1) Industry analysis: a growing market a. Definition of the shoe distribution industry b. Market trends in the last three years c. The basic business models
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2) Description of Spartoo a. Main products b. Main geographical markets
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3) Marketing mix in France a. Main competitors b. Analysis of the marketing strategy in France c. Analysis of the perceived benefits for consumers
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d. Analysis of the performance of the product in relation to customer expectations p.8 e. Analysis of the main strategies for retaining consumers p.8
f. Analysis of the main strategies for moving specific segments to higher ranks in terms of profitability per segment p.9
4) Promotional strategy in France a. Analysis of the off-line promotional strategy
b. Analysis of the on-line promotional strategy, in particular social networks p.10
5) Methodology a. Main sources b. Complete list of references
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1) Industry analysis: a growing market
a. Definition of the shoe distribution industry
We can categorize shoes in many different ways. You can categorize shoes according to genders, age, style or activity. The shoe business has a wide customer basis. How does the shoe business work? First of all brands such as Adidas or Nike have opened their own retailer store and have their own manufacturers. Shoes can also be sold in department stores, wholesalers, etc... Today the new business canal of distribution is internet. There are 3 group types in the distribution of shoes on internet: the pure players, the generalists’ pure player and the traditional shoe seller also called click and mortar. We call the pure players, the companies which operate only on internet and in our case only in the distribution of shoes. Spartoo, Zalendo, Salenza and Javari are the most well-known pure players in France. The generalist pure players are Pixmania or Amazon who are wholesalers on internet and for so also sell shoes on the web. The traditional shoe seller, also named click and mortar, are well-known physical stores which in order to not lose market shares have launched their own e-business website. We can find in this category shoe retailers such as Minelli or la Halle aux Chaussures. In 2011, pure players generated 47% of shoe sales on internet, 44% by the generalist pure players and 9% by the clicks and mortar3.
b. Market trends in the last three years
During the last three years, French have turned more and more towards internet in order to purchase food, clothes, plane tickets, etc. In France, there are 41 million web users and within these users, 31 million purchased an item on internet in 20121. The number of sales on internet has exploded these last three years. Indeed in 2009, 25 billion of euros were spent on internet in France, 31 billion euros in 2010 and in 2011 37.7 billion of euros1. 1
FEVAD. "Chiffres Clés Vente à Distance E-commerce." www.fevad. com. N.p., 2012. Web. . 3
Vautard, Céline. "Internet : Le E-commerce à L'assaut De La Distribution De La Chaussure." Www.fashion-dailynews.com. Fashion Daily News, 02 Feb. 2011. Web. .
The trend during the last three years shows that more and more French uses internet to buy. In 2008, French would buy for an average of 9.8 items on internet at for an amount of 900 euros1. In 2011 that average was 13.7 transactions in average and for an amount of 1,230 euros1. The reasons of this new way of consuming are multiple. First of all the payment on internet is more and more secured. Security of payments was a main issue for the consumers, who were afraid to type down their credit card number and code on internet. Some new ways of payments have appeared such as Paypal which is used by 25% of the buyers1. Nevertheless, consumers still majorly use their credit cards due to better security and trust into the websites. The other reason for the increase of e-business is the economic crisis and...