Metro Shoes

METRO SHOES FINAL REPORT

1/9/2013

Submitted by:

Fatima Ahmed

Mareeha Farooq

Mohammad Ahmed Ghafoor

Sarosh Tasneem Raja

Shahzeb Farrukh

Sumbul Afzal Rao

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Contents INTRODUCTON .......................................................................................................................................... 2

CURRENT MARKET SITUATION ............................................................................................................ 2

Market trends: ........................................................................................................................................... 2

Existing brands.......................................................................................................................................... 3

Marketing strategy for brands ................................................................................................................... 3

DETAILED SEGMENTATION................................................................................................................... 5

Segmentation............................................................................................................................................. 5

Targeting ................................................................................................................................................... 5

Positioning ................................................................................................................................................ 5

MARKET ANALYSIS ................................................................................................................................. 5

Porters Five Forces ................................................................................................................................... 6

SWOT ....................................................................................................................................................... 8

PROMOTIONAL MIX ................................................................................................................................. 9

Objective ................................................................................................................................................... 9

Promotional Mix Tools ............................................................................................................................. 9

MARKETING COMMUNICATION STRATEGY ................................................................................... 10

TACTICS AND ACTION PROGRAM ..................................................................................................... 10

Advertising .............................................................................................................................................. 10

Sales Promotion ...................................................................................................................................... 12

Social Media Marketing .......................................................................................................................... 13

EVALUATION PROCESS AND MARKETING BUDGET ..................................................................... 14

Efficiency ................................................................................................................................................ 14

Effectiveness ........................................................................................................................................... 14

Marketing Budget ................................................................................................................................. 145

2

INTRODUCTON

Metro Shoes is one of the most successful shoes brands of Pakistan and has a history of

delivering high quality shoes. The first store was opened in 1986 with the mission to meet the

footwear needs of the market. From that time onwards there was no looking backwards. It

originated from Faisalabad and is now spread over country having branches in Islamabad,

Rawalpindi, Lahore Gujranwala Sialkot, and Rahim Yar Khan Etc.

Within a few years times, it is ranked amongst the most worn and liked shoes in the country.

Metro Shoes offers very stylish and trendy shoes with classic fit and modern shape. It offers a

variety of products for men and women including shoes, bags and clutches. New collection is

introduced every summer and winter with new shoes coming in for special occasions like Eid

and wedding season. Metro Shoes has an official website also where customers can shop online.

CURRENT MARKET SITUATION

The Pakistani footwear industry is quite up to date and is evolving continuously with the passage

of time. Market trends and consumers preferences are changing very swiftly and this is also

shaping up the sort of offerings in the market for the consumer. The presence of leading

international brands, strong power of media, frequent internet surfing and wide variety of options

for the consumer has shaped up the competitive environment. This also forced the general

quality of the product offerings to increase in the footwear industry. The consumer is more aware

and conscious than was even before.

Our target market of affluent, chic, social, and trendy and fashionably up to date ladies are even

more so a tricky and demanding consumer. They know their trends and certain qualities and

features attract them. To target them and convert their aspirations into a purchase behavior can

be a tricky task.

Market trends:

In the previous decade, a lot of new market players have entered the footwear industry and

brought new trends and styles for good. As the competitive environment shaped up and more

options were available in the market, companies got serious. It led to a major shift in trends in

the footwear industry. Both quality and styles improved. Prices were competitive and a customer

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centric focus was envisioned and also later reflected in the products. Not just local players, but

international styles and inclinations were also studied and embraced in the local market.

Currently, wedges and extra bling are the most desirable styles in both sandals and shoes. Jute

shoes were seen ruling the racks in the summers but now that winter is here leather and suede

shoes are on everyone’s wish list. Trendy shoes with buckles, studs, bows and fur are selling

like hot cakes. For long boots, block heels are incorporated to give it a more trendy and formal

look. Uggs, pumps, long boots, combat boots, peep toes, moccasins and wellington boots are

appropriate to beat the cold and keep your toes warm whilst still being trendy, stylish and

making a fashion statement.

