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Strategic Marketing Plan for the positioning of the Buestan


brand in the Rumiñahui Canton.

April 2019

ESPE Armed Forces University.


Department of Administrative and Commerce Economic Sciences.
Strategic Marketing
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INDEX

1. CHAPTER 1. GENERALITIES.......................................................................................3
1.1. Company's description...............................................................................................3
1.2. Problematic.................................................................................................................5
1.3. Study objectives..........................................................................................................6
1.3.1. General objective................................................................................................6
1.3.2. Specific objectives...............................................................................................6
1.4. Hypothesis...................................................................................................................7
1.4.1. General Hypothesis.............................................................................................7
1.4.2. Specific Hypotheses............................................................................................7
1.5. Theoretical framework, Reference framework, Conceptual framework...............7
2. EPISODE 2. ANALYSIS OF THE CURRENT SITUATION......................................11
2.1. External analysis.......................................................................................................11
2.1.1. Macro environment..........................................................................................11
2.1.2. Micro environment (Porter's Five Forces)......................................................20
2.2. Internal analisis........................................................................................................22
2.2.1. Administrative Capacity..................................................................................22
2.2.2. Human Talent Capacity...................................................................................24
2.2.3. Financial capability..........................................................................................25
2.2.4. Marketing Capability.......................................................................................26
2.2.5. Production capacity..........................................................................................27
2.3. SWOT Analysis.........................................................................................................28
2.3.1. Arrays................................................................................................................28
2.3.2. Synthesis............................................................................................................39
3. CHAPTER 3. MARKET RESEARCH AND SEGMENTATION................................39
3.1. Problem definition....................................................................................................39
3.2. Research objectives..................................................................................................40
3.3. Investigation methodology.......................................................................................40
3.4. Design of the investigation.......................................................................................41
3.5. Sample definition......................................................................................................45
3.6. Market segmentation................................................................................................46
3.7 Conclusions from segmentation and research..............................................................47
3.8 Demand analysis.............................................................................................................57
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3.10 ESTIMATION OF UNSATISFIED DEMAND.............................................................59


CHAPTER 4. STRATEGIC DIRECTION............................................................................60
4.1 Vision...................................................................................................................................60
4.2 Mission:...............................................................................................................................60
4.3 Principles.............................................................................................................................61
4.4. Values.................................................................................................................................61
4.5. Goals..............................................................................................................................62
4.6. Strategic Options..........................................................................................................65
References...................................................................................................................................1
3

1. CHAPTER 1. GENERALITIES

1.1. Company's description

Historical review

In the province of Azuay in the Gualaceo Canton, the BUESTÁN company began on

August 2, 1946. The founder of this company is Jesús Vicente Buestan Orozco, his

parents are José María Buestan and María Juana Orozco, he comes from a humble

family. (Buestan Cia. Ltda., 2015) .

There are 10 brothers. Vicente Buestan occupies the penultimate place and is the

only one still alive. He did not complete his primary studies until the third year. His

father died in 1953 and he remained under the guardianship of his mother in an evident

financial crisis. He finished primary school at a school. After that, he began to work in a

shoe workshop, which he obtained through his family to help him financially with the

maintenance of his family. At that time, the shoemaking trade was considered one of the

most difficult because it required a lot of skill since it was a 100% manual trade.

Vicente Buestan considered that this job was aimed at those people from the lower

class, therefore he felt ashamed in front of his colleagues. (Buestan Cia. Ltda., 2015) .

Vicente Buestán traveled to the city of Quito at the age of 18 where he managed to

get a job as a shoemaker. He longed to be an artist, however that career was very

difficult. He will always be grateful to God since he learned the trade very well and

allowed him to leave. ahead financially (Buestan Cia. Ltda., 2015) .

He met Mr. Rubén Tapia, one of the great footwear manufacturers, owner of

Manufacturas Tapia, Mr. Heriberto Cáceres of Calzado Cáceres, Calzado Pareja,

Calzado Baldeón, among others, as well as Calzado Magnolia, considered at that time as
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the best footwear in the country due to who worked only with fine and imported

materials in the City of Quito. The last company where Vicente worked was at Calzado

Magnolia, where he made footwear by hand and where he also manufactured shoes for

very important people such as the former president of the Republic of Ecuador, Galo

Plaza Lasso. (Buestan Cia. Ltda., 2015) .

Vicente Buestan set out to create a company that manufactures the best footwear that

satisfies the needs and demand with the best service and the best quality. In 1970, he

formed the Bally company under license from the transnational company. In 1971 he

created a new company called ARCAL, where he had associations with several

important people of that time. After a year he separated from that company and formed

another company called Ebro, where Mr. Clemente García, of Spanish nationality, was

his partner. A year later he created his own company with his own brand "BUESTÁN,

ending the previous one, this It remains today, which had to suffer many difficulties that

have been overcome for decades. It managed to produce 12 pairs of men's footwear a

day with 6 workers, which increased over the years. (Buestan Cia. Ltda., 2015) .

The first BUESTÁN store was opened in 1975, it is located on Pinto and Amazonas

streets, where they were very well received. As the years went by, more stores were

opened in the city of Quito, eventually having authorized distributors in almost all the

cities of the country, especially in the cities of Ambato, Cuenca and Guayaquil, where

they had a greater presence where they sought to satisfy the demand of their clients.

(Buestan Cia. Ltda., 2015) .

Their first import of machinery was in 1978 from Argentina from the Enrique

Shuster company, then they managed to obtain machinery from Germany, Italy, Brazil,

the USA and China until today. (Buestan Cia. Ltda., 2015) .
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In 2010, the Buestán company was ranked 70th out of the top 100 most remembered

brands in the country, according to surveys bylook magazine. The Buestán company

received an award from "La Corporación La Favorita" in 2011 as the best supplier of

the year, and an Award for the best quality in Peru “Exito Award 2011”. Its production

capacity is 600 pairs in an 8-hour work day. The challenge in the future is to use its

installed capacity in two work days to increase its production. (Buestan Cia. Ltda.,

2015) .

The Buestán brand has some lines such as: footwear for women, men, children,

school and industrial. Currently the company has the best high-tech machinery which

allows it to guarantee production with the highest quality standards. The development of

its models is based on the fashion trend with the best selection of materials, taking into

account the comfort and guarantee that the customer demands when purchasing this

product. Regarding the commercial area, the company has 8 commercial premises in the

city of Quito, 2 commercial premises in the city of Cuenca in a strategic alliance and

distributors in the country. (Buestan Cia. Ltda., 2015) .

1.2. Problematic

Buestán Cía. Ltda. is a family business that had a great reception some time ago, but

with the growth of the market and the new expectations of customers, their new

lifestyles, the lack of creative proposals of the company has been increasingly losing

competitiveness and market positioning is held by international companies such as Zara,

Eta fashion, payless and national companies such as Bunky and Vennus due to their low

prices.
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In addition, the lack of support for National culture also contributed to this problem,

the lack of advertising, elimination of barriers with ease of insertion of imported

products that are sold here at low prices.

That is why Buestán has a low positioning, they have the best Ecuadorian women's

school shoes and industrial shoes, but at high prices, focusing on a marketing plan is

intended to achieve a positioning in the market, which will not help only to the

company if it did not also help the growth of the country's wealth.

1.3. Study objectives

1.3.1. General objective

Design a strategic marketing plan model to establish the consumer's needs, with the

aim of satisfying them with a quality product and with appropriate prices to achieve the

BUESTAN CIA brand positioning. LTA in the Rumiñahui Canton.

1.3.2. Specific objectives

- Analyze the current situation of the company and recognize its strengths,

opportunities, weaknesses and threats.

- Identify customer needs and preferences

- Determine the strategies to achieve the positioning of the BUESTAN

brand.

- Determine control methods for the proposed marketing strategies.

- Prepare a financial evaluation of the Strategic Marketing Plan, using

indicators that allow us to analyze whether it is viable.


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1.4. Hypothesis

1.4.1. General Hypothesis

The lack of solid positioning means that customers do not trust the brand or the

products offered, which causes low sales.

1.4.2. Specific Hypotheses

- The lack of advertising and promotion of the brand due to lack of

resources makes customers opt for the competition.

- Not having direct suppliers means that product prices are not

competitive.

1.5. Theoretical framework, Reference framework, Conceptual

framework

Theoretical framework

Marketing

According to Kotler, Gary, John, & Veronica (2002) it consists of “an administrative

and social process, thanks to which certain groups or individuals obtain what they need

or want in order to satisfy their various needs, through the exchange of products or

services.” .

Jerome & William (2001) believe that "it is the performance of activities that can

help a company achieve the goals it has set, being able to anticipate consumer desires

and develop products or services suitable for the market."

For his part, John A. Howard, who works at Columbia University, assures that he is

convinced that “marketing consists of a process in which it is necessary to understand

the needs of consumers, and find what the company can produce to satisfy them.”
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And Al Ries and Jack Trout (1990) believe that “marketing is synonymous with

“war” where each competitor must analyze each “participant” in the market,

understanding their strengths and weaknesses and draw up a plan in order to exploit

them and defend themselves.”

According to the American Marketing Association (AMA), marketing “is a way of

organizing a set of actions and processes when creating a product to communicate,

deliver value to customers, manage relationships, and its purpose is to benefit the

organization.” satisfying customers.”

Direct marketing: For Kotler and Armstrong, direct marketing "consists of direct

connections with carefully selected individual consumers in order to obtain an

immediate response and cultivate lasting relationships with customers."

