"Trade Potential" Models
These are models developed in synergy with our
and are aimed at estimating the potential of each retail
outlet for a specific industry / distribution channel.
The combination of the list of geocoded stores and the Potential Score for each store results in a ""Trade Directory"
The Potential Score
It is a score (expressed in ten-thousandths) which spresso in decimillesimi) that identifies the potential of stores trading, exclusively or not, a specific Category.
The score allows a comparison of each store vs others (both ordinal and cardinal) as regards the consumption of the Category.
Calculation of the Potential Score
CTB has developed a unique processing methodology of the Potential Score which is built in four phases:
Offer-side System: This phase is the standard production process for our
and involves a painstaking process of cross-referencing and unduplication of all available sources of information, both institutional (Company Registry) and
independent (e.g. lists published by retail chains).
All stores are geocoded to ensure their correct positioning on the territory.
Demand-side System: This phase consists in the reconstruction of consumer demand for the Category at micro-territorial level (census block).
If the Category is not already detailed in our
consumption statistical datasets
an ad-hoc micro-territorial estimate is developed by ceross-referencing
territorial profiling data and sales data from Retail Audits
Calculation of Contendible Potential by Store: Once we have reconstructed the amount and micro-territorial distribution of Offer and Demand,
we apply to the whole national territory a
«Contendible Potential» model
which allow us to estimate the share of potential demand for each store.
Assignment of Potential Score to each Store: The final step is to assign to each store a relative score (expressed in ten-thousandths) obtained by
dividing the «Contendible Potential» of each store by the sum of «Contendible Potentials» for all stores.
are made available in two formats:
Use of Trade Directories
- table format: a MS Excel® file
- vector ShapeFile o KMZ for Google Earth® format
are a key tool for all companies: