RegioGraph in practice

GfK GeoMarketing
RegioGraph in practice
RegioGraph success stories by users in sales, marketing,
controlling, logistics and research.

2
Editorial
RegioGraph in practice
Dear Readers,
Geomarketing is a decisive factor in the success of
companies of all sizes and branches. Geomarketing lets
you optimize your regional markets, minimize risks and
realize your full potential.
Our geomarketing software RegioGraph has been the
program of choice for marketing, sales and management
divisions for the past 20 years, providing crucial support
for controlling, expansion and market optimization
activities. There are currently more than 40,000 devoted
RegioGraph users who rely on results obtained from the
software for making more informed business decisions.
With its powerful and easy-to-use features as well as
worldwide expansion-options with regard to maps and
data, RegioGraph is the ideal solution for managing your
international markets.
The numerous user reports that follow reveal how Regio-
Graph has been successfully and profitably implemented
into the daily business operations of companies from a
wide range of branches.
Wishing you an inspiring read!
Doris Hardt-Beischl
Head of Sales, GfK GeoMarketing
New product name: “DISTRICT” now called
“RegioGraph Planning”
The geomarketing software formally known as
“DISTRICT” is now called “RegioGraph Planning”.
Consequently, all references to the software in this
publication use the new name – “RegioGraph Planning”.
In the case of user reports describing work done with
DISTRICT, an asterisk has been appended to each
reference to RegioGraph.
Imprint
GfK GeoMarketing GmbH
Werner-von-Siemens-Str. 9
Gebäude 6508
76646 Bruchsal; Germany
Tel.: +49 (0) 7251 9295 100
Fax: +49 (0) 7251 9295 290
www.gfk-geomarketing.com
info@gfk-geomarketing.com
Responsible for publication:
GfK GeoMarketing GmbH
Management Board:
Wolfram Scholz,
Dr. Eberhard Stegner
Chief Editor:
Cornelia Lichtner
(V.i.S.d.P. by German law)
Graphics & layout:
Nathalie Adlung
Translation:
Christopher Guider
Content
Sales territory planning and optimization | 04
Flexible in a dynamic market:
Festo uses RegioGraph to optimize external sales force
HERMES Pharmaceuticals:
A successful sales territory makeover with RegioGraph*
Sales territory planning at Vichy: Vitamin-boost with D-10!
Tailored for success: Territory planning in the textile industry
Marketing | 11
Advertising planning with RegioGraph and GfK Demographics
Solar technology company ILIOTEC: Bright prospects with RegioGraph
Location planning and optimization | 14
Streamlining a physicians’ insurance consulting network
with RegioGraph*
Optimizing car dealership locations based on potential levels
Controlling | 18
Custom-tailored turnover planning for the door provider BAWO
with RegioGraph and KapHoorn
Success, meter-by-meter: Home improvement store supplier ERÜ
uses RegioGraph for sales planning
Logistics | 22
RegioGraph for transportation logistics
Synthetic grass manufacturer enjoys record growth thanks to RegioGraph
Research | 25
Tufts University develops a hunger relief program using map analyses
Storm damage predictions for insurance companies – an analysis
ZEW Mannheim – A Study of High-Tech-Company Start-Ups in Germany

4 Sales territory planning and optimization
Flexible in a dynamic market: Festo uses
RegioGraph to optimize external sales force
Flexible sales
territory
planning with
RegioGraph
VarioPlan.
RegioGraph in practice
Festo, a supplier of pneumatic and electrical automation technology, uses
RegioGraph to evaluate numerous external sales force variables: The company
uses the RegioGraph add-on „VarioPlan“ to create and optimize
sales areas while preserving existing relationships with key customers.
As one of world‘s leading suppliers
of pneumatic and electrical automation
technologies, Festo AG offers
more than 28,000 products as well
as customer-tailored solutions and
ready-for-installation automated
systems. These many offerings along
with its reputed customer service
make Festo very popular. Festo‘s
head office is located in the town
of Esslingen-Berkheim in southern
Germany. From this location, the
activities of more than 140 external
sales force members in 13 sales areas
across Germany are evaluated and
optimized.
Excellent customer service is a top
priority for the company. This entails
offering customers long-term, reliable
contact with a trusted sales representative,
while, at the same time,
ensuring that the company remains
flexible amidst the many changes
of a dynamic market. Festo uses the
RegioGraph add-on VarioPlan in
order to adhere to both of these company
principles. VarioPlan makes
it possible to differentiate between
„standard“ and „special“ customers
in order to ensure that the latter are
not affected by sales territory restructurings.
The affects of any planned
changes can be illustrated on the
maps in real time. This is true not just
for the experienced RegioGraph user,
but also for regional sales heads who,
during a visit to the head office, wish
to have a quick glimpse at the current
sales territory planning activities.
VarioPlan was developed by Zim-Tec,
a long-standing business partner of
GfK GeoMarketing that specializes in
providing client-centered programming
solutions for RegioGraph. Zim-
Tec developed the add-on based on
its recognition of the fact that many
companies – such as Festo – have
unique needs and goals concerning
the organization and optimization of
customer-sales representative assignments.
There‘s the typical case of
a sales representative being assigned
to a specific region. Another possibility
is for a sales force member to be
assigned key account customers who
are spread out over various sales ter-
ritories. Finally, some combination of
these two types is sometimes necessary.
In these cases, a sales representative
has an assigned territory, but
also specific key customers located in
other areas (who remain assigned to
the representative in question for the
purpose of maintaining continuity or
due to the representative‘s specialty
knowledge of a certain product area).
VarioPlan makes it possible to balance
these sometimes competing aims in
the area of customer-sales representative
assignments and optimizations.
It‘s very easy to make adjustments to
the status of existing customer assignments
by using VarioPlan in conjunction
with RegioGraph. A status window
provides an overview of the currently
highlighted objects on the map. The
sums of the numerical columns in
the associated RegioGraph table are
listed next to the number of highlighted
objects. This makes it possible
to immediately identify the impact of
any changes on key statistics, such as
turnover or the frequency with which
a sales force member can visit a given
customer.
Harald Glaser, head of Festo‘s external
sales force management for Germany,
regards VarioPlan and RegioGraph as
an indispensable combination: „The
overview visualization feature and
immediate representation of the effect
of any changes on things like turnover
and visitation frequency make Vario-
Plan an incredibly powerful planning
tool. Thanks to VarioPlan and RegioGraph,
we can carry out detailed
analyses of our sales structures, react
quickly to any changes and maintain
our high customer service standards.“
For more information on VarioPlan and
Zim-Tec‘s programming services, visit
> www.gfk-geomarketing.com/
varioplan
RegioGraph proficiency in two days
Boost your skills with a RegioGraph training course!
Get to know the software's key functions
Benefit from practice-based examples and expert tips
Implement RegioGraph more effectively into your daily workflow
To find out more, call +49 (0)7251 9295200.
To book a place on a course, visit www.gfk-regiograph.com/training.
GfK GeoMarketing