Additionally, and according to both authors, direct marketing can be viewed from

two points of view: 1) As a form of direct distribution; that is, as a channel that does not

include intermediaries and 2) As an element of the marketing communications mix that

is used to communicate directly with consumers.

Relationship marketing: It is included within direct marketing and is based on a

fundamental principle that says that you do not have to sell, but rather make friends and

they will be the ones who buy. Achieve profit in exchange for customer

satisfaction(Stanley, 2001) .

Virtual marketing: It is also called cybermarketing and is what is applied to the

Internet, and is aimed at anyone in the world who has a computer and a connection to

the network. In this marketing there are SEO1 tools that allow companies to achieve

good visibility and sell their products or services better.

Marketing plan
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The marketing plan is a document that is part of the strategic planning documentation

of a company. The marketing plan serves to collect the objectives and strategies, in

addition to the actions that will be necessary to achieve these objectives.(Kotler &

Armstrong, 2001) .

Although this is just another definition of the marketing plan, the different aspects

that make up a marketing plan will be broken down below and on which companies

must pay special attention, since it is one of the most important documents, if possible

essential. , to function within a structured order.

Target market and segmentation.

Since a marketer can almost never satisfy all members of a market, the first thing he

or she does is segment the market, identifying and preparing profiles of well-defined

groups of buyers who might prefer or require different products.

Segments of a market can be identified by examining the demographic,

psychographic, and behavioral differences of buyers. The company then decides which

segments present the best opportunity: those whose needs the company can best meet.

“For each selected target market, the company develops a market enterprise. The

offering is positioned in the minds of target buyers as something that provides certain

core benefits.”(Kotler & Armstrong, 2001) .

The marketing plan and the marketing mix

The marketing plan is a master document, adaptable to each company in its

definition and individual in its result, treatment and monitoring.

The marketing plan is completely linked to the marketing mix and the famous theory

of the 4 Ps.(Kotler P. , 1986) , which corresponds to the adaptation of a product by a


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company to serve the market (people) based on some parameters (product, price,

promotion and place).

 Parts of the marketing mix that affect the marketing plan

 Product: Refers to the Product variable that can be a consumable, a

service, a newspaper story, a food sold in a fruit shop, etc. A

company is the generator of many products that are part of a large

group that is the type of products; of which perhaps in that case you

only have one. That is, for example, a company that sells sofas, the

type of product would be “sofas” and each of them would be a

product (Kotler, 1986).

 Plaza: It is the physical or virtual place where the products are sold

and which necessarily generates an internal distribution channel

from the entrance to the point of sales (for example, from

manufacturers, from a purchasing center...) and, sometimes outwards

(to a retailer, direct sales...). (Kotler P. , 1986)

 Promotion: Promotional and advertising activities (direct marketing,

direct advertising, product placement...) that are carried out to

stimulate demand and achieve sales; one of the almost always main

objectives in a marketing plan. (Kotler, 1986).

 Price: Price marked for the product or service that seeks profitability

for the company, adapting to the definition of marketing that tells us

that “marketing is a technique or methodology that detects a

consumer need and offers a product in a timely, manner and manner.

form at your disposal at an affordable and adequate cost with an


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economic benefit (except in exceptional cases, such as an NGO) for

the company or entity that puts this service on the market.

Reference frame

According to Conlago research(2017) mentions that one of the problems for the

company not to be recognized is the lack of corporate image, promotion and positioning

strategies which allow it to have competitive advantages, for this the company must

have a marketing department.

Conceptual framework

Positioning

According to Kotler & Armstrong(2013) says that “It is the way in which a product is

defined by consumers in important attributes, the place it occupies in the minds of

consumers with respect to competing products.” (pág. 168) .

Footwear industry

Industry

Footwear

2. EPISODE 2. ANALYSIS OF THE CURRENT

SITUATION

2.1. External analysis

2.1.1. Macro environment

They are all external factors that affect the company in some way and it is important

to analyze them in order to understand what the threats and opportunities are for the

development of productivity and competitiveness in the industrial sector.


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2.1.1.1. Economic factors

A company's decision making depends on the economic forces or factors of a

country. Kotler & Armstrong (2008) states that economic factors affect the purchasing

power and spending standards of consumers. Therefore, it is very important to know

what the main macroeconomic factors and indicators are, such as GDP, inflation.

Inflation

It is the generalized and continuous growth of the prices of goods and services of the

economy in a given time in relation to the currency, this means that when prices

increase, fewer goods and services are acquired, therefore, purchasing power is lost. of

the currency.

The Consumer Price Index (CPI) is an indicator that measures the variation in prices

between the consumption of goods and services of the population in a certain period of

time, while the Producer Price Index (PPI) allows measuring the variation of the

producer prices available in the domestic supply at a certain time.

Figure 1. Evolution of annual inflation March 2018 – March 2019. Recovered from National Institute of
Statistics and Censuses (2018)

Monthly inflation until March 2019 reached -0.12%. The sectors that presented a

negative variation were food and non-alcoholic beverages, clothing, transportation and
13

basic services. Regarding the Producer Price Index for March 2019, it was located at

102.7 with a monthly variation of 0.22%, this is due to the fact that the prices of both

agricultural and fishing products had(INEC, 2019) .

Gross Domestic Product (GDP)

The Gross Domestic Product is an indicator that determines the economic situation

of a country, based on the sum of all goods and services produced within a nation in a

given period, generally in one year.

Figure 2. Evaluation of GDP per capita recovered from the National Institute of Statistics and Censuses

(2018).

According to the projection of the GDP per capita carried out by the Central Bank of

Ecuador, for 2019 the GDP will grow less compared to 2018, although it is understood

that the GDP is the indicator that determines the wealth of the country, for the coming

years the The population will grow more than the GDP, meaning that the quality of life

of the population will be affected.

For the third quarter, between July and September, the Ecuadorian economy grew

1.4% compared to the same quarter of 2017. In nominal terms, the GDP reached

$27,267 million dollars. As for the manufacturing sector, the sector where BUESTÁN

CIA is located. LTA, the sectors with the greatest participation in the GDP are the
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services sector and the construction sector, however, the manufacturing sector has not

managed to have a better participation within the country's economy.

Interest rate

The interest rate is the amount paid for borrowing money. This interest rate can be

beneficial for both the lender and the payer. There are two types of interest rates, active

and passive.

The active rate is the value that the bank charges us for a loan to a company, while

the passive rate is the value that the bank or cooperative pays for a loan or investment

made to a company or person.

Table 1
Business active interest rate

2014 9,63%

2015 9,76

2016 9,84%

2017 8,92%

2018 9,85%

2019 9,95% **

Note. Recovered from Central Bank of Ecuador

Table 2
Corporate passive interest rate
2014 5,18%

2015 5,14%

2016 5,12%

2017 4,95%

2018 5,43%%
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2019 5,84% **

Note. Recovered from Central Bank of Ecuador

2.1.1.2. Political and Legal Factors

Political factors are events that influence company decisions, such as laws and

government agencies. (Kotler & Armstrong, 2008) . That is to say, companies are under

regulations and laws that the Government implements, therefore, managers must

consider these factors for the growth of the company.

Two years ago in Ecuador there was a change of government, for 10 years our

country was led by Eco. Rafael Correa, during that period certain fiscal and economic

policies were implemented that benefited certain economic sectors, as well as affected

another group.

During Rafael Correa's period, treaties were signed and one of them was with the

European Union (EU), in which it would benefit Ecuadorian production by seeking new

markets in Europe by entering with 0% tariffs, but nevertheless the competition is too

much. strong where certain requirements must be met for a product to enter European

markets.

With the current government led by Lenin Moreno, no economic plan presented in

campaigns has been evident, which was a model directed by the previous government

regime. Regarding the economy so far in his period, there have been some important

changes such as the approach to international organizations such as the Inter-American

Development Bank (IDB), International Monetary Development (IMF) and the World
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Bank (WB), with the purpose of attracting foreign investments and improving

commercial relations with the United States and Europe.

Alexis Vinueza, Manager of the company BUESTÁN CIA. LTA agrees that one of

the main measures that the new government must implement is to regain the confidence

of the industrial sector, since it is one of those that has not benefited 100% from the

measures implemented in the previous government, in such a way that they allowed

That foreign brand products enter the country has made the level of internal competition

stronger.

The legal factor is a system where companies must be governed by laws and statutes

for operation. Complying with the legal provisions in our country is a challenge since

the possibilities that the company has to participate in the market must be analyzed.

BESTÁN CIA. LTA is governed by all current regulations and laws of the country,

but mainly as a matter of brand recognition, it is currently recognized by the Ecuadorian

Institute of Intellectual Property (IEPI).

2.1.1.3. Social and Cultural Factors

They are factors that have the greatest influence on companies due to the interests,

desires, values and behaviors that each person has. It is the interaction that the company

has with market actors and certain elements such as customs, language, culture must be

analyzed for the correct implementation of strategies.

On the other hand, cultural factors directly affect the company, that is, this can lead

to threats or weaknesses due to the influence of consumer behavior, since the

acquisition or sale of a product or service depends on this (Taipe & Pazmiño, 2015).

Unemployment
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It is the situation in which a group of people find themselves who, despite having the

age, ability, skills and desire to work, do not have a job. Unemployment is a factor that

threatens us little by little, due to many factors that occur in a country.