A broad spectrum of colors and tones are available in the market. Neutral and earthy tones that

go with the subtle and calm mood of winter while the bright and funky colors that break the

monotony and stand out on a beautiful sunny day.

Existing brands

Various brands of local and international repute are present in the market providing the consumer

with various options and a diverse selection. Considering our target market which is the high end

and upper strata of the society, only a few brands have an impact.

We have divided these brands into four categories

Local (Stylo, ECS, Walkin, Stiletto)

Foreign (Charles and Keith, Marie Claire, Lark and Finch)

Exported shoes (Dwatson, Haroons, Illusions)

Retail outlets (Stoneage, Outfitters, Crossroads, Breakout)

Online and sell-at-home players (Stylista, Daraz.pk)

Marketing strategy for brands

Not all of the categories follow a marketing strategy but those who do; they adapt differentiation

one way or the other. The difference is how they go about their strategy and the factors, features

and benefits that are being highlighted while differentiating from the competition.

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The local players try to get an edge by providing comparatively low priced footwear (though still

the prices reflect that they are high end shoes). Amongst all these categories they advertise and

market their brand the most. Their advertisements are seen on maximum mediums as they use

print ads, billboards, internet marketing, TVCs. The retail outlets differentiate themselves on the

basis of a style statement and fashion forward image that they have in the market. They also use

in store marketing, billboards and prints ads to market their footwear. But the focus is not just on

the footwear, the advertisement focuses on a whole look including clothes, footwear, accessories

etc.

Exported shoes are available at trendy stores like Haroons and Illusions but they do not go for

marketing the shoe segment of their business. Though the shoes are imported and of good quality

and style, one would never see them marketing about it. Dwatson has ranges in shoes that may

be no store in the twin cities does but due to lack of marketing, people don’t even know that they

also sell footwear.

The foreign brands do not need to do much as they can easily differentiate on their brand names

and the reputation that their brand enjoys being a foreign brand. Such stores just go for extensive

and intense marketing in the launch period to create awareness and to make their mark in the

market. After that the consumer is drawn towards their store themselves. like Kenneth Cole,

Nine West, Timberland, Puma, Gucci, Charles and Keith, Mango, Lacrosse, Vans, San Paulo &

Alpargatas etc. They usually market only over the social media and interact direct with the

customer.

Online and local players who export shoes or get them from abroad themselves employ no

marketing technique and market themselves on the basis of the brand names that they are selling.

They usually have footwear of brands like Kenneth Cole, Nine West, Timberland, Puma, Gucci,

Charles and Keith, Mango, Lacrosse, Vans, San Paulo & Alpargatas etc. They usually market

only over the social media and interact direct with the customer.

5

DETAILED SEGMENTATION

Segmentation

We are focusing on the segment of market that feels individuality and expression as essential

parts of self-definition. Hence Metro Shoes offers footwear that promotes individuality and

uniqueness while at the same time gives a fashionable and trendy look. The segment Metro

Shoes will primarily focus on will be customers who walk along the fashion

Targeting

Keeping in mind the proposed segmentation of Metro Shoes, the target market is the upper

middle class. Upper Middle class has the money as well as the desire to buy sophisticated yet

trendy and colorful accessories to complement their daily wear. Metro would help this segment

to define their individual personality by offering them trendy shoes and accessories.

Positioning

Based on the segmentation and targeting of Metro shoes, we would position Metro Shoes and its

products such that it gives an aura of high end wear and also give a premium look. One reason

why Metro Shoes died down is because it became too common and nobody wanted it anymore.

To cater to such issue, we will target upper middle class who takes fashion seriously and

introduce product lines rapidly.

The positioning statement of Metro Shoes

“We will cater to the ever changing fashion and trends by offering premium products that are

unique and fashionable. We are the trend-setters not followers.”

MARKET ANALYSIS

Major products sold by shoe stores include women’s casual and dress shoes (35 percent of

industry revenue); men’s athletic shoes (20 percent); men’s casual and dress shoes (13 percent),

and women’s athletic shoes (5 percent). Other products include handbags, hosiery, and jewelry.

