Schuh by https://padlet.com/josh_bg/iz178ma4xeur Marketing Strategy Assignment en-us 2019-11-04 13:34:51 UTC 2019-11-25 17:55:42 UTC hello@padlet.com https://padlet.net/icons/png/1f45f.png Definition of the Market josh_bg https://padlet.com/josh_bg/iz178ma4xeur/wish/406208841 Schuh are predominantly a branded shoe stockist who sell over 80 different brands of shoes.
Therefore, Schuh are in the footwear retail market specifically in the UK.
Within this market there a are number of competitors such as, ASOS, Clarks, Topshop, and JD Sports, as well as the brands that Schuh stock such as Nike, Adidas, and Vans. 
The UK footwear market only consists of private end customers and therefore, does not take into account work and safety shoes. The UK market is worth 11.025 billion annually and is the second largest sector of the fashion market behind apparel.
 ]]> 2019-11-04 13:35:32 UTC https://padlet.com/josh_bg/iz178ma4xeur/wish/406208841 Market size, Growth rate and Profitability josh_bg https://padlet.com/josh_bg/iz178ma4xeur/wish/406209661 According to statista.com
  • Revenue in the UK Footwear market amounts to £11.025 billion in 2019. The market is expected to grow annually by 1.1% (CAGR 2019-2023). 
  •  The market's largest segment is the segment Leather Footwear with a market volume of £5,362m in 2019.  
  •  In relation to total population figures, per person revenues of £163.25 are generated in 2019.
Schuh's financial report for 2019 shows that the company has had a poor year financially with the company only recording a £288,418,000 million turnover which is a 7% decrease from 2018 where their annual turnover was £308,511,000. This has had an adverse effect on their profitability as well with Schuh recording a loss of £5,242,000.

]]> 2019-11-04 13:36:57 UTC https://padlet.com/josh_bg/iz178ma4xeur/wish/406209661 Consumer Trends josh_bg https://padlet.com/josh_bg/iz178ma4xeur/wish/406209955 The Finance director of Schuh  David Gillan-Reid commented on Schuh's £5 million financial loss stating that, 'Brexit uncertainty/political instability, and consumer spending being lower on footwear and apparel,' were some of the reasons for the loss. 
However, according to statista.com the UK footwear market actually increased its total revenue by £123,000,000 over the past financial year. 
Therefore, this seems to suggest that consumers are increasingly buying more footwear products just not ones that Schuh are selling. 
This would suggest that consumers have been increasingly buying more exclusive products which Schuh do not offer such as, Yeezy's and Off-White collaborations with Nike and Addidas as well as other household brands. ]]> 2019-11-04 13:37:32 UTC https://padlet.com/josh_bg/iz178ma4xeur/wish/406209955 Market space (External Environment) josh_bg https://padlet.com/josh_bg/iz178ma4xeur/wish/406210090 As mentioned before Schuh have a number of competitors within their market such as, ASOS, Clarks, and JD Sports.
However, there are smaller sole traders that Schuh need to be aware of too. For example, in Exeter where Schuh have a store there are also the likes of Chuckle Shoes and Hotter that compete for market share. 
As a result of this competition and after looking at the figures in Schuh's annual report Schuh only have a 2.62% total market share of the UK footwear market.

]]> 2019-11-04 13:37:47 UTC https://padlet.com/josh_bg/iz178ma4xeur/wish/406210090 Competitor Analysis josh_bg https://padlet.com/josh_bg/iz178ma4xeur/wish/406210332 Schuh's biggest competitor is Clarks.
Strengths:
Is the fourth largest footwear retailer in the world. It is also one of the oldest (being founded in 1820) which means it has more heritage and notoriety.

Has an annual revenue of £2.2 billion. This equates roughly 19.9% market share.

Clarks produces all of the products that it sells therefore, it has more control over its supply chain as well as being able to produce shoes specifically tailored at a niche in the market. 

Weaknesses:
Clarks profit has also fallen to such an extent that they have been forced to close down stores.

A consequence of producing their own products is that they struggle to reach certain demographics as they do not sell brands such as NIke and Addidas so have left holes in the market. 



]]> 2019-11-04 13:38:10 UTC https://padlet.com/josh_bg/iz178ma4xeur/wish/406210332 KSFs (Competitive Success) josh_bg https://padlet.com/josh_bg/iz178ma4xeur/wish/406210477 One of Schuh's competitive successes is that it offers a lower price point than its competitors. For example, Schuh sells Air Force 1's at £80 where as JD Sport sells them at £85.

Another competitive success is that Schuh has a year round sale which includes new products each month. This sales normally offers around 30-60% off on all the products that it includes. For example, Schuh offers Adidas Yung-1 at £54.99 down from £90 which is a 38% discount. ]]> 2019-11-04 13:38:26 UTC https://padlet.com/josh_bg/iz178ma4xeur/wish/406210477 josh_bg https://padlet.com/josh_bg/iz178ma4xeur/wish/409505885 2019-11-11 15:26:38 UTC https://padlet.com/josh_bg/iz178ma4xeur/wish/409505885 SWOT Analysis josh_bg https://padlet.com/josh_bg/iz178ma4xeur/wish/410341377 Strengths:
Have a competitive price point
Offer year-round sales
Positioning of outlet stores are effective

Weaknesses:
High rent for stores
Do not sell as wide a range of products as competitors
Lack of advertising 

Opportunities:
High demand for products especially seasonally with Christmas coming up
Market share to gain as a result of declining sales for Clarks

Threats:
Increasing Ecommerce makes stores become less profitable
Increase in luxury shoes market reduces sales for discounted brands

]]> 2019-11-13 01:21:13 UTC https://padlet.com/josh_bg/iz178ma4xeur/wish/410341377 PESTLE Analysis josh_bg https://padlet.com/josh_bg/iz178ma4xeur/wish/410486224 Political:
Brexit causes issues with expansion into Europe. This has already had a negative effect with Schuh shutting down stores in Germany.

Economic:
With the uncertainty of Brexit there will likely be a reduction of consumer spending therefore, there maybe a reduction in sales and revenue.

Social:
Increasing in luxury shoe market is reducing demand for non luxury goods

Technological:
Increase in ecommerce and the transportation will increase speed of delivery.

Legal:
Increased in tariffs and quotas as a result of Brexit. As well as laws on how shoes are produced.

Environmental:
Effects of how shoes are produced and the environmental impact of shipping shoes. ]]> 2019-11-13 11:12:36 UTC https://padlet.com/josh_bg/iz178ma4xeur/wish/410486224