6 Sales territory planning and optimization
Sales territory planning and optimization 7
HERMES Pharmaceuticals: A successful
sales territory makeover with RegioGraph*
Creating a new sales structure in just eight weeks is quite a benchmark.
HERMES was able to implement a successful new sales territory structure
in that time span with the help of the territory planning software Regio-
Graph and targeted software training in advance.
RegioGraph in practice
HERMES Pharmaceuticals – one of
the leading providers and manufacturers
of high-quality products for selfmedication
in Germany – stands for
expertise through top technology and
tradition. This year the company will
be celebrating its 100th anniversary.
A complete territory makeover had
become necessary due to restructuring
plans for our outside sales force.
The task was clear: The new structure
was to achieve optimal use of existing
resources and efficiently sell the products.
The timeframe for implementation
was tight, however: The new
sales territory structured had to be
defined, planned, coordinated and
implemented within just 8 weeks!
For this major and urgent project, we
used RegioGraph Planning* software
from GfK GeoMarketing. In a 2-day
RegioGraph training session before
starting our work, our team was
trained in the program’s key functions
in a very efficient, concentrated
and thoroughly expert manner. The
well-selected examples from practice
helped us in quickly anchoring our
knowledge.
As a result, the territory planning
process went extremely smoothly
and quickly. Prior to the restructuring,
we set the goal that sales potential
and workloads within our sales
representatives’ territories should be
distributed equally. The sales
potential of each of our customers
was assessed. Finally,
they were classified as ABC
customers, and from this we
derived how frequently each
customer should be visited.
Now it was clear how much
time or “workload“ should be invested
in each customer. This allowed
us to balance the entire workload
evenly among sales territories and
sales staff.
Developing our new territory structure
with the help of RegioGraph’s
territory planning functions always
provided us with maximum objectivity,
transparency and planning
control.
GfK GeoMarketing’s user hotline
always gave us expert advice on all
our questions. Thanks to the prior
software training, we were also able
to complete the in-house territory
planning round with regional sales
managers quickly and on-target.
With RegioGraph, implementing
our sophisticated task was easy and a
complete success.
Author: Thomas Fischbeck,
New product
lines can also
be easily integrated
into
planning
Head of OTC-Controlling, HERMES Arzneimittel GmbH
fischbeck@hermes-arzneimittel.com
*New product name: “DISTRICT” now called “RegioGraph Planning” (page 2)
Increased sales vitality: RegioGraph
boosts Vichy‘s sales territory planning
We spoke with Stefan Mohrlang, sales controller at Vichy, about how
his company uses the sales territory planning software RegioGraph as a
rejuvenating force for sales territory planning in the cosmetics sector.
Mr. Mohrlang, what are your
company’s and division’s goals for this
business year?
“Our goals are the classic sales goals:
increase turnover, improve customer
service and, as a means of achieving
these ends, optimize the use of our
resources with regard to the external
sales force.”
Describe the characteristics of your product
line with regard to sales territory
planning and the external sales force?
“In contrast to other sales lines that
utilize the pharmacy network but are
concentrated primarily in urban areas,
we strive for a nationwide presence for
Vichy products. Louis Vuitton bags
can only be purchased in Berlin or
Munich. By contrast, Vichy cosmetics
are not targeted to a niche market,
but rather a large body of distinguishing
consumers. In order to achieve
this nationwide presence, we have to
steer clear of focusing solely on urban
areas, particularly in eastern Germany,
where our customers are distributed
more evenly throughout the region.
This must be taken into account in our
sales territory planning.“
How long has your company been
using RegioGraph Planning*?
“Vichy has been using RegioGraph*
since 2003. We take care of the preliminary
steps in-house, such as the
preparation of the company data. We
then use the services of a GfK Geo-
Marketing consultant to carry out the
planning and evaluation steps with
RegioGraph here on-site. We have
an enormous amount of respect for
the experience and expertise offered
by your consultants – such as Mr.
Michael Büttcher – who are highly
skilled at planning and restructuring
sales territory networks.”
What was the specific task that had
to be accomplished? What were the
details and conditions concerning the
sales territory restructuring?
“From both the standpoint of the market
and the company, the time was
right for a restructuring. This restructuring
needed to take into account
both person nel- and region-specific
challenges and characteristics. We
tried as much as possible to align the
new sales territories with our existing

RegioGraph in practice
structure. But even when the boundaries
of certain regions remained relatively
the same, there was a need to
optimize them. Here we had to take
numerous factors into account: the
location of customers, employees’
places of residence, the customersales
force network as a whole, the
division of various sales territories
into overarch ing sales regions, etc.”
What approach was taken to achieve
these goals – what were the most
important phases? Were there region al
differences that had to be taken into
account?
“First we used RegioGraph* to visualize
the existing sales structure. We
then defined relevant factors for the
planned restructuring and used the
software to automatically generate a
restructuring suggestion. Next we discussed
the restructuring model with
our sales force, taking their expertise
and experience into account. Then Mr.
Büttcher used RegioGraph* to manually
adapt the proposed restructuring
to our company’s precise specifications.
The results were then distributed
to all employees in the form of
maps and reports.”
Please tell us a bit about the implementation
of the restructuring – is it
already completed?
“Yes, the new structure was implemented
very quickly and was entirely successful.
Things have continued to develop in a
positive direction ever since.”
To what extent has geomarketing contributed
to L’Oréal/Vichy’s success? What
is your evaluation of RegioGraph*?
“RegioGraph* is an immensely helpful
tool for sales territory planning
due to, among other things, its speed
and flexibility. RegioGraph* allows us
to specify our company-specific criteria
and use these as guiding parameters
for any restructurings. Using this
information, RegioGraph* can then
generate the optimal solution. We also
really value the feature that allows us
to manually make changes and immediately
have them taken into account
and visualized. I’m also very enthusiastic
about how attractive and easy-tounderstand
the generated results are,
despite the complexity of the theme.”
Many thanks for the interview and
best wishes for continued success!
Before optimization:
RegioGraph*
reveals many overlaps
in customer
representation.
Tailored for success: Territory
planning in the textile industry
While some criteria for optimizing territory structure can vary from
branch to branch, certain fundamental principles hold across the board.
RegioGraph* provides comprehensive support in this regard, as Anne
Schroeder shows in her university dissertation
The motivating reason behind she
examined textile company’s need for
territory optimization was the retirement
of several sales representatives.
Anne Schroeder, a business student at
the University of Cooperative Education
in Stuttgart, chose to focus on this
restructuring in her dissertation, for
which she found GfK GeoMarketing’s
territory planning software, Regio-
Graph Planning*, invaluable.
“As part of my thesis, it was necessary
to shed more light on the concept of
Sales territory planning and optimization
sales territory planning,” says Anne
Schroeder. “With reference to the existing
sales territory structure, my goal
was to devise a restructuring plan that
took into the account the various needs
and characteristics of the company.
Working together with the textile company
provided me with a practical starting
point and a specific aim to explore.
RegioGraph*’s practice-oriented design
was instrumental to the successful
completion of the project.“
The initial focus of the thesis was an
analysis of the existing sales territory
structure.
“Theoretically, an optimized analysis of
a company’s sales, territory and market
data plays a decisive role in its chances
of success. My research confirmed that
this holds true for the textile company,
demonstrating as well that much of
the aforementioned data varies significantly
according to location. Territory
planning software such as RegioGraph*
is indispensable in preparing a regionspecific
marketing analysis, particularly
in the case of a company with a
sales department.“
The task was clear: optimize the sales
territories by adapting them to the parameters
of the regions in question, such
as the number of actual customers and
potential customers, past sales figures,
concentration of customers, sales and
marketing potential and the location of
sales teams and customers.
9

