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retail market - the process of goods and service being sold by a business to a customer.
the retail markets environment is a fast moving environment and is in a transitional period due to the rise and increase in use of digital technology. this has allowed less barriers for business to enter into the market and therefore has made it easier. Mothercare have benefited from this change in the retail market as a majority of Mothercare's sales come from online purchases however this has increased competition for the company.

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Market size, growth rate and profitability  

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Market size, growth rate and profitability  

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PESTLE

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Mothercare's main competitors in general as a brand:

·       Mamas & papas

·       Argos

·       Kiddicare

·       Supermarkets – tesco, sainburys, asda

Dominant economic features:

Rivalry amongst firms: Mothercare is an established brand however the company faces strong competition from other retailers for example from retailers such as Mamas & papas, Hamleys, Argos, Kiddicare and supermarkets such as Tesco, Sainsburys and Asda. These retailers make competition for Mothercare tough as they sell the same products as Mothercare even though some operate rate at a lower scale. Hence the company has been struggling with its sales in the UK even though the company has showed strong performance internationally.

Bargaining Power of Suppliers: Mothercare sells the same products as it sells online as well as what it sell in stores,
the company operated in multiple countries and therefore has and needs to keep a good relationship with its suppliers and has the choice to change therefore has a low bargaining power with it suppliers

Bargaining Power of Buyers: As there are other retailers selling similar products as Mothercare, customers have more choice also the increase in the availability of products online Mothercare faces high bargaining power from its buyers.

Barriers to New Entry: Mothercare is an established brand across Europe, Asia and the Middle East, there are little barriers of entry for retailers trying to enter the market in which Mothercare operates within. However, countries from the Middle East and Asia face trade restrictions however the countries do not face barriers to start up online businesses and this is increasing amongst developing countries.

Threat of Substitute: In the present generation internet has practically no feasible substitute, hence e-commerce is a safer platform from substitute technology perspective and makes it easier for companies who are looking for this medium as an option of entry. Hence threat of substitutes is low.

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Segmentation
Mothercare target to a particular segment as brand a there main target is expectant mothers
they are apart of the retail market and the segment of the retail market they target is the baby and toddle market

Targeting

Typical customer - expectant mothers, mothers, grandparents and children under the age of 8 years

Targets mothers of all income from low to high as the company sells a range off products from the Mothercare own brand which is relatively affordable to high market brands depending on the product.

Positioning

Mothercare have positioned there brand to appeal to there main target market

Marketing mix

Price – Mothercare sell there own brand products at a lower price to cater to the lower income mothers that they market to. Also have a higher branded products which target mothers with more income.

Product – products range from all types which aid new born babies, children and mothers, expectant mothers for example buggies, maternity wear, babies clothing – these products are targeted for the typical customer.

Promotion – event for expectant, first times mothers, promote new product to expectant mothers- vouchers – get feedback from events, online promotion mainly on social media – YouTube page where they show new products.

Place – 152 stores in the UK and 1,302 Internationally , online – most sales come from online due to it being convenient especially for expectant mothers

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Mothercare has been successful because:

Mothercare offers a range of products and services to  its customers which are available both in store and online.

The service provided to customers within stores is unique as employees are trained and are able to give advice to customers about the products sold in store.

The company has monthly events for expectant mothers where they can gain more knowledge about becoming first time parents

Mothercare have been successful through them becoming a digitally led business with there website bringing a majority of there sales

The products and services the company offers, offer style, quality and innovation as the latest products in the baby market are sold.