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Introduction Southern Shoe Company was a manufacturer of ladies wide-fitting, non-fashionable , plastic shoes in July 1991.

Their recent sales had fluctuated quite aggressive ly in a market that had demonstrated a very high level of bankruptcies amongst m anufacturers. The company did not really know what marketing was, or how it coul d be introduced. This report will look at 3 marketing objectives covering the period 2001 2004 to h elp Southern Shoe Company understand how it can progress in the future. Each pro posed objective would be justified through an analysis of the company and also b y applying an appropriate theory. The report will then focus on one of the marke ting objectives outlining in detail a tactical plan. Finally the report will conclude looking at some key issues or problems that mig ht make implementation plan difficult. Objectives After examining the Southern Shoe Company s report the following objectives have bee n proposed: 1. To achieve a 10% increase in sales in one year. 3. To gain 25% of the market for shoes by September 2004. 1. To achieve a 10% increase in sales in one year This objective was proposed having analysed the following table: The table in Fig 1 (see appendix) shows the sales and profit for the year 1996-2 00 As you can see from the table the profits have declined from 1996 up until 2000, therefore there is a need for Southern Shoe Company to increase their sales. 2. To increase 60% brand awareness by 2004 This objective is specific to the market response of brand awareness. Brand awar eness is a function of advertising media; therefore, this objective is specific to the marketing mix element of advertising media. Southern Shoe Company was not accepted in the trade as manufacturers of fashion shoes and had a very staid image with the trade. The company tended to miss out on the younger sector of the wide fitting market. There was an increasing trend towards fashion, Southern Shoe Company has the ability to produce a wide variety of styles and fashion but do not so. Southern Shoes Company s sales of branded products were declining, and also there wa s no advertising done by the company. From this information it is evident that Southern Shoe Company has no image and a very poor advertising or even none. Therefore it is felt that the above propos ed objective is essential. 3. To gain 25% of the market for woman s wide fitted plastic shoes by September 2004 This objective was proposed having analysed the following table: Southern Shoe Company s sales were going against the trends in the market (see Fig 2 ). The company was rising in a falling market and falling in a rising market compar ed to the national markets shares. The company should focus on marketing in the channels where they are falling. There was no published statistics and Southern Shoe Company had no idea how big the market was or where they stood in the market therefore an estimate was made according to their recent results. From the total 13.52 million pairs of woman s pla stic shoes in 2000 the market size for woman s total wide fitting shoes was 2.45 mil lion pairs. Estimates were then made for market growth up to 2004 as shown in the table in F ig 3. Southern Shoe Company were in a specialist market with few competitors and were estimated to hold about 18% of the total market for woman s wide fitting plastic sho es. Ansoff's Matrix - Planning for Growth Marketers who have objectives for growth use this theory. Ansoff's Matrix offers strategic choices to achieve the objectives. There are four main categories for selection. (See Fig 4) The Ansoff Matrix is a tool that helps business decide their product and market

growth strategy. Ansoff's product/market growth matrix suggests that a business attempts to grow depending on weather it markets new or existing products in new or existing markets. This theory could be looked at to see how Southern Shoe Co mpany could achieve their objectives. Market Penetration Southern Shoe Company could focus on this option if they are to achieve their se cond objective To increase 60% brand awareness by 2004 . This is where the company mark ets their existing products to their existing customers. This could be done by p romoting the product or reducing prices to increase sales. However, the product is not altered and they do not seek any new customers. Market Development The company markets their existing product range in a new market. This means tha t the product remains the same, but it is marketed to a new audience. Southern S hoe Company can achieve their first objective, which is to achieve a 10% increas e in sales in one year by using the market development option. Product Development This is where a new product is marketed to existing customers in the hope that t he company will gain more custom and market share. Southern Shoe Company can use this option if they want to gain 25% of the market for woman s wide fitted plastic shoes by September 2004. They could develop new products offerings to replace ex isting ones. These products can then be marketed to their existing customers. Diversification This is where the company markets completely new products to new customers. Movi ng away from what you are selling to providing something new. Assumption/Barrier to entry Barriers to entry are anything that makes it difficult for a new entrant to brea k into a market. They make companies