Stationery Market Analysis: Germany

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This assignment requires a comprehensive analysis of the German stationery market. Students need to investigate consumer spending patterns, identify key trends in product diversification and quality, and assess the competitive landscape. The report should also explore potential opportunities for international stationery suppliers, using Duque as a case study.

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ANALYSING DATA

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
EVALUATING PROBLEMS IN DUQUE PAPETIERS GROS....................................................1
Overview of the wholesale German market of stationery industry:.......................................1
Annual Spending on the materials of writing and drawing per Capita:.................................2
TASK 3............................................................................................................................................3
Analysing the sales data of Duque’s for the last three financial years (i.e., from 2015 to 2017)
................................................................................................................................................3
a). Total sales..........................................................................................................................3
b). Pie chart.............................................................................................................................4
c). Scatter diagram to find out the correlation coefficient:.....................................................4
d). Forecasting total sales for 2018 and 2019.........................................................................4
TASK 4............................................................................................................................................5
Probability of Enlarging to Germany & Global Standards:...................................................5
a). Probabilities.......................................................................................................................5
b). International standards along with which Donald Duque requires to comply:.................6
TASK 5............................................................................................................................................6
a. Computing a monthly cost of 30-year repayment mortgage..............................................6
b. Re-calculating monthly cost assuming that the interest is applied to the loan every month6
TASK 6...........................................................................................................................................7
TASK 7............................................................................................................................................8
a). Stating ways that can be used for enhancing customer responsive rate:...........................8
b). Analysing data set gathered through survey ....................................................................8
TASK 8............................................................................................................................................9
Conclusion..............................................................................................................................9
REFERENCES .............................................................................................................................10
Appendix........................................................................................................................................11
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INTRODUCTION
Donald Duque is the company which deals in stationery business and have its location at
Northern France. Although, they does not able to identify about the importance of organisation
data analysis for incorporating an effective decisions in coming time. This is committed as a
wholesale operation of business data analysis for making a strong decisions. Donald Duque sales
diverse products such as printer, office related supplies, low-priced printers, paper based
suppliers and drawing related material (Stewart, 2016). This report has main aim to examine its
sales for at least 3 years in order to form sound decisions. In addition to this, future business
about its expansion would be assessed via advantages and disadvantages tools and survey results
would be measured via basic statistical tools for intending of efficient strategies.
TASK 1
EVALUATING PROBLEMS IN DUQUE PAPETIERS GROS
Overview of the wholesale German market of stationery industry:
Stationery market in Germany is one of the most attractive market which ultimately
contributes the economy in a strong way. As, this can be rightly said that the Germany have
various most renowned stationery brands such as Faber-Castel, Edding along with Stadbilo and
Lamy, Montblanc, Stadetler. Germany stationery market is on the top list of the success since
earlier times (Germany – A Potential Stationery Market, 2018). This is just because of the new
product emerged to tailor customer habits, desires along with the developing vitality and various
issues which arise in this market. Association for Office Supply and Writing Material reported
that the industry crossed its annual turnover €14.8 billion by enhancing its individual spending
exceeded €182 per year. From these, €35.2 is spent on writing & drawing material, as an
outcome, among entire EU nations, Germany market emerges on the 2nd position which comes
after Switzerland (Signorell, 2016). Germany Stationary brands reported that emerging domestic
demand from local and international market with the growth rate of 2.5% which reflects the
strong growth of 3.5% during 2014-2015.
There are around 2200 wholesale organisations which work in Germany's stationery
market that serves paper, diverse kinds of writing instruments, office supplies and others.
However, many of them have not yet touched the net income €500,000, which reflects the firm's
small operations. B2B intermediaries are offering commercial customers directly. Merger and
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Acquisitions strategies of the company will low down the wholesalers' demand of their products.
Irrespective of this, there are various specialist retailers who offer great quality products.
TASK 2
Annual Spending on the materials of writing and drawing per Capita:
Illustration 1: Writing and Drawing material per capita
(Source: MGCC perspectives, 2018)
From the above mentioned graph, this can be said that from 2002, yearly expending on material
of writing and drawing per capita is decreasing significantly. In 2002, it was 7973 which was
gradually been decreased and reached to 5200 in 2015. Henceforth, focus is likewise on the
suppliers on introducing or offering innovative stationery products to the clients which ultimately
help out to meet expectation levels (Klein, 2017). Apart from this, as having emerging popularity
of suppliers in the global market, sales turnover also rise to 3.5% significantly. In addition to
this, various changes were incorporated in this industry after showing the entry of various retailer
(MGCC Perspective - German Chamber of Commerce and Industry, 2016). In addition to this,
various retailers offer high quality items by using their labels. These retailers assume that
branded products are providing a better quality products as compared to other goods. Moreover,
Germany's products are available for 24 hours through online modes. Henceforth, by
incorporating online presence, Donald Duque could gain success.
