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Contents
ACKNOWLEDGEMENT .............................................................................................................................. 5

Executive Summary ................................................................................................................................. 6

G  ........................................................................................................................................ 7

Industry report .................................................................................................................................... 7

Our Product Description ...................................................................................................................... 8

Innovation ........................................................................................................................................... 9

Professional driver ........................................................................................................................... 9

Regular driver .................................................................................................................................. 9

Medicated driver (older) .................................................................................................................. 9

Pest Analysis .......................................................................................................................................... 10

Political .............................................................................................................................................. 11

Economic ........................................................................................................................................... 11

Social ................................................................................................................................................. 12

Technological ..................................................................................................................................... 13

Industry Analysis.................................................................................................................................... 14

Porters Model: ................................................................................................................................... 14

Buyers Bargaining Power: High....................................................................................................... 14

Suppliers Bargaining Power: Medium ............................................................................................. 14

Threat of Substitutes: low .............................................................................................................. 14

Threat of new Entrants: High ......................................................................................................... 15

Overall Rivalry: High ....................................................................................................................... 15

Competitor Analysis............................................................................................................................... 16

Dominant Force of the industry ............................................................................................................. 27

WHICH Force will become the most dominant? ..................................................................................... 27

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Concentration index: ............................................................................................................................. 28

Key Success Factors: .......................................................................................................................... 28

Gap Identification .................................................................................................................................. 29

SWOT analysis ....................................................................................................................................... 38

STP ........................................................................................................................................................ 31

Segmentation .................................................................................................................................... 31

Market size .................................................................................................................................... 31

Targeting ........................................................................................................................................... 32

Positioning......................................................................................................................................... 33

Growth potential ............................................................................................................................... 34

ù  ........................................................................................................................... 34


  ......................................................................................................................... 34

Marketing mix ....................................................................................................................................... 35

PRICING STRATEGY ............................................................................................................................ 35

Sale and distribution strategy: ........................................................................................................... 35

Advertising strategy & Promotional Strategies ................................................................................... 36

Positioning......................................................................................................................................... 36

Packaging .......................................................................................................................................... 37

Levels of packaging ........................................................................................................................ 37

Package life cycle ........................................................................................................................... 37

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CKNOWLEDGEMENT
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Professional driver
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Pest nalysis
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Political
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The political environment has not been very favorable for footwear industry. The instability in
prices of raw material such as chemicals and soles as well as high excise and import duties on
these is causing thoughtful problem for the industry. The political decisions about the energy
are affecting a lot the industry especially in the manufacturing capacity area.
Political environment has significant impacts on businesses in countries like Pakistan
where government is not stable. Changing governments normally leads to change in strategies
e.g. new tax system, spending on businesses. In these circumstances we need to be able to cop
with the continuously changing environment by making flexible strategies and contingency
plans.
In our case same roles apply. We need to watch environment carefully and keep margin
to deal with any change. According to news published in Jang on 13th November Currently PPP
government has not providing any relief to businessmen and it is even highly taxing them. Their
undercover policy to cut short electricity and gas supply in Punjab as compared to Sindh gives
us clue to use alternative source of energy for production. This also puts entrepreneur in our
country under enormous pressure because they had to survive in 24% inflation rate and scarce
supply of energy.

Economic
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The issue of inflation and de valuation of currency has been a main concern facing the industry.
Inflation, as compared to year 2009 of 20.3 has jumped to 13.6 in 2010 but so high then the
previous year͛s value of 2.9 %(2004). The foreign investment in the particular sector is very
slow. The availability of the raw material is not much difficult but there is need to exploit the
new resources to increase the growth rate of 1.5% to the attractive figures.
Economic condition of Pakistan is miserable. Inflation rate is 24% which adds on to expensive
raw material supply, higher transportation costs, and higher utilities bills and higher wage rates
etc. All these factors lead towards higher product costs which will lead to higher prices and
lower value for consumers. It also reduces the buying power of consumers.

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Loan rate is currently 14% which disheartens businesses to get loan as it makes this
option too risky. This is an indicator of suppressed business situation. Government is not even
giving any sort of subsides to any industry and even taxes are being applied on them. Pakistan͛s
exports for the last year were ½ to that of imports (financial times, august 23).foreign
investment is also going down. Moreover the EIU expects real GDP growth to slow noticeably in
2009 from 6% to4.1%, before slowly picking up again over the next 5 years. As a result, the
government fiscal deficit will narrow significantly after 2010, but it will remain at more than 5%
of GDP for the next 2 years. Government investment will be constrained, as a result.

