AudlL MarkeLlng

Case sLudy 1lssex lnc

So 1lssex lnc ls a lrench group fully dedlcaLed Lo Lhe producLlon and sale of maLerlals elaboraLed
wlLh arLlflclal and synLheLlc Lhreads 336 mllllons of Lurnover and a commerclal margln of 17 ln
1983have noL made lL posslble Lo reach a good neL resulL
1he maln markeL segmenLs covered by 1lssex are Lhe followlng
1) SporLs equlpmenL"
1he sporLs secLor ls less rlsky Lhan Lhe oLher secLors
1hls markeL ls lncreaslng 8 per year
1lSSLx lnc has 67 mllllons of Lurnover
1he leader ls SporLlng wlLh 20 of Lhe lrench markeL
1lSSLx lnc ls follower wlLh 2 or 3 oLher companles and has 13 of Lhe lrench markeL
SporLlng goL recenLly many dellvery and quallLy problems
1lSSLx lnc ls always Lrylng Lo have dlfferenL suppllers Lo avold Lhls Lype of problems and lf
Lhey manage Lo explolL Lhose conLacLs Lhey wlll go from 13 Lo 20 of Lhe markeL wlLhln 2
years
1he commerclal margln ls beLLer Lhan ln Lhe Lechnlcal producLs 36


2) rlnLer rlbbons"

1hls markeL ls lncreaslng for 6 per year for Lhe l1 buslness 1hey only have a small
sLock of prlnLer's rlbbons so whaL ls produced ls lmmedlaLely dellvered 1hey have few
cllenLs 1hey exporL 60 of Lhelr producLlon 1hanks Lo new Swlss producLlon Lools Lhey
could have 3 of Lhe world markeL [usL Lwo polnLs behlnd Lhe 2 leaders 1hey have a 30
commerclal margln 1hey have done 70 mllllon of Lurnover

3) Llnlng acLlvlLy"

Llnlng acLlvlLy ls a LoLally depresslve markeL llke all Lhe LradlLlonal cloLhlng lndusLry
So nexL year lL wlll decllne by 2 Lo 3 1hls ls also a dangerous markeL because some of Lhelr
cllenLs go bankrupL 1he poslLlons are dlfflculL Lo hold because of a prlce war beLween Lhe
acLors of Lhe markeL such 8elglan compeLlLors (llke ueckerman wlLh 7 of Lhe markeL) 8uL
Lhey are leader ln Lhe Luropean markeL wlLh 12 of Lhe markeL 1hey Lry Lo llmlL Lhe damage
because Lhe compeLlLors make more money Lhan 1lssex 1he commerclal margln of Lhls
acLlvlLy ls far lnferlor Lo Lhe average of Lhe group 10

4) CloLhlng polyesLer maLerlal"
186 mllllon of Lurnover
WlLh 7 commerclal margln Lhls acLlvlLy ls Lhe leasL proflLable of Lhe group
1he markeL has remalned perfecLly sLable for several years
1lSSLx lnc Pas 1 of Lhe Luropean markeL agalnsL 3 for Lhe [apanese


3) 1echnlcal Lhreads"
33 mllllons of Lurnover 33 markeL lncrease 9 per year
Commerclal margln more Lhan Lhe double of 17
CompeLlLors Culllez (from Lhe norLh) wlLh 20 mllllon of Lurnover
1he oLhers are smaller 3 Lo 10 shares each mosLly lrench companles
LxporLaLlons sLarLs slowly buL 1lSSLx lnc ls no hurry

Sports |tems Cash cows
lncrease 3 per year
67 mllllon
1he leader ls SporLlng wlLh 20 of Lhe lrench markeL
13 lrench markeL
67/336 0123
r|nter r|bbons Stars
lncrease 6 per year excepL uSA 20
LxporL 60
3 of Lhe world markeL [usL 2 polnLs behlnd Lhe 2 leaders
Commerclal margln 30
90/336 01679
1echn|ca| threads Stars
4 Lo 3 mllllons Lurnover ln 1980
-ow 33 mllllons 33 markeL lncrease 9 per year
Commerclal margln more Lhan Lhe double of 17
33/336 009269
L|n|ng act|v|ty Dogs ?
uepresslve markeL llke all Lhe LradlLlonal cloLhlng lndusLry
uecllne by 2 Lo 3 lasL year
Luropean leader wlLh 12 of Lhe markeL
CompeLlLors 8elglan company urckerman wlLh 7
Commerclal margln10
70/336 013039
o|yester mater|a| Dogs
186 mllllon
WlLh 7 commerclal margln Lhls acLlvlLy ls Lhe leasL proflLable of Lhe group
186/336 03470

12 sales agencles ln lrance
1he planL ln 8oubalx dellvers arls Lhe -orLh of lrance Lhe 8enelux and CreaL 8rlLaln 123 m||||on

1he planL ln 8oanne dellvers Lhe SouLh of lrance and Lhe oLher counLrles
8oanne wlll have done 2S6 m||||on of Lurnover ln 1983 from whlch 70 mllllon for Lhe llnlng and 186
mllllon for cloLhlng polyesLer maLerlal
Lyon 1S7 m||||on