What is Tractor Supply Company’s growth strategy? What retail mix does TTS provide? TTS targets the hobby farmer/rancher, who are fully employed in Jobs but want to enjoy a rural lifestyle and operate a farm or ranch in exurbs of a city.
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The retail mix foots is: Location – stores are in stand-alone location in commercial iridous in the exurbs Merchandise assortment – stock a wide variety of merchandise that provides everything the hobby farmer/ranchers needs. Probably shallow assortment Pricing – since competition is limited, TTS has flexibility in pricing – offer good, better, best price/quality tiers. IDLE Communication mix – emphasis on personal selling Store design and layout – spacious layout, informative signage Customer service – highly trained sales associates 2.
How has Tic’s target customers changed over time? Why? Originally targeted full-time farmers but as the farming industry consolidated, the large farms bought directly from supplier bypassing retailers like TTS 3. How vulnerable is TTS to competition? What companies represent its primary competitors? Not very vulnerable because the target segment is not price sensitive or very knowledge about the products it needs. Thus the target market is unlikely to be attracted too low cost, low service retailer like Walter.
In addition, each rural area s relatively small and thus there is probably not enough business for multiple retailers targeting the small market with the same offering. Thus, after TTS enters a market, there would not be enough business in the market to entice a competitor to enter. 4. Why does TTS place so much emphasis on training employees? Customer service is critical because the customers in the target market are not very knowledgeable about the tasks to be performed and the equipment needed to performance those tasks.See More on Farm