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TASK 3
Analysing the sales data of Duque’s for the last three financial years (i.e., from 2015 to 2017)
Appendix 1
a). Total sales
Product Items 2015 Sales () 2016 Sales () 2017 Sales ()
Printer cartridges 25000 26000 22000
General office supplies 25000 27000 23000
Low-cost printers 15000 18000 18000
Office furniture 25000 25000 27000
Shredders 25000 29000 29000
Paper-based supplies 25000 27000 27000
Writing/drawing
materials
25000 30000 32000
Total Sales 164000 182000 178000
According to the above result, this can be founded that in 2014, Duque's total sales
turnover €164,000 which was increased to €182000 and €178000 during 2015 and 10.30% and
2.20% respectively. For assessing the total sales by product over the past 3 years, study assessed
that organisation produces optimum sales from supplying of writing and drawing material and
shredders. Although, low cost printer reported minimum sales value of €51,000.
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b). Pie chart
c). Scatter diagram to find out the correlation coefficient:
Year 2015 2016 2017 Coefficient Correlation
Total Sales 165000 182000 178000 0.731359467
Scatter diagram plots two diverse values along with the two axes and pattern reflected by
the points reflects correlation between both of the variables. While looking to the graph, as this
can be said that the year increases, total sales reflects enhancing the trends which indicate the
year and sales performance adopt positive link. The main value of the correlation coefficient
between both of the variable identified to +0.73 which indicates that the sales is enhanced by
73% as of enhancing national and international demand for the stationery products (Signorell,
2016).
d). Forecasting total sales for 2018 and 2019
The cited company is required to forecast the future plan so that strong planning can
attained in order to assure success. Donald Duque does not only requires to assess their existing
and historical year’s outcomes but likewise, required to forecast future henceforth, for making
effective planning in advance for assuring success.
Year Sales
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2018 €6500x + €162000
= €6500 (4) + €162000
= €188000
2019 €6500x + €162000
= €6500 (5) + €162000
= €194500
198000
237600
285120
0
50000
100000
150000
200000
250000
300000
2018 2019 2020
Total Sales
TASK 4
Probability of Enlarging to Germany & Global Standards:
a). Probabilities
Expansion to Belgium
and Germany
Benefits Score Drawbacks
Expansion would hike customer base
and contributes for optimising the sales
+9 Resource issues such as monetary
availability and labour
Enhancing profitability +7 More investment needs
Consumer traffic +8 Fluctuating currency
Strengthen competitive position +7 Intense competition from crucial
stationery distributors in Belgium &
Germany
Economies of scale through mass +8 Regulatory related compliance risk
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production
Total +39
Pros scored more than the cons by (+39-35) = +4 point. Henceforth, this is reliable to
expand Donald Duque's firm into Germany and Belgium in order to optimise sales, revenue and
international research.
b). International standards along with which Donald Duque requires to comply:
There are various global standards by which various European firms are bound to comply
at the time of performing diverse business activities. Therefore, International standards which
linked with the operations of Donald Duque are enumerated hereunder:
ISO 14000 family-environmental management: By taking help of this standard, various
business units have the accountability for performing activities in an Eco- friendly
manner.
ISO 45001 Occupational health and safety: As per this standard, responsibilities of
Donald Duque for forming adequate arrangement related to the health and safety of
individual at place of work (Klein, 2017).
ISO 31000 risk management: For achieving of business objectives, risk management
activities are required to be followed by the Donald Duque. In addition to this, cited
company is required to adhere with Data Protection Act and according to the similar
confidentiality related to the information requires to be handled with.
TASK 5
a. Computing a monthly cost of 30-year repayment mortgage
Particulars Figures
Time 30 years
Loan payment = Total loan amount /
Discounting factor = € 21215.85
Monthly repayment 21215.85 / 12
= €1767.98
b. Re-calculating monthly cost assuming that the interest is applied to the loan every month
The Annual Percentage Rate (APR) for Adjustable Rate Mortgage (ARM) is 6.5%.
It is for a $200,000.00 loan along with a maturity of 30 years, along with a beginning
payment of $954.83 and closing costs of $4,800.00. The APR was incorporated along with an
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interest rate which sticks to 4% for 12 months which are going to adjust to tough indexed rate of
6.5%.
