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MATRIX Footwear India

MATRIX Footwear India

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Published by Rahul Sharma

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Published by: Rahul Sharma on Sep 15, 2012
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05/13/2014

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MATRIX footwear India

The case of Brand positioning

V-F-M     Model Market Leader .17% market share Target Segment – growing Indian Middle Class Low Value High Volumes strategy Nothing Distinctive for Youth ( not the need of hour). .Some Case Facts – 1989 :  UTILITY Marketing – stress on functionality .

Change in Focus  LIFESTYLE Marketing – driven by fashion and style  Entered premium segment – focused more on fashion accessories rather than Footwear .

Premium segment amount only 10% of market.What went wrong  Market was not ready for premium segment  No market expertise to handle premium segment  Could not divorce from its V-F-M image  Dissonance in the minds of its main target segment- Middle Class  Operational problems – manufacturing process could not handle small batch-size  Inventory problems – alliances with transnational didn’t work.  Retailing problems – sales people for VFM model could not handle premium products . rather accounted to inventory problem.

 Also.  Profile of population in India is different from that of developed countries as the population is younger. Premium segment has higher margin and hence better profit proposition.Situational Analysis  Decline in Market share  Premium segment accounting for 12% of market but growing at rate of 30%.  Failure in past haunting the future strategies. .

Problem Statement  Should MATRIX venture into premium segment or stick to the Economy segment market . .

 Maintain the core competency as Economy player but at the same time make a Premium offering in parallel in order to grabs a share of the market. .Alternatives available  Stay a Value For Money Player  Go with the flow : Make an entry into the premium segment and loose VFM image over a period of time.

High scope for profits if it works out but need to start from scratch even though they . 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.Evaluation of Alternatives  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.

 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..Evaluation of Alternatives Contd…. Enables leverage of presence in the industry and might lead to increase in margins besides presence in the entire footwear space .

Recomendations  Maintain position as an economy player but chain off a separate premium offering under a different brand name .

.Plan of Action  Learn from past  Set up a new line of stores to promote the premium offering or Expand the current one under a new section.  Train salespeople and have specific strategy catering to premium segment  Dedicated product and marketing personnel for premium segment .

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