Duque Papetiers Gros: German Stationary Market Entry Strategy

This report analyzes the stationary market in Germany for Duque Papetiers Gros, a French stationary product manufacturer considering expansion. It covers the wholesale stationers market overview, annual spending on writing/drawing materials, and analysis of Duque’s sales data from 2015-2017. The report assesses the feasibility of expanding to Germany, including cost considerations for a new building, mean order values, and customer satisfaction. Key trends such as digitalization and business-to-customer marketing are discussed, along with the importance of international standards like ISO 85, ISO 9001, ISO 14001, and ISO 4046 for sustainable and profitable operations. Recommendations are provided to enhance customer participation and improve business strategies for the German market.

STATIONARY MARKET IN
GERMANY FOR DUQUE
PAPETIERS GROS

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................1
Analysis of issues for Duque Papetiers Gros...............................................................................................1
2.1 An Overview of the Wholesale Stationers Market in Germany........................................................1
2.2 Annual Spending on Writing/Drawing Materials per Capita............................................................2
2.3Analysis of Duque’s last three financial years of sales data (2015-2017)..........................................3
2.4 Feasibility of Expanding to Germany & International Standards.....................................................5
2.5 Costs of a New Building....................................................................................................................6
2.6 Mean Value of Orders.......................................................................................................................7
2.7 Customer Satisfaction........................................................................................................................8
Conclusion...................................................................................................................................................9
REFERENCES..........................................................................................................................................10

LIST OF FIGURES
Figure 1: annual spending per capita...........................................................................................................2
Figure 2: Products and their sales................................................................................................................3
Figure 3: Mixed pie chart............................................................................................................................4
Figure 4: Scatter diagram for financial sales...............................................................................................5
Figure 5: Formula used in Excel..................................................................................................................7

LIST OF TABLES
Table 1: Pros and cons.................................................................................................................................5
Table 2: Parameters for CUMIPMT function..............................................................................................7

