633923316008130305 magic shoes final
TRANSCRIPT
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SUBMITTED BY:-
PRASHANT AGARWAL 06BS2349
PRERANA PRIYADARSHI 06BS2407
PUNEET SHARMA 06BS2480
RABI NARAYAN SAHU 06BS2537
RAVI CHANGLE 06BS2711
RISHABH GANDHI 06BS2761
SUBMITTED TO:-
PROF. HEMANT PURANDHARE
MagicShoesFootwears pvt. Ltd.
MARKETING PLAN FOR
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MAGIC SHOES THATGROWS WITHUProduct concept
During the school re-opening season, parents spend hugeamount of money for purchasing school bags, Uniforms,school shoe etc. When it comes to school shoes, parentsneed to make purchases every year as the kids grow fast atthis stage. Studies have proved that a childs feet grow at
an average rate of half an inch every year from 3yrs to 9yrs of age. Our company aims at bringing relief tofrustrated parents who want to avoid buying their childrencountless pairs of new shoes
Presenting a solution to ur problem now.
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Product
PricePlace
Promotion
Strategic Business Planning
CustomerAnalysis
What?
Who?
Where?
When?
How?
CompetitiveAnalysis
Market
Summary
SWOT
Competitor
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Idea screening
ConceptDevelopment
&Testing
MarketingStrategy
Development
BusinessAnalysis
ProductDevelopment
Idea generation
Test Marketing
Stages of the New Product Development Process
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Idea generation
Idea screening
Concept
DevelopmentMarketingStrategy
BusinessAnalysis
ProductDevelopment
Test Marketing
Idea generation
Idea 1: ecoWUD furniture
Idea 2: Flavored Mineral Water
Idea 3: Web Printing on Shirts
Idea 4: Stretchable Shoes
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Idea generation
Idea screening
Concept
DevelopmentMarketingStrategy
BusinessAnalysis
ProductDevelopment
Test Marketing
Idea:1 ecoWUD
Brief: ecoWUDis an environment friendly and a superioralternative to wood, concrete and sometimes even steel;made from a specific plastic waste.
Reason for considerations:Alternative to wood and had advantages over wood likemoisture and insect resistant, no need to paint, etc.
Reasons for rejection:
Difficulty in getting the specific plastic waste in India thus
increasing the raw material cost to very high levels.
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Idea generation
Idea screening
Concept
DevelopmentMarketingStrategy
BusinessAnalysis
ProductDevelopment
Test Marketing
Idea:2 flavored mineral water
To launch in the market a flavored mineral water.
Idea strength:
Mineral waterflavored +TASTE SAFE
1.)Thus the aim is to provide 2 in 1 utility to the customer2.) Safety questions on soft drink leaders like Coke and Pepsi
Idea limitations1.) confused positioning- whether mineral water or a soft drink2.) rigid taste and preference of the buyers3.) high-tech machines required which makes it a costly venture4.) highly competitive market
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Idea generation
Idea screening
Concept
DevelopmentMarketingStrategy
BusinessAnalysis
ProductDevelopment
Test Marketing
Idea:3 WEB Printing on T-Shirts
Brief:
A person can design his own t-shirt on the website on the
creative design software and order the t-shirt online which will be
delivered at his home.
Reasons for consideration:
For the young generation so as to give them
the freedom to show whatever they want on their
t-shirts. This idea will appeal the young generation.
Reason for rejection:
Internet shopping still not prevalent in India.
Thus, a very small market base. High printing cost makes our
price high and thus can be targeted at upper middle class or
higher class and not for masses.
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Idea generation
Idea screening
Concept
DevelopmentMarketingStrategy
BusinessAnalysis
ProductDevelopment
Test Marketing
Idea:4 Stretchable Shoes
Idea
To make shoes with greater flexibility and more stretchable
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Idea generation
Idea screening
Concept
DevelopmentMarketingStrategy
BusinessAnalysis
ProductDevelopment
Test Marketing
Decision tree-3 step selection
Best IdeaScreening
Eco-friendlyfurniture
Flavoredmineral water
Web printingOn T-Shirts
Stretchableshoes
Flavoredmineral water
Stretchableshoes
Stretchableshoes
In these three step of screening the best idea:1.) the idea1 and idea3 were eliminated in thescreening stage2.) idea2 and idea4 were compared and the bestOf the two got selected. Idea2 got eliminated in theconcept development stage3.) idea4 was screened through and the idea isMoved forward for concept building.
selected
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Idea generation
Idea screening
Concept
DevelopmentMarketingStrategy
BusinessAnalysis
ProductDevelopment
Test Marketingkids
Adult males
Adult females
teenagers
Market share for all ages
Largest marketshare of 45% Butless opportunity
Market share is smallest
But greatest opportunity
Large competitionForeign playersMore organized
Less competitionHighly unorganized
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Idea generation
Idea screening
Concept
DevelopmentMarketingStrategy
BusinessAnalysis
ProductDevelopment
Test Marketing
demand
High
demand
low
Highcompetition
lowcompetition
Sports shoes
Party shoes
slippers
School shoes Have a
constantly increasingdemand and low oncompetition due to lessorganized fragmented market
Where to position in footwear market?
