How To Locate Famous Chain Enterprises

First,

As we all know, location is the key factor for success of chain stores. There is a famous saying in the industry: "what is the most important part of a store?

The first is site selection, the second is site selection, third is site selection ".

Successful site selection system is one of the core competitiveness of chain enterprises. However, due to professional and experience constraints, the success rate of domestic chain enterprises in location selection has not been high. Through consultation and contact, we conclude that most of the chain enterprises are puzzled at the following three levels:

1, location is based on feeling, without scientific basis, and the risk is very large.

2, shops in mature business circles are hard to obtain, and lack of investment income forecasts result in failure of decision-making.

3, lack of systems and specifications.

Site selection becomes the biggest problem of expansion.

The first location often appears in small and medium sized chain enterprises based on the feeling situation. The boss of the enterprise judges the shop site with years of experience and intuition.

Often it is unclear whether the road is clear or not.

Speaking of their own location experience, most of them are predestined or feeling. There is no scientific basis, and the risk is very large.

There was such a story that a female boss of a beauty chain introduced her experience of choosing a store and proudly said, "standing there and sniffing the air, you know if you can open a shop."

As a result, three companies failed in Shenzhen's development.

Another chief executive talked about his location experience. He said he went to shops where thieves went to many places. As a result, the standards were totally not quantifiable. More of the shop owners took their subjective experience when they chose the site. They invested their money by feeling. Because there was no scientific basis, the risk was very large and they were separated by chance.

In the second case, chain enterprises already have a certain location.

The chain industry must expand rapidly, so as to reduce the operating cost. Chain enterprises often have third situations when they enter the scale expansion. Because there is no establishment and perfection of site selection standards and specifications, there is a lack of organization and system. Once the batch shop is located, the personnel can not find the location of the store, and the expansion plan has to be delayed again and again. The site selection will eventually become the biggest obstacle to expansion strategy. The typical case is the chain pharmacies ranking first in the big people's pharmacy. After entering Beijing, after 6 years' team development team's two years' site selection and the three general manager's end, they finally opened second stores in Beijing and delayed the development opportunity.

Two. Successful case analysis: scientific site selection process and strict examination and approval system.

The above mentioned enterprise location puzzles are mainly due to the lack of scientific and complete site selection standards and systems. How to build a successful location system has become the secret of successful chain enterprises.

After decades of development, pnational chain giants such as WAL-MART, Carrefour, McDonald's, KFC and so on have formed a very scientific and rigorous site selection system, making quantitative analysis of urban, construction facilities, surrounding environment, road traffic, population density, population structure, purchasing power and so on. On this basis, business circle analysis and shop opening calculation are conducted, so the success rate of site selection is very high, and its experience is worthy of our reference.

Take KFC for example, KFC currently has about more than 14000 chain stores in the world, and has opened nearly more than 2100 facades in China. Its success rate of site selection is almost one hundred percent, and its successful experience has two aspects.

1, scientific site selection process and standard have been established.

Usually, when KFC enters the city, the location begins with the division of business circle and the selection of business circle, then the calculation and selection of gathering points are carried out, including the measurement of the predecessors' traffic volume. Finally, the input of these information into special computer software can complete the calculation of the profit and loss of the shop, and clearly know that the amount of investment can not be more than that.

KFC focuses on family members as the main target consumers. The focus of the promotion is on young people who are more likely to accept foreign cultures and new things. The location of restaurants mainly takes into account the positioning of several elements such as geography, economy, market and tourist resources. According to the different business circles that KFC based on these factors, it chooses to enter the business circle and wait until the business circle is mature and stable before entering.

After choosing the business district, Kentucky strives to open shop in the vicinity of the most crowded place.

In the selected business circle, how does the pedestrian flow move, and in which direction do people go out of the subway?

How many people in the unit time are planned to open the shop?

All these are sent to pinch the watches and measure them. After a complete set of data, they are filled out according to the standards: the business district and the competition conditions table, the lease conditions table, the site situation table, the comprehensive evaluation form, etc., and the location of the store is determined according to the comprehensive score of the data.

