STUDY CASE
STRATEGIC ACCESS TO MARKET
AUDREY GADAY, HUGO MAGAND, JULIEN RODRIGUES, JADE CORNIN,
LEVANA BENMUSSA, GUILLAUME BIZOT, BRAHMI MEHDI
Summary
1 2 3
Long Term Strategy Short Term Strategy Implementation
(5years) (Segmentation…) – action plan
Methods and Results
Our Long-Term objectives
• Increase the turnover of the company constantly in the next
five years.
• Create coherence between the company's universe and
the shops in which the products can be found
• To grow the least profitable shops consistently by investing
money exponentially
• Continue to build on the flagship shops with the highest
returns through significant investment
Our vision of the brand
• A family connected to the Rock & Roll Universe.
• Our partners will share our vision of quality goods (Class)
• Fresh brand for young people – Classic and Sportswear
stylish
Short Term Strategy
SEGMENTATION TARGETING TRADE
MARKETING PLAN
1. Class is the most important for
us because this criteria must be
aligned with our vision of the
company.
à Quality is essential for us
2. Type of stores is primordial.
à We want to attract people that
SEGMENTATION
fits with our new image : our criteria
Fresh brand for young people –
Classic and Sportswear products.
3. Zones :
We wanted to delete small zones
in order to simplify logistic and get
better brand control.
Class A : They fit perfectly with our current and long-term
strategy
24% of stores = 29 % of Sell-in
Class B : 62% of stores = 63% of Sell-in
TARGETING Class C : They dont fit our vision and strategy
à 14% of stores = 8% Sell-in
Class
We decided to delete the entire class C and its 185 stores.
The loss is -2 095 870,00 €
This segment is the less profitable one and doesn’t fit our
strategy : The average Sell-in is 19 701 € but it is only 11 329 €
for Class C
The type is segmented in 3 parts : Apparel ; Sportwear ;
Footwear.
The average Sell-in of Type segmentation is : 21 046 €.
For us : Footwear type doesn’t fit our vision of Lee’s.
TARGETING Therefore, we decided to delete our Class B – Footwear
shops. Also, the profitability is very low 13 743 €.
Type
We decided to keep the Class A – Footwear because of
the high profitability of the segment.
à Average Sell-in of 25 916 €
To summarize we delete 79 shops = 4% of the Sell-in.
à 12% of the Sell-in after the precedent segmentation.
We segmented the zones with 2 factors :
à The zones where young people buy.
Young people go more easily to city centers or shopping malls where
they spend afternoons with friends : Seaside, Industrial and Handcraft
don’t share this vision
à The Average Sell-in for example was important to keep
Residenziale (One shop with 72K Sell-in).
TARGETING •Shopping mall, Semi-central, Suburban, Semi-Suburban and
Residenziale
Zone Good •AVERAGE SELL-IN > 25k –464 shops (43%) = 54% of the total Sell-in
•Central, Historical Town-Center
•595 shops (56%) = 44% of the total Sell-in
Medium
•Seaside, Handcraft and Industrial.
•Small zones with limited profitability : 13 shops = 0,87% of the total
Bad Sell-in.
1336 shops
Trade Marketing &
Implementation
• Increase of 5% of the prices to reduce the impact of deleted
shops.
This increase of prices will therefore have a limited impact on the
volume of sales because increasing prices more than 5% will have a
negative impact on the volume. It will be hard to explain the raise of
prices without launching a new line of products.
à Sell-out Merchandising ; Merchandisers ; Training ; Platform for
customers satisfaction ; Participative customers in the
development of products (Pull strategy).
IMPLEMENTATION • Increase of 15% of the prices on the next lines of products
This increase will be easir to put in place on new products and will
support the strategy to develop new categories (Production costs will
rise)
à Creation of new categories of products (Large size, Tall, Muscular,
Skinny…)
à Develop a collection in partnership with a rockstar.
Merchandising (Display in store, identification signs with rock and roll
posters, identical shelves in all stores)
Merchandisers ; they have to analyse the path of the customer to
reorganize the display of products and encourage them to do
compulsory buyings
The Lee's stores belonging to Lee will be transformed into concept
TRADE stores like art rock and roll shop.
You will be able to play instruments, make concerts, new bands will
MARKETING be invited to perform in the shop and other people will be able to
buy products at the same time.
SELL Out Tools
Training of sales team ; they will have to know our products and be
able to highlight our added values of our products.
We will ask to the stores and create a platform for them in order to
put recommandations on our products from what they observe in the
stores and from what the customers want.
à This is the pull strategy
We will create new categories of products (Large size, Tall, etc)
TRADE Long term : launch of new products through market research AND
MARKETING the recommandation from the customers and stores (Adidas often do
a participative contest to create a new basket)
SELL In Tools Develop a collection in partnership with a rockstar
Our good segments will benefit from all our Sell-in and Sell-out tools.
à The training and the merchandising is mandatory for all of our
segments.
à Merchandizers will only be in our good stores
The less profitable segment will have less training than the good ones.
à We want to boost our top partners in Short Term. Then we will
Implementation support our less profitable ones.
Conclusion
Platform will be available for all segments in the next 2 years.
