Part A:
Analysis of the Disba’s Marketplace
Analysis of the Disba’s marketplace involves analyzing both the macro and micro environments of Disba S.A. The internal environment is composed of factors that are within the company itself and thus the company has some level of control over them. One of the internal environment factors that are relevant for Disba is the competition. Disba faces a high level of competition from other large chains present in Barcelona that are also growing rapidly. For instance, Caprabo has 50 supermarkets in Barcelona. Additionally, Valvi is another chain that is growing fast after its arrival from Gerona. Furthermore, Disba also faces severe competition from Dia, which is a highly standardized chain modeled on the “Aldi” of Germany.
The other internal environment factor that is relevant for Disba is the customers. Disba serves a wide range of customers from evolving mix of women to male shoppers. The company serves older shoppers who are generally traditional housewives who take their time in moving from one store to another to find the lowest prices. Disba also serves younger female clients who are working. This group of clients often makes their purchases after work, and they prefer finding a variety of goods because their shopping time is limited and thus they do not visit many stores. Lastly, Disba has also male shoppers who are very and are generally single.
The macro environment on the other is composed of factors that are not close to the company, and thus, the company has no control over them. One of the macro environmental factors that affect Disba is the legal factors. The company has to conduct its business according to the Spanish legislations regarding business operations. Another macro environment factor affecting Disba is the political factors. The politics of Spain greatly affects how Disba operates a business in Spain. Also, Disba is affected by the economy of Spain particularly in areas where it operates such as Cartegena, Albacete, Balearic, and Castellon. The company has to endure both good and bad economic times such as inflation, recession, and VAT changes. Moreover, Disba is affected by technological changes such as the internet that have changed how companies are doing business.
Based on the information that is available in the case, there are mainly four consumer segments that can be identified. Based on gender, there are two distinct consumer segments namely the males and females. However, based on age, there are also two separate consumer segments namely the older female shoppers and younger female shoppers. Whereas older female shoppers are generally housewives who take their time in going from one store to another to find the lowest price, the younger female shoppers often work during the day and thus make their purchases after work. Therefore, the working women prefer finding a variety of goods because their shopping time is limited and they do not want to visit several stores.
Consumer Segment to Target
Among the four consumer segments identified above, the best for targeting by Disba can be obtained by performing a SWOT analysis of the company as follows.
Strengths of Disba
• It has many stores (approximately over 150 stores.
• It charges relatively good prices.
• It stores a wide range of products.
Weaknesses of Disba
• Charges relatively higher prices compared to Dia S.A.
• High rates of sales drop.
Opportunities of Disba
• More spaces for opening other stores outside Barcelona.
• Adding more product lines into its stores.
Threats of Disba
• High level of competition particularly from Dia, Caprabo, and Valvi.
• Relatively low prices being charged by competitors, especially Dia.
Part B:
Value Proposition and Positioning for Disba
The value proposition for Disba should be providing a wide range of products under one roof. The target customers of Disba will prefer this value proposition over competing ones since the Disba’s competitors such as Dia do not have the ability to store a wide range of products like Disba. For instance, Dia’s stores are relatively small (approximately 200 square meters or even less) compared to Disba’s stores outside Barcelona that ranged from 500 to 600 square meters. Disba should, therefore, position itself as a supermarket chain that stores a wide range of products for its customers.
Changes to Disba’s Marketing Mix
In order for Disba to position itself effectively and be successful, it has to make some changes to its marketing mix. First, Disba needs to add more products to its stores. Even though the company has performed relatively well including the addition of the new product lines of non-food products such as health and beauty aids, kitchenware and clothes, it still needs to add more product lines to its stores. This adjustment in the product marketing mix will make Disba serve its target market of working women effectively as they appreciate finding a variety of goods in one store to save them their limited time.
The other marketing mix that needs to be adjusted is the place. Disba needs to have more stores outside Barcelona. This will enable the company to store a wide range of products and also to have enough parking spaces for its customers. Also, Disba needs to adjust its price marketing mix in the long term. Although its target consumers are not very sensitive to price, they may prefer Disba’s competitors such as Dia in cases where time is not an important factor, for example, during weekends. Therefore, Disba needs also to adjust the prices of its products so that it remains competitive in many aspects.
Finally, Disba also needs to adjust its promotional marketing mix. The company should now focus on promotional strategies that focus more on its target market. Disba can reach its target market through various methods. For instance, it can advertise via the social media such as Facebook and Twitter. Also, it can advertise through other advertising channels such as televisions, brochures, and billboards. Apart from advertising, Disba can reach its target market through public relations. In this case, it can sponsor or participate in various events happening within the target market.
