MARKETING PLAN FOR

M S
agic
SUBMITTED TO:PROF. HEMANT PURANDHARE

hoes

Footwears pvt. Ltd.

SUBMITTED BY:PRASHANT AGARWAL PRERANA PRIYADARSHI 06BS2349 06BS2407

PUNEET SHARMA
RABI NARAYAN SAHU RAVI CHANGLE RISHABH GANDHI

06BS2480
06BS2537 06BS2711 06BS2761

Product concept SHOES THAT MAGIC

During the school re-opening season, parents spend huge amount of money for purchasing school bags, Uniforms, school shoe etc. When it comes to school shoes, parents need to make purchases every year as the kids grow fast at this stage. Studies have proved that a childs feet grow at an average rate of half an inch every year from 3yrs to 9 yrs of age. Our company aims at bringing relief to frustrated parents who want to avoid buying their children countless pairs of new shoes

GROWS WITH

Presenting a solution to ur problem now.

Strategic Business Planning

Competitive Analysis

Customer Analysis

What? Who? Where? When? How?

Product Price Place Promotion

Market Summary SWOT Competitor

Stages of the New Product Development Process

Idea generation

Idea screening

Concept Development & Testing

Marketing Strategy Development

Test Marketing

Product Development

Business Analysis

Idea generation Idea screening

Concept Development Marketing Strategy

Idea generation
Idea 1: ecoWUD furniture

Business Analysis Product Development

Test Marketing

Idea 2:

Flavored Mineral Water

Idea 3:

Web Printing on Shirts

Idea 4:

Stretchable Shoes

Idea generation Idea screening

Concept Development Marketing Strategy

Idea:1 ecoWUD

Business Analysis Product Development

Test Marketing

Brief: ecoWUD is an environment friendly and a superior alternative to wood, concrete and sometimes even steel; made from a specific plastic waste. Reason for considerations: Alternative to wood and had advantages over wood like moisture and insect resistant, no need to paint, etc. Reasons for rejection: Difficulty in getting the specific plastic waste in India thus increasing the raw material cost to very high levels.

Idea generation Idea screening

Concept Development Marketing Strategy

Idea:2 flavored mineral water

To launch in the market a flavored mineral water.

Business Analysis Product Development

Test Marketing

Idea strength:
flavored

Mineral water

TASTE

SAFE

1.)Thus the aim is to provide 2 in 1 utility to the customer 2.) Safety questions on soft drink leaders like Coke and Pepsi

Idea limitations
1.) confused positioning- whether mineral water or a soft drink 2.) rigid taste and preference of the buyers 3.) high-tech machines required which makes it a costly venture 4.) highly competitive market

Idea generation Idea screening

Concept Development Marketing Strategy

Idea:3 WEB Printing on T-Shirts

Brief:
A person can design his own t-shirt on the website on the creative design software and order the t-shirt online which will be delivered at his home.

Business Analysis Product Development

Test Marketing

Reasons for consideration:

For the young generation so as to give them the freedom to show whatever they want on their t-shirts. This idea will appeal the young generation.

Reason for rejection: Internet shopping still not prevalent in India. Thus, a very small market base. High printing cost makes our price high and thus can be targeted at upper middle class or higher class and not for masses.

Idea generation Idea screening

Concept Development Marketing Strategy

Idea:4

Stretchable Shoes
Idea

Business Analysis Product Development

Test Marketing

To make shoes with greater flexibility and more stretchable

Idea generation Idea screening

Concept Development Marketing Strategy

Decision tree3 step selection

Best Idea Screening

Business Analysis Product Development

Test Marketing

Eco-friendly furniture

Flavored mineral water Flavored mineral water

Web printing On T-Shirts

Stretchable shoes Stretchable shoes Stretchable shoes

In these three step of screening the best idea:

1.) the idea1 and idea3 were eliminated in the screening stage 2.) idea2 and idea4 were compared and the best Of the two got selected. Idea2 got eliminated in the concept development stage 3.) idea4 was screened through and the idea is Moved forward for concept building.

selected

Idea generation Idea screening

Concept Development Marketing Strategy

Market share for all ages

Business Analysis Product Development

Test Marketing

Less competition Highly unorganized

kids teenagers

Market share is smallest But greatest opportunity

Adult females Large competition Foreign players More organized Adult males Largest market share of 45% But less opportunity

Idea generation Idea screening

Concept Development Marketing Strategy

Where to position in footwear market?

