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franchise.co.nz – PUTTING PEOPLE IN BUSINESS
cross New Zealand, changing business conditions mean that some
prime sites are becoming available as outgoing tenants fail to renew
leases. That’s clearly tempting for would-be franchisees looking for
opportunities, and for franchisors wanting to expand their network.
But how do you go about evaluating a site to make sure that it’s not
the location that’s at fault, or that it will really suit a particular brand?
Contacting Jeff Vassel at Geotech Information Services is a good way
to start.
Founded almost 20 years ago, Geotech is a data analytics and location
growth planning company that works with businesses on both sides of
the Tasman, especially franchises. Their client list includes McDonald’s,
Nando’s, Kitchen Studio, and Burger Fuel, and they have access to all
sorts of data to help analyse the true potential and suitability of sites.
What’s changed?
‘A combination of factors has
resulted in some apparently
prime sites coming onto the
market,’ says Jeff. ‘Economic
conditions, rising prices and
post-Covid stress all have a
part to play.
‘The rise of working from home
shifts (WFH) on Mondays and
Fridays has seen the decline of
almost every CBD in the world.
In addition, the busiest days
have shifted from Fridays to the
middle of the week. That means
every site needs to be looked at
afresh, before renewing leases
as well as taking up new ones.
‘At the same time, we’re seeing a lot of food and retail businesses
thriving and looking for new outlets, especially in the outer suburbs
where WFH means more people are around for more of the day. New
developments also need careful analysis; you don’t want franchisees
to take on premises in a new area before the population of your own
customer demographic is there to support them.
‘What we do at Geotech is bring together all the available data and
analyse it to enable clients to make a facts-based decision, not a guts-
based one. That way, new stores and new franchisees have the best
possible chance of success.’
Understanding your market
Jeff says that modern retail businesses generate a whole lot of data
about sales and customers, ‘But there’s so much and it’s so specific
that many companies don’t know how best to use it. We can combine
your data with the mass of detailed consumer and market information
available from government, research companies and corporations
to assist with network planning and give your franchise a
competitive advantage.’
What sort of additional information can Geotech access?
Mobile Device Tracking
Analysis of desensitised mobile device positioning data can show you
how people move around before and after they visit your stores, who
else they shop with, how far they travel from, and what their likely
motivations were for choosing your brand. It can also help you evaluate
the probable impact of infrastructure changes, such as roading or new
public transport options, eg. Auckland’s City Rail Link.
Household Expenditure Data
Information on how much money people spend and what they tend to
spend it on in different areas can give incredible insight into consumer
behaviour. This includes the demand in any specific area for different
products and services. Household Expenditure Data can be combined
with data from the other information sources to help franchises target
specific areas that spend proportionally higher and lower on a range of
items compared to the New Zealand average.
Putting it all together
By analysing the sales performance of stores against their site, precinct
and local market characteristics, it’s possible to identify the critical
factors driving sales, says Jeff. ‘These can then be
incorporated into a forecasting model to predict future
site sales performance, helping franchisors prioritise new
site opportunities and optimising the performance of an
existing network.
‘Developing a “data-driven” local store marketing system,
and combining it with local demographic and traffic
information, ensures the most effective local strategy/
marketing is being adopted by every store in a network.
Analysis of customer data can also provide valuable
insight into developing complementary online channels.’
Improving performance
A recent project for an Australian fuel retailer provides an
example, Jeff suggests. ‘The brief was to help the client
better understand whether the products and services they were offering
on a site-by-site basis aligned with the consumers in the vicinity of
each outlet.
‘Analysing the journeys and motives that took customers to both
their own and competitors’ sites allowed us to determine the product
categories likely to appeal most. And it showed locations that were not
capitalising on the types of offers likely to sell at their particular site.
‘This type of analysis can help the client better assess where capital
expenditure or improvements to store layout would deliver best results.
The project also helped align recent consumer qualitative survey data,
segmenting customers into personas and
better understanding how pricing can
motivate consumers to behave.’
It’s this combination of informed analysis
and data-based strategy that’s given
Geotech its enviable reputation for helping
franchisors and franchisees on both sides
of the Tasman make good decisions.
‘Find out more - contact me today,’
says Jeff.
Geotech’s site analysis software helps
identify top locations for franchisees
Research & Development
RIGHT TIME,
RIGHT PLACE
Geotech Information Services helps
franchises find the right sites – and
make the most of the sites they have
Jeff Vassel
Geotech Information
Services
www.geotechinfo.com.au
Contact
Jeff Vassel
P 0061 3 9544 0440
M 0061 4 2168 4444
jeffv@geotechinfo.com.au
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