Analysis of Wholesale Stationers Market in Germany

This report analyzes the wholesale stationers market in Germany, including trends, annual spending, and the feasibility of expanding operations in European countries. It also provides insights on improving survey response rates and customer satisfaction.

Report for Duque Papetiers Gros

Report for Duque Papetiers Gros 2017
1. Introduction
In the recent times, German stationary sector is growing with the very high pace. Now,
there are several stationers who provide customers with suitable and innovative products or
services according to their requirement. This project report is based on the case scenario of
Duque Papetiers Gros which offers stationery product or services to the local schools, small
shops and offices. Such business unit offers several stationery products or services to the
customers namely printers, office furniture etc. This business organization is highly known for
its trustworthiness and reliability pertaining to pricing as well as quality of offerings. On the
basis of case situation, with the motive to enhance customer base and attain success Duque is
planning to explore operations in European countries. In this, report will provide deeper insight
about the trend exists in the wholesale stationery market and annual spending on material per
capita. Further, it also depicts whether plan in relation to expanding operations in European
Countries will prove to be beneficial or not. Report also presets the way through which survey
responsive rate can be enhanced.
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Report for Duque Papetiers Gros 2017
2. Analysis of Issues for Duque Papetiers Gros
2.1 An Overview of the Wholesale Stationers Market in Germany
Report published by the Association of German Stationary Brand shows that, during the
period of 2014 and 2015, inclining trend has assessed in the sales of German stationary market
by 3.5%. This report presents that demand for stationary products or service, at home level,
increased by 2.5%. On the other side, in the context of foreign market, demand level increased
from by 5%. Further, by doing assessment, it has also identified that majority of stationery
brand approximately 70% attained benefit from increasing sales level or trend. This aspect
shows that at both domestic and global level German stationary brands have positioned
themselves prominently (Schmidt, 2016). Along with this, it has found that stationary brands
have gained high market share pertaining to the product such as writing instruments over the
private labels.
In the stationary sector of Germany, large number of companies is operating, around
2200, which offer innovative products or services to the customers. Research results show that,
out of 2200, half of the companies having annual sales less than €500000. Such companies are
mainly offering papers, office supplies and writing instruments to the customers. Currently,
decreasing trend has found in the number of wholesale stationary companies due to high
merger and acquisition activity. Besides this, in the current times, due to the reduction in the
number of intermediaries scope of German wholesale market has increased to a great extent.
Thus, considering the current trend, it can be depicted that by laying emphasis on innovative
offerings stationers which are operating in wholesale market can attain success.
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Report for Duque Papetiers Gros 2017
2.2 Annual Spending on Writing/Drawing Materials per Capita
Tabular and graphical presentation clearly shows that German stationery sector is
continuously growing. Trade Association for Office Supply and Writing material has
published or presented in their report that annual turnover of the sector accounted for more
than €14.8 billion. Further, report shows that spending of each individual in stationery products
imply for €182 per annum. Further, graphical presentation clearly exhibits that approximately
€35.5 are spending by the customers in writing and drawing material. In terms of spending in
the stationery products or services Germany has secured second position in comparison to
other countries come under European Union. In the context of France and Germany come
under EU, annual spending per capita in drawing materials accounts for €35.2 & €28.3
respectively. Thus, for enhancing the demand of customers and thereby revenue Duque needs
to develop or undertake competent promotional strategies. Further, emphasis also needs to be
placed on the online selling or distribution. Now, companies prefer to place order for the
products or services via online means as it offers high level of convenience to them. Apart
from this, report presented by HSBC entails that declining number of pupils by 11.9% will
negatively impacts the revenue and profit margin of stationary sector.
