Cannibalisation and internal competition

Which points of sale are in competition?

Cannibalisation is the result of internal competition and causes significant wastage of resources and loss of income in terms of turnover. This effect is often observed with points of sale that are close to each other whose catchment areas overlap, for example due to successive openings.

Avoid wastage of resources by remedying this cannibalisation through internal reorganisation, or even by relocating certain points of sale.

In this geomarketing analysis, SIRIUS Insight primarily studies customer data. To do this, we locate all the customers and analyse the point of sale that they visit.

HOW TO READ THESE ILLUSTRATIONS?

The green symbol represents the analysed point of sale. The grey symbol (top right) is another point of sale in the same network. The discs represent the customers present within each census district, and their size is proportional to the number of customers. The blue part of the disc shows the proportion of customers who visit the point of sale that we are analysing. The orange part represents the customers who visit another point of sale in the same network.

Thus, we see on the first map that the point of sale has good local leadership. On the second map, we see that the point of sale’s leadership deteriorates rapidly the further we move away from it. A rather substantial cannibalisation effect is observed.

WHY STUDY CANNIBALISATION BETWEEN POINTS OF SALE?

  • Stop wastage of resources.
  • Understand leadership and the marginal role played by each point of sale in your network.
  • Move or reorganise points of sale with strong internal competition.

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