Intelligent branch network expansion in the shortest possible time
The organic segment represents a rapidly growing market in the food trade - ideal conditions for dennree. The group of companies is not only aiming for significant growth, but also for market leadership. The greatest possible market transparency is therefore essential for effective expansion planning and the optimization of market positioning and market share.
However, the geographical information system previously used could not meet these high requirements in terms of user-friendliness, flexibility and precision. dennrees' aim was therefore to use Nexiga Market Analyst to create a completely new, customized basis for future business decisions.
Fast and reliable location evaluation
As part of the expansion, various store openings are planned within a relatively short period of time. As dennree supplies various independent companies and retailers in addition to the company's own denn's organic markets as a wholesaler, numerous partner locations need to be taken into account when planning. In addition, so-called whitespots, i.e. "unoccupied areas", as well as incoming real estate offers have to be checked for addresses on an ongoing basis. In this way, the company has already been able to avoid time-consuming and cost-intensive on-site visits in the first step of the location assessment.
All relevant information on target groups, potential, competition, own stores and store catchment areas therefore had to be brought together in a clear system that allows particularly fine analyses and thus a reliable evaluation of many locations in a short time - both in Germany and in Austria.
The dennree Group, consisting of dennree GmbH and its subsidiary denn's Biomarkt GmbH, sells organic food, drugstore products and natural cosmetics both wholesale and retail. As a wholesaler, dennree GmbH supplies over 1,300 organic food stores in Germany, Austria, Luxembourg, South Tyrol and Italy from its headquarters in Töpen and seven other branches. The product range comprises over 12,000 items.
dennree GmbH was founded in 1974. The first denn's organic market was opened in 2003. There are currently (as of August 2016) 209 stores in Germany and 26 in Austria. The dennree Group now employs 4,600 people, 280 of whom are young people in training.
Cross-national combination of customer and market data
With Nexiga Marktanalyst Deutschland, Nexiga provided dennree with a flexible system tailored to the company's own needs, which includes all the necessary functions for geocoding, location and territory planning and report generation. As it was installed in a company-centralized manner, it can be operated by several users simultaneously.
The linking of internal company data with Nexiga market data from Germany and Austria provided a completely new perspective in terms of location evaluation and expansion planning: information on sales or customer cards was combined with various characteristics relevant to dennree, including information on the number of inhabitants by age group, household size, number of households with an "environmental" consumption style, purchasing power and retail-relevant purchasing power (total in millions, per inhabitant, index), centrality (retail density) and numerous other data.
The individual Nexiga location exposé also delivers results in a quick shot: it was individually designed by Nexiga for dennree so that the company can call up precisely the information it needs to make well-founded strategic decisions in store planning. This includes, above all, information about possible competitors in the vicinity as well as routing, distance zones, accessibility and location of the siteNexiga
Reliable data basis for successful expansion controlling
Since using Nexiga Market Analyst and the information from the Nexiga market data portfolio, dennree has been able to produce much more detailed and meaningful analyses in its expansion planning than before. The system provides a reliable data basis for successful location planning; in addition, target groups and marketing measures can be better analyzed and controlled.
In conjunction with the wide range of analysis options with regard to stores and locations, the company also gained additional insights into existing customers. The insights gained in this way can be transferred directly to new markets and customers. Information on locations, customer density, travel times, geographical portfolios or catchment areas provide the desired market transparency. This means that on-site inspections only need to be carried out for locations with very high potential. This saves considerable time and financial resources.
Thanks to the switch to Nexiga Market Analyst, dennree can improve sales estimates, use new methods and expand the infrastructure for further learning processes via the network of locations in Germany and Austria. Due to this positive development, the company plans to continue using Nexiga Market Analyst and Nexiga Market Data, to qualify further employees and to expand the system individually.
Expert advice, efficient solutions
"We chose Nexiga for several reasons: Not only was the efficiency and performance of the solution important to us, but also consulting at eye level and a partnership-based, equal exchange. With its standardized procedures, Nexiga Marktanalyst offers us an important and transparent first selection step in our expansion planning - especially when many locations have to be evaluated in a short space of time. In conjunction with the expertise of our employees, Nexiga's software and market data enable us to make a comprehensive assessment of locations and their potential in terms of new stores."