The following document will outline potiential new business opportunites for Mimco and also investigate what the objectives are of these opportunites and what stragagies will be implemented to generate sales and revenue growth. 1.0 Mimco Environmental Analysis
1.1 External Macro Influences
Marketing Environment Category
| Specific Trend, Change or Event
| Monitoring Information Source
| More women are choosing careers over family, therefore they have more disposable income. The median age for women to get married today is 28, which means there are many young women in Australia with a significant disposable income to spend on them selves.
| Economic Conditions
| Consumer spending appears to have turned the corner following the strongest monthly growth in sales in 18 months, according to the latest Commonwealth Bank Business Sales Indicator (BSI).Mimco is considered a shopping good, therefore sales can be influence by interest rates, unemployment rates, rate of the Australia dollar. The stage of the business cycle, the economy is moving from rescission to recovery.Mimco ‘s CEO, Iain Nairn, has previously discussed the importance between balancing cash flow in and out of the business very closely with sales retails figures. In tougher economic climates where sales have been forecasted lower, Narin has managed this by reducing orders and production costs during this period.
| Internal reports, Income Statements, Balance Sheets, Profit & Loss Statement, Sales data.External sources, Retail Trend Data, Financial Figures, Market Trend Data.www.abs.gov.au
| In fashion, it is all about brand and product; hundreds of billions of dollars are spent each and every year in the fashion industry. Indirect competition from every other firm trying to win the customers purchasing power. Monopolistic competition – many competitors, Mimco’s product is differentiated by quality and brand, predominately has control over the price, easy to enter into the market.
| External Share Market reportsInternal Share Market & Market Growth metrics
| Social & Cultural Forces
| Being a fashion accessory Mimco leverages off consumers who are happy to spend their income on experiential goods and services such as personal appearance products, and those consumer who live for today rather than prepare for tomorrow. Significant factor to its target market is that well over half of all women are now in the workforce therefore they also have different needs; women working outside of the home have different needs for clothing from those working at home. Impulse buying trends may also have an effect on Mimco’s market as they attract customers with sales promotions through their websites, placing limited time only promotions on to encourage fast purchase decisions. The economy has influenced impulse buying, there appears to be a new trend were it is more socially acceptable to be seen saving money rather than spend it.
| External Reports highlighting were consumers are spending their money. Internal Surveys through on line website members
| Political & Legal Forces
| Monetrary and fiscal policies can have a major influence on the spending trends of consumer, particular in the fashion industry as fashion products are generally classed as shopping goods rather and convenience goods. More recently as the Australia dollar increased so did on line shopping for overseas products, this triggered debate as to whether GST should be imposed on line shopping. This would impact Mimco as they have an online shopping presence.
| The digital economy affects everybody, particularly retail, retailers will need to adapt to the new environment of the rapidly expending trend of on line shopping. In early 2011 about 25% of mobile users are shopping online with their mobile, eBay reported an item is bought from a mobile every 15 seconds. The online economy is booming for some online markets...
References: 7.1 Rix, P. 2011. Marketing a Practical Approach, McGraw-Hill Australia Pty, Ltd
7.2 Smart Company http://www.smartcompany.com.au/retail/witchery-and-mimco-push-ahead.html (accessed 17 March 2011)
7.3 Digital Outlook http://www.digitaloutlook.com.au/article/mimco (accessed 17 March 2011)
7.4 Taboo http://www.taboo.com.au/taboo_campaigns_mimco_ss10.html (accessed 19 March 2011)
7.5 The Report http://www.theprreport.com.au/2010/11/taboo-group-use-bloggers-to-help-launch-fashion-brand-mimco/ (accessed 19 March 2011)
7.6 NAB http://www.nab.com.au/wps/wcm/connect/nab/nab/home/about_us/8/5/32 (accessed 20 March 2011)
7.7 CBA http://www.commbank.com.au/about-us/news/media-releases/2011/180311-business-sales-indicator.aspx (accessed 20 March 2011)
7.8 Budde http://www.budde.com.au/Research/Australia-Digital-Economy-E-commerce-Trends-and-Statistics.html. (Accessed 20 March 2011)
7.9 MIMCO website http://www.mimco.com.au (accessed 20 March 2011)
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