be successful, be stylish, be reiss
DESCRIPTION
Marketing plan to enter the NetherlandsTRANSCRIPT
MARKETING PLAN
INTERNATIONAL MARKET
ADVISORS
Matteo GiovannangeliSara Chaaby
Thomas Lucas
Entering The
Netherlands
“BE SUCCESSFUL,BE STYLISH,BE REISS.”
Executive Summary
Situatio
n
•Reiss is a profitable fashion brand that wants to spread internationally
•The new market to enter is The Netherlands
Objective
•The Objective is to obtain the 25% increase of sales from international markets within three years and s return of 8% (IRR)
Strategy
•3 Wholly owned Subsidiaries (Amsterdam, Rotterdam, The Hague)
•After 3 years starting with the Franchising and the Webshop.
Tactics
•To get contact with the customer Reiss needs a “big idea”(delivering a lifestyle, Augmented Shopping Experience) and promotion (Fashion Week, Sponsorship classy sport events, Advertisement on magazines and street)
•To keep contact with the customers he need to fulfil the customer needs and loyalty marketing
Action
•Combining the strategy and tactics Reiss will reach the objective
Control
• To control the new strategy Reiss needs an Achievement-oriented leadership management style, a Top-Down structure, a fast IT system for the flow of information, a good internal marketing and a team of responsible and accountable managers which are able to control the company through tools such as Key Performance Indicators.
If this marketing plain would fail, we have also a Plan B (POLAND or POLAND+DE BIJENKORF), but it is not the case because...
INTERNATIONAL MARKET ADVISORS
UNBEATABLE COMBINATION
All you can find in the presentation in one slide...
Background to the plan
REISS THE BRANDReiss a retailer of
“own brand” quality fashion menswear and womenswear that established
itself in London in the 1970s. The
brand has become recognized as a
progressive, fashion–led retail
company, designing and producing own-
label ranges. It offers an
aspirational look at affordable price.
REISS THE ENTREPRENEUR
The entrepreneurial owner David Reiss is
the driving force behind the business.
He took over the company in the
early 1970s, when the company was a
small clothing factory in the
Yorkshire . Today the company has a
wholesale side a, 25 stores and some city
centre properties.
REISS THE STORESAll the retailing
shops of REISS are in the UK and one in
Ireland. Furthermore, Reiss
has 28 wholly owned shops and 4
concessions in House of Fraser. These store are
chosen in prime, quality location and their environment is carefully considered
with staffing, merchandising and seasonal graphics.
REISS THE MANAGEMENT
The expansion of the business has led
the company to develop a
professional management team. This growth has put also a premium on
office space and the plan is to move all
the department in a unique office, so
that to have a lot of benefits in the
communications and in the creative
process.
REISS THE SUCCESSThe last year REISS was very profitable
with significant increases in trade. Also the product
range in both menswear and womenswear is
expanding to include accessories. For this reason the company now is
poised to capitalise on its market
domestically and internationally
Organisation
•Offer the customer an individual and aspirational look at affordable prices, delivering it in a unique store environment which provides the customer with an exclusive experience.
Mission•Develop an
aspirational, fashion-led men’s and womenswear brand that has a clear identity that can be expanded domestically and internationally.
Vision
•To achieve the mission and vision and design clothes that fit to the needs and wants of our customers, who reflect perfectly our motto “be successful, be stylish”.
Aspiration
Market Overview & Situational AnalysisWhich is the current position of ReissREISS has been being a very successful menswear and womenswear brand with a spread retail network all around the UK and Ireland. Factors that have contributed:-High Quality Clothing Tailoring-Unique design-Affordable prices-Store experience
What went well-Settle the brand in the UK-Proposing a unique offer: Clothing (good design, quality, value) and store experience with a clear identity. -Own label range, Reiss can be only purchased in Reiss store-Reiss had a good visibility in a lot of fashion magazines
• What went wrong-The brand hasn’t be able to have reputation out of the UK-No web-shop
Internal Analysis: strengths, weaknesses and measures of capability
STRENGTHSBRIDGING BRAND: Reiss is a unique brand for its position because it bridges the gap between high and low priced fashion STORE EXPERIENCE: REISS carefully consider s it with staffing, merchandising, music, seasonal graphics and location.UNIQUE LIFESTYLE: individualism is a growing trend for style conscious peopleCLOTHES QUALITY: the brand have been acquiring good competences and reputation in combining good quality clothes and designMARKETING: is an important key activity of REISS that, thanks to store windows and graphics campaign, place the emphasis on the statement brand: individual, stylish and sexy.