INTRODUCTION
Stationary is one of the fundamental requirements in the businesses, offices, schools and universities.
Stationary market is increasing in European countries and providing opportunities to the businesses to
expand the services in the potential markets. Therefore, report will discuss the stationary market in
Germany Because Duque Papetier Gros., A French stationary product manufacturer is thinking to scale
in the German market. The report will also discuss the annual spending on particular products and
record of the three previous financial years of the organization. The report will also discuss the
potentials including cost, customer satisfaction and mean order values to help the organization in
decision making process.
Analysis of issues for Duque Papetiers Gros
2.1 An Overview of the Wholesale Stationers Market in Germany
German economy has great contribution of the stationary market because the market has annual turnover
of €14.8 billion from multiple products and services whereas the average individual’s spending on the
product is €182 annually. Also from the range of products and services, writing and drawing material
has high sales as individual has annual spending for these products as €35.2. Positive attitude of the
organizations has led the market with high profitability. There is an effective growth of 3.5% in the sales
of stationary products in between 2014 and 2015 (Global Stationery Products Industry, 2018). The
domestic sales grew by 2.5% whereas internal sales and market has expanded double of domestic
market.
Key trends and potentials
Stationary market has increased to a higher value in the recent time but it also gets impacted from the
recent trends and potentials in the competitive market. Digitalization has impacted the business for the
potential use of the stationary products. Peoples are moving toward the online tools and the use of the
stationary products is reducing. However, the digital technology also has helped the organizations to
achieve potential market. HBC forecasted that the same trend will be continue in upcoming years and
inject more sales in the market (Rickert et al, 2017).
Another major trend is noticed as business to customer marketing because the business to business
selling of the stationary product is not effective to earn efficient profitability. The organizations are
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focusing on the customer requirements and delivering high quality products directly them to enhance the
profitability and establish the strong customer base. However, the conditions of the unemployment and
customer orientation for the quality are potentials to penetrate the German market.
2.2 Annual Spending on Writing/Drawing Materials per Capita
It is determined that France and Germany are two leading countries for the stationary market. In
Germany, average annual spending of the people for the stationary products is 35.2 €. However, it is
28.3 € in France. From the year 2015, Germany market has achieved high growth in the industry and
share 17% of the market for the stationary products (Rickert et al 2018).
Graph reveals that the German market is at second position behind of Switzerland. From the analysis of
the graph on the basis of the stationary products, it can be said that there is effective sales of the writing
and drawing material including ballpoint pens, roller ball pens, fountain pens, and felt-tipped pens.
Figure 1: annual spending per capita
Therefore, the results are determined that people in the country are focusing on the use of writing and
drawing materials besides the use of the digital technology. It also has boosted the sales of the variety of
papers including canvas papers. Annual spending for the writing and drawing material is increasing to
support the better learning and supportive environment in the offices, business and education system.
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However, the nearby markets to Germany like Italy and France are lower in the use of writing and
drawing material but they have effective sales and annual spending on the other stationary products and
services. For example, Australia and other countries are ahead in the use of the printers and \office
furniture to support the routine operations.
2.3Analysis of Duque’s last three financial years of sales data (2015-2017)
Analysis of the last three financial years of the organization can reveal the information about the new
trends, customer expectations and market orientation. The analysis is important to align the business
strategies and practices toward the high profitability and sustainability. The analysis details are given
below:
Excel sheet
Figure 2: Products and their sales
According to analysis, it is clear that overall sales are increased from the year 2015. However the year
2016 has delivered high profitability through the effective increase in the sales of writing and drawing
materials.
Mixed pie chart
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Figure 3: Mixed pie chart
Scatter diagram
Scatter diagram details that there is effective increase in the sales of the writing and drawing material.
Also the sales of the shredder and low-cost printers are increased in the year 2016 but they were stable
in the next year. The sales of printer cartridge during three financial years are somehow stable in two
years and decreasing as observed in the last financial year. It is also true for the general office supplies,
office furniture and paper based supplies. Therefore, the potential market for the organization is in the
writing and drawing materials.
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Figure 4: Scatter diagram for financial sales
Forecast of the sales in 2018 and 2019
From the analysis, the most potential section for the business is to invest in the writing and drawing
material. The organization also can take advantage of the sales of the shredders in these years.
Therefore, forecasting is that the organization can enhance the sales in the writing and drawing material
to 36000 pounds in next financial years.
2.4 Feasibility of Expanding to Germany & International Standards
Table 1: Pros and cons
Should I expand my business to Belgium & Germany?
Pros Score/10 Cons Score/10
German market is lead by a few
recognized organizations so that
there is less competition.
7 Impacts of digital technology on
business practices
6
Adoption of technology for direct
selling to customers.
9 Market covered only with
recognized products.
7
Innovation and creativity driven
market in the Germany
6 Internal business practices from
the country.
7
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Increasing annual spending on the
stationary products.
8 Cost and prices is complex to
balance.
8
Quality is preferred in German
market whereas Belgium market
is price driven.
9 Need of high marketing to
penetrate the marketing.
7
Lower taxation and higher
sustainability.
8
Low cost on operations. 8
