marketing strategy report

MARKETING PLAN

Group Report Submission

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Submitted to:

Prof. Bibhas Basumatary

Prof. Shushant kumar Nanda

Submitted by :

Sachin Chaudhary PGDM2-1528

Deepshikha Gupta PGDM2-1512

Sakshi Shekhawat PGDM2-1531

Shweta Pareek PGDM2-1540

Neha Kumari PGCM5-1506

Hansika Batla CMBA6-1510

QUOTATION

Acknowledgement

Before we get into thick of things, we would like to add a few words of

appreciation for the people who have been a part of this marketing plan right

from its inception. The writing of this marketing plan has been one of the

significant academic challenges. We have faced and without the support,

patience, and guidance of the people involved, this task would not have been

completed. It is to them we owe our deepest gratitude.

It gives us Immense pleasure in presenting this marketing plan report on

“Flateel” It has been our privilege to have a team of project guide who have

assisted us from the commencement of this project. The success of this project

is a result of sheer hard work, and determination put in by us with the help of

my project guide. We hereby take this opportunity to add a special note of

thanks for Prof. BIBHAS, who undertook to act as our mentor despite his

many other academic and professional commitments. His wisdom, knowledge,

and commitment to the highest standards inspired and motivated us. Without

his insight, support, and energy, this project wouldn’t have kick-started and

neither would have reached fruitfulness.

We also feel heartiest sense of obligation to our library staff members &

seniors, who helped us in collection of data & resource material & also in its

processing as well as in drafting manuscript. The project is dedicated to all

those people, who helped us while doing this project

Table of Content

TOPIC Page No.

1 Company Purpose 1

1.1 Product Solution 1

1.2 Mission 2

1.3 Vision 2

1.4 Value 2

1.5 Goals 2

2 Situation Analysis 4

2.1 External/macro environment analysis 4

2.2 Market Analysis 5

2.2.1 Industry size 5

2.2.2 Industry Trend 5

2.2.3 Industry Growth 6

2.2.4 PORTER Five Forces 7

2.3 Issue 8

2.4 SWOT Analysis 8

3 Marketing & Financial Objective 10

3.1 Marketing Objective 10

3.2 Sales Objective 11

3.3 Financial Forecast 12

3.4 Resource Requirement 12

4 Marketing Strategies 13

4.1 Segmentation 13

4.2 Targeting 13

4.3 GAAP analysis & differentiation 13

4.3.1 POP 14

4.3.2 POD 15

4.4 Positioning 15

4.4.1 Positioning Statement 15

5 Marketing Mix Tactics 16

5.1 Product 16

5.2 Price 17

5.3 Place 18

5.4 Promotion 18

6 Go-To Market Strategy 19

6.1 Sales & distribution 19

6.2 Production/Sourcing 19

6.3 Launch Plan 20

6.4 IMC Campaign 20

Caminar de stil is a women footwear company which was formed in November

2015.

The Company launch an innovative category of footwear which have benefit of both

heel & flat.

Currently women are facing problem of carrying two pair of Footwears at a same

point of time for their convenience. We have analyze the situation and came with a

unique product FlatEEl , a combination of flats & heels.

Flateel is a stylish heel which can be converted into flats whenever required. It is a

Unique business model that will bound to receive profit in the future as expected by

its designing & working team/staff.

The company with its innovation & vast knowledge on women’s need can quickly

gain impressive market share.

Profit will likely to be start generating from next year only as expected.

EXECUTIVE SUMMARY

1.1 Product Solution

“Women who lead double lives”

This shoe speaks CLASSINESS allowing you to wear heels and flats as preferred

anytime, anywhere and offers timeless, fashionable elegance with the plus point of

being a

time saver .

A High heel doesn’t just have to stop at the heel so our footwear travel up your fashion

forward legs not just into heels but flats as well.

The heel of the footwear is better than detachables , because you don’t have to detach

the heels from the rest of the part as our footwear has the ability of folding itself

inward giving a comfortable yet stylish pair of flats and you are ready to go.

A perfect combo especially for those who love handy and user friendly stuff. It is

basically BEST OF BOTH WORLDS- a single pair providing dual benefit (flats &

heels) & at the same time killing the struggle for carrying extra or more pair of

footwear.

