Duque Stationery Expansion Strategy
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Report for Duque Papetiers GrosDate: Dec 19th, 2017
TABLE OF CONTENTS1.INTRODUCTION.................................................................................................................12. ANALYSIS OF ISSUES FOR DUQUE PAPETIERS GROS.................................................22.1 An Overview of the Wholesale Stationers Market in Germany.........................................22.2 Annual Spending on Writing/Drawing Materials per Capita.............................................22.3Analysis of Duque’s last three financial years of sales data (2015-2017)...........................42.4 Feasibility of Expanding to Germany & International Standards.......................................62.5 Costs of a New Building.....................................................................................................82.6 Mean Value of Orders.........................................................................................................92.7 Customer satisfaction........................................................................................................103. CONCLUSION.......................................................................................................................114. REFERENCES.......................................................................................................................135. APPENDICES........................................................................................................................14Appendix 1..............................................................................................................................14
Report for Duque Papetiers Gros 20171.INTRODUCTIONGerman stationery sector has developed and introduced new products or services as per theconsumer habits as well as preferences. The present report is based on Duque Papetiers Groswhich offer s stationery products and services to local schools and small shops and offices.Product base of Duque includes printers, office furniture etc. Such business unit has built upits effectual image at marketplace and known for the trustworthiness as well as reliability.Now, Duque owner is planning to expand France based business operations into othercountries such as Germany. In this, report will highlight the trends exists in Germany inrelation to the stationery products or services. It also depicts the trend of annual spending onwriting / drawing materials in the context of seven European countries. 1
Report for Duque Papetiers Gros 20172. ANALYSIS OF ISSUES FOR DUQUE PAPETIERS GROS2.1 An Overview of the Wholesale Stationers Market in GermanyAssociation of German Stationery Brands revealed in their report that total turnover ofGermany’s stationery market inclined 3.5% significantly within 2014 and 2015. During thistime period, domestic demand pertaining to the stationery products or services grew by 2.5%.Further, demand from abroad, in relation to the stationery products or services, also increasedby 5% between 2014 and 2015. In the year of 2015, 70% major stationery brands of Germanyenjoyed increasing sales pattern or trend. Along with this, German stationery brands have builttheir effectual image in both Germany and overseas. In against to the private labels,particularly writing instruments have gained high level of market share. Further, in Germany, approximately 2200 companies are operating in the stationerysector. Among them, half of the companies, including wholesalers who involved in sellingpapers, office supplies as well as writing instruments have turnover less than €500000. Now,due to the mergers and exit of the companies number of wholesalers related to the stationerysector declined (Schmidt, 2016). However, scope of wholesalers has widened in the currenttimes as they place emphasis on selling products directly to the commercial customers withoutany intermediaries such as retailer. On the basis of economic condition assessed, sales of thecompanies which are operating in the stationery sector of Germany expected to incline by3.5%. However, due to the international economic and monetary turmoil it is highly difficult tomake appropriate and reliable estimation about the sales of stationery products and services. 2.2 Annual Spending on Writing/Drawing Materials per CapitaBy doing research, it has assessed that German stationery industry is highly growingand well positioned or established. Report presented by the Trade Association for OfficeSupply and Writing Materials shows that total turnover of the industry accounted for more than€14.8 billion per annum. This is highly equal or similar to the spending of each individual suchas €182 per year. From assessment, it has found that spending of the customers in relation towriting and drawing material accounted for €35.3 (Schmidt, 2016). Hence, Germany hasattained second position in the category of spending for stationery products and services overother countries in the EU. The below mentioned bar chart presents that annual spending percapita for drawing materials accounted for €35.2 & 28.3 in relation to the EU countries likeFrance & Germany. Hence, for enhancing annual spending of customers regarding writing anddrawing material Duque needs to make focus on promotional aspects and online selling of2
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