already in the market more valuable as they reduce the risk of new competition. Jobber, D. (2001) p202 believes that for companies considering entering a new marke t segment there may be substantial entry barriers that reduce its attractiveness . Barriers can take the form of high marketing expenditure necessary to compete, patents or high switching costs for customers. However if a company judges that it can afford or overcome barriers to entry, their existence may raise segment attractiveness if the company judges that the barriers will deter new rivals fro m entering . Porters fives forces model Porters fives forces model is used to analyse a particular environment of an ind ustry. This model could be looked at to see if there are any barriers to entry i n the shoe market for Southern Shoe Company. (See Fig 5) There are many barriers to entry preventing new entrants from capturing market s hare. A large capital investment is required for new firms to open shoe factorie s and conduct research and design to create a popular brand or image. The capital requirements can be a high entry barrier to a new firm to the indust ry. Access to shoe distribution channels is a moderate barrier to entry. This all de pends on the status of the entering firm. Government policy is a low entry barrier, as all manufacturers in every industry are subject to factory safety laws. The following assumptions may make it hard for Southern Shoe Company to entry in to the market: There is no adverse publicity There are no new competition The economic growth is stability If there is no marketing research done Southern Shoe Company face few competitors but there are no new ones. The graph in Fig 6 shows the GDP has risen by 0.6 per cent in the first quarter of 2006. I f Southern Shoe Company does no market research then they will have problems ent ering the market. 2 For achieving one of the objectives a tactical action plan will be looked at cov

ering the 3-year period. The tactical action plan will help to achieve the follo wing objective To increase 60% brand awareness by 2004 To achieve the objective Southern Shoe Company will need to overlook the marketi ng mix (4ps) Before looking at the marketing mix Southern Shoe Company need to do some market ing research as it seems they have got very poor market research on the shoes. T he company needs to know how many and what kind of people or the age range of pe ople, who will buy their shoes. Kotler (2001) pg 138 defines marketing research as the systematic design, collectio n, analysis and reporting of data relevant to a specific marketing situation fac ing an organisation . Marketing research is undertaken in order to improve decision-making in marketin g. Therefore, its usually done help solve marketing problems. Before data collec tion can begin it is important to define clearly the boundaries of the marketing problems. This is an important stage because failure to recognised a problem me ans it is unlikely to be redressed. Davis (1998) pg 61 One of the most important decisions a marketing manager can make is about brandi ng. A brand is a tool, which is used by an organisation to differentiate itself from competitors. Brands have the power of instant sales; they convey a message of confidence, quality and reliability to their target market. Brands have to be managed well, as some brands can be cash cows for organisation s. In many organisations they are represented by brand managers, who have huge r esources to ensure their success within the market. Southern Shoe Company had two well-known brand names - Piccadilly and Sedate. Ho wever the sales of these branded products were declining. To increases brand awa reness Southern Shoe Company need to make sure that their customers know about t heir brands. In order to achieve this Southern Shoe Company will need to look at their marketing mix. Marketing Mix - 4p s Kotler, (1996) p96 defines marketing mix as the set of controllable tactical market ing tools that the firm blends to produce the response it wants in the target ma rket . The marketing mix principles (also known as the 4 p s.) are used by business as tool s to assist them in pursuing their objectives. The marketing mix principles are controllable variables, which have to be carefully managed and must meet the nee ds of the defined target group. The marketing mix is apart of the organisations planning process and consists of analysing the defined: Product strategies. Price strategies. Place strategies. Promotion strategies. Because Southern Shoe Company is poorly positioned in the market, they have an i neffective marketing mix and a very poor image. Their product, promotion, price, and place focuses are not properly aligned with those of the market. Product In the early 80.s Southern Shoe Companies product mix comprised woman s footwear, ma inly of leather, but also synthetics, of the following type: Casuals Wide fitting shoes Slippers High heel courts School shoes Boots Evening shoes From early 1998 the company had chosen to specialise in the manufacture of ladie s wide fitting shoes with uppers plastic because it was not possible to continue profitable with the previous products and material mix. The company sells non-f ashionable plastic shoes. An opportunity to increase brand awareness for the com pany could be to introduce fashionable plastic shoes rather than the non-fashion able or to introduce wide fitted leather shoes instead of plastic.

