3. Rationale/Executive Summary
3.1 Background of my division
The Mr Price Group Limited division that I have chosen is the apparel retail division, also known as the clothing division of Mr Price. My reason for choosing the apparel division of Mr Price instead of the Home or Sport division is because the apparel sector is a fast fashion retailer and has generated a strong brand with well-known corporate social responsibility programmes. The target market of the apparel division is young and vigorous customers, mostly females between the ages of 15 – 35, who are in the LSM income groups. The division contains a wide range of the latest fashion products and offers a distinctive market leading value. If you refer to figure 1 below I have included …show more content…
Economical
Inflation.
Inflation is 6 - 7 % higher than the norm. There are fewer customers when inflation is high because customers are spending more money on buying the essentials such as food instead of spending money on the luxuries.
Exchange rates.
The Rand to the Dollar is currently at R13.50 and because Mr Price imports 70% of their supplies from foreign suppliers their products become very expensive.
Economic climate.
There is a prediction that we are facing a recession and there might be 1% less economic growth rate.
Mr Price can look for cheaper suppliers or increases their prices to keep up with inflation. Mr Price can also consider reducing their transport costs or retrenching employees.
Try and find local suppliers to help build the economy so they don’t have to import. Mr Price can also consider exporting clothing and open stores overseas in places like Australia to earn a foreign currency.
Mr Price can reduce their financial expectations and growth.
Social …show more content…
Mr Price’s target market is females aged 15 – 35 in the middle to high income group. The customers of Mr Price demand in season fashion of good quality and low prices. Some of the consumers also encourage environmentally friendly suppliers using good quality materials to be used in the making of the products. Customers also insist that the clothing be available to all Mr Price outlets so they want to return an item they can. Customers can find substitute products so it is important for Mr Price employees to create a strong brand preference with the consumers. Mr Price needs to ensure that its customers are satisfied, they can do this by conducting market research, supplying goods and services to satisfy their needs and wants. Mr Price can also offer its consumers a return policy with warranties if there are any factory faults in the products. Mr Price provides a wide range of clothing for consumers to choose from to make their experience
3.1 Background of my division
The Mr Price Group Limited division that I have chosen is the apparel retail division, also known as the clothing division of Mr Price. My reason for choosing the apparel division of Mr Price instead of the Home or Sport division is because the apparel sector is a fast fashion retailer and has generated a strong brand with well-known corporate social responsibility programmes. The target market of the apparel division is young and vigorous customers, mostly females between the ages of 15 – 35, who are in the LSM income groups. The division contains a wide range of the latest fashion products and offers a distinctive market leading value. If you refer to figure 1 below I have included …show more content…
Economical
Inflation.
Inflation is 6 - 7 % higher than the norm. There are fewer customers when inflation is high because customers are spending more money on buying the essentials such as food instead of spending money on the luxuries.
Exchange rates.
The Rand to the Dollar is currently at R13.50 and because Mr Price imports 70% of their supplies from foreign suppliers their products become very expensive.
Economic climate.
There is a prediction that we are facing a recession and there might be 1% less economic growth rate.
Mr Price can look for cheaper suppliers or increases their prices to keep up with inflation. Mr Price can also consider reducing their transport costs or retrenching employees.
Try and find local suppliers to help build the economy so they don’t have to import. Mr Price can also consider exporting clothing and open stores overseas in places like Australia to earn a foreign currency.
Mr Price can reduce their financial expectations and growth.
Social …show more content…
Mr Price’s target market is females aged 15 – 35 in the middle to high income group. The customers of Mr Price demand in season fashion of good quality and low prices. Some of the consumers also encourage environmentally friendly suppliers using good quality materials to be used in the making of the products. Customers also insist that the clothing be available to all Mr Price outlets so they want to return an item they can. Customers can find substitute products so it is important for Mr Price employees to create a strong brand preference with the consumers. Mr Price needs to ensure that its customers are satisfied, they can do this by conducting market research, supplying goods and services to satisfy their needs and wants. Mr Price can also offer its consumers a return policy with warranties if there are any factory faults in the products. Mr Price provides a wide range of clothing for consumers to choose from to make their experience