Lecturer: Keith SeedWord Count Including appendix one: (excluding references)
AbstractOn the 4th of February 2010 the BBC reported that borders-based Pringle of Scotland has recorded losses in excess of £9m for the third year running. Considering Pringles rich heritage in knitwear and a well-documented history of supplying some of the most luxurious clothing item available since the 1800’s, these figures beg the question ‘where has Pringle gone wrong, and what seems to be the problem?’.
Devising from the PESTLE, Porter Five Forces and VRIN models, an analysis model is developed. This model indicates the current issues and challenges Pringle faces. Suggestions were then formulated based on the analysis model and other reference to relevant case studies and academia relating to Pringle.
During this report the PESTLE analysis unearthed some interesting findings which shows fluctuations in the exchange rate due to crashing currency around the globe could create a financial problem in terms of PoS’s import and export premiums. This report finds that these factors as well as the well documented rise in the price of cotton (independent.co.uk) and other ‘luxury’ materials has the potential to impact sales if PoS were forced into spreading the cost of this through their products and onto their customers to a level which was deemed unacceptable by its consumers.
A report by Mintel,2011 indicates that unemployment figures have dramatically risen as a result of the 2007 economic recession and reports that 51% of consumers are spending less on the purchasing of clothes. This huge drop in % in spending creates a hostile environment for PoS and increases the difficulty for luxury brands as a whole to operate in.
This report analysis Pringles past as well as its present it terms of strategies and issues the organisation faces. Furthermore it provides analysis on its findings suggesting options
References: Barnett, T. Bass, K. Brown, F, Hebert, J. (1998). "Ethical Ideology and the Ethical Judgments of Marketing Professionals." Journal of Business Ethics May: 715-723. [Last accessed: 5th December 2011] JSW (2011) [Last accessed: 5th December 2011] Mintel (2011) “Clothing Retailing - UK - October 2011” [Last accessed: 6th December 2011] Mintel (2011) “Clothing Retailing - UK - October 2011 – Benetton” Wallop, H. (2009) Huge job losses predicted in retail sector. Available at: http://www.telegraph.co.uk/finance/recession/4108242/Credit-crunch-Huge-job-losses-predicted-in-retail-sector.html [Last accessed: 4th December 2011]