Social
Population growthrate = 2%
The stander of living in Pakistan is increasing day by day people are very conscious about there
dressings and their looks with this comfort and style is also their demand to full fill the norms of
society. The society of Pakistan is dynamic and therefore ever-changing, and its patterns are
changing transforming from time to time. And media is also playing an important role in
changing the cultural values and have enormous impact on minds of pubic.
Social concerns are relatively more delicate to handle .our literacy rate among men
and female is 50.5% and 27.6% respectively which shows that awareness is increasing in
society. Population is growing at 1.7% which demands a creative solution to handle these huge
masses of people. CPI is growing at 13% which shows miserable picture of our society. Threat of
terrorism is too high. Lives are not safe due to which frustration and aggression is being
developing among people.
Recently flood has eroded millions of peoples life so businesses have social responsibility to
keep in mind those people and serve them by giving quality ,value and low price
products/services because the soul purpose of entrepreneur is to serve humanity by fulfilling
their needs and providing quality to life.
Another aspect is the diversity issue. Today masses are spread around cities in suburbs and in
nearby areas. Population is huge and scattered so entrepreneurs have an opportunity to get
profit from them as well as serve them. By getting proper knowledge of the demographic and
psychographic trends one can plan better strategies to ensure higher returns. p

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Technological
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It comes from research whether it is basic or applied. Businesses can improve almost in all fields
by doing research. Technology have numerous benefits .it can reduce costs by applying fewer
labor. It can improve quality. It can reduce error. It can produce efficiency. It can enhance
effectiveness. It can aid humans and lot more.
Automation can lead to productivity and efficiency both. Today businesses are getting
competitive advantage by applying technology. It can even help in making better decisions and
better awareness of the environment. Our total capacity of energy is 19574MW which demand
other innovative technologies that are fuel efficient to fill the gap.

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Gndustry nalysis

Porters Model:

Buyers Bargaining Power

Suppliers Bargaining Power

Threat of Substitutes

Threat of new Entrants

Overall Rivalry
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Buyers Bargaining Power: High


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HUSH PUPPGES
GNTRODUCTGON:
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COMPNYǯS LOGO
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4PǯS OF MRKETGNG

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urbanî  shoe is worn by those who approach life with intensity and passion. Sophisticated,
confident, knowledgeable and powerful, the urbanî  male demands quality craftsmanship
and incomparable leather quality for his shoes

As all the best dressed people will tell you, attention to detail can make all the difference when
it comes to sartorial success. urbanî  shoe is the ultimate finish on any ensemble, classically
designed and elegantly styled, the urbanî  shoe takes the man from indoor to outdoor.

  
trademark is considered one of the most powerful in the world and has 900
Licensees spread out though 140 countries. The urbanî  is  
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and consistent Marketing follow-up

  
trademark is considered one of the most powerful in the world and has 900
Licensees spread out though 140 countries. The urbanî  is  
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and consistent Marketing follow-up

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Price of shoes starts from Rs 1000 and above. They are expensive shoes durability and comfort.

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Urban sole have casual shoes variety. Company focus solely on fashion but works on
comfort.they have got limited models of shoes.

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Entitles to an exiting line-up of promotional offers and privileges that have been specially
designed to suit urban life style. Enjoy expressing sense of style through Urbansole range of
trendy shoes that are comfortable enough to wear every day.

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Have numerous outlets in local market. They make one or two big outlets in every city. These
big outlets contain their latest variety. Urbansole sells value to their customers through comfort
and casual style.

Servis Gndustries Limited:p

SIL is a public limited company listed on the stock exchanges of Pakistan. It has annual revenue
of USD 80 million. It is the largest manufacturer of footwear and tyres& tubes for two-wheelers,
and has been the largest exporter of footwear from Pakistan for the last 10 years.

The company employs more than 5,000 people in its facilities located in Gujarat and Muridke.
The company's products are exported primarily to Germany, Italy, France and UK.

£ision Statement

To be a market leader providing quality footwear, tyres& tubes and allied products.To strive for
excellence and global recognition by continuous improvement, innovation, dedication and
growth.

Mission Statement

To be a result oriented and profitable Company by consistently improving market share,


quality, diversity, availability, presentation, reliability and customer acceptance.

To emerge as a growth oriented concern ensuring optimum return and value addition to its
shareholders to ensure cost consciousness in decision-making and operations without
compromising the commitment to quality.

