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Decathlon Analysis

2006-2007 [pic] Abstract : For ten years, the name Decathlon stands out as the European leader on the market of the retail trade of sporting articles. The group Decathlon, has about maintained this leadership thanks to a long-term growth and a strong management policy, shows innovation in diverse sectors, dashing into the creation of lines of technical clothes and sport wear as well as in sports equipment. However, the competition on this sector increased for some years with the increase of the offer of sporting articles sold in hypermarkets and in the concentration of the main competitors as Inter Sport.

Facing a more and more competitive market, it is advisable to be interested in the strategy that Decathlon knew how to set up on its sector to maintain its position. SOMMAIRE I) Historic of Decathlon ………………………………. P 2 A) Presentation of Decathlon……………………………………. p 2 B) Some important dates…………………………………………P 2 II) Marketing mix………………………………………p 3 A) Products………………………………………………………. p 3 B) Distribution……………………………………………………p 4 III) Swot analysis………………………………………. p 5 A) Strenghts and Weaknesses………………………………………………… p 5 B) Opportunities and

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Threats…………………………………………………. p 6 IV) Corporate philosophy…………………………….. p 7 Vocabulary……………………………………………………………. p 9 I) Historic of Decathlon A) Presentation of Decathlon: Decathlon is a French retail company created in 1976. The principal leaders are : Michel LECLERCQ (Chair founder) and Olivier KAUFFMANN (general manager). The sales turnover in 2005 is 3,741 billion euros. The company counts a manpower of 33000 employees on average 28 years old. The group exerts two complementary trades: design and creation of articles of sport > the retail sale of sport articles Leader in the sector of the distribution of articles of sport (approximately 50% of the market), the task of Decathlon is to develop the health by the sport, and to satisfy any sportsman from beginners to experts. The Decathlon stores propose more than 50 Sports either with large brands like Adidas, Nike, Rossignol, or with its own brands. B) Some important date: 1976 : Michel LECLERCQ opens the first ever self-service sports and leisure superstore in Englos, just outside Lille in the Northof France.

It’s a new concept entirely : To kit out all sports people for the lowest possible price. 1986 : “Decathlon production “ is born. It’s purpose is to design and manufacture goods endorsed with an in-house label. In the same year, Decathlon opens its first store outside France in Dortmund, Germany. 1988 : The first interational production office is opened in Asia. 1996 : Decathlon creates its first in-house “passion” brands : Tribord and Quechua. 1999 : Decathlon on heads for new frontiers opening stores in the USA (around Boston) and in the UK (London). 003 : The international adventure takes a new turn on November with the opening of the first Chinese store in Shangai. 2004 : Geonaute and Aptonia are born. 2005 : Kalenji and Fouganza are created II) Le mix marketing A) Decathlon Products Decathlon proposes to his customers sporting articles distributed in 10 sports universes representing 60 sports. It allows the customers to have a clear vision more of the various products of the store. Thus, we can see the Mountain Universe, cycling and roller, blade, nature, team sports, running, racket sports, water and finally health / discovery.

To be even closer to his customers and answer better their expectations, Decathlon created in 1997 the brands Passion, appropriate for every sports universe of his stores. Only exception in the rule, cycling, the flagship product of stores, was always, is and will stay under brand Decathlon. Through these appropriate brands, Decathlon became the first French manufacturer of cycle, shoes and bags. Here are the various brands which Decathlon developed for specific sports domains: – Aptonia for nutrition and health, Artengo for racket sports, [pic] – Btwin for cycling, – Domyos for fitness and dance, – Fouganza for horse ridding, – Geologic for nature sports, – Geonaute for accessories of sportsmen-measure, – Inesis for golf, – Kalenji for running, – Kipsta for team sports, – Quechua for mountain sports, – Starboard for water sports. B) Distribution The conception of stores Decathlon is welcoming, clear and practical. For some years, the name wishes to develop these parks of similar to Villeneuve d’ Ascq’s campus.

It is a question of allowing the customers to practise certain sports near even in the store, the surface allows (climbing walls, mini-grounds of basketball, tracks of roller). It improves the comfort of purchase by proposing very spacious paths. Besides, the name implants gradually spaces Decathlon Journeys, as well as points of fast and health food ” Break forms “. [pic] Having become established in all the big French towns, Decathlon tries to open new selling points in the suburbs of smaller cities. In 2000, Decathlon counted more than 400 stores, among which approximately 200 in France. It is present in 10 countries.

Having opened in Germany, in Spain, in Italy, in Belgium, in Denmark, in Netherlands and in Argentina, the Decathlon opened at the end of 1999 a selling point in Great Britain and acquired at the beginning of year 2000 the American chain (channel) MVP sport, consisted of 18 stores. The name possesses more than 350 stores, of which international hundred, where it is present in 13 countries (Decathlon is implanted in these countries : France, Germany, Belgium, Brazil, China, Spain, Hungary, Italy, Netherlands, Poland, Portugal, Russia, United Kingdom), among which China, the USA and Russia, opened in 2006.