It can be worn at a classic event or in college or office as flats and can be turned into

heels if you want to rush for a party from then & there. It strikes to maintain a perfect

balance & keep users even the minor need in mind.

Bold heels and sophisticated flats – it’s a perfect blend of both that women ever dreamt

of getting into a single pair.

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1 Company Purpose

1..2 Mission

TO REACH IN EVERY FEMALE’S WARDROBE

As an innovative footwear manufacturer, we must always adapt to the changing social,

economic and professional framework conditions.

With our mission statement, we determine

To FULFILL OUR CUSTOMER’S DREAMS, DESIRES AND EXPECTATIONS,

WITH MOTIVATED AND SATISFIED STAFF, GENERATING RESULTS WITH

SUSTAINABILITY CONSISTENTLY.

1.3 VISION

We created a new footwear segment, the segment of the dual benefit footwear, in

which dual benefit giving good feelings are of highest importance.

With our vision statement ,we determine

TO BE A BENCHMARK IN THE MARKET, WITH BRANDS THAT ARE ADMIRED

AND FAVORED IN OUR SECTORS

Who we are

We are an independent, successful, young and creative company, and we want to remain

so in the future.

What we strive after We strive in all areas for the highest possible quality. To reach thïs premium goal, we

build our products on excellent raw materials, high-technology combined with good

craftsmanship and constant quality control.

Our Staff

We build on the skills, motivation, self-responsible action and commitment of our

employees. We communicate openly and transparently. The collaboration is focused, fair

and borne out of mutual respect. A high standard produces the outstanding work

performance of our employees.

Our Partners

We work with competent and reliable partners. Our relationship with partners and the

public is marked by fairness and openness.

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1.4 Value

Love

Integrity

Respect

Accountability

Community

1.5 Goals

Our goal is to attain customer satisfaction

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2.1External/macro environment analysis

2.1.1 PESTEL ANALYSIS

PESTEL is a strategic tool. The acronym PESTEL stands for 6 factors which affect the

business.

Here are the factors that can affect our business:

POLITICAL: Change of government influences the company’s operations.

Increase in excise duty affects the company. So, they’re supposed to maintain a firm

standards of laws with consistency.

ECONOMICAL: Economic downturn is able to affect disposable income of middle

class. It is expected that around 25% of total households is capable of constituting 44% of

the total disposable income in 2015 & respective figures are expected to go up. But if it

doesn’t work as expected than company has to deal with rising labor and operational

costs with falling profitability.

Increasing unemployment rates in plagued economy affects sale which lead the company

to restructure its sales as well as marketing campaign.

Inflation adversely affected the raw material cost. The price of raw material increased

substantially during the inflation thereby increasing the cost of production hence

decreasing the revenue.

SOCIAL: Footwear market is experiencing change in consumer preferences for casual

and younger style due to media penetration & due to the increase in awareness about

international trends and lifestyle. Company needs to focus on them.

Other than that, company has to communicate its image as a brand offering innovative

product of the era so that people can sense a difference from the rest.

TECHNOLOGICAL: Company has already coped up with rapid technological

advancements & innovations benefiting both makers & wearers.

Company is using digitalized system & software to manipulate heel height & design, at

the same time allowing a number of different sizes to be formed at the same time as

shoppers are demanding looks as well as comfort.

2 Situation Analysis

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ENVIRONMENTAL: During chemical testing of footwear and components, harmful

and restricted chemicals should be avoided.

Material used in production should be environment friendly.

Other than that, Environmental rules and regulations must be followed.

LEGAL: Company needs to make sure that it follows certain laws which are general in

nature such as

Custom act, The Companies Act, Provision of the Contract Labor Act.

Apart from that company must ensure that regional rules and regulations does not get

violated.

Necessary approvals from local bodies should be in hand.

Other legal factors that can affect are:

•Introduction of stricter custom & trade regulations

•Licensing regulations related to the industry.

2.2 Market Analysis

2.2.1 Industry Size

In value terms, Indian footwear sector is estimated at Rs. 50,000 crore which includes

domestic market of Rs. 32,000 crore and export market of Rs.18,000 crore

SOURCE: ICRA Research Service

2.2.2 Industry Trends

Rise in disposable income, especially amongst the lower- and middle-income classes, is

still allowing consumers to increase their footwear purchases, mostly towards more

added-value products. The economic scenario also started showing positive signs of

recovery leading to consumers increasing spend. Therefore, there is a huge scope or

formalization and consolidation in the industry.