Companies may specialize in men’s, women’s, children’s, or athletic shoes. Over half of all shoe

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retailers are family shoe stores, which offer merchandise for multiple targets.1 (Pakistan Shoe

Industry, 2011)

Porters Five Forces

To better understand the shoe industry in Pakistan, this particular sector is being assessed with

the help of Porter’s Five Forces Model:

1) Existing Rivalry

The Shoe industry in Pakistan is at a mature stage and therefore the competition among

the players to snatch away market shares is VERY HIGH. Margins are thin, there are no

chances of further growth and every company wants to dominate the market. Therefore,

they compete on prices rather than differentiation and follow competitive pricing

strategy. This could impact metro to an extent because even though it launches its new

variety from time to time, the only time when it would be able to make profits would be

the sales season via sales promotions.

2) Threat of New Entrants

The threat of new players entering the competitive landscape is LOW. Because the there

are no growth opportunities in the mature show industry and the existing rivalry is

already fierce. No further innovation can be expected since companies all round the

world have already brought their footwear in the Pakistani market hence margins for

growth through differentiation strategy offers no grounds. Moreover, the potential of

existing big players to compete the cut throat rivalry on prices and the economies of

scales that they have achieved over time raise barriers to the entry of new players.

3) Threat of Substitutes

The shoe industry is fortunate for not having any indirect substitutes like many other

industries. But it faces quite a threat from the direct substitutes available from global,

international and local brands available in the market today. Hence the threat of

substitutes in the shoe industry is HIGH. A customer can easily deviate and switch to new

footwear just as quick, depending on the price, its uniqueness, its quality or with

1http://www.hoovers.com/industry-facts.shoe-stores.1520

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changing fashion preferences. Moreover, with so many resources available it is very easy

to replicate a firm’s own product or bring the latest hip fashion’s replica.

4) Buying Power of Buyers

With a fierce competition among numerous players in the market, that offer competitive

prices, it has become very easy for the consumers to pick from the large variety of

substitute brands available. Therefore, buyers tend to exercise a HIGH bargaining power.

5) Buying Power of Suppliers

The bargaining power of suppliers in footwear industry is LOW. Shoes are manufactured

primarily from raw materials including rubber, leather, cotton and nylon. These materials

could be classified as commodities, where the manufacturing process actually adds to

their value. Therefore firm with greater brand equity and a strong image have absolute

advantage and power over their suppliers. Most importantly, firms are able to switch

between suppliers quickly and cost effectively, therefore these suppliers become

dependent on these firms for survival. For this reason, the suppliers have limited

bargaining power, and little impact on profit potential.

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SWOT

STRENGTHS

A well-known and well established

brand

High quality stylish footwear with a

wide variety

Appeals people of all ages primarily the

major population chunk i.e. Youth

Strong focus on latest trends and

consumer preferences

Valuable partnerships with D&G,

Adidas and Nike as a retailer.

WEAKNESSES

Does not have international presence.

Does not manufacture men’s wear.

Limited advertisement campaigns are

insufficient.

Inexpensive price tags signal low quality

and lesser durability

OPPORTUNITIES

Sponsor Fashion shows and endorse the

brand through fashion icons to increase

brand equity

Exclusive distribution would help

position Metro as a high end brand

Expand into international markets with

the help of partnerships with brands

focusing similar values and target

audience.

Expand into trendy accessories e.g.

handbags

Increase awareness about Metro being

an impression of Individuality and self-

expression

Raise awareness about the importance of

good quality shoes for healthy feet

THREATS

With the national economic situation,

people tend to switch to low end brand

or cost effective products.

Many local vendors have been able to

replicate branded shoes

Company needs to be highly responsive

with day to day changing fashion trends

Mature industry would always force to

keep the prices low irrespective of the

finest quality produced.

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PROMOTIONAL MIX

Objective

The main objective of our promotional campaign is to:

Present information about the product: Even though Metro Shoes is a well-known brand

in our target market but we still think it is important to promote our brand and give

information about new collection, special offers, discounts, sales etc.

Increase demand: Different promotional strategies will be used at different stages in order

to increase sales.

