Footwear

Growing awareness of health and fitness worldwide has Increased the popularity of running as it is considered one of the best forms of activities that enhance physical fitness. Marathons are also increasingly popular, with participation not restricted to athletes alone. Technical predicts that the global running apparel and footwear market will grow steadily In the future, posting a CRAG of more than 6%. The market generates Its revenue from various distribution channels, such as general sporting goods stores, discounting stores, and the online medium.

Covered in this Report In this report, Technician covers the present scenario and growth prospects of the global running apparel and footwear market for 2015-2019. To calculate the market size, we used the revenue generated from the sale of running apparel and footwear worldwide. View our full TCO here Key Regions North America Europe OPAC ROW Key Vendors Aids GAG ACACIAS corp.. Nikkei Inc. Puma SE Checkers Inc. Other Prominent Vendors Aimer Sports Brooks Columbia Sportswear Eddie Bauer Gap Hands New Balance Ralph Lauren Under Armor IF Key Market Driver Availability of Sustainable Products

For a full, detailed list, view our report. Key Market Challenge Availability of Counterfeit Products Key Market Trend Advances in Technology Key Questions Answered in this Report What will the market size be in 2018 and what will the growth rate be? What are the key market trends? What is driving this market? What are the challenges to market growth? Who are the key vendors in this market space? What are the market opportunities and threats faced by the key vendors? What are the strengths and weaknesses of the key vendors? For more insights, view our Global Running Apparel and Footwear Market 2015-2019 report.

Together the market is worth Just over EWE billion. The footwear industry accounts for 13. 7% (Been). (Source: Footnote 2006)The footwear industry is split up into 3 main categories:-children’s footwear which accounts for 23% (El . 4 billion pair) of the total marketer’s footwear has a higher market share at 31 . 1% (1. 9 billion pairs) madwoman’s total market share which is at 45. % (2. 9 billion pairs)(Source – Office of National Statistics)3. 2 Clacks has four main competitors. The largest competitor is Style PL. Which has 650 stores, trading mainly as Breasts, Bacon’s, Priceless and Shell’s.

Other significant competitors are Grids Group, famous for its Doc Martins Boots. Grids is privately owned and sells throughout the I-J in many major outlasted & Simpson Ltd. , which has over 400 outlets. They trade under the names of Peter Briggs, Stead & Simpson, Shoe Express and Lilly & Skinner andesine Zone, which has 370 locations in the I-J. Source: footnote 2006)More recently new competitors have emerged particularly some of the major Supermarket chains such as USDA, who have their own clothing and shoe range.

Other fashion outlets have also recently diversified into the footwear industry, e. G. ‘Arcadia’ which now sell its “own brand” shoes as well as known brands. ‘Oasis’, ‘Next’ and ‘New Look’ are also taking the same direction. The Internet has also increased competition from other parts of the world although this is not at present material. 3. 3 From my research, it has become evident that fashion in the footwear industry is coming important and consumers are becoming more fashion conscious when it comes to their feet.

However trends change rapidly and it is difficult to forecast where the market is going. Predicting the trend correctly is the difference between success and failure. The majority of footwear sales in the UK are through retailers. A third of women admit to buying shoes and accessories on impulse (source -Minted). Only a small number of people buy over the Internet. Parents tend to take their children to recognized retailers to have their feet properly measured (source: Minted). Parents insist on buying the right shoe for their children.

In 2005 the average person spent around E. 60 per week on shoes (source: Family spending). Thirty to forty nine year olds were spending on average E. 20 (IEEE per annum) a week on shoes because they were buying for their children. B. MACRO ENVIRONMENT. 4 There are a number of political factors which impact Clacks’ business. The EX. has voted to impose a two year regime of tariffs on imported goods from China and Vietnam. Duties of 16. 5% and 10% respectively will now be applied to shipments (Source: Independent 05/10/06).

This will mean higher importing cost for Clacks which could put up prices. The European Commission also imposes rules re price fixing and protecting small suppliers against anti competitive behavior from the large operators. (Source: Principles and Practices of Marketing)3. 5 Social factors have affected the footwear marketplace such as dress codes. The 21st century is a period of fast changing fashion; for example under 35 year olds choose to replace their shoes with the newest and most fashionable pairs, rather than repairing their shoes or buying shoes that will last for years..

This is partly due to the fall in price of shoes recently enabling young people to be more fashionable. Such has been the interest in fashion amongst young and middle aged people that inadvertently, it has created enthusiasm in shoes (source: Minted Report 2007). 3. 6 There have been a number of technological changes which have affected the market. There is now the ability to mass produce shoes from a combination of natural and synthetic materials at low cost and to relatively high quality standards. 3. 7 The use of the Internet has meant that customers have a wider choice of where to ay their shoes from.

Marquis M. Converse is an entrepreneur, founder of Converse. About Converse Converse origins of the company date back to 1908 when Marquis M. Converse opened the factory in Massachusetts called Converse Rubber Shoe Company. The factory initially produced only rubber soles for all types of footwear since 1915, however, focused on the production of tennis shoes from her and moved smoothly to produce shoes for basketball. And here starts writing legend. Year 1917, the year he saw the light of day Converse All-Star.

Unbelievably innovator shoes that brought in, at that time, a relatively young sport – basketball, lots of new features and ideas. , four years later, the company made ?? a brilliant move Converse, employs basketball player Chuck Taylor All-Star who wore as her favorite shoes. In addition, players is becoming a trader company Converse and brand design. On all models Converse – Chuck Taylor All-Stars appears his signature sneakers ever confirms a legend. Connection and Converse Chuck Taylor sneakers in the world became indivisible.

Converse as one of the first manufacturers in the world and sneakers Chuck Taylor as a basketball superstar of his time. Present Converse Conversky most famous are forever All-Stars, but the list of models of this brand does not end. Became less popular as basketball shoes from 1986 that bear the name The Weapon. The model also underwent Weapon reissue, the first in 2002, when they came to the ceremony itself Teen Choice Awards Kobe Bryant and the other in 2003 under the name The Loaded Weapon. All models from Converse is produced for years in a wide variety of colors and finishes.

Converse was one of the first trainers in the world and certainly will not be the last. At least take care of it, Nike, Converse brand that already own some that Friday. Chuck Taylor All Star – (also known as “Chucks”, “Cons”, “Conies”) are shoes of 20 century that it all began. The original canvas and rubber boots classic Chuck Taylor All Star is the idol of America, which has sold over 750 million pairs in 144 countries Converse Sports Lifestyle – footwear is designed to be worn on the street, in clubs and schools.

The different shapes are inspired by the urban youth skate shoes and white leather shoes that are clear leaders in the field of urban fashion. Inextricably linked with the history and heritage of Converse shoes are developed for life outside playground and playing field. Converse One Star – are popular with skateboarding and surfing community as retro, alternative lifestyle that represents originality and individuality.

One Star shoes, created in 1970, triggered the era of wearing shoes for all styles of so-called “India” athletes, individuals whose lifestyle and sport go hand in hand with creativity, imagination and sebevyjadrenim. Converse Performance Basketball – a new class of footwear was designed to play on the playground and in the halls with an emphasis on comfort, protection and style. With the same simple and characteristics as their predecessors have shoes Converse features a new generation of advanced technology, functional design and original style which allows players to peak performance and presentation skills.