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2.2.3 Industry Growth

The market for women footwear is a strong, steady growing market. It is generally not

affected by economic downturns. Women seem to consume footwears regardless of the

economic climate. In a popular mini-series, a women's habit of buying was footwear

described as a release when they are feeling bad, a way to make them feel better, similar

to eating chocolate. While this stereotype might not be entirely accurate, women love

footwear especially heels and cannot seem to get enough.

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2.2.4 Porter’s Model

PORTER FIVE FORCES MODEL

Threats of New Entrants: is MODERATE in the Footwear industry because

although it may be easy for an individual to start a footwear industry,

but it is difficult to make footwear with bi- association technique plus it has to

comply with several government norms and regulations.

Bargaining Power of Buyer: is HIGH because the footwear is a kind of product

which can be negotiated by customers. Customers are price sensitive and availability

of substitutes in the market make bargaining power high.

Threats of Substitutes: is HIGH as the other brands substitute products are also

present

Bargaining power of Suppliers: is LOW as the suppliers of this business are leather

and plastic providers which is easily available in the market if one supplier raise the

price of material than we can shift to other supplier providing the material at

cheaper rates.

Degree of Rivalry: is HIGH . Bata, Cat walk and tanya heath paris are competitor.

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2. 3 Issue

Flateel is new in the market and it is important for it to create brand awareness among its

target market. It’s a critical issues for the company to make flateel known in the market

& more importantly let people know its immense usefulness.

2.4 SWOT Analysis

Strength

Product will provide dual comfort of heels and flats, you can convert these

heels into flats whenever required.

It will give you a touch over other normal heels as it has a fashion elegance

in it.

It is the unique product of its own kind, it can be a revolution in the

FOOTWEAR market.

It will provide value to its customer, if you buy it you will definitely

recommend it to the others also.

Weakness

Brand Awareness is not there as Product is new , so only a few would be aware of

the product and its brand name.

Falteel is an experiment in the footwear market so the company is going with a

limited distribution.

Opportunities

It can be a TRENDSETTER in the market.

Design and concept is very unique , it can easily attract anyone towards it.

No competition for a shorter period of time as the product is UNIQUE.

If the experiment of FLATEEL gets success it can easily overtake other footwear

brands.

Chances of market expansion.

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Threat

Failure – one of the biggest threat, what if customer does not like the product???

Covering cost – if FLATEEL does not live up to the expectations than its very

difficult to cover the cost also.

In the footwear market there are no barriers of entry and exit for the new products so

anyone can come with the similar design and that could affect Flateel market

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3 Marketing & Financing Objective

3.1 Marketing Objective

Increase repeat customers by 7% per quarter.

Decrease customer acquisition costs by 8% per year.

Build an effective pull campaign, bringing in new customers at an increased rate of 9%

per quarter.

3.2 Sales Forecast

Experience a double digit growth rate for the first three years.

Sales in targeted regions and to target customers keep on increasing.

Reach profitability by the end of year two.

3.3 Financial Forecast

DR. TRADING & PROFIT & LOSS ACCOUNT FOR THE YEAR ENDING 31st March,2016 CR.

Particular Amount Particular Amount

To Opening Stock 0.00 By Sales 3,747,500.00

To purchase 150,000.00

To Fuel and Electricity 20,000.00

To Carraige Inward 5,000.00

To Wages 40,000.00

To Gross Profit 3,554,500.00 By Closing Stock 22,000.00

3,769,500.00 3,769,500.00

To outsourcing cost 18,000.00 By Gross Profit 3,554,500.00

To Hire Charges of P & M 225,000.00

To R & D 44,000.00

To Sundry Expenses 15,000.00

To Bad Debts 125,000.00

To Carraige Outwards 4,000.00

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To Interest on Loan @10% 20,000.00

To Advertisement 650,000.00

To Sales & distribution Expenses 300,000.00

To Tax and Duties 965,000.00

To net Profit 1,188,500.00

3,554,500.00 3,554,500.00



To Opening Stock 22,000.00 By Sales 4,244,000.00




To Wages 55,000.00


4,594,000.00 4,594,000.00



To R & D 54,000.00







To Tax and Duties 1,200,000.00


4,199,000.00 4,199,000.00

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To Opening Stock 350,000.00 By Sales 4,900,000.00




To Wages 70,000.00


5,180,000.00 5,180,000.00



To R & D 65,000.00







To Tax and Duties 112,000.00


4,270,000.00 4,270,000.00

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4Marketing Strategies

4.1 Segmentation

Flateel is targeting two population segments of the fashion conscious female with

disposable income, one is Professionals and other is mass market which will include all

the other different categories of female.

