Case Study
....................................................................................................................................................................................................................

Who – Establishing Background
MPC HOLDING is one of the leading investment and trading companies in Serbia and Balkan region. MPC Holding includes four commercial trading companies which in their own right are leaders in their markets with Entrix representing the sportswear wholesaling and retailing division.
Entrix is both the exclusive importer, distributor and retailer of four well known sports brands: Reebok, Colmar, Kiltec and Brunotti distributed via 150 key account customers across more than 500 retail stores who retail throughout Serbia, Bosnia and Montenegro, plus a chain of 22 Reflex own multi-brand sportswear stores offering primary sportswear brands and private label own branded ranges of apparel, footwear, accessories and equipment.

Why – Client Need/s
Make a step change to deliver a ‘Best in Class’ 8000 sqft flagship Reflex multi brand sports store in the new preeminent Belgrade shopping centre Usce.
Entrix needed to deliver both a store with a customer WOW factor, segmented by gender and a USP of authoritative ‘fields of play’ that would moreover showcase the newly developed Reflex own label branded ranges establishing an improved value positioning with the introduction of entry level product ranges.
Giving the public in Belgrade not only a reason to choose this store to buy all their sporting related products but clearly differentiates the product offer and price positioning from the competition with the introduction of unique private label sub brands.

What – Objectives & Key Elements
Working alongside the buying, operations and senior teams to develop the concept of the new store using the product to lead help and inform the design.
To effectively deliver the Reflex EPP core basics and lifestyle private label ranges for Spring /Summer 2009 launch and further develop the offer for Autumn / Winter

Store
• Deliver unique store design, product presentation and layout
• Create a WOW factor with in-store theatre and compelling end use layouts
• Plan both Macro and Micro space and deliver with VM principles
• Re-engineer supplier cost value chain for store fit-out and equipment purchase

Product
• Create ideal the flagship product proposition, branded mix and price hierarchy.
• Design and develop own label products including apparel and accessories.
• Source and develop supply base for own label sub and new external brands.
• Coach team on selecting products that fulfil the strategy and line plan.
• Build buying teams; supplier briefing, selection and negotiation skills.

When – Timeframe / Constraints
Reflex was facing an increasingly stiff competitive and maturing sportswear market with all the main retailers selling broadly similar brands and product ranges.
In addition the opening of the new 8000sqft store in the Usce centre will need major product extension and development to effectively fill the space as this flagship store is more than four times the size of an average Reflex store.
To combat these challenging market conditions key was the introduction of entry level private label sub branded ranges; this dramatically Increased the reliance on the buying team’s core competencies in direct sourcing, supplier management, selection and range building.
Moreover to maintain their position as ‘best in class’ multi-brand sportswear retailer, Reflex has to rise to these challenges by also developing and improving the product selection skills of the buying team thereby strengthening the retail proposition and stretching the product ranges.

How – Deliverables / Solutions
Brief designer to develop overall store proposition using existing design format but developing the focus areas of the store and the overall envelope of the exterior which holds Reebok, Adidas and Reflex together without diluting the individual brand strength.

Store design:
• Create specialist fields of play areas: Basketball, football and women’s gym
• Effectively divide Men’s, Women’s and the new Kids areas
• Manage secondary seasonal areas – tennis, swimming etc
• Liaise between Design and fixture manufacturer to minimise additional design costs and ensure accurate fixture development
• Ensure fixtures maximise the product display opportunities
• Develop new fixtures to accommodate new/focus product areas
• Support the development of operational processes and training

End use ‘fields of play’ and leisure lifestyle driven private label branded ranges needed to be developed to effectively fulfill product, space, margin and price needs, identifying any further gaps and filling them with new niche external branded offers.

Product offer:
• design, adapt new own brands and implement with suppliers and source new products from appropriate new suppliers
• attend key brand supplier meetings, positively influence selections
• identify Reflex branded product attributes, trends and tendencies
• Enable buying team to build cohesive product statements
• conduct range reviews and finalisation
• Create project plan communicate with suppliers
• evaluate and propose new Far East direct sourced supply base
• Manage and monitor supply chain critical path for; quality assurance, sampling, sealing, specifications, manufacture, logistics and DC intake

Pre Finalisation Estimated: KPI’s Achievements & Benefits

Store
• Lower 2mtr fit-out cost
• Higher conversion rates
• Improve sales densities
• Create distinctive store design for future roll-out
• Improve measurable shopping experience
• Clear navigation by; Gender and spanned by Fields of Play
• Authoritative Kids department

Product
• improve gross margin
• Create gender specific; own label brands, logo’s and product marketing
• launch Reflex own private label sub brands
• reduce; brand, category and product duplication
• differentiate offer from competition and widen real choice
• broaden consumer base and Improve product suitability
• create cohesive product statements within range, brand and price hierarchy
• develop unique products
• lower entry price points and create a good / better / best framework
• better brand range selection, lessening reliance on external brands
• improve overall value position and gain control of prime v discount stance
• introduce new direct supply base and increase direct sourcing know how

Bullet: Quotes & Testimonials
• Brand Manager:
“ We knew we would need a new and large own label range for the Usce store but we had no idea where to start”