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SWOT ANALYSIS ON House of Dereon

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SWOT ANALYSIS ON House of Dereon
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Abhijeet S
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SWOT ANALYSIS ON House of Dereon - November 29th, 2010

House of Dereon is a ready-to-wear fashion line introduced by singer and actress Beyonce Knowles and her mother/stylist Tina Knowles. The style and concept is inspired by three generations of women in their family, with the name "Dereon" paying tribute to Beyonce's maternal grandmother, Agnez Dereon (Mother of Tina Knowles). House of Dereon is not to be confused with its sister and partner line, a junior line simply titled, Dereon.

Expanding the brand, Beyoncé and her sister Solange Knowles launched the junior line Deréon that is geared towards younger consumers and is more reasonably priced. Deréon was introduced in 2006. The tag line for Deréon is "Where the sidewalk Strengths

* Multiple formats and solid market share in major metropolitan areas
* dunnhumby & shopper insights program
* Well known regional brands
* Developed private label and loyalty marketing programs
* Pricing image
* Very strong organic growth (i.e., comparable and identical store sales)
* Kroger Card Discount

Weaknesses

* High operating expense structure
* Inconsistent productivity and execution across divisions
* Legacy costs - store base aging rapidly

Opportunities

* Expansion of Food 4 Less and Marketplace formats into new markets
* Leverage synergies across Kroger East and West
* Centralizing functions to create operating and merchandising efficiencies
* Beginning to re-capture shoppers and trips

Threats

* Wal-Mart expansion in core Kroger markets
* Gross margin pressure
* Labor unions
* Competitive threats inside and outside of channel (Whole Foods, Costco, etc.)
* Aging real estate
* Economic downturn and catwalk meet". This line includes more casualwear, such as sweatpants and embroidered hooded sweatshirts. Both women are models for both clothing lines and are featured on most marketing campaigns. In 2007, members of Beyoncé's touring band, Suga Mama appeared in print ads.
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