Segmentation is based on lifestyle and demographic.

Professionals: these are full time working professional women. They typically earn more

than rupee 10,000 themselves. They will purchase shoes for the workplace as well as for

leisure time. This group is being targeted as they work full time and therefore have the

need for many different pairs of shoes for all of their different outfits. They also have the

money to spend on shoes and will take advantage of this reality as women typically love

to collect lots of shoes.

Mass Market: this market has baby bloomers,senior grey,young family and young cool.

Under which young cool has high responsiveness to all the elements whereas they also

have low price sensitivity.Young cool are the college going girls. This group is attractive

because they have the money and the time to shop for trendy footwears. With both

money and time, there is no limit to the number of cool footwear that they would like to

own.

Below given is the segmentation table, explaining flateel’s segmentation of the

female market:

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4.2 Targeting

The target Audience is in between the Age group of 15 -45 years female and are

professional and college females. This group of people are party lovers.

FLATEEL will be positioned as

DUAL classiness of wearing FLATS & HEELS in ONE.

If we look at the benefits that are being provided by Flateel they are being a combatable

footwear , flat cum heel , and classy in appearance. These benefits would be available to a

very niche set of customers who could afford it. As mentioned earlier the location will be

any mall or crowded place but rather than a stand-alone building where the customers

cannot come or a place which is totally isolated.

4.3 GAAP Analysis & differentiation

4.3.1 Point of parity

Flateel works same as normal heels and flats works and its appearance is also not so

different.

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4.3.2 Point of difference

The element which makes Flateel different from branded footwear of heel and flat is

flateel’s dual nature.

Flateel offers two benefits into one , you don’t need to carry 2 different types of

footwear because now you are availing them in one.

4.4 Positioning

Flateel will position itself as every women's fashionable solution, providing with the

largest selection, rivaling beautiful pairs. Flateel will leverage their competitive edge to

achieve this desired positioning.

Flateel’s competitive edge is offering duality, for the fashionable as well as time

conscious women consumer. The competitive edge is the recognition of this unserved

niche and the next is serving of this demand.

4.4.1 Positioning statement

“ DUAL classiness of wearing FLATS & HEELS in ONE”

We are positioning our product as footwear with high comfort and classy look

POSITIONING MAP

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5.1 PRODUCT

Core product: Core products are company's products or services which is most

directly related to its core competencies. They refer to the use, benefit or problem-

solving service that the consumer is really buying when purchasing the product.

In our case we have a height as a core product as it can be decreased and increased

accordingly.

Actual product: Actual Product is the physical or tangible product which a consumer buys

to get the CORE benefits that this product has in offering. For example, if the core benefit

that a consumer seeks is READING then a BOOK is the Actual product.The manufacturers

5 Marketing Mix Tactics

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keep in mind the CORE benefits before making the ACTUAL product. But since in almost

every product category there is competition among the manufacturers, the companies

usually differentiate their product from the rest. Some of the differentiating factors that the

companies use are packaging, additional features, style, branding etc to attract the

consumers to buy their product.

In our case we have given the preference to green packaging.

Augmented product: A commodity that has both the primary physical attributes and the

non-physical attributes that are added to increase the product's value.

5.2 Price

We’ll opt for Penetration & psychological pricing and price our product at rate of

1499 rupees per piece only which is very much reasonable. Other than that, this type

of strategy will attract large number of female customers.