WEAKNESSESREISS WEBSITE: is a non transactional website. In an international environment you need a big platform, that is a web shop.LACK OF INTERNATIONAL MNGT SKILLS: problem in organizing the company abroad and in facing the competitorsLACK OF INTERNATIONAL REPUTATION: Reiss has no reputation internationally, so approaching a new market it is better to focus on fashionable consumers with similar tastes to UK customers
REISS UK
REISS INTERNATIONAL
•The product of REISS is something special . Actually the REISS product is a high quality and good design cloth combined with the experience delivered through the store environment.
PORTFOLIO ANALYSIS
•STRATEGIC INTENT: entering the Dutch market reaching the objective of the increase of international sales.
•STRATEGIC REALITY: the reality is that the strategy is achievable
STRATEGIC INTENT & REALITY
•The last year RESS has a positive year in the UK market with a gross profit of 14131000£. But in comparison with other apparel retailers brands in UK, Reiss position is a bit weak.
BENCHMARKING
•MAN: the human resources are Managers and Store staff
•MINUTES: the deadline to reach the objective is within 3 years from the starting of the strategy.
•MONEY: the investment needed are affordable for Reiss according their Financial Statement
RESOURCE ANALYSIS
•ASSETS: the total assets of the company are 13876000£
•COMPETENCIES: REISS during these 30 years of activity has developed competencies such as good design clothes tailoring and a successful shopping formula.
ASSETS & COMPETENCIES
•The Reiss philosophy centres on creating and producing directional, design-led menswear, womenswear and accessories. Reiss prides itself with an uncompromising commitment to delivering innovative, original products combining exceptional design, quality and value
REALITY CHECK
The preliminary assessment of strengths and weaknesses and their implications
-Bridging brand-Store experience-Unique lifestyle-Clothes quality-Marketing
-Unefficient website-International Branding-International mngt skills
-Facing with economic crisis-Defeating the competitors
-Attract middle class-Fashionable people-Business people-Exploiting the communication network
TO REACH THE OBJECTIVE-25% increase of international sales-8% internal rate return
Strengths Weaknesses
..to exploit for.. ..to solve for..
REISS
External Analysis and the market auditOPPORTUNITIESMiddle class: there is an increase of the middle class which is our target groupFashionable people: more and more people are becoming style conscious and this is a great opportunity to catch themBusiness people: also business people are our target group because of the suits that Reiss sells.Wide communication network: this is a great opportunity to create brand awarenessTHREATSEconomic Crisis: the economic crisis is a threat, because people are not spending a lot of moneyCompetitors: also the competitors are a threat for Reiss because they have already a big brand which Reiss does not have
•The market trends in the UK and the Netherlands a re almost the same. There is a high level of fashionable people and the fashion trends are almost the same.
MARKET TRENDS AND
IMPLICATIONS
•Our customers want a little bit extra. The moment they enter the shop, they want to experience something unique. It is not only about the clothes, but also about the music, seasonal graphics, good service, individual architecture.
PERFORMANCE/ IMPORTANCE
ANALYSIS
•Men and women aged 18-40 years, who are style conscious, like good quality and good design. Also business people, because one of the key activity of Reiss is making suits.
CUSTOMER ANALYSIS
COMPETITOR ANALYSISThe competitors- HUGO BOSS: 23 shops in the NL, online web store, most dangerous competitor of Reiss, target group and prices are almost the same, the brand is internationally known and profitable- ZARA: More than 15 stores in the NL, worldwide brand awareness- DKNY: 6 shops in the Netherlands
COMPETITIVE STRENGHTS•Superior logistics and technology infrastructure•Macroeconomic stability•Strategic location in Europe•International business environment•Highly educated, multilingual and flexible workforce•Quality of life•Favorable fiscal climate
COMPETITIVE WEAKNESSES•Access to financing•Inefficient government bureaucracy•Restrictive labor regulations•Tax regulations
SLEPT ANALYSISSocial: The lifestyle is similar to the British one and there is style-fashion consciousness. Fashion is important in the Dutch culture. Legal: The Netherlands’ trade policy is the same as that of other members of the European Union that means free movement of people, goods, services and capital with the U.K.Economic: •GDP – real growth rate: -4.3%•GDP – per capita (PPP): $39,000•Inflation rate: 2.5% Political: Form of government: Constitutional monarchyTechnological:The Netherlands has a high level of technology.