In Ecuador, the unemployment rate has been increasing in recent years, according to

statistics from the National Institute of Statistics and Census (INEC), at the end of 2018

the unemployment rate was 3.7%.(INEC, 2018) .

Figure 3. Unemployment rate at the national, urban and rural level (2017-2018). Recovered from
National Institute of Statistics and Censuses (2018).

Employment

It is the activity carried out by a group of people who contribute their knowledge and

skills in exchange for monetary compensation called a salary. Employment in Ecuador

at the end of 2018, the employment rate decreased to 40.6%, compared to 2017, which

was 42.3%. This decrease is due to the changes that the government is implementing,

one of them the reduction of personnel in the public sector.(INEC, 2018) .


18

Figure 4. Adequate employment rate at national, rural and urban levels (2017-2018) . Retrieved from
INEC (2018).

Underemployment

It is a phenomenon that occurs when the worker must work fewer hours, perform less

productive jobs and sometimes work for a salary lower than the basic salary simply to

avoid becoming unemployed. At the end of 2018, the underemployment rate was

16.5%, in the urban area 16.3%, in the rural area 16.8%.

It must be kept in mind that underemployment along with unemployment dominate

in our country, this is due to the fact that there are no new jobs and this is about

eradicating by filling job vacancies by these groups that belong to underemployment or

unemployment.(INEC, 2018) .

2.1.1.4. Geographic Factors

Geographic factors are circumstances that are not under the control of the company

and that in some way influence the activities; these factors can be weather, earthquakes,

earthquakes, floods, among others. BESTÁN CIA. LTA is located in the north of

Quito, on Av. José Andrade Oe1-589 and Joaquín Mancheno, Carcelén Industrial

sector.

In the Sangolqui sector, due to its geographical location and the different distribution

sites, the brand BUESTÁN CIA. LTA represents a huge opportunity because of the type
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of market segmentation found there. Furthermore, BUESTÁN CIA. LTA is aimed at a

medium-high target market.

2.1.1.5. Technological Factors

Currently, one of the factors with the greatest impact on companies is technology,

which has allowed its growth and development. Nowadays, if a company does not have

technological advances, it is said that the production they carry out is obsolete and it is

easier for the competition to take advantage of these weaknesses.

BESTÁN CIA. LTA has also benefited from technological advances, where it has

implemented new machinery within its production. Among them are:

- Molds: These are the molds that the company uses to make the weld molds, in

which they previously had a set of molds made in Brazil and had a duration of 6

months. Currently they made an acquisition of a CNC, it is a molding machining

center. BESTÁN CIA. LTA is one of the two factories in the country that has

this molding department.

- Software, Caligola Italian program that helps them design footwear.

- Cutting robots, COM 4 Italian technology, is a machinery that is responsible for

cutting everything.

- Assembly line, Taiwanese technology, is an assembly of toes, sides, heels, press

and cam.

With all this technology implemented in BUESTÁN CIA. LTA has allowed it to

create modern and competitive designs in its environment, thus reaching the highest

quality standards in terms of its footwear production.


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2.1.2. Micro environment (Porter's Five Forces)

They are those factors that BEST CIA. LTA. in part it can control and through which

it is hoped to achieve a desired change.

2.1.2.1. Customers

Currently BUESTÁN CIA. LTA. It divides its clients into 3 channels: retail,

wholesale and contracts.

Regarding the retail sales channel, its clients are children and young people in

school, as well as men and women from 18 years of age onwards, who acquire 30% of

its total production.

The wholesale customers are 50 independent stores located in different parts of the

country, the same ones that are not loyal, because they purchase the products only

during seasons such as school season, Mother's Day, Father's Day, and Christmas, since

these They manage a multi-brand sales scheme, they buy 15% of the total production.

Regarding the contract channel, it serves the following types of clients:

- Large and Small Companies, these include companies such as Coca-Cola, Pepsi,

Nestlé, Holcim, and other companies including cement and sugar companies.

- Government companies, here we have EP. Petroecuador, CELEC EP, and

Empresa Eléctrica Quito.

These acquire 55% of their total production.

2.1.2.2. Suppliers

BESTÁN CIA. LTA. It classifies its suppliers according to the inputs or resources

they provide, among these we have:


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- Leather, the companies that provide this raw material are Tenería Ortiz, Tenería

Tunguragua, it should be mentioned that AAA quality leather is required for the

production of footwear, but these companies have leather of quality A and

sometimes even B.

- Soles, the company that provides these inputs is Encaucho, which belongs to

BUESTÁN CIA. LTA. That is, it carried out a backward vertical integration.

- Boxes, hardware, laces, insoles, synthetic lining material, and glues are supplied

by small companies.

- Machinery and technology, the companies that provide these tools come from

the following countries, China, Italy, and Germany.

2.1.2.3. Competence

The competition of BUESTÁN CIA. LTA. It is given according to the product lines

that it offers to the Ecuadorian footwear market.

In the school footwear line, its competition is Bunki and Venus, but these companies

do not belong to the same target market as BUESTÁN CIA. LTA.

In the line of footwear for women and men, competition is given by place rather than

by product. Among the main competitors we have Ponti, Bata, Payless, Zara, De Prati,

and Etafashion.

Regarding industrial footwear for chefs, and industrial safety (dielectric and Nitrile

shoes), the main national competence of BUESTÁN CIA. LTA. It is Gamos, Calzado

Anndy, Calzado Reinder, and Red Wing which is an imported brand.


22

2.1.2.4. Substitute products

In this case, the substitute products that replace BUESTÁN CIA in the Ecuadorian

footwear market. LTA. have:

Regarding national products, among the companies that offer the line of school

footwear at a lower price we have Bunki and Venus.

They are also considered substitutes for BUESTÁN CIA. LTA. to products from

recognized brands such as Adidas, Nike, Lacoste, and Reebok.

2.1.2.5. Rivalry between competitors

Way of managing a situation to achieve a position, resorting to tactics such as price

competition, advertising war, product introduction and better service guaranteeing

quality, rivalry is a product of pressure from competitors, the tactics they use Some

companies influence others and therefore use efforts to counteract them. (Porter M. E.,

2008)

Buestan is located in a footwear market which is very competitive therefore the

rivalry is high, having as national competitors Ponty, Bata, Payless and imported Zara

and Eta Fashion, Due to the innovation that is generated in the footwear industry in the

various competitors Buestan is forced to employ various tactics to face the competition.

2.2. Internal analisis

2.2.1. Administrative Capacity

BESTÁN CIA. LTA. As for the administration, it is oriented towards the objectives

of the organization, the group's efforts are directed towards the fulfillment of objectives.

Thus, for your planning, BUESTÁN CIA. LTA. carries out different research activities
23

for product development, staff motivation, resource management seeking to increase

profitability,

The direction is given by Alex Vinuesa who is the commercial manager Marketing

engineer, Business Administrator and has 3 graduates which helps the company have

good administrative management, BUESTÁN CIA. LTA. guides its staff so that they

carry out their activities efficiently, for which Alex Vinuesa applies values of integrity,

loyalty, responsibility, commitment, leadership, honesty and efficiency to direct staff

towards meeting objectives.

The organization is given as follows, we have the president Vicente Buestán, general

manager Diana Buestán in the commercial management Alex Vinuesa, has a production

management that is in charge of the granddaughter of Vicente Buestán, administrative

and financial management where The Human Talent department is also located there.

Quality control is essential for sales in the footwear industry, which is why

BUESTÁN CIA. LTA. It has exhaustive control in each of the processes of obtaining

footwear, likewise, each department manager controls the efficient fulfillment of the

objectives and goals proposed for each established period.


24

Vicente Buestán
(Presidente)

Diana Buestán
(Gerente General)

Gerencia
Gerencia Gerencia Comercial
Administrativa Gerencia Financiera
Produccion Alex Vinuesa
Nancy Morejon

Figure 4. Functional organizational chart of the Company BUESTÁN CIA. LTA. family business.

2.2.2. Human Talent Capacity

In its Human Talent department, Buestan has 98 employees in the production area

and 42 employees in the Administrative area, who are trained professionals committed

to the organization.

The company has a Human Talent process with four pillars, which are the first

selection and recruitment, the second training and human development, the third payroll

and remuneration, and the fourth pillar is Performance Management, which allows it to

adequately manage the management of human talent. Buestan divides its human talent

into three branches: the first is the Industrial Safety Department, the second branch is

the Department of Occupational Medicine and finally the Department of Social Work.

Four months ago, ISO9001 2015 and the INEN certificate of conformity were

implemented, which ensures the training, development of personnel and the

performance of the personnel who work in the plant. It also provides motivation to the

personnel and development, which allows them to have a highly qualified staff
25

committed to the company, we can demonstrate this since 80% of the staff who work at

BUESTÁN CIA. LTA. have been working in the company for more than 5 years and

only 20% have been working in the company for less than five years.

BESTÁN CIA. LTA. It has 15 retired employees, two of them continue to work in

the company for services provided, it also has the best personnel in the footwear

industry which has been required by the competition, but due to the level of

commitment it has with the company it remains at BUESTÁN CIA. LTA.

2.2.3. Financial capability

The main objective of the financial department is the efficient administration of

financial resources and is responsible for the mobilization of the company, to obtain a

desired profitability at the end of the period. The profitability of BUESTÁN CIA

LTDA. It is given by the sale of Industrial footwear through contracts that contributes

55% (this consists of contracts to large companies and government companies), 30%

comes from retail footwear, in school shoes it contributes 15% to the company's

income. company, but in recent years the profitability of BUESTÁN CIA LTDA. It has

not been so good, the commercial manager alludes that it is due to the government's

decisions that eliminated entry barriers for the importation of footwear, so now there are

imported footwear on the market at lower prices and national products have been

displaced.

