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Does Décathlon have the optimum STP to maximize its growth?

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10 pages
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  1. General presentation.
  2. Market description.
    1. Small retailers.
    2. Subsidiary companies.
    3. Monobrand stores.
  3. Tendencies of the market.
    1. Sport according to the gender.
    2. Sport according to the social background.
    3. Personal belongings.
  4. Presentation of Decathlon.
    1. History.
    2. Decathlon today
    3. Location of production sites worldwide.
  5. Presentation of Decathlon's in-house brands.
    1. Decathlon cycle.
    2. Quechua.
    3. Tribord.
    4. Kipsta.
  6. PESTEL analysis.
    1. Political.
    2. Economic.
    3. Sociological.
    4. Technological.
    5. Environmental.
    6. Legal.
    7. Conclusions.
  7. SWOT analysis.
    1. External analysis.
    2. Internal analysis.
  8. STP analysis.
    1. Decathlon's STP.
    2. Segmentation.
    3. Targeting.
    4. Analysis of a successful segmentation/targeting/positioning strategy.
  9. Go Sport's STP.
  10. Decathlon/Go Sport comparison.
  11. Recommendations.
  12. Operational plan.
    1. Financial plan.
    2. Explanations.
    3. Decat' stores.
    4. Costs and turnover.

The French sports article market is doing well, with good opportunities in the medium term. However it is a very competitive market and newcomers do not hesitate to implement aggressive strategies. In 2003, the French sports article market was the most important in the whole of Europe with a global turnover of 8.4 billion euros. There are 3800 stores specialised in sports and leisure articles in France: in 2003, their turnover amounted to 5.8 billion euros. The first five specialised stores (Décathlon, Intersport, Go Sport, Sport 2000, et Techniciens du Sport) alone make up for more than 80% of this turnover. As seen in the graph, the sales of sports article grew by 4.2% in 2003 while the growth was quite limited at the end of the nineties. Large distributors such as Décathlon, Go Sport, Intersport, and Sport 2000 largely contributed to this phenomenon since their average turnover grew by 8.3% the same year. Small retailers: They offer small ranges of products but at higher prices. The small retailers represented 2.9% of the market share in 2000 and they had an estimated turnover of 137 million €. The typical stores in this category are: Les Techniciens du Sport, Running Conseil, and all the specialists of cycles.

[...] From the design of a product by the designers in Sallanches to its production by its 2500 subcontractors mainly located in China, it takes 5 months for clothes and 18 months for a technical product Go Sport's STP As Go Sport is one of Décathlon's main competitor, we find it relevant to study its STP and compare it to Décathlon's. Go Sport's strategy is to be an internationally recognized brands partner and distributor. In-house brands only represent 22 to of its turnover (against 56% for Décathlon). [...]


[...] For the products themselves, all the supplying departments have been modernized: the introduction of bar codes has permitted to track raw materials, finished products. Stocks and the ?just-in-time? have been generalised Environmental : The ecological matter has become an important issue and big companies have to comply with a certain number of regulations Legal : As the boundaries are opening in certain parts of the world (Europe, North Africa, some countries in Asia), the big tendency is to outsource and set up fabrication units abroad. [...]


[...] There are only 250 shops which represent of the market share (estimated turnover of 120 million Tendencies of the market Due to the implementation of the 35-hour week, French people have more time for leisure. Consequently they tend to spend more time practicing sport. Sport according to the gender: More and more French people practice sport on a regular basis and particularly men: 51% of French men practice sport regularly against 43% of French women. Sport according to the social background: Children from middle and upper-class families tend to practice more sport than those from working class families: 83% of children with at least one parent having graduated from college say they practice sport regularly against 53% of those whose parents never went to college. [...]

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