionbuilding: Offerpositioning PricingandPromotionstrategy 4. Merchandisingstrategy 5. Productdevelopmentstrategy 5 Product development strategy 6. Sourcingandnegotiationpolicydefinition 7. Definitionofqualitymanagementstandards 7 Definition of quality management standards
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STRATEGICAPPROACHTORETAIL

Overview of a Retailer Value Chain


Plan Plan Merchandise
Source& Source & Develop Products Manage Logistics& Warehouse g Manage Communication &Promotion Manage Manage Business Performance ManageStore Manage Store Orders

Define Strategy

Build Collection

HandleStore H dl S Operations

1. DevelopMerchandisingplan 2. Developcentralassortmentplan 3. Developstoreassortmentplan

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STRATEGICAPPROACHTORETAIL

Overview of a Retailer Value Chain


Build Collection
Source& Source & Develop Products Manage Manage Logistics& Warehouse g Manage Communication &Promotion Manage Manage Business Performance ManageStore Manage Store Orders

Define Strategy

Plan Merchandise

HandleStore H dl S Operations

1. Preparethecollection 2. Setupthecollection 3. Definevisualmerchandisingguidelines

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STRATEGICAPPROACHTORETAIL

Overview of a Retailer Value Chain


Source& Develop Products
Manage Logistics& Warehouse Manage Communication &Promotion Manage Manage Business Performance ManageStore g Orders

Define fi Strategy

Plan Merchandise

Build ld Collection

HandleStore H dl St Operations

1. Newvendorsprospecting 2. Evaluationandpreselectionofvendors 3. Productspecifications 4. Productdevelopment 5. Analysisofresponsesandselection 6. Negotiation 7. Productsetupfinalization 8. Producttesting 9. Productlisting


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STRATEGICAPPROACHTORETAIL

Overview of a Retailer Value Chain


Source& Source & Develop Products

Define Strategy

Plan Merchandise

Build Collection

Manage Logistics& Warehouse

Manage Communication &Promotion

HandleStore H dl St Operations

Manage Manage Business Performance

ManageStore Manage Store Orders

1. Vendorsordermanagement 2. Outsourcingmanagement 3. Importmanagement 4. Reception 5. Allocation 6. Physicalpreparationofmerchandising 7. Shipping/Invoicing/Transportation 8. Warehousemanagement(Central/Regional) 9. Returntovendormanagement


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STRATEGICAPPROACHTORETAIL

Overview of a Retailer Value Chain


Source& Source & Develop Products Manage Manage Logistics& Warehouse

Define Strategy

Plan Merchandise

Build Collection

Manage Communication &Promotion

Handle Handle Store Operations

Manage Manage Business Performance

Manage Store Orders

1. DefineCommunicationpolicy 2. DefinePromotionplan 3. Finalizepromotionplan 4. ManagePromotionandCommunication

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STRATEGICAPPROACHTORETAIL

Overview of a Retailer Value Chain


Source& Source & Develop Products Manage Manage Logistics& Warehouse Manage Communication &Promotion

Define Strategy

Plan Merchandise

Build Collection

HandleStore Handle Store Operations

Manage Manage Business Performance

Manage Store Orders

1. Receivingmerchandiseinstore 2. Inventorymanagement 3. SalesForcemanagementandtraining 4. CustomerServicemanagement 5. Checkoutmanagement 6. Shelfmanagement

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STRATEGICAPPROACHTORETAIL

Overview of a Retailer Value Chain


Source& Source & Develop Products Manage Manage Logistics& Warehouse Manage

Define Strategy

Plan Merchandise

Build Collection

Handle Handle Communication Store Operations &Promotion

Manage Business Performance

Manage Store Orders

1. Analysisofdataactivity 2. Markdownandpricemanagement 3. Intrastorestransfers 4. Collectionendmanagement(residualstocks)

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STRATEGICAPPROACHTORETAIL

Overview of a Retailer Value Chain


Source& Source & Develop Products Manage Manage Logistics& Warehouse Manage Manage Manage Business Performance

Define Strategy

Plan Merchandise

Build Collection

Handle Handle Communication Store Operations &Promotion

Manage StoreOrders

1. Forecasting 2. Planning/OTB 3. Budgetmanagement 4. Ordermanagement 5. AutomaticReplenishmentforpermanentitems 6. Replenishmentforseasonalproduct

