Section A Group 16

TONY SEBASTIAN (PGP14/056)

VARUN MURALI (PGP14/057)
VIDHI SINGH (PGP14/058)
VINAY PRABHU (PGP14/059)
VISHAL SHITUT (PGP14/060)
Matrix Footwear – Situational Analysis
Perceptible decline in market share
Premium segment registering annual growth rates of
30% in which Matrix has limited presence
Burgeoning youth population which is aspirational in
nature and has the means to satisfy those aspirations
Backdrop of a failure when foray into premium
market was attempted a decade earlier
Employees who were part of the whole failure still
around in Matrix
Greater margins and hence profit proposition in the
premium market
Matrix Footwear – Problem
Statement
Should Matrix stick to the
economy segment or venture
towards the premium segment of
the footwear market?
Matrix Footwear –List of Alternatives
Stay a value-for-money player; remember lessons
from the past and maintain existing strategy with
regard to placement in the premium segment
Recognize the wave; make an entry into the premium
segment in a significant way and shed the value for
money offering over a period of time
Maintain your core competency as an economy player
but at the same time have a parallel premium offering
in order to grab a share of the market pie
Matrix Footwear – Criteria of
Evaluation
1. Firstly, arrest what seems to be a market share
decline and then grow your market share
2. Profits
3. Long-term viability as a brand
4. Market leader position in footwear
5. Facilitate diversification into other products
6. Brand Consistency
Matrix Footwear- Evaluation of
Options
Maintain Status Quo – Maintains brand consistency but
could lead to drastic decline in market share with time
because of changing customer preferences . Would
reinforce the image of Matrix being an economy brand, a
positioning which could impact scalability with time
Become a premium player and shed v-f-m offering – Brand
USP based around being an economy player and such an
approach could lead to erosion of market share in totality
thus forcing Matrix out. High scope for profits if it works
out but need to start from scratch even though they have
years of experience in the industry
Matrix Footwear- Evaluation of
Options (Contd.)
Maintain position as an economy player but chain off
a separate premium offering – Maintains existing
market share but helps dip into the premium market
segment with immense growth potential. Enables
leverage of presence in the industry and might lead to
increase in margins besides presence in the entire
footwear space
Matrix Footwear - Recommendation
Maintain position as an economy player but chain off
a separate premium offering under a different brand
name
Matrix Footwear – Plan of Action
Set up a new line of stores to promote premium
offering
Train salespeople and have specific strategy catered
to the premium segment so as not have another case
of a diversification going wrong
Price competitively with other premium brands so
that it is consistent with the overall brand image of
being a value for product provider
Dedicated product and marketing personnel with
experience in the premium footwear segment
Matrix footwear- Contingency
Continue focus on the economy segment so as to
enable clean exit from the premium market offering
in case foray into the premium market turns out to be
unsuccessful again
Expand economy offering in newly created stores so
as to minimize capital loss