Introduction

Case studies consists of research strategies and empirical inquiries that investigates a

phenomenon within its real-life context. They are based on an in-depth investigation of a single
individual, group or event to explore the causes of underlying principles. This case study has
thoroughly gone through the criterias required and tried recommending strategies and solutions
that can assist the increase of market share of a certain type of boots of a footwear brand,
Duraflex.

Answer -1)

We’ll be using the formula below to find out the size of the work boot market:

(Average boots price) x (% of population that bought the pair of boots) x (total population
of the segment) x (pairs bought last year)

i) Average number of Boots purchased per year

Work boots:
Footnote 2 states that blue collar workers purchase 2 pairs on average per year,
whereas white collar and students buy 1 , considering they don’t use them on a
regular basis/roughly.

Casual Boots:
Casuals can be considered primarily for weekends or light wear, for which Exhibit 1
states that they’re bought 1 pair on average per year by the 3 segments.

ii) Average boots price

Work Boots:
According to Exhibit 4, the retail price is charged at 170 EUR, from which we can
take an assumption that their average price will be somewhere around 150 EUR

Casual Boots:
According to Exhibit 4, the retail price is charged at 120 EUR, from which we can
take an assumption that their average price will be somewhere around 100 EUR

Now, with the assumed figures, we can calculate further:

Size of the work boot market in Euros

Population % buying Number of Price Per Segment

work boots pairs bought pair (EUR) Size
per year

Blue Collar 11.0 M 60% 2 150 1980 MM

White Collar 12.0 M 25% 1 150 450 MM
Student 7.0 M 15% 1 150 158 MM

Total ~2588 MN

Size of the casual boot market in Euros

Population % buying Number of Price Per Segment

work boots pairs bought pair (EUR) Size
per year

Blue Collar 11.0 M 20% 1 100 220 MM

White Collar 12.0 M 35% 1 100 420 MM
Student 7.0 M 55% 1 100 385 MM

Total ~1025 MN

Slide 2 states that Duraflex has 16% o the Work boots market and 40% of the casual. Therefore
with these figures, we can find out their Revenues:

- Duraflex’s revenue from the work boot market = 16% x 2,588 MM = 414 MM
- Duraflex’s revenue from the casual boot market = 40% x 1,025 MM = 410 MM

Final Answer

It can be concluded that Duraflex generates most of its revenue from the work boot market. The
size of the work boot market is ~€2.6 billion, and the casual boot market is ~€1.0 billion large.
Depending on the assumptions taken, the original figures might slightly deviate from the answers
found but the two should be relatively close enough.
Answer – 3)

The company can either:

1. Focus on increasing its work boots activities,
Reasons:

 The work boot market represents almost 40% of Duraflex’s business (from question 1),
thus it would be difficult as well as impractical to avoid such an profitable situation like
this.
 While Duraflex does have greater market share in the casual boot market, the case states
that the casual boot market is smaller in size than the work boot market as well as work
boot market has lower margins (15% vs. 21%) from casual boots (Exhibit 4), which
illustrates fewer opportunities for share growth. Therefore Duraflex can invest on the
work boots market to further increase chances for market growth in the future
 Considering that a new line is to be introduced by Badger, new growth potential in the
market might become significant which Duraflex may also want to capitalise on
efficiently in order to survive in the competition
 Building a stronger image among blue collar workers may entice them to try other
Duraflex footwear products through extensive advertisings on mediums the blue collar
workers would be best convinced e.g radio, TV etc
Results:

 Duraflex may be face pressure from Badger exerting influence on retailers in this channel
to prefer their boots over Duraflex
 With proper marketing, Duraflex may be able to build the “Comfort” and “Quality /
Durability” perception among blue collar workers and thus gain more market share over
the time
 Increasing the proportion of costs allocated to materials and labour is likely to potentially
reduce the company margin
 There may be unique / niche positionings for Duraflex such as introducing cap toe boots,
Chelsea boots etc

2. Emphasize on producing casual boots,

Reasons:
 Duraflex has 40% market share now, which shows them in a somewhat strong
position, which the company can utilize to produce casual boots
 Casual Boots represents almost 40% of Duraflex’s business (from question 1),
making it very difficult to profitably ignore this market
  Focusing additional resources on the work boot market would risk casual boot
buyers (white collar workers and students), causing those buyers to switch to
other brands competing in the market
 “Style” is the top BPC for Duraflex (from Exhibit 3). From the given statistics on
Badger and Steeler, we can assume that this is an insignificant criteria for the
work boot market. By focusing on the casual boot market, Duraflex can allocate
their additional resources to keep up with styles that would appeal better to this
target market

Results:

 There is very less chance to have a strong competitor reaction, since Duraflex’s position
in the market is already  dominant
 Duraflex will not need to enter new distribution channels, therefore they will not have to
incur additional costs and allocate what they already have to keep up with the latest
designs of casual boots
 Candidate should discuss a strategy for work boot market – either winding down,
maintenance etc. and implications of this

Recommendation
In our opinion and retrospect, Duraflex should introduce a sub-brand. If not, they should increase
the promotion of their brand by focusing on blue collar workers through several ways :

 On-site promotions, hiring creative copywriters for unique content creation

 Advertising in industry publications, which the blue collar workers would usually
read/keep an eye out for their work-related reasons
 Advertising in generic magazines
 Television ads during programmes that have a higher blue collar readership / viewership
e.g tv sitcoms portraying nuclear middle-class families etc