2 site selection two level approval system.

KFC has its clear location principles and plans. In order to ensure the success rate of site selection, the process of location selection is approved by two committees. One is local companies and the other is headquarters. Headquarters is responsible for site selection system software and accumulates large amounts of data and location experience. It can make accurate and effective decisions and effectively protect KFC brand and franchisee confidence. Compared with domestic fast-growing fast-food chains, the successful location system is one of the winning weapons of McDonald's, KFC and other fast food companies.

Kentucky Fried Chicken, McDonald's and other multinational chain enterprise location system development is very mature, site selection system has achieved IT software, has developed to the application of geographic information system GIS software for new store expansion location and store network layout optimization stage.

How to effectively learn, imitate and surpass them, and successfully build chain location system is a topic that domestic chain enterprises must study.

Once an effective breakthrough is made in the location system, it will greatly accelerate the success of the chain business, taking the development of Gome location system as an example.

Gome was only a private enterprise with a turnover of 500 million yuan at the beginning of 1996. In order to accelerate its development, Gome chose Wangfujing store to open nearly 3000 square meters of shops. The advertising cost before the opening of the store amounted to 1 million yuan. But after the opening, it found that the rent was too high and the operating cost remained high.

Most of the shoppers in Wangfujing are outsiders. The direction of their shopping is not the site selection errors such as home appliances, forcing the United States to terminate the contract ahead of schedule and withdraw from Wangfujing.

The location error of Wangfujing mall makes Wong Kwong Yu realize the importance of chain operation and the process.

So he presided over the experience of the development of Gome in the past ten years, and made the "Gome business manual", which standardized the location criteria of chain stores as follows:

(1) area: according to the company's variety and scale of operation, the scale of operation should be kept at a proper operating area, and the business area in principle should be greater than 2000 square meters, of which the subsidiary turnover warehouse area should be greater than 300 square meters.

(2) floor: in principle, only the first floor can be selected, and the first floor can be taken two stories.

(3) traffic: with no less than 20 parking spaces, commercial areas with convenient public pport are the best.

(4) deadline: the lease term should be over 5 years or less than 10 years.

With the "Gome management manual" standardized and off-site replication, Gome's chain experience was quickly copied to Tianjin, Shanghai, Chengdu, Chongqing and so on.

With the normalization basis, the speed of the expansion of Gome has also been guaranteed.

Moreover, the management level of various regions has been effectively guaranteed.

Gome hired professional consultants to upgrade its operation system in 2002. After professional consultation, Gome has formed a complete operation standardization system. The site selection has also been formed from a simple assessment requirement into a scientific standardized evaluation and operation prediction tool. The list of store site assessment includes: the approval process flow chart of the electrical appliance shop, the application form for approval of the electrical appliance shop, the basic situation table of the optional store, the city condition questionnaire, the business circle status assessment form, the store structure and facilities evaluation form, the traffic and radiation condition assessment form, the new store's annual business situation prediction table, the lease contract approval list, the house lease contract, the sales area rent area measurement table.

With the scientific site selection system, Gome has expanded rapidly with an average annual sales of more than 100 stores. The new location system has effectively reduced the cost and ensured the success of the strategy. Site selection has become the core business fully controlled by headquarters. A dedicated location Department has been set up at headquarters, and a system of three level audit and management has been established for the site selection.

Gome's regulations on site audit are as follows: the president of the company is responsible for the final approval of the new store location; the chain development department is responsible for the supervision and audit of the new store location; the sub chain development department is responsible for the new store location work; and the district is responsible for the audit of the new store location.

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As we all know, the opening of the store is the only way to expand the chain enterprise, the good or bad of the place has a decisive influence on the future turnover. Therefore, it is the secret of the development of chain enterprises to choose a good store and seize a good point.

