Case Study: Product and food Retail
A company that wants to enter into the food industry employed the City Intelligence system in order to carry out market analysis to determine in which supermarkets and delicatessens their gourmet and the healthy product would have the most sales.
Their product is a staple in Mexican households, however, due to the way that it is prepared and the ingredients used, it belongs to the “gourmet” or “healthy” range, therefore the target consumer is from a high socioeconomic level. With this in mind, it was crucial for the company to be able to locate points with significant concentrations of this consumer profile and the types of establishments where they make their purchases, in order to position their product in the most suitable store and location.
The City Intelligence machine learning tools helped identify the factors that are most relevant to client success. The spatial data analysis provided by City Intelligence enables a geolocated search for the consumers to be performed and to identify the most frequently used routes and traffic of the target population. In addition, the urban block level, the delicatessens and gourmet supermarkets within the areas where potential consumers live and interact, were also analyzed. With this and more data, an analysis was generated that allowed the potential of various areas of interest to be assessed to find the most suitable point of sale for their new product line.
- 80% of the consumer segment moves within an 8 km range around the areas where they live.
- 55% of the inhabitants of this area are of the socioeconomic level A/B, and 18% of C+.
- Of the convenience stores and supermarkets, 10% are delicatessens and 35% are gourmet supermarkets within the sector.
Based on the results found, the client decided to position the product in 3 gourmet supermarkets and 3 delicatessens in the area that best suited the market segment, in order to ensure competitive sales of its products without incurring high logistics and positioning costs, this being a fundamental factor for the success of a business like theirs.
Using the system, the client was able to appreciate the competitive potential of the polygon and the area in which they will sell their product. They were also able to determine the location of nearby consumers, in order to analyze their behavior and the routes that they use (taking the opportunity to advertise their product in such locations). Finally, once the area was chosen, 6 locations were identified for the location of their brand.
If your enterprise focuses on retail, using City Intelligence you can:
- Determine the most suitable location and site for your store or points of sale to position your product.
- Get to know the competitors in the area in order to offer a high quality, innovative product.
- Analyze the polygon or area where your consumers are located, in order to determine if this is the most suitable position for your business.
- Identify other areas with similar behaviors and markets to continue growing your business in a sustainable and highly profitable manner.
- Make use of large databases to find out how many consumers are in the area and how easy it is to access your premises.
- Know the consumer characteristics in the most viable area for your business or product.
We complement the services of City Intelligence with other marketing research tools to offer you more detailed studies that are tailored to your needs. Visit http://www.lac.mx to learn more about our professional services, with more than 15 years of experience in market research.
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