Situational Analysis of Kathmandu Kids’

The report analyses the situation of Kathmandu Kids’ and evaluates the position of the company. It includes external and internal environment analysis, impact of emerging technologies, segmentation and targeting, and more.

Running head: SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
Name of the Student
Name of the University
Author Note

1SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
Executive Summary
The report has shed light on the situation analysis of Kathmandu Kids'. The product is highly
rated and in case of Kiwis market, the company has tried to make some competitive
advantages form Adidas and Nike. The external and internal process of the company and
their value proposition is important. The broad array of social and economic legislation
maintained in that process and there are many welfare procedures for workers are maintained
in an ethical manner. The advancement in technology and setting the target market is also
important and that evaluates the positional situation of the company.

2SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
Table of Contents
1. Overview of Kathmandu Kids’..............................................................................................3
1a. Introduction......................................................................................................................3
1b. Mission, Vision, corporate culture and values of Kathmandu Kids’...............................3
1c. Product features and benefit with customer value proposition........................................4
1d. Current market situation and core competencies with other companies..........................4
2. Environment Scanning...........................................................................................................6
2a. External environment analysis.........................................................................................6
2b. Internal environment analysis..........................................................................................7
3. Impact of emerging technologies and their effectiveness on Kathmandu Kids’.................10
4. Segmentation and targeting..................................................................................................10
4a. Four key segmentations along with relevant variants....................................................10
4b. Target segment profile of a selected product.................................................................12
References................................................................................................................................13

3SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
Topic: Situational analysis, environmental scanning and technological trends of
Kathmandu Kids’
1. Overview of Kathmandu Kids’
1a. Introduction
Kathmandu Kids’ is a chain of retail stores, which deals with travel and adventure
outdoor apparel. This is a leading retailer and clothing equipment in New Zealand. The
company has more than 160 stores globally. The revenue generation of the company is
NZ$445.37 million and more than 2000 employees work for the company (Kathmandu.co.nz,
2018). The brand value of the company is high and innovative nature of the business is the
prime attraction for the customers. The core purpose of the company is to inspire travel
experience of people and develop the integral process of business.
The purpose of the report is to analyse the situation of the company and evaluate the
position of the company. There are some big companies like Nike kids, Adidas kids are in the
market and Kathmandu Kids’ has to strengthen their market for the development of their
business. The culture and attitude of the brand is the guiding principle in that case.
1b. Mission, Vision, corporate culture and values of Kathmandu Kids’
The aim of Kathmandu Kids’ is to inspire adventure in everyone. The mission of the
company is to make a better travel experience for people and provide every opportunity to
sustain their dream. There are four major goals set by the company. In 2017, 2.5 million
plastic bottles were revised by the other containers, those are not hazardous for the
environment as well (Kathmandu.co.nz, 2018). In 2018, the company initiates for zero waste
to landfill process. The company has taken a commitment of 100% sustainable cotton making
process in 2020 and the process delivers a 20% reduction of carbon emission
(Kathmandu.co.nz, 2018). The vision of the company to mark them high in the global market

4SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
and get some effective advantages in this competitive business market. Kathmandu Kids’ has
achieved 100% RDS certification and ranked in no. 4 as per the textile exchange report in
global user. The increase in sustainability in cotton from 38% to 59% has found for that
reason (Kathmandu.co.nz, 2018). In the case of corporate culture, the company is driven by
the leaders and management board takes the ultimate decisions. The decisions are maintained
with ethical sustainability and corporate governance process has been maintained through the
ethical values and principles. The value of the company aligned with six major aspects.
Integrity, Resourcefulness, Love of travel and adventure, Environmental action, Openness
and directness and Passion and determination. All these values strengthen the structure of the
company in an influential manner.
1c. Product features and benefit with customer value proposition
Kathmandu Kids’ deals with adventure and play. Thoughts can change the dimension
of a retail management and Kathmandu kids' is one of the trending examples of that. In case
of kids' special protection of the jacket with better cotton with REPREVE Polyester is used,
and these polyester are formed from the recycled plastics. So the environment sustainability
process is also aligned with that (Kathmandu.co.nz, 2018). The jackets are light in weight
near about 280gm to 300gm. Even for the better travel experience child carrier of “Karinjo
Element Set”, “Karinjo Child Carrier” all these are used and those have a very good review
also (Kathmandu.co.nz, 2018). The price range of t-shirts, hooded jackets, rain jackets, selva
girls’ dress are in different ranges and they have specific layers for that. The inspirational
iconic brand value of the company and changing retail environment is the main strength in
that case.
1d. Current market situation and core competencies with other companies
In the case of the current market position, Adidas has experienced a huge turnover
and beat Nike for the first time. 78% stock up is a huge increase for the company and

5SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
High Quality
High PriceLow Price
Low Quality
simultaneously 17% stock down for Nike help Adidas to make them on top
(Kathmandu.co.nz, 2018). The recent growth of the company and coming back as the largest
sports Apparel Company placed over the Nike is the best position in the company. The
product variation and innovation in quality is the high point for Adidas and Nike comparing
to Kathmandu Kids’. In 2016, NPD market analysis shows, Adidas has better sales profit of
6.7% in athletic shoes (Kathmandu.co.nz, 2018).
Through the perceptual mapping, good positioning of Adidas is clear and they
overshadowed Nike by their selling percentage and production. The design and technology
that Adidas and Nike have used in their products need to implement by Kathmandu Kids'
also. The matter of top selling process will be furnished and for the low-cost pricing strategy,
Kathmandu Kids’ will get maximum profitability than two other big companies.

6SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
2. Environment Scanning
2a. External environment analysis
The external environment analysis shows the main four aspects of change like
Political, Economic, Social and Technology.
The political situation of the nation is very stable. In 1935, the Labour Party came in
the power and dominated the nation after the bondage of the conservative National party. The
government is under the unitary parliamentary representative democracy and legislative
power consists in that process (Sterner & Coria, 2013). The basic wage structure for labours
is followed in this nation and 40 hour work week maintained. The process of Mixed-Member
Proportional (MMP) system maintained in New Zealand and reform in market orientation are
clearly executed by the government. With the 60 parliamentary seats, in 2011 National Party
reformed with 48% of total vote.
In case of economic condition, the nation is on the 53rd position in the globe. The
GDP of the nation is US$185.9 billion in 2017 and marginal growth of 3.5% in GDP has
found in that case. The globalised form of economy in New Zealand depends on the
international trade with Australia, US, China, South Korea, Japan, and Canada. The rate of
inflation is increased by 1% and the unemployment rate is 4.4%. The nation ranked first in
case of ease of doing business, which signifies that companies from other nations can easily
set up their business without any hassle. The major industries like food processing, textiles,
pieces of machinery, mining, tourism, transportation equipment, finance all these important
and all these have the good prospect in business (Gummerus, 2013). The export percentage of
the nation is NZ$61.700 billion as per the 2013 financial year. The basic exported products
are meat, wool and wood products, fish, machinery and dairy products. The foreign reserve of
the country is US$20.600 billion and interest for doing business in this nation, deliver the
best opportunity for the nation. The Kiwi dollar is the 10th most traded currency in the world.

7SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
In case of social and cultural aspect, people are relaxed enough and they interact with
each other with an ease. The communities are less populated and that is the reason people are
known to each other. In this social aspect, crime rates are low and they maintain some
effective social fun activities, those are introduced by the people and they enjoy that a lot. In
the case of business enhancement, some big festivals are there and people used to visit there
from the international arena. This will motivate any kind of business in New Zealand. Taonga
is the national language used by 23% of New Zealanders (White, MacDonnell & Ellard,
2012). The language had now reformed in Maori and schools have offered a Maori language
week every weekend. The art cultures are active and exclusive and people love the entire
process and stay happy and healthy.
The technological development provides an opportunity for the nation and low carbon
global economy is the vision that the New Zealand government try to implement. The
productive carbon pollutions are mitigated by effective ways and New Zealand is producing
more than 70% of electricity and supplying renewable energies like hydro, thermal and
geothermal process from their own so that carbon mitigation process continues. There is
some technologies assessment like clean transportation process used in the nation. Natural
gas or liquefied petrol is used for vehicles (Singh & Pandey, 2012). Those processes help to
mitigate carbon assimilation and replaced energy sources for the development of environment
aspect. The bio-energy of liquid waste, food waste or fill waste and proper initiative of
piloting gasification help to form bio-oil technologies. The energy-efficient technologies in
food processing, industrial machinery and domestic appliances are important for the
development of business.
Competitive environment and social-responsibility and ethics in business
The risk exposure reduction and opportunities for the financial return is the key aspect of
competitive environment. Kathmandu Kids’ segments their business in different sections so

8SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
that every opportunities will come from their ends. For the sustainable development of the
organisation, risk mitigation process is important (White, MacDonnell & Ellard, 2012). The
CSR ethics and responsibilities come in that way. In case of ethical alignment, business
administration process and activities of CSR needs to be important for the mitigation of
external threats in business. Kathmandu Kids’ as faced some sustainable challenges and also
process some effective ways to mitigate them in the process of CSR strategy.
2b. Internal environment analysis
The internal analysis of Kathmandu Kids’ signifies the strength, weakness,
opportunity and threat.
Strengths Weakness
 The company’s performance in new
market is good and they build new
revenue stream and diversified
economic cycle for them.
 The automation activities are the
positive aspect of the organisation.
The demand condition of the market
helps the entire process in a smooth
way.
 The development of new products is
important and reliable cash flow in
the market help to process the
desired outcome (Andreasen, 2018).
 The research and development of the
company are not fastest enough.
This is the situation help to develop
the company, but the effectiveness is
missing in this case.
 The technological investment is low.
Kathmandu Kids’ has bounded in
some limitations in technological
field.
 The products demand of higher price
goods are less in market. That
signifies other companies higher
range goods are sold in higher rate

9SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
 The strong dealer community is also
considered as the positive aspect of
the company. The investment of
sales team and explain customers to
have their products and get
maximum benefit from those
products is important for the
company.
 Good way of return and the integrity
complimentary firm is the major
aspect, in that case, the process also
promotes streamline operation and
build a reliable supply chain.
rather than Kathmandu Kids’.
 The management is not strong and
leadership issues are found in the
company.
 High staff turnover is another
weakness for the company and they
have moulded their organisational
position and administration for that.
 Better customer service is expected
from the customer service
representatives (Pike & Page, 2014).
Employees need to attain some
pieces of training and development
classes to provide better purchase
experience for customers.
Opportunities Thereat
 The product innovation of the
company is important and there are
some retail market innovations are
there for the development of the
company.
 The online marketing of the
company is strong enough to
promote products at any range.
 The promotion of new products are
 The barriers of other big companies
are there and that curtails their
business advancement.
 The issue of volatile currencies are
there and that impacted on the
market.
 The mature market entry also creates
a threat to the organisation and
Kathmandu delivers their low ranges

10SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
interesting and implement in an
elegant way. The product cultures in
the new market are effective and it
has a strong process of government
support.
 The international expansion is good
in that case and Kathmandu Kids’
has the opportunity to progress.
products for that reason.
 There are lots of substitute products
are on the market so competitive
advantages are not getting all the
time.
3. Impact of emerging technologies and their effectiveness on Kathmandu Kids’
Advanced technologies like Kathmandu E-gift cards, International shipping and
smooth online process provide them with an opportunity to redirect the business with
emerging technologies. The technologies are implemented for the development of the
company and to provide best customer satisfaction through the process (Bućko, 2012). The
impact of international shipping is productive and channelize a new range of business. The
business process is quite challenging and significant for the organisation, which accounted
for most of the revenue generation. Online management process and hassle-free return is
another technological advancement in the retail process that provides customer loyalty over
the organisation.

11SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
4. Segmentation and targeting
4a. Four key segmentations along with relevant variants
Figure: Segmentation of Kathmandu Kids
(Source: Self-developed)
Demographic variables: Demographic segmentation is used by Kathmandu Kids to
target the customers to their age, gender, life-cycle stage and generation. Kathmandu Kids
can segment the market for the customers who are aged between 10 and 17. The organisation
caters to both males and females customers and they mostly place their focus on teenage
customers. Kathmandu Kids addresses the teenage segment by deploying the marketing
campaign for the young adults. Kathmandu Kids has recently come up with the variety of the
teenage clothing to tap into one of the fastest growing teenage segment.
Geographic variables: Kathmandu Kids can also use geographic segmentation as
they can target the customers who live near the stores of the organisation. Geographic
segmentation to market can be regions, nations, cities and the population density of the
Demographic
Age
enderG
Socio economic-
group
Geographic
ocationL
Region
rbanU
Behavioural
Rate of usage
enefit soughtB
oyalty statusL
Psychographic
ersonalityP
ifestylesL
Class
Attitude

12SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
people (Alt & Iversen, 2017). In this scenario, Kathmandu Kids can segment the market by
regions where the teenagers play games and like to be part of the game. Sports can also tend
to vary sometimes and the urban teenagers and customers will be segmented through
geographic segmentation. Kathmandu Kids can segment the market based on the regions.
Behavioural variables: When segmentation is based on the products’ attributes, the
management body of the organisation can highlight the products make the customers feel
(Cross, Belich & Rudelius, 2015). The consumers back to the organisation to purchase their
products again when the customers seek the benefits. With behavioural segmentation,
Kathmandu Kids can develop the customer loyalty. When the companies able to develop
loyal behaviours from the customers' end; Kathmandu Kids can be able to reap rewards from
incremental sales.
Psychographic variables: Organisations can use psychographic segmentation to
segment the customers with their specific lifestyles and different personalities (Weinstein &
Cahill, 2014). Kathmandu Kids can target the teenagers who like to play games and who love
sports and athlete. Kathmandu Kids provide marketing efforts to create a ‘feel’ which may
transcend to the products.
4b. Target segment profile of a selected product
Primary target market: Customers aged between 15 and 25
The primary target market of Kathmandu Kids can be the customers who are aged
between 15 and 25. This aged segment can be targeted with the jackets of Kathmandu Kids.
Jackets of Kathmandu Kids can be worn both by the males and females. From teenage to the
youth generation, this particular trendy jacket will be easy being famous. In addition,
Kathmandu Kids has outlets in many regions of New Zealand and they have online e-
commerce where they can target this aged section.

13SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
Secondary target market: Urban population
The secondary target market of Kathmandu Kids will be urban customers as most of
the outlets of Kathmandu Kids are near urban areas. In urban areas, the teenage customers are
mostly health-conscious and they like to have sports-lovers.
Conclusion
Therefore it can be concluded that, strategic analysis of the company is depending on
the product innovation and culture of those products. The situations of external and internal
factors and their chances in New Zealand business market is important for the development
of business. There are some other companies like Nike and Adidas as rival companies but the
travel experience provided through the company is innovative and relevant. Products quality
and segmentation for different markets provided better opportunities for the company.

14SITUATIONAL ANALYSIS OF KATHMANDU KIDS’
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