Among the most common Geomarketing analyses is the overlapping of territories

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The big question isn't just “where is there space?” , but “what type of dispute is your business ready to win?”

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Overlapping units

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Imagine that you work in a chain where your stores serve customers who arrive on foot for a maximum time of 10 minutes, as is the case with pharmacies.

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It's up to you to assess whether a new spot doesn't fall “inside” that hiking area, which would divide the possible gains within the same potential market.

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This overlap is called “cannibalization”, a term that describes the phenomenon of a chain that opens stores within the areas of operation of existing units, subtracting the market without adding new audiences.

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Comparative purchase

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Another analysis scenario is focused on competition, that is, seeking to be within a competitor's area.

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This is common when sales are favored by comparison, as in the case of appliances, vehicles, and other items of high value and low purchase frequency.

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The logic here is, the closer the better, as it gives you more chances of capturing an undecided customer, ready to change stores if the price or service is better.

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Sum zero

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It happens when the arrival of a competitor simply subtracts the available market, making it more interesting to position yourself outside the areas of activity.

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This is a common behavior of businesses focused on basic services, such as supermarkets, laundries, bakeries, in which a new competitor It doesn't create demand, she only shares the bread.

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