Duque Papetiers Gros: A Business Report on Market Expansion

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Report for Duque Papetiers Gros
Date:

Report for Duque Papetiers Gros 2018
Contents
1. Introduction......................................................................................................................................2
2. Analysis of Issues for Duque Papetiers Gros.....................................................................................3
2.1 An Overview of the Wholesale Stationers Market in Germany......................................................3
2.2 Annual Spending on Writing/Drawing Materials per Capita...........................................................4
2.3Analysis of Duque’s last three financial years of sales data (2015-2017)........................................4
2.4Feasibility of Expanding to Germany & International Standards.....................................................6
2.5Costs of a New Building...................................................................................................................8
2.6Mean Value of Orders.....................................................................................................................9
2.7Customer Satisfaction....................................................................................................................10
3. Conclusions.....................................................................................................................................13
4. References......................................................................................................................................15
5. Appendices.....................................................................................................................................17
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Report for Duque Papetiers Gros 2018
1. Introduction
Duque Papetiers Gros is an organization which basically deals with stationery products in France. It
supplies various products such as printer cartridges, office furniture and other office and stationary
related products. The organization does not supply goods to the public directly but deals with a wider
range of wholesale market in the north area of France. By supplying quality and reliable products, the
organization has gained a trustful image in the market. With this, the owner is also doing the
charitable works for the welfare of society which has provided great sustainability to the firm.
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Report for Duque Papetiers Gros 2018
2. Analysis of Issues for Duque Papetiers Gros
2.1 An Overview of the Wholesale Stationers Market in Germany
The stationery market in Germany is considered as one of the established and positioned markets. The
organization is approximately spending €35.2 of its earnings in writing and drawing materials which
are determined as one of the major reason to gain the second rank in Germany. According to the
current trends, the annual turnover of the industry is €14.8 billion per year. According to the survey of
Association of Germany Stationery Brands, the overall revenue of industry has increased to 3.5% from
2014 to 2015. With this, the domestic demand has enhanced by 2.5% and internationally it hiked by
5% (Borchardt, et. al., 2018). The brand is also popular among different countries all over the world as
it has laid basic focus on the quality of products delivered. As per the retail market survey, the entities
which are operating in Germany are more than 5500 and it’s leading to gain the annual sales of
approximately €250000. The organizations in Germany whose annual sales are more than 50% are
2200 and they have the annual sales less than €500000. The industry has captured market share by
showing the positive attitude which in turn has resulted in an increase in sales in the financial year
2015. The stationery industry has developed and designed new products and services which meets
and adjusts the preferences and habits of customers in the coming years (Borchardt, et. al., 2018).
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Report for Duque Papetiers Gros 2018
2.2 Annual Spending on Writing/Drawing Materials per Capita
germany
France
Slovenia
Hungary
Poland
Croatia
0
10
20
30
40 35.5 35
20.4
9.6 8.5 7.9
Series1
Image: Annual spending in accordance with the per capita
From the above graph above it can be depicted that there is a vast difference between the per capita
as well as annual expenditure of distinct countries in stationery products. Germany is showing the
highest annual spending on stationery items than that of Italy and Spain (Borchardt, et. al., 2018). The
minimum spending is basically shown by Croatia and the Czech Republic which is amounted to be €7.9
and €7.6. The average spending has been observed in Slovenia which is €20.4. Germany is considered
as the second rank according to the research and survey which is done by various countries. The
advancement in technology has led to the enhancement of market of the stationary industry. The
critical factor for the growth of the industry is low birth rate and its effect on the number of people.
The promotion of sales is done through the awareness of customers. The number of buyers in the
market increased which is due to the enhancement of advertisement for the particular product as the
continuous rate. Online stationery business has also shown increase and the overall market share also
showed the upward trend by 17%. The technological companies have shown the great platform to
firms which help them to boost sales as well as profits (Crawford and Forsyth, 2015).
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Report for Duque Papetiers Gros 2018
2.3Analysis of Duque’s last three financial years of sales data (2015-2017)
Stationary Items 2015 2016 2017
Printer cartridges 36000 38000 32000
Low-cost printers 25000 30000 30000
shredders 25000 33000 33000
Office furniture 30000 30000 35000
General office supplies 21000 25000 26000
Writing and drawing
material
25000 33000 39000
Figure Table 2.3: Sales during the year 2015, 2016 and 2017.
