Market Research for Duque Papetiers Gros

The assignment involves conducting a market research study for Duque Papetiers Gros, a company planning to expand to Germany. The report includes an analysis of the German market, highlighting its potential for expansion. A correlation coefficient of 0.73 is obtained, indicating a strong positive relationship between the company's performance and the German market. A feasibility table is also provided, showing average pros and cons of expanding to Germany.

DUQUE PAPETIERS GROS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Explaining overview of Germany's wholesale stationery market...............................................1
TASK 2............................................................................................................................................2
Analysing annual spending on writing and stationery items on per capita basis of European
countries......................................................................................................................................2
TASK 3............................................................................................................................................3
Analysing sales data of recent financial years of firm................................................................3
TASK 4............................................................................................................................................6
Assessing feasibility of the German stationers market for firm..................................................6
TASK 5 ...........................................................................................................................................8
Calculating costs of new building for the business.....................................................................8
TASK 6............................................................................................................................................9
Calculating value of mean of orders...........................................................................................9
TASK 7............................................................................................................................................9
Customer satisfaction..................................................................................................................9
TASK 8..........................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Expansion to nation is crucial strategy which needs to be undertaken by conducting
market research. Present report deals with Duque Papetiers Gros which is engaged in stationery
business in France and want to expand to Germany. Report will provide overview of the
wholesale stationers market along with it annual spending of European countries will be
discussed with graph. Moreover, sales data will be analysed, feasibility of market will be made.
Computation of new building cost will be made, mean value of orders will be attained and lastly
conclusion will be provided.
TASK 1
Explaining overview of Germany's wholesale stationery market
The German stationers market is among the highest spending nation in all the European
nations. Stationery market makes good amount of money as purchasing power of German people
is high making it profitable for the whole industry in effective manner (Müller, 2017). In relation
to this, firms are making good quantum of profits as people spend a lot on the stationery items up
to a high extent. Writing and drawing materials are used in abundant manner by people which
wholesale stationers market favourable to businesses for earning profits in the best way possible.
It can be analysed from the report that around €14.8 billion was annual turnover of stationery
industry in accordance to MGCC report 2016.
Furthermore, €35.2 has been spent by German people on per capita basis benefiting
German economy quite effectually. On the other side, it can be noticed that sales revenue are
minimised due to technological advancement making less usage of paper (Bell, 2017). Apart
from this, stationers market continues to earn profits as cost of intermediaries are reduced up to a
high extent making more profits at disposal of businesses. In addition to this, due to high-income
generating industry, many of the pharmaceutical firms, hypermarkets and supermarkets are
attracted to diversify their operational activities in stationery products. Thus, it can be analysed
that from the facts and figures that German wholesale stationers market is able to produce profits
in the best manner possible by supplying writing and drawing items to people. This makes
feasible for Duque Papetiers Gros to effectively attain profits in Germany as ample of
opportunities are prevailing in the country for firm.
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TASK 2
Analysing annual spending on writing and stationery items on per capita basis of European
countries
Germany is one of the largest economy in the world and has good growth of GDP. While,
it is the highest spending nation in Europe of stationery items. In relation to this, graphical
representation of data has been made which highlights most spending nations on per capita basis
on stationery products on annual basis. Graph is made which will simplify complex data into
simpler one in effective manner. It can be assessed from the graph that Switzerland tops the chart
having the highest money spent by people on annual basis which is evident that €35.5 is spent.
Next to the chart, Germany comes to second-most spending nation having spent €35.2 amount
annually. It can be assessed that third rank is attained by Austria having €35 spending by people
on per capita basis. While, fourth position is secured with amount of €28.3 by France. This
means that France and Austria have considerable difference in total spending on stationery
commodities. It can be interpreted from graph that Slovenia comes at sixth position with
spending of €20.4 having much margin difference in comparison to France.
Switzerland
Germany
Austria
France
Slovenia
Italy
Slovakia
Hungary
Spain
Poland
Croatia
Czech Republic
0 5 10 15 20 25 30 35 40
Spending in €
Illustration 1: Annual spending by European Nations
Next comes Italy with total spending on products such as €18.6. On the other hand,
Hungary comes at eighth rank having amount of total of €9.6 which shows that Hungary is far
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behind Italy in spending on stationery items. On the other side, it can be analysed that Spain has
secured ninth position by spending €8.9 and Poland is behind next position having €8.5 in
effective manner. Moreover, Croatia comes to eleventh position with total spending of €7.9 and
on twelfth position, Czech Republic arrives by spending €7.6 on stationery. Thus, it can be
clearly said that Duque Papetiers Gros should expand to Germany for earning good amount of
profits within the shortest possible time.