RegioGraph in practice
Implementing the project with
RegioGraph Planning*,
Part One – The Analysis:
With the help of GfK GeoMarketing’s
5-digit postal code map, the company’s
customer data could be visualized and
analyzed. This made it possible to identify
where the sales representatives
lived and operated, in addition to the
routes they traveled to and from customer
locations.
The distribution of current and potential
customers within the German sales
regions also became clear, as did the
distribution of customers according to
size-based categories. This visualization
facilitated the identification of especially
strong sales territories, as well as
several aspects of company operations
that could be improved, including,
most critically, overlaps in the driving
routes of the sales representatives.
Implementing the project with
RegioGraph Planning*,
Part Two – New Planning:
The defined goal for the subsequent
restructuring was as follows: A clear
structure should be created allowing
the best customer service possible for
the lowest possible cost.
The 5-digit postal code areas of Germany
were used as a starting point
for optimizing the service areas. The
demarcation of postal code areas was
departed from only in those instances
in which not doing seemed disadvantageous
to the business. It was important
to guarantee that existing customer
relations would not suffer from any
effects of the restructuring. The aim
was to ensure that the new structure
resulted in medium- to long-term continuity
with regard to customer contact
partners. Care was also taken to create
sales territories whose size and structure
permitted the full utilization of the
company’s existing sales staff. Regional
cultural and linguistic variations were
also taken into account. Additionally,
the drafting of sales territory boundaries
considered the locations of the
sales staff’s homes in order to avoid
long drives and overnight stays. Finally,
attention was given to the relative skills
and abilities of the sales staff.
“Only by using the territory planning
software RegioGraph* was it
possible for me to perform this kind
of analysis and territory planning,”
Schroeder explained. “The geographic
relationships connecting addresses,
cities and sales territories were illuminated
through the visualization of the
data. As a result, strengths and weaknesses
could be identified more easily,
enabling the creation of a more streamlined
business structure.”
“The software also allowed me to present
my project results to my thesis
supervisor at my university in Stuttgart
in a very convincing fashion. Regio-
Graph* was thus a key factor in the
success of the territory optimization
and my academic endeavors.”
The textile industry has been in continual flux for
more than 30 years. The textile industry is a “nomad”
in the processing and production sector. Due to the
high intensity of labor resources in the sewing sector,
processing and production sites are frequently chosen
according to the level of wages offered in the respective
regions. Many companies have outsourced much
of their labor from Western Europe to Eastern Europe,
as well as to Asia in a persistent effort to lower wage
costs and raise profit margins. Developing new markets
in these regions is regarded as equal in importance
to the establishing of sales staff closer to home.
In many cases, the executive and administrative headquarters
for these companies remain in industrialized
countries such as Germany.
Further information on the thesis:
Anne Schroeder, Diplom Betriebswirtin (BA)
schroederanne@gmx.de
Advertising planning with
RegioGraph and GfK Demographics
DBW Werbeagentur GmbH is an agency that provides support for marketing,
merchandising and advertising. In the household advertising sector,
DBW offers a comprehensive spectrum of services along with seamless
transparency in all planning phases. Project coordinator Damir Begovic
relies on RegioGraph for the successful completion of these operations.
DBW provides household advertising
services in a modern, streamlined
manner. DBW's continually growing
operations now encompass a yearly
production volume of more than
100 million advertising materials.
The company coordinates the sale of
advertising materials, prospectuses,
catalogs, magazines and product
samples in the German federal state of
North Rhine-Westphalia.
The company's customers also include
grocery stores, car dealerships as well
as insurance companies and banks.
Using the geomarketing software
RegioGraph and the GfK Demographics
dataset, DBW provides these companies
with added value through the
efficient planning and implementation
of flyer distribution campaigns.
Example: Planning a media campaign
for a grocery story retailer
The management division of a grocery
retailer want to advertise in the vicinity
of a specific branch location. "The first
step involved management shading in
the catchment area of its branch location
on a paper map," explains project
coordinator Damir Begovic. "Management
then wanted to know how many
households existed in this catchment
area in order to determine the number
of flyers that should be printed. Often
only individual city sections or citycenter
postcodes are named as ideal
distribution areas for the flyers."
DBW proceeds as follows:
The first step involves importing and
visualizing customer locations on a
digital map using the geomarketing
software RegioGraph Planning. The
subsequent planning steps are carried
out on the basis of the software's integrated
digital country and street maps
as well as the data on potential such
as inhabitant and household figures.
In addition to GfK Purchasing Power
figures that reveal the disposable net
income of the population of a given
region (postcode, municipality or
urban/rural district), DBW uses further
GfK market and potential data
to precisely measure the concentration
of its customers intended target
groups. The GfK Demographics
dataset provides data at the level of
street segments, revealing the distribution
of household types (family
or single), age groups and income
brackets (from low-earners to top-
Marketing
earners). This enables Damir Begovic
to view not only regions and streets in
the software, but also the target group
distribution. Areas with an aboveaverage
concentration of the desired
target group can be color-coded in
RegioGraph for easier recognition. A
heat map effect can be applied to the
map that makes it possible to quickly
view detailed information on the target
group concentration on a region
by region basis.
Using RegioGraph to plan flyer
distribution areas for a grocery
retailer in Bochum, Germany.
11

