New approach optimizes sales for manufacturers
Nuremberg, 29 August 2012 - GfK will present a new approach to distribution optimization for manufacturers of technical consumer goods at the IFA 2012 in Berlin. The new benchmark GfK Sales Index reveals the regional sales potential for technologically oriented consumer goods. The index allows manufacturers around the world to tap more turnover potential on-site.
GfK calculates a new benchmark called GfK Sales Index on the basis of data obtained from its retail panel. This index reveals the turnover potential for technologically oriented consumer goods. Users of the data can quickly determine their degree of market exploitation by comparing the index to their actual turnover figures. This allows manufacturers of consumer electronics to identify regions with untapped potential.
Country-wide data on market potential is too imprecise to support efficient sales and distribution planning at the regional level. Sales operations must be adjusted to the characteristics of each sales region, as customer, retailer and purchasing power density vary widely from region to region. Geomarketing solutions and data allow manufacturers to determine their market potential on a regional level - for example, in every sales territory.
By offering comprehensive data on potential for technologically oriented consumer goods at the regional level, the GfK Sales Index boosts efficiency, serves as an objective basis for decisions and supports manufacturers in a variety of tasks:
Evaluation of existing and potential retailers
Demand for products varies from region to region. It's therefore important that manufacturers have reliable retail partners in every region with high potential. Geomarketing solutions support this goal by allowing manufacturers to evaluate the regional characteristics of their retailer networks.
Manufacturers can use the GfK Sales Index to compare the turnover potential in a given region to their actual generated turnover. This makes it possible to objectively compare and assess the performance of all retailers in the region in question. A geomarketing analysis also highlights regions where it makes sense to recruit new partners in order to close gaps in the retailer network.
Optimization of sales structures
An optimal sales territory structure is a key determiner of success for both manufacturers and retailers. It's essential that customers and sales opportunities be optimally balanced among the various sales territories. Sales structures can almost always benefit from optimization, according to GfK's many years of experience. Planning on the basis of past turnover figures is a very common practice. This approach fails however to take advantage of any untapped potential. Users of the GfK Sales Index can hone in on this potential at a detailed regional level across the full range of their international markets. Manufacturers can then set realistic targets for individual regions, retailers and sales territories.
Through its retail panel, GfK regularly gathers data in more than 90 countries around the world on technical consumer goods, including products from the consumer electronics, IT, household appliance, photography and telecommunications segments. Market potential can then be determined at a regional level by applying a geomarketing methodology, which involves geographic and statistical modeling. GfK also provides manufacturers services and consultancy revolving around retailer and branch network planning as well as sales territory optimization.