Stores establish the heart of the activity distribution of Decathlon. They use 87 % of workforce from Decathlon and drain 80 million customers, every year, in the world. Their beams welcome 35 000 referenced products, on an average surface of 3000 m ?. About 30 000 co-workers are a part of Decathlon. An average of age of 28 years. 1 employee out of 2 is a woman. 51 nationalities are represented. Whatever the profession among 200 proposed by Decathlon, the accent is put on training. III) Swot analysis A) Strenghts and weaknesses Strenghts |Weaknesses | |Marketing and commercial policy | | Heterogeneous products (fabric, shoes, sport device and accessories)| The brand “Quechua” has a bad image among the 25 -35 years old | |Self shoping concep: the customer may either help himself or request |Decathlon will closed 14 out of its 18 shops in the USA | |for an advise. Decathlon still has a bad reputation because it is proved that many | |Decathlon is listening, watches and analyses what the customer wishes|customers quickly remove the Decathlon stickers as soon as the get out | |High density net of well spotted shops in Europe mainly in France |of the stores. |Decathlon is expecting a tremendous development in China | | |The estimation for the advertising budget rises 12 million euros in | | |the year 2004 | | |Efficient price policy which proves to be lower than the other | | |retailers | | |wide range of prices to please a maximum of customers (beginners to | | |high-level experts) | | |Partnership with wellknown sportmen under the “Quechua” brand, for | | |instance

Karine RUBY in snowboard | | |Financial welfare and debts | | Decathlon is leader on the market with a turnover of 3,4 billion | High investment costs and running costs of the stores | |euros for the year 2004 |High rate of exchange (euro to dollar) for its American subsidiaries | |Increment of the sales in 2005 | | |Management and direction | | strong group management customs | The shares are mainly owned by the Mulliez family which implies that | |Dynamic methods of management |any new strategy should be submitted to there approval | |Humans resources | | Keen hiring regulations | Company wages are not attractive | |Friendship, self-training and speed are put forward | | |3000 people hired in 2004 among them 410 “responsable univers” | | |Production and logistics | | Decathlon was formaly only a retail store and became manufacturer | High production costs for R & D and work with subcontractors | |after 1986 (The actual produc | | |2500 suppliers in 18 countries | | |Deliveries within 2 and 72 hours in order to | | |make the customers satisfied | | |Quality | | Decathlon offers quality and service which is now famous among the | Stores rrangement and presentation of the goods are two point to be | |costomers |improved | |A specific point is the very good ratio price to quality concerning | | |the line of product “passion” | | |Search and development | | Many production engineers, designers, conceptors are working on new | R & D is up to 15 % of the turnover | |products | | |R and D has started a survey of the human body in motion in order to | | |improve safety, comfort and pleasure for all sportmen | | B) Opportunities and Threats Opportunities |Threats | |Policy | | Creation of public sports equipment by local authority (gymnasium, | | |swimming pool, tennis court, golf, track of roller) | | |Economic | | France is to be considered as the biggest European market |Strong competition due to a high concentration of specialized | |Development of sport products market is up to 1,10 % |hypermarket | |Average increase of family sport spendings |More and more hypermarkets are coming to sport devices market | |Larger offer in sales surfaces |Stagnation of the market according to arrival of new comers | |Sportshops happen to reach surfaces as big as ypermarkets such as | | |11000 m2 | | |Sport business provides jobs to 40000 workers | | |France = 4000 sale-spots | | |= a sale surface of 1,8 million m2 (square meters) in the year 2000 | | |Social aspects | | Generalization of the current sport practice (84 per cent of people |The older the people are the less they pratice ( few exceptions, such | |older than fifteen pretend being a sport adepte) |as: golf, petanques… ) | |Over 10 million citizens are members of clubs and up to a half are |According to a possible drop in the general family spendings there is a| |often engage in competition contests. |risk of shortening the spending in sports activities. | |More and more free time and purchasing power |High wages persons (executives, lawyers… ) are usually easy spenders | |Today practice has a much better image (health, |but they often lack time to practice | |body-care,mental-care… | | |Technology | | Research brings discoveries to improve and renew materials | High speed evolution in the outdoor products as well as the winter | |confection wear techniques and so on… |sports products (skis… ) as the immediate consequence of making | |Development of the computerized systems and techniques in sport |products quickly obsolete | |business | | |Ecology | | Outdoor sport are reputated to bring harmony with nature | |Legal regulations | | |Restriction in oppenning alowances of new hypermarket spots. | IV) Corporate philosophy Why the name Decathlon? The decathlon is a demanding and complete sporting discipline which gathers 10 different sports. It is the test queen and the company wishes to gather all these qualities in its daily work. In spite of a strong notoriety in particular thanks to its slogan “a fond la forme”, Decathlon is anxious to keep its dominant position on the market of the distribution of articles of sport. The group wants to satisfy the customers while answering their need. satisfied sportsmen, it is our trade” or “sportifs satisfaits, c’est notre metier” such is the catch phrase of the company. This objective imposes a strong manageriale policy. the recruited personnel is exclusively made up of sportsmen passioned to be on the same wavelength as the customers. The company culture is strong, the decathlonniens carry the fundamental values of the sport: vitality, true state of mind, fraternity and responsibility. This policy is to reinforce by many formations for the personnel who must be dynamic, smiling and available for the customers. That explains the fact that the majority of the employees are young and for the majority students. Moreover, Decathlon proposes more services such as events, Trocathlon… what makes it possible to offer possibilities of training course for the students. Vocabulary Sale-spot = Point de vente Purchasing power = Pouvoir d’achat Self shoping concep = Libre service Retailers = Detaillants Turnover = Chiffre d’affaire Suppliers = Fournisseurs Rate of exchange = Taux de change Subsidiarie = Filliale Arrangement = Agencement Store = magasin Flagship product = produit phare Signboard = enseigne Climbing wall = mur d’escalade Path = allee Suburb = banlieue, peripherie Beam = rayon Leaders = dirigeants Trades = metiers Design = conception Retail sale = vente au detail Catch phrase = devise Outlet stores = magasins d’usine To drain = Name brand = ———————– Mme Chollet Groupe 1 [pic] [pic]


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