Automobile
dealers also rely
on the regional
target group
analyses for their
marketing.
RegioGraph in practice
In the next step, Begovic uses Regio-
Graph to generate a catchment area
around his client's location that
encompasses a maximum of 10,000
households – the number that corresponds
to the target print run for
the flyer distribution. The software
then automatically recommends the
ideal regions and streets in which
the target group share (1-2 family
homes) is high. The relevant street
areas can be visualized with Regio-
Graph and exported in the form of a
street directory, complete with house
number ranges. The precise number
of required flyers can then be determined
for the given catchment area
and selected target group.
Should DBW's customers request
it, the final step involves planning
the actual distribution of the flyers.
Damir Begovic equitably divides the
catchment area containing 10,000
households among the flyer distributors:
At the press of a button, Regio-
Graph creates five distributor regions
that have been automatically optimized
according to workload and geographic
unity in order to facilitate as
efficient a distribution of the flyers as
possible. Finally, Begovic exports the
street lists for each distributor region
into an Excel file and sends it to the
distributors along with the requisite
number of fliers.
Begovic is happy about being able
to offer his customers this level of
customer service thanks to his use
RegioGraph: "We're able to help our
customers make optimal use of their
budget thanks to geomarketing and
the geographic analysis and determination
of target group potential.
The software's speed and transparent
results save our agency significant
time and money, which generates
benefits we are able to pass on to
our customers. I'm truly enthusiastic
about RegioGraph's ability to carry
out precision geographic analyses and
planning. I simply cannot imagine our
daily operations without RegioGraph
and the associated market data."
Additional advertising planning options
with RegioGraph and GfK market data
The identified target regions with a high target
group potential can be color-coded using any
of the almost 100 analysis and display options.
These options offer numerous additional finetuning
possibilities – for example, you can further
differentiate the target group potential of a given
region by categorizing and displaying it as "average",
"high" or "very high". This allows you to
improve the response rate for your marketing
campaigns by distributing material only in those
areas that fall into the "very high" target group
potential category.
This is an excellent strategy, because only prospective
customers with a high level of interest will
receive the company mailings. This saves resourc-
es and increases the likelihood of a favorable
response. You can also use RegioGraph to gauge
the success of an advertising campaign by calculating
the regional response rate. This is done
by comparing the results of point-of-sale surveys
with the target group potential. Companies can
use the results of these analyses to further refine
their target group definition, resulting in even
better response rates in the future.
Solar technology company ILIOTEC:
Bright prospects with RegioGraph
The solar technology pioneer based in Regensburg, Germany, has boosted
its sales success by geomarketing with RegioGraph. An interview
with Sonja Vogel, who works with RegioGraph in ILIOTEC's strategic
marketing division.
What is ILIOTEC's status at the
moment? What are you particularly
proud of?
ILIOTEC is one of Germany's first
TÜV-certified solar technology companies
and is a market leader in the
provision of comprehensive solar
technology solutions including installation,
maintenance and insurance.
Founded in 1998, the company now
has 220 employees and 7,000 customers.
We're particularly proud of the
recognition we've received, including
"Baveria's highest growth company"
and the "Grand Prize" award by the
Initiative Mittelstand.
Exterior of ILIOTEC‘s main office
How long have you been using
RegioGraph and for which tasks?
RegioGraph has been providing
support for our strategic marketing
division for about a year now. We
use RegioGraph to evaluate our five
business locations, plan the incor-
poration and work area of new sales
representatives and restructure our
sales territories. We create sales territory
boundaries and representative
assignments on the basis of purchasing
power and household figures.
RegioGraph also helps us fairly
divide advertising costs among our
locations: By geocoding the locations
of customer inquiries following
an advertising campaign, we can
immediately determine the locations
that especially profited from distributed
brochures.
Who are your target groups?
Our target groups range from end
consumers and farmers with private
installations to companies and public
authorities. By the middle of this year,
we plan to incorporate additional GfK
market datasets to help us precisely
locate our various target groups using
RegioGraph. The purchasing power
data included with RegioGraph convinced
us of the value of making decisions
based on objective information
rather than best guesses!
Which challenges did RegioGraph
help you solve?
We've profited most from the software's
ability to quickly and clearly illustrate
our sales territories. RegioGraph has
also played an important role in providing
support and clarification for staff
discussions as well as a measuring tool
for the efficiency of sales force members.
We also use RegioGraph to evalu-
Marketing
ate our marketing actions, such as
the places of residence of visitors to
our in-house trade fairs. This data is
already recorded in our CRM system,
so all I have to do is import it into
RegioGraph. Insightful map analyses
can then be produced in a very short
span of time.
What's your favorite
program function?
I most enjoy generating new sales
territories, such as the one recently
required for the construction of
our new site in Augsburg, Germany.
RegioGraph makes it possible to fairly
distribute and assign postcodes to our
sales representatives: We can ensure
that all created territories have equal
chances of success by using Regio-
Graph to optimize them according to
purchasing power index per inhabitant,
total purchasing power in millions
of euros or households with a net
monthly income greater than €2,000.
We can then carry out more targeted
marketing campaigns on the basis of
this information. I'm always amazed
at how RegioGraph can generate
tremendously valuable results with
a minimum investment of time and
energy. Also, I genuinely enjoy working
with the software!
Interviewee:
Sonja Vogel, Iliotec, Marketing
sonja.vogel@iliotec.de
13

14
Location planning and optimization
Streamlining a physicians’ insurance
consulting network with RegioGraph*
The Association of Financial Consultants for German Physicians (Deutsche
Ärzte Finanz) has been using RegioGraph since 2002 and RegioGraph*
since 2005 for the visualization of company data, in addition to the planning
and further development of service structures.
RegioGraph in practice
The Association of Financial Consultants
for German Physicians (AFCGP)
is one of the leading financial consultancies
in the area of established medical
professions and providers. The
association’s specialty is offering advice
and delivering insurance packages that
protect physicians (including dentists)
from personal and work-related risks.
The AFCGP is part of the AXA Group,
one of the largest insurance and financial
services bodies in Germany, with
approximately 340 agencies as of the
end of 2007. In 2003, we developed
a so-called “scoring model” in order
to measure and bring clarity to the
level of potential in a given region.
The scoring model takes into account
not only data such as the number of
target group members (employed and
resident doctors, dentists and graduates
in the fields of human medicine
and dentistry), but also inventory data
(e.g., number of customers per health
care provider). A notable advantage
of employing this benchmark is that
it allows us to assign new health insurance
agents a larger number of new
customers than to existing agents,
who already have their hands full with
a significant number of clients.
For the further development and
planning of the agents’ organizations,
we formulated scenarios aligned with
the longstanding business plans of the
sales division – e.g., “500 agents by
2015”. We use RegioGraph* in conjunction
with this scoring model to
plan new agency locations nationwide
and provide goals for the further
development of existing agents. Our
ongoing aim is to secure the sustained
and balanced growth of our agents’
organizations in their target group
market.
For the fine-tuning of specific regions,
we use RegioGraph* to visualize the
locations of consultants – e.g., with
symbols scaled according to turnover.
*New product name: “DISTRICT” now called “RegioGraph Planning” (page 2)
Unlike in the case of organizations
with permanently employed agents,
our freelance agents will not accept
rigid sales territory boundaries. This
is because potential customer agglomerations
tend to overlap, something
that is particularly the case in urban
areas (see illustration).
Service territories are very important
to the AFCGP: these areas are
the basis of allocating customer queries
within a given region to the local
agents. Also, our headquarters plan
regular customer visits based on these
defined service territories. And finally,
internet-based searches for consultants
also draw on the existing service
territory structure.
Our assessment of of five years of
potential-oriented location-planning
with RegioGraph*
The visualization of locations and service
areas with RegioGraph* has contributed
significantly to achieving objectivity
and acceptance in the location assessment
and development process. Equally
important in terms of transparency and
acceptance has been the option to plan
and harmonize the scoring models and
planning principles with the expressed
aims of executive sales managers. Service
territory planning is not a one-time
affair, but rather an ongoing process.
The procuring of up-to-date market and
company data as well as the ongoing
planning and development phases
require significant time and effort.
GfK market data
The best results are achieved when
service territories and locations can
be visualized directly on the computer
screen and then fine-tuned in dialogue
with the responsible sales managers
on an ad-hoc basis.
In addition to its invaluable role in
the above described processes, Regio-
Graph* has also proven indispensible
in the planning of overarching service
structures for the company leadership
and specialized consultants.
Author: Detlef Jahnke
Director of Development and
Cus tomer Management
detlef.jahnke@aerzte-finanz.de
“GfK data allows me to locate demand for my
product line. I can then target the regions with the
highest potential.”
GfK GeoMarketing
Thomas Ingert, Head of Sales
Realize your full turnover potential with GfK data!
Analyze your market position and the purchasing power for your products
Plan and optimize sales territories and marketing actions
Achieve greater efficiency, transparency and boost your turnover!
Additional information can be found at www.gfk-geomarketing.com/marketdata.

