Presentation on

C&J Clark (Clarks)

 Prepared To
Md. Tarikul Islam
Assistant Professor of marketing
DBA, IIUC-DC.

Prepared By
Serial Name ID No.
No.

1. Md. Tareq Abdullah B091841

2. Md. Ashiqur Rahman B091838

3. Md. Kamrul Islam Talukder B091816

4. Md. Nasir Uddin B092006

 Company Overview
C&J Clark International Ltd.
(Clarks) is a world-leading
manufacturer and retailer of
footwear. It offers wedge heels,
sandals, sneakers, boots, brogues,
shoes, pumps, slippers, loafers,
canvas, handbags, umbrellas and
small leather goods. The company
sells its products online. It was
founded in 1825 by brothers
Cyrus and James Clark and is
based in Street, in Somerset, United
Kingdom.
Q-1: Using Porters five-forces model, how
attractive do you think the shoe industry is? Apply
the model to both manufacturing and retailing.
Porters Five forces
Model
Factors affecting bargaining power of suppliers

Supplier bargaining power is stronger when:

Industry members incur high cost in switching their
purchases to attractive suppliers.
There are only a few suppliers of a particular input.
Supplier bargaining power is weaker when:
Available input supplies from many suppliers at the market
price.
Seller switching percentage is low.
Goods substitute inputs exists.
For C&J Clark
C&J clark is a company based in the UK.
Clarks was UK market leader for shoes.
In 1990s 75% of the shoes involved had been
manufactured out side the UK with relatively low
labor costs.
But when the seep skin business was moved to
separate business in UK then they made hygienic
boots and shoes and all types of shoes in UK.
 Factors affecting bargaining power of buyers
Buyer bargaining power is stronger when:
Buyer switching costs to competing brands are low.
Buyers demand is week or declining.
Large volume buyers are important.

Buyer bargaining power is weaker when:

Buyer purchase the item infrequently or in small
quantities.
Buyer switching costs to competing brands are high.
 For C&J Clark
Here bargaining power is high.
Because different types of cost and competing
brand available. And people have blind trust
also.
The market was much more competitive as an
increasing number of imported brands was
introduced and gained popularity.
Customer testes were changing.
 Rivalry among competing sellers
Typical weapons for getting rivals and attracting
buyers:
Low price.
More different features.
Better product performance.
High quality.
Wider collection of models and styels.
Stronger product innovation capabilities.
 For C&J Clark
British shoe company(BSC)sometimes competing
retail outlets, low and medium price shoes for people
up to middle age.
Curtess, Manfield, Saxone, Freeman Hardy Willies,
Dolcis are competing Good quality, medium price,
Stylish shoes for fashion concious youngsters.
Marks and spencer was dominant with low priced
shoes for older people.
Clarks in a strong position with medium priced and
better quality shoes for a number of age groups.
 Factors Affecting Threat of Entry
Entry threats are weaker when:
Entry barriers are high.
Existing competitors are struggling to earn
health profit.
The industries outlook is risky and uncertain.
Buyer demand is growing slowly
 For C&J Clark

Here Entry threats are weake.

