ASIAN SCHOOL OF BUSINESS

MANAGEMENTTERM-II (End term)

Assignment of Marketing

Red Chief Footwear

Submitted To:Prof. Arnab Sen

Submitted By : Group - 4

NAME ROLL-NO SIGNSheikh Abdul Shahnawaz PGDM/14-16/40

Mohan Reddy Devireddy PGDM/14-16/24Shibashish Mohapatro PGDM/14-16/58

Amiya Mohanty PGDM/14-16/10Khushbu Agarwal PGDM/14-16/19

Anusha Naidu PGDM/14-16/01Dhiraj kumar PGDM/14-16/16

Subhashmita Dalai PGDM/14-16/48

Sheikhabdulshahnawaz@gmail.comFacebook.com/sheikh.shahnwaz

Red & Chief Footwear

Red Chief is the brand of Ghari Industries Pvt. Ltd. (Footwear & Leather division) - one of the leading manufacturers of footwear in India. The Company is a part of Ghari Industries Pvt Ltd group, having annual group turnover of around US $ 200 million. This company is also manufacturing detergent under the brand name "Ghari" which is a well established brand and trend setter in its respective industry.

Footwear range of Ghari Industries Pvt Ltd was launched under the brand name Red Chief in 1997 to meet the growing demand for branded high quality leather footwear at an affordable price. Starting with a handful of employees in 1997, Red Chief now has a workforce of more than 350 dedicated employees. The company has recorded an impressive growth through its enthusiastic and highly motivated marketing team and an efficient distribution network covering nearly the whole of north & west India. For future growth the company is now all set to explore overseas market.

The driving force behind the company through the years has been its quest for quality and excellence. To fulfil these objectives, Red Chief has gone for complete backward integration. It has its own Tannery to supply a complete range of finished leather as well as manufacturing facilities for making Sole and Shoe Upper ,thus ensuring superior quality in every component of its products and becoming a complete Shoe Manufacturing Company.

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Advertising, Sales Promotion Strategy Followed By Red & Chief Footwear

POWER OF REAL LEATHER

TAG-LINE: Red & chief taglines meant for individual products are the key components of advertising. These tag-lines are modified according to demographic profile of consumers. These appear on hoardings at every crucial & congested part of the cities in which Red & chief retail stores are operating. Everybody understands and connects easily with these simple one-liners like ‘Think on your feet’, ‘Power of real leather.

PRINT ADS: Red & chief advertise its products just before launch of any new scheme. This helps in setting up a platform for the new products brand in the minds of customers. The ads are displayed on a full page in the leading newspapers which again is based on the preference of the people. They also attach pamphlets of their ads along with the newspaper.

TV-ADS- Television is one of the best platforms to advertise one’s product. Red & chief being a family brand, the ads are shown during the prime time slot so the entire family can see it together.

ROAD SIDE ADVERTISING: Red & chief bill-boards are displayed on prime locations in various cities as a brand building exercise.

CELEBRITY ENDORSER- Red & chief’s sale doubled as soon as they used ‘Virat Kohlli’ cricketer as their brand endorser.

SPECIALIZED SHOES: Red & chief has also launched a new specialized division — Red & chief Industrials — to offer specialized footwear to various sectors – defense, automobiles, metals, petroleum, construction and agriculture. “Red & chief Industrials is the world leader in high performance safety shoes and has experience of this market segment and access to world class technology, and knowledge on safety footwear.

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RETAIL SHOPS: These are the places where majority of the purchasing decisions are made. Red & chief stores are now spacious with over 3,000 sq. ft. of retail space; some are even larger than 10,000 sq. ft.

BELOW THE LINE SALES PROMOTION: Below the line sales promotions are short-term incentives, largely aimed at consumers. The different types of strategies adopted by Red & chief in this respect are discussed below

PRICE PROMOTION: Price promotion refers to ‘price discounting’. It is done by two ways, namely

DICOUNTS: A discount on the normal selling price of the product. For example Red & chief a family footwear brand with showrooms all over the city, is offering discounts ranging up to 30% on shoes, sandals, chappals, ladies footwear, kid’s footwear and men’s footwear. This offer is available at all Red & chief footwear showrooms in Hyderabad.

STOCK CLEARANCE SALE: Red & chief often has ‘stock clearance sale’ which helps in boosting up the sales figure.

GIFT WITH PURCHASE: Red & chief introduces Gift Vouchers – Giving vouchers are a first of a kind initiative in the footwear retail industry, Red & chief India introduced it for the time, “Red & chief Gift Vouchers”. These gift vouchers can be used in place of cash and are available in various denominations to provide the convenience and choice to purchase a wide range of footwear., Red & chief Gift Vouchers are targeted at three major segments – employee incentives & rewards, business gifting and customer promotions. They are also very ideal for customer promotions – loyalty reward points redemption, sales promotion & contests, etc.

‘99’ MAGIC FORMULA: “Red & chief has managed to keep its pricing competitive and attractive for its customers. It has products for every foot and every social class to suit every member of the family. Red & chief is a value for money footwear brand.

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STRATEGIC MARKETING PLAN FOR THEIR ESTABLISHED TARGET MARKET

Red & chief footwear is a well maintained shoe company which customers are buying in regular basis as it provide the best quality of leather shoes, so to expand its target customers company should follow certain market strategy to not only establish its target market but to attract new customers as well.

Company should open a new store shops in a small towns of country. As company produce leather shoes so it can follow a strategy of exchange policy like if

customer will bring a old shoes in return they should provide same value of shoes to customers and in that old shoes they can use and can make new shoes because it’s a lather shoes they can reuse it as they can.

Red & chief footwear is always concentrating on styles and basically youth generation as the maximum youth are preferring red & chief shoes so it must give seasonal discounts, they can use policy like buy 1 get 1 free.

Company is always came up with new kind of shoes but it gives only party wear shoes so to maintain its target market they can enter into sports segment as well, so that sports persons can also buy the footwear of red & chief.

The company is well established market but the price of red & chief shoes is starting from Rs. 2,200 so if they can reduce their cost and launch the products in the less price so that more customers can be attract for the product.

As in Indian market consumers are more preferring slippers for their home use and in India 75% of the people live in villages, so it must produce slippers in a lower price.

Company should also enter in a women footwear segment as well because girls are also using formal shoes & sandals so they can also prefer red & chief product and company will new target customers.

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