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To create an efficient resource management and conducive business environment. Evolving an


effective leadership by creating a highly professional and motivated management team fully
equipped to meet any challenge.

To keep abreast with modern technology and designs to optimize production and enhance
brand image to attain international recognition for the Company's products. To set up highly
ethical business standards and be a good corporate citizen, contributing towards the
development of the national economy and assisting charitable causes to adopt appropriate
safety rules and environment friendly policies.



Part of SC marketing strategy is based on location and distribution. SC is located in a trendy


malls and busy product markets that receive abundant walk-through traffic. This location costs
a premium and is not directly linked to the marketing budget as rent has been categorized
under general overhead.

The management believes in smart strategic moves, thus they are utilizing the network of Servis
mega stores. It has helped in reducing the distribution cost as well as the rental cost. Currently
there are 15 super market Servis stores where along with other brands soul collection is
displayed as a separate brand.They are focusing on differentiation strategy because the
marketing objective is to become quality leader

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Servis shoe pricing is designed to be competitive to the other fashion shoe retailers.

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Distribution is made through personal outlets of Servis shoe located in the town in different
parts.

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Location, targeted advertising on the localized cable network, magazines and Hoardings.
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PRGME NLGN
GNTRODUCTGON:

Prime Tanning Industries (Pvt) Ltd, established in 1989 with a mission to produce finest quality
leather. Prime is famous for making cow and buffalo leather for shoes, handbags and other
leather products. Prime is working with all the prestigious brands all over the world and has
offices all over Europe, China, India, Hong Kong and many other countries. Prime has a long
history behind it. Before 1989 it was known for Firdous Tannery. Firdous was the biggest
tannery all over Asia and at that time was exporting raw hide and wet blue leather. Now next
generation established its name in making complete finished Leather and they are one of the
biggest suppliers of finished leather all over Pakistan.

Prime has a shoe factory with a name 


  . It has a production capacity of
2000 pairs per day and exporting shoes all over America, Europe and many other countries. It
also has a big network in local market with many retail outlets, wholesale and working with
some big brands in local market.

TNNERY:

Prime Tannery has 16 acres of area equipped with all modern machines. It has the Capacity of
2 million sqft per month. Prime has measurement standards of all kind of products at 0%.
Quality Control standards in Prime are outstanding and has the system of checking quality at
every process

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Prime produces its different products in cow and buffalo leather from the material available in
domestic market. It also imports raw material from other countries, depending on customer͛s
requirement. Prime has big range of cow and buffalo articles like Analine, Milled, Nubuck, Pull
Up and Burnish articles available in any color and type required by the customer. End products
are shoes of various colors and designs. They mostly produce formal wear. Prime launch its
season with catalog twice a year for  and . Summer season mostly focus on colors
and fashion. Winter season usually focus on classic articles. 

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Charge high price fore its formal shoes.

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Prime Naalain don͛t advertise on electronic media. Basically company exports its high quality
shoes. Prime Naalain focuses on quality and robustness. Their brand has an image of long
lasting shoes with high quality and latest designs.

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Prime naalain has various outlets in local market but these outlets are located in posh areas
and this people with high income group can access it. There outlets have an elegant look. They
shine like crystal and have a look of a high quality brand shop.

EPCOT SHOES
GNTRODUCTGON: Epcot shoes were founded in 1945.
EPCOT Private Limited formerly known as (East Pakistan Chrome Tannery) is the largest
manufacturer and exporter of both of finished leather and leather shoes in Pakistan. The
company was originally founded by Mr. Muhammad Usman, Chairman of Ayesha group of
Industries in 1947. The founding purpose of the company was to export goat napa to the
American and European market under the brand name ͞EPCOT͟. In 1978 company established
its own dying unit. In 1985 an in house finishing department was organized thus laying the
foundation of a company. In 1992 the EPCOT set up a composite shoe manufacturing unit
targeted to the European market soon to dominate world market. Since 1947 the company has
grown 10 fold with sales touching 3 billion Pak Rupees and as a result has become the
undisputed market leader.

4PǯS OF MRKETGNG

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Company produces many high quality shoes. It also make shoes for Zara, Boss and many other
brands. Epcot shoes have classic look. They focus on style and quality.

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Pricing is designed to be competitive to the other fashion shoe retailers.

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Company advertises its shoes in the local and international market. Generally EPCOT shoes are
positioned as high quality formal wear shoes with high prices. This brand is for people of high
income group.