16 Location planning and optimization
Optimizing car dealership locations
based on potential levels
A mid-sized car dealership ordered a feasibility study on the turnover
potential of existing and potential locations. GfK GeoMarketing`s analyses
and scenarios provided a strategic roadmap for an important business
decision of the customer.
In order to strategically position their
sales centers, the automotive industry
prepares five-year plans that make
concrete recommendations regarding
local dealership locations and practices.
Our customer, the manager of a
sports car dealership, received a central
directive aimed at improving the
market share of his location. He was
advised by central management to
relocate the current dealership location
and establish a second in a more promising
area. However, the manager’s
bank wanted more assurances than
those provided by the strategic plan
generated by the company headquarters
before it would agree to finance
the second location. The manager therefore
decided to arrange for an analysis
of the economic sustainability of
the proposal. He wanted an objective
assessment of how much sales will
increase with a second location.
This is the scenario with which GfK
GeoMarketing was presented. GfK
GeoMarketing’s task was to demonstrate
through detailed analyses of the
relevant criteria the overall viability of
the new location proposal. The goal of
the study was to establish the maximum
possible turnover potential for
new cars resulting from an additional
car dealership location and the associated
greater market coverage.
In order to illustrate the turnover
density by region and the correspon-
RegioGraph in practice
ding customer origins, the car sales
reported by the German Federal
Motor Transport Authority and their
corresponding postcodes were compared
against the turnover data of the
car dealership. This led to some initial
insights. Next, in order to determine
the extent to which the car dealership
was tapping into the available potential
of the region, the sales numbers
were compared with the total number
of new cars on the market. This made
it possible to visually identify the core
sales region and, more importantly,
the postcode RegioGraph*s in which
elevated numbers of new cars had
entered the market despite no increase
in purchases from the car dealership
under study.
The next step was to establish the
extent to which car dealerships outside
of the core sales area were affecting
sales within the sales area. Using
its in-house sales territory planning
software application RegioGraph*,
GfK GeoMarketing then analyzed the
sales reach of neighboring car dealerships,
revealing areas of overlap with
regard to the boundaries of the sales
area under study. Using drive-time
analyses of the various postcode areas
under review, GfK GeoMarketing
determined that the residents of some
regions of the sales area could more
quickly and inexpensively access competitor
car dealerships. Additionally,
a GfK survey revealed that loyalty to
local vendors plays an important role
in consumers’ choices and that the
purchase of sports cars over the Internet
is a growing phenomenon.
The next step was to establish the
potential for sports car purchases in
the region in question and the various
factors affecting decisions to
buy. In addition to locating particularly
affluent households, postcode
RegioGraph*s with a high number of
luxury-class automobiles were identified
and illustrated on a map of the
sales region. With the help of Regio-
Graph*, it was possible to then reveal
the precise postcode areas in which a
high number of potential sports car
buyers resided.
The often-used marketing tool of the
portfolio analysis was then employed
to illustrate the postcode areas with
the highest untapped turnover potential.
A two-dimensional model was
generated in order to compare the
turnover density and turnover potential
– i.e., the so-called target group
index – and reveal the current market
situation.
A concrete identification of the potential
turnover level could not be determined
with the portfolio analysis
alone. Consequently, a technique of
analyzing turnover potential based
on the methods underpinning a specialized
regression analysis was developed.
This approach identified the
postcode areas with both high and
low sales potential. The sales area was
then split in order to make it possible
to associate the correct turnover
potential with each of the two sales
locations. This division was carried
out in a way that ensured that the
sales area locations minimized customer
travel distance. Market penetration
predictions were made for each
location based on numerous factors,
including customer loyalty to local
businesses, the existing level of market
penetration and anticipated future
turnover increases due to the forthcoming
introduction of a new car
model. The resulting annual projected
turnover volume for each location was
lower than that predicted by the central
automotive headquarters, which
called into question the soundness of
the proposal to open a new location
and resulted in advising the client to
re-examine the merits of the directive
from central management.
Thanks to the thorough analysis provided
by GfK GeoMarketing, the bank,
central management and manager of
the local car dealership were presented
with an objective basis from which to
make an informed business decision.
Author: Stefanie Torge
Retail and public authority division
Real Estate Consulting
GfK GeoMarketing.
s.torge@gfk-geomarketing.com

18
Controlling
Custom-tailored turnover planning
for the door provider BAWO with
RegioGraph and KapHoorn
The door supplier BAWO has been unlocking new possibilities through
the implementation of RegioGraph in combination with the ERP solution
"eEvolution" and the software "KapHoorn". The GfK GeoMarketing
partner EXSO. is responsible for linking these various software products
and adapting them to BAWO's specific needs.
RegioGraph in practice
"This is where we'll be sending our next
mailings," says Winfried Glaser, CEO
of Germany-based BAWO Türelemente
GmbH, as he points to a newly printed
color map of a region between Passau
and Hof. This area is more lightly
shaded than others – an indicator that
BAWO has a below-average level of
turnover in the region. "I'm confident
that there is demand for our cottage
doors in this area," says Glaser.
As a major provider of wooden doorrelated
products, BAWO has long
been helping home and apartment
owners customize the interior of their
residences according to their specific
tastes. BAWO's flexibility and customer-oriented
approach have made it
very successful: In 2006, the company
acquired a new, significantly larger
building in the commercial district of
Remagen, Germany. The lower floor
contains an exhibition space in which
EXSO. is currently working on a more seamless integration
of RegioGraph with KapHoorn. The goal is to be able
to generate a catalog of cartographic evaluations at the
press of a button and then – as was the case with the
Excel files produced with the KapHoorn software – automatically
distribute this map catalog each month to relevant
employees.
BAWO's doors are on display. BAWO's
high-quality products are regarded as
successful combinations of traditional
craftsmanship and modern production
techniques.
Inventory management enhancement
with RegioGraph
In September 2008, BAWO decided
to implement a combination of
RegioGraph and the reporting tool
KapHoorn, produced by the Düsseldorf-based
software provider EXSO.
business solutions GmbH. The aim
was to enhance the predictive capabilities
of the inventory management
software eEvolution, which the company
had been using for several years.
For any commercial entity, it's essential
to identify regional differences in its
active markets. Thanks to this software
solution, BAWO has discovered that
preferences for specific door types vary
significantly according to region.
As a first step, BAWO created a map
analyzing turnover according to postcode
areas (with each displayed area
colorcoded according to turnover
volume). and one analyzing customer
types according to the assigned sales
representatives. The cartographic illustrations
reveal not only regional turn-
Winfried Glaser,
CEO of BAWO GmbH
Magazine
over, but also regions in which unmet
demand likely exists as well as regions
that could benefit from more aggressive
sales and advertising campaigns.
The insights gained from RegioGraph
support not just BAWO, but also the
various commercial entities to which
it delivers its products. The knowledge
provided by the RegioGraph analyses
helps these businesses position
BAWO's products more successfully
among end consumers.
Before: Wall map. – After:
Cartographic reports distributed
automatically by e-mail
The results are generated in two
steps: First, the values from the ERP
solution eEvolution are created in an
Excel spreadsheet. This is done via the
reporting software KapHoorn, which
can create values according to postcode
area, customer-representative
assignments, customer group, product
group, etc. The next step entails
importing the data into RegioGraph.
Thanks to the standardization of this
process, these RegioGraph analyses
can be produced each month in just a
Magazine
03 | 2009
Magazine
03 | 2009
Free map
Image depicting Europe's retail
climate and a map showing
Germany's POS turnover for
women's clothing
Practice-oriented edition
Numerous user reports, practice-based
examples and tips
from the experts about using
geomarketing to succeed
amidst the current crisis
Retail climate forecast
GfK GeoMarketing reveals consumer trends
in Europe
03 | 2009
Free map
Image depicting Europe's retail
climate and a map showing
Germany's POS turnover for
women's clothing
Practice-oriented edition
Numerous user reports, practice-based
examples and tips
from the experts about using
geomarketing to succeed
amidst the current crisis
Retail climate forecast
GfK GeoMarketing reveals consumer trends
in Europe
Retail climate forecast
GfK GeoMarketing reveals consumer trends
in Europe
Free map
Image depicting Europe's retail
climate and a map showing
Germany's POS turnover for
women's clothing
Practice-oriented edition
Numerous user reports, practice-based
examples and tips
from the experts about using
geomarketing to succeed
amidst the current crisis
few minutes. Previously, BAWO used
printed maps to assign sales territories
to sales representatives.
Sales territories are transferred to
RegioGraph and then further refined.
Map extracts of sales territories are
automatically created. Diagrams
depicting turnover levels for specific
products can then be added to the
individual sales representative territories
illustrated on the RegioGraph
maps – a feature BAWO plans to make
use of in the future.
Helmut Klöckner, BAWO's head of
sales responsible for the implementation
of the software, is enthusiastic
about the solution: "The project was
completed in a very short period of
time and then successfully implement-
ed. We were helped by the fact that
EXSO. promptly delivered the most
important data results along with
some RegioGraph sample projects. In
working with RegioGraph on a daily
basis, we are becoming aware of ever
more analyses that we can easily carry
out thanks to the user-friendliness
Exhibition of BAWO doors.
and flexibility of the RegioGraph-
KapHoorn combination."
Author: Margarethe Chabrzyk
Project leader
EXSO. business solutions GmbH
m.chabrzyk@exso.de
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GfK GeoMarketing

