GALP Energia - The move into Iberian retail

Description

The case describes the strategy of GALP to give its retail an Iberian dimension. Realising that its market quota in Portugal of nearly 40% can only decrease, the company wishes to swap about one hundred of its filling stations in Portugal, for a similar number of Total’s stations in Spain. GALP considers that a Spanish market quota of less than 6% will prevent it from being a player with any weight in the Spanish market. GALP wishes to concentrate in six key areas, so as to hold, in these areas, an 8% quota of the market. GALP’s management believes it can capture Total’s clients in Spain, a market where the sale of non-fuel is much less developed than in Portugal. It also believes that an important part of its clientele for the filling stations which will be handed to Total, may retain some loyalty to the GALP brand, and continue to buy at its other stations. GALP would like opposing strategies to work after the swap, so that in Spain, clients will continue to buy at the same station, whereas in Portugal, they will change station and follow GALP.

Keywords

Distribution Sales & Marketing