As everyone needs shoes the entire population is seen as the market for the chosen product, however this market must be broken down as to obtain a clear target audience for the introduction of the new product.
To begin the breakdown of the market it has been decided that the market will be divided by demographics.
“Demographics are statistics that measure observable aspects of a population.” (Solomon et al 2006)
The new product will be aimed at women, this is believed to be beneficial to the product as it is thought by most women that “they can never have enough shoes.” (bbc.co.uk) This attitude will be beneficial for the product sales.
It is also thought that the market will be professional women, aged 25-45, within the research already carried out with this age group it was clear that comfort and style were a must, therefore with the combination of both of these factors, sales should be strong and with the innovative idea, could create brand royalty from the women, as their needs are being successfully met. .
These women will also have a high-disposable income, meaning they have more money for luxury products such as shoes.
It could be said that targeting the product at just one market segment could hinder the success of the product, however our aim is not only to make a profit but to supply a market with a product which meets all of its needs and wants, this creating a successful brand.
“High growth companies succeed by identifying and meeting the needs [and wants] of certain kinds of customer, not all customers.” (Dibb et al 2001)
Competition
Competition is “a business relation in which two parties [or more] compete to gain customers.” (thefreedictionary.com)
In the case of the shoe/boot with the built in gel pad there is no clear “mirror image” product. There are products which meet some of the attributes attained by the new product, but not as combination.
One clear competitor is “Scholl party feet” which is along the same lines as the gel pads which will be built into the shoe.
“Scholl Party Feet™ Gel Cushions are designed to help prevent the burning pain in the balls of the feet.” (scholl-footcare.com)
Although this can be seen as a huge disadvantage towards our new product there are factors which create positive outcomes for the success of our new product.
With the combination of the comfort factor and the style it is believed that the new product will enter the market as an innovative product which will create a competitive advantage.
Positioning
“The objective [of positioning] is to create and maintain a distinctive place in the market for a company and/or its products.” (Jobber et al 2004)
There are four key aspects to successful positioning for a product; clarity, consistency, credibility and Competitiveness.
In terms of clarity it is said that a clear message is most beneficial to the success of a product. In relation to the new product the message is “stylish built in comfort”, this is clear and is thought to be a memorable statement.
Consistency in the message we are trying to get across is a necessity, it is important that this message does not change from year to year. With reference to the product in discussion, it is intended that the message will remain the same through all stages of the product life-cycle.
The credibility of what is on offer is an integral factor to the positioning. As we are aiming the product at fashion conscious women who need comfort from their shoes, it is thought that the message being portrayed will be credible in the minds of our target market.
Lastly, the competitive factor is believed to be offering “something of value to the customer that the competition is failing to supply.” (Jobber et al 2004) This being the in-built gel pad to create comfort all the time in fashionable shoes.
Marketing Mix
“A primary goal of a marketing manager is to create and maintain a marketing mix that satisfies consumers’ needs for a general product type.” (Dibb et al 2001)
There are four main components of the marketing mix; product, price, place and promotion.
Product
“The product variable is the aspect of the marketing mix that deals with researching consumers’ product wants and designing a product with the desired characteristics.” (Dibb et al 2001)
The research that was carried out in papers 1 and 2, clearly outlined the needs and wants of our chosen target market. They looked for style and comfort from their shoes. To satisfy these needs and wants a new brand of shoes/boots which is “stylish built in comfort”, has been created. This product provides the market to buy a number of different styles of shoes/boots, which will follow the current trends with the added benefit of built in gel pads to meet the demand for comfort from their shoes.
Although, as already stated, there is a product called “Scholl party feet”, it is believed that the built in factor will benefit our market greatly, as;
- As the gel pads are built into the shoe/boot this creates comfort at all times.
- Will be inserted underneath the material on the sole of the show, avoiding the embarrassment of the gel pad falling out
- Thus making it completely invisible.
- Able to go in all shoes, not just sandals and high-heeled shoes
- With them being in-built there will be no need to replace the gel pads
Price
“The price variable relates to activities associated with establishing pricing policies and determining product prices.” (Dibb et al 2001)
With the previous research, it was noted that although the women set a budget they were willing to go over it if they found a shoe they liked, this is a result of the markets high-disposable income.
