Fnac Analysis

Topics: Mobile phone, Republic of Ireland, Marketing Pages: 19 (5724 words) Published: April 18, 2012
Table of contents
1.1. A company, a concept4
1.2. Micro-environment5
2.1. Opportunities8
2.2. Threats12
3. 1. Segmenting, Targeting, Positioning14
3.2. Entry Modes Strategy14
3.3. Mix Marketing15
3.3.1. Products16
3.3.2. Price16
3.3.3. Place17
3.3.4. Promotion18

Fnac is the first retailer of cultural and technological goods in France and others European countries. However it is not well-known in Anglo-Saxon countries where the competition faces difficulties because of its lack of adaptation to the environmental changes. That is why we plan the launch of Fnac in Ireland. To think properly to this setting-up, we will first present the company, its concept and micro-environment. Then, we will analyse the market, and present the global marketing strategy Fnac should implement to achieve its Irish establishment. 1. FNAC PRESENTATION

1.1. A company, a concept
Subsidiary of PPR, Fnac is leader in the cultural goods and leisure distribution marketplace where it is implanted. It offers in a unique place, a large selection of six types of products: books, music, computing, audio, video and photography. Fnac has also developed services in its stores:

* Ticketing for shows and leisure: music, dance, theatre, opera, exhibitions, festivals, sports, amusement parks … * Travel: events, wellness and relaxation, family vacation ... * Gift Cards.

For a more detailed presentation, please refer to Appendix n°1. 1.2. Micro-environment
To analyse the micro-environment of Fnac we will identify its strengths and weaknesses. 1.2.1. STRENGHTS
* Thanks to its belonging to the international group PPR (the group has a turnover of € 12,227 billion in 2011, and 38 374 employees), Fnac has a financial security and the capacity to invest in new projects. * Fnac employs more than 14 000 collaborators in the world. * Mix marketing :

Fnac has a unique concept and offers several products in one place (books, CDs, DVDs, IT equipment, hi-fi, video, and photography). The company has an innovative strategy. In its “Laboratoires Fnac”, it develops new products and concepts according to trends. Indeed, in 2012 Fnac plans to open 20 « univers enfants » and 24 « univers services”. This is part of its strategy to develop more appealing stores and improve the purchase experience. Fnac also has a strong position on Internet. Fnac.com is one of the first French merchant website, with a day to day audience of 750 000 single visitors. FNAC has a very attractive offer. In fact, it offers at least a 5% discount to its loyalty program members. The company has 85 stores in France and 72 abroad. It develops its network with the opening of franchises and “Périphérie” format stores in 2012 (with the creation of smaller shops -convenience stores- thanks to the agreement with Relay for railway station setting-up).It aims to make its network denser to answer customers who search easier access stores.

The company reinforces its position on the web by setting-up fnac.com terminals in stores to win over new customers and enlarge the channels of distribution. Fnac also plans the launch of its website for smartphones to acquire new customers. 1.2.2. WEAKNESSES

* The company suffers of the global crisis; its turnover has decreased in 3.2% in 2011. In January 2012, PPR has announced an € 80 million savings plan that aims to reduce the global expenditures of Fnac. * Fnac’s savings plan forecasts to remove 310 employees in France and 200 abroad. This could damage the brand equity and the quality of its relationships with its employees and by extension with its customers. * Fnac has an aging image because the brand exists for a long time and now has a lot of...
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