Increasing sales and scopes in
domestic and international market.
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Total Score 62 out of 80 Total Cons 35/50
Average Pros 77.50 Average Cons 70.00
Application of international standards
The organization has to apply the following international standards in the stationary business to achieve
the sustainability and high profitability without the conflicts and issues:
ISO 85: The standard defines the rules related to the use of paper technology. It enforces the use of
papers those are easily recyclable and reusable. It helps to reduce the use of plastic material within the
papers and enhance the environment friendly use (Heras-Saizarbitoria, 2018).
ISO 9001 and ISO 14001: The standards are mainly designed to support the easy business operations in
the country. The standards are useful to legalize the operations and reduce the internal conflicts among
the organizations. The standards manage the competitive environment and sustainability.
ISO 4046: It is designed to specify the purpose of the product and its use so that it can be classified for
the effective utilization (Bevan and Earthy, 2018). For example, the organization has to register the
products and services according to their use and purpose.
2.5 Costs of a New Building
From the highest principle amount, it is expected that the cost can be last for €200,000 for new building
or infrastructure. The organization can calculate the annual interest with the help of CUMIPMT function
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of the Microsoft Excel. With the interest rate of 10% for annual paying and principle amount of
€200,000, the organization has to pay €430,184.86 as interest and €630,184.86 as the total amount. It is
based on the annual interest paying where organization has decided the interest rate on the annual
amount.
If the organization has to choose the monthly interest rate, then the organization has to pay 12 times a
year. From this the interest rate will become interest rate for a month. Therefore, the monthly interest
rate will become interest rate/months= 10/12 which is equal to 8.3%. From the new interest rate, the
organization has to pay the interest of €1509.57 so that organization has to pay interest of €342,061.54.
Therefore, it can be concluded that the organization has benefits to pay the interest on the basis of
monthly interest rate.
Figure 5: Formula used in Excel
Table 2: Parameters for CUMIPMT function
Parameter Value
Annual rate 10 (Only in number)
PV (Principle value) 200,000.00
NPR (time in month) 360 months
Type 1 (as paid in sating of month)
End time 30 years or 360 months
Starting month 1 (January)
2.6 Mean Value of Orders
The organization can use the average function to determine the mean values of the orders. According to
Donald, he can determine the mean value of the orders where 50 orders can be selected on the basis of
random selection. According to him, the mean value is €230 whereas the €43 is the standard deviation
for the order series. However, it is true that mean value might be differed many times as it is not
necessary to assume that each other is less than or simply greater than by the amount of €43 in
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comparison of the next order. It is possible that the two successive orders might contain higher standard
deviation which can impact the mean value. Therefore, the mean value determined by the Donald is not
as accurate but it provides a general nearby value of the orders where standard deviation is around €40.
Mean value is the average value from the series of the numbers. It is the intermediate value of the series
if all the numbers are made equal to the each other. At other side, standard deviation can be defined as
the average of the differences of the numbers form the defined number. For example, if the basic value
for the list of order is €230 then other orders might be higher or lower than it. So that at each number
difference is calculated on the basis of €230 and then their average is calculated.
2.7 Customer Satisfaction
The organization has to manage the customer satisfaction to enhance the operations and services
according to their demand and expectations as they are final source of the revenue in the organization.
Therefore, on the basis of the questionnaire and result, the organization is recommended to use the
following approaches to enhance the participation:
 Sometime attachments are not considered for the fast and effective answering. Instead to use
the attachments, the organization can use the web links which can direct the users to a digital
form in an interactive manner. It helps to develop their interest to fill the questions at their own
time and opinion (Hair, 2015).
 Also, the organization can use the on-desk delivery method for the questionnaire so that it can
be ensured that most of the users are responding to the questionnaire through complete
concentration.
 The organization also can use the input boxes and contact details to enhance the post-
communication services through the questionnaire so that individual can explain the ideas and
issues in clear manner.
Answer analysis
With the use of average function, it is easy to calculate the effective answers in customer services. The
response for the customer services, quality staff and sales are effective and in between the good and
excellent. However, the price related feedbacks are considerable as the organization has high prices on
the products and services those needs to be controlled to enhance the customer base and sales.
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Conclusion
Report has been concluded that German market has high scope for the stationary products and therefore,
the organization can expand the business in Germany. It is also concluded that overall cost and
competition is low in the country to achieve the feasible business operations. Report also has concluded
that the cost to own the building and manage the orders is effective. The organization also has scope to
focus on the writing and drawing material.
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REFERENCES
Books and journals
Bevan, N. and Earthy, J., 2018. Benefiting from ISO Standards. The Wiley Handbook of Human
Computer Interaction, pp.51-69.
Hair, J.F., 2015. Essentials of business research methods. ME Sharpe.
Heras-Saizarbitoria, I., 2018. ISO 9001, ISO 14001, and New Management Standards. Springer.
Rickert, D., Schain, J.P. and Stiebale, J., 2017. The Effect of Mergers on Retail Prices: Evidence from
Germany.
Rickert, D., Schain, J.P. and Stiebale, J., 2018. Local market structure and consumer prices: Evidence
from a retail merger(No. 280). DICE Discussion Paper.
Online references
Global Stationery Products Industry, 2018 [Online] [Accessed Through]
<https://www.prnewswire.com/news-releases/global-stationery-products-industry-
300524024.html> [Accessed On: 16th March 2018].
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