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Gucci's Case study: distribution is a massive stake


Analysis of Gucci Costs Structure $2 666
millions

STRATEGICAPPROACHTORETAIL

COGS 31,2%

R E V E N U E

General & Admin. 12,2% 12 2% Store 20,3% Communication 6,3% Selling 1,7%

Warehouse 1,3%

Gross Margin 68,8%

Operating Margin 27%


Source : Annual Report 2000

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STRATEGICAPPROACHTORETAIL

Gucci's Case study : in a higher competitive environment Luxury Sectors face two major retail issues

Issue 1

Improve Products availability i stores il bilit in t

While reducing costs of inventory i t

Issue 2

Increase diffusion of products to increase revenue

While maintaining store quality, quality brand image image, and client service

The optimization of the distribution is a critical success factor for Gucci Group.

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Gucci Group distribution pattern is challenged by the number of products managed p g


G cci Gro p manages abo t 200 000 references (M d l / F b i / GucciGroupmanagesabout200000references(Model/Fabric/

STRATEGICAPPROACHTORETAIL

Color)peryear:
Gucci:160000references/year /y YSL:30000references/year

Gucci Group produces more than 6 millions pieces each year: GucciGroupproducesmorethan6millionspieceseachyear:
Gucci:6000000pieceseachyear YSL:500000pieceseachyear

Guccialonecreates6collectionsperyear:
4womencollectionsperyear 2mencollectionsperyear

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Case study: Gucci Group has become a complex g group in which different store formats coexist p

STRATEGICAPPROACHTORETAIL

Control of image and concept


Directly operated stores p LEV VEL OF CONTROL 100%

Retail distribution

Clients fidelity Higher profitability

Shop in Shop

Higher growth and better geographical coverage

Corners < 50% Multi Brands Stores

Wholesale distribution

Recruitment of New Clients Less sensitive to economic fluctuations

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STRATEGICAPPROACHTORETAIL

Case study: Guccis distribution strategy consists of expanding its retail while consolidating its wholesale
Retail
317 Directly Operated Stores Gucci Brand (2012) Openings : 5-10 per annum Segment stores :
Jewelry stores Accessories stores

Wholesale
Department and specialty Stores (301 doors) d )
Europe : increase number of doors US : continue strong performance in best retailers

Franchises (30 stores)


Li it d b t strong i special markets i l k t Limited, but t in

Growth relay : Latin America, Asia


Royalties 4% Wholesale 29%

Duty-Free (54 stores)


Continue strong performances in select doors

Revenue R by Channel

Retail 67% Retail67%


Source : Annual Report; Gucci Corporate Website

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Why have channel strategy issues become so important?


Executives today recognize the pressing need to:

STRATEGICAPPROACHTORETAIL

Implementnewwaystogotomarket Implement new ways to go to market Aggressivelyexpandchannelmixtodriverevenuegrowth. Makehighlyinformed,strategicdecisionsaboutwhichchannelsto p pursue.

Decidewhichproducts/marketsshouldbeservedthroughwhich channels.

Preemptcompetitorsfromlockingupchannels.
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ESSECMBALuxuryBrandManagement RetailExcellence NathalieRAMANANTSOAFRAT

STRATEGICAPPROACHTORETAIL

Determining the right channels is becoming more critical as companies develop a multi-channel approach to sales
Channel Brick and Mortar (DOS Corners, etc) (DOS, Corners etc ) Catalogue Website Telephone p Direct Mail, eMail In Home Print Ad Inserts/Circulars TV, Radio and Print Ads Sell Sell, Drive Traffic to Store Drive Traffic to Store, Sell Service, Drive Traffic to Store , Communicate Offers/Rewards
(Mass, Segment, Personalized)

Main Goal

Service, Sell S S Communicate Mass Offers Drive Brand Awareness, sell

Increased consumer needs, market fragmentation and harsher needs competition calls for a diversification of access to consumers
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STRATEGICAPPROACHTORETAIL

Two issues/questions shape channels strategy: Structure and Management


Howtostructure Howtostructure alternativechannels tocapture to capture themarketingopportunity
Make vs Buy Types of channel members used Activities and functions performed Roles and responsibilities Customer segment served Customer service and maintenance

Howtomanage Howtomanage alternativechannels toensurebestresults

Channel member selection Overall compensation Measurement/reward systems Relative channel influence Referrals and sales programs Conflict management and resolution: when to partner or compete Operational implications

