Case Study
North-American Leader in Doughnut Making and Distribution

Challenge


Our client, a company that was launching a vast deployment operation in Canadian territory, was looking to analyze the opportunity to open stores in the Greater Toronto area. In doing so, it wanted to study where its clients were located for each point of sale in order to identify the markets where cannibalization would be intense and those in which opening new stores would be fitting.

Solution


From the client-provided postal code list, we produced location maps illustrating clients’ whereabouts and presented a profile of Focus segments corresponding to established market areas.

• Market area establishment and client base profiling using the Optima-developed Focus market segmentation solution.
• Mapping of clients’ locations.
• Measurement of client base concentration within distances of 5, 10 and 15 kilometers all around the point of sale.

Results

The study enabled to measure the geographical spread of every point of sale’s clientele. Customer location analysis also revealed that the customer bases of two points of sale heavily overlapped each other, and that certain areas were not well served. Thanks to these elements, the firm was able to delimit its market areas, plan new openings that would attract a new customer base and part of the existing one, and thus balance out customer traffic and sales figures per point of sale. Let us also add that this case served as a benchmark for deployment in all other Canadian provinces.