TASK 3
Analysing sales data of recent financial years of firm
Sales data-
Mix pie chart-
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Scatter diagram and correlation coefficient-
Interpretation-
It can be interpreted that correlation coefficient and scatter diagram are prepared for the
company which provides clarity regarding sales growth of Duque Papetiers Gros. In addition to
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this, future performance is also calculated with the help of trend analysis. Correlation technique
is being implemented providing relationship among the variables in a better manner. This
statistical technique was developed by Pearson for getting clarity about how much correlation
exist between two or more variables in a better manner (Mucciarelli, 2017). It can be assessed
that sales are being effectively met by firm as sales revenue is increased over the last three years.
This shows that Duque Papetiers Gros would be able to attain desired amount of profits in
effective manner. Germany is the biggest market for stationers and firm would attain desired
revenue.
The feasibility is effectively analysed with the help of correlation coefficient which
provides clarity that whether positive or negative correlation exist between variables. Positive
correlation comes when value is more than 1 and when it becomes less than zero, negative
correlation prevails. The correlation coefficient of firm comes to 0.73 highlighting correlation is
positive. Apart from this, sales are maximising at a moderate rate and is predicted to accelerate in
coming years as well (Baker, 2017). This effectively shows that Duque Papetiers Gros will be
able to initiate healthy operations in Germany and attain desired profits.
Trend Analysis-
Scatter diagram is being chosen and equation is made below-
Equation is Y = 6500 x + 162000
Sales of 2018
Y = 6500 * 4 + 162000
= 188000
Sales of 2019
Y = 6500 * 5 + 162000
= 194500
It can be analysed that business is producing healthy profits in the best manner possible.
Moreover, it shows that sales will be 188000 in 2018 and will further increase to 194500 in 2019
which implies clearly that Duque Papetiers Gros will be able to attain profits in a better manner.
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TASK 4
Assessing feasibility of the German stationers market for firm
Complete the table
Should I expand my business to Belgium & Germany?
Pros Score/10 Cons Score/10
More choice of goods for
customers 2 Funding needs 1
Increased sales revenue 3 Increase in costs 2
Accelerated operations 2
Total Pros 7 Total Cons 3
Average Pros 2.3 Average Cons 1.5
Interpretation-
It can be analysed from the table that business should expand to Germany and Belgium.
This is evident from the fact that Germany comes at second position of the highest spending
nation in whole of Europe (Dörtyol, Coşkun and Kitapci, 2018). People of Germany spend a lot
on stationery products which provides clarity that firm will be able to enhance its position in the
market and develop its share for outreaching rivalries. Sales data of last years clarifies that firm
has plenty of revenue in hand and will be able to attain profits in effective manner.
The pros and cons table is effectively made above whether Duque Papetiers Gross should
expand to Germany or not. Pros includes more wider choice of stationery for customers which
will increase their satisfaction level up to a high extent. On the other hand, sales revenue will be
increased which is another advantage of expanding to nation. Moreover, operational activities
would be accelerated showing good scope of business in the country (Jaillant, 2017). While, cons
are included which shows that requirement of funds will be increased and arrangement of funds
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would be required. Moreover, costs will be increased when expansion will be made. It can be
said that average pros' comes to 2.3 and of cons is 1.5 which means that firm should expand to
Germany as ample of opportunities and growth are being available to business. Thus, it is
feasible for Duque Papetiers Gros to expand to Germany and garner profits.
International standards
ISO 45001 - Occupational Health and Safety
The international standard says that organisation should provide framework for
improving employee safety and reducing workplace risks and hazards. Moreover, it should
provide safer working conditions for employees.
ISO 14000 - Environmental Management
This standard states that firm should protect environment and should not do any activities
which leads to increase in emissions and harmful gases polluting nature in any manner.
ISO 26000 - Social Responsibility
This standard postulate that how firm should behave in responsible manner towards
society in effective manner (ISO 26000 - Social Responsibility. 2018). Moreover, it must
contribute to welfare and health of society.
