633923316008130305 magic shoes final

8/2/2019 633923316008130305 Magic Shoes Final

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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


2/31

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.


3/31

Product

PricePlace

Promotion

Strategic Business Planning

CustomerAnalysis

What?

Who?

Where?

When?

How?

CompetitiveAnalysis

Market

Summary

SWOT

Competitor


4/31

Idea screening

ConceptDevelopment

&Testing

MarketingStrategy

Development

BusinessAnalysis

ProductDevelopment

Idea generation

Test Marketing

Stages of the New Product Development Process


5/31

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


6/31

Idea generation

Idea screening

Concept


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.


7/31

Idea generation

Idea screening

Concept


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


8/31

Idea generation

Idea screening

Concept


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.


9/31

Idea generation

Idea screening

Concept


BusinessAnalysis

ProductDevelopment

Test Marketing

Idea:4 Stretchable Shoes

Idea

To make shoes with greater flexibility and more stretchable


10/31

Idea generation

Idea screening

Concept


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


11/31

Idea generation

Idea screening

Concept


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


12/31

Idea generation

Idea screening

Concept


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?


13/31

Idea generation

Idea screening

Concept


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


14/31

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


15/31

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


17/31

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.


18/31

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?


19/31

CustomerAnalysis

MARKET SEGMENTATION

WHAT?

WHO?

WHERE?

WHEN?

HOW?

Niche marketing


20/31

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


21/31

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.


22/31

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?


24/31

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?


26/31

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


27/31

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?


28/31

CustomerAnalysis


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.


29/31

CustomerAnalysis


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


30/31

CustomerAnalysis


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


31/31

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

633923316008130305 magic shoes final

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