IMC Plan of SHOES

Introduction to the merchandise

Shoes is a portion offootwear that is usage to first protect the humanfootand subsequently, to boot, as an point of ornament in itself. The pes contains morebonesthan any other individual portion of thebody. Thedesignof shoes has varied tremendously through clip, and fromcultureto civilization, with visual aspect originally being tied to map. Places have traditionally been made fromleather, woodorcanvas, but now a yearss it is progressively made fromrubber, plastics, and other petrochemical-derived stuffs.

Types of Places: –
Dress and insouciant Places: –

Dress shoesare categorized by smooth and supple leather uppers, leather colloidal suspensions, and narrow sleek. Casual places are characterized by hardy leather uppers, non-leather outsoles, and broad profile.

Work force ‘s Places: –

Work force ‘s places can be categorized by how they are closed:

O Plain-toes: have a sleek visual aspect and no excess ornaments on the coquette.

O Cap-toes: has an excess bed of leather that “ caps ” the toe. This is perchance the most popular ornament.

Women ‘s Places: –

There is a big assortment of places available for adult females, in add-on to most of the work forces ‘s manners being more recognized as unisex. Some wide classs are:

High-heeled footwearmay be shoes with heels 2 inches ( 5cm ) or higher. They are frequently seen as holding more sex entreaty than low heels ( see article for treatment ) and are therefore normally worn by adult females for formal occasions or societal excursions. Kitten heelsare low high heels from approximately 1.5 to 2 inches high, set in from the dorsum of the shoe.

O Sneaker bootand gym shoe pump: a shoe that looks like an athletic shoe, but is equipped with a heel, doing it a sort of freshness frock shoe.

O Wedge Sandals are sandals but have the mortise joints higher as if have oning a high heels shoe.

O Mulesare shoes or slippers with no suiting around the heel.

O Slinging backsare places which are secured by a strap behind the heel, instead than over the top of the pes.

O Espadrillesare insouciant flat or high-heeled manner sandals of a manner which originated in the Pyrenees. They normally have cotton or canvas upper and a flexible sole of rope or gum elastic.

Sports places: –

Work force ‘s and women’ssports shoesand particular map places frequently have less difference between the sexes than in frock places. In many instances these places can be worn by either sex. Emphasis tends to be more on map than manner.

O Runningshoes: really similar to above, with extra accent on padding.

O Track spikes: lightweight ; frequently with plastic or metalcleats

O Cleat ( shoe ) : a type of shoe having molded or removable he-mans. Normally worn while playing athleticss such asrugby, football, American football, or base ball.

O Golfshoes: with “ spikes ” for better clasp in grass and moisture land. Originally the spikes or “ cleats ” were made of metal but replaceable “ soft spikes ” made of man-made plastic-like stuffs with prongs distributed radically around the border of each spike are much more common today ( and are required on many golf classs since they cause less harm to the leafy vegetables ) .

O Bowlingshoes: intermediate manner between ordinary frock places and athletic places. They have harder gum elastic soles/heels so as non to damagebowlingalley floors. They are frequently rented or loaned at bowling back streets.

O Climbing places: a shoe designed forrock mounting. They typically have a close tantrum, small if any cushioning, and a smooth gluey gum elastic sole with an drawn-out gum elastic rand.

O Hikingshoes or boots: normally have a high slightly stiff upper with many lacing eyeholes, to supply ankle support on uneven terrain, with excess big grip on the sole.

O Walkingshoes: have a more flexible sole than the running shoe, igniter in weight than the hike boot, may hold air holes, may non be H2O cogent evidence.

O Cycling shoesare equipped with a metal or plastic cleat to interface withclipless pedals, every bit good as a stiff sole to maximise power transportation and back up the pes.

O Snowshoesare particular places for walking in midst snow. In temperate climes, snowshoes are used for largely recreational intents in winter.

O Wrestling shoesare visible radiation, flexible places that mimic bare pess while supplying extra grip and protection.

Work Places: –

Work places are designed to stand heavy wear, to protect the wearer, and provide high grip. They are by and large made from hardy leather uppers and non-leather outsoles. Sometimes they are used foruniformsor comfort bynurses, waitresses, constabulary, militarypersonnel, etc. They are normally used for protection in industrial scenes, building, excavation, and other workplaces. Protective characteristics may includesteel-tipped toesand colloidal suspensions orankleguards.

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Industry overview

Indian Footwear Industry

Leather industry of India is the nucleus strength of the Indian footwear industry. It is the engine of growing for the full Indian leather industry and India is the 2nd largest planetary manufacturer of footwear after China. Reputed planetary trade names like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are manufactured under licence in India. Besides, many planetary retail ironss seeking quality merchandises at competitory monetary values are actively sourcing footwear from India. While leather places and uppers are produced in medium to large-scale units, the sandals and chappals are produced in the family and bungalow sector. The industry is poised for following the modern and state-of-the-art engineering to accommodate the demanding international demands and criterions. India produces more of gent ‘s footwear while the universe ‘s major production is in ladies footwear. In the instance of chapels and sandals, usage of non-leather stuff is prevailing in the domestic market. Leather footwear exported from India are frock places, casuals, mocassins, athletics places, horrachies, sandals, danseuses, boots. Non-leather footwear exported from India are Shoes, Sandals and Chappals made of gum elastic, plastic, P.V.C. and other stuffs. With altering life styles and increasing richness, domestic demand for footwear is projected to turn at a faster rate than has been seen. There are already many new domestic trade names of footwear and many foreign trade names such as Nike, Adidas, Puma, Reebok, Florsheim, Rockport, etc. have besides been able to come in the market. The footwear sector has matured from the degree of manual footwear fabricating methods to machine-controlled footwear fabricating systems. The Indian Footwear Industry is pitching up to leverage its strengths towards maximising benefits. Strength of India in the footwear sector originates from its bid on dependable supply of resources in the signifier of natural fells and teguments, quality finished leather, big installed capacities for production of finished leather & A ; footwear, big human capital with expertness and engineering base, skilled work force and comparatively low cost labour, proved strength to bring forth footwear for planetary trade name leaders and acquired engineering competency, peculiarly for mid and high priced footwear sections. Resource strength of India in the signifier of stuffs and skilled work force is a comparative advantage for the state.

Market size of Indian Footwear industry: –

O The Indian footwear retail market is expected to turn at a CAGR of over 20 % for the period crossing from 2008 to 2011.

O Footwear is expected to consist approximately 60 % of the entire leather exports by 2011 from over 38 % in 2006-07.

O Soon, the Indian footwear market is dominated by Men ‘s footwear market that accounts for about 58 % of the entire Indian footwear retail market.

O By merchandises, the Indian footwear market is dominated by insouciant footwear market that makes up for about two-third of the entire footwear retail market.

O As footwear retailing in India remain focussed on work forces ‘s places, there exists a overplus of chances in the sole ladies ‘ and childs ‘ footwear section with no organized retailing concatenation holding a national presence in either of these classs.

O The Indian footwear market tonss over other footwear markets as it gives benefits like low cost of production, abundant natural stuff, and has immense ingestion market.

O The footwear constituent industry besides has tremendous chance for growing to provide to increasing production of footwear of assorted types, both for export and domestic market.

