Amscan Competition
Now Viewing Amscan's competition in: Retail Sector
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who is the company's typical customer? - Customer demographics vary by retailer and can be different within a retail segment. For example, while women buy more clothing and beauty products, men are more likely to buy motorcycles and consumer electronics.
What demographic factors affect the company's target market? - Demographics, including the aging US population, growth of minority populations, and Generation Y, affect retailer strategy and marketing.
What are the company's most effective marketing and promotional vehicles? - Common marketing and promotional vehicles include TV, print, radio, and newspaper advertising; direct mail; and in-store events. Small retailers benefit from grassroots marketing, word-of-mouth, and local event sponsorship.
What does the company's brand name represent to customers? - Retailer brand names and brand name merchandise help attract a distinct clientèle.
How important are special sales and markdowns to the company's marketing plan? - Retailers may hold special sales or events to drive store traffic, introduce items, or clear out excess merchandise. Discounts or markdowns are common in some categories, such as women's apparel.
How important is consumer research to the company's merchandising and marketing operations? - Large retailers rely on extensive consumer research to guide merchandising and pricing decisions. Syndicated data helps companies track competitors' performance and evaluate the effectiveness of marketing programs.
How would the company's customers rate its customer service? - Customer service tends to be more important for expensive products (such as cars) or sophisticated products (electronics). Many retailers measure customer service through surveys or follow-up phone calls.
What role does the Internet play in the company's marketing strategy? - The Internet has greatly affected the retail operating model by expanding consumer access to goods and allowing consumers to compare prices more effectively. Many traditional retailers have established websites to develop an online presence, offer an expanded merchandise selection not available in stores, and compete with Internet-only retailers.
How important is price in the company's retail category? - Retailers may offer merchandise in multiple price tiers to appeal to a broad customer base. Brand name merchandise (including designer brands) is typically the most expensive. Discount brands appeal to price-conscious customers.
How important are sales of company's private-label merchandise? - Large retailers may offer private-label or store-brand merchandise, which offers comparable quality but costs less than brand names.
Competitive Landscape
Personal income, consumer confidence, and interest rates drive demand. The profitability of individual companies depends on efficient supply chain management and effective merchandising and marketing. Large companies have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by selling unique merchandise, providing superior customer service, offering a distinctive shopping experience, or serving a local market. Annual revenue per worker averages $250,000, but ranges from $600,000 for new car dealers to less than $200,000 for grocery stores.
Business Challenges
CRITICAL ISSUES
Retail Demand Depends on the Economy - Economic factors, including personal income, consumer confidence, job growth, and interest rates, can greatly affect consumer spending and the retail sector. During recessionary periods, retail sales growth can slow drastically and even decline. Retail spending grows rapidly during periods of strong economic growth, as consumers spend a greater share of income and increase their personal debt. Rising interest rates affect consumer credit and consumer ability to finance large retail purchases, such as cars.
Industry Concentration - In many retail segments, large companies dominate and hold the majority of the market. Even specialty retailers in fragmented markets must compete with mass merchandisers and warehouse clubs that offer a smaller selection of comparable merchandise at low prices. Suppliers favor large retailers by offering volume discounts. With limited marketing funds, small retailers struggle to compete with the large advertising budgets enjoyed by major retailers.
Industries Where Amscan Competes
- Retail
- Party & Holiday Accessories Retail(primary)
- Consumer Products Manufacturers
- Housewares
- Collectibles, Giftware & Commemorative Products
- Office, School, & Art Supplies
- Housewares