Table 3
Financial Ratios of the Buestán Cía Company. Ltd.
Financial ratios
Liquidity Ratio 1.43 USD
Liquidity Ratio Acid test 0.75 USD
Cash Ratio 0.02 USD
Leverage Ratio Long Term Debt 40.80 %
26

Total active
0.82 %
performance

Equity performance 4.10 %


Cost effectiveness
Return on capital 7.80 %

Net profit margin 28.73 %


Based on the financial statements provided by the Buestán Cía Company. Ltd.

According to the liquidity that the company has for each dollar that the company

Buestán Cía owes. Ltda. owes pays that dollar and has 0.43 ctvs left. which means that

the company does not have a significant debt, it is also concluded that 40% of 100% of

the assets are financed by resources outside the company. Regarding its profitability, we

can see that for the total of 100% of the assets we obtain a profitability of 4.10%, which

is a low rate of profitability.

2.2.4. Marketing Capability

“Marketing capacity gives rise to the maximum potential demand, which

involves indicating internal and external capabilities, as well as arranging the

resources that help develop a potential market that indicates the total amount of

income and units that are necessary to satisfy our segment of market ". (Porter

M. , 1991)

The company has a small market since it produces school shoes, men's shoes,

industrial shoes and very few women's shoes, which prevents it from penetrating a

market since it faces difficulties due to lack of cash and does not have a department. of

innovation and marketing for the product, which generates consumer preference for

foreign footwear, and this puts the demand of the customer segment at risk so that the

company is slow in its reaction to new market needs.


27

On the other hand, the company is losing power in its market since customers, not

feeling pleased, choose to choose other companies where they are offered a wide variety

of products such as PONI, ZARA and foreign footwear.

2.2.5. Production capacity

The footwear manufacturing process in Buestan follows the same pattern for all

types of models, it only changes when industrial footwear for chefs is made, which

takes a little longer to make, since it is made with technological machines that reduce

the time.

1.- Storage of materials

2.- Material transportation to the process area

3.- Cuts of pieces according to the molding on the machinery (Foliated, Engraved,

Perforated, Inserting)

4.- Assembly

5.-Soled

6.- Finish

7.- Pigmented

8.-Packaging

9.- Storage of finished footwear


28

2.3. SWOT Analysis

2.3.1. Arrays

2.3.1.1. Summary matrices (1-4).


Table 4
Matrix 1 Summary of Strengths
No. STRENGTHS
Trained staff
1 F1
2 F2 Current technological systems
3 F3 Brand recognition
4 F4 Quality Products
5 F5 Adequate infrastructure
6 F6 Good location of its premises.
7 F7 Staff committed to the company
8 F8 Well-defined market segment.
Prepared by the authors, own research source.

Table 5
Matrix 2 Summary of Opportunities
No. OPPORTUNITIES
1 O1 Industrial Market Growth
2 O2 Technological Growth
3 O3 Tariff law and taxes on imported footwear.
4 O4 High prices from the competition.
5 O5 Attracting potential consumers.
Prepared by the authors, own research source.

Table 6
Matrix 3 Summary of Weaknesses
No WEAKNESSES
.
1 D1 Little capacity for promotion and advertising.
2 D2 Leather suppliers do not meet required quality standards.
3 D3 Lack of innovation in their models

4 D4 Delay in the payment of salaries and wages.


5 D5 Little variety in women's footwear.

Prepared by the authors, own research source.


29

Table 7
Matrix 4 Threat Summary
No. THREATS
1 A1 Imported products
2 A2 High number of footwear brands nationwide.
3 A3 Instability in interest rates.
4 A4 Increase in the unemployment rate.
5 TO Most competitive footwear companies.
5
6 A6 Demanding clients in brand and fashion.
7 A7 Current economic instability.
Prepared by the authors, own research source.

2.3.1.2. Impact weighting matrices (5-8).

Table 8
Matrix 5 Impact of Strengths
N STRENGTHS IMPACT
o. HIGH HALF LOW
1 F1 Trained staff x

2 F2 Current technological systems x


3 F3 Brand recognition x
4 F4 Quality Products x
5 F5 Adequate infrastructure x
6 F6 Good location of its premises. x
7 F7 Staff committed to the company x
8 F8 Well-defined market segment. x
6 2 0
75% 25% 0%
Prepared by the authors, own research source.

Table 9
Matrix 6 Impact of Opportunities
N OPPORTUNITIES IMPACT
o. HIGH HALF LOW
1 O1 Industrial Market Growth x
30

2 O2 Technological Growth x
3 O3 Tariff law and taxes on imported footwear. x
4 O4 High prices from the competition. x
5 O5 Attracting potential consumers. x
4 1 0
80% 20% 0%
Prepared by the authors, own research source.

Table 10
Matrix 7 Impact of Weaknesses
N WEAKNESSES IMPACT
o. HIGH HALF LOW
1 D1 Little capacity for promotion and advertising. x
2 D2 Leather suppliers do not meet required quality x
standards.
3 D3 Lack of innovation in their models x

4 D4 Delay in the payment of salaries and wages. x


5 D5 Little variety in women's footwear. x
1 4 0
20% 80% 0%
Prepared by the authors, own research source.

Table 11
Matrix 8 Impact of Threats
N THREATS IMPACT
o. HIGH HALF LOW
1 A1 Imported products x
2 A2 High number of footwear brands nationwide. x
3 A3 Instability in interest rates. x
4 A4 Increase in the unemployment rate. x
5 TO Most competitive footwear companies. x
5
6 A6 Demanding clients in brand and fashion. x
7 A7 Current economic instability. x
3 2 2
43% 29% 29%
Prepared by the authors, own research source.
31

2.3.1.3. Action Matrices (9-13).

Table 12
Matrix 9 Offensive Areas of FO strategic initiative

O1 O2 O4 O5

OPPORTUNITIES

Industrial Market

High prices from


the competition.
Technological
WEIGHING

TOTAL
consumers.
Attracting
potential
Growth

Growth
High=5
Average=3
Low=1
STRENGTHS
Trained staff 1
F1 1 1 1 4
F2 Current technological systems 3 5 5 3 16
F4 Quality Products 5 5 1 5 16
F5 Adequate infrastructure 1 1 1 1 4
F7 Staff committed to the company 1 1 1 1 4
F8 Well-defined market segment. 5 1 1 5 12
TOTAL 16 14 10 16 56
Prepared by the authors, own research source.

Table 13
Average FO matrix and force balance ratio.

No. Average
Rows 6 9
Columns 4 14
Force Balance Ratio 46,67%
Prepared by the authors, own research source.
32

Table 14
Matrix 10 Defensive Areas of DA Strategic Initiative
A A A
3 6 7

Current economic
THREATS

TOTAL
Instability in
WEIGHING

Demanding
High=5
Average=3
Low=1
WEAKNESSES
D
1 Little capacity for promotion and advertising. 1 3 5 9
D
2 Leather suppliers do not meet required quality standards. 1 3 1 5
D Lack of innovation in their models
3 1 5 3 9
TOTAL 3 11 9 23
Prepared by the authors, own research source.

Table 15
Average DA matrix and force balance ratio.

No. Average
Rows 3 8
Columns 3 8
Force Balance Ratio 51,11%
Prepared by the authors, own research source.

Table 16
Matrix 11 Offensive Areas of FA Strategic Initiative

A3 A6 A7
Current economic
clients in brand
THREATS

interest rates.
Instability in

and fashion.

WEIGHING
Demanding

instability.
TOTAL

High=5
Average=3
Low=1
STRENGTHS
Trained staff
F1 1 1 1 3
F2 Current technological systems 1 3 1 5
F4 Quality Products 1 5 1 7
33

F5 Adequate infrastructure 1 1 1 3
F7 Staff committed to the company 1 1 1 3
F8 Well-defined market segment. 1 5 1 7
TOTAL 6 16 6 28
Prepared by the authors, own research source.

Table 17
Average FA matrix and force balance ratio.

No. Average
Rows 6 5
Columns 3 9
Force Balance Ratio 31,11%
Prepared by the authors, own research source.

Table 18
Matrix 12 Areas of Strategic Improvement DO

O1 O2 O4 O5
OPPORTUNITIES
Industrial Market

High prices from


the competition.
Technological
WEIGHING

Attracting
potential
TOTAL
Growth

Growth
High=5
Average=3
Low=1
WEAKNESSES
D1 Little capacity for promotion and advertising. 3 5 3 5 16
Leather suppliers do not meet required quality
D2 standards. 1 3 1 1 6
Lack of innovation in their models
D3 3 5 3 5 16
TOTAL 7 13 7 11 38
Prepared by the authors, own research source.

Table 19
Average DO matrix and force balance ratio.

No. Average
Rows 3 13
Columns 4 10
Force Balance Ratio 63,33%
Prepared by the authors, own research source.

Table 20
Matrix 13 Strategic Matrix numerical terms.
34

Strength Balance Ratio Opportunities Threats


Strengths 46,67% 31,11%
Weaknesses 63,33% 51,11%
Prepared by the authors, own research source.