Because Existing competitors are struggling
to earn health profit.
Sales had fallen. High street property rents
remain high.
High existing barriers. Customer test were
changing.
 Factors Affecting Threat of substitutes
The existence of products outside of the realm of the
common product boundaries increases the propensity of
customers to switch to alternatives. Note that this should
not be confused with competitors' similar products but
entirely different ones instead.
Buyer tendency to substitute
Relative price performance of substitute
Buyer switching costs
Perceived level of product differentiation
Number of substitute products available in the market
Ease of substitution. Information-based products are
more prone to substitution, as online product can easily
replace material product.
Substandard product
Quality depreciation
 For C&J Clark
Clarks not only produce shoe but also produce
different lather items. They produce shoe
for all types of customer like men, women,
kids, old age people, different age different
model, umbrellas, lather bag and small
leather goods .
 2. How does Clarks add value? How would you summarize
the companys strategic (competitive) position in 1990? In
2000? Do you believe that Clarks is now in a much stronger
position than it was ten years ago?
The 1990s Clarks was UK market leader for shoes. Well
Know as both a retailer the name Clarks is typically
associated with childrens shoes. Especially among the
older generations who grew up in Clarks sandals. Many
years the company had become associated whit sturdy
and sensible shoes for adults as well as children. The
footwear market in the UK exceeded $5 billion annual
sales for the first time in 1999.During the mid-late
1990s the growth rate had exceeded the prevailing
rate of inflation.
 Continue......
The highest growth was in children's shoes of all types
although these account for less than one-fifth of the
market overall.
During the 1990 the population of trainers and other
sports shoes, backed by heavy brand advertising, has
grown dramatically, as has the popularity of shoes
associated with designer names.
The company wants to be recognized as an
international casual shoes company. so, the Clarks
value added the company in different step by step.
 Company strategic 1990
Every body knows that different kind of company have
taken some competitive strategy. So, Clarks have taken
some competitive strategic:
The company have manufactured three item shoes Clarks (mostly
associated with childrens and comfortable semiformal shoes), k
(targeted at mature adult) and Ravel (high fashion shoes).
Company 60% of the shoes were manufactured in the UK and
40% were produced in Portugal, Italy and Brazil.
Company thirty new outlets were opened in 1990 to complement
the existing 850 concessions in department and fashion stores.
Company manufacturing costs were relatively expensive, making
it relatively vulnerable to cheaper imports. As sales declined the
company had to reduce its costs.
 Company strategic 2000
In 2000 company add new image is focused on shoes
that are fashionable and casual.
The company provide premium quality and expert
service.
Clarks shoes are focused mainly on the 35-45 age
group and the k brand on the over 50s.
The company are five distinct ranges of man and
woman shoes.
In 2000 company are separate ranges comprise four age
groups First shoes, 2-4, 5-7 and 8 years and over as
well as a range of trainers with their own brands
identity.
 Opinion
I know that Clarks was UK market leader for shoes ten
years ago. Clarks try every years still here this
position. Clarks popularity to trainers and other sports
shoes, backed by heavy brand advertising and
popularity of shoes associated with designer names.
The company have used many competitive strategy.
So, any other company competition level is not
developed by Clarks. In part to achieve this production
in the UK would be increased against the current trend.
The company wants to be recognized as an
international casual shoe company. So, I believe that
Clarks is now in much stronger position than it was ten
years ago.
3. Evaluate the changes introduced by Parker in the last five years. To
what extent do you think the current results can be attributed to these
changes, and to what extent might they be the result of external
circumstances?

C&J Clarks pre-tax profits of last five years:

 To what extent do you think the current results can
be attributed to these changes
The changes are:
Clarks is world leader for brown shoes and shoe-care
products and a major player in childrens shoes.
Table showed that Clarks is overall market leader in
the UK with 10% of sales up 2% from 1990.
The industry remains very fragmented and globally
static.
Sales are strong in the USA.
The company is also particularly successful in Japan
 Continue...
Clarks has a very wide range of practical (work) shoes,
casuals, sandals and childrens wear.
They are not the highest price, but they are certainly
not the cheapest. Of generally high quality, they
represent value for money.
The new image is focused on shoes that are
fashionable and casual. The company claims that it
offers individual designs, exceptional comfort,
premium quality and expert service.
There are five distinct ranges of womens shoes:
formal, smart (with thicker soles), casual, boots, and
Springer's semiformal casual shoes with soft soles
sold under the K brand.
 Result of external circumstances:
Excluding Nike and Reebok manufacturers of
trainers and sports shoes and which together with
Adidas account for 13% of the UK market
Marks and Spencer follows Clarks with a 5%
share,1% less than its share 1990. In 1999 the
M&S profit margin on shoes was reported to be
6.6%, whereas a year earlier it had been 14.1 %.
The company had lost some of its international
sales as a result of the high pound.
 4. If you were Tim Parker, what future strategies
would you be considering? Is the family ownership a
relative strength or a relative drawback?
C&J Clark strategy:
Strategy
Strategy is the direction and scope of an
organization over the long-term: which
achieves advantage for the organization through
its configuration of resources within a
challenging environment, to meet the needs
of markets and to fulfill stakeholder
expectations"
SWOT Analysis
 Strategy Of Tim Parker

Cost optimization and margin improvement.

Logistics and demand based production.
Tax-free zone manufacturing base.
Rationalizing and re-engineering.