The importance of location analytics in Dealer Network Expansion

Establishing your dealership in any random location and hoping for customers to show up because of the apparent demand of your products and services is nothing more than a gamble. So how can your company turn odds in its favour to prevent underperformance or worse, failing?

Finding the right location for your business is the key difference maker between success and failure at launch. Do not ignore the importance of location analysis; it needs to be an essential part of your strategic expansion plan irrespective of the domain of your business.

Preparing for Expansion

Chalking out a plan for future expansion is a complicated process. Choosing an appropriate location for your dealership or outlet can mean the difference between success and failure. Before you start looking at potential areas to set up your business in, you need to find answers to the following:

• How much market share do you hold in your field?
• Which prominent areas fall between two of your dealerships?
• Where are your competitors located?
• What locations have been ignored and why?

A thorough research into such questions would lead to making smart and informed decisions about dealer network expansion.

The process of Dealer Network Expansion

Now that the above questions have been answered, you will have a basic idea of probable locations to consider for expanding into. What follows is a three step process to reach a definite answer, i.e. a perfect position on a map for your business.

Analyze

• A map is prepared after an exhaustive study of your market penetration. It shows data concerning your existing dealerships along with your competition. This gap analysis helps in determining probable areas based solely on distance from existing and competing dealerships.

Examine

• By mapping selected demographics, like average age, income, literacy etc. you can scrutinize the best location depending on the target audience of your product/service. You can examine the shopping habits of a population to analyze how much demand it would generate.

Execute

• Of course this is not the limit to location insights. When combined with other analytics services, like inventory and sales, you can give the production unit information about the performance of certain products in a particular area. This helps in preventing extra costs of storage and transportation. Studying the effect of population trends on sales/demand can help you maximize profits in the future.

Make Informed Decisions

Location analytics helps your company reduce the risk of failure. By making the smart choice of opening your branch at a profitable location and by placing products according to the needs of an area, you minimize the extra cost of trial and error. This helps in giving you a competitive advantage by avoiding expensive mistakes.

Taking the next step

Do you want to know more about dealer network expansion using location analytics? Then feel free to contact Lepton Software with your queries. We have over 20 years of experience in helping medium to large companies expand their business to newer, less explored locations.

Being a big player in the location analytics industry, Lepton Software holds all the tools necessary for any type of business to harness the potential of location based services. Our services will help you expand your business by making smart decisions based on the geographical position of your outlets. You can get in touch with by writing to us at: marketing@leptonsoftware.com

Kumar Vivaan is the top Content Writer in India. He writes informative articles of different industries. He has more than 10 years of experience in content writing industries.