1.1.1.1. Strategic Synthesis Matrix (14).

Table 21
Matrix 14 Strategic Synthesis

OPPORTUNITIES THREATS
FO FA
F2 Current technological systems F2 Current technological systems
F4 Quality Products Quality Products
STRENGTHS

F4
F8 Well-defined market segment. F8 Well-defined market segment.
A6 Demanding clients in brand and
O1 Industrial Market Growth fashion.
O2 Technological Growth
O5 Attracting potential consumers.
DO GIVES
WEAKNESSES

Little capacity for promotion and Little capacity for promotion and
D1 advertising. D1 advertising.
Lack of innovation in their models Lack of innovation in their models
D3 D3
A6 Demanding clients in brand and
O2 Technological Growth fashion.
O5 Attracting potential consumers. A7 Current economic instability.
Prepared by the authors, own research source.
35
36

1.1.1.1. Pre-Initiative Matrix (15).

Table 22
Matrix 15 Pre-Initiative
STRENGTHS WEAKNESSES
F2 Current technological systems D1 Little capacity for promotion and advertising.
Lack of innovation in their models
F4 Quality Products D3
F8 Well-defined market segment.
OPPORTUNITIES FO DO
Take advantage of technological
Create programs for advertising and promotion
O1 Industrial Market Growth systems to improve productivity and
of the company.
competitiveness.
Provide a guarantee of quality products
Design training programs, for the development
O2 Technological Growth offered to the market, to attract new
of models according to the needs of the market.
customers and maintain current ones.
O5 Attracting potential consumers.
THREATS FA GIVES
Take advantage of the fact that quality
Design advertising and promotion programs
products are produced by current
A6 Demanding clients in brand and fashion. according to the needs and demands of the
technological systems, so they can meet
market.
the needs and demands of the market.
Develop contingency plans to deal with Design new models of footwear according to
A7 Current economic instability.
the economic situation of the country. the needs and demands of the market.
Prepared by the authors, own research source.
37

1.1.1.1. Weighting and impact matrices (16-17).

Table 23
Matrix 16 Evaluation of Internal Factors
N Internal Factors Relative Qualificatio Total
o. weight n
1 F1 Trained staff 0,11 4 0,44

2 F2
Current technological systems 0,11 4 0,44
3 F3
Brand recognition 0,06 3 0,18
4 F4
Quality Products 0,11 4 0,44
5 F5
Adequate infrastructure 0,11 4 0,44
6 F6
Good location of its premises. 0,06 3 0,18
7 F7
Staff committed to the company 0,11 4 0,44
8 F8
Well-defined market segment. 0,06 3 0,18
1 D1
Little capacity for promotion and advertising. 0,09 1 0,09
2 D2
Leather suppliers do not meet required 0,03 2 0,06
quality standards.
3 D3 Lack of innovation in their models 0,03 2 0,06

4 D4 Delay in the payment of salaries and wages. 0,09 1 0,09


5 D5 Little variety in women's footwear. 0,03 2 0,06
TOTAL 1 3,1
Prepared by the authors, own research source.

Table 24
Matrix 16 Evaluation of External Factors
N External factors Relative Qualificatio Total
o. weight n
1 O1 Industrial Market Growth 0,08 3 0,24
2 O2 Technological Growth 0,1 4 0,4
3 O3 Tariff law and taxes on imported 0,04 2 0,08
footwear.
4 O4 High prices from the competition. 0,1 4 0,4
5 O5 Attracting potential consumers. 0,11 4 0,44
1 A1 Imported products 0,08 3 0,24
2 A2 High number of footwear brands 0,11 4 0,44
nationwide.
3 A3 Instability in interest rates. 0,04 2 0,08
4 A4 Increase in the unemployment rate. 0,04 2 0,08
5 TO Most competitive footwear companies. 0,11 4 0,44
5
6 A6 Demanding clients in brand and fashion. 0,11 4 0,44
7 A7 Current economic instability. 0,08 3 0,24
TOTAL 1 3,52

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Prepared by the authors, own research source.

1.1.1.1. Validation Matrix (17).

Table 24
Matrix 17 Evaluation of External Factors
Key factors Relative Qualificatio Total Attractiv Range
weight n e
Current technological systems 12% 8 0,96 Low 1 - 3,33
Quality Products 12% 8 0,96
Well-defined market segment. 8% 6 0,48
Little capacity for promotion and 11% 6 0,66 Half 3,4 - 6,6
advertising.
Lack of innovation in their models 5% 4 0,2

Industrial Market Growth 9% 8 0,72


Technological Growth 11% 8 0,88 high 6,7 - 10
Attracting potential consumers. 12% 8 0,96
Demanding clients in brand and 12% 6 0,72
fashion.
Current economic instability. 8% 6 0,48
TOTAL 100% 7,02
Prepared by the authors, own research source.

Industry Attraction 7,02


Business Position 7,02

9,99
Alta

Invertir Invertir Equilibrar


Atractivo de la Industria

6,66
Media

Invertir Equilibrar Retirarse


3,33
Baja

Equilibrar Retirarse Retirarse


0
9,99 6,66 3,33 0
Posicion del Negocio
Fuerte Promedio Debil

Figure 5. General Electric Matrix.

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2.3.2. Synthesis

The study of the SWOT matrix is based on a comprehensive analysis of the company

Buestan Cta. The same company that is dedicated to the manufacture of footwear

mainly focused on the men's market segment and in small quantities for women, which

creates a great disadvantage in the face of both national and international competition.

On the other hand, the acquisition of machinery with cutting-edge technology is used to

reduce production times and, in turn, improve footwear production and having

committed personnel should be used to improve quality standards.

The position of BUESTAN “SA” in the footwear industry is at a high level with

business position, which shows that the company is in growth and development with its

defined market segment, since it has current technological systems that They have not

yet acquired national competition, which allows the company to invest in technology to

obtain better profitability.

3. CHAPTER 3. MARKET RESEARCH AND

SEGMENTATION

3.1. Problem definition

Various factors such as the lack and empiricism regarding the development strategies of

marketing programs are key to the problem presented, as are the lack of brand

recognition, foreign brands with better prices and technology that constitute tools.

fundamental for the management of databases, the same ones that could help

significantly in the development of strategies, we must also take into account the

deficiency in the training and motivation programs in the customer service area, this can

MKT. Strategic 3 Eng. Guido


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be key when understand the reason for the decline in the management of customer

relationships.

Have strategies that allow increasing sales in the Rumiñahui canton of the Buestan

brand.

3.2. Research objectives

General objective

Carry out a market study, using descriptive research with the survey technique,

determining marketing strategies to know the tastes and preferences of the consumer

regarding Buestan brand footwear.

Specific objectives.

- Identify potential customers of the Buestan company.

- Establish the market share of the Buestan company in the consumer's mind

- Determine the most relevant aspects that users consider when purchasing

footwear.

- Know the main means of dissemination by which consumers learn about the

product offered by footwear stores.

Analyze aspects such as product quality, promotion, competition, positioning, place,

price, purchase motivations, focusing from the customer's point of view which provides

us with accurate information about their needs, tastes and preferences.

3.3. Investigation methodology

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To collect information on the market to which the Buestan brand product will be

directed, the following methodology will be applied:

- Interviews: the owner will be asked questions about the current situation of the

company, to facilitate the appropriate collection of data to analyze and determine

solutions.

- Survey: the potential customer survey will be applied, with the purpose of

collecting information that facilitates determining those parameters that Buestan

does not know for the marketing of footwear.

We can find or classify three types which are the following:

 Exploratory investigation.

 Conclusive or quantitative research.

 Performance Monitoring Research

Of the methods detailed above, to develop this marketing plan we are going to apply

conclusive or qualitative research since this type of research allows us to test

hypotheses, we can clearly define information and it serves as a basis for decision-

making.

For the development of this market research, it was determined that the survey

technique can be used, since it allows obtaining more information, quickly, with lower

costs and with a high percentage of reliability.

3.4. Design of the investigation

The research design according to Malhotra (2008) is: “The scheme or program

to carry out the marketing research project. It specifies the details of the procedures that

MKT. Strategic 4 Eng. Guido


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42

are necessary to obtain the required information, to structure and/or solve market

research problems” (p.78).

For this Strategic Marketing Plan, a type of descriptive research will be applied,

since it is intended to investigate the characteristics of the footwear market in the

Rumiñahui canton, and see how the Buestan brand is positioned in it.

That is why the survey will be applied as an instrument to obtain the necessary

information from potential clients. It is made up of 13 questions, and structured as

follows:

UNIVERSITY OF THE ARMED FORCES ESPE


DEPARTMENT OF ADMINISTRATIVE AND COMMERCE ECONOMIC
SCIENCES
COMMERCIAL ENGINEERING
Objective: To know the tastes and preferences of footwear consumers and obtain
information about the knowledge of the Buestan brand in the Rumiñahui canton.

Sector: Date:

Age Sex
20-30 F M
30-40
40-50
More than 50

1. When do you prefer to purchase footwear?

National Brand Foreign Brand

2. What type of footwear do you use?

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43

Casual School Industrial Security

3. How often do you buy shoes?

Every 3 months Every 6 months Every year

4. When you go to buy shoes, for which of these reasons do you buy them?

Exclusiveness Design Quality


Comfort Durability High price
Brand Fashion Low price

5. What brand would you choose when buying footwear?

Bunki Coat
Venus fallow deer
Ponti Redwing

6. Indicate which of the following attributes each brand is characterized by.

Redwing
Venus

fallow
Bunki

Ponti

Coat

deer

Exclusiveness
Comfort
Brand
Design
Durability
Fashion
Quality
High price
Low price

7. Do you buy the Buestan footwear brand?

Yeah No

8. What do you think Calzado Buestan needs to meet the expectations of its
customers?

Product quality Excellent customer service

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Affordable prices Improve communication channels

9. Would you recommend other people to purchase Buestan footwear


products?

