Retail Network Optimization
McDonald's South Africa
The Task: McDonald’s wanted to increase their turnover and number of restaurants over a 5 year period by implementing an Expansion Strategy.
The Method: An accessibility study was done to identify the optimum number and location of restaurants of different types and sizes by maximizing their market share across a transport network using different mode of transport. The target market used was the take-away and fast food market in South Africa. The location of existing McDonald’s and competitor outlets as well as preferred sites were considered.
Findings: The study showed that there is still available demand in the market for additional fast food restaurants. However, gaps in the market are fewer for especially the larger restaurant types. The accessibility study was able to identify sufficient sites for new restaurants to accomplish their Expansion Strategy. A key insight is the limited availability of retail space.
The Task: Hungry Lion wants to expand their store network and needed assistance in deciding where to optimally locate them. An expansion strategy was done in the Eastern Cape to help them maximise their return on investment over the next 3 years.
The Method: Using an accessibility study the optimum number and location of stores of different sizes were identified in metropolitan and rural towns. The target market used was based on Living Standard Measures (LSM) and consumers buying fast food and Hungry Lion products from the Marketing All Products survey (MAPS). The location of existing Hungry Lion stores was mapped. Key attraction facilities in the grocery, banking and government services were clustered and used as preferred sites.
Findings: The study showed that there was opportunity for more fast food stores in the Eastern Cape. The accessibility study was able to identify sufficient sites for new restaurants to accomplish their 3 year roll-out strategy. A key insight is the incredible value of the fast food data emanating from MAPS.
Levi's South Africa
The Task: The purpose of the accessibility study was to assist Levi's to optimally expand their store network in South Africa.
The Method: An approaches was developed to conduct the accessibility study in South Africa. This included quantifying the Levi Strauss target market and the capacity and travel time parameters needed to do the accessibility study. The Socio-economic Measure (SEM) was used to define the target market. Preferred sites included shopping malls of different types, clustering of clothes stores & highly accessible sites.
Findings: A number of sites were found for Levi's different store types. A number of key findings were made about which were the most suitable shopping malls and the type of Levi store to locate at sites.
South African Enterprise Survey
The Task: The World Bank conducts Enterprise Surveys (ES) across the world that focus on small (5-9 employees), medium (20-99 employees), and large firms (>100 employees) The South African survey was administered to a representative sample of firms in the non-agricultural, formal & private economy that was segmented by industry, firm size, and geographic region.
The Method: Sectors surveyed included manufacturing, services, retail, wholesale, automotive repair, hotels and restaurants, transportation, storage, communications, construction, and IT. Interviews took place with top managers and business owners. The survey was undertaken in the provinces of KwaZulu-Natal, Eastern Cape, Western Cape, and Gauteng. Face-to-face interviews were done initially but with the outbreak of Covid-19 the approach was switched to telephonic interviews through our Call Centre. The contact details of senior managers were located by our Call Centre & interviews conducted.
Findings: Under the difficult Covid19 conditions 1 097 interviews were completed. The World Bank complimented our achievement and the quality of our work.
South African Business Innovation (BI) Survey
The Task: This official nation-wide BI Survey reached out to 5 500 businesses in the country. It was done for the HSRC’s Centre for Science, Technology & Innovation Indicators on behalf of the South African Government.
The Method: GeoScope undertook the survey using our call centre to telephonically conduct the interviews with senior management in sampled companies. The sample of big, small, micro, and informal enterprises were drawn from Stats SA business register. The sample included enterprises in sectors like mining, manufacture, energy, services, transport, financial, IT, R&D & engineering. The BI survey uses international survey methods and measurement tools to compare South Africa with other countries.
Findings: The fieldwork has been successfully completed and the data is undergoing data validation. The survey results will be analysed and published by the Department of Science and Innovation in 2023.