YASHWA AYUB

GROUP MEMBERS

Yashwa Ayub Saim Dawood Muhammad Rehan

231521093 231-452779 231524070
 YASHWA AYUB

WORK-BOOTS
MARKET SIZE
HOW BIG IS THE WORK BOOT MARKET
(EXPRESSED IN EUROS)?

SIZE OF WORKBOOTS AND CASUAL BOOTS

MARKET:

THE SIZE OF THE WORK BOOT MARKET IS

~€2.6 BILLION

THE CASUAL BOOT MARKET IS

~€1.0 BILLION
 YASHWA AYUB
FOR WOOK BOOTS
USING FORMULA

(AVERAGE BOOTS PRICE) * (% OF MALE POPULATION THAT BOUGHT WORK BOOTS IN PAST YEAR)
* (TOTAL POPULATION FOR THE SEGMENT) * (NUMBER OF PAIRS BOUGHT IN A YEAR)

(€150 * 60%* 11MM * 2) + (€150 * 25% * 12 MM * 1) + (€150 * 15% * 7 MM * 1)

= €2,588 MM

 YASHWA AYUB
FOR CASUAL BOOTS
USING FORMULA

(AVERAGE BOOTS PRICE) * (% OF MALE POPULATION THAT BOUGHT WORK

BOOTS IN PAST YEAR) * (TOTAL POPULATION FOR THE SEGMENT) * (NUMBER
OF PAIRS BOUGHT IN A YEAR) (€100 * 20%* 11MM * 1) + (€100 * 35% * 12 MM * 1)
+ (€100 * 55% * 7 MM * 1)

= €1,025 MM
 YASHWA AYUB
DURAFLEX'S REVENUE
Does Duraflex get more of its revenue
from work boots or casual boots?

WE KNOW FROM THE PREVIOUS TABLE :

DURAFLEX’S REVENUE FROM THE WORK BOOT MARKET = 16% * 2,588 MM = 414 MM
DURAFLEX’S REVENUE FROM THE CASUAL BOOT MARKET = 40% * 1,025 MM = 400 MM

SO DURAFLEX GETS MOST OF ITS REVENUE FROM WORK BOOTS

 MUHAMMAD REHAN
DURAFLEX IN WORKBOOT MARKET
Why Badger is outperforming Duraflex in workboot market

CHANNELS
DURAFLEX IS NOT USING RIGHT CHANNEL
39% OF THE BADGER SHOES ARE SOLD THROUGH SAFETY/WORK CHANNELS
MAJORITY OF DURAFLEX SHOES ARE SOLD IN SHOE STORE 28% AND ATHLETIC STORE 23%.
DURAFLEX LACKS PROPER PRESENCE IN SAFETY/WORK CHANNEL.
 MUHAMMAD REHAN
DURAFLEX IN WORKBOOT MARKET
Why Badger is outperforming Duraflex in workboot market

BUYER PURCHASE CRITERIA BY BRAND

TOP CRITERIA FOR PURCHASE OF BADGER SHOES IS QUALITY /DURABILITY 45% AND COMFORT 39%
THESE ATTRIBUTES ARE IMPORTANT FOR WORK BOOTS
TOP TWO CRITERIA FOR DURAFLEX IS STYLING 45% AND QUALITY / DURABILITY 37%
DURAFLEX LACKS IN COMFORT (19%).
 MUHAMMAD REHAN
DURAFLEX IN WORKBOOT MARKET
Why Badger is outperforming Duraflex in workboot market

PRICING AND COST ANALYSIS

BADGER WORK SHOES ARE CHEAPER THAN DURAFLEX
WORK SHOES.
PRICE IS NOT IMPORTANT CRITERIA FOR WORK
SHOES.
BADGER SPENDS MORE ON MATERIALS (32%)AND
LABOR(19%) TO ASSURE QUALITY.
HAVE LESS COMPANY AND RETAILER MARGIN
COMPARED TO DURAFLEX
BECAUSE OF SATISFIED CUSTOMERS THEY SPEND LESS
ON MARKETING.
 SAIM DAWOOD

CHANGES TO DURAFLEX STRATEGY

What changes would you recommend
to Duraflex’s work boot strategy?

The strategy I would recommend is increasing focus more over work

boots activity
 SAIM DAWOOD
WHY?

Casual Boot does represent 40% of Duraflex business from

the case still this market is relatively smaller than work
boot market.

Indicates less growth opportunities

From exhibit 4 we can observe that the company derives
lower margin from causal boots (15%) than work boots (22%)
Keeping in mind badger is introducing new work line which
they see as new growth potential and duraflex should try to
capitalize on it as well
Building stronger relationships with blue collar work to try
other Duraflex shoe wear
SAIM DAWOOD
 SAIM DAWOOD
INTRODUCE SUB-BRAND SHOE LINE
CAPITALIZING NEW MARKET FOR POTENTIAL GROWTH LIKE BADGER
FOCUSING ON BLUE COLLAR DEMAND
INCREASING MARKET SHARE IN THROUGH BLUE COLLAR
MAKING PRICE MORE COMPETITIVE TO GIVE COMPETITORS HARDER TIME