Patent ID: 8055547

Claim:
A method performed by an electronic data machine for forecasting sales at potential new sites for one or more new retail units, said method comprising: collecting a plurality of information comprising a number of variables for a number of existing sites with retail units, the variables including non-advertising variables that are specific to a number of existing retail units, a dummy variable representing no or constant advertising as target rating points, and a non-linear advertising allocation variable using target rating points as a measure of advertising, wherein the coefficient for the dummy variable and the coefficient for the non-linear advertising allocation variable are adjusted to not exceed a maximum value; performing regression of sales for each existing site over a selected period of time on the site variables, the regression further comprising: holding constant the effect of advertising across the existing sites during the regression by using the dummy variable and the non-linear advertising allocation variable to show the relationship between sales and the non-advertising variables independent of the effect of advertising for each existing site, wherein the regression generates coefficients for each variable; comparing by the electronic data machine the relationship between sales and the non-advertising variables between the number of existing sites to show which existing sites based on the non-advertising variables and independent of advertising, are more profitable for site selection; forecasting by the electronic data machine advertising-independent profitability of the potential new sites by using the coefficients determined in the regression; ranking by the electronic data machine the potential new sites in terms of profitability based on the forecasting; and selecting one or more of the potential new sites as the new site for the new retail unit.