Because They Are in Areas With Low Population Density
A Final customer buying from an intermediary of the product The Final customer is the one who makes the final decision on what product to buy and from which supplier to buy it. Most consumer products, and many industrial products, reach Final customers through Intermediaries.
Acquire Steps: Acquire steps include all activities the customer completes preceding the purchase of the product. These steps include the customer's efforts needed to identify and evaluate Intermediaries and travel to the Intermediary location.
B. Needs to avoid sources of anxiety
2. Limitations set by time: Segment customers according to the causes of the limitations set by time
b. Delays related to location: Identify characteristics related to the location of purchase or use that separate one group of customers from others
2. Distance from the company, from the product, from competition or from some other preferred location.
b. Distance from competition
1. Because they are in areas with low population density
|1||5412||1986||Around 70% of Casey's stores are in towns with populations of 5,000 or less. Most of these lie in the farm belt, where many general stores have closed up, making Casey's the only store in town. Casey's earns an after-tax margin of 2.2%.|
|2||7841||2001||The Movie Gallery mostly has stores in rural or secondary markets. It doesn't even bother to compete against Blockbuster and Hollywood, the top two players in the video rental industry. Movie Gallery opens stores in towns with 5,000 to 20,000 people.|
|3||5943||2002||SPC Office Products tries to open stores 120 miles away from any Staples or Home Depot. It still, however, has to compete with their catalog and online sales.|
|4||5331||1999||While Sears and other renowned merchants plunked their big stores in the cities and the suburbs, Wal-Mart saw its opportunity in rural America. Wal-Mart chose its sites skillfully, by buzzing an airplane low over the crossroads between small towns.|
|5||5331||1999||Dollar General isn't hesitant to locate next to a Wal-Mart. Its earnings grew 26% to $182 million last year and its net profit is 5.7% compared to Wal-Mart's 3.2%. Dollar General puts 6,000 sq. ft stores in towns with about 15,000 people.|
|6||8062||2002||Health Management is a hospital chain that owns and operates 43 sites in small towns. It is the industry's largest for-profit operator in non-urban areas with sales of $2 billion.|
|7||5941||2002||Hibbett's sales rose in the fourth quarter by 11.6%. Its small-market strategy is based on bringing top sports brands to small towns. Most of its stores serve towns in the countryside.|
|8||7841||2002||Movie Gallery is the nation's #3 video-rental retailer and it focuses on secondary markets: small towns and rural areas that have between 5,000-30,000 residents.|
|9||5941||1996||HIBB's relative market position is more secure than many better known players due to its small market emphasis.|
|10||5311||1999||Duckwall-Alco Stores' strategy is to run small stores in small markets without competition from larger discount chains.|