Reiss
The preliminary assessment of the opportunities and threats: the issues that emerge from the analysis including the critical succes factors
- Location- Experience- Branding- Scale advantage - Network
-Carefull with money- People want to be more individual and unique- more brand-awareness
- Economic Crisis- Competitors
-Middle class-Fashionable people -Business people -Wide communication network
TO REACH THE OBJECTIVE-25% increase of international sales-8% internal rate return
Cri.Succ.Factors Key issues
Opportunities Threats
REISS
Critical Issues Analysis
CRITICAL ISSUES
INEFFECTIVE WEBSITE: a good website with a web shop is a must in the current international environment. Actually the web is the best platform to a wide visibility and to challenge with the competitors.
INTERNATIONAL BRANDING: the branding nowadays is one of the biggest key factor to be successful and to defeat the competitors. REISS is entering the Dutch market for the first time and for that reason he needs a good plan and the right knowledge to establish a brand reputation in the new market.
INTERNATIONAL MANAGEMENT SKILLS: internationalization is a crucial key issue for REISS. In fact, their lack of competence in international management must be solved if REISS wants to face with the global market threats, that are the economic crisis and the competitors.
STRATEGIC PRIORITIES-Creation of a webshop to have a bigger platform-Adoption of strategies with an high level of control such as Wholly Owned Subsidiaries
MARKETING PRIORITIES-High customer service level-Hiring staff experienced in the dutch market-Promotion-Focusing on early adopters
HOW TO SOLVE THIS ISSUES?
The principal assumption underpinning the plan
FOCUSING ON THE SUCCESS
FACTORS; innovative
shopping formula, “Augmented
Shopping Experience”
REINVENTING THE PRODUCT CONCEPT: no more selling clothes, but
lifestyle.
PROMOTIO
NAdvertisin
g,
Sponsorchi
p
THE SCOPE FOR LEVERAGING CAPABILITYCRITICAL SUCCESS FACTORS•BRIDGING BRAND: Reiss is a unique brand for its position•STORE ENVIRONMENT : The store environment is carefully considered with staffing, merchandising, music and seasonal graphics.•CLOTHES QUALITY: These are crucial factors for our fashionable customer and for our main target group of business people.•UNIQUE LIFESTYLE: r a unique style to differentiate themselves from the others that only REISS is able to offer.•MARKETING: Marketing is an important key activity of REISS that places the emphasis on the statement brand.
PROBABLE CUSTOMER
REISS
The probable customers of Reiss will be EARLY ADOPTERS and
INNOVATORS, because Reiss has no reputation . For this reason only the trendsetter will be willing in buying
it.
The Target Market & its characteristicsB
E S
UC
CESS
FU
L
BE S
TIL
ISH
BE REISS
CONSUMER ISSUES
Be successful, Be stylish, Be Reiss....for people want to be stylish in the office with colleagues and in the terrace with friends, because Reiss is not only a style...it is lifestyle !!
STRATEGIC GROUP: The customer of Reiss is a power-hungry person, with good taste and sensible about art and culture. He is an innovator about fashion and loves being trendsetter and distinguishing himself from the others; for him individualism is a must.
Matthew is an ambitious 25 years old guy and he has just graduated in International Management. Now he is working in a multinational company and when he is at work he likes wearing fashionable clothes to be noticed and distinguished from the colleagues, but always respecting the business dress-code. After work he usually meets his friend to have a drink on a terrace, having high-culture conversation about art and culture; when he is with his friends he loves being the most glamorous, but wearing casual and comfortable clothes.
SEGMENTATION: People from middle to high middle class
TARGET: Business people and fashionable people looking for innovation
POSITIONING: High quality and design for affordable price (Cheap-Chic)
30%
25%
25%
15%
5%
Market Space
Low price fashionLow-MediumHigh-Medium price fashionHigh price fashionLuxury
REISS
ARMANI
GUCCI
PRIMARKS
ZARA
The preliminary marketing objectiveThe Ansoff Matrix
Competitive advantages: -Cheap-Chic, Reiss is an affordable luxury-Innovations such as Augmented shopping Experience
Below Competitive Stance
Above
Ted BakerFCUKZARA
REISSHugo Boss
DKNY
Paul SmithArmani
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL
Three Stores -53382 267330 361794 468540 589161 1633442Franchising 38894 34016 72910
Webshop 43350 59728 103078
Net profit -53382 267330 361794 550784 682905 1809430
The objective will be completely reached with three shops. Increase
of International Sales (27,3%) , Return on Investment (11,7%).