20 Controlling
Success, meter-by-meter:
Home improvement store supplier ERÜ
uses RegioGraph for sales planning
As a result of the
uneven distribution
of the new home
improvement stores
and a varying
workload allocation
among external
sales force members,
it was necessary
to restructure the
company‘s territories.
NRW region
Turnover share: 35.8 %
Purchasing power share: 24.7 %*
Coast region
Turnover share: 7.1 %
Purchasing power share: 16.0 %*
Rhine-Main region
Turnover share: 15.3 %
Purchasing power share: 15.6 %*
Southwest region
Turnover share: 11.6 %
Purchasing power share: 8.8 %*
RegioGraph in practice
Ernst Rüsch GmbH (ERÜ) is a manufacturer of skirting boards, which it
sells in home improvement stores. ERÜ has been using RegioGraph for
years for sales controlling and currently for the integration of new locations
resulting from a merging of home improvement store chains.
Companies that manage to get their
products stocked by the large home
improvement stores can celebrate a
significant milestone in their efforts
to acquire more customers. The midsized
company ERÜ from the southern
German town of Weil am Rhein has
achieved renown thanks to its patented
skirting board fixing system.
It requires ongoing customer care
and market optimization in order to
achieve, sustain and further enhance
this position. In addition to paying
close attention to consumer demand,
it‘s essential to optimize the workflow
at the company‘s various sales
locations. This involves preparing
East region
Turnover share: 14.1 %
Purchasing power share: 11.7 %*
Bavaria region
Turnover share: 11.2 %
Purchasing power share: 18.5 %*
Berlin region
Turnover share: 5.0 %
Purchasing power share: 4.6 %*
Existing home improve-
ment store locations
New home improvement
store locations
External sales force regions
*) Regional share of purchasing
power for interior fittings
(Germany = 100%)
products for shipment on a precise
schedule, presenting them in the most
favorable way possible and creating
convincing marketing material. A
mere seven-member sales team performs
all of these
tasks for ERÜ, "It was essential to integrate
Germany-wide.
around 100 new market
Only by working
extremely locations into our sales struc-
efficiently can ture as soon as possible."
this workload
be handled by such a small team.
One of many methods employed by
the team is the effi-cient organization
of regular visits to sales locations in
order to minimize driving time. Additionally,
sales territories are view-ed as
distinctive regions, each with a unique
purchasing power situation and
consumer preferences.
The company has been using Regio-
Graph for almost 10 years to achieve
this impressive level of success and
efficiency. RegioGraph has played a
central role in geographically analyzing
and evaluating the current
market position as well as developing
strategies for further market
optimization.
In addition to these ongoing evaluative
and planning tasks, ERÜ was
faced with the challenge of organizing
around 100 additional sales loca-
NRW region
210 total market sites
Rhine-Main region
102 total market sites
Coast region
70 total market sites
Southwest region
106 total market sites
East region
142 total market sites
Bayern region
110 total market sites
Berlin region
71 total market sites
A sales territory optimization after the integration of additional
market locations. The previous territory structure is
shown in the background for comparison purposes.
tions as a result of the merging of two
home improvement store chains. In
short, the company had to adjust its
sales structure within a short span of
time – a major challenge considering
the many important factors that had
to be taken into account. Also, the distribution
of the new home improvement
store locations as well as regional
purchasing power and associated
turnover expectations differed significantly
from region to region.
RegioGraph allowed the company to
quickly and successfully address this
challenge, despite its complexity. This
was achieved in the following steps:
1. In importing the additional locations,
it soon became clear that there
were branch locations that required
attention, particularly in Westphalia
and the southern regions of the new
federal states. This demonstrated the
need to adjust the sales territory sizes.
2. Existing home improvement store
locations, their associated turnover
and product-specific purchasing
power for interior fittings were all
taken into account. Data was prepared
and summed at the level of
postcodes, providing a source of reference
for each sales territory, facilitating
their subsequent evaluation and
planning.
3. As no turnover data was available
for the new locations, the number of
home improvement stores in each
territory was the primary planning
criterion used for optimizing the
sales territories. Additional factors
taken into account include the
purchasing power, territory size and
accessibility.
All of the steps necessary to complete
these tasks are easy to carry
out with RegioGraph. „RegioGraph‘s
immense advantage is its transparency
and ability to trace every implemented
change for the benefit of all
involved,“ says Norbert Rüsch, head
of ERÜ‘s commercial division.
An enthusiastic RegioGraph user,
Rüsch explains why this geomarketing
solution works so well for him:
„Preconditions for the successful
implementation of geomarkeing into
our sales planning include compatibility
with all existing IT resources, upto-date
digital maps and naturally a
software interface that doesn‘t require
prior knowledge. These qualities are
essential for a mid-sized company in
which sales territory planning is carried
out by employees who are also
responsible for a wide range of other
daily tasks. RegioGraph has been and
continues to be the perfect solution
for us – so much so that sales territory
planning without geomarketing
has become inconceivable!“

