The commissioner of this thesis is the Finnish local retailing business Tokmanni Oy Tarjoustalo in Forssa. The purpose of this thesis is to solve two problems. One is to find out what customer segmentation Tarjoustalo has and to utilize customer segmentation and the 20/80 rule both analysis methods to identify different groups of customers, and provide the best possible products to meet individual requirements. Another problem is to find out who Tarjoustalo’s competitors are and what products do custom-ers buy from its competitors. SWOT analysis as a method was used during the case analysis.

Some relevant theory knowledge was applied in this thesis, such as cus-tomer segmentation, customer service, why customer service is important in supply chain, ABC analysis and competitor analysis.

The qualitative research method was used with the main focus on the use of questionnaires. In total, 65 surveys were used in market research analy-sis. The main results of research are that Tarjoustalo mainly serves the customer group are female, over 60 years old, live in a two person house-hold in Forssa. They usually shop once a week at Tarjoustalo and normally purchase detergent products, household goods and clothes due to low price and good customer service. The toughest competitor is Prisma. SPSS as a statistics tool is used to analyse the data and make the graph for each question.

In conclusion, Tarjoustalo, in order to make a profit growth, has to make sure those core products are always available for the customers and the key customers are always fulfilled.