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Channel-mix definition requires qualifying each channel


1 2 3 4

STRATEGICAPPROACHTORETAIL

Understand each channel dynamics

Build a balanced distribution mix distribution-mix

Set up a network diversification strategy

Adapt organisation and management schemes

Value add Mapping vs. competing channel Brand awareness Level of specialisation p
required in that channel

Channel functions Mastery of port-folio balance

Generic strategies

Performance management tools O Organisational i ti l choices

Consumer behaviour in that


channel

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STRATEGICAPPROACHTORETAIL

Focus on channel functions


Distribution concept function Discovery y

Creativity

Complementarities

Renewal Market share at retailer


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zero
ESSECMBALuxuryBrandManagement RetailExcellence NathalieRAMANANTSOAFRAT

Low

Medium

Strong

Successful channel integration efforts can deliver tangible improvements to retailers operations g p p

STRATEGICAPPROACHTORETAIL

Improved demand planning Established, secure e-commerce channel for e-content delivery Increased customer satisfaction and, thus, referrals Increased order volume and conversion rates Improved returns processing

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Agenda

Introduction Strategic approach to retail S Store l location decision making i d i i ki Conclusions


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GEOMARKETING

Why is spotting the right location so important?

Locationdecisionsarecomplex L ti d i i l
Multiplevariables

Costscanbequitehigh Thereislittleflexibilityoncealocationischosen Itisamajorfactorleadingtoaretailerssuccessorfailure


Traditionally, luxury retail gave little room to geogeomarketing

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GEOMARKETING

Objectives of geo-marketing analyses

Allowstoquantifypotentialtargetmarketfordistributionnetwork Allo s to q antif potential target market for distrib tion net ork andassessidealnumberofstores Helpsdecisionmakingconcerning:
Location of area of influence Locationofareaofinfluence Hierarchyofcommercialareas

Framesperformanceforecastsdependingon:
Potential of influence trade area Potentialofinfluencetradearea Qualityofstorelocation (Storemanagementefficiency)

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Geo-marketing allows to display and analyse data on maps


Identify density of population Determine isochronal curves around a POS Check location of addresses (clients, shops,
competitors, )

GEOMARKETING

GIS (Geographical Information Systems) allow GeoGeo G -marketing analyses k ti l


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GEOMARKETING

Some GIS softwares :


Mapinfo /Pitney B M i f / Pit Bowessoftware(www.mapinfo.com) ft ( i f ) Claritas (www.claritas.com) Caliper Corporation(www.caliper.com) GDTGeographic DataTechnology (www.geographic.com) MPSISystems(www.mpsisys.com) SRC(www.demographicsow.com) ( g p )

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GEOMARKETING

Geomarketing consists in linking a geographical table (or map) to a relevant data table using a joint field

MapInfo Geographical Table (or map)


CODE 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 NOM AIN AISNE ALLIER ALPES-DE-HAUTE-PROVENCE HAUTES-ALPES ALPES-MARITIMES ARDECHE ARDENNES ARIEGE AUBE AUDE AVEYRON BOUCHES-DU-RHONE CALVADOS CANTAL CHARENTE CHARENTE-MARITIME CHER CORREZE

Your business data


CODE POPULATION 01 471 170 02 537 291 37 03 357 793 04 130 972 05 113 334 06 972 482 07 277 724 08 296 435 09 136 598 10 289 297 11 298 898 12 270 321 13 1 759 512 14 618 729 15 158 791 16 342 123 17 527 232 18 321 556 19 237 920

Joint Field = Department Code Data can then be plotted


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Store location decision making implies a 3steps process


1 2 3

GEOMARKETING

Definition of the target

Geographical Analysis of target population

Conception of target network

Age. SPC. Consumption


trends.

Static population analysis


(residential, enterprises).

Determine potential
traffic.

Dynamic analysis
(pedestrians, mobile ( passers-by ).

Target network multiple


simulations.

Diverse
characteristics ...

Locations competition
analysis.

Space allocation and


characterisation. h i i

Choice of best location.

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The whole approach for geographical analysis relies on building 3 complementary data models g p y
Model 1 Assess potential of catchment area

GEOMARKETING

Model 3 Estimate POS ramp up Accessible sales

Model 2 Identify accessible market share and turnover

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What it takes to reconstruct the potential for a area of influence?

