CASE STUDY : RELIANCE DIGITAL OUTLET IN SINGAPORE

SUBMITTED
FOR
FULFILLMENT OF
DIPLOMA IN BUSINESS AND RETAIL MANAGEMENT

STUDENT NAME: JAGTAR SINGH

STUDENT IC: G1983848Q

PROJECT GUIDE: Mr. RAYMOND CHAN

International Management and Sports College

1 Stadium Place, Kallang Wave Mall
Singapore

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 Table of Content

Sr. No. Contents Page no.

1 Introduction 3
2 SWOT Analysis 5
3 Vision, Purpose, Values and Promises 6
4 Products/ Services Profile 7
5 Location analysis 9
6 Retail Strategy 11
7 The McKensy’s 7S Framework 12
8 Organisation Structure 14
9 Analysis of Financial Statements 16
10 Launch and promotional plan 17
11 Conclusion 18
12 References 19

Introduction

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Mitre Sports International Ltd., known as Mitre, is an English sportswear and
equipment manufacturer, being the oldest of its kind in the world. Existing for over 200
years, the company was established in Huddersfield, England, in 1817 and is now
owned by the British family owned company The Pentland Group.

Mitre currently uses the "Delta" football in competitive professional matches. This
includes the Football League Cup, The Football League, Scottish Premiership, Welsh
Premier Division and the Football League Trophy. Mitre also supplies many other
competitions including the Isthmian League, Evo-Stik Southern League, Spartan South
Midlands League and many more. These leagues play with a variety of footballs
including the Delta Hyperseam, Max Hyperseam and ProMax Hyperseam.

Internationally the sports brand Mitre have their football used across a variety of
competitions around including the AFF Championship and the S.League.

Vision Statement
Quality is written all over our products

Mission Statement
Seize the moment #This is Mitre

Tagline
If it’s a ball, it’s Mitre

Executive summary: -US expansion plan

The traditional company has been resting on her laurels in their local success story for too long.
Over the last 20 years, we have seen how Adidas and Nike have totally stole the world-wide
football market. With an eroding brand, the cost of doing nothing can prove fatal.

Aside from the well-known brand in the UK, they are much less well-known in the other parts of
the world. Furthermore, being a company with an annual turnover of USD300,000. they are in
no position to fight with the big boys – Adidas and Nike.

Mitre must continue to do what it does best, leather and innovative material for balls and related
accessories.

Market Analysis

FOOTBALL: UK Vs USA market.

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 ● Soccer – UK market
Mitre, Adidas, and Nike were the three top brands when football participants last
purchased a ball, obtaining 67% of the UK market.
● However Mitre International Limited total turnover was only USD15 mil.

Compared to the USA market size – USD127.9 for soccer balls only.

● Soccer equipment – USA

Soccer equipment ranges from balls and protective gear, to goal nets and apparel. Nike
and Adidas are two of the top European soccer club kit manufacturers. The two brands
are sponsors of the two of the biggest soccer stars, Cristiano Ronaldo and Lionel Messi,
respectively.

Soccer equipment wholesale sales in the U.S. from 2007 to 2018 (in million U.S. dollars)

United States Soccer Balls (Thousands Units) and Revenue (Million USD) Market Split by Product
Type such as Mini, Size 3, Size 4, Size 5 & Other. Further the research study is segmented by
applications such as Direct Sale & Distribution with historical and projected market share and
compounded annual growth rate.
Geographically, this report is segmented into several key Regions, with production,
consumption, revenue (million USD), and market share and growth rate of Soccer Balls in these

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regions, from 2012 to 2022 (forecast), covering The West, Southwest, The Middle Atlantic, New
England, The South & The Midwest

PESTEL Analysis:

Political

There are many countries where Mitre supplies its products such as England, UK,
Ireland, Australia, South Africa, Denmark, etc. In these countries, the political
environment is stable and the government is elected by common people in particular
countries. Many of these countries have inserted euros in their export and domestic
market which means that it becomes easier for Mitre to trade with these countries. This
can be taken as an advantage for Mitre, as it would not face any issues regarding
exchange rates when exporting or supplying their products to other countries. In
countries like the UK, elections influence interest rates which make an impact on Mitre.
It means that the majority of that country’s people will have disposable income and then
Mitre can take action to use good advertising campaigns. Apart from this, Mitre will have
to be aware of pressure groups or political parties those trying to put bans on methods
that it may use in manufacturing footballs. This may be a ban on using leather which is
made up of animal’s skin, to make football boots. On the other hand, it should also be
aware of any kind of help it can get from the government. Helps may be in terms of
getting subsidies from the government in order to establish Mitre branches in highly
unemployed areas. It would be a great help for Mitre as it would also make them sure
for developing their brand all over the world (Inside view, 2012).