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Company outlets are mostly in upper class and middle class markets. Outlets are neat and clean
with trained staff. They give wide variety of formal wear and some casual shoes. Outlets are
bright and vibrant. 

ELEGNT SHOES
GNTRODUCTGON:
Company started its journey from Lahore and has serviced the world global footwear industry
for more than 15 years. It͛s one of the biggest exporters of leather shoes in Pakistan and has
been associated with the leather industry since 1948. Elegant (Pvt) Limited was established in
1994 to manufacture footwear for global market. Company has strived hard to develop R&D
department and continuously brought innovative products for their clients. Elegant shoes
mainly focus on quality and comfort Whole plan has been imported from Italy and Italy is
famous for its high quality shoes. Company export shoes and also play in local market

4PǯS OF MRKETGNG

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Company claims to have economic shoes and price of different ranges

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Company is involved in whole sale, retailing and exports of its shoes. Company has its own
outlets through out the country and also sells its products to other retailers. Outlets are formal
and subtle tones are used to provide comforting atmosphere. Staff is trained and wide range of
products could bee seen in any outlet.

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Company produces the finest shoes in the market. They use different materials for their shoes
and produce TPR, PU and PVC soles. They focus on compatibility and durability with latest
designs. They have both formal wear and casual wear shoes. 

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Company focuses on its exports and promotes its brand as quality conscious with comfort. They
claim that they only use pure leather in their product and don͛t compromise on qualityHigh
focus on quality and having quality check from various international companies has promoted
this brand as one of the best Pakistan͛s export brand.
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p
c   p pp

p
p

CPM:
p
  p    
   

p 
p 
p 
p
p

p 
p
ë p p p 0p 0p .0p .9p .0p p .p

p p p p
.9p
p .
p
p .
p
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 p
|   p  p p .9p . 5p
p .
p p .p

r  p
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p
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p .5p . /p

  p
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p
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p
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p

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p 5p
p 5.p
p /.9p
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p p

p
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p
c   p pp

p
p

Major Companies:
There is no any major competitor of our product in the industry but there are indirect
competitors like the casual wear industry making joggers which are not basically walking shoes
but the sport shoes

Dominant Force of the industry


p
pp* pppp *p p p6p*p p7 p6 p
p **pp p  p p p *.pp
p

WHGCH Force will become the most dominant?


p
ppp6p7pp*  ? pp  ;p p7 pp6pp7 pp
p?p p 3p7 p*p; ppp7*p pp p6pp*p
6*pp?p.p
p

Number of companies five years downs the road


p
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p7* ppp* ppp* p7*p pp p *.?p
ppppp*p&%p6 p7pp p .p

 p p  p
  p  p

 !

*p  p* pp<p3 p p*p p pp


7*p6p? *p* pppLpp3 .pp

 

p
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p
c   p pp

p
p

"!

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* p  p *p  p 7 p p 3 p p p *p   p 3 p
?+ .p

"#""!

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* p 7 pp3 p*p  pp p6;.pp

p6pp pp6;*p7pp7pp p p7  p*ppp.p

Concentration index:

pp8p p7 p

=pMp pMpp777pMp?ppMp)#pMp(p

=8p91
Cp

( 8p0 Cp

p7778p910 Cp

?p8p
Cp

*ppp777p*p( p ppp: Cpp6pppp;p pp


*p*p p *>p p .p

 p *>p p* *pp? pp;p.p"pp;ppp;p


6 p?pp*p*pp*.ppp7 p*p5 Cp;pp p
pppp+p;p7p6 p * pp?*p  p*p p p
7* .ppp7 p*p pp?*pp pp *p*pp;p
.p!pp p p *>p p? p .pp
p

p
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p
c   p pp

p
p

Key Success Factors:


p
Confectionary business largely depends on the effectiveness of distribution network: however,
following factors are found to be imperial implications for the success of business with the help
of five forces analysis. Strength and weakness tell us about the competitive edge of any
company. These can only be evaluated when we know about the KSFs of the industry.
For the footwear industry the main KSFs are
• successful product designs
• Supply chain is the core competency
• Inventory turn
• Fashionable designs.
• Efficient service
• Well-trained employees.
• Research & Development
• Out look of the outlets
• Customer Awareness
• Product availability
• Price and Quality

p
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p
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p
p

Gap Gdentification

Need Gap nalysis


GAP Analysis is all about what customer needs and how company is fulfilling that gap. So for
this reason we conducted research in the market to find that what customers are thinking
about the driving shoes. Largely, people were not satisfied with the regular shoes because of
higher prices of shoes; the comfortable shoes are expensive, all low quality available in the
market. So in order to meet customer requirements regarding walking shoes, we are launching
comfy shoes that will fill the gap that restricts the product to meet the requirements of
customers. And provide the quality walking shoes at reasonable cost.

