Reduction of investment risks by 4 times at opening new stores

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MAVT-Vinoteka - network alcohol shops in Chelyabinsk region (40 shops) with more than 20-years of experience in the market.

Problem
Problem
  • evaluation of locations for new store openings
  • optimization of retail network
  • identification and profiling of customers
  • customer base managing
  • turnover prediction
  • omni-channel advertising planning
Solution
Solution

oneFactor together with the Ural alcohol retailer MAVT-Vinoteka implemented a joint project on the evaluation of locations for new store openings. With the oneFactor retail cloud platform you can significantly speed up the decision-making process for the selection of optimal locations for new outlets and reduce the level of investment risk. The platform identifies and profiles the customers based on their own data analytics retailers in the union with those of mobile operators, the Internet-companies and Wi-Fi-providers.

Within the pilot project oneFactoranalyzed the current customer base of MAVT-Vinoteka to identify the nucleus of the target audience and the ground pattern of visits in retailer outlets. Customer Profile Analysis showed that the target audience MAVT-Vinoteka cellars are men aged 35-44 with incomes above the average of the analyzed citywherein 86% buyers do not live farther than 300 m from the existing outlets of the retailer.

During the second stage of the work using the platform oneFactor a model was built to evaluate new locations for MAVT-Vinoteca based on the identified target audience of the customer and the basic pattern of consumer behavior when purchasing goods of retailer. For each point the number of men aged 35-44 with incomes above the average for the city was analyzed,living within the radius of 300 meters from the location. In addition, more 200 other external factorswere taken into account. During the process the model based on machine learning algorithms transformed all incoming factors of the sale-point into a single indicator - the average monthly turnover, that the customer would have earned, if opened a shop at this point.

As part of the field test the deviation of the forecast from the actual revenue of not more than 10% is considered acceptable. During the project, through the platform of oneFactor a similar result was reached in 82% of cases. For comparison, the market’s average result is 21%. This level of precision has been achieved by the company's technology aggregating anonymous data from different sources.

The constructed model has been implemented into the existing business-process of MAVT-Vinoteka locations for assessment prior to the opening of new outlets. The oneFactor platform also reduced the process of assessing the locations up to 48 hours comparing to 3 weeks at a "manual mode".

During the next phase of cooperation an opportunity to integrate the developed oneFactor models with MAVT-Vinoteka website in section "Suggest a location for rent» is considered. This will optimise the existing processes of interaction with the owners of commercial real estate, minimize labor costs and reduce the risks when choosing location.

Effect
Effect

With the oneFactor retail cloud platform you can significantly speed up the decision-making process for the selection of optimal locations for new outlets and reduce the level of investment risks by 4 times.

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