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Cannibalization zone
Cannibalization zone : Territory within which several points of sale for a single product brand are operating in competition with one another.
This zone is an intersection of catchment zones for two points of sale for a single store chain or high-street retail outlet.
A cannibalization zone that is revealed through mapping analysis to be too large suggests a poor distribution of points of sale, and a lack of efficiency overall for the sales network, in terms of the coverage/cost ratio.
Cartography refers to the making and study of maps. Throughout the ages, cartography has consisted in representing data on a reduced scale medium representing a real area.
Previously, cartographers created maps by drawing them. Nowadays, we are moving towards an activity that is no longer about drawing maps but is more to do with updating already existing maps by adding data and modifying plots.
The catchment area is the geographic area from which an agency or a sales outlets attracts its main customers, whether prospective or existing.
The catchment area can be determined thanks to different techniques :
- with an accessibility analysis (determining isochrones, for example a less than 15-minute drive time catchment area), or with a gravity model, for an even more precise assessment
- with an analysis determining the geographical origins of the existing customers (store survey, delivery note analysis, postcode capture, check addresses analysis...)
Determining the catchment area of your sales outlet is very important : you can then analyze its sales potential, according to your customers and competitors. You can carry out this analysis before setting up your new sales outlet, in order to choose the best location, but also after to optimize your marketing methods (communication, means of signaling, offer adapted to your customers...)
Comparing the potential of an area with its existing customers helps you analyze the possible improvements you would have to carry out in your local communication (poster campaigns, mails with and without addresses, advertisement in the press).
CRM (Customer Relationship Management) is a broad term that covers concepts used by companies to manage their relationship with customers, notably technical solutions to improve communication with them.