How does our product/service fulfill this need?


Our product is serving customers because of different features in walking shoes as required by
the market. So our product is satisfying the requirement of our customer and satisfying them.
Secondly regarding our services, we are providing appropriate walking shoes with an ease of
environment according to the requirements of Customer. we are trying to give healthy
environment in which every customer will be given necessary information. The customers can
contact us through our telephone numbers and the calls will be free of cost. Hence our product
is designed to meet the requirements of the customers and it will provide value to them. 

"ustification of Gnnovation Based on Need Gap nalysis


Our basic focus is to give consumer quality, comfort, design and durability. Customers want to
buy quality at affordable price .So to meet the standards of customers; we are bringing
innovation in shoes with different features. So based on our analysis we are providing different
product in market for creating difference from other shoe sellers, As people are familiar with
tradition one type of shoes that are simple and far more expensive than our product. So we are
pretty much sure that our innovation will have worth and people will purchase it like hotcakes.
The gap which was created in a market segment consists of those people who have money to
buy walking shoes but do not purchase because of highly expensive and the increasing prices of
regular shoes or pads. Those people will also afford to buy our walking shoe.
p

p
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p
c   p pp

p
p

STP

Segmentation
(p p p7pppp ppp pppp pp.p
7 pp p ppp;p?  pp* ppp* pp.p
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6p;p* p*7 p * pp * pp.p#pp *p6 p
.p

p
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|
p 
p p pp? p

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ù  p  p3 p*pp p*p?*p .p

Market size
; p p 77 p p ?p
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p  p*p p p
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p  p 77 .p *p ?p :@p Cp 77> p 77p p p p p ?;p p p
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N
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Targeting
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> pp.#pp;p pp   p6ppp p&(p p*p? .p
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p *p

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&p* p Op Op Op Op

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p
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p
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p
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Positioning
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p p7   .p2pppp7*Pp
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Growth potential
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77 ?.

ù  
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Marketing mix
PRGCGNG STRTEGYA7 p;  Bp

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7 p*p ppp.p

p7ppp7 p7  p*.pp7p6 pp


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Sale and distribution strategy:´ 


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p
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dvertising strategy & Promotional Strategies


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Positioning
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p
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Packaging

pp* p pp7; p6 p!;p.pp pp* ?*p?6p6 pp
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Levels of packaging
p

Package life cycle

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SWOT analysis

Strengths
• Quality
• Design
• Innovation
• Comfort & durability
• Market leader

Weakness
• no sustainable competitive advantage
• lesser distribution points
• not well established brand name
• weak financial muscle
• less experience of management

Opportunities
• Can expand market if idea clicks
• Can entre in new product line
• Can explore new markets

Threats
• Substitutable products
• Retaliation
• Copy cats
• Strong competition

Brand name
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p
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p
p

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Distribution channel
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p 3 p 7 p p .p p p  p p *  ? p p p 7.p p p
6 p *p p p   ?  p p 7  p ?*p p +p  .p p p   p p p
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ë
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pp*  ? pp pp7*.p

Cheap raw material availability


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Technology
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Continuous innovation
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GFE/EFE Matrix
p
p
 p   p p    p  p    p p
  p
?  â p
1p p
Quality .
p 0p .0p
Design .
9p p .:p
Innovation .
9p p .:p
Comfort & durability .
p p .p
Market leaders .
p p .p
râ p p p
Low capital .
p
p .
p
Not well establish brand .
p p .p
No outlet .
p
p .
p
Inexperience management .
p p .p
p F
p p ¬ p

p
p
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 p  p
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 p  p
p

p
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p
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p
p

m m
p
p
 p   p p    p  p    p
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Ê  

â p
1p p
Can expand .
9p p .:p
New product line .
9p 0p .9p
New markets .
9p p .:p
 â p p p
Substitutable products .
p
p .
p
Retaliation .
p
p .
p
Copy cats .
9p
p .
9p
Strong competition .
9p p .0p
p
p p F.0p
p

p p¬p  p  p   p  p


!   p
p

p
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p
p