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