FACTORY

COST

FACTORY

MARGIN

DISTY

PRICE

DISTY

MARGIN

DISTY

MARGIN

%

DEALE

R

PRICE

DEALE

R

MARGI

N

DEAL

ER

MARG

IN %

RRP/M

RP

INR

INR INR INR % INR INR %

INR

F

L

A

T

E

E

L

960

41% 1338.6 70.453 5%

1409.06 89.94 6% 1499

DISTRIBUTION PRICE LIST

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5.3 Place

We will launch our product in Delhi because the city has trendy crowd of female college

going girls and professionals. They are appearance-conscious and every time wants to look

perfect from head to toe.

Delhi will attract right kind of customer who will share right kind of message about our

product & who will help us to acquire another set of right customers.

After launching in Delhi,location will get expanded

5.4 Promotion

a) Mass media:- In the beginning, heavy investment will be required for promoting

the store as it is a new concept. Television ads in youth channels like MTV, VH1

and Channel V will be shown. Showing T.V ads between popular serial at prime

time will also be very influential.

Social media will be used extensively to keep the users updated with the

happenings in the store. No newspaper ads will be used but print ads in magazines

mostly fashion magazines like vogue, women sera will be published.

b) Event :- Many fashion events are organized in Delhi university campus, co-

sponsoring them and giving trail to the participants with brand logo will going to

be used .

c) Public relation:- Announcement by posters so that they know when the shop is

going to open and fashion show.

d) Sales promotion:- We’ll promote our sales by giving discounts such as trade

discounts, cash discount, early purchase discount, seasonal discount so that our

main target market i.e; women will get attracted towards our product.

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6 Go-to market Strategy

6.1 Sales & distribution plan

We are new distributor, we understand that we will have to prove our worth to our

customers in order to earn their respect and business.

FLATEEL will begin operations with two full-time delivery/sales representatives, who

will be responsible for providing full service and delivery to current customers, but also

make sales calls for potential new business, these delivery/sales representatives will

receive a base salary, with commission on qualified sales, as well as bonuses for new

acquired business. Product orders can be placed in a number of ways to help facilitate the

process:

Online order : customers can order(24*7) the Flateels from our website also with

online or offline (COD) payments mode available

Phoned Orders: Customers can easily phone orders into our office, up until 8 p.m

and one of our representatives will visit their place with the ordered product.

6.2 Production/sourcing plan

Production Plan

Our production system shall strive to attain service excellence in addition to

manufacturing safe, quality products. This shall be undertaken through the engagement of

modern production techniques using up-to-date assembly technology. This will also

result in low production costs being attained by the company. In order to improve

productivity in our plants we intend to reduce waste and duplication.

Suppliers

Currently the company CAMINAR DE STILL obtains the vast majority of its raw

materials from XYZ suppliers. However as we are committed to fair terms of trade

and promotion of local business we intend to engage local suppliers. Hence raw

materials, including x and y, may be sourced from local communal so as to

minimize costs. The major advantages of doing so being higher margins, faster

payments and lower risks of payment default.

Storage

It shall be the policy of the company to ensure that all raw materials are stored in a

secure and clean place. Stock takes and reconciliations shall be undertaken on a

regular basis, initially done at least once a week.

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6.3 LAUNCH PLAN

Product is new so the distribution is also limited

But the product would be available in all the major retailer stores

Brand is not known to the customers so it would be sell through existing retailers

Before going into the global market the idea is to penetrate the local first.

6.4 IMC CAMPAIGN PLAN

Place- Delhi

Name - fresh face ?

Event - Fashion Show competition

Mission - brand awareness

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ABOUT

We will organise the fashion show which will take place in north east part of Delhi .In

This region there are 8-9 colleges which are nearer to each other and there we will

approach college girls . In this fashion show anyone can participate who will be able to

fit in the selection criteria.

Judges will be well known figures in the youth like we can invite Ranvijay & Koyal

Rana-former Miss India as they can associate very well the youth.

In the contest semifinalists will be given an opportunity to walk in our fashion show

wearing our flateel footwear.

And the winner among them will get a chance to be featured in our commercial ad.

IMC TOOLS

Print media

NEWS PAPER

MAGAZINE

Social media

FACEBOOK

TWITTER

WHATSAPP

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Out of home media

BUS BILLBOARD BILL BOARD

EXPECTED RESULT

BRAND AWARENESS

CONTESTENT WILL SHARE THEIR PICS ON SOCIAL MEDIA

WHICH WILL CREATE MARKETING BUZZ.

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