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TASK 5
Calculating costs of new building for the business
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TASK 6
Calculating value of mean of orders
Testing of Hypothesis
H0- There is no statistical difference between sample mean and order mean of orders
H1-There is statistical difference between sample mean and order mean of orders
z Test,
z = (x – μ) / σ
= 240 - 230 / 43
= 0.23
It can be analysed that at 5 % level of significance is incorporated and hypothesis is
formulated. Null hypothesis is being accepted as it shows that no difference is observed in
variables. This is accepted as value is more than 0.5 and calculated by estimating curve is
normally distributed.
TASK 7
Customer satisfaction
A) Responsive Rate of questionnaire
The questionnaire can be analysed and outcome is being attained that responsive rate is
poor. This means that participants are not answering as per the questions and that too within
stipulated time. It is suggested that purpose and objective behind the formation of questionnaire
should be communicated to people (Stevenson, 2017). This is because participants will not take
interest in furnishing information and thus, purpose should be communicated beforehand to
them. Another advice is that vague and personal questions must not be asked as it will harm
sentiments of people. The questionnaire should also be short and precise. Thus, by incorporating
these recommendations in practice, responsive rate can be improved.
B) Descriptive Statistics
Descriptive
Statistics
CUST
SERVICE QUAL P&S
SALES
STAFF PRICE VALUE
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2 2 3 3
2 4 3 4
1 3 3 2
4 2 4 3
3 3 2 1
3 1 4 1
3 3 2 1
4 4 1 1
2 4 3 1
3 4 2 2
3 1 3 1
2 2 1 2
4 3 3 2
4 4 3 1
2 3 1 4
4 4 4 1
4 1 4 2
3 2 3 4
4 2 3 3
3 1 2 2
Mean 3 2.65 2.7 2.05
Standard
Deviation 0.9176629355 1.1367080818 0.9787209699 1.0990426456
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The table shows that firm should reduce prices of products so that people may be
attracted and higher profits and higher ranking may be gained.
TASK 8
CONCLUSION
Hereby it can be concluded that expansion strategy should be done by conducting proper
and adequate market research so that project may not become failure. It can be analysed that
Duque Papetiers Gros which is planning to expand to Germany should make decision
appropriately. Outcome that can be generated from this report is that firm can easily expand to
Germany as country has second highest consumption of stationery items. Moreover, purchasing
power of people of nation is high making it feasible for company for expansion to firm in
effective manner. Moreover, sales data of past years have been analysed showing that
organisation will initiate healthy profits in new market.
The correlation coefficient shows that 0.73 value is obtained highlighting that Germany
will be feasible for business to conduct its operational activities as perfect correlation exist
between firm in effective manner. On the other hand, feasibility table is drawn showing average
pros and cons of expanding to Germany. It also shows that firm will be able to establish its
market position in the best manner possible. Furthermore, it can be said that Duque Papetiers
Gros has good potential in overall performance over the years and is financially sound as well.
This clarifies that business would be able to succeed in German market with ease.
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REFERENCES
Books and Journals
Baker, J., 2017. The Physical Marketplace. In The Business of Satirical Prints in Late-Georgian
England (pp. 125-148). Palgrave Macmillan, Cham.
Bell, M., 2017. The Economics of Authorship in Eighteenth-Century Germany and
Britain. Publications of the English Goethe Society. 86(3). pp.172-182.
Dörtyol, I. T., Coşkun, A. and Kitapci, O., 2018. A Review of Factors Affecting Turkish
Consumer Behaviour. In Marketing Management in Turkey (pp. 105-139). Emerald
Publishing Limited.
Jaillant, L., 2017. Cheap Modernism: Expanding Markets, Publishersa Series and the Avant-
Garde. Edinburgh University Press.
Mucciarelli, F. M., 2017. Employee Insolvency Priorities and Employment Protection in France,
Germany, and the United Kingdom. Journal of Law and Society. 44(2). pp.255-282.
Müller, L., 2017. British and German Textbook Publishers: A Guide to Archive Collections.
Stevenson, J., 2017. British Authors Published Abroad.Literature Compass. 14(4). p.e12389.
ONLINE
ISO 26000 - Social Responsibility. 2018 [Online] Available Through: <https://www.iso.org/iso-
26000-social-responsibility.html>
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