Netto Case Study.

1834 words - 7 pages

1.0 Introduction

1.1Terms of reference
This report is the result of analysing the Netto case study. The report identifies the key points that have helped Netto become a successful discounter store, the environmental analysis and problems that it may face in the future and how to maintain its competitive advantage.

2.0 SWOT analysis

2.1.1 Strength
§Netto has become a increasingly visible & recognisable high street name
§Netto has a range of products that covers 90% of the daily needs of customers
§Netto consolidated its position in Denmark, now looking at possibility of exporting the concept, in Germany and UK
§Penetrating 4 different markets successfully
§Established since 1981
§Good market knowledge
§Very focused company objectives e.g. just concentrating on being LRD and not supermarkets
§Price competitive products
§Good USP (special offers, concessions)
§Discount market leader in Denmark
§Good layout of shop (atmospherics), no nonsense quick access to products for customers
§Multi-tasked staff and good training and development team
§They have a flexible marketing strategy, pricing etc is determined by the market / industry
§Netto promotes quick access to the merchandise
Maintains a competitive retail price at a low profit margin

2.1.2 Weakness
§People are sceptical about products which are cheap and therefore not associate them with quality (in UK market)
§Poor communications mix
§Brand name not as good as rivals

2.1.3 Opportunities
§To increase number of concessions in Netto stores by improving selling space
§Extend range of the retailer
§Improve store traffic
§Extending their range of offered services by diversifying into areas previously untapped by retailers e.g. retail banking, new retail formats.
§A challenge for Netto will be if they can get 'low price equals cheap' to 'low price equals value' to attract operate number of higher spending customers from social groups A and B
§To maximise its products offer and cost efficiency
2.1.4 Threats
§The company views competition on industry and regional level
§Competition coming from two-levels industry and regional. Industry level - Aldi, Kwik Save, Lidl, etc.
§Kwik Save is currently the UK's leading food discounter and 6 largest retailer in the grocery market
§Big supermarkets e.g. Tesco & Asda offering discounting product range e.g. 'Asda Price' therefore more competition from superpowers of the industry
§Future of LDR's is shaky as seen by many analysts

2.2SLEPT Analysis

2.2.1 Socio-Cultural
§Netto will have to consider population, demographics, social mobility - are customers able to get to them, consumers lifestyles, etc.
§Attitude towards foreign products and services * e.g. East German customers welcomed Netto who are from Denmark originally.
§Aiming more at socio-economic group of C1, C2, etc.
§Netto introduced £1000.00 tax free prize to employees who gives a hint of a new location

2.2.2 Legal
§Policies - Legislations, Netto employs locally so introduction of minimum wages will...

Find Another Essay On Netto Case study.

Supermarket industry Essay

3191 words - 13 pages besuccessful for a particular firm. Because this theory is developed asa general approach there is no reason why the generic strategiesshould not be applied to the food retail industry.One study which attempts to do this is the study by Alexander andVeliyath (1993) where data is collected from 500 food retailing firmsin the USA. It was shown that firms possess strategic characteristicswhich could be associated with one of these approaches, but that

Diversity Training Programmes Essay

3323 words - 13 pages interventions for Black and minority ethnic staff: A case study of the National Health Service (NHS) in the UK", Journal of Health Organization and Management, Vol. 23 Iss: 1, pp.103 - 118 Leininger, M. (2001) Culture Care Diversity and Universality: A theory of nursing. London: Jones and Bartlett Publisher International Nursing and Midwifery Council (2010) Standards for pre-registration nursing education (Standards for Competence) London: NMC

When the Bubble Burst

1539 words - 6 pages By the time I arrived state side from my second tour in the Middle East the housing bubble had already burst. I noticed a drastic change in the way that many of my friends and family were living. Several of my friends that worked in real estate had sold their boats and seconds houses. My own stock portfolio had lost a third of its value. My sister and her husband had defaulted on their home mortgage leaving them scrambling for a place to live. I

phase diagram

4456 words - 18 pages the degree of the freedom of the system in this case is F = 1 + C - P = 3 - P. Therefore, there is a maximum of 3 phases present in the binary system. At the eutectic point, all 3 distinct phases are in equilibrium consequently the degree of the freedom of the system is now F = 3-3 = 0. In sum, the eutectic point is fixed. Works Cited Introduction: Chemical equilibrium is a crucial topic in Chemistry. To represent and model equilibrium