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Economical:

Economic environment demonstrates the trends and events of a particular region or

country and also explores the influence of such changes on buying behavior of
consumers. England, a part of the UK, where Mitre is established is known for one of
the largest economies of the entire world and having a population of more than $50
million. Additionally, the inflation rate, rate of unemployment and total debt of the
country influence Mitre to decide upon its pricing and promotion of the products.

Social:

As Mitre is a multinational company, decisions made with respect to designing of a new

product and advertising campaign affect the company. A very big decision that has to
be made by Mitre is how it will make the products available to its customers, be it
professional player, school players or local buyers. To make this possible and effective,
it should analyze the buying habits of consumers so a general idea can be gripped of
what customers actually want. Moreover, it will also include assessing the increasing
usage rate of online shopping as compared to buying products directly from shop or the
market. In this regard, Mitre can consider both religious and political aspects of
countries it is trading with.

Technological:

Mitre uses different technologies to make their product different and unique from others.
In this context, companies need to be aware of new and updated technologies through
which products would be made easily and reasonably. This advancement can provide
Mitre with a competitive advantage to gain in the market. Another specific area for Mitre
to get focused upon is online sales because Mitre can realize that if they expand their
online business, they can gain much profit out of it in this technical world. On the other
hand, it can use various technologies in advertisement of products. Technologies can
be put forward in order to get a lot more from its advertising campaigns such as Mitre
introduced freestyle campaign (Oxford University Press, 2007).

Environmental:

Environment plays a vital role in any kind of business, be it domestic level, national or
international level. There are a few environmental factors which should be considered
by Mitre while planning for a marketing strategy. First, it has to choose the type of raw
materials to be used in the manufacturing of football. It uses mainly animals’ skin to
make their products from leather. In this framework, it requires taking synthetic

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materials into account instead of using animal’s skin so that animal’s killing could be
stopped and cost of obtaining such materials can be reduced as well. It totally depends
upon the company how it obtains the material without harming the environment as much
as possible. On the similar hand, it will also influence the pressure groups if they do not
harm the environment and will result in profit from other countries as well.

Legal:

The laws are made to be implemented and followed by every organization because
these laws help determine how a company conducts its business. Therefore, it becomes
necessary for a business to comply with these laws and regulations established else
they would have to pay a high price on account of not abiding by laws. One of the most
known legislation that has to be obeyed is consumer protection legislation. Others may
be trade description act, sales and supply act and act of weights and measures.

SWOT Analysis of Mitre:

Strengths

● Innovative design and technology

● Oldest football manufacturer
● World class products
● Long history
● Strong subsidiaries and staff
● Strong brand in the UK

 Weaknesses

● Brand erosion overseas due to lack of exposure

● Not so well known in other countries
● Undifferentiated products as compare to its competitors
● High price of products compared to Adidas and Nike

Opportunities

● Online global marketing

● Japan Olympics 2020 and World cup 2022 Qatar
● Growing US MLS Market
● Growing EPL and Prima Liga in Spain.

Threats

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● A large number of stronger competitors
● Losing consumer preference’s awareness
● Competitors’ marketing approach and competitive strategies
● Economic recession in EU
● Revenue basically relies on discretionary income of customers

Target market segments

Target market is defined for a specific group of people who are selective and most
interested in soccer.

There are a few sections on the basis of which segmentation is made such as
demographic variables like age, gender, education, income, occupation and status.
Therefore, Mitre’s segmenting market has basically targeted athletes and both male and
female those are generally from the ages of between 15 and 35. The target market also
involves professional players of different countries where Mitre supplies its balls in.

To do so Mitre has mainly concentrated on creating first-class consumer experiences on

eminent retail presence, product innovation and its brand leadership in the global
market. Apart from this, Mitre has targeted geographic expansion as well as marketing
penetration in all regions where football and soccer games are played.

● Major League Soccer (MLS) is a men's professional soccer league sanctioned by

the United States Soccer Federation which represents the sport's highest level in
the United States and Canada. The league comprises 26 teams—23 in the U.S.
and 3 in Canada and constitutes one of the major professional sports leagues in
both countries. The league plans to expand to 30 teams with the additions of
Austin FC and Charlotte in 2021, then Sacramento Republic FC and a St. Louis
franchise in 2022.

● College Soccer - There are more than 1,400 college men’s soccer teams spanning five
different division levels: NCAA Division 1, Division 2, Division 3, NAIA and NJCAA (also
referred to as junior college or JUCO). Each division level—and school—provides
student-athletes with their own unique experience. 

● Casual players, - neighbourhood / young children playing.

Strategy

Due to financial constraints of a family business. Recommended to take small steps that
can be taken for project’s implementation and controlling the activities.