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Executive Summary

Although common aim of all IMC plan is increase trade name consciousness, sale and design a alone image of the merchandise in clients mind. To pass on among public and clients, we will publicize our merchandise run on Television, magazine, online. Through the advertizement we want to plan the trade name image of our merchandise into the client head. Besides advertisement, we will besides transport out promotional activity such as public relation, direct selling etc. Assorted places company besides organizes assorted events in order to pass on decently with clients, for illustration Reebok Brand had planned to establish an event called “Reebok Junnon” for their client “The Reebok hub” a multi trade name mercantile establishment for dress of places. The Main intent of this event was to increase the sale of Reebok places. Before planing IMC plan the Reebok Company carried out market research in order to justice clients behaviours toward their places. For research they design the scheme for “Reebok junnon” event. During the event they decided to acquire feedback from client who visits “The Reebok hub” so that appropriate primary informations can be collected for planing IMC scheme for “The Reebok hub” . Before planing incorporate selling communicating plan it is necessary to judge consumer ‘s behaviour toward the merchandise. It is necessary to cognize clients wishing and disliking, these informations provide assorted support during designing of IMC plan. Although there are assorted media available for pass oning but Printads in magazine and intelligence paper is seen most effectual medium in the instance of places be aftering scheme. After Research study done by assorted places company, it has been founded that male respondents were more trade name witting than female. There is no peculiar design tendency in places among female, but males are more witting towards their manner tendencies. “Fitting” and “style” are the major properties considered by client while purchasing shoes.Our Shoes Company HUNKY which makes athleticss places has come up with a new IMC program for the new athletics places merchandise for the new part Bihar where the mark market in the section Bihar will be Patna, Hajipur and muzaffarpur. In this study, we will further present ourselves and how we got started, internal and external situational analysis of our company, and why a new IMC program is needed. HUNKY is a strong rival in the SHOES industry and it is concentrating on increasing the trade name equity and profitableness of companies focused on increasing their portion in the footwear market. Our mission is to do certain that our clients have the tools and information that they need to go successful in the footwear market. HUNKY Company is fundamentally made athletics places so, we have segmented the market as a athletics places among all places types. HUNKY Company is fundamentally made athletics places that are for all degree of people. The HUNKY company mark market for the athletics places that will be kid ‘s to up to 15 old ages, immature people and old people above 50 old ages. On the footing of this mark market we will do placement scheme and we will do IMC program that will assist us to increase market portion and established the HUNKY trade name in the market with regard to all rivals. We have looked at the strengths and failings of the Hunky Company every bit good as the chances and menaces and have included them in this IMC program. HUNKY Company will utilize all IMC tools which will be best suited for fluxing the message among the targeted people. We feel that Hunky would gain from doing an advanced and client oriented merchandise that will utilize by largely all degree of people. Not many companies are concentrating towards the older coevals of places, so we want Hunky to be one of the first companies to hold an all degree of client oriented athletics places that will utilize by all degree of people and this strategically message, we will present throughout in our IMC program.

Selling program

Situational analysis

Every organisation is confronting a batch of job at present clip in market analysis, so it became really necessary for every organisation that before puting any objective the organisation must be carried out state of affairs analysis in order to acknowledge strength, failing, chances and menace nowadays in the organisation. “According to Sally and John, selling programs are “the written papers or design for implementing and commanding an organisation ‘s selling activities related to a peculiar selling strategy” . A successful selling program is able to better organisations ‘ net incomes and growing, uses in nonsubjective scene and proctors consequences.

So to derive a successful market program it is necessary to understand the current state of affairs comprehensively and trends impacting the hereafter of the organization.Situation analysis plays a critical function in developing marketing plan.First of all, it ‘s assist our company to take the dynamic selling environment in the places market that will assist to take the uncertainness, menaces and chances for sellers. Selling directors who success to cognize alterations in environment through state of affairs analysis can take their companies to capitalise on chances and header with menaces created by alterations.

Then, consistently analysing situational environments in order to place our clients and understand their demands. There are certain chances for Shoes Company, such as addition more and more work forces and adult females design and advanced aggregation, addition market and market portion through integrated PR, advertizement and promotional run. Besides chances there is a batch of menace that create barrier for Shoes Company.

These menaces are as follow:

O Increasing competition in ethical design.

O Ethical trade name is non taken earnestly by public.

O High monetary value and trueness lessening trueness towards trade name.

SWOT Analysis

SWOT analysis will assist me to place our company strength, failings, chance and menaces internally and externally both. Through this, we can easy place our HUNKY rivals in the market and one time we know the company failing and what sort of oppournity we have for the present and future chance so we can easy do cost effectual IMC program and strategic IMC program for the company. In SWOT analysis of the company, we have find the following that will assist to do more strategical and cost effectual IMC program:

Strength: –

O Easy handiness of low cost for all degree of people.

O Massive institutional support for proficient services, planing, work force development and selling.

O Exporter-friendly authorities policies for places industry.

O Well-established linkages with purchasers in all parts of India.

Failing: –

O Lack of modern coating installations for leather.

O Highly unhygienic environment.

O Troubles in accessing to proving, planing and proficient services.

O Environmental jobs.

O Non handiness of quality footwear constituents in the market.

O Lack of fresh investing in the sector.

O Uneconomical size of fabricating units.

O Weak support infra- construction for exports.

Opportunity: –

O The Indian footwear retail market is expected to turn at a CAGR of over 20 % for the period crossing from 2008 to 2011.

O Footwear is expected to consist approximately 60 % of the entire leather exports by 2011 from over 38 % in 2006-07.

O Soon, the Indian footwear market is dominated by Men ‘s footwear market that accounts for about 58 % of the entire Indian footwear retail market.

O Abundant range to provide finished leather to multinationals puting up store in India.

O Turning manner consciousness globally.

O Use of information engineering and determination support package to assist extinguish the length of the production rhythm for different merchandises

O Product variegation – There is batch of range for variegation into other merchandises, viz. , leather garments, goods etc.

O Turning international and domestic markets.

O Retain clients through quality supplies and timely bringings

O Aim to show the client with new designs, substructure, and state & A ; company profiles.

O Use of modern engineering

O De-reservation of the footwear sector.

Menace: –

O Entry of multinationals in domestic market.

O Stiff competition from other company.

O Non- duty barriers – Developing states are fall backing to more and more non – duty barriers indirectly.

O Fast altering manner tendencies are hard to accommodate for every clip for our company.

Market and Consumer behaviour analysis

In Market analysis we must see about the market size of the places industry in India. It is necessary to place that who is the major rival of our places company HUNKY. On the footing of market analysis we can easy place our rivals in this field and after that we can easy aim our metameric market which is good for our new merchandise and what sort of positioning message should be for them and how IMC will be affected for those mark market can be easy identified. First of all we will see the market size of places industry: –

O The Indian footwear retail market is expected to turn at a CAGR of over 20 % for the period crossing from 2008 to 2011.

O Footwear is expected to consist approximately 60 % of the entire leather exports by 2011 from over 38 % in 2006-07.

O Soon, the Indian footwear market is dominated by Men ‘s footwear market that accounts for about 58 % of the entire Indian footwear retail market.

O Abundant range to provide finished leather to multinationals puting up store in India.

