Mr Price Business Model

BACKGROUND OF MR. PRICE

The Mr. Price group limited is a fashion group retailer which sells mainly for cash. The group deals with fashion clothing, homeware as well as Sportswear. The divisional sales split for the Mr. Price home in the Mr. Price group limited is 6%. The Mr. Price group limited was opened 25 years ago with the dream was that every associate hold their shares and use the long-term growth in the value of those shares to build financial security and a foundation for a happy home life.

The Mr. Price group limited has a business model that offers fashionable merchandise at a complete excellent value that is expected by the consumers. The group’s value model can be referred to as the core of the groups opening as well as the existence.

Market research is essential in order for the business to attain excellent information about the new entrants in the same market environment. If greater opportunities for profits lie in the market, the more likely there will be new entrants to the market. The threat of new entrants in the market can be diminished if there great barriers in relation to entering the market. Some of these barriers which may diminish new entrants from entering the market that Mr. Price Sport operates in, may include customer brand loyalty, government policies huge capital outlay and limited distribution channels. Although these barriers can prove to be an advantage for the already existing businesses, it makes it more difficult for a business to indulge in diversification. However, Mr. Price Sport has been in the market for quite some time and has developed a well known brand. There is a new entrant in the market, Cross Trainer, but it may take some time before Mr. Price Sport can be overtaken by the new entrant. Mr Price Sport does not have to worry about the new entrants as they already have developed a brand customer loyalty. Mr Price Sport also offers good quality products at affordable rates for their

If the business, such as Mr. Price Sport, sells to the final consumer, it is vital for them to know who the buyers are in terms of demographics. Mr Price Sport has a wide range of target market; therefore their demographics can range from almost anything. It is important that Mr. Price Sport uses the most appropriate criteria when doing market segmentation as a geographical profile. For example the m price Sport located in Ballito, is a perfect location. There is a gym nearby, where equipment is needed. There are schools around the area which indulges in various Sporting codes therefore requiring certain equipment from Mr. Price Sport. The store is located in a busy environment and is close to its target market. The buyer has all the power therefore it is important that the business complies with the appropriate measures in order to lure the customers. If the buyers are not completely satisfied with Mr. Price Sport they have to option of choosing another store which is a competitor to Mr. Price Sport. Therefore the business will have to do all in its power to give 100% to its customers/target