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Marketing Planning For A Shoe Company

Essay by 24  •  December 18, 2010  •  4,197 Words (17 Pages)  •  1,436 Views

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Contents

Introduction 3

Objectives 3

Ansoff Matrix 4

Assumptions/Barrier to entry 5

Porters five forces model 6

Marketing Mix 7

Key problems, which may make implementation, plan difficult 10

Conclusion/Recommendation 11

Bibliography 12

Appendices 14

1

Introduction

Southern Shoe Company was a manufacturer of ladies wide-fitting, non-fashionable, plastic shoes in July 1991. Their recent sales had fluctuated quite aggressively in a market that had demonstrated a very high level of bankruptcies amongst manufacturers. The company did not really know what marketing was, or how it could be introduced.

This report will look at 3 marketing objectives covering the period 2001 - 2004 to help Southern Shoe Company understand how it can progress in the future. Each proposed objective would be justified through an analysis of the company and also by applying an appropriate theory. The report will then focus on one of the marketing objectives outlining in detail a tactical plan.

Finally the report will conclude looking at some key issues or problems that might make implementation plan difficult.

Objectives

After examining the Southern Shoe Company's report the following objectives have been proposed:

1. To achieve a 10% increase in sales in one year.

3. To gain 25% of the market for shoes by September 2004.

1. 'To achieve a 10% increase in sales in one year'

This objective was proposed having analysed the following table:

The table in Fig 1 (see appendix) shows the sales and profit for the year 1996-200

As you can see from the table the profits have declined from 1996 up until 2000, therefore there is a need for Southern Shoe Company to increase their sales.

2. 'To increase 60% brand awareness by 2004'

This objective is specific to the market response of brand awareness. Brand awareness is a function of advertising media; therefore, this objective is specific to the marketing mix element of advertising media.

Southern Shoe Company was not accepted in the trade as manufacturers of fashion shoes and had a very staid image with the trade. The company tended to miss out on the younger sector of the wide fitting market. There was an increasing trend towards fashion, Southern Shoe Company has the ability to produce a wide variety of styles and fashion but do not so.

Southern Shoes Company's sales of branded products were declining, and also there was no advertising done by the company.

From this information it is evident that Southern Shoe Company has no image and a very poor advertising or even none. Therefore it is felt that the above proposed objective is essential.

3. 'To gain 25% of the market for woman's wide fitted plastic shoes by September 2004'

This objective was proposed having analysed the following table:

Southern Shoe Company's sales were going against the trends in the market (see Fig 2).

The company was rising in a falling market and falling in a rising market compared to the national markets shares. The company should focus on marketing in the channels where they are falling.

There was no published statistics and Southern Shoe Company had no idea how big the market was or where they stood in the market therefore an estimate was made according to their recent results. From the total 13.52 million pairs of woman's plastic shoes in 2000 the market size for woman's total wide fitting shoes was 2.45 million pairs.

Estimates were then made for market growth up to 2004 as shown in the table in Fig 3.

Southern Shoe Company were in a specialist market with few competitors and were estimated to hold about 18% of the total market for woman's wide fitting plastic shoes.

Ansoff's Matrix - Planning for Growth

Marketers who have objectives for growth use this theory. Ansoff's Matrix offers strategic choices to achieve the objectives. There are four main categories for selection. (See Fig 4)

The Ansoff Matrix is a tool that helps business decide their product and market growth strategy. Ansoff's product/market growth matrix suggests that a business attempts to grow depending on weather it markets new or existing products in new or existing markets. This theory could be looked at to see how Southern Shoe Company could achieve their objectives.

Market Penetration

Southern Shoe Company could focus on this option if they are to achieve their second objective 'To increase 60% brand awareness by 2004'. This is where the company markets their existing products to their existing customers. This could be done by promoting the product or reducing prices to increase sales. However, the product is not altered and they do not seek any new customers.

Market Development

The company markets their existing product range in a new market. This means that the product remains the same, but it is marketed to a new audience. Southern Shoe Company can achieve their first objective, which is to achieve a 10% increase in sales in one year by using the market development option.

Product

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