On the footing of that determination we will make all market activities sing our IMC program. Our treatment on market and consumer behaviour will be strated to the undermentioned treatment of IMC program of places: –

The major rivals in athletics places in Indian context of the HUNKY Company are Nike, Reebok, Action places, Puma and Bata places. Apart from this some local marketer of athletics places in today ‘s scenario gives more competition because even they are non branded places but they are supplying low monetary value places. So, to confront elephantine challenges from all these we are making our nucleus value of the company that is the athletics places for all degree of people that most of the major rivals do non hold. They all ( rivals ) largely targeted the younger coevals but HUNKY Company will aim all degree of people in the athletics places section with low-cost monetary value.

Consumer Behavior analysis

In consumer behaviour analysis we have find from company selling research section that the consumer wants branded places but inexpensive monetary value. Consumer besides wants that the purchasing places can run in every environment and their societal self-importance personality besides influenced to purchase a peculiar branded places. The consumer purchasing behaviour fundamentally influenced by assorted types of publishing ad in concern magazine and Television advertizement of athletics places through different different types of famous person. They besides influenced by Newspaper ad because the newspaper is read by most of the people today ‘s. So, on the footing of this determination we emphasized our IMC planning harmonizing to client pick. We will utilize those types of IMC tools for pass oning the message to the people that will outdo for the demand market.

Competitive analysis

The major rivals in athletics places in Indian context of the HUNKY Company are Nike, Reebok, Action places, Puma and Bata places. They are the elephantine trade name in the athletics places section and they are the good established trade name. So to take a challenge in this section from these all we will make our company trade name value in the market through strong aligning message and with differentiate a alone sell belongings that is places for all degree of people and this nucleus value of the HUNKY Company will be shown throughout in IMC program. Pricing factor will be besides a major factor to distinguish to all rivals from our company HUNKY. Apart from this some local marketer of athletics places in today ‘s scenario giving more competition because they are non branded places and they are supplying low monetary value places. So, to confront elephantine challenges from all we are making our nucleus value of the company that is the athletics places for all degree of people that most of the major rivals do non hold. They largely targeted the younger coevals but HUNKY Company will aim all degree of people in the athletics places section with low-cost monetary value.

Marketing aim

After state of affairs analysis we now able to cognize our organisation strength, failing, chances and menace nowadays in environment. It provides a batch of support in scene of marketing aim. It ‘s provides a sense of way to the company that what has to done in farther selling program.

O Increase market portion up to 20 % .

O Increase sale by 50 % in 6 month from thelaunch of public run.

O Create consciousness among mark audience. Use inordinate advertisement particularly utilizing media preferred by the mark market.

O Create merchandise belonging and place among purchaser ‘s head

Selling Scheme

Toachieve this aim we implement assorted schemes.

Target market:

* Sport places for: –

Childs to up to 15 old ages

Young people

Older people above 50 old ages

Gender: male and female both

Marketing Mix Schemes: –

Merchandise: -The Main purpose of the Hunky Company is to bring forth high quality athletics places in assorted qualities for all degree of people. It is merely possible to capture the attending of the mark market. The name of our athletics places is Hunky. The company is supplying 2 old ages free serving on athletics places for the client for client satisfaction point of position.

Monetary value: – The monetary value scope of the merchandise scope will be from Rs. 200 to 1500 100. The monetary value will be depended upon the client age and size of the merchandise. The company will besides supply price reduction offer and allowance for the channel members.

Topographic point: – Thedistributionchannels for Hunky Company are as follows: –

Your browser may non back up show of this image. MANUFACTURER ( COMPANY )

Your browser may non back up show of this image. WHOLESELLER

Your browser may non back up show of this image. SHOES SEND TO RETAILER

Customer

Promotion: -In a publicity portion of the merchandise we are traveling to establish IMC program for the mark market.

Execution Tacticss

* Launch a unsighted ad run on hoardings and magazines in all A category countries of major metropoliss and magazine with regard to aim market.

* Heavy advertisement on Television, newspapers and magazines

* Set shows of places in salesrooms and major trader mercantile establishments in all metropoliss.

* Continue Advertising.

Evaluate Performance

The Goal of our selling program is to accomplish market objective that are established before execution of selling program. We evaluate and command our strategic tactics by comparing our consequence with standard established before puting of program, by mensurating client satisfaction and trade name trueness. If consequence is less than our criterion than it means there is any default in execution and monitoring in the plan. The people who are responsible for the monitoring and control of the selling program will be the Marketing Executives, Gross saless Directors, Media Managers, Market Research Departments, and the Production Managers.Some activities will be carried out for measuring the overall public presentation that will be exactly and closely measuring the effectivity of the schemes and tactics for illustration the assemblage and structuring of informations sing market, merchandise, consumers and the pricing tendencies, so the coevals of day-to-day gross revenues study should be maintained and so in the terminal uninterrupted reconfirming of the selling budget and activities by the directors of different divisions.

IMC aim and scheme

Integrated Selling Communications is a term used to depict a holistic attack to selling communicating. It aims to guarantee consistence of message and the complementary usage of media. The construct includes on-line and offline selling channels. Online selling channels include any e-marketing runs or plans, pay-per-click, affiliate, electronic mail, streamer to latest web related channels for webinar, web log, micro-blogging, RSS, cod dramatis personae, and Internet Television. Offline selling channels are traditional print ( newspaper, magazine ) , mail order, public dealingss, industry dealingss, hoarding, wireless, and telecasting. Hunky Company is developing its incorporate selling communicating programmes utilizing all the elements of the selling mix ( merchandise, monetary value, topographic point, and publicity So Incorporate selling communicating is integrating of all selling tools, attacks, and resources within a company which maximizes impact on consumer head and which consequences into maximal net income at minimal cost. Promotional activities include Advertising, gross revenues publicity, and personal merchandising activities. It besides includes cyberspace selling, sponsorship selling, direct selling, database selling and public dealingss and integrating of all these promotional tools along with other constituents of marketing mix to derive border over rival is called Integrated Marketing Communication.

Situational analysis

First of all we carried out state of affairs analysis in order to understand the job. In this we place our rivals and their scheme for illustration Reebok junnon event scheme for Reebok hub client.Then, consistently analysing situational environments in order to place our clients and understand their demands. There are certain chances for Shoes Company, such as addition more and more work forces and adult females design. In IMC situational analysis we analyze advanced aggregation, addition market and market portion through integrated PR, advertizement and promotional run. Besides chances there is a batch of menace that create barrier for Shoes Company. Under state of affairs analysis, we besides analyze fiscal place of company.

IMC aim

The IMC aim of the HUNKY company is following: –

* To Increase sale by 50 % in following six month.

* To Increase trade name consciousness.

* To Increase client trueness.

* To Increase desire of client.

* To Increase repetition purchase.

* To mensurate client satisfaction.

* To make relationship with client on personal degree.

* To command and detect public sentiment.

* To have feedback from client on regular footing.

Problem and chance

After situational analysis we must happen the job sing IMC communicating related to the current market environment. In situational analysis we find that there is a deficiency of consciousness sing the cognition of quality of athletics places. Most of the people prefer merely branded athletics places whatever the quality belongs to that peculiar branded merchandise. The job besides belongs to the people attitude towards the new establishing merchandise that is my company HUNKY. Our company Hunky when traveling to be launch new places merchandise into the market so the attitude of people towards our merchandise may non be trustworthy because several places company successful established in to the market and among them we have to make Hunky trade name positioning into the market. So we must see all these things before establishing IMC tools towards our merchandise. We will hold to besides care about the distribution channel of Hunky Company and besides about the selling mix communicating. Opportunity in the footings of the handiness of merchandise into the market and distinguishing nature of merchandise sing rivals. In Hunky we are making the nucleus value of our merchandise that is places for all degree of people with low-cost monetary value that most of our rivals do non hold. We will besides persuate sing new adding characteristic with latest engineering among people in to the market.

