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Retail Proposal National Hockey League Enterprises Canada Manprite Kaur Renjeet Kaur

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Retail Proposal National Hockey League Enterprises Canada Manprite Kaur Renjeet Kaur Powered By Docstoc
					                  Retail Proposal
    National Hockey League Enterprises Canada

                                      Manprite Kaur
                                      Renjeet Kaur
                                      Misa Kumata
                                           6/15/2010




Any information in this document is confidential and is not to be used other than for its sole
purpose in a retail proposal at National Hockey League Enterprise Canada. Any unauthorized
person caught using this document for their personal gain will be prosecuted.



                                        NHL Enterprises Canada
Page 2 of 6




                           Table of Contents

1.0     Executive Summary ……………………………………………………               3

2.0     Situation Analysis…………….………………………………………..            3
        2.1    External Environmental Factors……………………………….   3
        2.2    Internal Conditions………………………………………………         4
        2.3    SWOT Analysis………………………………………………….             4

3.0     Problem/Issue Statements…………………………………………….           4

4.0     Data Analysis………..……………………………………………………               5

5.0     Alternative Analysis…………………………………………………...           5

6.0     Recommendation………………………………………………………...               5

7.0     Action Plan and Implementation Plan...…………………………….   6

8.0     Evaluation………………. …………………………………………………                6
Page 3 of 6


1.0     Executive Summary

                National Hockey League Enterprises Canada (NHLEC) is a business that
        promotes the game, the licensing of NHL merchandise, and the exploitation of
        corporate marketing partnerships located in Toronto, Ontario, Canada. It
        operates under the managerial control of National Hockey League Enterprises
        that is housed in downtown New York, New York, U.S.A.


                The National Hockey League (NHL), a professional hockey organization
        housing 27 teams in total, was divided into two conferences, each consisting of
        three divisions. Each team received representation from the NHL division
        responsible for officiating, scouting, and public relations as well as the marketing
        division, National Hockey League Enterprises.



2.0     Situation Analysis

                 NHLEC has set its goal to develop a distinct brand image. However, it
hasn’t been successful; it’s becoming too fragmented by increased number of licensees
and retailers for NHL-branded merchandise. NHLEC sees the need to take an action to
expand the market to large retailers such as Wal-Mart, instead of dealing with
independent retailers so that the sales of NHL-brand merchandise and recognition of
NHL will increase.

2.1     External Environment Factors

             Economic: GDP growth in both Canada and Ontario – three per cent up in
              the next century
             Global Trade: Lower priced imports due to the introduction of FTA between
              Canada and US and NAFTA
             Demographic: “baby boom echo” becoming teenagers who are more fashion-
              conscious
             Technology: Quick Response Technology – quick support to customers, less
              time on management at inventory levels, and on-line marketing
Page 4 of 6


             Socio-cultural: Relaxation of the dress code at work place

2.2     Internal Conditions

      NHLEC sells NHL merchandise to licensees and independent retailers, but sales
and recognitions of NHL have not been increased.

2.3     SWOT Analysis

      Location                             TYPE OF FACTOR
         of                   Favorable                         Unfavorable
       Factor
                  Strengths                           Weaknesses

                   Recognized by Hockey fans          Not enough sales
                   Hockey being as a national         Not enough employees
                    sport of Canada                    Not recognized as brand
      Internal
                   Office in Toronto, Ontario          “NHL”
                                                       No business relationship with
                                                        large retailers


                  Opportunities                       Threats

                   GDP growth in Canada               Tendency of spending less
                   Less cost in import (NAFTA)         for apparel
                   Dress code change at work          A slump in the economy
      External      place (from formal to casual)      Future competition from
                   Technology (quick response,         existing merchandise
                    less time on management)




3.0     Problem/Issue Statements

                Based on the SWOT analysis, NHLEC views that the lack of sales is the
        major issue as the internal weakness. Once we manage to increase recognitions,
        we are able to sell more merchandise, hire more employees, and work with large
        retailers. Since consumers spend less time for shopping in apparel these days,
        it’s time to enter the market to large successful retailers so that our products will
        be recognized and also customers don’t need to travel to independent retailers to
        buy NHL merchandise.
Page 5 of 6




4.0     Data Analysis

      Canadian Apparel Retail Sales ($billions) and Growth Rate (%) 1988 -1996

              1988      1989      1990       1991   1992       1993   1994      1995      1996
Retail        14.3      15.5      16.3       14.9   15.5       14     14.6      15.2      16.4
Sales
Growth                  +8.4      +5.2       -8.6   -4.0       -9.7   +4.3      +4.1      +3.9
Rate


5.0     Alternative Analysis

               Evaluation of Management Alternatives against Weighted Criteria

                     Profit         Retailer’s      Recognitions Customer         Total
                                    Support         of Brand     Satisfaction
100%
Controlled                3              2             10               9              24
by NHLEC
100%
Controlled                7              10                3            2              22
by Retailer
 Rented by
NHLEC but                     9          5                 7            9              30
Operated by
Retailer

6.0     Recommendation


                 To increase recognitions of the brand “NHL”, NHLEC should rent floor
space at a department store. By obtaining our own space, we could give consumers a
chance to recognize our product and they could easily come back for purchase as well
as it gives awareness of the brand “NHL”.
Page 6 of 6


7.0     Action Plan and Implementation Plan

             Retail Sales and Marketing Manager, Barry Monaghan, will arrange for a
meeting with a merchandise manager of Bay Department on June 15, 1998. Barry
Monaghan will sign the lease agreement based on the contents:
    Rent 200 square feet in size
    Pay 10 per cent of sales as operating fee to Bay Department
    A lease rate equal to 50 per cent of revenues
    An initial investment in inventory of $6,000
    Fixtures and Signage for the space of $6,000
    1 year lease from September 1, 1998 to August 31, 1999

             Consumer Products Marketing Director, Karen Hanson will be in charge of
Inventory of merchandise.

8.0     Evaluation

      Retail Sales and Marketing Manager, Barry Monaghan, will evaluate the sales
performance quarterly and report it to the Vice-President of Canadian Operations,
Glenn Wakefield. In the report, we will include the chart of customers’ preference to see
what customers’ needs are. Assistant Retail Sales will also evaluate the quality of
customer service at the end of every month by collecting surveys from customers.

				
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