Southern Shoe Company has a few competitors who also sell wide fitting shoes. Guang dong Jinhan Group and DB Shoes . Guangdong Jinhan Group a plastic Shoes Factory, specializing in the development and manufacture of sandals and slippers with PVC soles. They design and produce fashionable footwear with consistent high quality but do not offer wide fitting shoes. DB Shoes use high quality materials. DB Shoes offer a wide choice of new styles as well as the ever-popular old favourites. Both companies offer a wide r ange of styles and types, this can bee seen at their websites (Fig 7 and 8). The Report on The Official Shoe Survey taken by SmartGirl.org which is a website especially for adolescent girls shows that the type of shoes that are bought mo st often by girls are sneakers (41.49%), sandals (14.92%), dress shoes (12.18%) and flip-flop (11.87%) (See Fig 9) but the shoes worn most likely are sneakers f lip-flop then sandals (See Fig 10). The survey also showed that the favourite co lour worn by the girls (See Fig 11) were black (27.13%,) white (17.05%), blue (1 8.4%) and multicolour (10.71%). Southern Shoe Company should sell wide fitting sandals in black colour. None of their competitor mentioned above sell this product so this will offer a differen tial advantage over their competitors. The product will be aimed at the younger sector, as it is mentioned earlier in the report that Southern Shoe Company tend to miss out on the younger trend. Southern Shoe company should this product und er their known brands. Pricing Strategies Pricing a product too high or too low could mean a loss of sales for the organis ation. As a product moves through the distribution channels, e.g. from manufacturer to distributor to dealer to customer, there are prices set along the way. A survey performed by Churchill Insurance showed that women spend up to three ye ars of their lives shopping and spend an average of 31,680 each on shoes The surve y showed that 90 per cent of women buy a new pair of shoes each month and that t hey own more than 30 pairs each. According to The Sun, out of 2,000 women quizze d, most of them buy at least one pair a month, costing around 40 pounds. (Fig 12 and 13) Southern Shoe Company should use the Penetration Pricing factor, where they will set the price charged for the shoes artificially low in order to gain market sh are. Once this is achieved, the price will then be increased. They should charge their shoes for around 25 to 35 to start with and then eventually increase their pr ice as according to the survey woman are willing to pay at least 40 on their shoes . Place, distribution, channel, or intermediary Most major manufacturers had a degree of vertical integration with there tail tr ade. Southern Shoe Company had none and therefore was more vulnerable in the lon g term imports. It appears that the company has a lack of direction and control. The company was falling in a rising market and rising in a falling market (see fig 2). Efficient and effective distribution is important if the organisation is to meet its overall marketing objectives. Southern Shoe Company needs to focus on the M ultiples channel because compared to the national market trend they are falling. They should also try to focus on selling through the Mail order and Coop/Dept s tores. An opportunity for Southern Shoe Company would be to sell though Single channels as they already sell through multiple channels. This will also increases brand awareness. Promotion Southern Shoe Company had a very staid image with the trade. Also there was no a dvertising. They had no clearly defined target markets. They tended to miss out on the younger sector of the wide fitting market. Southern Shoe Company needs to use the following promotion methods. They need to advertise their new branded s hoes to make customers aware of their product. Direct Mail: There has been a massive growth in direct mail campaigns over the l ast 5 years. Spending on direct mail now amounts to 18 bn a year representing 11.8

% of advertising expenditure (Source: Royal Mail 2000). Direct mail allows an organisation to use their resources more effectively by al lowing them to send publicity material to a named person within their target seg ment. By personalising advertising, the companies response rates will increase t herefore will increase the chance of improving sales. Advertising Southern Shoe Company need to advertise their branded shoes well. Internet - Some of the competitors sell through the Internet. Southern Shoe Comp any can promote their shoes by selling through the Internet. Catalogue - This is also a very popular method for promotion as a lot people lik e to shop from home. By changing its marketing mix Southern Shoe Company will be better prepared to a dapt to changes in the shoe market. Focusing on their single distribution channe l the company will target a more profitable age segment. This will help to chang e their pricing strategy (although no price is mentioned in their report). Howev er an increase in pricing will lead to an improved brand image for the company. All these changes will prepare Southern Shoe Company to adapt more quickly in th e shoe market. 3 Key issues or problems, which may make implementation, plan difficult Many managers think that doing things right (implementation) is as important, or even more important, than doing the right things (strategy). Because many surprises occur d uring the implementation of marketing plans, the marketing department must engag e in constant marketing control. Source: Kotler, P. (1996) Control involves measurement, evaluation, and monitoring. Resources are scarce a nd costly so it is important to control marketing plans. Control involves settin g standards. The marketing manager will than compare actual progress against the standards. Corrective action (if any) is then taken. If corrective action is ta ken, an investigation will also need to be undertaken to establish precisely why the difference occurred. Communication channels within Southern Shoe Company were blurred and there was v irtually no business or marketing planning. The company was poorly structures (s ee Fig 14). The company s formal organisation structure plays an important role in i mplementing marketing strategy. Southern Shoe Company has no planning culture. To be successfully implemented th e firms marketing strategies must fit with its company culture. Company culture is a system of values and beliefs shared by people in an organisation. Marketing strategies that do not fit the company s style and culture will be difficult to imp lement. Source: Kotler, P. (1993). These are some other issues that may make implementation plan difficult: Information inadequacy It is important if staff in business implement plan - to involve the whole organ isation, to involve people don t dictate to them Price cost problems Marketing orientation to make it more market oriented There are many approaches to control: Market share analysis Sales analysis Quality controls, Budgets Ratio analysis Marketing research Marketing information systems (MkIS) Feedback from customers satisfaction surveys Cash flow statements Customer Relationship Management (CRM) systems Sales per thousand customers, per factory, by segment Location of buyers and potential buyers Activities of competitors to aspects of your plan Distributor support Performance of any promotional activities.