Why Market Penetration?We penetrate an existing market with an existing product. For gaining competitors’ customers REISS will sell the products, the clothes, inside a better box, the Augmented Shopping Experience.
Profit Forecasts
The positioning statement
The Needs and wantsCircle of the REISS Customer
•A style conscious man or woman between 18-40 years old with ambition and good taste
Target
•Be fashionable, dress as a successful person. More than a need, an obligation.
Needs and wants
•Life is a competition, style is a weapon
Provides added value
•Hugo BossMajor
Competitor
•Innovation on the fashion market (Augmented Shopping Experience)
•High design and quality for affordable price
Differentiation
BEING PART OF AN ENTOURAGE
OFCULTURED AND AMBITIOUS
PEOPLE
BE STILISH
DRESS A CLOTH
The marketing & competitive strategy & the competitive stance
STRATEGY-3 Wholly owned Subsidiaries (Amsterdam, Rotterdam, The Hague)-After 3 years starting with the Franchising and the Webshop.
THE BIG IDEABe successfull, Be stylish, Be REISS.
Not o buy a style, but a lifestyle
COMPETITIVE TARGETSA competitive target is the early adopters. They are usually young men and women, ambitious and willing of uniqueness
SEGMENTATION: People from middle to high middle class TARGET: Business people and fashionable people looking for innovationPOSITIONING: High quality and design for affordable price (Cheap-Chic)
BREAKING POINTAUGMENTED SHOPPING EXPERIENCE: this new concept of shopping formula consist in three main innovations: Personal Shopper, Reiss Bar, Reiss Meets Art.
THE COMPETITIVE STANCEREISS bridges the gap between low and high
price fashion brands
APPROACHES TO LAVARAGE CAPABILITIES-PROMOTION: Amsterdam Fashion Week, Sponsorship KLM Golf open, Mag. Advertising-LOYALTY MARKETING: membership-EXCELLENT CUSTOMER SERVICES: new shopping formula
The management of the seven Ps of the marketing matrixPRODUCT PRICE PLACE PROMOTION PEOPLE PHYSICAL
EVIDENCEPROCESS
MANAGEMENT
- Fashion clothes- Casual clothes- Suits- Bags- Shoes- Accessories - Jewellerymen and women
- Fashion clothes € 50 - 500- Casual clothes € 25 - 300- Suits €300 - 800 - Bags € 70 - 300- Shoes € 70 - 200- Accessories € 19 - 200- Jewellery € 40 - 150
Location shops:- Amsterdam, P.C. Hooftstraat- Rotterdam, Lijnbaan- Den Haag,NoordeindeLogistics channel:the UK.
- Website- Internet - Fashion week Amsterdam- Sponsorship sport events (KLM Golf Open)- Advertisement (fashion magazine, billboards)- Loyalty Marketing after 1000€ of purchasing (Gift and loyalty card and promo-newsletter)
The employees will be from the Netherlands and from the UK. They will be trained by a specialist how to create a great experience for the customers. There will be also a Dutch and English manager.
The store environment will be exclusive as all the other Reiss shops. The customers will enjoy the experience being there. There will be music in the store and friendly, professional trained staff to satisfy the needs and wants of the customers.
The customer is very important and the staff has to give a lot of attention to the customer. If the customer enters the store the staff has to be friendly. If the customer looks like he or she needs help then the staff has to go to the customer. The staff has to be always honest, because customers appreciate that.
Aspects of customer serviceBEFORE DURING PURCHASE AFTER
-Call Center Service-Sending Catalogue*
-Styling advising-Coffee after payment-Exhibition tour-Bar Service
-Return policy: within 14 days with the receipt-Laundry **-6 months warranty on damages due to bad production
** Charged* For members
The development of the brandCOMPETITIVE ADVANTAGE
Reiss offers high quality fashionable clothes for an affordable price
SELLING PROPOSITION
‘Selling style as a way of living’
BRAND VALUESBeing unique and adjust to the needs and wants of our customers.
