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MATRIX FOOTWEAR

1. Should Matrix foray into youth market / fashion accessories market?


By introducing a fresh product line, Matrix can enter the youth market. Because the current
size of the young individuals who buy premium goods by paying more is 12%, and the same
is increasing by 30%. At this growth pace, the segment will become about 20 percent of the
complete size of the industry, paying greater prices and yielding greater margins.
To attain a significant portion of the younger demographic, Matrix should distinguish the product
from the current v-f-m products.
2. What are the factors you should consider while making product / market decisions?
o The feasibility of using the current production line should be evaluated and the cost increase s
hould be kept under control due to the implementation of fresh product line. By sourcing the r
aw materials from the current sources, this can be accomplished.
o Proper inventory maintenance based on requirement.
o Initially, sales of the new product line could only be carried out in the premium shops and the
n the same same can be supervised.
o In premium shops, all sales individuals should be adequately trained to handle young clients a
nd sell high-value products.
3. How does product policy impact the value proposition of Matrix store?
Matrix's current value proposition is v-f-m products. If the fresh product line with a premium price
tag is implemented in the same shops (Family stores and Bazaar shops), confusion will be created
in the perception of the brand for the customer. In such case, Matrix will experience a scenario
comparable to that of 1989.
4. How can Matrix diversify into unrelated areas like fashion accessories without repeating
the mistakes of the past?
Matrix should consider the stretching of the product line"UpMarket Stretch" as it forays into the
premium segment from a v-f-m segment. The following methods might be,
o A fresh product name /brand to be created– so that current market equity is not impacted.
o Creating attractive youth market and ensuring that it does not coincide with other sections.
o Delivering the quality improvements of the new products without affecting the older products.