Market Potential
Expansion Planning
Most retailers have a limited amount of capital to invest across their markets. Real Estate executives are tasked with determining a growth strategy that works within these budget constraints and provides the greatest returns from the capital investment. These executives face questions such as:
Are we building enough stores in our existing markets to maintain market share?
Does it make sense to build out Phoenix, add to Tucson, or enter Albuquerque?
How can I plan my real estate budget if I don't know how many stores I need to build?
How do we ensure that the markets we enter support our distribution strategy?
Whether your goal is to position your company as a leading supermarket chain in the Southwest or the low-price shoe store of choice across the U.S., we can help you with market prioritization and develop a corporate strategy that leads to a strong ROI.
Using your business goals, key market metrics, data on your consumers and competition, and a proprietary model built specifically to simulate the expansion of retail concepts across a market, region, or the entire United States, we can help you understand:
The number of locations you can build in each market, or market capacity
Where you should expand next to have the best chance for high brand acceptance
Where competition is weak or faltering and a market entry is less risky
Which markets provide the best opportunity to meet your sales and market share goals
The optimal order of expansion to meet your operational and distribution requirements
ROIC analytics' Market Potential process is tailored to your business and provided in a format that is immediately actionable while still flexible enough to allow you to ask what if and immediately see how changes to your strategy affect the overall plan.
Acquisition Analysis
Building new stores is a time intensive way to grow a company. New sites are becoming harder to find and it can take years to get a store from concept plan to grand opening. In some markets, achieving a competitive market position organically is impossible. One way to overcome this development hurdle to is to explore the acquisition of existing facilities, divisions of other chains or even a merger with another company.
The analysis of mergers and acquisitions is an important step in understanding whether an acquisition is financially and strategically viable for your company now and for the long term. ROIC analytics provides M&A analysis to highlight the potential sales you might realize from an acquisition of a single store or an entire chain and determine any impacts on your existing store network. Our evaluation will help you understand how competitors and customers may react and how those reactions could impact sales at both your existing stores and the acquisition target.
Mergers & Acquisitions analysis is a valuable service on its own or as part of a larger Market Potential project. Market Potential with an M&A focus will provide insight into your long term growth potential and will help you determine where you will achieve the greatest return on your capital investment. Know which regions and which markets can support additional viable locations, understand where your money would be best spent next and discover the overall number of locations your combined chain might realize at full build out.
Territory Optimization
The difference between well-designed territories and poorly-delineated territories may appear inconsequential, but the impact on the bottom line can be considerable. A franchisor that develops 10 territories when the region could support 15 and the sales executive that burdens one sales manager with too many accounts to serve while another sales manager is under-utilized are two examples of dollars left on the table due to poor territory alignment.
Manually-delineated territories are clean and compact but require a large investment in labor and it is virtually impossible for a human being to design anything that approximates optimal territories. Computer programs built for automated "partitioning" or "districting" can eliminate much of the labor and produce territories that are compact and balanced, but these products fall short of producing highly productive and profitable territories.
ROIC analytics' proprietary "ATOM", or Automated Territory Optimization Model, was developed to ensure that territories meet business goals and increase profitability. Whether your goal is to maximize the number of profitable franchise territories you can develop or minimize the number of sales people you need to serve your customer base, ATOM ensures that the process of territory design is fast, accurate, unbiased and equitable, and flexible. Whether your goal is to realign a market or define an expansion plan for the entire U.S., you define the goals, you set the rules, ATOM does the heavy lifting. Need to realign territories often? Our process allows you to either work with us to re-optimize on your schedule, or you can rework an existing plan on your own in your favorite mapping program.
Think that strategic analysis is only for Fortune 100 companies with million dollar research budgets? On the contrary. Market strategy does not need to break the bank to be effective. ROIC analytics has helped small companies implement simple but effective solutions today that can grow as their needs grow. The earlier you begin to plan for the future of your organization the greater the potential return on your investment and the less likely you'll need to close unprofitable stores later.