Yeah No

10. What type of promotions would you like to have when purchasing
footwear?

Coupons Discounts Gifts

11. Underline how much you would be willing to pay for a pair of shoes.

Casual School Industrial


$25-38 $20-30 $48-55
$42-55 $31-40 $68-75
$68-120 $41-50 $100-150

12. Through what media would you like the different footwear brands to be
made known?

Catalogs Billboards
Television Social networks
Radio

13. Where would you prefer to buy shoes?

Malls Warehouses Factory

Thank you very much for your help.

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3.5. Sample definition

To determine the sample in this marketing research, simple random sampling

will be used, which is a type of probabilistic sampling in which each member of the

population has a probability of being chosen, said member is selected independently.

(Malhotra, 2008) .

The sample will be extracted from the population using the following formula:

2
z p∗q∗N
n= 2 2
e ( N−1 ) + z ∗p∗q

Where:

z = confidence level;

p = probability of occurrence;

q = probability of non-occurrence;

N = population size;

e = percentage of error.

The size of the population will be the number of inhabitants of the Rumiñahui

canton, below is the total number of inhabitants:

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Table 19
Distribution of the population according to sex

Men Women Total


43935 41917 85852
Note. Recovered from the Rumiñahui Canton Territorial Planning and Development Plan 2012 – 2025.
Update 2014 – 2019(GAD Municipal Canton Rumiñahui, 2014) .

The economically active population of 42,408 inhabitants (GAD Municipal

Canton Rumiñahui, 2014) .

We proceed to calculate the sample with the following information:

z = 1.96;

p = 0.8;

q = 0.2;

N = 42408;

e = 0.5.

2
1, 96 ∗0 , 8∗0 , 2∗42408
n= 2 2
0 ,05 ( 42408−1 ) +1 , 96 ∗0 ,8∗0 , 2

n=244

Our sample is 244 inhabitants of the Rumiñahui canton.

3.6. Market segmentation


4. Market segmentation is given as follows:

5. Table 20
6. Geographical segmentation

Geographic
Country Ecuador
Region Mountain range
Province Pichincha

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Canton Rumiñahui
7. Prepared by the authors, own research source.

8. Board1 1
9. Demographic Segmentation

Demographic
Age 20- 50 years
Sex Male Female
Occupation Students, independent workers and public or private employees.
Nationality Ecuadorian
10. Prepared by the authors, own research source.

11. Table 22
12. Psychographic Segmentation

Psychographic
Social class Medium and Medium High
Personality Jovial, dynamic and enthusiastic
13. Prepared by the authors, own research source.

14.

15. Table 23
16. Behavioral Segmentation

Behavioral
Benefit comfort and protection to the feet
Purchase Frequency 1- 4 times per year
17. Prepared by the authors, own research source.

3.7 Conclusions from segmentation and research

Table 24
Ages

Valid Accumulated
Frequency Percentage percentage percentage
Valid 20- 30 years 207 84,8 85,2 85,2
31- 40 years 11 4,5 4,5 89,7
41 - 50 years 25 10,2 10,3 100,0

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48

Total 243 99,6 100,0


Lost System 1 ,4
Total 244 100,0
Table 25: SPSS research work
Prepared by: Authors of the research

Analysis:

As seen in the graph, the highest percentage of age is in the range of 20 to 39 years,

represented by a percentage of 84, 80%, which are young people, followed by people

between a range of 41 50 years old with 10.20% and with little difference people

between 31 to 40 years old with 4.50%.

Table 25
Sex

Percentag Valid Accumulated


Frequency e percentage percentage
Valid Female 139 57,0 57,2 57,2
Male 104 42,6 42,8 100,0
Total 243 99,6 100,0
Lost System 1 ,4
Total 244 100,0
Table 25: SPSS research work
Prepared by: Authors of the research

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Graphic

Analysis:

It can be seen that 57% of the people surveyed correspond to the female gender and the
other 42.6% correspond to the male gender. This means that their main interest is
among women in Buestan footwear.

TABLE 26
1.-When do you prefer to purchase footwear?

Valid Accumulated
Frequency Percentage percentage percentage
Valid 1 ,4 ,4 ,4
Foreign Brand 105 41,8 41,8 43,4
National Brand 139 56,6 56,6 100,0
Total 244 100,0 100,0
Table 26: SPSS research work
Prepared by: Authors of the research

ANALYSIS:

It can be seen in the table that 56.60% of the people surveyed have a preference for the
national brand of footwear, while 41.80% prefer a foreign brand.

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TABLE 27
2.- What type of footwear do you use?

Percentag Valid Accumulated


Frequency e percentage percentage
Valid 1 ,4 ,4 ,4
Casual 221 90,6 90,6 91,8
School 5 2,0 2,0 93,0
Industrial
17 7,0 7,0 100,0
Security
Total 244 100,0 100,0
Table 27: SPSS research work
Prepared by: Authors of the research

Analysis:

It can be seen that of the people surveyed, 90.6% use casual shoes, on the other hand,

7% use industrial safety shoes and 2% use school shoes.

TABLE 28
3.-How often do you buy shoes?

Percentag Accumulated
Frequency e Valid percentage percentage
Every 3
57 23,4 23,4 25,0
months
Every 6
93 38,1 38,1 63,1
months
Every year 94 38,5 38,5 100,0
Total 244 100,0 100,0
Table 28: SPSS research work
Prepared by: Authors of the research

Analysis:
It can be seen that of the people surveyed, 38.5% have mentioned that they purchase
footwear on an annual average, on the other hand, 38.1% do so every 6 months and
finally 23.4% purchase them every 3 months.

TABLE 29
4.- When you are going to buy footwear, for which of these reasons do you buy it?

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Percentag Accumulated
Frequency e Valid percentage percentage
Valid 1 ,4 ,4 ,4
Brand 1 ,4 ,4 ,8
Quality 17 7,0 7,0 7,8
Comfort 64 26,2 26,2 34,0
Design 43 17,6 17,6 51,6
Durability 56 23,0 23,0 74,6
Exclusivene
7 2,9 2,9 77,5
ss
Brand 19 7,8 7,8 85,2
Fashion 12 4,9 4,9 90,2
High price 1 ,4 ,4 90,6
Low price 23 9,4 9,4 100,0
Total 244 100,0 100,0
Table 29: SPSS research work
Prepared by: Authors of the research

Analysis:
It can be seen in the table that 26.2% of the people surveyed purchase footwear for

comfort, 23% for durability, 17.6% for its design and less than 10% purchase it for

other variables.

TABLE 30
5.-What brand would you choose when buying footwear?

Percentag Accumulated
Frequency e Valid percentage percentage
Coat 54 22,1 22,1 28,7
Buestan 63 25,8 25,8 48,4
Bunki 21 8,6 8,6 57,0
fallow
21 8,6 8,6 65,6
deer
Ponti 62 25,4 25,4 91,0
Venus 22 9,0 9,0 100,0
Total 244 100,0 100,0
Table 30: SPSS research work
Prepared by: Authors of the research

Analysis:

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It can be seen that 25.8% of those surveyed chose the Buestan brand when buying

shoes, on the other hand, 25.4% chose the Ponti brand, 22.1% the Bata brand and less

than 10% bought others. brands.

TABLE 31
6. Do you buy the Buestan footwear brand?

Percentag Accumulated
Frequency e Valid percentage percentage
Yeah 147 60 60 62,3
No 97 40 40 99,2
Total 244 100,0 100,0
Table 31: SPSS research work
Prepared by: Authors of the research

Analysis:
It can be seen that 60% of those surveyed do buy the Buestan brand, while the
remaining 40% do not purchase it.

TABLE 32
7. What do you think Calzado Buestan needs to meet the expectations of its customers?

Valid Accumulated
Frequency Percentage percentage percentage
Improve communication
1 ,4 ,4 4,1
channels
Product quality 52 21,3 21,3 25,4
Excellent customer
20 8,2 8,2 33,6
service
Improve communication
102 4,8 4,8 75,8
channels
Affordable prices 70 28,7 28,7 100,0
Total 244 100,0 100,0

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Table 32: SPSS research work


Prepared by: Authors of the research

Analysis:

It can be seen that 28.7% of the people surveyed point out that Buestan should have

affordable prices on their roads, on the other hand, 21.3% point out product quality and

less than 10% point out other variables.

TABLE 33
8. Would you recommend other people to purchase Buestan footwear products?

Percentag Accumulated
Frequency e Valid percentage percentage
No 50 20,5 20,5 23,8
Yeah 194 79,5 79,5 100,0
Total 244 100,0 100,0
Table 33: SPSS research work
Prepared by: Authors of the research

Analysis:

It can be seen that 79.5% of those surveyed would recommend the Buestan brand, while

the remaining 20.5% said they would not.

TABLE 34
9.What type of promotions would you like to have when purchasing footwear?

Valid Accumulated
Frequency Percentage percentage percentage
Coupons 13 5,3 5,3 7,3
Discounts 193 79,1 79,1 84,8
Gifts 38 15,6 15,6 100,0
Total 244 100,0 100,0

Table 34: SPSS research work


Prepared by: Authors of the research

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Analysis:

It is observed that 79.1% of those surveyed would like to acquire discounts as a promotion for

purchasing their footwear, the other 15.6% indicated that they would like gifts and 5.3% that

they would like coupons.

