Jjb Marketing Plan

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  • Topic: Stock, Companies listed on the London Stock Exchange, JJB Sports
  • Pages : 4 (705 words )
  • Download(s) : 496
  • Published : January 6, 2011
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JJB Sports PLC The UK’s largest sports retailer
Buy or Sell stock and Why? John Kut February 2004

Conclusions
My Recommendation: BUY • Highly cash generative • Sound fundamentals • Shareholder value increasing • Potentially undervalued • Strong focus and strategy on core business • Strength and experience of management

Introduction
• “Have you shopped at JJB Sports before?” • “If you wanted to buy sportswear, which shop would you go to first?” JJB Sports JD Sports 40% 10%

• “Can you name any sportswear or sports equipment shops you know?” JJB Sports NikeTown JD Sports 70% 37% 30%

Quick Facts
• Mid-cap FTSE 250 • UK’s largest sports retailer – 450 stores (>4 million sq. feet) – 45% OOT superstores, 35% high street, 20% in-town superstores • Products – Clothing 40% – Footwear 30% – Equipment and accessories 15% – Replica Kit 10% – Golf and cycles 5% • Market Share – 2001 (22%) → 2003 (25%) Source: Sporting Goods Intelligence

SWOT, PEST and 5 Forces
• Strengths – Size – Relationships – Fundamentals – Management – Strategy • Weaknesses – Differentiation – Strategic fundamentals – Shareholder relations – Diversity • Opportunities – Core optimisation – Expansion – Faltering competition – Sporting events – Health and fitness • Threats – New competition – Economic climate – Consumers – Regulatory / Governmental

Strategy
• Mission
“JJB sets itself out to be the family sports store: clothing, footwear (and) sports for the whole family”

• Old strategy
“(previously) our whole ethos has been increasing the number of units: expansion, expansion, expansion”

• New strategy:
• Renewed focus and investment on core JJB business • Responding to shareholders • Responding to threats with sound business sense • Expansion of their successful combined superstore and health club format

Strategy
• Renewed focus and investment on core JJB business
– Closure of unprofitable stores (16 in 2003) including Oxford Street and Dutch stores (£3 - 4m per...
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