Marketing research project on mobile shoes retail. UCBX Fall 2012.

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2. Shoemobile
UCBX, Marketing Research, Fall 2012

3. Agenda
• Background
• Secondary Research
• Objectives and Key Questions
• Research Methodology
• Findings and Interpretation
• Recommendations and Next Steps
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4. 4
Background and
Secondary Research

5. Background
• Introduce new shoe shopping concept
• Reach Downtown SF, work/living place
• Provide variety of shoe types
• Communicate schedule via social media
• Preview inventory online
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6. Secondary Research
• Shoe industry overview
o Total industry revenue is about $27B
o Top 50 companies holds 75% of revenue
• Largest segment by far of this industry is
E-commerce
• New trend: pop up retail, mobile fashion
trucks
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7. Objectives Key Questions
Demand for Product
and Service
Would the shoemobile concept be
accepted?
Competitive Analysis Who are the competitors?
Segmentation What are customer segments?
Place for service Where should the truck be located?
Price setting What price range would be reasonable,
competitive, and sustainable?

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Research Methodology and
Sample Population

9. Research Methodology
• Mix of qualitative and quantitative analysis
o Frequency, location, behavior, thought
process, and demographic
o Included text box to gain richer data
• Online survey
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10. Sample Population
Total sample size: 1,200
Sample size representation
Online Run Errands
Age
28-40
200 200
Income
$40K+
200 200
Women
Work at SF
200 200
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Survey Population

12. Survey: Population Data
Age Population
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13. Survey Demographics
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Income Distribution
36% : 50-75K
22% : more than 100K
17% : 75-100K
14% : 40-50K
11% : Less than 39K
Occupation Distribution

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Findings and Interpretations

15. Findings: Interest in Shoemobile
Findings Interpretations
1. Demand for service
• Respondents will not replace their
shopping
• Additional customized service
• Top 3 factors where they shop
• Choice 36%
• Price 33%
• Convenience 28%
• Interpretation:
• Obstacle
• Delicate aspect
• Truck Advantage
• Most important purchase factor
• 75% Return-policy
• Interpretation
• Delicate aspect
• Majority of women favors
"Shoemobile" concept
• 25% of respondent voice concerns
• Like the idea, but doubtful about
service and changes SO proceed
with caution!
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16. Interest in Shoemobile continue
Findings Interpretations
2. Competitive Analysis
• Only 28% buy shoes online
• Online competition
• Convenience main advantage
• Try-on main disadvantage
• Mention to reviews
• Privacy and no time constraints
• LITTLE online competition
• Competitive advantage
• No shipping time
• Advantage
Advantage on stores
• Obstacle
3. Segmentation
• Age & Income do not influence
price
• Outside SF more price conscious
• Shoe-shopping is very subjective
• Obstacle
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17. Interest in Shoemobile continue
Findings Interpretations
4. Place of Service
• 75% Longest break 12p - 1p
• 61% Shop after work
• Frequency: every 3 months
• Respondents asked for home
service
• BUT <1% Shop for shoes at lunch
• Consider DIFFERENT time-frame
• NOT a daily/weekly service
• Houses and special events as
secondary market
5. Price Setting
• Most bought: casual shoes
• 74% spend <$100 on average and
56% wouldn't spend >$100
• Commuting/walking people
• Need to keep price of a shoe to less
than $100

18. Additional Insight From Text Box
Positive Negative
"...If you can make it a positive and
comfortable customer experience with a
good selection, I imagine you will
have a good number of repeat
customers."
"...When I go shopping, I do it whenever
time is convenient for me and not on
schedule. If I will have an appointment
with shoe-mobile, I will likely miss it."
"Interesting, if it will be convenient to
try on and I won't feel obligated to buy
it since the whole truck come to my
location."
"I think it's pretty cool, but what if you
change your mind and want to return the
shoe? For example, if the shoe doesn't go
with your outfit and you want to return?"
"I will definitely be spending more
since the products come to me."
"Interesting concept, but may depend on the
variety of brands and styles that would
be carried."

19. Recommendations

20. Recommendations
Location:
Secondary Market
• 39% of respondents want
shoemobile near their home!
• Possible second location at
Belmont
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21. Recommendations
• Focus first on bringing in shoes that can be sold for less than
$100 a pair
• Do a “soft launch”
• Incentivise customer loyalty and recommendations
• Regard yourself as a niche market
• Have a return policy
• Offer diverse offering, keep your inventory well calibrated
• Consider ways to better meet the needs of “convenience
shoppers”
• Consider offering to SF and within Bay Area markets
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22. Conclusion: Next Steps
• Proceed with Caution!
• Perform additional research to obtain deeper
understanding of consumer segmentation
• Test product/service mix with a "soft launch"
o Utilize and leverage social media outreach
and data to create consumer awareness and
obtain consumer feedback

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