Communication aim

The Hunky communicating aim is to accomplish all selling aim which are prescribed in selling program through strong aligning message. As a Hunky company IMC contriver our communicating aim is to make consciousness among the people sing our merchandise. Our communicating aim is to give the proficient cognition and competitory benefit about our merchandise to the mark market. For this by the aid of

IMC program we create the trade name image of our merchandise and differentiate characteristic of our merchandise into the head of client.

Our placement message for our merchandise will be the followers: –

Be One Step Ahead in Fashion and quality with HUNKY

By the aid of this strategic aligning message we will make our trade name value among all rivals.

Budget

The companies IMC budget will be depend upon the entire aim which is to be achieved in a entire fiscal twelvemonth. In Hunky Company, IMC budget is 80 crore for the fiscal twelvemonth 2009-10. In this sum we will capture our mark market through assorted types of IMC tools through the strong placement message.

IMC scheme

Target audience: – The Hunky company mark market for the places merchandise is childs to up to 15 old ages, immature people and old people above 50 old ages. Now for this through IMC tools we target the audience who will be responsible to purchase Hunky merchandise for their households. For childs section our mark audience will be the female parent, for immature people our mark audience will be their married womans or their common friends, for old people our mark audience will be their boies or their households. So we have to flux our strategical planning through IMC tools with regard to the mark audience of our merchandise.

IMC tools used

We will utilize undermentioned tools for capturing the mark audience with regard to the mark market: –

O ADVERTISEMENT ( BUDGET- 30 CRORE )

O SALES PROMOTION ( BUDGET-20 CRORE )

O PUBLIC RELATION ( BUDGET-10 CRORE )

O DIRECT MARKETING ( BUDGET-10 CRORE )

O MEDIA PLANNING ( BUDGET- 10 CRORE )

The operational scheme of above all using IMC tools for the HUNKY places company is following: –

Ad

In advertisement portion we will use Rs. 30 crore. The chief aim of the advertizement of the Hunky company will be the followers: –

O To increase trade name consciousness.

O To inform to the mark market about our merchandise.

O To carry about the Hunky places to the mark market with regard to monetary value and quality and with our positioning message.

Monetary value Scope: – Rs.200 TO 1500 ONLY

VISIT NEAREST SHOWROOM IN YOUR CITY

Ad Scheme: –

We will develop an Ad Scheme to accomplish the aims of a run that requires the consideration to be given to both the ‘Message ‘ which will be communicated and the ‘Media ‘ through which it will be sent.

Ad Message

We are seeking to be originative, inventive and advanced in developing the advertisement message, both in footings of what is said, and how it is said?

What is said by the Hunky company: –

We will utilize here the ‘Big Idea ‘ and will usually turn to the cardinal benefits sought by the mark audience, actuating the audience to pay attending. Given the changeless hunt for new ways to appeal to aim audiences.

For illustration:

Honky trade name Places:

Keep it Simple.

Manner is nil without quality.

In this massage we are seeking to pull attending of the mark audience that without quality manner is zero.

How the company will state it: –

During bringing of advertisement massage in client head we will take the personality symbol, lifestyle and musical as consideration. The advertizement will be to advance positive feelings of merriment, contentment, and felicity.

Choosing Ad Media: –

In add-on to make up one’s minding upon the content, manner and tone of the advertisement message, the media through which the message will be communicated to the mark audience must besides be selected. For the athletics places advertisement we will choose media such as Television, Magazine, Newspaper and Outdoor.

Television ad will supply me following benefit: –

O Dynamic attending of the people, uniting ocular consequence, sound and alive stimulation.

O Strong possible Impact & A ; High market coverage on our mark market.

Newspapers: –

From this media we will make the followers: –

O Capturing the market through aiming the profiling readership.

Magazines: –

From this media we will make: –

O High quality reproduction, of colour images

O Targeting through their specializer publications

O Good base on balls on readership

Outdoor: –

O Hoarding

O Shop Boards

O Railway station and Airport

Gross saless PROMOTION

In Gross saless publicity we will supply assorted consumers and trade promotional tool such as discount, price reduction, gift, competition, vouchers, monetary value trade, competition game, trying to the mark market to increase sale of Hunky places.

There are certain aims of the Hunky places gross revenues publicity.

O To increase immediate merchandise sale

O To increase support among the seller ‘s gross revenues force.

O To derive the support of the trade in marketing the merchandise

Promotion Schemes: –

By the aid of Promotional scheme we will seek, to alter consumers ‘ purchasing behaviour, to increase trade name image, to increase net income, to increase sale of our merchandise. We will use two sort of sale publicity, one is directed toward consumer and other one is directed toward trade such as trader, provider, retail merchant etc.

Consumer sale publicity tool: –

We will use following promotional tools addition sale.

Monetary value trade: -Price trade is impermanent decrease in monetary value of merchandise. We will supply two type of monetary value trade: cents-off trades and price-pack trades. Price trade will be is given at assorted times to excite purchase of Shoes.

Coupon: – A voucher is typically a printed certification giving the carrier a declared monetary value decrease or particular value on a specific merchandise, by and large for a specific period. In this we will supply assorted sorts of voucher that contain assorted price reduction monetary values so that client gets the advantage of this price reduction and purchase places at low monetary value.

Offer: In this we offer that those Customers who buy places will have a free Jersey. The offer will be depending upon season to season. The run will be marketed with print and Television ads, and will have Television commercials with instrumentalists singing screens of their favourite vocal. The company will be offering those gathered screens in a Cadmium at retail locations for clients who make a more than 10 places.

Premium: We will supply offer of some gift or at bargain monetary value to promote client purchasing.

Ad Fortes: -Advertising fortes besides call a promotional merchandise. It will be largely given to our loyal clients. It includes assorted cards like birthday card, New Year card. It will be largely done to retain the old client.

Trade sale publicity tool: –

Aims of Trade Gross saless Promotion of the Hunky company will be: –

O Gain/maintain distribution

O Influence resellers to advance merchandise

O Influence resellers to offer monetary value price reduction

O Increase reseller stock list

O Defend against rivals

O Avoid decrease of normal monetary values

There are assorted sale publicity tools which apply by the Hunky places that stimulate trade to advance company merchandise.

Trade Allowances: –

In this we will supply short-run particular allowances, price reductions, or trades granted to resellers to excite reseller to rapid purchase of their merchandise.

Point-of-Purchase Display: –

In this we are by and large used at the retail degree to name client attending to a featured merchandise. In this company employees observe every retail store and that show more company merchandise will be victor of particular gift or award.

Trade Shows: –

In this the company will take part in trade show in periodic, semi periodic public event at which provider displays the Honky places and provides information about the company shoes quality and monetary value to possible purchaser.

Public relation

Public relation is nil but making a favourable relation for organisation and merchandise which is done through used of assorted communicating channel and tool. So public relation is largely done to better the image of company and construct good image in clients mind.

