By analyzing territories, companies obtain insights that broaden the understanding of their market presence, optimize their distribution, and inspire new strategies.
Having a well-structured market intelligence department is essential for any manufacturing industry that aims to rely on efficient distribution channels and keep sales at the top. And working with geomarketing becomes a differentiator: you have the power of map analysis to chart paths in strategic planning.
By analyzing territories, companies in the industrial sector obtain insights that expand the understanding of their own market presence (and the presence of competitors), optimize their product distribution, and inspire new action strategies.
In addition to knowing their direct and indirect competitors, the Industry must walk hand in hand with trade marketing so that there is synergy between demand and the distribution of what is produced.
When these companies plan to open new distribution centers, they mainly target points that facilitate the logistics of their operation. It is necessary to consider proximity to the public, the product mix for the points of sale, and consumer demand in each location, in addition to basic data such as demographics, income, education level, and the layout of other traffic generators.
But generally, the Industry has little information about the regions of its points of sale, that is, where the final consumer is located. The task of identifying this audience is almost always left to the DCs, which are usually smaller companies with reduced teams and resources.
1. Definition of the study area
Have you ever thought about using maps to design an effective plan for your business? Geomarketing is here to help you achieve better results. And often, they are the result of information exchange between Industry and Retail.
Within a geomarketing platform, the first step is to define the study area. That is, to delimit the depth of the market in which the study will be conducted. It is necessary to decide what types of analysis will be made – whether from a macro scale, analyzing the whole of Brazil, or in specific areas, such as a grouping of municipalities, a single city, or even an isolated neighborhood. Observe:
After deciding what the objective of the study will be, there are several methods for working with maps. Each industry knows its needs, which are quite varied, and can develop different uses for geomarketing.
2. Location of customers, warehouses, and other points of interest
The following map is very simple and can be the starting point for resolving many important issues. The three highlighted factors are warehouses, customers, and prospects, in the vicinity of a hypothetical branch in Campinas.
Just by highlighting the points and performing a brief analysis, it is possible to understand the area of influence of the Campinas branch, where the served customers are, and in which locations more effort is needed to win prospects. In other words, by building this chart, you understand your market potential in just a few steps.
And to make the study even more complete, a geomarketing platform allows you to include information on different sociodemographic aspects, such as income, age group, and other relevant characteristics to get to know the region.
3. Types of establishment and product mix
If the industry you work in has different types of products, it is not enough to know only where your prospect is located, but also which type of segment they belong to. This procedure is recommended to understand which products are more suitable for each point of sale.
The map example below gathers points of sale in two neighborhoods of Belo Horizonte, dividing them into bakeries, supermarkets, and mini-markets/grocery stores. Assuming, for example, that the company is a manufacturer of bread, cakes, and cookies, with this type of data in hand, it is possible to decide which products are best for sale in bakeries.
The goal is not to compete with the products already available there and also not to send those with low turnover at the location; after all, when they get stuck on the shelves, they end up spoiling and going to waste.
Product assortment by establishment is an important point to consider during distribution and sales prospecting.
4. Optimization of customer portfolios and sales channels
After identifying opportunities and deciding which types of products will be sold at each point in the chosen regions, it is time to define action plans. They can be built from existing maps.
Many salespeople act solely on gut feeling and their perception of the location. This practical knowledge of the region is interesting, but a more detailed study of the market, using analytical tools, can add much more information to the sales strategy and help the sales team hit their targets.
How to start? With the identification of points of interest made on the map, analyze how each salesperson will operate by region and areas of influence. Geographical factors are important when it comes to designing visitation areas for sales representatives: traffic in a region can be complicated, and there are geographical barriers such as highways, rivers, and train lines that make crossing from one side to the other difficult.
With the visitation areas mapped out, time is optimized. All customers and prospects appear in the itineraries, so that the market potential is well exploited, route overlaps are avoided, and sales representatives can chart the paths they consider easiest to visit their contacts.
5. Efficient distribution channels with target audience analysis
Industries usually work with partners to distribute their products and, as already mentioned, do not always know who their final audience is. Let alone having data on the residence, income, and preferences of these consumers!
Just like the Industry, many distribution channels do not have this type of information. They are small and medium-sized companies that work using field knowledge and gut feeling as guides, which can lead to many failures.
However, obtaining precise information about consumers in a location is essential for designing marketing, trade marketing, and distribution strategies. In other words, why not invest in accurate and qualified data for audience analysis by region?
Understanding consumption potential can help in choosing a product assortment suited to a neighborhood's audience, as well as defining what price can be charged in a given location. And the data can be further refined to indicate behavioral aspects of the residents.
For industries with highly segmented products, identifying the audience profile of each location is even more important. If the product is targeted at a senior audience, for example, it is necessary to know where the consumer with an age group and income compatible with the good to be sold is located.
Serasa Experian developed Mosaic, a product that divides the Brazilian population into 11 groups and 40 segments based on financial, geographical, demographic, consumption, behavior, and lifestyle aspects. Thus, it becomes much simpler to know where the consumer is located and distribute products in a suitable way. Check out the map below to understand how the application of this resource can be done:
6. Market evaluation and identification of companies for business
Geomarketing not only allows you to analyze the market and improve distribution and sales dynamics and processes. Through smart maps, you also see new business opportunities.
Geofusion has a database with more of 18 million registered companies, which enables the identification of points using the CNAE (National Classification of Economic Activities). Everything is validated and updated daily to ensure the quality of the database.
The selection of CNAEs presents different criteria that identify transaction risks, company size, revenue, location, and operational status. The data is checked against the Federal Revenue Service, based on the issuance of invoices and details of taxes paid.
From the identification of the desired CNAEs, you can group points and start more specific analyses within the maps, with segmentations based on the interest of each type of business. See a simulation made in the city of Campinas:
After choosing the CNAEs of interest, the platform allows you to view them on the map and, from there, create a new workflow, as shown in item 3 of this post. You can group them, divide them, and define each salesperson's portfolio.
7. Monitoring salespeople's goals
Using your company's database, you can map which municipalities of operation are progressing according to goals and needs, and which need more attention. It is a monitoring process that seems quite simple, but can be very useful for tracking strategies distributed across larger territories of the country.
Industries operating in multiple states also need to analyze the market on a macro scale and, from there, understand their strengths and weaknesses. In this way, errors are corrected and greater results are achieved. Check out an analysis made in the state of Paraná, with goals indicated for each municipality:
"Geomarketing knowledge will add new possibilities and offer a very distinct look at the strategies of the company you work for. There are different uses for geographic intelligence and various problems that market analyses can solve. Just create your own solution with free software or, if it is sufficient and economically viable, select one of the market solutions, organize the data, and get started."
"Given this scenario, perhaps it is time to rethink the relationship between companies and distribution channels. By providing market intelligence data, industries strengthen the relationship of trust with distributors. After all, in this context, who doesn't need to establish assertive strategies that can impact faster distribution or reduce freight costs, for example? It becomes a win-win relationship for both sides."