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Strategy for locating a franchise using geomarketing

by Azahara 2/Aug/2018

When it comes to expanding a business and opening a new place in another location, one of the first questions to answer is where. Geomarketing is an important tool to solve this issue, as it helps to know in depth the client and find the best areas where people with this profile are. We explain below how geomarketing works if you want to expand the number of branches of a franchise.

When a business prospers, you have to think of new ways to expand and get new revenue streams. Opening another center of a franchise involves a very large investment, which must be done correctly to be in the place where your potential customers are, always taking into account the actions of the competition.

To make an expansion, there are many tools at our disposal and each time new ones appear and those already existing are debugged. Today we will focus on what geomarketing can offer in these cases.

First of all, geomarketing helps to know the client in depth. Who is visiting the store now? How are they? What are their interests? What are their needs? What is their purchasing power? Where they live? These data are very important, because the goal of the new store is to locate in the zone whose area of influence includes more potential customers.

The second issue that must be taken into account when expanding is competition. The ideal place for the new store may be an area where there are already many similar shops and it may be better to look for another site where there is a good density of the target, but which is easier to catch. Or, maybe the idea is to be where the competition is located to put pressure. Be that as it may, it is a way of making the right decisions for expansion objectives.

Within the choice of place, there are other factors that may also affect. For example, the presence of bystanders is an advantage for any business, although they are not part of the main target. And statistics tell us that the more people who pass, the more likely that someone will enter to the place.

For this reasoning, positioning within a commercial area has its benefits, since it functions as a focus of public attraction in which it is important to be. Each one should consider all these factors and place on a balance which issues have more weight than the rest.

Geomarketing applied in Barcelona

No one can question the great potential of geolocated information, in this case framed within the discipline of geomarketing. And we put the real case of a company in Barcelona that was looking to open a new headquarters.


Having already a prior knowledge of what characteristics his current client had, the work was arranged and the segments of the population that were closer to what this business was looking for were mapped onto a map.

The visualization of the information has many advantages, since it allows having a very clear general vision of the situation. Thanks to this process, it was possible to detect new opportunities and threats that had previously gone completely unnoticed.

The main challenge of developing this geomarketing solution was to integrate large quantities of information from different databases, as well as to make one specifically for the occasion on the companies of the competition.

This platform allows analyzing and evaluating all the information provided through a series of algorithms and making an assessment of each of the areas of the city according to the criteria established by the company (customer profile, closeness of the competition, ratio of displacement, average cost of rent, etc.) and thus discovering the perfect location.

In short, geomarketing is an essential tool when taking a step as important as extending a franchise. It also means a very large initial investment for any business, so with a good location you can be closer to getting a good ROI soon.

Undoubtedly the most important and primordial is to know the client well and work on this information. By placing it on a map, we can have a more intuitive and general view of all the elements at stake. The end result is that you get a greater amount of data and information to work on, which translates into better decision making and greater benefit for any business that seeks to expand. In the long run, the investment in the expansion will have been worthwhile and will pay off.


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