The chief aim of the Hunky company sing public relation will be the followers: –

O Building Product Awareness: – We will make PR component that generates consumer attending and consciousness through media arrangements and particular events.

O Making Interest: in this Public Relation make public involvement to utilize the merchandise at least for one time clip to the mark market.

O Supplying Information: -Through the Public relation we can supply a batch of information about company activity and their merchandise characteristic and service provided by company. This information is delivered to public through newspaper, article web site, and indirect stuff. PR helps in presenting information that helps to public in understanding the merchandise characteristic.

O Stimulating Demand: -A positive article in a newspaper, on Television, intelligence show or mentioned on the Internet, frequently consequences in a discernible addition in merchandise gross revenues.

O Reinforcing the Brand: -We will besides make trade name support by keeping positive relationships with cardinal audiences, and thereby helping in constructing a strong image.

Direct Selling

By the aid of direct selling Honky Company straight touch with clients through mail order, telephone, facsimile, e-mails, or web merchandising, instead than through retail merchants.

The chief aim of the Hunky company to make the direct selling will be the followers: –

O To ageless trueness of clients.

O To keep direct touch with the client

O To keep regular relation to the client with regard to our client

Scheme: –

We will implement the undermentioned scheme in direct selling: –

O We will direct a mail-order catalog to about prospective clients.

O 100-page catalog, developed in-house, marks both work forces and adult females and besides contains 10 pages devoted to place merchandises.

O We will use assorted tools for this: -Direct mail, Telemarketing, Email Marketing, faxing, Voicemail, Couponing, Direct response telecasting selling.

Media Planning

Print ads will be run in monthly concern and societal magazine publications. Ads will besides look in non-traditional manner locales as Parenting and home-decor publication Domino. We will utilize the undermentioned tools for this: –

O Media used: -TV, imperativeness, outdoor, sponsorship, online

O Agencies: Bharat ad bureau Poster Publicity,

O Media thought: Hit the mark audience of childs to up to 15 old ages, immature people and old people above 50 old ages.

Evaluation of IMC planning procedure

Evaluation of IMC planning of HUNKY places is necessary because: –

( 1 ) The cost of advertisement and communicating gyrating twenty-four hours by twenty-four hours so it is necessary to happen out if the investing in IMC program of the HUNKY SHOES is bring forthing any return or merely traveling down the drain.

( 2 ) As a IMC contriver we can easy measure assorted communicating options such as alternate message, IMC tools, media and vehicle and take the most effectual 1s.

( 3 ) It will supply complete feedback sing the public presentation of assorted strategic options and supply a footing for future planning.

( 4 ) Evaluation will increase the effectivity of marketing communicating by extinguishing unproductive options and adding productive options.

( 5 ) Evaluation will supply me the complete sing our entire IMC budget disbursal that the budget is expense in the right manner or non.

( 6 ) It helps to judge the behavioural consequence of the mark market.

( 7 ) It will assist to judge the communicating oriented consequence of the mark market.

( 8 ) It will assist to apportion as a guider about the new mark market for farther new execution of IMC program

Finally at last we will add few words with it that this IMC program for HUNKY places company is for the fiscal twelvemonth 2009-10 is prepared by me by taking the new bing company of my ain and non copied from any other beginnings. Prepared by ( ASHUTOSH RANJAN 10804580 ) . Thank you to all for co-operation in showing my IMC program in forepart of my well-thought-of sir Mr. Navjit singh and makes the session successful.

The Australian UGG Company Major Assignment

The following report analyses the demographic segment which is classified by gender and the age-cycle is targeted by The UGG Company. Firstly, the report briefly describes the background of UGG. Secondly, it shows a general impression of the footwear market and identifies its microenvironment and macroenvironment. Thirdly, it emphasizes the product of UGG and points out the three levels. Fourthly, it judges the two variable segments and illustrates the demographic segment in detail. Then, the report also exhibits its product categories. Finally, it draws conclusions sum up, and gives the recommendations. The secondary information which has a close relationship to marketing is the sources of the report. For example, academic journals, textbooks, statistics from formal organizations and company websites, and newspapers. There are some assessments to evaluate the field of marketing in The UGG Company after assessing.

There are two main recommendations for The UGG Company to improve its business:

1. UGG should improve the marketing information system in order to do some research to satisfy customers’ needs and wants.
2. UGG should utilize sustainable material to produce products aiming at undertaking its social responsibility and gaining reputation.

Introduction

1. Background of UGG Company The UGG Company was first established in California by Brian Smith, a young surfer from Australia. It was acquired by Deckers Outdoor Corporation in 1995. Thompson (2004) reports that the sale astonishingly increased from $250,000 to $11. 75 million between 2003 and 2004. The brand becomes national and year-round nowadays because of more than 70 shoe styles except its classical-style boots and slippers. He also mentions that the sales project in 2004 was set up at $75 million which was in double the growth of 2003’s.
2. Assumptions and limitations. The limitation of the report is not enough adequate information presenting. With the development of globalization, the company should take action depending on the varied circumstances to have a strong position in its marketplace.
3. Overview of the market IBISWorld Pty Ltd (2009) defines the footwear retail as a connection between the manufacturing company and customers. It also identifies that the shoe retail is mainly concerned about purchasing and promoting attractive shoes without any change to the customers. Other activities such as customer service, cash handling are also involved in the footwear retail. According to the statistics by IBISWorld Pty Ltd (2009), the industry has a revenue of $2475. 0 million between the years 2008 and 2009. But meanwhile, it experienced real growth of -2. 9%.
4. The marketing environment

The Microenvironment

1. Key competitors. The footwear market is a competitive marketplace because of globalization. There are 3,238 retails providing a large number of appealing shoes to customers in Australia and there are 48 sheepskin retails among them. Barack (2008) recognizes that in the present environment it is a difficult task for retailing to maintain the same revenue as before. Other famous brands like Chukka boots and Rocky are the direct competitors of UGG. IBISWorld Pty Ltd (2009) asserts that Ascendia Retail Pty Limited is the top indirect competitor to UGG because it holds 16% of the Australian market. Followed by that, Betts Group Pty Ltd takes up 6. 8%. And 77. 2% of the market is made up of other companies such as NIKE Australia and Foot Locker.

2. Other environments. The footwear retail industry including UGG often depends on resellers which belong to marketing intermediaries like Myer to promote its goods.

Product Footwear can be classified into the category of shopping products which are evaluated in the aspect of comfort, quality, price, and style.

The three-level of product.

1. Core Product. The core benefit that consumers are really purchasing in the market of footwear is to protect their foot. According to what customers actually want, UGG provides sheepskin footwear which can control the temperature of the bare feet to close to the body regardless of the temperature outside, especially in winter in order to keep customers warm.
2. Actual Product. The actual product defines as “a product’s parts, styling, features, brand name, packaging, and other attributes that combine to deliver core product benefits”. Deckers Outdoor Corporation (2009) claims that the philosophy of UGG is to provide comfortable, high quality, attainable as well as fashionable products aiming to deliver core benefits. It also points out that UGG®Australia is a relatively well-known brand because it is the world’s largest purveyor of grade-A sheepskin. Furthermore, the actual product of UGG includes its relevant sheepskin care product which is a unique product to retain customers.
3. Augmented Product. A number of authors propose that augmented product is “additional consumer services and benefits built around the core and actual products” (Kotler et al. , 2007, p. 388). UGG creates a website to give convenience for customers searching for information and knowing more about UGG. Moreover, UGG provides not only sales service telephone number and e-mail address, but also aftersales service to maximize customer satisfaction. These intangible augmented products contribute value to the core product in order to gain a competitive advantage.
4. Brand, packaging, and labeling UGG achieves in the selection of brand name because its brand name can be distinguished from its competitor and easy to recognize. Currently, UGG uses a brand extension strategy to launch new products in men’s footwear. In addition, UGG labels “made in Australia” in the packaging to differentiate from others.
5. Target segments Due to differential needs and wants, the market can be divided into three segments: Gender, Age, and life-cycle stage, and Geographic segmentation. The target group for UGG is the demographic segment which classified by gender and age-cycle.

