Mr Price - Situational Analysis
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Transcript of Mr Price - Situational Analysis
Mr. Price Cath, Demi, Nat
Intro and Background
• Mr. Price was started by Stuart Cohen and Laurie Chiappini
• Mr. Price offers casual clothing, intimate wear and accessories for kids and adults
• Aimed to to establish a new kind factory store – boasting attractive interior, wanted merchandise and incredible advertising, but with very low cost structure to allow for low margins off high volumes.
• 1986 – First Mr. Price Factory shop opened in Durban
• 1998 – Mr. Price Sport established, 2007 - Saw Mr Price Become part of the Mr. Price Group including Milady’s and Sheet Street.
• Mr. Price trades shares listed on the JSE has over 900 stores and 100 Africa, franchised stores in
Macro analysisdpestle
• Demographic : Multiracial , both genders, ranging from toddlers, teens young adults and adults, middle class earning income.
• Economical: Listing on the JSE, share price drops, could also effect credit. Importing price hikes
• Social/Cultural: Trends changing too quickly, fads and copies and trends that are not suitable for their demographic. Competition
• Technological: Not all customers having access to internet, cost of maintaining online store
• Legal: Laws and sanctions on importing. Using peoples designs and photo’s legal implications from designers / advertising license's
Micro analysis
• Suppliers: distribution with online store and orders to customers
SWOT ANALYSIS:INTERNAL AND EXTERNAL
FACTORS
STRENGTHS
• Affordable trendy fashion with different fashion lines
• Wide demographic
• Well know and established
• Offer home wear and sportswear
• Offer local designers a chance to collaborate with them (Collection)
• Know for its basics and convenience
• Social responsibility: School Sports team sponsorships and REDCap Foundation
• Offer Sales regularly and mark down on seasonal items
• Mr Price Blog - In The Loop
• Strong advertising ( realistic and current)
• On par with international trends and cater for local trends
WEAKNESSES
• Poor quality (materials) – loss of faith from consumer
• Associated with being cheap and cluttered
• Untidy stores
• Poor assistance
• Importing from China ( size problems)
Opportunity
• Manufacture locally and improve on quality
• Store rebranding and refreshing, less clutter ( Dalzeil and Pow)
• Improve service in store - staff benefits and up to date training
• Open an Online store (offering debit card use)
• Improve men's summer clothing range and underwear
• Expand into foreign markets
• More in store surveys and promotions
Threats/ key issues
• Competition – ZARA, Woolworths, Ackermans, Cotton On
• Economic factors – fuel, labor costs,
• Copying too directly ( legal implication)
• Perception- cheap and cheerful
• Change in consumer taste
• Problems with online store – customer disappointment
• Misleading advertising – poor quality
Objectives • 10 % increase in marketing through billboards, bus stops, in store
promotions and events sponsoring
• 20% Increase in local consumers, stakeholders and staff as brand ambassadors ( improve image)
• Minimizing staff turn over by 12%
• Increase local manufacturing and efficiency by 8%
• Increase service offering (till points) to be functional by 5min – productive fast service, no waiting in lines
• Increase sales turn over
• Be main Trend setting store (apparel)
• Online store success -10 % increase in traffic and monthly sales.
• 3 out of 5 SA females aged 18- 25 wearing Mr. Price apparel
• Increase Foot traffic in stores 4% monthly