Three. Use the location 6M model to quickly build your own location system

Transnational chain giants have formed a very scientific and rigorous site selection system for decades to play an important role in the development of enterprises. Can it be possible for our enterprises to quickly form their own system? Based on the research and consultation of China's chain, we have summed up a set of scientific methods to build the location system in six steps. The key is made up of models, models, elements, adjustments, manuals and improvements, which is referred to as the location 6M model.

General chain enterprises can build their own location system based on these six steps from scratch to solve the problems of chain siting and expansion, improve franchisees' loyalty to headquarters and obtain steady and rapid development. Here is a brief introduction to the main steps and methods of site selection 6M model:

1, business model type and experience summary

Through market research, we can understand the development trend of consumers and formats, so as to ascertain the types of business models and analyze the behavior of consumers. This helps to determine location and location. At the same time, we can use questionnaires, expert interviews and data collection to summarize the successful experience of settling enterprises (franchisees / distributors) in the past, so as to provide accurate experience and data support for location selection.

2, establish the location theory model.

According to the business model and the existing location theory, the location model is summarized and summarized, and the constraints of site selection information collection are defined, such as simplicity, cost and scientificity.

Determine the scope of use of the model.

It is necessary to find out the data that can be quantified and evaluated with low cost.

3, determine the key indicators and weights.

The emphasis of this step is to establish the location model through the application of analytic hierarchy process (AHP) to identify the key elements and two level elements, and apply the expert scoring method to pform the qualitative analysis into quantitative analysis and determine the weights of each element.

To decompose the important dimensions into operable grading criteria, we can develop corresponding evaluation tables, such as business circle and competition condition table, community situation table, lease evaluation form and comprehensive evaluation table, so as to establish mathematical models and software models.

4, index adjustment

The key step is to use the model to establish the site inspection plan and database, and establish regression equation with historical data through actual test, then calibrate the validity of the index by software model, and use the method of simulation to solve the influence of different element weight design schemes on site selection, and form the weight and parameter adjustment table.

With accurate site evaluation criteria, weights and some successful cases, we can improve the store site assessment tool form and become a standardized tool for our chain store location evaluation.

5. Form the site selection manual and audit system.

The emphasis of this step is to combine the standardized process, specification and form of site assessment, to form or upgrade site manual, to become the basis of site standardized management, to strengthen headquarters control, and to constantly collect site selection cases, and to provide experience replication for location personnel in different regions.

6, process execution and location database improvement.

Continue to carry out the execution process and inspection, collect and update the data needed for site selection and improve the location database according to the strategic objectives.

On this basis, site selection software can be designed and developed, so as to improve location efficiency and accuracy, and form a unique knowledge patent at headquarters.

Unlike foreign chain enterprises, 6M emphasizes the cost and benefits of location selection, and emphasizes that quantification is a gradual process. The location process and specification of pnational chain enterprises are entirely based on scientific quantitative analysis. They are very demanding for investigation and data collection and analysis. Sometimes such location analysis is even more than a year old, which is generally unbearable for domestic enterprises. It makes domestic chain enterprises feel that it is impossible to do so. The location system, standards and parameters designed by 6M are carefully designed and verified repeatedly, so as to shorten the time and cost effectively and effectively.

The competition among chain enterprises is as follows: go to the game, pay attention to the layout of the strategic Bureau, "one son is wrong, the whole game is lost", lay the foundation for future competition in the location and layout, and at the same time, the modern successful chain enterprise location has changed from the traditional "site selection" to "grab the site".

The so-called "robbing" refers to the relatively scarce quality of the city's shops.

If an enterprise wants to get a good store location, it must take the initiative to conduct a comprehensive analysis of the city ahead of time, and incorporate high-quality shop premises into its own monitoring area.

How to plan the layout, how to do well the research and storage of the store site, and what strategy to get the storefront that you want, which requires the steward of the enterprise to focus on the big market, big pattern and large system, and establish a scientific location system as soon as possible, and grasp the successful password of the chain enterprise location.

Using 6M to build scientific site selection system is the "King's way" of layout, which can be applied to strategic location selection, applied to site selection and lookup, and applied to the selection of mature business circle, and applied to the valuation of store merger and pformation and direct pformation.