Differentiate our product: It is important as multiple competitors are present targeting the

same customer as ours.

Promotional Mix Tools

To achieve our objectives we have chosen advertising, sales promotion and social media from

the seven elements of promotional mix for advertising and promotional campaign of Metro

Shoes.

Advertising: Overall costs are high but it is an excellent way to reach large and

geographically dispersed audiences and also it has low cost per exposure. Not only it

stimulates short term sales but it also helps in building brand image. The medium used

for advertising is mass media that is radio and television network, print media including

newspapers, fashion magazines and billboards.

Sales Promotions: We’ll be using it to stimulate quick response. Seasonal sales, discounts

and product bundling would be used. Customer loyalty cards would also be introduced

offering special discounts and giving gifts on special occasions like Eid, birthday of the

card holder etc.

Internet: Along with Company website social media like Facebook and twitter will be

used. It is comparatively cheaper than other promotional medium yet very effective.

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MARKETING COMMUNICATION STRATEGY

The communication strategy illustrates the reason as to why Metro Shoes is to be valued superior

against its competitors. Metro Shoes depicts the image of being trend-setters, thus laying light on

being first at fashion. The marketing mediums mentioned before will be used to integrate the

concept wholly.

There are two key words: trendy and premium. We need to define a clear positioning image

through the advertisement and marketing mediums to depict that with every change in the

fashion statement is brought about rapidly. The greater quality and product type allows for a

premium charge. Metro Shoes hence sells experience, not mere products.

In order to allow for a clear and specific communication process to occur, its crucial to take into

account customer testimonials. When the customer is giving input and feedback (through

interactive mediums like social media), it needs to be utilized and acted upon. Metro Shoes can

create customer goodwill by developing an informational sheet on a customer-focused topic.

For the strategy to be definitive it’s important that the image is delivered across through more

than one promotional medium, hence advertisements, sales promotion and social media. It’s

crucial to depict the image of being a premium trend setter, thoroughly, through every medium.

The message should be sent with coherence, so that no ambiguity is left in the minds of the target

market with regards to the positioning.

TACTICS AND ACTION PROGRAM

Advertising

While going ahead with TV commercials, it would be important to ensure that the basic concepts

are clear. While our reach is not that much, as Metro Shoes is situated in specific cities, the

purpose of having a TVC is to generate it’s brand name. TVC’s allow for a widely recognized

name, and will help in branding Metro Shoes.

The TVCs are primarily going to be aired on Geo, during the late prime time. In order to cater to

the cost-effectiveness, prime time will not be possible. However, the target audience can be

reached during late primetime. The TVC will be a 60 seconds ad, which will be played with a

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frequency peaking during the prime months (i.e. March, April and May and then in, Sept, Oct &

November).These months offer new product lines of the season, as well, engaging a greater

audience.

Our TVC will ensure that;

A Direct and clear pitch is set forth. We need to bank on the concept for the

advertisement. And present it as manifestly as possible. That would ensure a clear image

in the minds of the customers, no ifs, no buts.

The primary purpose of Metro shoes is to preset shoes that quench the need of

fashionable, trendy shoes. That is precisely what it will show.

It’s important to push the USP, as much as possible. Metro Shoes positions itself for

being trendy and chic.

While it’s true that the product (shoes, bags, accessories) hold great relevance, while

delivering a TVC its crucial to not only portray the product, but the experience. Metro

Shoes TVC will create the need for customers to buy from them, through the feel they

provide.

It’s also important to dramatize the whole effect of the shoes.

We need to establish a high perceived value from the TVC . Cost will not be entertained

during the TVC as they are generally higher, however the elegant looks would be.

While dramatizing the benefits, it’s also important to be realistic. We have to ensure that

no vague, unrealistic claims are made.

The primary purpose of the radio ad is to ‘be out there’. This concept works as a reminder

through the minds of the customers. Even though Metro shoes is a high end brand, it will be

beneficial to provide it as a bombardment reminder of it’s existence. It will be highly

beneficial to play the radio ad during prime times, thus ensuring that the maximum traffic

gets to hear it.

