Case Studies & Testimonials
Evaluating the potential of extending branch networks within Melbourne
LEK Consulting
BACKGROUND
L.E.K Consulting, a client of Pacific Micromarketing had two objectives - firstly, to build a catchment based view of the Melbourne metropolitan market to assess market potential and potential competitive issues. Secondly, to develop a systematic market analysis tool which could be rolled out to other metropolitan areas to evaluate the performance of the branch network.
Pacific Micromarketing was asked by L.E.K Consulting to help develop the branch catchments for the Melbourne metropolitan area and to assess the existing branch coverage versus the optimum branch network.
"Pacific Micromarketing helped us to effectively analyse the Melbourne market and determine the success of setting up new branches."
NAME LEK CONSULTING
ACTION
Pacific Micromarketing’s first task was to divide the Melbourne metro market into a number of branch catchments around concentrations of industrial, manufacturing and light engineering activity. To do this, it used its Workplace Demographics data set to identify the number of employees working in designated industries in each catchment, then in conjunction with L.E.K Consulting, translated these into estimated demand. Pacific Micromarketing’s analysis software - Micromarketer, was then used to produce the catchment analysis based around a 10 minute drive time.
The second task was to look at the market potential represented by potential customers and understand the level of competition in each of the catchments. Areas of high and low demand for each branch were calculated and plotted, assisting local managers to understand their current market share.
RESULTS
Pacific Micromarketing, working with L.E.K Consulting delivered a solution that enabled the client to optimise their branch network and sales target setting for metropolitan areas. The catchment analysis allowed the client to look at opening new branches and to more accurately set sales targets for branches. Due to the success of the project, the same process was used to analyse the Sydney market.
This solution won an award for innovation for L.E.K Consulting in a major Asia Pacific consulting project competition.