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									Cappuccino Wars
             week 5


       Prof Chris Birch
 Business and Enterprise Education

  birch.westminster@gmail.com
 Questions
1.   What is their product – what are they selling?
2.   Where are they located – why?
3.   How do they price products?
4.   What is the importance of their staff?
5.   What is the physical environment like?
6.   How do they promote / incentivise?
7.   What are the visible business processes?
8.   Describe the competitive environment
•   H&M – a short summary of the case study: Have you done a similar analysis re Coffee retail outlets?

    Founded in 1976 – now has 1800 stores in 35 countries – still growing and a specific international strategy is in-place for the USA,
    where there are more small stores and less department stores.

    Operates in the retail fashion and accessory sector, selling chic and stylish clothes - It’s main market is 15-30 year old women,
    but it also has a menswear department, though this is relatively small.

    H&M’s main competitors are GAP and Zara – Gap is bigger, but not as commercially successful. They are often trading in the same
    shopping precincts which means the quest is to achieve bigger market share that competitors. To achieve this, they need a clear,
    consistent and visionary marketing plan in order that they are well positioned and differentiated, with ready made USPs.

    Their competitive advantage comes from a number of factors – Their products are low cost, high value. They are well designed
    and readily available – They use big name designers to develop special interest lines to attract attention and get people into
    stores. Designs are modern, distinctive and well researched. They fully understand their market segments and have built up a
    relationship of mutual trust.

    The low price, high value proposition is achieved through excellent cost control and supply chain management. They are able to
    get new products to market much quicker than their competitors, making them agile and responsive. They have positioned their
    fashions as perishable goods, meaning that they are not intended to last for long. They are priced to encourage impulse buys
    when people go into stores, and their brand has become one that represents chic and peer acceptability by those who wear
    them. It is important that their supply chains are ethically acceptable as their customers are interested and aware, and would not
    support exploitation.

    In summary, H&M know their customers – they have a marketing mix that fits their chosen market segment. They continuously
    innovate through design and materials to keep products edgy, and price to meet the expectations and spending power of their
    customers. They always aim to delight, and they are totally market-oriented.
                                  Oriental   Sushi
Chinese      Chinese
                                  Denitsa    Andre
Oscar        Rick King
                                  Lauren     Ron
Ashlea       Adriana Fernandez
                                  Noreen     Marlies
Saba         Peuja Laliwani
                                  Janet      Arafat
Pelina       Juilane Flatan
Chris-Sean   Masumi Honda                    Atef
                                  Chicken
Japanese     Fast Food            Saif       Junk Food
Valeria      Rahul Sabir          Islam      Mona Freiji
Bich         Monuj Deb            Hashina    Aleksander Naher
Monika       Ali Egger            Alex       Emir Ibrahimlar
Ahmad        Alexander Woolfson              Iknur Aksoy
Andrew       Jordane Johnson      Wine
Jessica      Helifer Lauren       Aude       Italian
                                  Alexis     Hussain
Fast Food    Italian              Manos      Alim
Danjel       Marie                Yordan     Uzma
Adrian       Aicha                           Hena
Edina        Zarah                Mixed
Kazeem       Emel                 Denise     Mixed
Gary         Dimitrios            Tohsheen   Samee
             3 Course Meal        Hamad      Balpreet
Chocolate                         Henning    Christos
Aqsa         Ryan Whooley         Marta      Jamie
Emma         Sinching
Mohamed      Justin                          Unnamed
Saqib        Britta Hormann                  Ola
             Shashwali Banijee               Michael
                                             Daniel

                                             Chic Ital
                                             Divia
                                             Ayoub
                                             Milena
                                             Sid

								
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