School shoes Have a constantly increasing demand and low on competition due to less organized fragmented market

Business Analysis Product Development

Test Marketing

High demand

Sports shoes

slippers

low competition
Party shoes

High competition

low demand

Idea generation Idea screening

Concept Development Marketing Strategy

Our position in kids school shoe market

Business Analysis Product Development

Test Marketing

High Price & style

Bata

liberty

Our product

low durability

High durability

Low quality Cheap products by unorganized players

low Price & style

Competitive Analysis
MARKET SUMMARY SWOT ANALYSIS COMPETETIVE STRATEGY

MARKET SUMMARY
Industry overview * India ranks second among the footwear. * 75% of the market is unorganized. * The industry size is estimated at Rs 70 bn in value terms and 620 mn in volume terms. * The industry has been growing at around 10-12% per annum. * The domestic market is highly price sensitive with the popular segment. 1. Price from Rs 100 to Rs 500 68% share. 2. Price from Rs 500 to Rs 1000 28% share. 3. Price from Rs 1000 and above 4% share. Industry projections *The rate of growth has been decreasing for the past 10 years. *A growth rate of 8-10% is expected for next 2-3 years.

Competitive Analysis
MARKET SUMMARY SWOT ANALYSIS COMPETETIVE STRATEGY

SWOT ANALYSIS
STRENGTHS
*Providing innovative product to the customer *Cheap availability of raw material at our factory sites *Durability, longetivity *Promotional strategies *Affordable prices

WEAKNESS
*New entrant in the business *Inexperienced management *Limited finance

OPPORTUNITIES
*Untapped marked *Unorganised rural market *Evergreen market *First mover advantage

THREATS
*Declining growth rate in shoe industry *Adaptability by the Indian people

Competitive Analysis
MARKET SUMMARY SWOT ANALYSIS

PORTERS FIVE FORCES MODEL

New Market Entrants

COMPETETIVE STRATEGY

Easy entry and easy exit incumbents resistance Target schools and magic shows in rural areas

Supplier Power
Large no of suppliers Cheap raw material Cheap labour

Competitive Rivalry Unorganised market Major player-Bata and Liberty 8-10% growth projection. More opportunity in kid's footwear

Buyer Power Vast and diverse potential customer base. Warranty of 2 years Main target school children.

Substitute Unbranded shoes of similar price Branded shoes of higher price

Customer Analysis
WHAT? WHO? WHERE? WHEN? HOW?

PRODUCT
Our goals are: 1) To introduce a school shoe which can be expanded up to 2 inches from the initial size 2) To facilitate value for money to the price sensitive customer.

Customer Analysis
WHAT? WHO? WHERE? WHEN? HOW?

PRODUCT DETAILS
Design description:
The first part of the shoe sole consists of groove that is attached to it at the time of molding. This part is fixed. The other part of the shoe sole consist of the same grove but it is movable along with the sole. Initially both the groove sits together perfectly so that there is no motion. But when the button is pressed the groove in the bottom sole is pushed from its initial position farther from the top soles groove making it possible to slide the bottom sole.

Marketing Mix:
Product: Initially the product will be launched for two age groups: 5 yrs to 8 yrs (Segment A) 9yrs to 12yrs(Segment B) Magic shoe will be available in three colors; black, brown and white. Less variation in shoes for boys and girls.

Customer Analysis
WHAT? WHO? WHERE? WHEN? HOW?

MARKET SEGMENTATION

Niche marketing

Customer Analysis
WHAT? WHO? WHERE? WHEN? HOW?

MARKET SEGMENTATION
Single segment concentration
We are concentrating Corley on the kid segment of age group 5-12. Focusing mainly on the school going children. So we are following single product- single market strategy.

P1 M1

P2

P3

M2

M3

Customer Analysis
WHAT? WHO? WHERE? WHEN? HOW?

MARKET SEGMENTATION
Segmentation
* The market is segmented mainly on the basis of price.
* Users are children belonging to the age group of 5-12 years. Kids are influencers but parents are the final decision maker. * MS footwear would like to create a segment for its new product Magic shoe, i.e. parents who would give more importance to the qualities like durability and value for money.

Customer Analysis
WHAT? WHO? WHERE? WHEN? HOW?

SEGMENTATION AND TARGETING

Segment attractiveness: All the segments are attractive since the markets for school shoes are growing with even the people belonging to the lower class of the society trying to send their wards to good convent and public schools, which demand shoes. Magic shoe will have to face intense competition in all segments.

Segment Positioning: For each segment we need to have a value proposition and positioning strategy based on the segment characteristics. Magic shoe will be positioned as a high quality durable product which provides more value for money and frees the parents from the hassles of buying new school shoes every year.
Target Market: On the basis of economic conditions, our product will target the Lower class, Lower middle class and Middle class.

POSITIONING STRATEGY
Customer Analysis
WHAT?

PRODUCT

WHO?
WHERE? WHEN? HOW?