TABLE 35
10. Through what media would you like the different footwear brands to be made
known?

Percentag Accumulated
Frequency e Valid percentage percentage
Catalogs 43 17,6 17,6 21,3
Radio 3 1,2 1,2 20,5
Social networks 148 60,6 60,6 81,6
Television 47 19,3 19,3 98,8
Billboards 3 1,2 1,2 100,0
Total 244 100,0 100,0
Table 30: SPSS research work
Prepared by: Authors of the research

Analysis:

It is observed that 60.6% of the people surveyed would like to find out about footwear

brands through social networks, 19.3% on television, 17.6% in catalogs and 1.2%

between radio and billboards. .

TABLE 36
11.Where would you prefer to buy shoes?

Percentag Valid Accumulated


Frequency e percentage percentage
Valid 4 1,6 1,6 1,6
Warehouses 75 30,7 30,7 32,4
Malls 112 45,9 45,9 78,3
Factory 53 21,7 21,7 100,0
Total 244 100,0 100,0
Table 30: SPSS research work
Prepared by: Authors of the research

Analysis:

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It is observed that 45.9% of the people surveyed prefer to buy footwear in shopping

centers, 30.7% in warehouses and 21.7% in factories.

CROSS TABLES

TABLE 37
Cross table AGE*2. What type of footwear do you use?

2.What type of footwear do you use?


Casua
Casual l School Industrial Security Total
AGE 20- 30
1 186 5 15 207
years
31- 40
0 11 0 0 11
years
41 - 50
0 23 0 2 25
years
Total 1 220 5 17 243
Table 30: SPSS research work
Prepared by: Authors of the research

Analysis :

According to the surveys carried out on the relationship between age and the type of

footwear used, 84.6% of the total sample, most of whom are between 20 and 30 years

old, affirm that they use casual footwear.

TABLE 38
Cross table GENDER*2. What type of footwear do you use?

2.What type of footwear do you use?


Casual Casual School Industrial Security Total
SEX Female 1 128 1 9 139
Male 0 92 4 8 104
Total 1 220 5 17 243

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Table 36: SPSS research work


Prepared by: Authors of the research

Analysis :

According to the surveys carried out on the relationship between sex and the type of

footwear used, 58.2% of the total sample, most of whom are female, affirm that they use

casual footwear.

TABLE 39
Cross table AGE*5. What brand would you choose when buying footwear?

5.What brand would you choose when buying


footwear?
fallow
Coat Buestan Bunki deer Ponti Venus Total
AGE 20- 30
46 52 18 20 53 18 207
years
31- 40
1 3 2 0 4 1 11
years
41 - 50
7 7 2 1 5 3 25
years
Total 54 62 21 21 62 22 243
Table 30: SPSS research work
Prepared by: Authors of the research

Analysis :

According to the surveys carried out on the relationship between age and the brand that

would be chosen when buying footwear, 23.46% of the total sample, most of whom are

between 20 and 30 years old, claim to buy the Buestan brand.

Conclusion

Once the survey has been done and the corresponding analysis has been carried

out, we can say that the target or objective market that the Buestan company should

focus on in the Rumiñahui Canton is young people between the age range of 20 to 30

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years, with causal type shoes being the most used by the people who were taken as a

sample.

On the other hand, 28.5% of the population investigated uses the Buestan brand, the

vast majority being women who purchase it every year since the variables that

consumers take into account when purchasing footwear among the most important are:

Durability, Quality and Prices low being the way to attract customers should be through

social networks which would help to have a good positioning of the brand in that place.

3.8 Demand analysis

There are many factors to determine the quantity that consumers wish to

purchase of goods in a given time, that is, tastes and preferences, income and prices of

goods in competition and, above all, the price of the specific goods they wish to

purchase. our consumers.

This analysis aims to measure the volume of footwear products that consumers

are able to purchase from the Buestan company according to their income. This demand

is associated with price stability, sales conditions, etc. and is projected according to the

demand obtained from the desired one. The footwear sector in our country represents an

important commercialization in the footwear industry such as: Bunki Venus, Ponti,

Bata, Gamos and Red Wing, however these companies market footwear that does not

meet consumer expectations.

Table 40
Trade Balance of the Footwear Industry

YEAR EXPORTS ($) IMPORTS ($) BALANCE


($)

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2014 $ 42.979,00 $ 131.590,00 $ -88.611,00


2015 $ 29.880,00 $ 151.169,00 $-121.289,00
2016 $ 33.078,00 $ 173.600,00 $-140.522,00
2017 $ 33.379,00 $ 174.221,00 $-140.842,00
2018 $ 25.708,00 $ 160.937,00 $-135.229,00
TOTAL $ 165.024,00 $ 791.517,00
Prepared by the authors, Source: Trade Map web portal, 2019

Table 25
National Footwear Production

YEAR NATIONAL
PRODUCTION
2014 $ 151.116,41
2015 $ 136.732,38
2016 $ 181.348,29
2017 $ 172.718,01
2018 $ 160.572,37
TOTAL $ 802.487,46
Prepared by the authors, Source: web portal of the National Institute of Statistics and Censuses.

Table 26
Apparent Consumption - Demand

YEAR NATIONAL IMPORTS ($) EXPORTS APPARENT


PRODUCTION ($) CONSUMPTION
2014 $ 151.116,41 $ 131.590,00 $ 42.979,00 $ 239.727,41
2015 $ 136.732,38 $ 151.169,00 $ 29.880,00 $ 258.021,38
2016 $ 181.348,29 $ 173.600,00 $ 33.078,00 $ 321.870,29
2017 $ 172.718,01 $ 174.221,00 $ 33.379,00 $ 313.560,01
2018 $ 160.572,37 $ 160.937,00 $ 25.708,00 $ 295.801,37
TOTAL $ 802.487,46 $ 791.517,00 $ 165.024,00 $ 1.428.980,46
Prepared by the authors, Source: web portal of the National Institute of Statistics and Censuses.

The methodology that we are going to use to project demand is the global growth rate

causal model.

TGC :

n−1 VU
VI
1∗100

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TCG

5−1 295.801 , 37
239.727 , 41
−1∗100=5 , 39

3.9 ANALYSIS OF THE OFFER

In the same way as we did in the demand, in the national market there are

companies with the technological capacity to produce footwear, Buestan has the

appropriate technology which means that this company is capable of producing, so the

supply will be determined accordingly. to the capacity of companies. (Carrion, 2007)

Table 23
Footwear production offer

YEAR FOOTWEAR
PRODUCTION
OFFER
2014 308900
2015 312956
2016 336969
2017 346069
2018 365012
TOTAL 1263937

Prepared by the authors

3.10 ESTIMATION OF UNSATISFIED DEMAND

Table 24
Demand Estimation

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Projected Demand
Yea
Apparent Projected Offer Unsatisfied demand
r TCG
Consumption
2014 239.727,41
2015 258.021,38
2016 321.870,29
2017 313.560,01
2018 295.801,37
TCG 5,39%
2019 311745,06 308900 -2845,06
2020 328548,12 312956 -15592,12
2021 346256,87 336969 -9287,87
2022 364920,11 346069 -18851,11
2023 384589,3 369012 -15577,30
Prepared by the authors, Source : web portal of the National Institute of Statistics and Censuses.

CHAPTER 4. STRATEGIC DIRECTION

4.1 Vision

“To be a leader in the market, through professional administration that allows for

sustained and orderly growth” (Buestán, 2015)

4.2 Mission:

“Provide comfortable, healthy and fashionable shoes to the customer, offering an

extraordinary shopping experience and generating benefits for the entire community”

(Buestán, 2015)

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4.3 Principles

 Commitment to results, in the sense of our work

 Commitment to setting an example, Positively influencing the work of others,

generating satisfactory teamwork

 competent to continually meet the expectations of our internal and external

clients with agility and anticipating their needs

 Quality

 Innovation (Buestán, 2015)

4.4. Values

 Responsibility in all activities carried out in the company

 Leadership in every action that the company takes.

 Efficiency in company processes

 Honesty in all activities carried out in the company, keeping in mind the

interests of the staff and the client

Proposed values

 Responsibility in all activities carried out in the company.

 Leadership in every action taken

 Efficiency in company processes

 Honesty in all activities carried out in the company, keeping in mind the

interests of the staff and the client.

 Integrity in the company's decisions and actions

 Decision making based on specific criteria

 Excellence in offering quality products

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4.5. Goals

Strategic objectives are statements that describe the scope, nature, and ideals of an

organization that it intends to achieve in the future; these can be short or medium-long

term. They have to be measurable and at the same time constitute an approximation of

the contents of the institutional vision and mission.

The objectives according to their time are classified as follows:

Long term : also known as the company's strategic objectives, which define the

future of the company, are based on specifications, are notably speculative and are

carried out in a minimum period of 3 years and 5 years. The long-term objectives will

be achieved with the fulfillment of the set of short-term objectives.

Medium term: these are the tactical objectives of the company and are based on the

general objective of the company.

Short term: they are also called individual objectives since they are those that are to

be achieved within the company, they are those that are carried out in a period of one

year.

4.5.1. Objective characteristics

Table 29

Y Specific Clear, well defined and compressible

es

M Measurable (Measurable) Be evaluated according to a quantifiable

parameter

T Assignable (Delegables) A person responsible for compliance and

O evaluation can be assigned.