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Idea generation
Idea screening
Concept
DevelopmentMarketingStrategy
BusinessAnalysis
ProductDevelopment
Test Marketing
Price & styleHigh
Price & style
low
Highdurability
lowdurability
Our product
liberty
Bata
Low qualityCheap products byunorganized players
Our position in kids school shoe market
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CompetitiveAnalysis
MARKET SUMMARY
Industry overview
* India ranks second among the footwear.* 75% of the market is unorganized.* The industry size is estimated at Rs 70 bn in value terms and 620
mn in volume terms.* The industry has been growing at around 10-12% per annum.* The domestic market is highly price sensitive with the popularsegment.
1. Price from Rs 100 to Rs 500 68% share.
2. Price from Rs 500 to Rs 1000 28% share.3. Price from Rs 1000 and above 4% share.
Industry projections*The rate of growth has been decreasing for the past 10 years.*A growth rate of 8-10% is expected for next 2-3 years.
MARKET
SUMMARY
SWOTANALYSIS
COMPETETIVESTRATEGY
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CompetitiveAnalysis
SWOT ANALYSIS
STRENGTHS WEAKNESS
*Providing innovative productto the customer
*Cheap availability of raw
material at our factory sites*Durability, longetivity
*Promotional strategies
*Affordable prices
*New entrant in the business
*Inexperienced management
*Limited finance
OPPORTUNITIES THREATS
*Untapped marked
*Unorganised rural market
*Evergreen market
*First mover advantage
*Declining growth rate in shoeindustry
*Adaptability by the Indianpeople
MARKET
SUMMARY
SWOTANALYSIS
COMPETETIVESTRATEGY
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New Market Entrants
Easy entry and easy exitincumbents resistanceTarget schools and magicshows in rural areas
Competitive Rivalry Unorganised market Major player-Bata andLiberty
8-10% growth projection. More opportunity in kid'sfootwear
Supplier Power
Large no of suppliers Cheap raw material Cheap labour
Buyer Power Vast and diverse
potential customerbase.
Warranty of 2 years Main target schoolchildren.
SubstituteUnbranded shoes of similarpriceBranded shoes of higher
price
PORTERS FIVE FORCES MODEL
MARKETSUMMARY
CompetitiveAnalysis
SWOTANALYSIS
COMPETETIVESTRATEGY
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CustomerAnalysis
PRODUCT
WHO?
WHERE?
WHEN?
HOW?
WHAT?
Our goals are:1) To introduce a school shoe which can be expanded up to 2 inchesfrom the initial size
2) To facilitate value for money to the price sensitive customer.
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CustomerAnalysis
PRODUCT DETAILS
Design description:The first part of the shoe sole consists of groove that isattached to it at the time of molding. This part is fixed. Theother part of the shoe sole consist of the same grove but it ismovable along with the sole. Initially both the groove sitstogether perfectly so that there is no motion. But when the
button is pressed the groove in the bottom sole is pushed fromits initial position farther from the top solesgroove making it possible to slide the bottom sole.
Marketing Mix:Product: Initially the product will be launched for two age
groups:- 5 yrs to 8 yrs (Segment A) 9yrs to 12yrs(Segment B)Magic shoewill be available in three colors; black, brown andwhite. Less variation in shoes for boys and girls.
WHAT?
WHO?
WHERE?
WHEN?
HOW?
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CustomerAnalysis
MARKET SEGMENTATION
WHAT?
WHO?
WHERE?
WHEN?
HOW?
Niche marketing
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CustomerAnalysis
MARKET SEGMENTATION
WHAT?
WHO?
WHERE?
WHEN?
HOW?
Single segment concentration
We are concentrating Corley on the kid segment of age group 5-12.Focusing mainly on the school going children. So we are followingsingle product- single market strategy.
P1 P2 P3
M1
M2
M3
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CustomerAnalysis
MARKET SEGMENTATION
WHAT?
WHO?
WHERE?
WHEN?
HOW?
Segmentation
* The market is segmented mainly on the basis of price.
* Users are children belonging to the age group of 5-12years. Kids are influencers but parents are the finaldecision maker.
* MS footwear would like to create a segment for its newproduct Magic shoe, i.e. parents who would give more
importance to the qualities like durability and value formoney.
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CustomerAnalysis
SEGMENTATION AND TARGETING
WHAT?
WHO?
WHERE?
WHEN?
HOW?
Segment attractiveness:All the segments are attractivesince the markets for school shoes are growing with even thepeople belonging to the lower class of the society trying tosend their wards to good convent and public schools, whichdemand shoes. Magic shoewill have to face intensecompetition in all segments.
Segment Positioning: For each segment we need to havea value proposition and positioning strategy based on thesegment characteristics. Magic shoewill be positioned as ahigh quality durable product which provides more value for
money and frees the parents from the hassles of buying newschool shoes every year.
Target Market: On the basis of economic conditions, ourproduct will target the Lower class, Lower middle class and
Middle class.