Magic shoe Target customers Price conscious middle class parents. Point of difference -unique design Expandable up to 2 inches, Durability, good quality, More value for money.

BENEFIT

POWER OF NAME

The shoe with grows with your kid, providing more value for your money

VALUE ADDED

We will try to grab an unoccupied position in the minds of the consumers by putting the concept of expandable shoes strongly into their minds.

OUTLET SETUP
Customer Analysis
WHAT?

WHO?
WHERE? WHEN? HOW?

Our marketing department is responsible for the distribution and sales of the shoes. We will have 6 exclusive retail outlets present in Delhi, Agra, Kanpur, Lucknow, Patna and Kolkata being close to manufacturing setup . We will have a network of distributors who supply our products to various local retailers,through out the nation.

LAUNCHING STRATEGIES
Customer Analysis
WHAT? WHO? WHERE? WHEN? HOW?

LAUNCH TIMING:-

We will launch our product in the first week of April, so as to make optimum use of the school reopening season. We will start campaign for our product from the month last week of March. Since we are the pioneers in the area of expandable shoes, early users will recall our brand name if the products satisfies them.

PRICING STRATEGIES:The pricing for the new product will be done separately for the two sub-segments namely: Price for segment A (Kids of 5-8 years) and Price for segment B (kids of 9-12 years) A SEGMENT PRICE Rs. 250 Rs. 300 B

Product pricing strategy

MARGIN PRICING Pricing methods available COMPETETIVE PRICING

Markup pricing Target return pricing

1.Going-rate pricing

We have positioned our prices in between the prices of both the organized and the Unorganized players by adopting a PERCEIVED-VALUE PRICING method believing A positive buyers image of our products Performance, warranty quality, durability. We have kept our margins intact with such a competitive pricing.

Unorganized players price: Rs175-225

Our price: Rs.250-300

Organized players like BATA, LIBERTY etc price: Rs275-350

PROMOTIONAL STRATEGY
Customer Analysis
WHAT? WHO? WHERE? WHEN? HOW?

Promotion will be based on 2 Segments * Rural areas * Urban areas And further promotion will be divided into two phases: FIRST PHASE: Advertising: in major newspapers, kids magazines, comics and television networks. *Suitable media will be selected after considering the reach, frequency and impact parameters. *Advertisements will be targeted at children and middleclass parents. *To attract children, the tagline of the shoe that grows with you and the expanding techniques will be highlighted. *To attract parents the more value for money aspect, durability, comfort and the freedom from the hassles of purchasing shoes for kids every year will be highlighted

PROMOTIONAL STRATEGY
Customer Analysis
WHAT? WHO? WHERE? WHEN? HOW?

Advertisement Description: A child will be portrayed in different ages 5-8-12 and further the shoe pair will remain same for the age 5-8 and 8-12 justifying our tagline.. Consumer promotion tools a) Coupons Discount coupons will be distributed in some schools b) Price discounts will be given for purchase of more than 2 pairs. c) Warranty A two-year warranty will be offered. Trade Promotion Tools Advertising and display allowances will be given for selected outlets Sales-Force-Promotion tools a) Sales Contests dealers who attain considerable increase in sales during a period as stated by the company will be offered gifts like clocks, mobile phones, watches and time pieces.

PROMOTIONAL STRATEGY
Customer Analysis
WHAT? WHO? WHERE? WHEN? HOW?

URBAN AREAS:
Non- Uniformity seen in the school uniforms with the lack of same school shoes, is the major factor that will contribute to our promotion in the urban areas. Offers will be made to various schools for bulk deals with the option of pre-embossed school name or logo on the shoes.

PUSH STRATEGY
the communications effort is directed towards members of the distribution channel and also directly to the schools.
Retailer and school

producer

distributor

customer

PROMOTIONAL STRATEGY
Customer Analysis
WHAT? WHO? WHERE? WHEN? HOW?

RURAL AREAS:
*Magic Shows will be conducted wherein we will promote our MAGIC SHOES. *Social awareness programmes will be sponsored whereby our shoe brand will be showcased. *During the sports event of various schools, free samples will be distributed to the performers.

Pull Strategy

the communications effort is directed towards the end customer

producer

distributor

retailer

customer

Promotion continued
Customer Analysis
WHAT? WHO? WHERE? WHEN? HOW?

SECOND

After the successful completion of one year first phase promotion, this phase will be aimed at nation wide expansion facilitated by a tie up with PARAGON foot wears.

PHASE:

Tie up will be based on: Diversification for Paragon footwears as Paragon business limited to chappal. The distribution network of Paragon will facilitate our expansion Increased sources of finance due to tie-up