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USA Strategy

● 1st phase: Online shop - direct distribution with channel partners – Setup an Amazon
online store with a major distribution centre in the USA.
● 2nd phase – Work with a major distributor in the USA for bulk orders with established
networks in tournaments and college teams.
● Work with Walmart to make Mitre soccer balls easily available in the USA catered to
neighbourhood casual players.

Europe Strategy

Work with established sports equipment marketer in Spain, Italy, Germany, Netherland
and France where soccer is popular.

Competitive Advantage
Competitive advantage of an organization helps it win and compete with its competitors.
Mitre has two main competitive advantages which are as follows:

● Cost advantage: It states that similar products can be produced at lower cost.
● Differentiation advantage: It demonstrates that premium price can be kept for unique,
innovative and high quality products.

The key competitive advantage which Mitre has is that it sells its products to schools,
domestic and international markets and to professional players demanding high-class
balls and other related products.

Products – Merchandise Mix

Mitre continue to maintain existing product line:
● Soccer balls
● Soccer related accessories
● Rugby balls
● Volleyball
● Softball.

Distribution Strategy

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USA Distributors
Premier Soccer
Location: Charlotte, NC, Chesapeake, Norfolk, VA Beach, Williamsburg, VA
Established: 1989
Web: Premier Soccer Shops

Soccer USA
Location: 6612 Mission Gorge Rd, Suite A, San Diego, CA 92120
Established: 1982, San Diego
Web: Soccer USA

European Union distributors

Euromex Soccer
Location: 246 East 116 St, NY, NY, 10029, 5805 5 Ave, Brooklyn, NY, 11220
Established: 1994, NY
Web: Euromex Sports

Niky's Sports
Location: 7th St, LA, Pico Blvd, LA, Wilshire Blvd, West LA, Florence Ave, Bell Gardens,
Palmdale Blvd, Palmdale, Tweedy Blvd, South Gate, CA
Established: 1986
Web: Niky's Sports

Italy distributors
Garlando Sports & Leisure
VAT no. IT01055180069 Registered in Alessandria - REA 138588 - Capital Stock €
2.035.000,00 entirely paid

Spain distributor
Technology Sport
https://www.technologysport.com/
Crossing of Sacedon
4 Villaviciosa de Odon
28670 Madrid

France distributor
France & Belgium (French Region)
Netsportique

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http://www.netsportique.fr
Holzhauser Str. 60
77866 Rheinau linx

Germany distributor
bfp Versand
https://www.bfpversand.de
Logabirum Str. 10 A
D - 26789 Leer

Netherland distributor
Soccer Concepts
https://www.soccerconcepts.nl/
Lageweg 28
6621 BS Dreumel
Nederland

Sales and Promotion Strategy

● Digital marketing strategy- Facebook,Instagram,Pinterest,Twitter - To raise awareness in

the US and European market.
● The advertising concept- To remind the audience the formal glory of Mitre sports -
When Mitre used to be the world cup ball standard.
● Create events directly on its app such as entertainment shows as well as programmes
featuring celebrities to encourage users to buy and sell on its platform, "These
strategies attracted users to stay engaged on the app."
● Introducing the web app to the users.
● Introducing the mobile super app to the consumers.
● Proper offline advertisements and promotions based on the banners and the Radio
advertisements.
● Making use of affiliate networks like coupon websites, review websites, influencer /
bloggers .
● Publicity with major e-newspapers and websites.
● Running Contests / Gamification.

● Focus is on Customer acquisition and engagement.

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 Financial Plan

The company is performing strong financially and thus concentrates on a range of

environments. Mitre aims to be concerned about the sustainable growth, profitability and
sturdy cash-flow and strong balance sheet. Its main financial objective is to have
flexibility in investing in their unusual business and then building up shareholders’ value.
Some financial objectives are as follows:

● High growth in company’s total turnover.

● Turn into high growth in the US market.
● Target to capture 10% market share = 12 million US dollars.
● Target to capture EU Market share 20% estimated to worth 40 million US dollars.

Conclusion

Mitre Sports International Ltd. design and manufactures sports goods. The
Company offers playing kits, bats, balls, bags, training wears, gloves, guards,
footwear, protective equipment, and other related products.

The above projection is only for soccer balls. As once their brand is accepted in
the US and UK market, Mitre’s other products such as Rugby Balls, Protective
gears also sell along with them and in future Mitre might have the option to make
and sell jerseys to same markets.

Future Plans-As Mitre grows financially stronger. They can afford to sponsor
Football teams and players.

References

https://industrytoday.co.uk/market-research-industry-today/soccer-balls-market-rising-demand--
growth--trend---insights-2018
Information provided by SPORTS MARKETING SURVEYS INC

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