Page 12 - MB BUSINESS PLAN PDF_Neat

Segments found inside the overall market are related to economic ability and usage patterns.
Clients are of medium to high income, and will use MB Performance and Luxury Autocentre
services with differing degrees of frequency.

MB Tyre and Auto Centre assumes that clients with higher average incomes will use their
service(s) more frequently than lower income clients. The business can also serve a small amount
of non-local clients who pass through Ballyclare and have their cars checked and fitted en route or
while shopping as a delivery and collection service will be provided
The advantages and disadvantages of these segments are set out as follows:

MARKET SEGMENT ADVANTAGES DISADVANTAGES
Car Dealerships They are expected to provide the They may already have a
largest amount of sales, especially standing arrangement with
since they need to frequently check one of the competitors.
and replace tyres on cars for sale

Individual clients: They are likely to make use of all the Poses a risk in terms of
Above-average income services the business offers. switching to competitors if
Will provide word -of- mouth and a competitor offers a new
referrals if satisfied. or better
Geographically close clients can service.

provide a large amount of repeat-
business that will increase the sales
volume.
Individuals: Low Will provide word-of-mouth and Provides business less
income referral Is if satisfied. frequently.
They can provide repeat-business Provides smaller income
that will increase the sales volume. per ord because they
er afford the
cannot more
Provides a large, local market. expensive services.
Other Clients (taxi Will provide income when they pass Clients that are only
Businesses, etc). through passing through the area
bBALLYCLARE are unlikely to provide
Clients like taxi businesses
may
provide frequent sales. Repeat-business.

The business has selected these segments as they represent the local geographical market,
demonstrate a need for the service and has the financial ability to satisfy their needs.
Barriers to entering the Retail Tyre market for a new competitor include the capital outlay
required, finding suitable premises where competitors are geographically dispersed, as well as
obtaining reliable and suitable suppliers.

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