the dune group internationalising presentation
DESCRIPTION
Research into a chosen parent company (The Dune Group) and their internationalisation Developing their subsidiary brand, creating a new strategy to improve the brand in the UK marketsPresented via a PowerPoint presentation and written report.TRANSCRIPT
Improving the business in the UK market
Gemma Hagan
•Research Methodologies
•An Introduction to The Dune Group:-Head Over Heels and Madden Girl
•Current trading conditions in the UK
•Strategy and justifications
•Summary
Presentation Structure
Research Methodologies
Primary Research
-Interview with Daniel Owen- Concession Manager
-Concession and Solus Store visits Secondary Research
-The Dune Group intranet-The Dune Group brand book-Dune News- weeks 35-39-Internet
The Dune Group
-Began in 1992 as a concession in selected Faith Stores-1993 Kings Road, London- ‘Operation International’ 2001- Dubai & Abu Dhabi
-Acquisition of Shoe Studio in 2009 Company size and turnover tripled- £150m Acquired Brands- Roland Cartier, Roberto Vianni, G by Guess,
Head Over Heels, Madden Girl
-Brand Portfolio:-Dune -Steve Madden -Black Sands by Dune -Pied A Terre-(Shoe Studio) -Bertie-Gabor - Chelsea Cobbler
“To develop leading affordable luxury brands in the footwear and accessories market in the UK and globally”
The Dune Group
The Dune GroupLocation & Store Format
•48 ‘solus’ stores in the UK•165 ladies/70 men’s concessions - leading department stores in UK, Ireland, Holland, Denmark and Germany•Franchise stores in Kuwait, Bahrain, Qatar, NA, Russia and Poland -India and China stores opening 2013
Department Stores:
Subsidiary brands to improve
•Head Over Heels by Dune•Fun, Affordable, Fashionable•Original brand of Shoe Studio•Younger target audience: Ages 15-22•Less disposable income- fast fashion interests •Available in Debenhams Dune concessions & online
•Younger Sister brand of Steve Madden•American range- fashionable and affordable•Younger target audience: Ages17-25•Less disposable income- fast fashion and quantity desires•Available in Debenhams Dune concessions & online
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Shoe Studio Brands- Products
Price Points: £18-£110 Price Points: £22-£69
Current trading conditions in the UK
Recession •Increased levels of unemployment•Consumer’s reduced disposable income•Consumers spending less & more cautiously to reduce personal deficit•Opting for fast fashion: Quantity over quality Fluctuating VAT
•Fluctuation between 17.5% and 20% rate•Increased prices of products- negative effect on consumer spending•Costly/time consuming process to re-price all products
Bi-Seasonal Weather
•Bi-seasonal weather- no clear definition between seasons•Retailers cant plan easily what stock needs to be in stores when to maximize sales•This year boot sales increased on LY by 13%/ decrease on LY sandal sales by 19%
Foreign Manufacturing and Exchange Rates
•Fluctuations in exchange rates- effect cost of importing/exporting goods•Effect companies that trade in UK- import costs too high, increase manufacturing costs= tighter profit margins or increased product costs
Ethical Expectations
•Increased expectation of society for retailers to become more ethical•Usually involves natural materials/products in production and recycling •Cost of being ethical > usual methods used by fast fashion companies•Increased costs reflected in higher product price points
Current trading conditions in the UK
Strategy 1Removal of Head Over Heels and Madden Girl from Debenhams and
House of Fraser to New Look, Jane Norman and Dorothy Perkins
Why?
•HOH is already sold as online exclusive on New Look website•Brands suited to a younger target audience- do not shop in Debenhams/HOF•HOH & MG products stocked where the target audience shop = Increased sales in the UK•Make Dune concessions more exclusive for the main brand•Increased locations with suited price points•First shoe brand for Jane Norman
Removal from Debs & HOF
HOH and MG into New Look, Dorothy Perkins,
Jane Norman large stores
Expand into smaller stores
Open small Shoe Studio
stores in main city centres
Strategy 1- Justifications
“Do you feel the Head Over Heels and Madden Girl brands are too young to be housed in Debenhams and House of Fraser stores?”“Yes, if you look at the average age and desires of the Debenhams customer, they do not fit the HOH and MG target audiences. The Debenhams consumer seeks the high quality luxury products of Dune, not the fast fashion products of HOH and MG.” - Daniel Owen, Dune Concession Manager
E-commerce sales
•Week 38: SS -67% on LY sales only achieving 52% on target •Week 39: SS -93% on LY sales missing target by 75%Poorest selling•Poorest selling brands under The Dune Group- resulting in SALE stock each season
Strategy 2Introducing an ordering service for the Dune concessions and expanding
the new ordering service in ‘solus’ stores.
Why?
•Dune concessions in department stores do not have this service•Daily requests from customers to order in sizes not in stock•The recent introduction of the HARRY ordering system- hand held device in selected stores to order from warehouse to customers home address•Proven success by increased sales from using the HARRY in selected stores
Strategy 2- Justifications
•Lack of consumer confidence on Debenhams website order points in store•Table shows in week 38- extra £22,601 was taken over 265 extra transactions•Increased sales and therefore profit for the company, otherwise wouldn’t have received
Strategy 3Introducing The Dune Group’s own range of shoe care to be sold in Dune
‘solus’ stores and concessions on all brands.
Why?•No shoe care used or sold in ‘solus’ stores or concessions•Consumers have used other brands of shoe care on Dune Group products ruining shoe materials•Extra add on sales for the company- increased profit
•Include: Leather Protector, Suede Protector, Leather Reviver, Suede Reviver, Full length insoles, Half Insoles, Heel Grips, Deodorizer Spray, Black and Clear Shoe Polish, Suede Brush.
Strategy 3- Justifications
“Do you think The Dune Group and the Shoe Studio brands under our name would benefit from an exclusive range of shoe care products?”“Definitely. The Dune Group are missing out on vital add on sales and losing them to the concession host stores. However, the company would need to introduce a training program for staff on how to use and link sell the products effectively.” - Daniel Owen, Dune Concession Manager
•The Dune Group lose sales to host department stores- consumers purchase their shoe care•Specific range suited to Dune and subsidiary brand products- improved company and consumer relationship regarding product care•Intensive staff training program- how and when to use products: maximize add on sales and increase product knowledge amongst staff
Summary
Strategies:
•Move younger Shoe Studio brands Head Over Heels and Madden Girl to New Look, Dorothy Perkins and Jane Norman Stores•Introduce an ordering service to the concessions•Introduce shoe care products to be sold in store and concessions
By following the recommendations I feel The Dune Group, Head Over Heelsand Madden Girl brands will improve in the UK market.
Thank You For Listening
Any Questions?