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Section – 1
The forces which impact on organization’s trading and ability to satisfy its
customers are termed as marketing environment and falls into two categories.
The very broad forces are the Macro Environment – (SLEPT) Social, Legal,
Economical, Political and Technological.
Social Factors : The people of Spain are very fashion-conscious and may take
well get the wrong impression of a person if they are not properly dressed. In
Spain, style and an overall good impression is much more important than flesh-
baring flashiness. When entering a church, your clothing should scream:
"Conservative and stylish." Public places, for example clubs and restaurants,
also expect you to dress at least smart-casual.
Spaniards are passionate about their sports. Football is very popular and with the
large amount of snow covered peaks in Spain, skiing and snowboarding have a
large following too. Spains' success on cycle tours around the world and the
popularity of Spanish cycling hero Miguel Indurain have given rise to a new and
enthusiastic cycling generation.
In Spain, active wear and sportswear have become part of street fashion, are sold
by the increasing number of large, high street sports chain stores and are worn as
leisurewear. Non-specialist outlets like clothing stores, department stores,
hypermarkets and other outlets have also noticed this trend and included large
sections in their stores of this type of active wear.
Legal Factors: Spain has a civil law system, with regional applications. Most
small and medium sized companies appoint partners of law firms as company
secretaries on a retainer basis to cope with the plethora of legal obligations.
Company law is governed by local laws (ley de sociedades etc) and by the
commercial code (códigodecomercio) which defines invoice requirements and so
on.Also recently EU proposed Directive combating late payment in commercial
transactions. It applies to all businesses including incorporated and
unincorporated businesses and self employed who carry on a trade and
professions of any kind. Aim of proposal is to encourage respect of contractual
payment period, for benefits of all business. It gives rights to the creditors for
adequate compensation when they paid late and to introduce or improve
procedures to recovering debts.
Economical Factors: Over the last decade Spain has undergone a period of
modernization, investing heavily in its transport infrastructure. The country now
has 33 international airports and 44 seaports. The textile and apparel sector in
Spain is modern and rapidly growing. The country's economy relies heavily on
this sector which employs more than 275,000 people, and accounts for 10.7
percent of the nation's total industrial employment. In the textiles sector, the
market for apparel in Spain is the most important with several events taking place
throughout the year that stimulate demand. These events continue to highlight
Spain’s image as an international center for the fashion business.
The industry is expected to grow in the next few years thanks to rising wages and
increasing employment. Increased purchasing power will benefit the apparel
industry especially as Spain has been the fastest growing major economy in
Europe over the last 3 years.
Companies have chain of Stores in UK selling sports wear for both gender and
for teenagers and youngsters. Company promote their sportswear range with the
brand name “WOODLAND”.In home market, it is successful because they offers
sportswear with good quality of cloths and are less expensive compare to other
branded sportswear like addidas, Nike etc.In Uk, appeal of sportswear is strong
as people are veru crazy about sports specifically football,cricket,ruby etc. Our
specific target market are Teenagers ( Age 13 – 19 ) and young ( age 20-30)and
middle age people ( Age 35- 50 ) our sportswear clothing includes t-shirts and
trousers for all the sports.
4.1 Oppurtunities In Market : The major stimulant in sales has come from the phenomenon of sportswear being
worn as leisurewear. In Spain, active wear and sportswear have become part of street fashion, are sold by the
increasing number of large, high street sports chain stores and are worn as leisurewear. Non-specialist outlets like
clothing stores, department stores, hypermarkets and other outlets have also noticed this trend and included large
sections in their stores of this type of active wear.
Another stimulant is the trend among young people to be seen in branded clothing, shoes and boots. The big
brands Nike, Adidas and Reebok have benefited from this trend and are now leading the EU sports footwear and
clothing market.
4.2Its product positioning in the market would very much depend on the branding and how
well it’s associated with the culture of the consumer in Spain.
4.3 Distribution/Business Practices
Sports specialist shops dominate the retail distribution of sports goods in the EU, accounting
for around 60 percent of the market. Significant chain store retailers, who have a large share in
the domestic market, have actively expanded their operations in other EU markets. As a result
of the success of chain stores, the market share of independent, non-organized sports shops has
been drastically reduced, forcing many of them to join larger organizations or buying groups
(Intersport or Sport 2000), become franchisees or close down. Rationalization in the industry
and the globalization process has resulted in numerous mergers and acquisitions within the
sports goods industry. This allows manufacturers and retailers to increase their market shares
and to penetrate new markets. Buying groups had a strong position in the 1990s, but continued
to join forces in order to compete with sports chain stores and non-specialized retail outlets.
Mail order has increased its market share of sports goods in most countries. Catalogues are
more fashion focused and offer the leading brands of sportswear. The mail order business is
now gradually shifting to e-commerce.
This shows “ActionWare” to enter into spain market using “Piggy Baking”
technique and get benefits of all ready established distribution channel.
4.4 The promotional mix :
http://www.umsl.edu/services/govdocs/obr/obr_0019.htm