Strategic Management

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c. IDENTIFY MARKET SEGMENT:

a 1. DEMOGRAPHICS

Though the shop does not limit the age of the customers, most of the customers ranges from 16 to 40 years old. The group also noticed that there are call center agents as part of the customers. They usually come to the Smart Shop in big groups. Aside from that, the group noticed that there are travellers who are part of the walk in customers of the Smart Shop; foreigners most especially. There are also bikers who stay in the shop for almost an hour to have a drink before they continue on their biking.

b 1. BUYING BEHAVIOR PATTERNS

The customers figuring out what zip codes their customers are in.

Customer surveys and other studies can also help explain why buyers purchased what they did and what their experiences were with a business. They are thinking about the different types of things you want or need to eventually buy, how you are going to find the best ones at the best price, and where and how will you buy them. Meanwhile, there are other products you have already purchased that you’re evaluating. Some might be better than others.

c 1. PSYCHOGRAPHIC SEGMENTATION VARIABLE

As we observe, the people going in and out of the shop are usually in the middle and/or high class of the society. They usually come in groups. We target customers based on their interest or experience with your company or products.

d 1. LIFESTYLE VARIABLES

Lifestyle is a person’s pattern of living as expressed in this or her psychographics. It involves measuring consumers interest which leads to buying behavior. Lifestyle captures something more than the person’s social class or personality. It profiles a person’s whole pattern of acting and interchanging consumer values and how they influence buying behavior.

d. BUSINESS TO BUSINESS

a 1. TYPE OF CUSTOMER

This 16-40 age group is more ethnically and racially diverse than older generations and is more educated. They are frequently characterized as being immersed in digital technology via their mobile devices, proficient multitasks, and constantly on-the-go. Social media is weaved into all aspects of their lives.

b 1. CUSTOMER CHANNEL

Smart shop have an unmatched speed of transaction: The average time it takes a customer to walk in, purchase an item and depart is between 3 to 4 minutes. With falling revenues from fuels and tobacco products, foodservice sales are increasingly becoming convenience stores’ most profitable category. The consumers are embracing convenience stores like never before.

e. Market Potential/To Develop

For the growing market for the Smart Shop, since the shop is surrounded by 3 terminals (Ceres terminal, V-hire terminal and Easy ride terminals) there can be said almost always at the night time when other near stores and shops are closed there are goers and customers of those 3 terminals especially Ceres. This simply means people would visit Smart Shop unwillingly by being not able to find any comparison target to choose. So, Smart Shop should hold and tie tight the customers who use the terminals by thinking and research what kind of product they usually use and in need and offering what they need and want.

Smart Shop is known as a good establishment and place for the most of the liquor drinkers in town already. And a security in night time is secured and Wi-Fi internet access is freely offered to any customers. The shop should focus on statement “already” and the group was able to find levelling-off of Smart Shop there. Dumaguete City is capital city of Negros Oriental but cannot be said big as Bacolod City or Cebu City which means the customers may be left over the shop easily when they have to by some reason such as mills, friends’ suggestions, events or etc. And what was worse is that there are gradually increasing other convenience stores such as Seven Eleven. This is also one of declining part of Smart Shop.

To develop all of things mentioned above, the group suggests Smart Shop innovatively offer things that can gather and collect potential customers’ attentions. As observed, the size of the place would not be able to expand more from now so make a research to know what customers want from Smart Shop and what other competitors do not have. The shop should better fight with competitors with unique and remarkable contents that nobody has.

III. EXTERNAL AND INTERNAL ANALYSIS

- OVER-ALL AND FUNCTIONAL AREAS

Smart shop is a convenience store which offers variety of products, it is open 24/7 and is located beside a gasoline station. Products offered are Groceries, Toiletries, Tobacco products, Magazines and newspapers, Alcoholic and non-alcoholic drinks (Smart shop Specializes in offering alcoholic beverages), Imported candies and chocolates, Dairy product, Dry and Canned goods. Inside the store has a space supposedly used for Slurpee or coffee but they don’t serve it anymore. There were about 10 tables and lots of chairs inside and outside the store for the purpose of accommodating customers especially during night time and weekends. They also have a parking space for motorcycles and four wheeled vehicles.

The establishment has 1 manager, 1 office staff, 3 cashiers (for different shifts), 1 janitor. They also have a security guard from a security agency and accountant from an accounting firm.

b. SWOT ANALYSIS

INTERNAL

EXTERNAL

STRENGTH

- The accessibility of the place

- Unique products compared to other Convenience Stores

- Good ambiance for most customers

- The parking areas are not on the sides of the street/road

- There is enough security in the area.

- There is Wi-Fi, air-condition units and music

- Tables, chairs and canopies are set ready for the customers who wish to stay outside the shop

- They serve 24-hours every Fridays and Saturdays and closes by 2am during Mondays. It will open again