22 Logistics
RegioGraph for transportation logistics
RegioGraph is successfully used as a visualization instrument for the
optimization and simulation of transport networks. A user report from
V-Research and the Austria-based logistics company Gebrüder Weiss
shows how.
An example of
a RegioGraph
map generated
as part of
a simulated
study on
Slovakia.
RegioGraph in practice
Gebrüder Weiss is Austria‘s largest
privately owned shipping and logistics
company. The services offered by this
international transport and logistics
company encompass logistics solutions,
warehousing, consultancy, IT solutions
as well as land, sea and air cargo.
The planning and optimization of
transport networks constitute quite
a challenge given the global reach of
Gebrüder Weiss‘ services. The checking
of transport structures and processes
is a daily aspect of the company‘s
operations. Reasons for new evaluations
of the existing transport network
include, among others:
a new development in the
transport network,
a modification in the structure of the
transport network to be analyzed,
the take-over of an existing network
and its integration into the
company‘s broader structures.
Gebrüder Weiss developed a software
platform in collaboration with
V-Research, a Vorarlberg-based independent
center for industrial research
and development. The software allowed
the company to evaluate and
simulate various strategic questions
and scenarios as a means of simplifying
decision-making processes.
A key aspect of the software is the
visualization of data with the help of
RegioGraph. RegioGraph runs in the
background of the main application
and delivers fully automated maps that
illustrate the relevant data. The basis
for the association of the company data
with the maps is GfK GeoMarketing‘s
postcode data. With the click of a button,
data is imported into RegioGraph
and then associated with the relevant
postcodes so that additional calculations
and analyses can be carried
out within RegioGraph. The resulting
maps are then created, formatted and
exported back into the main application.
Naturally, all of the RegioGraph
map projects can be accessed later for
further editing.
In this manner, information on existing
locations, main avenues of transport
and expected shipping volumes
can be made transparent by visualizing
it on high-quality digital maps.
Any actual or anticipated changes to
the structure of the existing transport
network can be simulated, compared
and illustrated on maps.
V-Research specializes in new technologies, creative ideas and technical
innovations. V-Research promotes the success of its clients by offering innovative
products and processes.
GfK GeoMarketing
GfK Map Webshop
The high quality of the data included
in GfK GeoMarketing‘s software solution
RegioGraph plays a decisive role
in ensuring that all such analyses and
simulations are accurately associated
with and visualized on the maps.
RegioGraph‘s programming interface
for Microsoft‘s .NET technology
ensures a fluid interaction between the
simulation software and RegioGraph.
V-Research is currently developing software
functions that allow users to visualize
logistics networks that span multiple
national boundaries as well as maps in
the area of delivery service logistics.
Author: Rainer Frick
Large-format wall maps
online at the GfK Map Webshop
Wide assortment for all of Europe
Print-quality editions in many formats
V-Research in collaboration with
Gebrüder Weiss
GfK Purchasing Power map, industry map and much more
Order now at:
> www.gfk.mapshop.info
Order now
online!

24 Logistics
Research 25
Synthetic grass manufacturer enjoys
record growth thanks to RegioGraph
TigerTurf International manufactures high-quality synthetic turf for the
sports and leisure industries. TigerTurf is one of the largest companies in
this sector, with a parent company (Astrograss) in Auckland (founded in
1980), an assembly plant in Melbourne and a production site in Kidderminster
(UK), which opened in 2000.
RegioGraph in practice
Whether for football, hockey, tennis or
a wide variety of other sports, a customized
synthetic turf solution is available.
TigerTurf supplies its products to
sports facilities across the globe.
Challenging climatic conditions, lack
of space and increasing approval of
synthetic turf usage from regulatory
bodies such as FIFA and UEFA have
resulted in a surge in demand for
TigerTurf products around the world.
The challenge of the synthetic turf
market lies in documenting and visualizing
the virtually endless array of
sports facilities in our areas of operation.
Records of the statistical allocation
of our products in their respective
countries of use play an important
role -- along with other factors -- in
maintaining a close eye on the market
and region-specific demand and
potential levels. It‘s also very important
to keep track of the competition.
Additionally, due to its rapid growth,
TigerTurf has to cope with large geographic
and time differences among
its widely distributed clients.
The geomarketing software application
RegioGraph offers sophisticated
solutions to all these problems. Thanks
to the maps produced by the program,
the company was able to achieve an
unprecedented level of transparency
in its internal communications. RegioGraph
also provides a reliable and
objective foundation for making more
informed business decisions. For example,
when we compare past sales in a
given region to the current number of
sport facilities in the same region, the
extent of untapped potential becomes
immediately apparent.
Other things about RegioGraph that
greatly appeal to TigerTurf include its
availability in English and free access
to a RegioGraph support hotline.
„The great advantage of RegioGraph
is that, thanks to the detailed information
from virtually every country
in the world already contained within
the application, market development
and potential levels can be visualized
very quickly and easily,“ says Martina
Kass, TigerTurf Export Manager
for European sales. „The maps, which
management at first derided as mere
‚toys,‘ soon became an important
decision-making instrument within
the company.“
Visit TigerTurf at:
> www.tigerturf.co.uk
Tufts University develops a hunger relief
program using map analyses
A study carried out by Boston-based Tufts University delivers new information on under-
nourished children in Panama, Ecuador and the Dominican Republic. GfK GeoMarketing
donated digital maps for the cartographic analyses underpinning the project.
Reducing poverty and hunger is one
of the United Nation’s most important
humanitarian goals. Sadly, children
are the most common sufferers of malnourishment.
This lack of nutrition
is a key factor in numerous illnesses,
retarded cognitive development and
child mortality rates.
One of the preliminary steps in eliminating
hunger is to identify the precise
locations where the problem is most
pervasive. The Gerald J. and Dorothy
R. Friedman School of Nutrition
Science and Policy at Tufts University
in Boston, USA is a leading force
in the research of malnourishment as
well as the development of innovative
approaches to combating the problem.
In association with the United Nations’
World Food Programme and the
governments of Panama, Ecuador and
the Dominican Republic, the Tufts
hunger-mapping team developed a
groundbreaking method for measuring
the scale of the hunger problem
by identifying the number of affected
children at the microgeographic level.
The aim of this initiative was to give
governments in these areas the ability
to channel and distribute their resources
as efficiently as possible. The project
identified the characteristics of
the most affected areas (e.g. urban vs.
rural, mountainous vs. coastal, etc.),
allowing speculations regarding the
region-specific causes of the malady.
The cartographic representation of
these areas contributed toward a better
understanding of the exact parameters
of the problem. Thanks to the intuitive
and impact-generating nature of the
maps produced by the project, greater
awareness was raised among researchers,
policy-makers and the general
public, inciting renewed efforts to alleviate
the situation.
The so-called “hunger maps” of
Panama, Ecuador and the Dominican
Republic were created used ESRI’s
ArcGIS along with a special analytic
approach known as “small area estimations”.
This made it possible
to take data from a representative
study covering a broad
region and combine it with
the team’s own research data
as well as socio-demographic
information in order to create
regional profiles and
prognoses.
GfK GeoMarketing provided
the research team with its
digital maps of Panama, which
contained boundaries of the country’s
administrative units as well as its larger
cities. Among other things, these maps
helped the team determine the distances
between metropolitan areas and various
villages and communities where the
problem was most acute.
Most governments collect information
on the nutritional situation in their
countries by carrying out nationwide
studies that evaluate a wide range of
factors, including geographic, sociodemographic,
socio-economic and
cultural conditions. By associating this
data with detailed geographic information,
it’s possible to make much more
accurate predictions regarding the likelihood
of malnutrition in certain areas.
The Tufts approach cast a broad net
by taking additional key factors into
consideration, including the degree of
agricultural land usage, climate, access
to medical care and education as well as
the accessibility of economic centers.
The governments who participated in the
project are using Tufts University‘s hunger-distribution
maps and assessment
methodology as a means of optimizing
their national nutritional programs.
Author: James Wirth
More information on the study and
Tufts University‘s hunger-mapping
team at ipwirth@gmail.com.
Results of the study can be viewed at
www.nutrition.tufts.edu