GEOMARKETING

Model 1 OBJECTIVES

Identify attractive y trading areas in terms of apparel purchase

Calculate C l l t potential t ti l for each area

Prioritise each area

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Petit Bateau Case Study: How to Identify Attractive Areas?

GEOMARKETING

Analysis conducted on 36 000 French communes Focus on the most attractive communes in terms of apparel trade (source : INSEE - ABCD ) 5 000 zones have been identified around - The most attractive commune Bordeaux Montpellier - Its zone of influence For each zone, a potential market () has been estimated

Strasbourg Rennes

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GEOMARKETING

Chief factors to consider in evaluating Retail trading areas


Availabilityofstorelocations
Numberandtypeoflocations Accesstotransportations Owningvs.leasingopportunities Costs Zoningrestrictions

Populationsizeandcharacteristics P l i i d h i i
Totalsizeanddensity Totaldisposableincome/Percapitadisposableincome Agedistribution Age distribution Occupationdistribution Averageeducationallevel Percentageofresidentowninghomes Trends Numberandsizeofexistingcompetitors SWOTanalysis SWOT analysis Levelofsaturation Shortrunandlongrunoutlook

Availabilityoflabour
Management M Managementtrainees tt i

Competitivesituation

Promotionfacilities
Costs Availability and frequency of media Availabilityandfrequencyofmedia

Closenesstosourceofsupply
Deliverycosts Timeliness

Economicbase
Dominantindustry Extentofdiversification Growthprojections Seasonalfluctuations Seasonal fluctuations

Regulations
Operations Zoning T Taxes licensing

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Eventually, the GIS helps visualise the mapping of sales potential


CLASSEMENT POTENTIEL DES ZONES ET CHIFFRES D'AFFAIRES RALISS
Cergy Sarcelles Saint-Germainen-Laye Sartrouville Aulnay-sous-Bois Colombes Poissy Courbevoie Chelles Neuilly-sur-Seine Rueil-Malmaison Fontenay-sous-Bois BoulogneNoisy-le-Grand Le Chesnay Billancourt Maisons-Alfort Crteil Versailles Antony Les Ulis
10 km

GEOMARKETING

Dunkerque Calais Boulogne-sur-Mer Saint-Omer Lille Bethune Lens Arras Dieppe Cherbourg Le Havre Caen Rouen Evreux Lisieux Saint-Malo Brest Saint-Brieuc Quimper Lorient Vannes Orlans Angers Blois Saint-Nazaire Nantes Cholet La Rochesur-Yon Fontenay-le-Comte Niort La Rochelle Vichy y Saintes Angoulme Prigueux Brive-la-Gaillarde Bordeaux Mrignac Pessac Agen Rodez Als Albi Dax Bayonne Pau Tarbes Saint-Gaudens Carcassonne Narbonne Castres Nmes Libourne Bergerac Aurillac Limoges Clermont-Ferrand Roanne Chatellerault Poitiers Montluon Moulins Saumur Tours Vierzon Bourges Nevers Chateauroux Dinan Rennes Laval Dreux Alenon Chartres Meaux Evry Melun Troyes MontereauFaut-Yonne Sens Auxerre Beauvais Compigne B i Creil Soissons Reims Epernay Abbeville Amiens Roubaix Villeneuve-d'Ascq DouaiValenciennes Maubeuge Cambrai Saint-Quentin

Thionville Verdun Metz

Sarreguemines Haguenau Nancy Sarrebourg

Chlons-sur-Marne Saint-Dizier Strasbourg

Chaumont

Epinal

Colmar

Vesoul Dijon

Belfort

Montbliard Besanon

Dole Lons-le-Saunier Chalon-sur-Sane Thonon-les-Bains Macon Bourg-en-Bresse Annemasse Villefranche-sur-Sane Annecy


PETIT BATEAU - BOSSARD Consultants - AEBK - juillet 1997

Villeurbanne Vnissieux Chambry Saint-Etienne Bourgoin-Jallieu Vienne Romans-sur-Isre Valence Gap

Le Puy-en-Velay

Montlimar

Mont-de-Marsan

Avignon Cavaillon Grasse Arles Aix-en-Provence Cannes Toulon Hyres

Nice Antibes

Bziers

Montpellier

La Seyne-sur-Mer Perpignan Potentiel et millions de d'affaires ralis chiffre francs en