The pricing policy that the introduction of the “stylish built in comfort” brand will follow is; pioneer pricing.
Pioneer pricing is “setting the base price for a new product.” (Dibb et al 2001)
With pioneer pricing there are several factors that must be taken into consideration, for example;
- Does the price get set high to recover development costs in a quick manner
- Does the price begin with discounted prices
- How quickly could the competition come on to the market
As the product is aimed at professional women whom have a high disposable income the price will be set high. The price for boots will be between £100 and £150 for other shoes and sandals the price will begin at £80. Although these prices are expensive it is thought that it will benefit the brand and is something that the target market would be willing to pay, this is due to the fact that all their needs and wants are being satisfied with the purchase of one product.
The shoes will also be seen as a luxury good and it has been shown that within “luxury goods market [which] was worth an estimated €70.0 billion (US$87.5 billion) in 2005, up 9.2% on 2004.” (mintel.com) This fact, alone, showing that people are willing to spend more on products.
Place
“The objective [with place] is to ensure that products and services are available in the proper quantitites, at the right time and place.” (Dibb et al 2001)
Previous research showed that the target market believed that when shopping they had to enjoy the process and thought that the best way this was achieved was by shopping in stores which they felt comfortable in.
Therefore the stores which the shoes/boots will be available in are high street stores, such as;
- Frasers
- Nine West
- John Lewis
- Office
- Next
These stores suit the market targeted as they are well known and established shops which are seen to be reputable; which was another point that was stated in the research.
Being in stores such as these makes the products widely available and keeps in with the idea of style and luxury.
Promotion
By the promotional “means the target audience is made aware of the existence of a product or service, and the benefits it confers to customers.” (Jobber et al 2004)
The product will be advertised on television in between shows such as ER, Greys Anatomy, reality shows, Coronation Street and other popular evening shows. These adverts will show many of the styles and will illustrate the competitive advantage. The message will be clear; “stylish built in comfort.” Advertisements will also be taken out in fashion magazines such as; Vogue, Marie Claire, etc.
Within the research it showed that although when actually purchasing the product the consumer liked being in the shop it also illustrated the fact that the internet was used aswell. Reasoning for this being that it allowed them to see what was available in the stores while they were at work during the week allowing for the weekend to be a quick and easy process.
Therefore all styles of shoes will be shown on the internet through the highstreet store websites. It was thought, initially, that the brand would have its own website but with it being a new product this would be of no benefit to the product.
Key Strategies
The key characteristics of well blended and effective marketing mix are:-
- Product matches the customer needs
- An aspect of the product creates a competitive advantage within the chosen market
- An effective marketing mix for the product
All of the above applies to the chosen product in discussion, “stylish built in comfort”, as:-
- With the combination of comfort and style, the customers needs have been successfully met
- The combination of the comfort and style factors, “stylish built in fashion”, creates the competitive advantage for the product.
- The decided marketing mix is believed to be effective for the market of the new product.
All of the above is implemented to create a successful marketing strategy which is based on the research information gathered in papers 1 and 2.
The main issues that have to be detailed in a successful marketing strategy are:-
- Identifying the target market segment
- Identifying the main competitors
- Benefits that are integral to the product are described.
- The chosen retail price will be stated and why.
- Stores and places product will be sold are stated.
- How the product will be communicated to the chosen market will be outlined.
All of which will help in the success of the new product.
Conclusion
In conclusion it is believed that the implementation will result in total success of the new product.
References
Books
Dibb, S,(2001)Marketing: Concepts and Strategies,(4th),USA Pages 23,210,599
Jobber,D,(2004),Principles and Practice of Marketing,(4th),Berkshire, Pages 6,210,237
Solomon, M,(2006),Consumer Behaviour: A European Perspective,(3rd), Pages 9,
Schiffman L (2004) Consumer Behaviour, (8th Edition), Upper Saddle River, New Jersey, USA, Page
Websites
Last Entry: 16/05/07
last Entry: 16/05/07
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