The radio ads will use pulsing frequency playing on a higher frequency during the peak

seasons, and will decrease otherwise.

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The radio ad will not be played on National radio stations, in fact on local FM’s in the cities

that have outlets of Metro Shoes. Once again, the radio will be in complete coherence with

the overall brand positioning, by being completely integrated. The radio ad will have the

dialogue statements that are extremely interlinked, as it will help provide brand recall for

Metro.

One of the major advertisement medium that will be used by Metro is Print Media. Metro

will target leading magazines like She Mag, The Weekly, Akhbar-e-Jahan etc. The concept

of the print ad is revealing in nature, a 2-D yet with a draping cover. The greatest attraction

of customers is to be ensured through print media, thus the ad will depict complete image of

‘attaining trend ’.

In order to get customer attraction, out on the road, we will place an A1 sized billboard at an

evident location in F7 Markaz, Jinnah Super, Islamabad. They will be situated there in the

months of March and September, which are primarily their seasonal product line changing

periods.

Sales Promotion

It’s crucial to decide whether the sales promotion is short lived or long. We propose that the sales

promotion should span shorter periods of time. Thus, increasing on a seasonal and occasional

basis. The sales promotions tactics used will be seasonal sales, discounts and product bundling.

Seasonal sales used should be such that they refer to special purchases. It’s important to push

hard during the seasons, like summers, winters, etc. It’s also crucial to present forth the sales at a

time that is conveniently before the competition could think of it. This would lead to a great

number of customer attractions.

The spring months of April, May and June and the fall months of September, October and

November are considered peak wedding months in Pakistan hence special Wedding season sales

should be held during late March and late August. The focus on these sales should be on the

fancier shoes, along with their accessories.

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Also, discounts should be placed on occasional basis, with special customer cards. These loyalty

cards would also provide gifts on occasions like Birthdays, anniversaries, etc. This will develop

the sense of attachment towards Metro Shoes.

Product bundling is a tactic that may be used all year round, particularly for off-season products.

Social Media Marketing

The primary sources of the Social Media to be used will be Facebook and Twitter. They

primarily serve as low cost mediums towards advertising.

The Primary tactic that will be employed is ‘content marketing’. Content marketing technique

creates and distributes relevant and valuable content to attract, acquire, and engage the target

audience. With the input provided at these mediums the returns are greater. They generate a large

traffic from inside, ad from other websites. We will make videos viral on Youtube and Vimeo.

Also, followed will be blogs written specifically to generate word-of-mouth.

While going ahead with the Social Media we will focus on understanding what the customers

want. The Facebook and Youtube pages will prove as an interactive medium. There will be a

section that specifically takes inputs from the customers to bring about change. Customers

greatly appreciate being involved in change. It’s alarming to find out that while 76% of

marketers believe “they know what their consumers want” in terms of social media content and

interaction, only 34% have actually asked those buyers (e-Strategy Trends). That gap is what

Metro Shoes needs to bank on.

Micro-blogging on twitter is a major growing trend. Metro Shoes can allow for entertaining that.

The social media pages will also include all information about upcoming offers, new trends,

sales, etc.

Frequency of social media will be according to pulsing frequency. It will increase during peak

seasons, till three months after new seasonal product lines are introduced (i.e. March and then

late August).

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EVALUATION PROCESS AND MARKETING BUDGET

One of the most crucial parts of a Marketing campaign is constantly monitoring the execution of

marketing objectives and evaluating the results as per the company strategy. While, evaluating a

marketing campaign it is very necessary to identify what are the strategies that are working best

and can be capitalized upon; to replace those which are not working as expected. By scheduling

regular evaluations of a company’s marketing plan, a company can save wasted money by

modifying or eliminating campaigns that are not reaching your target market or garnering the

response you need. As you plan, build in mechanisms to monitor the success of each marketing

effort to make evaluation cheaper and easier.