101,3

Bastia

50,6 10,1

Classement potentiel des zones


de 1 41 de 42 79

Ajaccio

Potentiel estim Succursale

de 80 125 de 126 172

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Franchise

100 km

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GEOMARKETING

The explanatory data for that statistical model can be broken down in 4 categories 1
COMMERCE
VARIABLE
1. 1 Department stores 2. Multi-brands apparel stores 3. Retail shoes stores

Case study Retail ready-to-wear:


2
COEFF.
8, 8 900 4, 833 - 9 ,602 4. 4 Total families (x10)

FAMILIES
COEFF.
0,020 0 020 - 0,072 - 0,232 - 0,615 0,191 - 0,018 - 0,136

VARIABLE
5. Family headed by a retired person 6. Couples 7. Family with working man, non working woman + a child 8. Family with working man, non working woman + 2 children 9. Family with working man, non working woman + > 3 children 10.Number of children aged 7 to 16
Source : INSEE ABCD Familles

Source : INSEE ABCD Commerces 1996

Tax data and Housing characteristics


VARIABLE COEFF.
- 0,405 - 0,008 0,392 0,020

POPULATION (male & female)


VARIABLE COEFF.
- 0 142 0,142 0,725 0,035 - 0,737 0,837 - 0,463 - 0,119 0,404

11. Number of fiscal household in 1996 (x10) 12. Overall net income in 1996 (10000) 13. Number of main residence (x10) 14. Number of secondary residence

15. 15 Overall population (x10) 16. Female population (x10) 17. Active population (x10) 18. Female population aged 0 to 4 19. Female population aged 5 to 10 20. Female population aged 11 to 15 21. Female population aged 16 to 18 p p g 22. Male population aged 11 to 15
Source : INSEE ABCD Chiffres cls ABCD pyramide des ges

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Model 2: assess the sales potential for a given shop

GEOMARKETING

Model 2 OBJECTIVES

Identify the local accessible l l ibl market share

Infer accessible sales in each of the 5000 attraction zones

Build a model allowing to manage store performances against area potential

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Petit Bateau Case Study: The market share variable


1. Selection of a sample of target point-of-sales i f l

GEOMARKETING

Selection of 23 points-of-sales points of sales

Identification and quantification of evolutions in terms of:


2. Definition of sales histories for each shop
Management quality / Local competition Merchandising concept / Shop lay out Quality of location / Outside signs Advertising Etc. ...

3. Construction of a statistical model

Identification of explanatory variables for market share and associated weighting factors.
Hypotheses generation fro assessment of target market share

4. Identification of a target market share


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10 12 14

0 Aix en Provence Aix en Provence Aix en Provence Aix en Provence Aix en Provence Aix en Provence Aix en Provence Bourges Bourges Bourges Bourges Bourges Bourges Brest Brest Brest Brest Brest Compigne Compigne Compigne Compigne Compigne Compigne Dijon Dijon Dijon Dijon Dijon Dijon La Rochelle La Rochelle La Rochelle La Rochelle Le Havre Le Havre Le Havre Le Havre Montluon Montluon Montluon Montluon Montluon Neuilly Neuilly Neuilly Neuilly Neuilly Neuilly Neuilly Orlans Orlans St Etienne St Etienne St Etienne St Etienne St Etienne St Etienne St Nazaire St Nazaire St Nazaire St Nazaire 8 10 12 14 0 2 4 6 Villes TOWNS Part de march estime Estimated

GEOMARKETING

ESSECMBALuxuryBrandManagement RetailExcellence NathalieRAMANANTSOAFRAT


Part de march accessible. Comparaison PDM Accessible market share"relle" / PDM estime vs. Actual : Estimated vs

Data analysis often shows discrepancies estimated and actual market shares

Actual Part de march "relle"

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GEOMARKETING

Model 3: sales ramp up in a store

Model 3 OBJECTIVES
Accessible sales

Define how long a shop can take to reach its accessible potential

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GEOMARKETING

Model 3: sales ramp up the approach

Sales 100% of Accessible potential

1.

Histories tables over a decade have been set up h b t Sales evolution have been a a ysed analysed :
Year base, Term base, Month base.

2.

3.