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R Realistic That they are possible to execute with the

available resources

T Time (Allocated Time) They must have a specific beginning and end

Source: Salazar Pico Francis


Prepared by: Member

Goals chart

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OBJETIVOS
FACTOR TIEMPO DE
N° EJE FACTOR MEDIBLE ASIGNABLE RECURSOS
ESPECIFICO EJECUCIÓN

Tecnológicos, Crear nuevos vinculos estrategicos


Alianzas Implemtar alianzas
1 # de alianzas Gerente financieros, humanos, 1 años para mejorar los beneficios que se
estrategicas estrategicas
materiales le ofrece al cliente.

Diseñar un programa de
Índice de Tecnológicos, capacitacion enfocado en la
2 Capacitación Atención al cliente satisfacción al Ventas financieros, humanos, 2 años atención del cliente para mantener
cliente materiales un recurso humano que aporte a la
empresa y brinde un mejor servicio
Tecnológicos, Incorporar nueva tecnologia para el
Adquisición de
3 Tecnología # de adquisiciones Gerente, ventas financieros, humanos, 2 años mejoramiento de los procesos de
nueva tecnología
materiales produccion de la empresa
N° de ventas / Tecnológicos,
Aumentar las Incrementar las ventas en el
4 Demanda participación en el Gerente, ventas financieros, humanos, 1 año
ventas mercado actual
mercado materiales

Alcanzar a nuevos Tecnológicos,


Nuevos N° de nuevos Fortalecer los segementos en base
5 segmentos de Gerente, ventas financieros, humanos, 1 años
segmentos clientes a la calidad, servicios y buen precio
mercado materiales

Capacidad de Tecnológicos,
Desarrollar medios de promocion y
6 Publicidad promocion y N° de clientes Gerente, ventas financieros, humanos, 2 años
publicidad para la empresa
publicidad materiales

Incorporar nuevos puntos de


Tecnológicos,
Ampliar la ventas en lugares estrategicos
7 Punto de venta N° punto de venta Gerente, ventas financieros, humanos, 3 años
cobertura como centro comeciales para llegar
materiales
a nuevos clientes.

Table 30: Objectives


Prepared by: Members
65

Strategic objectives

Table 31

No. GOALS

1 Know the market trend that allows the competitiveness of 2019 products

2 Spread the products on the market in the market to achieve positioning in the

consumer's mind 2019

3 Increase 6% market share in 2019 through the variety of innovative products

and quality.

4.6. Strategic Options

Strategy is a product of a group of actions linked to the allocation of resources and

tactical decision making, which these actions lead the company to achieve a competitive

position within the market. Strategies can be defined as the achievement of the

objectives that the company seeks in a conflictive situation, that is, a constant struggle

to obtain hypothetical results.

Strategy Chart

Table 32g

E1 A customer service training program will be designed to have optimal staff that

contributes to the company and can provide better service.

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E2 Training programs will be designed for company personnel on productivity and

competitiveness.

E3 Acquisition of technology for the optimization of company resources.

E4 Create programs for advertising and promotion of the company through social

networks or media.

E5 Implement information hangers on types of footwear (dayketing)

E6 Redesign and enhance the company's website in conjunction with social networks

E7 Maintain the production of the industrial footwear production line

E8 Innovate in the design of women's footwear.

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Source: Authors

Objectives and strategies alignment matrix

Table 33
Estrategias
E1 E2 E3 E4 E5 E6 E7 E8
Objetivos
Alianzas estratégicas
Crear alianzas estrategcs para el beneficio de los X X
clientes
Capacitación
Diseñar un programa de capacitación sobre
aten´con al cliente para tener un recurso X X
hummano que aporte a la empresa y pueda
brindar un mejor servicio
Tecnologia
Incorporar nueva tecnologia para el X X
mejoramiento de los productos de producción
Demanda
X X X
Incrementar las ventas en el nuevo mercado
Nuevos segmentos
Fortalecer el segmento en base a la calidad, X X
precio y buen servicio del producto

Brindar al cliente una experencia única en base a


X
calidad y precio

Ofrecer productos de fácil accesibilidad X

Conserva la fidelidad de los clientes a trávez de


X X
productos de calidad.
Publicidad
Desarrollar medios de promoción y publicidad X X X X
para la empresa

Fomentar a los clientes el deseo de adquirir


X X
calzado nacional de excelente calidad

Rediseñar Pagina Web de la empresa X X X


Punto de venta
Incorporar nuevos puntos de ventas estrategicos
X X X X
como centros comerciales para llegar a nuevos
clientes

Source: Authors

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4.7. Strategic map

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MISSION: “To provide comfortable, healthy and fashionable shoes to the customer, offering an extraordinary shopping experience and generating benefits for the
entire community” (Buestán, 2015)
VISION: “To be a leader in the market, through professional administration that allows sustained and orderly growth” (Buestán, 2015)

F
I
N
A Increase sales by 6%
N
C
I
A
L

C
U
S Maintain customer loyalty Establish competitive prices
T through quality products.
O
in the market
M
E
R
S

P
R Determine an indirect selective
O Innovate in the design distribution channel that allows Spread the product through
C
of each line of footwear. you to offer the product at Analyze market conditions
A mass media.
N strategic points in your target
D

D
E
S Train staff in different areas of the company
C
R
I
P
70
71

5.1. MARKETING COMPONENTS

5.2. PRODUCT
"The product is a set of attributes that the consumer considers a certain good to have to satisfy his or
her needs or desires. “ (Bonta & Farber, pág. 37)

The Buestan company currently manufactures high-quality footwear, which lends itself to the
construction of models through various components manually, which is a distinctive characteristic of
the production cycle.

5.2.1. Classification

The Buestan company is dedicated to producing footwear for children, women and men, these
products being divided into:

BOARD

PRODUCT GUYS
LINES
CHILDREN  School
 Casual
 Sports
 Buestan
 Kroks
LADY  FLAT
 Xchange
GENTLEMAN  Schoolboy
 Buestan Men's Gala
 Moccasin
 Casual
 Outdoors
 Sandals
 Industrial Security
 Military Footwear
 School
Prepared by the authors, Buestan source
5.2.2. Product Attributes
One of the important attributes of the products of the Buestan Ldta company is due to the quality of the
manufacturing processes that have high technology, which help the faster production of all types of
footwear, on the other hand the leather that is used It is of high quality and resistance, demonstrating

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the quality of the manufactured product, thus allowing us to give a total guarantee of one year since the
manufacturing processes and raw materials have a use time of approximately one year.

BOARD

PRODUCT ATTRIBUTES

ATTRIBUTES DESCRIPTION
PRICE The prices of each category of footwear
range from 40 to 90 dollars.
BRAND The Buestan brand is very recognized in
Ecuador since it has been in the market
for more than 50 years and is recognized
for the quality of the products.
PACKING The model number and shoe number are
printed and stored in cardboard boxes of
different shapes, which will be red, with
the name of the brand and the product at
the top.
DESIGN There is a variety of designs, whether
they are made of leather, cuerina, in
models such as causal, sports and
industrial.
PRODUCT GUARANTEE The footwear has a one-year warranty
due to the quality material with which it
is made.
COLOR There are a variety of colors according to
the model and presentation of each shoe.
LABEL Through its characteristic, it aims to
generate identification and security for
the Buestan brand.
Prepared by the authors, Buestan source
5.2.3. Product strategies

BOARD

STRATEGY TACTIC

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Innovate in the design of each line of footwear. Analyze current trends in different footwear
lines.

Prepared by the authors, source


5.3. PRICE
5.3.1. METHODOLOGY FOR PRICE SETTING CORRECT
The Buestan company for pricing footwear is based on the cost pricing method, since to establish
prices the fixed and variable costs of each product are necessary.

The cost-based pricing method consists of adding a profit margin to the total unit cost of the product,
that is:

Costos fijos
Costo total unitario=Costo variable+
Unidades producidas

To the total unit cost thus obtained, the profit margin that the company wishes to generate is added:

Precio de venta ( PV )=Costostotales+ Margen de Contribucion

This methodology is carried out in order for the Buestan company to obtain an average of products,
however it is necessary to be clear about the production costs and the percentage of profit, since it is a
factor that affects the income and obligations of the company.

5.3.2. Pricing Strategies


STRATEGY TACTIC
Establish competitive prices in the market Analyze the prices of the competition with
products similar to ours.

5.4. Distribution channels


5.4.1. Distribution channel structure
For the distribution of Buestan products, it will be carried out in the following selective way, that is,
implementing the footwear in certain points of sale so that customers can access it better.

The type of channel is indirect, that is, through retailers who bring the final product to consumers.

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5.4.2. Distribution strategies


STRATEGY TACTIC
Select potential distributors

Determine an indirect selective distribution


channel that allows you to offer the product at
Establish new routes focused on retail sales
strategic points in your target market.
locations.

5.5. Advertising
STRATEGY TACTIC
Improve the design of the website

Spread the product through mass media.


Design of advertising space on social networks

5.5. Sale promotion


5.5.1. Sales promotion management
To carry out the sales promotion, direct marketing will be implemented since there will be direct
contact with the potential consumer.
Sales promotion is a promotion mix tool that is used to support advertising and personal sales; in
such a way that the communication mix is much more effective.
5.5.2. Promotion objectives and strategies

STRATEGY TACTIC
Establish discounts on seasonal dates such as:
start of class, Christmas, Mother's Day, among
Promote product sales through coupons. others.

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