FINDING THE PERFECT SECOND LOCATION BASED ON GROWTH-DRIVEN DATA

ABOUT THIS PROJECT

Grove Studios is an on-demand recording studio, offering a full music studio setup to clients on an hourly rental basis. Growing fast, they needed location for an second music studio. To add a bit of pressure, a close competitor was also seeing rapid growth, prompting Grove Studios to find a unique location that could bring in new customers, fast! Finding the perfect spot for a second studio would be key to secure funding and continue on their rapid-growth track.

RESULTS

Upon discovering a new location with high demand, Grove Studios was able to find a property for 11% under budget and attract new customers from an entirely NEW geographic area.

23% Increase In Customer Demand (For The Second Location)

11% Saved On Budget To Purchase New Property

3 Locations That Would Generate Profit Within 18 Months

CHALLENGES

GROVE STUDIOS NEEDED TO SECURE FUNDING ASAP BY DEMONSTRATING THE FINANCIAL VIABILITY OF A SECOND FLAGSHIP LOCATION BEFORE BEING DISPLACED BY THEIR COMPETITOR.

Grove Studios has a rapid growth model, with one big competitor in the USA market. WIth very limited funding to get the next location up and running, they needed to find a location that would be able to generate a return within 18 months to help bolster fundraising efforts.

Additionally, Grove Studios needed to make their expansion move as quickly as possible to secure their place in the market, before their competitor expanded their own locations and impacted sales.

Finding a location that showed a high demand in potential customers, while remaining within their current budget estimate was absolutely critical to the success of Grove Studios’ expansion.

Analyzing customer data for insights and potential growth opportunities.

SOLUTION

ABLE TO PROVIDE 3 POTENTIAL LOCATIONS THAT WOULD HAVE A HIGH RATE OF RETURN WITHIN 18 MONTHS, WITH AN ADDED BONUS OF EXPANDING GROVE STUDIOS’ CURRENT GEOGRAPHICAL REACH.

By analyzing Grove Studios’ current sales data in addition to external geographical data, we were able to identify three locations that fit the client’s parameters while also staying significantly under budget and exposing the company to a new segment of potential customers.

➡ We discovered valuable insights on Grove Studios’ current customers, the most important of which being that most customers lived within a 25-mile radius of their current studio location.

➡ We then identified new geographical areas where music studio equipment and services were in high demand.

➡ This information allowed use to find 3 potential locations that could provide an opportunity for new customers to utilize Grove Studios’ studio rental services and expand their market area.

Going one step further, Grove Studios could use the analysis framework we provided again and again, repeating it each time Grove Studios needs to add another location.

RESULTS

GROVE STUDIOS’ NEXT LOCATION WAS PURCHASED IN ONE OF THE RECOMMENDED LOCATIONS, FOR 11% UNDER BUDGET, WITH A 23% PREDICTED GROWTH IN CUSTOMER BASE.

➡ Based on the location selected, Grove Studios will generate a profit within 16 months (instead of the desired 18-month parameter).

➡ The new location is predicted to increase their customers by 23%, which is another driving factor to reaching a profit faster.

➡ Grove Studios was so impressed with the results that they retained OWLLytics longer, enlisting our help with creating the presentation pitch for their first round of funding.

Now in a stronger position, Grove Studios was able to meet their competitor head on and claim a bigger market share, while expanding in smart, growth-driven locations to generate higher profits.