Revolutionary Work of Art

1890 words - 8 pages Walter Benjamin emphasizes in his essay, “The Work of Art in the Age of its Technological Reproducibility” that technology used to make an artwork has changed the way it was received, and its “aura”. Aura represents the originality and authenticity of a work of art that has not been reproduced. The Sistine Chapel in the Vatican is an example of a work that has been and truly a beacon of art. It has brought a benefit and enlightenment to the art

Enlightenment Thought in New Zealand Schools

1594 words - 6 pages In this essay I will be looking at how the political and intellectual ideas of the enlightenment have shaped New Zealand Education. I will also be discussing the perennial tension of local control versus central control of education, and how this has been affected by the political and intellectual ideas of the enlightenment. The enlightenment was an intellectual movement, which beginnings of were marked by the Glorious Revolution in Britain

Psychological Egoism Theory

2240 words - 9 pages distinction between the intended motive as a motivator for action and the motive that comes as a consequence of the action. Such a motive may not be their target or the driving factor for their action but only accompanies the activity (Smith, 1898). The fact that we have not found an action that is purely altruistic in nature shows that there is a lot of room for us to think and that there is so much that has not yet been discovered in this field of study

How Celtic Folkore has Influenced My Family

1587 words - 6 pages values of my family. The Celtic Cross, which originated with Paganism customs, has become a popular symbol for Irish heritage and a stepping stone into womanhood for my family. While folklorists are certain that the four parts symbolized North, South, East and West, many people who study Irish folklore agree that “Saint Patrick combined the Christian Cross with the ‘sun’ to emphasize the importance of the cross to the Pagan followers, giving

Julia Margaret Cameron

1406 words - 6 pages At a time when women were looked upon as being homemakers, wives, mothers and such the late 1850's presented a change in pace for one woman in specific. Photography was discovered in 1826 and soon after the phenomenon of photography was being experimented with and in turn brought new and different ways of photo taking not only as documenting real time, but also conceptualizing a scene in which an image would be taken. Julia Margaret Cameron will

Evaluation of School Improvement

1403 words - 6 pages The evaluation process should be progressive to incorporate overall planning, implement changes, which contribute to success. In order to focus on school climate and norms, the evaluation design must include the students, instructions, and outcomes to improve communication and building-level concerns to be address in this response. School Climate and Social Norms The school principal, other staff leaders, and personnel set the tone and the

Case Study: The Benefits of Animal Testing

1757 words - 7 pages used to help animals with the infection (Loeb 72). Obviously, animal experiments greatly benefit the health of other animals. Though the benefits of animal experimentation are clear, some say that animal testing is inhumane. Many animal rights activist claim that the experiments are always painful and causes harm to the animals. They feel that the researchers are abusive and intentionally harm the animals. However, this is not the case

Similar Essays

Netto Case Study Marketing

1668 words - 7 pages INTRODUCTION Netto is a Danish supermarket group, opened its first store in December 1990, since then Netto has been trading in the UK successfully. Although it is pitched at the more affluent middle market in it's own country, in the UK it has aimed exactly for the budget end. Everything Netto does is designed to keep prices down. The stores are very simple, many looking like warehouses, and products are generally displayed either on the

Conflict Management And Resolution Of A Public School (Randwana High School)

2920 words - 12 pages Biology labs, she confronted Martin but it did not help matters. She then went to Principal to intimate him that the new arrangement was not working as planned, and prior to this time, Martin had already met with the Principal and told the Principal that the arrangement was working well, that the contract should be renewed for another six months and Cheryl does not like this idea.3.Case Study AnalysisThe real issues here arose as a result of the

Food And Agriculture: Root Crops Essay

1718 words - 7 pages made with dasheen (Tobago News 2013). The aim of this study is to prepare cakes with proportions of dasheen flour of 10, 20 and 30 percent and to evaluate the acceptance of the cakes using a sensory panel. It is hoped that this study will generate interest in the versatility of dasheen flour and encourage further research in agro processing of the dasheen corm in the Caribbean. References Adane T., A. Shimelis, R. Negussie, B. Tilahun

Internet Control And Ownership In Malaysia (Including Bibliography)

2329 words - 9 pages Malaysian Case Study on Blogging towards a Democratic Culture, Faculty of Law, National University of Singapore.Theophilus C. (2003) Malaysia: Opposition Paper Says Press Ordered Not to Report SARS Deaths, Malaysiakini (Malaysia) Lexis, Nexis LibraryWalker C. (2006) Technology Promotes Democracy, Lawmakers Say, Bureau of International Information Programs, U.S. Department of State retrieved 15 September 2006 from