Demographic segment—Gender, Age, and life-cycle stage segment

1. Evaluation of the needs and wants of the segment (key users benefit). Classifying segments effectively can bring success to the company. Kotler et al. , (2007) assert that gender segmentation has been widely used in the business of footwear. Therefore, the category of footwear retail can be categorized into three main parts: women, men together with children and infants footwear. IBISWorld Pty Ltd (2009) evaluates that women’s footwear occupies a dominant position in the market because it holds 50. 0% of the Australian market share. However, men’s footwear as well as children’s and infants’ footwear has the same percentage which takes up only half of the percent of women’s footwear in the market share (25. 0%). UGG Company uses a differentiated market-coverage strategy to target several market segments and offers several different products. UGG sells the shoes of women as well as men, but it started from women’s boots originally. It seems apparent that the frequency of purchasing shoes for women is much higher than men’s. Consequently, UGG focuses on women want initially. Women select their desired shoes in the aspect of styles and colors. Typically, women regard the styles and colors as fashion. Most of them will try their best to follow the current fashion. Deckers Outdoor Corporation (2009) declares that providing fashionable products is one of the objects of UGG Company to satisfy the women’s want of fashion. In the modern world, many famous stars like Julia Roberts wearing the boots of UGG causes a fashion of wearing UGG boots. Compared with women, men are more concerned with the price and quality of the shoes. According to Deckers Outdoor Corporation (2009), UGG Company offers footwear that values comfortable and the highest quality in order to attract men customers. It also claims that UGG Company only uses the perfect material to produce products such as the highest quality leathers, suede, and the world’s finest sheepskin to keep the user warm and comfortable. For instance, the company only uses vegetable-based dyes and put shoes in a refrigerated container to prevent melting when transfer.
2. The market positioning of the segment The UGG Company chooses product differentiation as its positioning strategy. Deckers Outdoor Corporation (2009) promises that it produces accessible luxury products to differentiate from other competitors. For example, Women’s footwear of UGG is range from $60 to $400. As a result, the behaviors of buyers who buy the products of UGG are affected by their economic situation.
3. The trend of the segment Currently, men prefer casual and fashionable street shoes rather than athletic shoes. This trend brings new opportunities for the company. O’Loughlin (2005) demonstrates that UGG Company expands its business by crossing gender lines to target men. Sales to men of UGG are up to $53. 4 billion in 2006.
4. Geographic segment IBISWorld Pty Ltd (2009) lists the footwear retailing locations in Australia by states. A number of authors claim that the geographic segmentation brings benefit in satisfying local differential needs. For example, Victoria can be thought of a competitive and mature market in terms of high average income. According to the data by yellow pages Australia (2009), there are 13 retails selling the products of UGG in Victoria.

The product categories

1. Evaluation of the categories. The UGG Company supplies a strong market for unique footwear to outwear. In brief, it involves a variety of boots, casual, slippers, and accessories. The category satisfies a variety of customers’ desires. The unique boots bring warmth and luxury to buyers.nThe series of casual shoes meet the expectation of customers who prefer a casual lifestyle. The slippers and accessories offer a varied choice for customers. Moreover, the company also provides care products for customers to take great care of the sheepskin shoes for the sake of retaining customers.
2. The trend and development of the categories Edelson (2009) report that the company will focus on its outwear line in the future to appeal to more customers who seek sheepskin outwear. She also mentions that the company is interested in expanding the collection of accessories and designing handbags for UGG fans. Conclusion From analyzing and evaluating the statistics searched, we can conclude that UGG can target the demographic segment which is classified by gender and age-cycle effectively. It takes the microenvironment which includes marketing intermediaries, customers, and competitors together with macro environment which involves demographic, economic, political, and cultural environment into consideration. Furthermore, it identifies the emerging trend of the product categories and discovers the opportunity for attracting potential customers to make the profit as high as possible. However, UGG still lacks efficient information about marketing intelligence and research.

Recommendations

1. UGG should improve marketing information system in order to do some research to satisfy customers’ needs and wants. David (1989) emphasizes that marketing research can assist marketing managers perform and recognize the market segments well. For UGG, the company should design some surveys to collect primary data to analyze customer preferences such as the colors, size, and length.
2. UGG should utilize sustainable material to produce products aiming at undertaking its social responsibility and gaining reputation. UGG should continue using vegetable-based dyes and healthy material.

Reference

1. List Barack, L. (2008).
2. From Ugg to Utterly Impressive. On Wall Street, 18(9), 64. Blakeley, K. (2004).
3. Foot Fetish. Forbes Global, 7(1), 20. David, C. (1989).
4. Trends in Marketing Research. Marketing Intelligence & Planning, 7(9/10), 17-24. Deckers Outdoor Corporation. (2009, September 29). Retrieved November 05, 2009, from http://www.uggaustralia.com.au Dibb, S. & Simkin, L. (1991).
5. Targeting, Segments, and Positioning. International Journal of Retail & Distribution Management, 19(3). Edelson, S. (2009).

Lithuanian Footwear Manufacturing Industry Analysis According to Porter‘s Five Forces Introduction For all times footwear has been a basic necessity and just recently it has become a matter of fashion and prestige, thus making huge changes in footwear industry: it expanded and became well differentiated. Therefore, in order to perform and compete effectively, companies have to analyze their external environment. This paper will concentrate on Porter’s five forces that shape competition in Lithuanian footwear industry. Rivalry A decade ago there were much more footwear manufacturers in Lithuania.

However, right after Lithuania joined the European Union, footwear imports from China to the European Union increased eight times. It caused huge profit losses for Lithuania’s footwear manufacturers and many of them withdrew from the market. Today there are two main footwear manufacturers UAB “Sabalin” and UAB “Lituanica”, a few smaller manufacturers such as UAB “Paliutis” and UAB “Evenida” and there are also some individual businesses which do not mass-produce but manufacture shoes just for individual orders. As we can see there are not many Lithuanian companies but their competition creates the rivalry a positive sum.

The largest companies UAB “Sabalin” and UAB “Lituanica” produce leather shoes for the whole family and export most of their production to other European countries, especially to Great Britain, Latvia and Finland (http://www. lituanica. info/m93-1. html, http://www. visalietuva. lt/imones/info/sabalin-uab). Smaller manufacturers concentrate on specific footwear production such as boots and working shoes or take orders from Lithuania’s companies and produce big quantities of specific safety shoes or shoes which are part of employees’ uniform.

