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Presentation ON Case Analysis Rundel'S Department Store

This presentation analyzes Rundel's Department Store. Rundel's is a smaller division of the Urban Stores ownership group located in a midwestern city. It is the dominant store in the market, competing with Youngston's. The presentation discusses Rundel's profits from 1987-1989, its retail mix including men's jeans and pants suppliers, the men's slacks department, and whether its metropolitan area is unique. It also analyzes Davis Manufacturing, a potential vendor, and the terms of its proposed vendor program. Representatives from Davis and Rundel's would discuss focusing on Davis' quality image, new designers, market growth, and creating a win-win partnership between the companies.

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54 views

Presentation ON Case Analysis Rundel'S Department Store

This presentation analyzes Rundel's Department Store. Rundel's is a smaller division of the Urban Stores ownership group located in a midwestern city. It is the dominant store in the market, competing with Youngston's. The presentation discusses Rundel's profits from 1987-1989, its retail mix including men's jeans and pants suppliers, the men's slacks department, and whether its metropolitan area is unique. It also analyzes Davis Manufacturing, a potential vendor, and the terms of its proposed vendor program. Representatives from Davis and Rundel's would discuss focusing on Davis' quality image, new designers, market growth, and creating a win-win partnership between the companies.

Uploaded by

gagan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PRESENTATION

ON
CASE ANALYSIS
RUNDEL’S DEPARTMENT STORE.

Submitted To - Submitted By-


Prof. Hersh Sharma Mamta Bhojwani (36)
Gagan Singh (33)
Rohan Shrivastava (35)
Prateek Thakur (34)
RUNDEL’S DEPARTMENT STORE
Rundel’s – Division Of Urban Stores.

Smaller Store In The Ownership Group.

Leader In Trying New Concepts.

Located in a midwestern city.

Dominant Department Store In The Market.

Major Competotor – Youngston’s.


RUNDEL’S DEPARTMENT STORE

• URBAN STORES – A major Department Store


Ownership Group.

• Sixteen Operating Divisions.

• Each Division Operated Autonomously.


RUNDEL DEPARTMENT STORE’S PROFITS

$700

$600

$500

$400

$300 Column2

$200

$100

$0
1987
1988
1989
RETAIL MIX
RUNDEL’S DEPARTMENT
• MEN’S JEANS.

• Three Suppliers:
– Levi, Farah, low priced supplier.
– Designed for over 30 males.

• Full Line Of Men’s Regular PANTS.


• Suppliers :

• Levi, farah, spotwood and 2 other.


• “Off Brands” to promote sales.
RETAIL MIX
RUNDEL’S DEPARTMENT
MENS REGULAR
JEANS PANTS
2 SUPLIERS ,
THREE
LOCAL
SUPPLIERS
BRANDS ALSO.

DESIGNED FOR “OFF BRANDS”


OVER 30 to promote
MALES sales.
MEN’S SLACKS DEPARTMENT
• GORDON FRANKLIN – Buyer Of Men’s Slack.

• Contributes 2.8% of Total Sales.

• Primary Department For Men’s Slack.

• Impressive Growth In Recent Years.


– Addition of new products to the department.
– Tremendous expansion in the demand.
METROPOLITIAN AREA
UNIQUE OR NOT?
• No, it is not Unique.

– Located In medium- sized midwestern city.

– The other Department store- Youngston’s.

– Branch Outlets also in the same sub-urban area.


METROPOLITIAN AREA : UNIQUE OR NOT?

LOCATED IN MID- SIZED MID WESTEN


CITY.

THE DOMINANT COMPETITOR-


YOUNGTON’S

BRANCH OUTLETS ALSO IN THE SAME


UBURBAN AREA.
DAVIS MANUFACTURING COMPANY
• Large Manufacturer of broad line of Men’s Clothes.

• Ranks Among top five manufacturer’s of men’s apparel.

• Recent Years Not So Successful.


– Failed to keep pace with the industry.
– Only Fine for discount stores .

• Effort to recapture quality image.

• New designers had been hired.

• Entire New Designer Line of Slacks , jeans and coordinates


developed.
THE VENDOR PROGRAM
• Business needs of Rundel’s from Davis:
– Davis agrees to maintain continuity of supply of regular stock
by filling orders on a 2- week basis.

– Ability to maintain markup of 48 % on basic stock.

– Guaranteed Turnover rate of 3.5 in 1990, 4.0 thereafter.

– Markdown Rates not to exceed 10% .

– Davis advertising to include 60% of costs to a maximum of


Rundel's purchases from Davis.
DAVIS- AGREE OR NOT?
• It Should Agree:
– Recently Not So Successful.

– Wants to Re- establish its position.

– Rundell can be a key account.

– Rundel’s will support Davis:

• By developing Davis as a major department store.

• Departmental features and display of regular running items.


PREPRATIONS

SUE ANDERSON- DAVIS


• Focus on quality image

• Information about the new designers

• Market growth rate

• Negotiations on the offers

• Vendor support to focus on smooth and strong


distribution
GORDON FRANKLIN

• Mentioned terms and condition

• Quality issues

• Support by rundel

• Importance of rundel for davis

• Win win situation for both


THANK UU!

THANK
YOU

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