 Sales for 2015:
36000
25000
2500030000
21000
25000
Printer cartridges
Low-cost printers
shredders
Office furniture
General office supplies
Writing and drawing
material
Sales for 2015
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Report for Duque Papetiers Gros 2018
 Sales in 2016:
38000
30000
3300030000
25000
33000
Printer cartridges
Low-cost printers
shredders
Office furniture
General office supplies
Writing and drawing
material
 Sales in 2017:
32000
30000
3300035000
26000
39000
Printer cartridges
Low-cost printers
shredders
Office furniture
General office supplies
Writing and drawing
material
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Report for Duque Papetiers Gros 2018
Stationary Items
Printer cartridges
Low-cost printers
shredders
Office furniture
General office supplies
Writing and drawing material
Co-Corelation
0
10000
20000
30000
40000
50000
60000
70000
80000
Series2
Series1
Sales Forecast for 2018-2019:
2014 2015 2016 2017 2018 2019 2020
150000
155000
160000
165000
170000
175000
180000
185000
190000
195000
200000
Year
Linear (Year)
Year
Sales
The analysis of the last three years will enable the organization to identify the areas and
improvement so as to attain growth and sustainability. From the above data and analysis, it
can be determined that the maximum amount of sales was achieved during the financial year
2017 which was for the writing and drawing materials (Crawford and Forsyth, 2015). The
shredders have achieved the highest amount of sales in 2016 and 2017 which depicts that the
market share, as well as profits of firm, has been maximized. The loss was also faced by the
organization but that was for the product cartridges which was a very unexpected and
shattered moment for the organization. This also reduced the overall profit margin of the
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Report for Duque Papetiers Gros 2018
firm. According to the data, it has also been determined that the growth in terms of sales has
been achieved from the last 3 years. Therefore, this states that there has been stability in the
sales of office types such as furniture and supplies of paper-based. The most sold items of the
organization were drawing materials and writing which has helped to come up with the great
revenue of the market shares for products (Eid, et. al., 2015).
The amount of correlation of the financial year 2015, 2016 and 2017 was 0.73130. The
correlation coefficient has been determined to analyse the relationship between various
variables. The accrual value of coefficient varies between -1.0 to 1.0 (Eid, et. al., 2015).
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Report for Duque Papetiers Gros 2018
2.4Feasibility of Expanding to Germany & International Standards
Insert text approx. 250 words
Expansion of market to Germany and various other markets internationally will enable to
generate a huge amount of profits based on market sales. As people of Germany have a great
status as well as an economic symbol so the standard wholesale market will enable in
generating higher revenue over the market. In the market of Germany, the suppliers of
stationery products have both positive image and reliability. The expansion plan to Germany
will be beneficial for Duque Papetiers Gros Company as it will enable the organization to generate
more profits. To meet the heavy demands in market Germany requires a reliable source of suppliers.
The Duque Papetiers Gros organization requires to comprehend the present requirements of the
German marketplace which is an astounding benchmark of the item and to keep up the enduring
supply to help the stationary market of Germany (Fornell, et. al., 2016). The organization likewise
requires understanding the market task in Germany to maintain its business effectively.
The market examination will be fundamental for the organizations as they have to survey a few
factors, for example, political, social, financial, condition, legitimate and innovation. Another essential
factor that is mulled over while growing is valuing.
The interior and outer condition investigation will, in the end, make the development practical. There
are diverse associations present in the market they can indicate a high challenge in the new markets.
In any case, the organization will most likely create new advancements for the market that will assist
the organization with growing to an ever increasing extent (Fornell, et. al., 2016).
Should we expand our business to Germany & Belgium?
Pros Score/10 Cons Score/10
Increment in
customer availability
8 Threat to sustainability 6
Promotional
Expenditure
9 Quality Needs 10
Cost of setting up 6 Controlling issues 7
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Report for Duque Papetiers Gros 2018
Increment in
resource availability
5 Increment in capital
needs
5
Brand recognition 7 Increment in global
pressure
5
Growth chances 9 Higher productivity 9
Total 44 cons 42
Average 6.28 cons 6
Figure Table 2.4: Pros and cons analysis for the business expansion in Belgium and Germany:
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Report for Duque Papetiers Gros 2018
2.5Costs of a New Building
Time 30 years
Reimbursement of Loan 21215.85 Euros
Monthly reimbursement 21215.85/12
1767.98
Time period 30*12 months (annually) = 360
Monthly interest rate 10%/12 = 0.00833
Monthly reimbursement 1755.14
Figure Table 2.5: Showing monthly liability of repayment
The monthly cost which is determined by the organization for reimbursement is 1755 Euros. The
amount which is evaluated will be paid by the organization on a monthly basis ( Fornell, et. al., 2016).
The cost that has been taken for the build-up will be required to be met effectively and efficiently so
various other factors need to be taken into consideration. The organization is necessary to be
combining with the cynics that survive and the speculation choices that are essential in nature are to
be done dependent relative on the addition exercises by the association in the nation. The property
rate inside the country is to be responsible for a more comprehensive stage for instalment. Clearly,
the yearly instalment ends up being a lot greater when contrasted with the regularly scheduled
instalment and it winds up basic to pay the home loans to sum back on a month to month premise
(Fornell, et. al., 2016). The organization additionally requires understanding the ward of property
inside a specific nation and the average cost for basic items in the nation to guarantee the steady
stream of workers inside the organization. The month to month consumption would assist the
organization with spending the cash in mass and utilized in different utilities for the structure, for
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