THE BIG IDEA AND BREAKPOINT THINKINGOUR PROPOSITION: Be successful, be stylish, be Reiss.REISS’s clothes are not just clothes, it is a lifestyle. By buying Reiss youjoin the REISS entourage, that is made of successful and stylish people.The package in which the product will be sold is theAUGMENTED SHOPPING EXPERIENCE: this new concept of shopping formula consist in three main innovations.1. PERSONAL SHOPPER: it’s more than a simple shop assistant, it’s your own stylist and host
who will take care of you in during your “augmented shopping experience”; you can also private consultation with him to understand which is the style that fits you the best.
2. REISS BAR: a bar installed in the store will allow Reiss customers to network with people of the Reiss entourage
3. REISS MEETS ART: this is a brand new store concept in which fashion and culture are combined. Weekly art exhibitions will be arranged in the shop with the collaboration of students at universities and art academies.
THE BASES FOR DIFFERENTIATION AND COMPETITIVE ADVANTAGESA new concept of product and shopping formula, that means selling a “lifestyle” through an “augmented shopping experience”
MARKET MAPPINGREIS
S
ZARA
HUGO
BOSSDKN
Y
ARMANI
BAKER
FCUK
DESIG
N
EXPERIENCE
++
--
--
Budgets – 5 years plan
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL
Three Wholly owned
Subsidiaries
Cost of goods sold 185627 209758 237027 267840 302659 1202911Sales force costs: Employee Remuneration 162866 162866 162866 162866 162866 814330Director Remuneration 9966 9966 9966 9966 9966 49830Other costs: Foothold Investment 100000 0 0 0 0 100000
Rent Price 32683 32683 32683 32683 32683 163415Overhead (Distribution, Marketing, etc..) 83532 94391 106662 120528 136197 541310Dutch Taxation (25,5% of profit) 0 30501 41278 53457 67220 192456Total Budget for each shop 574674 509664 549204 593883 644371 2871796Total Budget for three shops 1724022 1528992 1647612 1781649 1933113 8615388
Franchising
Cost of goods sold Franchisee 185627 209758 395385Marketing costs (5% of revenues) 27844 31464 59308Dutch Taxation (25,5% of profit) 13313 11643 24956Total Budget for Franchising 226784 252865 479649
Direct Marketi
ng (websh
op)
Cost of goods sold 73750 83338 157088Cost of webshop (Web-Design,Maintenance) 34000 24000 58000Overhead (Web-Marketing, Rent Site, etc..) 55313 62503 117816Dutch Taxation (25,5% of profit) 14838 20444 35282Total Budget for Direct Marketing 177901 190285 368186
TOTAL BUDGET TO INVEST 1724022 1528992 1647612 2186334 2376263 9463223
The total budget needed for the 5 years plan is 9.463.223£
Review & possible reformulation of the objective
Objectives: - 25% increase of international sales - 8% internal rate return According to this forecasts REISS will
be able to reach the objective within three years with the opening of three shops.
ESTIMATED FINANCIAL REPORT - WHOLLY OWNED SUDSIDIARY (one shop) YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTALRevenues 556880 629274 711080 803520 907978 3608733
Cost of goods sold 185627 209758 237027 267840 302659 1202911
Gross Profit 371253 419516 474053 535680 605319 2405822
Sales force costs:
Employee Remuneration 162866 162866 162866 162866 162866 814330
Director Remuneration 9966 9966 9966 9966 9966 49830
Other costs:
Foothold Investment 100000 0 0 0 0 100000
Rent Price 32683 32683 32683 32683 32683 163415
Overhead (Distribution, Marketing, etc..) 83532 94391 106662 120528 136197 541310
Pretax Profit -17794 119610 161876 209637 263607 736937
Dutch Taxation (25,5% of profit) 0 30501 41278 53457 67220 192456
Profit after Tax -17794 89110 120598 156180 196387 544480,8
AMOUNT PERCENT.
Tot. International Market Sales - first 3 years 1897234 9,1%
Shop investment - first 3 years 1633542
Return (% on the sales) - first 3 years 191914 11,7%ESTIMATED FINANCIAL REPORT (three shops)
Tot. International Market Sales - first 3 years 5691703 27,3%
Shop investment - first 3 years 4900625
Return (% on the sales) - first 3 years 575741 11,7%
The Action Plan
CURRENT SITUATIONREISS is in the UK and Ireland with 28 wholly owned shops and 4 concessions. After a profitable year it want to develop internationally by
starting from the Netherlands
STRATEGYOpening of three stores in the main shopping streets of the biggest cities in the Ranstad area.