Efficiency

Cost per sale: Amount Spent for Event/Campaign / Number of sales

Cost per Qualified Lead: Amount Spent for Event/Campaign / Number of Qualified

Leads

Cost per Visitor or Response: Amount Spent for Event/Campaign / Number of visitors or

response

Effectiveness

Measuring specific marketing and advertising campaign results both Online and Offline

Key Indicator: Number of Sales

Highlighting your best and worst performing marketing activity

Key Indicator: Reach, Customer Interest

Identifying your key customer segments and the marketing tactics that attract them

Monitoring “Voice of the Customer” and your stakeholder feedback

Directly testing the perceptions and reactions of key customer segments

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

-Rs -Rs 720,000.00Rs 720,000.00Rs 720,000.00Rs -Rs -Rs -Rs 720,000.00Rs 720,000.00Rs 720,000.00Rs -Rs 4,320,000.00Rs

-Rs -Rs 850,000.00Rs -Rs -Rs -Rs -Rs -Rs 850,000.00Rs -Rs -Rs -Rs 1,700,000.00Rs

-Rs -Rs 25,000.00Rs 25,000.00Rs 15,000.00Rs 15,000.00Rs -Rs -Rs 25,000.00Rs 25,000.00Rs 15,000.00Rs -Rs 145,000.00Rs

10,000.00Rs 10,000.00Rs 200,000.00Rs 100,000.00Rs 50,000.00Rs 10,000.00Rs -Rs 10,000.00Rs 150,000.00Rs 50,000.00Rs 50,000.00Rs 10,000.00Rs 650,000.00Rs

1,500.00Rs 1,500.00Rs 269,250.00Rs 126,750.00Rs 117,750.00Rs 3,750.00Rs -Rs 1,500.00Rs 261,750.00Rs 119,250.00Rs 117,750.00Rs 1,500.00Rs 1,022,250.00Rs

11,500.00Rs 11,500.00Rs 2,064,250.00Rs 971,750.00Rs 902,750.00Rs 28,750.00Rs -Rs 11,500.00Rs 2,006,750.00Rs 914,250.00Rs 902,750.00Rs 11,500.00Rs 7,837,250.00Rs

-Rs -Rs 75,000.00Rs 50,000.00Rs 35,000.00Rs -Rs -Rs -Rs 60,000.00Rs 40,000.00Rs -Rs -Rs 260,000.00Rs

30,000.00Rs 30,000.00Rs 30,000.00Rs 30,000.00Rs 30,000.00Rs 30,000.00Rs 30,000.00Rs 30,000.00Rs 30,000.00Rs 30,000.00Rs 30,000.00Rs 30,000.00Rs 360,000.00Rs


-Rs -Rs 5,000.00Rs -Rs -Rs -Rs -Rs -Rs 5,000.00Rs -Rs -Rs -Rs 10,000.00Rs

25,000.00Rs -Rs 25,000.00Rs -Rs 25,000.00Rs -Rs 30,000.00Rs -Rs 25,000.00Rs -Rs 25,000.00Rs -Rs 155,000.00Rs




250,000.00Rs 250,000.00Rs 250,000.00Rs 250,000.00Rs 250,000.00Rs 250,000.00Rs 250,000.00Rs 250,000.00Rs 250,000.00Rs 250,000.00Rs 250,000.00Rs 250,000.00Rs 3,000,000.00Rs

-Rs -Rs 50,000.00Rs 50,000.00Rs -Rs -Rs -Rs -Rs 50,000.00Rs 50,000.00Rs -Rs -Rs 200,000.00Rs


3,460,000.00Rs

12,228,250.00Rs

Price Monthly Spots Total

14,400.00Rs 50 720,000.00Rs

Total

*Tv Commercials (GEO) Grand Total**Size: 2700 Sq. ft (Rent for 1 month in A1 area: 850,000.00)

Metro Shoes (Marketing Budget)

Tv Commercials*

Expenditure Categories

Sub Total

Sub Total

VAT

Sub Total

Social Media Marketing

PPC Advertising

Content Generation

Blogging

Advertising

Print Media

Radio Ad

Promotions

Seasonal Sales

Discounts

Website Redesign

Billboards**

Personnel

Salaries, Wages

Commissions/Bonus

Sub Total

MISC Expenses

Metro Shoes

Documents

Transcript of Metro Shoes