Writing
instruments
Production Year on
Year
Change
Export Year on
year
changes
Import YOY
change
Fountain
pen
45 4.7 103.1 9.4 9.5 -7.8
Ballpoint
pen
103.6 20 173 4.3 97.8 23
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Report for Duque Papetiers Gros 2017
Rollerball
pen
164.8 3.9 72.3 4.6 47.2 143
Felt-Tripped
pen
183.2 3.3 205.8 3.5 50.9 9
Technical
pen
1.8 12.5
Mechanical
pencils
11.3 -2.6 18.8 -16.8 5.8 -15
Pencils 102.7 7.7 40.1 14.6
Total 509.7 3.2 675.7 4.6 252.3 6.5
(Source: Schmidt, 2016)
2.3Analysis of Duque’s last three financial years of sales data (2015-2017)
Evaluation of sales figures
Tabular presentation depicted in appendix 1 clearly shows that using sum formula total
of sales revenue can be assessed. Further, as per the case scenario to evaluate over the year’s
sales growth trend evaluation has been done. From evaluation, declining trend has found in the
sales revenue of Duque such as -2.20% at the end of 2017. On the other side, in the accounting
year 2016, sales revenue of the firm was 10.30% respectively. The main reason behind lower
or negative revenue in 2017 was lower demand for printer cartridges and general office
supplies. Hence, for enhancing sales revenue Duque requires to make focus on promotional
aspects which in turn help in developing awareness among the large number of customers and
entice their decision making. Further, using budgetary control tool such business unit control
cost and thereby becomes able to generate high revenue by offering services at lower or
suitable prices.
Pie chart
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Report for Duque Papetiers Gros 2017
14%
15%
10%
14%
16%
15%
16%
12%
13%
10%
15%16%
15%
18%
Pie Graph
printer cartridges
general office supplies
low-cost printers
office furniture
shredders
paper-based supplies
writing/drawing materials
Correlation analysis
Year (x) Total sales (in €) (y)
2015 165,000.00
2016 182,000.00
2017 178,000.00
Correlation between x and y 0.73
2014.5 2015 2015.5 2016 2016.5 2017 2017.5
155000
160000
165000
170000
175000
180000
185000
165000
182000
178000
f(x) = 6500 x − 12929000
R² = 0.534810126582278
Scatter chart
Total sales
Linear (Total sales)
Statistical evaluation, correlation analysis, shows that r= 0.73 which means moderate
relationship takes place between year and sales value (Zheng and et.al., 2017). On the basis of
this, both the variables will move in a similar tandem in the upcoming time period. In other
words, as year passes, sales revenue of firm will increase and contributes in the organizational
success.
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Report for Duque Papetiers Gros 2017
Sales trend assessment
€6500 (x) + €162000
S. No. Year (x) Total sales (in €) (y)
1 2015 165,000.00
2 2016 182,000.00
3 2017 178,000.00
4 2018
6500 (4) + 162000
= 188000
5 2019
6500 (5) + 162000
= 194500
By doing trend analysis, it has assessed that in the year of 2018 and 2019 sales revenue
will be €188000 & €194500 respectively.
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Report for Duque Papetiers Gros 2017
2.4Feasibility of Expanding to Germany & International Standards
a.
Should business be expanded in Belgium & Germany
Pros Score/10 Cons Score/10
Wide customer base 8 Requirement of more funds 5
Cost reduction through
economies of scale 7 Issues pertaining to
operational control 6
Availability of skilled
personnel 6 Quality issues 5
Moderate external
environmental influences 7 High employee turnover 7
Total Pros 28 Total Cons 23
The above depicted table shows that difference of 5 takes place between total pros and
cons. In other words, it can be depicted that pros level is high over cons which means
expansion plan in the countries like Belgium and Germany prove to be more profitable. Hence,
Duque should make focus on developing sound and strategic policy framework that contribute
in the growth as well as success.
b.
There are several standards with which Duque needs to comply while exploring
business activities in the countries like Germany and Belgium (European):
 Occupational health & safety standards: Duque also need to comply with the aspects of
occupational health & safety while carrying out operations in EU.
 Environmental management: In the current times, customers and other stakeholders lay
high level of emphasis on environment sustainability or management. Thus, JSO 14000
entails that firm should carry out activities in an eco –friendly manner (International
Organization for Standardization, 2018). On the basis of this aspect, Duque requires to
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Report for Duque Papetiers Gros 2017
assess suitable ways of performing business activities which in turn avoids negative
influences regarding environmental aspects.
 Quality management: In accordance with ISO 9000, firm needs to make focus on
maintaining suitable quality of offerings.
