The aim of this project is to bring the store Women'Secret to the Irish-owned retail store A-Wear in the form of a franchise.

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International Marketing: B2B

To

Presented by:                                                                         20/02/2004

Julie Garsiot – 01991165 – [email protected]

Neasa Ní Dhomhnaill – 00064530 – [email protected]

Sandra Urban – 03103559 – [email protected]

To: Robert McMahon

Dublin Institute of Technology


Executive Summary

The aim of this project is to bring the store Women’Secret to the Irish-owned retail store A-Wear in the form of a franchise. Women’Secret products include lingerie, sleepwear and homewear which would be an ideal strategic fit for A-Wear which sell high street women’s clothing for 15-34 year-olds. A-Wear is already involved in B2B franchise operations so this is the ideal next step for the recently renovated stores.

With the usage of the Euro and people travel more frequently Irish people feel more European. Consumers are beginning to broaden their tastes, and demand more variety in the retail market. At the moment the Irish market is full of U.K. competitors so now is the ideal time for more European brands to start-up in Ireland. With the increased awareness of the Spanish lifestyle Irish people are more open to different varieties of food, drink and of course clothing.

A-Wear is already well established in the Irish market with 21 stores nationwide. This provides Women’Secret with an existing clientele base with the possibility of expanding in the future. Brand image is very important in today’s competitive world. Therefore Women’Secret needs to create an intensive advertising strategy in order to establish the brand in the Irish market. This includes initial launch advertising, and annual advertising in glossy magazines targeting potential clients.

Projected sales for the franchise in an A-Wear store reach €175,711.11.


Table of Contents


I/ Current Product Situation

Women’Secret produces underwear, sleepwear, “homewear” (relaxing clothes to wear around the house), cosmetics, accessories and hosiery. The products are designed with funky patterns, comfortable and elegant materials of top quality and at prices affordable to students and working women alike. With sales of over €79 million in 2002 Women’Secret is the leader in its domestic market (Spain). As sales are growing annually by 4% and with international expansion on the increase the most logical step forward is to enter the Irish market. With the recent opening of retail outlets such as Zara, and Pull and Bear, it is clear that Ireland is fast becoming more globally aware to foreign trends and tastes.

        As A-Wear is already involved in B2B operations providing their customer with services such as nail bars, hair accessories (fun hair extensions) and cafés (Insomnia), Women’Secret would be an ideal addition to the retail outlet and a great strategic fit. Customers would be able to buy underwear, to go with their new outfit bought in A-Wear, all in the one store. As many other stores offer underwear A-Wear needs to keep up with the competitors by providing trendy, comfortable, good quality underwear at affordable prices.

        Women’Secret products are already adapted for the Irish market as all labels show European sizes, American sizes and Irish/English sizes. Women’Secret offers a range of products from basic to attractive garments, which satisfy the needs and tastes of contemporary women. There will always be a demand for underwear so even though fashion may come and go Women’Secret will be around for years to come.

        Customers will benefit from the addition of Women’Secret as the A- Wear product range increases and they have more choice.


II/ Company Situation

Women’Secret was founded in 1993 in Spain and is one of the many brands carried by the Cortefiel Group (Grupo Cortefiel). Other brands in the group include Springfield, Milano, Cortefiel, Douglas, and Werdin. Grupo Cortefiel operates a consolidation strategy on a short-term basis, with their international strategy in the form of franchising. Sales for the Group in 2002 reached €840.96 million and they employ 7,936 employees.

 Women’Secret has 104 stores in Spain and 46 abroad. In total 718 employees are employed worldwide. Sales reached €79.07 million in 2002 compared to €61.45 million in 2001. Women’Secret sales in 2002 were 9.9% of Grupo Cortefiel’s total sales.

        Women’Secret in Spain, France, Portugal, Germany, and Belgium are run under direct investment and management. Women’Secret’s plan to internationalise continues with Grupo Cortefiel’s strategy to franchise. This minimises investment risk, boosts sales, increases their visibility, and the Women’Secret brand image on an international level. 2001 saw franchises open in Australia, Chile, Peru, Thailand, Russia and Yugoslavia. The annual growth in sales is 4%.

III/ Current Market situation

Targeted segment

                        

Source: Central Statistics Office (CSO)

Our segment represents 31.69% of the entire Irish female population.

According to the last yearbook of statistics in 2003, 1,122,821 people are living in county Dublin, 578,746 of which are women.

  • In 1998, clothing expenditure per head was €572.
  • Earnings

Source: Central Statistics Office (CSO)

  • Purchasing Power:         2002: €38.52

1940: €1.57

Estimated amounts required to purchase at retail prices the same quantum of goods and services as € in 1940. (CSO)

  • Disposable income and purchasing power are important.

According to the CSO, two demographic sub-groups in Ireland exist concerning women’s shopping habits in 2002.

  • Discerning, label-seeking, stylish, well-dressed and fashion-conscious clothing consumers.
  • Bargain-hunting, shopaholic, individualist, practical and sporty consumers.

Ireland has a relatively young, well travelled and well paid population that has developed more cosmopolitan tastes.

As low-fare airlines are allowing frequent trips throughout Europe, women increase their awareness of brand names. They become more demanding. The demand for well designed, quality garments at reasonable prices has increased in recent years, especially in the major centres of population.

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Clothing is often seen as an impulse purchase, thus locations for retails must be in high traffic areas in order to enhance a greater potential purchase sales.

Pedestrian footfall figures from CB Richard Ellis Gunne for the third quarter of

2003 show a particularly fierce competition between Grafton Street and Henry Street. On Thursday’s late night shopping, both streets register an average of 7,500 people per hour. However, on Saturday afternoon, Grafton Street is ahead with 20,908 people per hour and the north side’s Henry Street only records 17,138 per hour.

Clearly with the city’s population heading ...

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