Market reaction/acceptance to pricing polices Service levels And many other methods of monitoring and measurement. Conclusion/Recommendation Southern Shoe Company has a very staid image with the trade. The company is miss ing out on the younger sector of the wide fitting market. Southern Shoe Company has the ability to produce a wide variety of styles and fa shion but do not so. Southern Shoe Company has no image and a very poor advertis ing. Southern Shoes Company s sales of branded products are not well known and are declin ing. The company has been rising in a falling market and falling in a rising market c ompared to the national markets shares. The company has no idea how big the mark et is or where they stand in the market. Southern Shoe Company need to do some marketing research as it seems they have g ot very poor market research on the shoes. If Southern Shoe Company overlooks their marketing mix and makes relevant change s, they will be better prepared to adapt to changes in the shoe market. The comp any should focus on selling through single distribution channel and target a mor e profitable age segment. They need to improve their brand image for the company and make use good methods of promotion in order to increase their brand awarene ss. All these changes will prepare Southern Shoe Company to adapt more quickly i n the shoe market. Bibliography http://www.marketingteacher.com Date accessed: 22/03/06 (2005) http://www.marketingteacher.com/Lessons/lesson_ansoff.htm Date accessed: 23/03/06 http://www.learnmarketing.net/ Date accessed: 31/03/06 Kautz, J. (1998-2006) http://www.smallbusinessnotes.com/planning/marketingplan/m arketplanobjectives.html Date accessed: 31/03/06 http://www.ecommerce-now.com/images/ecommerce-now/marketingmix.htm Date accessed : 31/03/06 http://www.royalmail.com/portal/rm Date accessed: 31/03/06 M.C.Volker (1998) http://www.sfu.ca/~mvolker/biz/mktintro.htm Date accessed: 7/0 4/06 http://www.statistics.gov.uk/cci/nugget.asp?id=192 Date accessed: 10/04/06 http://www.smartgirl.org/reports/1980471.html Date accessed: 12/04/06 http://chaosu.en.alibaba.com/ Date accessed: 10/04/06 http://www.dbshoes.co.uk/ Date accessed: 12/04/06 http://www.thesun.co.uk/article/0,,2005300000-2005530672,00.html Date accessed: 22/04/06 http://www.thesun.co.uk/article/0,,2001290023-2006120244,00.html Date accessed: 22/04/06 http://www.hindustantimes.com/news/7242_1435284,00180010.htm Date accessed: 22/0 4/06 http://www.eveningtimes.co.uk/print/news/5041328.shtml Date accessed: 22/04/06 Business Basics (1995) Marketing BPP Publishing Limited Davis, M. (1998) Understanding Marketing Prentice Hall Hatton, A. (2000) the definitive guide to marketing planning Pearson Education L imited Jobber, D. (2001) Principles & practice of marketing McGraw-Hill Publishing Comp any Kotler, P. Armstrong, G. (1993) Marketing An Introduction Prentice Hall, Inc Kotler, P. Armstrong, G. Saunders, J. Wong, V (1996) Principle of Marketing The Eu ropean Edition Prentice Hall Europe Kotler, P. Armstrong, G. Saunders, J. Wong, V (2001) Principle of Marketing The In ternational Edition Prentice Hall Appendices Fig 1 Year First Half % ChangeYear () over previous Year Second Half % ChangeYear

() over previous Year Annual profit before tax () 1996/971997/981998/991999/00200/01 165,800147,000 - 11178,300 + 21190,100 + 6171,000 - 10 414,800386,000 - 7442,600 + 15383,900 - 13Incomplete September tr end to - 10.5 23,80010,20011,10010,300n/a Fig 2 National market shares % National Trend* Southern shoe sales shares % Southern shoe s trend Independents 21 Falling Independents 50 Rising Multiples 50 Rising Multiples 40 Falling Mail Order 12 Rising rapidly Mail Order 5 Static Co-op/Dept Stores 17 Rising rapidly Co-op/Dept Stores 5 Rising rapidly This is for all shoes including wide fitting plastic Fig 3 Year Production ( 000 pairs) 2000 2,450 2001 3,140 2002* 3,820 2003* 4,500 2004* 5,180 Estimate Fig 4 Ansoff's Matrix Source: http://www.marketingteacher.com/Lessons/lesson_ansoff.htm Fig 5 Source: http://www.brs-inc.com/porter.asp