*This project was originally delivered by Gamma, now part of KatRisk.
Overview
KatRisk* helped a global automobile manufacturer and distributor improve target setting across its Irish retail network by introducing a more rational and unbiased allocation model. Using historical sales data and market potential analysis, KatRisk developed an approach to distribute a pre-determined national sales target more fairly across dealer locations based on the characteristics of each dealer’s geographic area of influence.
The Challenge
The client needed a more impartial way to set sales targets across its dealer network. Existing approaches can often be shaped by perception, negotiation, or historical precedent, making it difficult to ensure targets are seen as fair and achievable across all locations.
To improve confidence in the process, the client wanted a data-led model that could allocate national targets objectively, while taking into account the different levels of market opportunity available to each dealer.
The Solution
KatRisk worked with the client to develop a custom target-setting model based on three years of sales data and relevant market information.
The approach involved analysing geographic sales patterns and comparing them with available market data to understand the factors influencing vehicle demand in each area. From this analysis, KatRisk designed a model that identified the criteria driving sales potential and mapped how demand flowed to individual dealer locations.
Using these insights, the model was then used to allocate vehicle sales targets across the dealer network in a way that was consistent, evidence-based, and aligned with local market potential.
The Results
The resulting model gave the client a more structured and impartial way to set targets across its retail network. It provided a fairer basis for allocating sales expectations between dealers and improved transparency in the target-setting process.
Feedback from the client showed that the model was considered both accurate and credible, and that the approach was widely accepted as fair and impartial by dealer franchisees.