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Report for Duque Papetiers Gros 2017
2.5Costs of a New Building
a.
Given that:
Mortgage repayment period: 30 years
Loan payment: Sum of loan amount / Discounting factor
= €200000 / ({[(1 + .10)^ 30] – 1} / [.10 (1 +.10)^ 30])
= €200000 / 9.42
= €21215.85
Repayment amount (monthly): €21215.85 / 12
= €1767.98
B
Tenure or period: 30 years * 12 months in a year
Hence, total 360 times payment need to be made
Interest rate (monthly): 10% / 12
= 0.008
Repayment amount (monthly): = €200000 / ({[(1 + .00833) ^ 360] – 1} / [.0083 (1 +.00833) ^
360])
= €200000 / 113.99
= €1754.55
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Report for Duque Papetiers Gros 2017
2.6Mean Value of Orders
HO: There is no statistical significant difference takes place in the mean value of expected and
actual order.
H1: here is a statistical significant difference takes place in the mean value of expected and
actual order.
Alpha value: 0.05
Particulars Results
Average value of the entire population (A) 240
Sample mean (B) 230
Standard deviation (C) 43
Z score assessment
(Population mean – sample average) /
standard deviation
(240 – 230 ) / 43
= 10 / 43
= 0.23
Outcome of Z score assessment shows that p value is greater than the standard limit
such as 0.05. Hence, referring such result (p>0.05), it can be depicted that null hypothesis is
true and other one false. Thus, no statistical significant difference takes place in the mean value
of actual and expected order. In other words, average figure of both the order values are
moving in similar direction or near to each other.
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Report for Duque Papetiers Gros 2017
2.7Customer Satisfaction
Ways to enhance survey responsive rate
In order to assess the views and expectation of customers, each year Duque sent questionnaire
to the respondents via e-mail. However, response rate pertaining to filling questionnaire is less
than 5% which in turn considered as undesirable situation. Hence, Duque needs to make focus
on likert scale questionnaire which in turn helps in enhancing the interest of concerned
respondents (Ways to improve survey response rate, 2018). In addition to this, emphasis also
needs to be placed on communicating motives behind survey and the manner in which
feedback given by the respondents will be used. By sending e-mail notification researcher can
remind respondents in relation to filing questionnaire. Hence, by undertaking all the above
depicted ways Duque would become able to improve survey responsive rates significantly.
Descriptive statistics
Customer
service
Quality of
P&S Sales Staff Price / Value
Mean or average 3.5 3.15 3.45 1.95
Standard Error 0.17 0.08 0.18 0.11
Median 4 3 4 2
Mode 4 3 4 2
Standard
Deviation 0.76 0.37 0.83 0.51
Results of descriptive statistics show that average number of respondents rated
customer service, product or service quality and sales staff as good. On the other side, selected
respondents, as per mean value, believe that prices of products or services are fair. Further,
under the category of customer service and sales staff, 50% of data presents that Duque has
maintained excellent level. Mode value also supports this, whereas pertaining to the quality of
product or services repeated value is 3 which indicate good level. Hence, for achieving success
and gaining competitive edge over others Duque needs to lay focus on offering products or
services at lower prices through employing the strategy of control. In other words, by making
control over expenses firm would become able to provide customers with stationery products at
suitable prices and thereby evolves satisfaction among the customers.
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Report for Duque Papetiers Gros 2017
3. Conclusions
By summing up this report, it can be concluded that German stationary market is achieving
success by offering quality products to the customers. Hence, Duque should focus on exploring
or establishing business in Germany. Moreover, in Germany, annual spending per capita and
demand for stationary products or services are high. Thus, by making focus on quality, pricing
and innovation Duque would become able to attract customers and thereby achieve success.
Further, assessment shows that benefits associated with the expansion plan in Germany and
Belgium are higher over drawbacks. Further, it can be seen in the report that effective
communication and incentive system is the key which in turn helps in increasing survey
responsive rate to a great extent.
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Report for Duque Papetiers Gros 2017
body text wordcount, excluding diagrams/captions, etc approx. 2000 words
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4. References
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Report for Duque Papetiers Gros 2017
5. Appendices
Appendix 1
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