Footwear manufacturing usually is not their only scope so when they have hard times in shoes manufacturing, they concentrate on other fields. For example UAB “Paliutis” produces not only boots but also other rubber and plastic production (http://avalyne. paliutis. lt/index. php), UAB “Arnesima” produces safety working shoes and, in addition, they offer safety gloves, waterproof clothes and etc (http://www. arnesima. lt/). Individual businesses do not have a great demand because Lithuanians prefer custom boots just for ery important occasions, for example, weddings or when the foot is not standard and they cannot find suitable shoes in shoe stores. However, the main competitors for footwear manufacturers in Lithuania are Chinese footwear producers. According to UAB “Lituanica” director D. Keltuva, just the leather they use for a pair of shoes costs the same as the finished Chinese pair of shoes. To become more competitive, Lithuanian manufacturers cut their prices; however, it was impossible to become equivalent competitors because Chinese labor force was far and away cheaper.

Besides, young to middle-age Lithuanians are concerned about fashion and prestige so Lithuanian manufacturers are unable to compete with designers’ shoes or well known brands. UAB “Sabalin” director Regina Arcisauskaite claims that her manufactory orients to segments from middle to high prices and to middle class people; however, this company does not aim for luxurious or fashionable products’ segment. New entrants Recently not a single bigger footwear manufacturing business has been started. The main reason is the economic recession, which has caused the decrease in footwear sales.

Another reason is still huge competition from China. However, today shoe shops “Lietuviska avalyne” and “Dolita” report that sales in Lithuania are constantly increasing and people, especially elder ones, prefer more expensive, but quality Lithuanian shoes from natural leather and fur. Besides, Lithuanians have turned back to small boutique shops and prefer shopping in places which offer unique products and comfortable surroundings. This probably will cause an increase in number of small shops, run by small businesses owners or new entrants who will be willing to fill this niche.

Lithuania’s government policy is favorable to new entrants and offers a lot of ways to start a new company. The main requirements for new business entrants are quite high government taxes and the initial capital in some cases. However, new entrants face one huge barrier to entry. Most Lithuanians do not trust Lithuanian production; they do not think about the quality and price and choose fashionable foreign footwear. Moreover, incumbents have already survived through Chinese invasion and recession so they have a lot of experience.

As soon as the newcomers face the first difficulties they might get lost and go bankrupt just like many other Lithuanian footwear manufacturers did five years ago. This might discourage them from entering this market. One more important barrier is that in order to open a new footwear manufactory a huge amount of initial capital is needed. New entrants need new premises, inventories and qualified employees. This may also deter a lot of newcomers from entering this market. Substitutes Shoe market in Lithuania is tremendous.

You can see shoe shops everywhere and shoes in various styles, colors, designs and prices are brought there from a lot of different countries. There are a lot of other shoe stores which offer quality footwear. These shops gain advantage because customers are exposed to a great choice, meanwhile people can merely see Lithuanian shoe shops in shopping centers or in the streets. Moreover, Lithuania’s youth tends to wear mainly sports shoes and frequently replace them with new ones. They wear them both in summer and in winter, so they are not looking for quality and long lasting shoes which are rather expensive.

In this age of new technologies another substitute is available for everyone – online shops or eBay. Lithuanians find it cheaper to order something from overseas than to buy it in local shops. This phenomenon is also applicable to footwear. Most of the online shops have return policies so people are not afraid to buy and, if it is necessary, to change the item. Finally, parents tend to buy footwear for their children in second-hand shops. They see no need to spend huge amounts on shoes when their child’s feet are constantly growing. The same trend is seen among elder people.

Pensions in Lithuania are relatively low so the pensioners cannot afford new quality shoes. Therefore, they go to second-hand shops where they can find almost new and really quality foreign footwear; they even can find branded shoes in very good condition. Since the price is still a very important factor in choosing shoes, nowadays most Lithuanians try to find substitutes which could offer suitable quality and price ratio. Power of suppliers Today Lithuanian footwear manufacturers buy raw materials mainly from Lithuanian companies, for example, leather processing companies AB “Siauliu Stumbras” and UAB “Naturali oda. There is a great variety of available leather and other raw material suppliers in Europe so footwear manufacturers are not dramatically dependent on their suppliers and can easily switch their suppliers since switching costs are low. However, leather processing companies depend on economic situation and cattle ranches. The manager of leather processing company “TDL Oda” Vidmantas Simkus explains that when economic crisis occurred, the demand for meat decreased thus the number of grown cattle also decreased.

It resulted in lack of raw leather material last year and was the reason for double increase in price. Respectively, Lithuanian footwear manufacturers had to buy more expensive raw materials, their product prices increased and they became less competitive in shoes market. Besides, footwear manufacturers are not the only ones who use leather for their production. Coats, gloves, hats, handbags and some bijouterie are made from leather so leather processing companies have some power to choose whom to sell their production to and in this way to raise the prices. Power of buyers

Footwear is necessary for every person so they cannot avoid buying shoes. However, they can choose where and what kind of shoes to buy. Generally, in footwear industry buyers do not have a lot of power, but in Lithuania their power is significant. Since there is great variety of imported shoes and just a few Lithuanian footwear shops, the buyers’ choices determine which shoe shops (and thus which manufacturers) will survive. There are very few shops in Lithuania which sell both foreign and Lithuanian footwear; Lithuanian footwear is sold mostly in special stores.

Since Lithuanians do not trust Lithuanian production, their preference might cause bankruptcy for some shops. It would mean that Lithuanian footwear would be sold just outside the country. Individual businesses owners are greatly dependent on the buyers because they are their main customers and if they are not willing to pay for original custom shoes, these businesses are sure to face a lot of difficulties. On the other hand, Lithuanian footwear in export countries has a lot of loyal customers who recognize products’ quality and reasonable price.

UAB “Lituanica” director Kestuts Deltuva says that their sales abroad are constantly increasing and they have a lot of new orders and now they are having a very busy season. Conclusion All things considered, Lithuanian footwear manufacturing industry is full of opportunities. Rivalry among Lithuanian footwear producers is rather weak. Since they do not intensively compete in Lithuania’s shoes market, it creates some opportunities for new entrants. This industry is open for new entrants who should consider different strategic plans and try to meet the demand for both quality and fashionable footwear in Lithuania.

The main problem that Lithuanian footwear manufacturers face is a great variety of substitutes: shoes of different brands, styles and origin are easily accessible, and also different places and ways of acquisition are available. Suppliers do not have significant power; however, buyers are the main force which determines which companies will survive in Lithuanian footwear manufacturing industry. References June 27, 2005. Avalynes gamintojai siekia ES apsaugos. Retrieved from http://www. zebra. lt/lt/naujienos/verslas/avalynes-gamintojai-siekia-es-apsaugos-72238. html June 2010.

Footwear Industry Profile: Europe. Industry overview. Retrieved from Business Source Complete Inciuriene, Sigita. November, 2010. Vidmantas Simkus: Man geriausia Siauliuose. Retrieved from http://lics-siauliai. lt/wp-content/uploads/2010/02/Mes-Siaulieciai-Nr61. pdf August 29, 2005. Kinu batsiuviai verzia kilpa Lietuvos avalynes gamintojams. Retrieved from http://www. verslobanga. lt/lt/spaudai. full/4312ada8d1f1a October 18, 2010. Lietuvos batsiuviai be batu nelieka. Retrieved from http://www. verslozinios. lt/index. php? act=mprasa&sub=article&id=26957