Mapfry Team
upon
Jan 7, 2025
Critical analysis of network expansion

Having in hand the sales materials of the franchise, its COF and DRE, and having already talked to them about the market criteria, you can verify for yourself whether the strategy is good.

The marketing decision involves the types of places to be present and target regions to prioritize.

Be careful if the network is not clear.

Shooting everywhere

Cities with over 100,000 inhabitants are our target
Shopping malls with a high flow of people

Generic explanations are a sign of a lack of judgment.

The difference between Dream big and overstep

In this video, certified specialist and Geomarketing Professor Everton Henke presents the criteria, or lack thereof, of a hamburger chain.

A good network should state its market logic in an understandable order.

Pay attention to the speech and look for arguments such as those exemplified below:

Target audience

Our product/service is aimed at people with style Like that, roasted, who consume it at such a frequency, for the average ticket so much and prefer our network because we are the only ones able to serve them the way we do.

Meta-macro

Expansion Map

We identified 350 municipalities in Brazil with the presence of this profile in a significant number.
Within these municipalities, more than one unit can fit, our estimate is to reach 1000 units in 10 years.
We are currently prioritizing the regions, XYZ, where we have an office presence and supply within 2 days from the distribution center.

Meta-micro

Location Features

We are looking for locations that are central or local centers, due to the type of products/services we offer and are areas of concentration of other commercial activities that help attract flows.
Our business benefits from activities aimed at the middle class, with synergistic operations such as beauty salons, pharmacies, restaurants, bars, supermarkets and fashion stores.
Areas of specialization in businesses focused on fashion, beauty, and well-being are ideal.

Watch the video that presents micro-location criteria adopted by major brands:

Access the full story on Mapfry

Business vision

Aspects of the Point and its Area of Influence

In these places, we will search for properties between 60-100m² that are already in operation and we can revert to our network.
Vacant properties may be evaluated in special cases, but will require greater investments in disclosure until the point matures.
This has to be taken into account, since it changes the estimates of the Income Statement.
A network unit has the average attractiveness of 15 minutes by car and this reference will be used to design the franchisee's exclusive area, provided that it comprises a population greater than 30 thousand inhabitants with at least 50% of them in classes A/B.
If the area does not include the minimum target audience, it can be expanded to up to 25 minutes by car, at which point there begins to be a lack of interest on the part of the customer in moving more.
The validation of the point must also take into account the urban circuit, and it is essential to be on roads in the direction of Center-Bairro, Work-Home, focusing on moments when the customer has more time to consume.
Once the expansion in a city has begun, we must predict the opening of new units as soon as the maturation curve of the previous unit reaches such a point, thus contributing to the growth of the subsequent unit up to the limit of X units.
Existing franchisees will prefer to expand in their regions, as long as they express themselves in time.

References

The Limits to Growth - How Far Can Your Business Go?

Courses

Commercial leases

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Other chapters:

  1. Presentation
  2. From entrepreneur to entrepreneur
  3. Reason for being of franchises
  4. Law and Order
  5. Where to start and how far you can go
  6. Territories in franchises
  7. Benefits of Geomarketing in the design of territories
  8. Critical Analysis of Expanding a Network
  9. Each one in its own square