Payment number Interest Rate Monthly payment
1 4% 954.83
12 6 1192.63
24 6.5% 1254.46
Working note:
Simple interest formula:
Interest = principal* rate* time
Mortgage information:
Mortgage Amount 200000
Term 30 years
Starting Interest Rate 4%
Initial Monthly Payment 954.83
Current Index 4%
Margin 2.5%
Total Principle and Interest payments 447,272
Total Interest 247,272
TASK 6
H0 (Null hypothesis): Under this, there is no significant difference in the mean value of
expected and actual average order value.
H1 (alternative hypothesis): Under this, there is a significant difference in the mean value of
expected and actual average order value.
Particulars Outcome
Mean of the entire population 240
Average of sample 230
Standard deviation 43
Z score assessment [ (Mean of the entire
population sample average) / standard
deviation ]
(240 – 230 ) / 43
= 10 / 43
= 0.23
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Criteria’s for selection and rejection of hypothesis
P > 0.05: Null hypothesis accepted or true.
P < 0.05: Alternative hypothesis proved or true.
By providing assessment, it has simply found that p value of Z score 0.23 accounts for
0.59 significantly. This results reflects that p value is more than the standard limit like 0.05.
Thus, by considering such aspect, this is rightly stated that null hypothesis is recognised and
alternate hypothesis is rejected. On relying of p value determined, it can be said that there is no
statistical significant difference which emerge between the mean values of forecasted and actual
average order value. On the other hand, it is rightly said that actual and expected value orders are
moving in same direction (Schabenberger and Gotway, 2017).
TASK 7
a). Stating ways that can be used for enhancing customer responsive rate:
Respondents who participate in their post- buying experience and gaining feedback are
mostly crucial in the competitive time which would aware organisations that could serve
customers in an effective manner (Chambers, 2018). Here, this can be said that Donald Duque
survey selected customers during the end of the year, although, the crucial issues is only 5% or
lowering participant had taken interest in fulfilling questionnaire and sent back to the
organisation. Here, few of the financial incentives could be offered to them for sharing their
post-purchase experiences along with the company which could serve them in an effective
manner.
b). Analysing data set gathered through survey
Particulars CUST_SERV QUAL_P&S SALES_STAFF PRICE_VALUE
Mean 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
Interpretation: By using primary and secondary data evaluation, this can be found that
average respondents relied that the customer’s service or support, quality of product and sales
staff of Donald Duque is better. Apart from this, mean value of the component related to the
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price applied for 1.95 which in turn showing customers over-viewed the similar as an appropriate
and fair. Moreover, value of the standard deviation contributes 0.51 which does not too high or
low. While considering it, this can be rightly observed that the perception level of customers
does not change with the change significantly as per with the rating provided by the average
number of participants (Chambers, 2018). On relying the outcome identified via statistical
assessment, this can be said that Donald Duque which impacts on the controlling costs. This in
turn assist organisation for rendering customers along with suitable items at a reasonable rate and
henceforth, raises their satisfaction level.
TASK 8
Conclusion
By concluding the report, this can be said that Germany has made its powerful position in
this market. Apart from that, this can be inferred that Germany stationery suppliers are placing
more emphasis on the diversification and the quality of the product. This could be said that
higher number of people are spending more amount on buying writing and drawing material.
Moreover, this can be said that Duque would attain prosperity and get the desired results by way
of searching business operations for diverse nations such as Germany and Belgium. This could
be said that the outcomes of the primary data assessment in the cited organisation requires to
stress on employing competent pricing policies that would assure effective margin and affects
the decisions for forming aspect of customers.
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REFERENCES
Books and Journals:
Chambers, J. M., 2018. Graphical methods for data analysis. CRC Press.
Schabenberger, O. and Gotway, C. A., 2017. Statistical methods for spatial data analysis. CRC
press.
Klein, P.A., 2017. Analyzing Modern Business Cycles: Essays Honoring: Essays Honoring.
Routledge.
Signorell, A., 2016. DescTools: Tools for descriptive statistics. R package version 0.99. pp.18-
22..
Stewart, A., 2016. Basic statistics and epidemiology: a practical guide. CRC Press.
Online:
Germany A Potential Stationery Market. 2018. [Online]. Available through:
<http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Perspectives/MGC047-
Mar.Apr16_iPAD.pdf>.
MGCC Perspective - German Chamber of Commerce and Industry. 2016. [PDF]. Available
through: <http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Perspectives/MGC047-
Mar.Apr16_iPAD.pdf>.
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Appendix
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13
1 out of 15
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