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PRODUCT
VALUEADDED
POWEROF
NAME
BENEFIT
Magic shoeTarget customersPrice conscious middle class parents.Point of difference -unique design
Expandable up to 2 inches,
Durability, good quality,More value for money.
The shoe with grows with your kid,
providing more value for your money
We will try to grab an unoccupiedposition in the minds of the consumersby putting the concept of expandable
shoes strongly into their minds.
POSITIONING STRATEGY
CustomerAnalysis
WHAT?
WHO?
WHERE?
WHEN?
HOW?
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OUTLET SETUP
CustomerAnalysis
WHAT?
WHO?
WHERE?
WHEN?
HOW?
Our marketing department is responsiblefor the distribution and sales of the shoes.We will have 6 exclusive retail outletspresent in Delhi, Agra, Kanpur,
Lucknow, Patna and Kolkata beingclose to manufacturing setup . We willhave a network of distributors who supplyour products to various localretailers,through out the nation.
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LAUNCHING STRATEGIES
LAUNCH TIMING:-We will launch our product in the first week of April, so as to makoptimum use of the school reopening season. We will startcampaign for our product from the month last week of March.Since we are the pioneers in the area of expandable shoes, early
users will recall our brand name if the products satisfies them.
PRICING STRATEGIES:-The pricing for the new product will be done separately forthe two sub-segments namely:
Price for segment A (Kids of 5-8 years) and Price forsegment B (kids of 9-12 years)
SEGMENTA B
PRICE Rs. 250 Rs. 300
CustomerAnalysis
WHAT?
WHO?
WHERE?
WHEN?
HOW?
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Organized players likeBATA, LIBERTY etc
price:
Rs275-350
Unorganized players price:Rs175-225
Our price:Rs.250-300
MARGIN PRICINGCOMPETETIVE
PRICING
Markup pricing Target return pricing
Pricing methods available1.Going-rate pricing
We have positioned our prices in between the pricesof both the organized and the Unorganized players byadopting a PERCEIVED-VALUE PRICING methodbelieving A positive buyers image of our products
Performance, warranty quality, durability. We have keptour margins intact with such a competitive pricing.
Product pricing strategy
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CustomerAnalysis
PROMOTIONAL STRATEGY
Promotion will be based on 2 Segments* Rural areas* Urban areas
And further promotion will be divided into two phases:
FIRST PHASE:Advertising: in major newspapers, kids magazines, comics and televisionnetworks.*Suitable media will be selected after considering the reach, frequencyand impact parameters.*Advertisements will be targeted at children and middleclass parents.*To attract children, the taglineof the shoe that grows with you andthe expanding techniques will be highlighted.
*To attract parents the more value for money aspect, durability, comfortand the freedom from the hassles of purchasing shoes for kids everyyear will be highlighted
WHAT?
WHO?
WHERE?
WHEN?
HOW?
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CustomerAnalysis
PROMOTIONAL STRATEGY
WHAT?
WHO?
WHERE?
WHEN?
HOW?
Advertisement Description:
A child will be portrayed in different ages 5-8-12 and further the
shoe pair will remain same for the age 5-8 and 8-12 justifying ourtagline..
Consumer promotion tools
a) Coupons Discount coupons will be distributed in some schoolsb) Price discounts will be given for purchase of more than 2 pairs.
c) Warranty A two-year warranty will be offered.
Trade Promotion Tools
Advertising and display allowances will be given for selected outlets
Sales-Force-Promotion tools
a) Sales Contests dealers who attain considerable increase in salesduring a period as stated by the company will be offered gifts like
clocks, mobile phones, watches and time pieces.
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CustomerAnalysis
PROMOTIONAL STRATEGY
WHAT?
WHO?
WHERE?
WHEN?
HOW?
URBAN AREAS:
Non- Uniformity seen in the school uniforms with the lack of sameschool shoes, is the major factor that will contribute to our promotionin the urban areas. Offers will be made to various schools for bulkdeals with the option ofpre-embossed school name or logo onthe shoes.
PUSH STRATEGYthe communications effort is directed towards members of
the distribution channel and also directly to the schools.
producer distributor Retailer andschool customer
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CustomerAnalysis
PROMOTIONAL STRATEGY
WHAT?
WHO?
WHERE?
WHEN?
HOW?
RURAL AREAS:
*Magic Shows will be conducted wherein we will promote our MAGICSHOES.*Social awareness programmes will be sponsored whereby our shoebrand will be showcased.*During the sports event of various schools,free samples will be distributed to the performers.
Pull Strategythe communications effort is directed towards the end
customer
producer distributor retailer customer
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CustomerAnalysis
Promotion continued
WHAT?
WHO?
WHERE?
WHEN?
HOW?
SECOND PHASE:After the successful completion of one year firstphase promotion, this phase will be aimed at nationwide expansion facilitated by a tieup with PARAGON
foot wears.
Tie up will be based on: Diversification for Paragon footwears as Paragon
business limited to chappal. The distribution network of Paragon will facilitate our
expansion Increased sources of finance due to tie-up