Simulation of the market share change - in this case a new location is opened

WIGeoLocation enables you to simulate a change in market share due to the opening of a new location.

An Overview of the Key Points

  • Product: WIGeoLocation including configuration for sales forecasts, Gravity analyses, cannibalization analysis and correspondingly structured location reports
  • Areas of application: Web-based location analyses
  • Data: Individual integration of all relevant internal data and market data (locations, competitors, sales, population, purchasing power, etc.)
  • Region: International use
  • Operation: Hosting or On-Premise (operation on your computers)
  • Your Benefits: Location decisions based on sales forecasts that take into consideration the environment, competition and attractiveness of your location

What are the benefits of sales forecasts in WIGeoLocation?

What is the sales potential of your locations? How strong is the magnetism of your existing and potential locations? These are crucial questions, because the more attractive a location, the higher its sales potential! These are the benefits offered by WIGeoLocation:

  1. Sales forecasts in WIGeoLocation are based on sound data
  2. Sales forecasts in WIGeoLocation take individual attractiveness parameters into consideration
  3. The location analysis software WIGeoLocation is intuitive to use, with no previous GIS knowledge necessary
  4. The WIGeoLocation WebGIS enables teams to work together at different locations and at different times
  5. Automatic creation of standardized reports
  6. Location analyses can be configured for each country and deliver results tailored to the respective market environment

With the WIGeoLocation software, you can create well-founded and data-driven sales forecasts and thus make the right location decisions.


We would be happy to give you a live demonstration of how gravity analysis and the cannibalization effect in WIGeoLocation works!

Utilizing the full potential of a location

Dear customer, where do you take your business? The sales forecast simulates the probability of a potential customer choosing your location over the competitor.

The Path to Forecasting Sales for Your Locations

Thanks to these central methods in the location analysis software WIGeoLocation, you can find out which locations have the greatest potential for success:

  • The gravity analysis allows you to determine the sales potential of your locations
  • The cannibalization effect indicates how much sales potential a location has to share with neighboring locations

Gravity and cannibalization analyses are calculated based on the parameters that are promising for your company.

This allows you to make every location decision with confidence, knowing it is based on sound data.

How can location decisions be supported by sound data?

Branch and location networks are only as good as the current environment and market situation allow. As soon as new developments, such as shifts in demand due to competitors, changes in market volume or online commerce, the location network must be reviewed and possibly adjusted.

“In a market environment that is subject to high levels of change, it is crucial to base location decisions and the planning of location networks on solid and up-to-date data. This ensures that investments in new or existing locations remain profitable.”
Andreas Marth, Head of Solutions, WIGeoGIS Vienna

In order to keep location and branch networks fit, they should therefore be subjected to a regular checkup. This is exactly what the location analysis tool WIGeoLocation is designed for. 

It helps to answer questions like these:

  • Which locations should you keep?
  • Is it time to upgrade individual locations?
  • Has anything significant changed in the area surrounding the location (e.g. in terms of population numbers, purchasing power or competition)?
  • Can the location network be expanded, and if so, where?

Change in the potential utilization when a competitor opens a new location

The darker the area on the map, the higher the potential utilization of your own location (★). If a competitor opens a location, the sales potential changes.

How do gravity analyses and the cannibalization effect improve location analyses?

Gravity analyses and the cannibalization effect can basically be used for two purposes:

1.    Past or present-related: To explain past and current changes in sales and customer frequency
2.    Future-related: To predict how a future change in the location network will affect sales or customer behavior

Example of Use:

The sales of a pharmacy decline unexpectedly. Calculating the gravitation and the cannibalization effect in WIGeoLocation can provide an explanation: For example, it might reveal that a new pharmacy in the catchment area is taking sales away from your own business. It can also tell you how much revenue you are losing. The strategic consequence could be, for example, the relocation of the pharmacy, an expansion to make the location more attractive, or a marketing campaign. If relocation is an option, the effects of this step on sales and customer behavior can be predicted in WIGeoLocation using gravity analysis. Scenarios can also be created for different potential locations, so that it becomes clear which location has the most sales potential.

Get to know gravity analysis in WIGeoLocation now, for free with no obligation!

Benefits of sales forecasting

What are the benefits of a gravity analysis?

With the help of a gravity analysis, you can assess locations in terms of previously defined attractiveness factors and can also create sales forecasts.

A gravity analysis provides answers to these questions

  • How likely are customers to choose a location?
  • How much revenue can I expect if I open a new location here?
  • How much revenue can be expected if I expand a location?
  • How many customers with what purchasing power will shop at this location?
  • What is the competitive situation around the location?

What are the benefits of sales forecasts in WIGeoLocation?

With decades of experience and specific industry know-how, WIGeoGIS is a leader in providing precise sales forecasts and the most accurate predictions of customer frequency with the help of gravity analyses in WIGeoLocation. Together, we configure the software based on your individual business model.

Which factors determine the attractiveness and thus the revenue of a location?

  • Customer frequency: How many customers are present in the catchment area of your location?
  • Target group: Does your location also attract customers with the right (product-specific) purchasing power?
  • Surroundings: How far away are your competitors? How attractive is the area surrounding your location (e.g. restaurants, leisure activities, other shops)?
  • Infrastructure: How easy is it to reach your location by public transport, by car, on foot, etc.?
  • Product range: Size of the sales area and quality of the assortment

Sales forecasts in WIGeoLocation - selection of parameters

The WIGeoGIS team supports you in selecting parameters for your specific needs, configuring the software and integrating external and internal data.

“We work closely with the client to define which parameters to integrate into the software, as these vary based on the individual needs of the client. For example, the success of a supermarket depends on different factors than that of a furniture retailer or a golf course.”
Andreas Marth, Head of Solutions, WIGeoGIS Vienna

To ensure that your sales forecast is as accurate as possible, real sales data from your existing locations are also included in the model as benchmarks. We guide you on the path to a perfect location analysis and the best location decisions.

Gravity analysis in WIGeoLocation: Live demo free with no obligation

How does a cannibalization analysis complement a gravity analysis?

When locations cannibalize each other, they take customers, business and revenue away from one another. The cannibalization effect keeps locations from being able to develop their full potential. This can include both your own locations and locations in competitor branch networks.

The calculation of the cannibalization effect, which can also be performed in WIGeoLocation, optimally complements the gravity analysis. Gravity analyses determine the attractiveness and potential of locations. The cannibalization effect decreases the attractiveness of a location. 

What questions are clarified with a cannibalization analysis? 

  • Where do the catchment areas of different locations overlap?
  • Which location is taking how many customers away from which other location?
  • If I open a new location, will it take customers away from my existing branches?
  • How much of the decline in sales in a branch is due to the opening of a new competitor in the catchment area?
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Forecast Calculation using WIGeoLocation: Request a FREE Live Demo!

  • FREE Live-Demo* of Gravity Analysis and Cannibalization Effect
  • Non-binding, without further obligations
  • Online presentation via video call

Do you want to know more about location analyses in WIGeoLocation using gravity analysis and cannibalization effect? I will be glad to support you.

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* The products of WIGeoGIS are intended for companies and are not suitable for private use. If you need a one-time market analysis, we will gladly make you a service offer.

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