26 Research
Figure 1: Average
frequency of
damage for the
insurance class
of agriculture for
December over
the period 1992-
2004 without the
“Lothar” storm.
Damage frequency
is the number of
damage cases per
1,000 policies with
storm insurance
coverage.
RegioGraph in practice
Storm damage predictions for
insurance companies – an analysis
Silke Peine, a student of applied environmental studies at the Univer-
sity of Trier, analyzed storm damage in Germany for her degree thesis.
Based on postal code maps from GfK GeoMarketing, she identified regions
with especially high storm risk.
The storm “Lothar“, on December 26,
1999, lashed out with wind speeds
never seen before in Germany and left
a lasting impression not only on the
slopes of the Black Forest, but also on
insurance companies. Insurance companies
have a great interest in predicting
storm damage and identifying
prone areas as precisely as possible.
As a master student of Applied Environmental
Studies at the University of
Trier, I analyzed storm damage over
the past 15 years in Germany, combining
scientific and insurance interests.
The title of my thesis is: “Spatial analysis
of storms in Germany and effects
of damage on a direct insurance com-
pany“. In addition, I researched the
time trends for very windy days and
their location distribution. In large
part, my research involved a spatial
analysis of insurance damages caused
by storms. I used a geographic information
system to help me. There was
data available on insurance damages
at the 3-digit postal code level, so that
digital postal code maps of Germany
were needed as starting-point material.
GfK GeoMarketing kindly provided
me with 2-digit and 3-digit postal code
maps for my research. This map basis
made it possible for me to perform a
spatial analysis of the available data.
Figure 2: Damage
frequency in % of
the insurance class
residential buildings
for the “Lothar”
storm on December
26, 1999. Also
shown are top wind
speeds measured in
m/s, Source: DWD.
Figure 3: Damage
rate calculated (in
%) of insurance
class agriculture
and top wind
speeds given for
the storm scenario
calculated.
Autumn is stormiest
season in Germany
Thanks to the 3-digit postal code maps,
I could identify different focal points
with above-average storm damage
in Germany. In investigating the distribution
of storm damage across
seasons, it became clear that March is
the main time for storms in northern
Germany and in the Rhineland-Palatinate.
There is less storm damage in
the southern part of Germany. During
summer months, a higher storm frequency
can be found in Eastern Germany,
in the “Mittelgebirge“ region
and in the eastern areas of the Alps.
In October there is a higher incidence
of storm damage for the whole of Germany.
The statistics of storm damages
over the period from 1991 to 2005
were strongly influenced by the storm
“Lothar“ in December 1999. Without
“Lothar“, the average distribution of
storms would show a higher incidence
of storm damage in the northern part
of Germany (see Figure 1).
The 12 largest storm events of the last
15 years show a clear relationship between
the extent of damage and the
top wind speeds measured. The wind
fields measured directly correlate to
the damages identified by insurance
company (see Figure 2).
Maximal damage scenario – if there
were “Lothars“ across Germany
In order to provide insurance companies
with an orientation for the scope
of damages by a possible major storm
event, a model for calculating the possible
damage rate was created. The
storm model was based on the relationship
between the 98th percentile of
maximum wind speeds experienced
in the “Lothar“ storm and the ensuing
damages in the agricultural class of
insurances. The basis of the scenario
presents the top winds speeds measured
in southern Germany during
“Lothar“, distributed across the whole
of Germany. Figure 3 shows the possible
damage distribution for the insurance
class agriculture based on 2-digit
postal code regions.
On the digital postal code maps, it was
possible to provide an overview of the
spatial distribution of storm damage.
Based on a comparison of values collected
over the years, it was possible
to make general predictions on the
probability of storm events in terms
of time and region. Analyses and findings
like those from my thesis are
interesting for insurance companies in
calculating insurance amounts. In the
end, all insurance holders can profit
from fair premiums and appropriate
damage payments.
Author: Silke Peine
Environmental Studies M.A.
silke.peine@web.de

28
Research
ZEW Mannheim – A Study of High-
Tech-Company Start-Ups in Germany
Georg Metzger of the ZEW, German Centre for European Economic
Research, uses GfK GeoMarketing maps to record the regional distribution
of company start-ups in the high-tech industry.
Figure 1:
Company startups
in technology-intensive
processing sectors
of industry
at the municipal
district level
(2001-2004).
Source: Map
basis of GfK
GeoMarketing;
Data from ZEW
Start-Up Panel.
RegioGraph in practice
The ZEW is a non-profit economic
research institute founded in 1990 on
the initiative of the German federal
state of Baden-Württemberg, business
companies and the University of Mannheim.
The ZEW is active in the field
of applied empirical business research.
Its central tasks are business research,
political economic consulting and
knowledge transfer.
The ZEW start-up report is representative
of numerous reports available
from the ZEW. The ZEW start-up
report covers the start-up situation in
Germany every 6 months and presents
new ZEW results in start-up research.
ZEW regularly uses map material
by GfK GeoMarketing to illustrate
regional differences in the start-up situation.
With the help of cartographical
presentation, regional differences
in the levels of start-ups can be shown
in a detailed and impressive manner.
Map presentations were also used
for the latest ZEW study “High-Tech
Start-ups in Germany“. The study was
conducted by ZEW at the request of
the business magazine “impulse“ and
Microsoft Germany. One part of the
study concerned the progress of startup
activity in technology and scienceintensive
sectors of business between
1995 and 2005; here the regional distribution
of new companies also was
observed.
The incidence of start-ups across Germany
varies greatly by region. In the
high-tech sector in particular, there
are so-called cluster formations, e.g.
a concentration of start-ups in certain
regions. Clusters often develop in
areas of agglomeration where major
companies are located; this favors the
establishment of supplier companies.
In Germany, an especially high concentration
of technology-oriented
start-ups can be found in the regions
of Hamburg, Berlin, Rhine/Ruhr,
Rhine/Main, Rhine/Neckar, Stuttgart
and Munich.
Figure 2: Concentration of company start-ups in technology-intensive processing sectors of
industry at the municipal district level (2001-2004). This map depicts diversions from the national
average of start-up concentration (start-ups per 10,000 workers) for each district. The lighter the
color, the more below-average; the darker the color, the more above-average. Source: Map basis
of GfK GeoMarketing; Data from ZEW Start-Up Panel.
Observing the incidence of start-ups
based on the absolute number of startups
ignores the fact that the potential for
start-ups in these cluster areas is higher
as a rule simply because more people
live and work there. In order to abstract
from the population size, a standardized
measure of start-up activity must
be included. A suitable indicator is the
intensity of start-ups (start-ups per
10,000 workers). This allows a regional
comparison of start-ups independent
of the number of potential founders,
i.e. Inhabitants of a region; thus, it is a
measure of the inhabitants` tendency
to establish a company.
There is a south-north slope and a
west-east slope when observing the
technology and science-intensive
sectors of industry. The number of
all high-tech areas has an aboveaverage
level in Bavaria and Baden-
Württemberg. With the exception
of high-value technology, this also
applies for Hesse and for Thuringia
with respect to technology-intensive
sectors in the processing industries.
Below-average start-up intensity in
the high-tech sector can be seen primarily
in Mecklenburg-Vorpommern
and Saxony-Anhalt.
As can be seen by comparing the figures,
regions with a high concentration
of start-ups are not necessarily
identical with regions that demonstrate
a high number of start-ups in
absolute terms. Regarding top technology,
areas such as Berlin and the
Rhine/Ruhr appear less as clusters, if
the level of concentration instead of
the number of start-ups in a region is
observed. By contrast, an above-average
level of start-up concentration
can be found in the Lake Constance
region and the technology region of
Karlsruhe in Southwest Germany.
For the high quality technology sector
there are similar findings.

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