A business oportunityPaying attention

Manuel de Damas Morales

MdM

A business opportunity for three

stores in La Granja, Segovia,

(Spain)

Market segmentation and the right client target

MdM

MdM

Key success factors in retail business

Location and type of potential clients

Fit between product range and client target.

Type of sale: daily need vs. Impulse purchase.

MdM

LA GRANJA

Location and potential markets

1. Permanent Population: 5.702

1. Weekend and term holidays population: high income people from Madrid, 700. “The Madrilenes”

1. 6 million people at 80 km/one hour drive/27 min by train in Madrid

1. Tourist destination together with Segovia at 11 km: 150.000 visitors per year.

MdM

The stores (1)

1.A delicatessen shop.

2. A library.

3.An antiques shop.

All three target the Madrilenes

All three are located in Madrid visitors city sector.

All three belong to madrilenes

The stores (2)

MdM

MdM

The problem

The target clientele are an unstable and small market.

• Only weekend and term holidays.

• Increasingly mobile

MdM

But there are other

clear market segments

1. The Madrilenes: Holidays visitors from Madrid.(High income traditional families)

+2.Local inhabitants: industry, timber and service workers plus public servants

3.“ One time” visitors;Tourists from all over the world.

MdM

The opportunit

y

Target all three markets at

once

your need

MdM

“Adapt the business to the more stable local market and the larger tourist market.”

MdM

Difficulties:1. Social confrontation beetween the local

inhabitant segment and the Madrilenes (quasi emotional), beyond needs satisfaction of each.

2. Price of products is not the issue in this type of store.

Mdm

our solution

1.Associate with a local partner with good reputation among the permanent population.

2.Include a social responsability concept in the stores, which would benefit the entire population including the two groups in opposition.

how toimplement

Incorporate organic products in the delicatessen shop.

Create cine-clubs for adults and children in the downstairs zone of the library, currently underutilised.

Include imported products from Asia and Africa with the fair trade warranty in the antiques shop

I

MdM

results

Increased sales and balance between economy and ecosystem.

Awareness about social disruption and progress in social stability.

Increased visibility of La Granja, both its history and its youth and future.

MdM