The shape of the various curves has helped determine the typical trajectory for a shop

time

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GEOMARKETING

Between 70 to 90% of the sales potential was reach in the 1st year in most of the Petit Bateau POS
Shops ramp up Monte en rgime des boutiques
100 90 80 70 60 50 40 30 20 10 0 T1 / N0 T2 / N0 T3 / N0 T4 / N0 T1 / N1 T2 / N1 T3 / N1 T4 / N1 T1 / N2 T3 / N2 T4 / N2 T1 / N3 T2 / N3 T3 / N3 T1 / N4 T3 / N4 T4 / N4 T1 / N5 T2 / N5 T3 / N5 T2 / N2 T4 / N3 T2 / N4 T4 / N5

Terms since shop opening Trimestres depuis l'ouverture


Dijon St Nazaire Compigne Le Havre St Etienne Marseille Orlans La Rochelle Bourges Brest Montluon

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84 locations where the brand was not yet implanted showed interesting potential
CLASSEMENT DES 100 PREMIERES ZONES O PETIT BATEAU N'EST PAS IMPLANT ET POTENTIEL ESTIM
Courbevoie Le Chesnay BoulogneBillancourt Saint-Omer Boulogne-sur-Mer Bethune Lens Arras Dieppe Tourcoing Villeneuve-d'Ascq Douai Cambrai Dieppe Maubeuge Arras Les Ulis
15 km

GEOMARKETING

Cergy Sarcelles Colombes Aulnay-sous-Bois Fontenaysous-Bois

CHIFFRE D'AFFAIRES ACCESSIBLE DES 84 PREMIERES ZONES O PETIT BATEAU N'EST PAS IMPLANT

Cergy Aulnay-sous-Bois Courbevoie Fontenaysous-Bois Le Chesnay Saint-Omer Tourcoing Villeneuve-d'Ascq Bethune Lens Douai Cambrai Maubeuge Les Ulis
15 km

Chelles Noisy-leGrand

Chelles Noisy-leGrand

Crteil

BoulogneBillancourt

Crteil

Lisieux Saint-Malo Saint-Brieuc Dinan Alenon

Reims Evreux Epernay Evry Dreux MontereauFaut-Yonne Melun Chaumont Sens Saint-Dizier Verdun

Thionville Lisieux Haguenau Saint-Brieuc Dinan Epinal Quimper Saint-Malo Alenon Dreux Evry MontereauFaut-Yonne Melun Sens Saint-Dizier Evreux

Verdun

Thionville

Epinal

Quimper Vannes Blois Saumur Cholet La Roche-sur-Yon Chateauroux Poitiers Moulins Niort Tours Vierzon

Auxerre

Vesoul

Vannes Tours Saumur Cholet Blois Vierzon Nevers Chateauroux Poitiers Moulins
PETIT BATEAU - BOSSARD Consultants - AEBK - juillet 1997

Auxerre

Nevers

Lons-leSaunier Thonon-les-Bains

La Roche-sur-Yon

Lons-leSaunier

Vichy Saintes Angoulme Limoges Villefranche-sur-Sane

Annemasse Villeurbanne Bourgoin-Jallieu Vienne Le Puy-en-Velay

Vichy Saintes Angoulme Villefranche-sur-Sane Limoges Bourgoin-Jallieu Vienne Prigueux Brive-laGaillarde Aurillac Le Puy-en-Velay

Annemasse

Prigueux Mrignac Libourne Pessac Agen g Bergerac

Brive-laGaillarde Aurillac

Mrignac Pessac

Libourne

Gap Rodez

Gap Rodez Agen Als

Mont-de-Marsan Albi Dax Bayonne Pau Tarbes SaintGaudens Narbonne

Als Avignon Cavaillon Albi Grasse Cannes Montpellier Toulon Hyres Saint-Gaudens La Seyne-sur-Mer Perpignan Perpignan Narbonne La Seyne-sur-Mer Nice Antibes Dax Bayonne Pau Toulon Montpellier Avignon Grasse Nice Antibes Cannes

Bastia

Bastia

Potentiel estim
en millions de francs 101,3 50,5 23,7

Classement potentiel des zones


de 1 41 de 42 79 de 80 126

Chiffre d'affaires accessible


en millions de francs plus de 3,5 de 3 3,5

Localisation
Succursales Franchises

100 km

de 2,5 3 de 2 2,5

100 km

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Who in upmarket environments has recently implemented a geomarketing approach?

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Agenda

Introduction Strategic approach to retail S Store l location decision making i d i i ki Conclusions


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