Analysis of Exact! Stores
Introduction
This case analyses the market strategy behind the introduction of Exact! Universal Apparel. In the past, the Foschini Group owned a chain store called Pages. Pages had been a successful chain in the past, but it targeted a different market to the target market identified by Exact!. Pages target market was focused on the LSM 2 – 4 market., whereas Exact! Target market focused on LSM 4 – 8. In this assignment, I have identified the problems and challenges facing Exact!, the various marketing strategies that can be identified in analyzing the case as well as proposed solutions in order to grow the company from strength to strength.
2 Identification of the problems
I have identified several problems / challenges facing Exact!:
• Customers are spending disposable income elsewhere. It is mentioned in the case that consumers are spending more money in casinos, lottery tickets and cell phones.
• The granting of credit is also going to become increasingly difficult with all Retail outlets and in this particular case, with Exact! In addition, the petrol price is at an all time high in South Africa. Inflation is reaching double digits and customers can no longer afford to service their debts. Food and other essentials are far more important in terms of priorities consequently, consumers will not be able to afford to pay back their debts.
• Another issue that I believe could lead to bigger issues is the fact that the Foschini Group outsource a large proportion of the expertise required by Exact!. Often these expertise is outsourced to a company that is based abroad which leads to additional problems.
• The biggest risk that I believe Exact! is facing is the fact that they are copying the Gap Model used in the United States of America. Whilst it may work for a period of time, it is important to note that what is successful in what country / place is not necessarily successful in another. The Gap Chain store has been around for many years whereas
This case analyses the market strategy behind the introduction of Exact! Universal Apparel. In the past, the Foschini Group owned a chain store called Pages. Pages had been a successful chain in the past, but it targeted a different market to the target market identified by Exact!. Pages target market was focused on the LSM 2 – 4 market., whereas Exact! Target market focused on LSM 4 – 8. In this assignment, I have identified the problems and challenges facing Exact!, the various marketing strategies that can be identified in analyzing the case as well as proposed solutions in order to grow the company from strength to strength.
2 Identification of the problems
I have identified several problems / challenges facing Exact!:
• Customers are spending disposable income elsewhere. It is mentioned in the case that consumers are spending more money in casinos, lottery tickets and cell phones.
• The granting of credit is also going to become increasingly difficult with all Retail outlets and in this particular case, with Exact! In addition, the petrol price is at an all time high in South Africa. Inflation is reaching double digits and customers can no longer afford to service their debts. Food and other essentials are far more important in terms of priorities consequently, consumers will not be able to afford to pay back their debts.
• Another issue that I believe could lead to bigger issues is the fact that the Foschini Group outsource a large proportion of the expertise required by Exact!. Often these expertise is outsourced to a company that is based abroad which leads to additional problems.
• The biggest risk that I believe Exact! is facing is the fact that they are copying the Gap Model used in the United States of America. Whilst it may work for a period of time, it is important to note that what is successful in what country / place is not necessarily successful in another. The Gap Chain store has been around for many years whereas