…after three years…
ROTTERDAMSTORELijnbaan
AMSTERDAM STOREP.C. Hooftstraat
THE HAGUESTORENoordeinde
FRANCHISING WEB SHOP
TACTICSHOW CAN REISS GET CONTACT WITH THE CUSTOMER?
Augmented Shopping ExperienceReiss Bar Reiss meets Art Personal shopper
PromotionFashion Week Sponsorship Advertisement
HOW CAN REISS KEEP THE CONTACT WITH THE CUSTOMER?
Loyalty MarketingGift and Loyalty card Promo-Newsletter from the website
Implementation & Control
Deadlines, intermediate targets and measures
The McKinsey 7S
Issues of responsibility and accountabilityINTERNAL MARKETING-Trainings for internal staff (personal shopper, managers...) for the creation of a brand philosophy.-40% discount for the internal staff-Creation of company event to build a family climate (cultural event, company dinner...)-Practicing participative hiring: involving current employees in the process of hiring new employees.-Ensuring equitable recognition and reward: the company must exercise employee recognition with reward to what employee has achieved (sales bonus).-Demonstrating fairness during hard times: fair treatment of employees when faced with hard times and difficult moments like death of the near family members.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010
Building the Company Foothold and the Stores
2011 Opening 3 stores (Amsterdam, Rotterdam, The Hague)
2012 First year profit
2013 Building Franchising and Web ShopObjective of the 25% increase in the international Sales
2014 Starting Franchising and Webshop
2015 Check if the strategy (Wholly Owned Subsidiaries, Franchising, Web shop) is effective
SHARED VALUES: the brand values are being successful
and stylish and doing of this a lifestyle for the REISS
customer
STRUCTURE: Reiss structure is “Top down
approach“, in which plans and decisions are first
conceived by manager on the top of the hierarchy
SYSTEM: IT system is used to speed up the information
flows and to centralized all the decision in the UK
headquarter.
STYLE: it is “Achievement-oriented leadership”, where
high goals are expected to be reached with high level
performance. This reflects the entrepreneurial
personality of David Reiss.
STAFF: stores staff are men and women between 20-40
years, style-conscious, ambitious, well-trained.
Managers are experienced people which are reflected in
the Reiss lifestyle.
SKILLS: Reiss skills are in doing high quality and good
design clothes for an affordable price by delivering
it in a special environment
STRATEGY: the strategy is 3 wholly owned stores and
after 3 years starts also with the franchising strategy and
then with the web shop.
REISS UK
REISS NETHERLANDS
Reiss Franchising controlReiss stores controlSTORES MANAGERS are responsible and accountable for these issues:- Checking store staff performance- Checking the customers service is on the foreseen level- Checking the stores are on track with the financial objective of REISS- Managing stores inventories- ShopVisual Merchandising
FRANCHISING MANAGERS are responsible and accountable for these issues:-Controlling the franchisee respects the values of REISS-Controlling the franchisee obey the contract rules of franchising- Controlling the financial performance of the franchisee
THE DUTCH MANAGEMENT TEAM is responsible and accountable for:-Controlling the finacial trends of the dutch retailers network-Managing the training and recruiment of the Dutch human resources-Managing the logistic and distribution to the stores
THE MANAGEMENT TEAM is responsible and accontable for:-The management and mainteinance of the webshop-Managing the training and recruiment of the Dutch management team-Managing the logistic and distribuition to the Netherlands
Contingency thinking
According to our forecast the chance of failure in the Dutch market are really low because of this assumptions:1-High compatibility between UK and The Netherlands in fashion tastes2-High compatibility between UK and The Netherlands (ex. Unilever, Shell)3-Stable and wealthy economyAccording to us the only risky factor in reaching REISS objective could be:4-Impossibility to gain a part of the market because of high quantity of competitors
WHAT IF?
If the assumptions 1 or 2 prove not to be valid or the risky factor 4 is too high,
it means that The Netherlands is not compatible or the competitiveness is too
high so the plan is...
If the assumptions 3 proves not to be valid be reached, it means that The Netherlands is having an economic
recession, so the new plan is...
Entering a new country adopting the same Marketing plan.The new country is POLAND; Poland is the 6th largest economy in the EU and is currently considered to have one of the fastest
growing economies in Central Europe, so the growing polish middle class can be targeted by REISS
We advise to stay still in the Netherlands, because is a very compatible market, in this way REISS can build a reputation and wait for an economic upturn. We advise a very cheap
strategy: CONCESSION WITH DE BIJENKORF