Expanding to new market segments with location intelligence
Background and business need
An IT solutions and services company providing services to their client based in the CPG category wanted to expand their business in specific cities in the APAC, Middle East, and South America region.
They wanted to identify restaurants and the POIs in these cities which would be their channel for product distribution. These restaurants and POIs would be identified on the basis of multiple factors like the demography of the population, competition, weather conditions, and other critical POI data that would help them decide if the location would be lucrative for their business.
With many factors to monitor, analyze, and strategize decisions based on location analytics, it was getting difficult for them to do this in-house. This is when they came across Xtract.io location intelligence solutions and decided to implement it for their business.
Challenges faced by the customer
The following were the depth of data and analytics the customer required help with
Demographic data
Psychographic data
POI data
They wanted to have a thorough understanding of the competition within the boundary and influence of attraction that would directly affect their sales. The analysis would further drill down to the nature of the restaurant (take-home/ dine-in/ cloud kitchen) and the distance of influencers from their location. They also wanted to analyze the weather conditions in the location to be able to decide if selling their product in that area would be profitable as the product was season-sensitive.
The research they were looking to conduct was quite extensive as they wanted to thoroughly analyze factors that may directly or indirectly affect their business. They wanted to make a well-calculated expansion strategy that was majorly supported by location intelligence.
Xtract.io Solutions and analysis
The location intelligence experts at Xtract.io analyzed the challenges and implemented a step-by-step solution.
There were several influencer categories that were required to be identified and analyzed
Xtract.io solution
The process began by creating a model that included influencers of the restaurant, both positive and negative. Our rigorous research helped us zero in on certain categories that would influence the choice of restaurant in that geography. The categories were - religious centers, public transport, educational institute, business centers, tourist places, banking facilities, commercial centers, and health centers.
The distance between the restaurant and POI was required to be calculated.
Xtract.io solution
Identified the distance of each influencing POI from the respective restaurants restricting to a specific distance. We also aggregated online reviews and ratings of these restaurants and based on the analysis of the sentiments and the demographic information, we provided insights on the type of audience visiting these POIs
Apart from POI data, other information like area demographics, restaurant data, and event happenings were required to be analyzed for further hypotheses.
Xtract.io solution
Aggregated demographic data by leveraging census information from government websites. We also aggregated data regarding the reputation of the restaurants that were in the form of reviews and ratings. We also identified several data points about the restaurant - scale of operation, delivery mode, menu, hours of operation, name, and a number of aggregators associated, types of cuisines served, and more.
The datasets were combined to perform hypotheses and point out the positive influencing POIs and negative influencing POIs. The business success was calculated as a direct proportion to the strength of the models.
Results and outcomes
The customer was able to successfully penetrate into Asian markets with Xtract.io’s location intelligence solution
The target market share was achieved well before the target date. For each city, the data and insights were delivered in 2 weeks
We helped the customer achieve a significant growth rate
The revenue through the sale of the product in the new markets was remarkably higher compared to the sale of the same product in existing markets
Better product placement helped create superior brand awareness and brand personality among customers, compared to competitor products
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© 2024 Mobius Knowledge Services
All Rights Reserved.
