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Market Analysis C & J Clarks Ltd

2704 words - 11 pages

Market analysis C & J Clarks LtdCONTENTSEXECUTIVE SUMMARY1.INTRODUCTION2.COMPANY HISTORY AND PROFILE2.1C&J Clark2.2History2.3Manufacturing2.4Range of Shoes2.5 K Shoes3.MARKET ANALYSISA. MICRO ENVIRONMENT3.1 Market Data3.2Competition3.3Consumer demandB. MACRO ENVIRONMENT3.4Political3.5Social3.6Technological3.7Economic4.SWOT ANALYSIS5.IDENTIFICATIONS OF STRATEGIC ALTERNATIVES6.RECOMMENDATIONS6.1Short Term6.2Medium Term6.3Long TermEXECUTIVE SUMMARYI have been asked by C & J Clark Limited (Clarks) to prepare a report which would include a market analysis of the UK footwear industry and to propose a number of strategic recommendations which would ensure that Clarks secures its short, medium and long term future as the market leader in the shoe business.Details supporting my findings and recommendations are detailed in the main report. A summary of the main points are as follows:-FindingsClarks brand is recognised as one of quality with a strong market share of children's footwear and the "the more mature" customer.The company has a strong distribution network which could be used as a platform to launch new products at minimal incremental cost.There is a significant threat from new competitors such as the major supermarkets as well as high fashion retailers extending their product range to footwear.Footwear is growing in importance as a "fashion" item and evidence supports an increase in "impulse" buying particularly by women.Consumers in the age range 30 to 49 years olds spend the most on footwear, on average £322 per annum.There is increased political threat on "cheap" imports e.g. tariffs on imported goods from China and Vietnam. The EU commission is also monitoring anti - competitive behavior closely. This could escalate in the future.Social trends are impacting Clarks' market. There is a move towards "cheaper" more fashionable boots and shoes made of synthetic materials which can easily be disposed of after a relatively short period of time.The UK economy is showing signs of slowing down which will have an adverse impact on demand in 2008 as consumers spend less on "fashion" and focus on essentials.KEY RECOMMENDATIONSSHORT TERM - diversify into selling clothing accessories which would be sold alongside Clarks' shoes and boots.MEDIUM TERM -Investment in marketing, brand image and innovative designLONG TERM - Focus on the teenager/young adult marketINTRODUCTION1.1I have been requested by C & J Clark Limited (Clarks) to prepare a market analysis of the UK footwear industry and present a set of recommendations1.2 I have included in this report recommendations over the short term (1 - 3 years), the medium term (3 -5 years) and the long term (5 + years)1.3 I have used various sources to gather information for my market analysis. The Internet has been a very useful source of information on the footwear industry. Clarks' website has also proved to be extremely helpful in providing detail on the range of products, as well as providing...

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