Marketing Research Project


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Through researching a unsatisfied demographic, I placed the framework of my own mock company.

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Marketing Research Project

  1. 1. MIDTERM PROJECT Marketing Research STRUT By Renee Miller
  2. 2. Industry Overview <ul><li>The shoe store industry includes about 30,000 stores with combined annual revenue of almost $25 billion. </li></ul><ul><li>Major companies include Payless, Famous Footwear, Footlocker, and DSW (Designer Shoe Warehouse). </li></ul><ul><li>Shoe manufacturers, such as Nike and Brown Shoe, also have retail operations. </li></ul><ul><li>The industry is concentrated: the top 50 companies have about 80 percent of industry revenue. </li></ul>
  3. 3. Strut: At a Glance <ul><li>My business is a shoe company selling original designs and fashionable imitations of high-end contemporary woman’s shoes. </li></ul><ul><li>The product will cover everything from evening, dressy and casual shoes; manufacturing heels, boots, flats and some specialty sneakers. </li></ul><ul><li>The product will be more edgy, stylish and fresh than our competitors at a lower price point. </li></ul><ul><li>Strut will also manufacture our shoes with the customer’s comfort as well on top of their wallet in mind. </li></ul><ul><li>The target customers are middle class women ranging in age from 19 to 39. </li></ul><ul><li>These women like fashion but love shoes (especially at discount prices). </li></ul><ul><li>They are career oriented, but on the other hand, they are outgoing and love a night out on the town. </li></ul>
  4. 4. The Competitive Market of the Shoe Industry <ul><li>Fashion trends and personal income drive demand. </li></ul><ul><li>The profitability of Strut depends on our effective merchandising and competitive pricing. </li></ul><ul><li>Large companies have advantages in purchasing, distribution, and marketing. </li></ul><ul><li>However, Strut can compete effectively by stocking specialty products, providing superior customer service, or serving a local market. </li></ul><ul><li>My company will have to compete with department stores, mass merchandisers, apparel retailers, Internet retailers, and some shoe manufacturers. </li></ul>
  5. 5. Competition Continued <ul><li>Our Competition </li></ul><ul><ul><li>Nine West </li></ul></ul><ul><ul><li>Steve Madden </li></ul></ul><ul><ul><li>Aldo </li></ul></ul><ul><ul><li>Adidas by Stella McCarthy </li></ul></ul><ul><li>Competitive Advantages </li></ul><ul><li>Customer Service </li></ul><ul><li>Technology </li></ul><ul><li>Use of Focus Groups & Surveys </li></ul><ul><li>Use of major marketing and promotional vehicles </li></ul>
  6. 6. Technology <ul><li>Strut plans to use integrated computer systems to manage point of sale (POS), inventory, distribution, and financial operations. </li></ul><ul><li>Daily analysis of POS data will allow my company to react quickly to market conditions and make fast decisions on pricing, reorders, and markdowns. </li></ul><ul><li>Our inventory management system will help Strut stores develop store specific merchandising plans and identify losses. </li></ul><ul><li>Strut will track merchandise by universal product codes (UPC), and use electronic data interchange (EDI) and advance shipment notification (ASN) to aid in purchasing and monitoring deliveries. </li></ul>
  7. 7. Sales and Marketing <ul><li>While the typical customer for a shoe store varies by store type, women between 18 and 49 make the majority of footwear purchasing decisions. </li></ul><ul><li>Appearance-conscious young women are important targets for the shoe industry. </li></ul><ul><li>On average, women spend $40 on a pair of shoes, according to Greenfield. </li></ul>
  8. 8. <ul><li>Major marketing and promotional tools include TV, radio, newspaper, and print advertising, direct mail, and in-store displays. </li></ul><ul><li>Brand name shoes are important. </li></ul><ul><li>Giveaways and promotional events draw store traffic. </li></ul><ul><li>Shoe retailers may encourage multiple purchases through loyalty clubs or by offering discounts. </li></ul><ul><li>Seasonal décor highlights new merchandise. High-end shoe stores may hold trunk shows to feature special designers. </li></ul>
  9. 9. <ul><li>Most shoe stores have Internet sites providing basic store information, including hours of operation and locations. </li></ul><ul><li>Most large companies sell merchandise through websites or link with existing retail sites, such as Amazon. </li></ul><ul><li>The Internet is especially important for shoe stores with specialized inventory, such as large size shoes. </li></ul><ul><li>Companies may use Internet sites or catalogs to drive traffic to stores. </li></ul>
  10. 10. Strut’s Perspective <ul><li>How can Strut break into the shoe industry successfully? </li></ul><ul><ul><li>Our business strategy is that we understand the value of customer relationship management. </li></ul></ul><ul><ul><ul><li>There is a strong correlation between customer satisfation and customer retention </li></ul></ul></ul><ul><ul><ul><li>Knowing your customer and increasing valued-added components to the customer is a key dimension to profitability </li></ul></ul></ul><ul><ul><li>Market Research </li></ul></ul><ul><ul><ul><li>The use of real-time customer information to achieve a competitive advantage: Surveys, focus groups </li></ul></ul></ul><ul><ul><ul><li>The following slides are examples of Strut market out-sourced data intelligence. </li></ul></ul></ul>
  11. 11. The Customer: Woman’s footwear purchases in the past 12 months, March 2007
  12. 12. Attitudes towards shoe shopping, by Region
  13. 13. Women’s footwear purchases in the past 12 months, by Age
  14. 14. Women’s footwear purchases in the past 12 months, by Household Income
  15. 15. Competition: Retail Distribution Where women purchased shoes in the past year, by retailer type, March 2007
  16. 16. SWOT Analysis of Strut <ul><li>Strength: Strut can compete effectively over large mass merchants by stocking specialty products, providing superior customer service, and catering to a local market. </li></ul><ul><ul><li>Technology: Intergated computer systems, POS, UPC, EDI, ASN </li></ul></ul><ul><li>Weakness: Strut will have a major disadvantage in purchasing, distribution, and marketing due to its small size. </li></ul>
  17. 17. <ul><li>Opportunities: Strut can conduct surveys and focus group discussions in order to generate new ideas about products and services as well as to help explain changing customer preferences. </li></ul><ul><ul><li>Sales and Marketing: Ads, direct mail, in-store displays, Giveaways and promotional events </li></ul></ul><ul><li>Threats: Major mass production shoe merchants who have a competitive edge because of their size; they have an advantage in purchasing, distribution, and marketing. </li></ul>