Executive Summary

This report is a critical analysis of The Warehouse and the business environment with which it exists in. With application of the Marketing Toolkit we have identified market opportunities, estimated the market potential and profiled customer segments.

Key findings were;

Competing in the mass-market discount retailing industry. Core market segment are families. Low price – high sales volume business model.
Environmental, social responsibility, economic cycles are key external environment factors.
Buyer and supplier power are the two most important industry factors.
Clothing, homeware, entertainment and consumer electronics are the most attractive product categories.
A competitive advantage is sustained by maintaining ‘bargain’ and ‘value for money’ strategies.
Have adopted a market penetration strategy.
Diversification and competitive gap has closed with competitors slightly due to a 0.7% decrease in potential sales in 2011.
High growth/high share product portfolio was dominated by technology categories, low gowth/low share was reserved for books.

In key target market of families, there are estimated to be 300,000 household units in the Auckland region.