Mr Price - Situational Analysis

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Micro & Macro Analysis, SWOT, Key Issues and Objectives.
One of South Africa's top fashion retailers.

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Mr Price - Situational Analysis

  1. 1. Mr. Price Cath, Demi, Nat
  2. 2. 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
  3. 3. Macro analysis dpestle • 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
  4. 4. Micro analysis • Suppliers: distribution with online store and orders to customers
  5. 5. SWOT ANALYSIS: INTERNAL AND EXTERNAL FACTORS
  6. 6. 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
  7. 7. WEAKNESSES • Poor quality (materials) – loss of faith from consumer • Associated with being cheap and cluttered • Untidy stores • Poor assistance • Importing from China ( size problems)
  8. 8. 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
  9. 9. 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
  10. 10. 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

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