Fig 6 GDP GrowthEconomy rose by 0.6% in Q1 2006 GDP growth CVM Source: http://www.statistics.gov.uk/cci/nugget.asp?id=192 GDP rose by 0.6 per cent in the first quarter of 2006, the same growth rate as i n the fourth quarter of 2005. Production rose by 0.7 per cent compared with a fall of 0.9 in the fourth quarte r of 2005. All production sectors showed positive growth. Manufacturing rose 0.5 per cent compared with a fall of 1.1 in the fourth quarter. Gross Domestic Product (GDP) is an integral part of the UK national accounts and provides a measure of the total economic activity in a region. GDP is often ref erred to as one of the main 'summary indicators' of economic activity and refere nces to 'growth in the economy' are quoting the growth in GDP during the latest quarter. Fig 7 Guangdong Jinhan Group Co., Ltd. Source: http://chaosu.en.alibaba.com/group/0.html Fig 8 DB Shoes Picture Shoe Brand Colours Available 77034TZara Easy bLadies Wide E Fitting Black leatherCamel leatherNavy l eatherPink NubuckChianti leatherTan leather 77044TLisa Easy bLadies Wide E Fitting Black leatherCamel leatherNavy l eatherBurgundy leatherTan leather 77053MFoxglove Easy bLadies Wide E Fitting Black / Tan leatherCamel / Light blue leatheBlue / Camel leatherBurgundy / Tan leatherTan nubuck 77085TVictoria Easy bLadies Wide E Fitting Black leatherTan leather Poron Foam Poron foam inserts built into sock Removable sock Suita for orthotic insertion Deep Toe box EEEE Flex comfort system (Ladies) Flex com fort system (Men) Cushion comfort system Virtually seam free uppers Variable fitting Leather sole Leather sole with rubber forepart for extra grip Wide fitting Stretch uppers Velcro extensions Extra wide fitting EE EEEEEE fitting Large sizes (mens) Large sizes (ladies) Lifts Source: http://www.dbshoes.co.uk/benefits.html

Fig 9 What type of shoes do you have the most of? count percent most shoe sneakers 395 41.49 soccer shoes 18 1.89 dress shoes 116 12.18 platforms 50 5.25 boots 39 4.1 sandals 142 14.92 flipflop 113 11.87 slippers 15 1.58 other 64 6.72 Source: http://www.smartgirl.org/reports/1980471.html Fig 10 What types of shoes do you wear most often? Source: http://www.smartgirl.org/reports/1980471.html Fig 11 Favourite pair of shoes? count percent favcolor black 261 27.13 brown 75 7.8 blue 177 18.4 red 29 3.01 orange 8 0.83 purple 22 2.29 pink 69 7.17 green 7 0.73 yellow 7 0.73 white 164 17.05 gray 23 2.39 multi 103 10.71 Tan/Natural 15 1.56 other 2 0.21 Source: http://www.smartgirl.org/reports/1980471.html Fig 12 Shoe-loving women fork out 31,000 THE average British woman spends around 31,000 on shoes during her lifetime, new r esearch claimed today.Almost half of women said shoes were their biggest weaknes s while out shopping.And 86% claimed they buy at least one new pair a month, acc ording to a survey by Churchill Home Insurance.A third of women said they had at least 25 pairs of shoes stacked away in their wardrobes, while 1.3million claim to have more than 30 pairs.The insurance group says the average woman starts sh opping for her own clothes at 14.And if she spends an average of 40 a month on sho es, she'll have bought 31,000 worth of footwear by the age of 80.19/07/05 Source: http://www.eveningtimes.co.uk/print/news/5041328.shtml Fig 13 Women are big time shoe shoppers! Asian News InternationalLondon, July 19, 2005 A new survey conducted by Churchill Home Insurance has revealed that the average British woman spends 31,680 pounds on shoes over her lifetime.According to The Sun, out of 2,000 women quizzed, most of them buy at least one pair a month, cos ting around 40 pounds. This adds up to 12 pairs a year, or 792 pairs in a lifeti me if they start buying their own shoes aged 14 and live until they are 80.A thi rd of women had 25 pairs worth 1,000 pounds in their wardrobe while 1.3 million women own well over 30 pairs of shoes. Girls are found to spend three years hunt ing for the perfect accessories for their outfits Source: http://www.hindustantimes.com/news/7242_1435284,00180010.htm