Spectrum Analysis have worked with Pedders over the years in setting up their territories. In this Project we were asked to undertake a Market Analysis to understand what made for the strongest Pedders stores. The work involved visiting all the stores and building sales prediction tools which also identified the main Drivers for the business. Once this had been done, we could move all around Australia identifying areas of best potential for new store development. This also allowed us to look at major roads, and be able to specify where about in an area that Pedders Property team should be seeking a future store.
David Fahey of Pedders has been able to become more Pro-active in his site selection. He has been able to instruct Real Estate agents and potential franchisees as to where to look for new stores, rather than be reactive, and being asked to look at sites that very quickly don't meet the basic criteria.
Education - Childcare and Early Learning
In 2013, Spectrum Analysis was commissioned by Cheryl Shigrov at Precious Cargo to undertake the project of Strategic Network Planning in Adelaide, Sydney, Melbourne and Brisbane. Historically the partner had looked for outer suburbs, growth areas, on the view that these have a high % of children in the correct age bracket.
The project started with analysing current enrolments of existing childcare centres in Adelaide to have a fair idea of the demographics where Precious Cargo’s customers came from. We also used Social Economic Index for Areas sourced from ABS Database (Australian Bureau of Statistics) for extra information, e.g. of which income range Precious Cargo’s customers were?, etc…
For the sake of the project, we produced enrolment penetration and children density maps for each age group. Using all of the above variables, we were able to discuss what a mature market would look like with locations prioritized by tiers. Each proposed location went along with the most suitable trade area, depending on the demographic and socio-economic condition of the area. A trade area – or PMA (Preferred Market Area) defined by Spectrum is an active area for you to run business or a franchise, rather than a fixed boundary of a territory where your neighboring franchise definitely cannot penetrate.
The strategic network planning project would help Cheryl stay away from unnecessary doubt and reluctance to enter into new markets.
Just right after we finished this project and before penetrating into new markets, Cheryl Shigrov won double prizes of 2013 Telstra South Australian Business Woman of the Year and 2013 Telstra South Australian Business Owner Award. Congratulations! We wish her more and more successful in upcoming years with a thorough strategic planning done for Precious Cargo. Cheryl delivered very inspirational speeches on the winning nights, which can be found from the link below:
Garry Job – National Property Manager of Bob Jane T-Marts Support Team, has used Spectrum Analysis for many years. In one specific project 5 years ago, we assisted in their Network Development Planning, and were again asked in 2013 to revisit this work using the latest data available.
The 2014 Project began by placing data and information around all Bob Jane stores, and then mapping the stores and all the competition. A combination of sales data and demographic information assists in seeing areas of strength and weakness in each market around Australia and helps to focus areas where they are underrepresented. Specific areas were then identified for targeting for new locations. Garry’s team is then able to contact local real estate agents in areas that have been identified, and look for opportunities in these areas.
Garry’s comments is “This really assists in helping Senior Management focus on the areas where we can gain the best leverage for our brand in opening new stores.”
Peter Buckingham of Spectrum Analysis and Christian Bright, Head of Construction for Guzman y Gomez™ (GYG), met by chance on a flight to Sydney. Peter asked how GYG did their site selection? Peter was referred to Youil Adam (Leasing / Project Manager) and discussions ensued on what could be done to support this growing company. GYG’s directors had great QSR experience and site selection was done in a well-planned way, but as the company began preparing for rapid growth they sought a data-driven approach to complement their current selection process. Spectrum were engaged to work with GYG to develop a model for future sales predictions for new stores, and to make recommendations on where to seek new locations.
The Project began with a series of Target Market Index maps based on the most suitable demographics for the stores, and then each existing store was surveyed and a series of sales prediction models built. This gave GYG an ability to weight the drivers of the business in different retail scenarios (malls, strips etc), and then seek the malls and strips that best matched their needs.
Ultimately, Spectrum Analysis’s work with Guzman y Gomez has helped to shape a robust site selection process that will support the Group’s rapid growth across Australia.
Rogelio Martinez came to Australia and attended the 2013 National Franchise Convention on the Gold Coast as a preliminary to introducing Tudor Doctor into Australia. Tutor Doctor is an international company from North America, and provides one-on-one tutoring and supplementary educational support programs to students.
Tutor Doctor requested Spectrum Analysis to establish their territories using a concept we like to call Units of Demand (UoD). Units of Demand is a formula we use to weight different data, which in Tutor Doctor’s case were demographics such as numbers of children of a certain age group and the socio economics of the area. Using an algorithm which we suggested and gained agreement on, we were able to ensure when creating territories each Franchise has an equal opportunity in the market.
Maps were created based on current Australian data, and now Tutor Doctor has territories across Australia ready for a Franchising
First Class Financial Group
Finance - Bookkeeping
First Class Accounts, Australia’s largest bookkeeping franchise, approached Spectrum and asked us to map out their current territories which had been already done by postcodes and to then allocate any missing and additional postcodes to a territory.
There were several issues with these previous territories. Besides the classics – gaps and territories of inconsistent sizes, there were cut postcodes which would have made it difficult in the future when it came to reporting accurate ABS data and understanding defined boundaries.
As a result, with First Class Accounts’ agreement, we recut the territories from scratch using newly-calculated Units of Demand based on B2B businesses.
Units of Demand were calculated for each postcode in Australia using ABS business data and the Australian and New Zealand Standard Industrial Classification (ANZSIC), by weighting the types of businesses on how important each business is to First Class Accounts
We also gave weighting to the size (number of employees) of each business according to First Class Accounts’ prioritization. By ABS, businesses in Australia are categorized into 5 different sizes:
Using Units of Demand data at postcode geographic level, we then could carve up First Class Accounts’ territories Australia wide to a defined number of territories, making sure that each territory had an equivalent amount of Units of Demand. In reality, it means each franchise is ensured to have approximately equal B2B opportunity in the market, no matter how big or small their geographical territory size is.