MARKETING MANAGEMENT

GROUP ACTIVITY

Sport MAX Pvt Ltd

Launches

MAX X1
Submitted To Mr Vivek Tomar Submitted By Nikita Khurana Kapil Sharma Nivedita Kumari Siddhant Pahwa Ankit Ghakar Ashutosh Duggal Sagar Sethi

ASHUTOSH DUGGAL Chief Operating Officer Product SWOT analysis Distribution Promotion NIVEDITA KUMARI President (R&D) Market Research - Analysis Competitor analysis Banner KAPIL SHARMA- President (sport max pvt Ltd) Advertisement Online campaign Branding NIKTA KHURANA Chief Finance Officer Cost Analysis Future plan Price

SIDDHANT PAHWA- Chief Marketing Officer Benefits Logo Tagline

SAGAR SETHI Chief Executive Officer Place Job allocation Company Name

ANKIT GAKHAR- Chief Strategy Officer Product Name Print Advertisement Risk analysis

CONTENTS
EXECUTIVE SUMMARY MISSION VISION LOGO TAGLINE MARKETING MIX Product Place Price People Promotion

BRANDING BREAK UP OF 10 CRORES BENEFITS RISK ANALYSIS SWOT ANALYSIS FINANCIAL PLAN PROJECTED PROFIT AND LOSS

EXECUTIVE SUMMARY
SportMAX Pvt Ltd. Has launched a new product named MAX X1. This product emphasizes dual purposes of comfort and functionality. Our shoe focuses on minimizing foot injuries from running or sprinting. Our Marketing strategy MISSION MISSION is to exceed from all leading athletic companies like Nike, Adidas Reebok and make it widely popular across the globe. Gain and Maintain the leading position in the market by supplying quality products and innovative designs and attract maximum number of customer belonging to all ages and lifestyles. Guarantee the availability of products at all leading stores and markets. To meet the changing demands of customer.

VISION Initially the goal is to distribute shoes which are, high on quality and functionality. To maintain quality and make it easily available at every market place To meet the requirement of all type of customers belonging to all age groups. Promote the sustainable development of product design and novelty To reduce wastage at every stage of production and make it more environment friendly. To achieve a 33% increase in sales in two years time and maintain a minimum annual increase of 15% thereafter.

LOGO

Tagline-Nothing performs better Significance of the Logo: The footprint and the plus sign represent care for the human foot. The shoes are designed in order to minimize injuries, along with that, the shoes are meant for sports involving running, sprinting, etc. hence, the name SportMAX.

Marketing Mix
Product
Name MAX X1 There were range of name which came up :1. 2. 3. 4. Shoeso Shoe plus feeTone MAX X1

FEATURE OF PRODUCT Carbon fiber look synthetic upper materials are ultra-lightweight ,weight only 15 ounces and utilize some of the most advanced technologies Currently available in five different colors each one is accented by a distinctive translucent outsole. Pedometer helps to measure calories and promotes fitness activities among its users. With its unique construction, the concept 1 shoe fits completely true to size and provide the secure feeling of a shoe that is designed to perform at highest level of performance Crystal rubber outsole for long-lasting performance and visual appeal. Reflective tabs on upper can provide extra safety by reflecting cars headlight High grade thermoplastic urethane shank for heel to forefoot stability and shock absorption.

PRICE Ranges from Rs 5000-10000 PLACE Delhi Noida Gurgoan Faridabad PEOPLE Segmentation and consumer behavior According to price Super premium Premium Super premium brand conscious money is secondary demands more variety more choosy loyal customer

Premium segment quality conscious have an upper limit to money try to get lowest price possible for high quality

Promotions There are seven main aspects of a promotional mix. These are:

Advertising We do Presentation and promotion of ideas, goods, or services by an identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails. (Not Always Paid For) Personal selling - A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. We do Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone. Sales promotion - Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. We do sales promotion by providing Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions. Public relations - Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. We maintain public relations through Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars. Corporate image - The Image of an organization is a crucial point in marketing. If the reputation of a company is bad, consumers are less willing to buy a product from this company as they would have been, if the company had a good image. We try to build a good corporate image among the customers Direct Marketing -is often listed as a fifth part of the marketing mix. We do direct marketing also Exhibitions - are try-outs. We make our product, and let potential buyers try the product, this way, We know directly what people see in our product. The downside, our competitor can see exactly what we are doing. Sponsorship- We will sponsor events to promote our product.

Promotional Channels 1) Tie up with Retail Chains like big bazaar, Reliance trends. 2 ) Entertainment based marketing campaign by forming alliances with technology and entertainment companies. We had an alliance with Apple to sell our s shoes with Apple iPods 3) Tie up with gyms. 4) Collaboration with mall 5) Website, Facebook and Google+ page to keep in touch with customer.

BRANDING We have also invested a lot in developing a premium brand that implies high quality and care for the customer. In general, our shoes are associated with high quality. They are stylish, comfortable and casual, and give superior performance and are perceived as a professional, technically orientated brand, we have emphasized on the use of high technology and sophistication

Break up of 10 crores
In order to create a fairly large and deep impact on the prospective market, we are planning to open 50 outlets in the NCR region.

Rent of the outlets(50*50000) Salaries and Wages(250*10000) Advertisement(Bill boards, electric boards ,T.V ,Health Magazines and Newspaper) Research and development Vehicles Reserves Insurance Cover Product Material

25 lakhs 25 lakhs 1.8 crores app

1.0 Crores 20 lakhs 50 laks 2 crores 4 crores

We are planning to keep around 5-6 personnel in every outlet which takes us to around 250 people in all the 50 outlets. Advertisements mainly will entail billboards used at every major flyover of the city and the NCR region in order to catch attention of the maximum number of people.

Health and sports magazines will prove another good source of advertisements as for sports fanatics refer to health and sports magazines as their holy books. A minimum number of 1000 pairs of shoes will be kept at every store to fulfill the needs of the demand for the product.

BENEFITS

Special rubber and latex fusion used in the outsole which reduces wear and tear and enhances durability of the shoe. Humans are accustomed to walking barefoot, which causes 300% less injuries*, SportMAX shoes use special shock dampening SHOOZER technology, which reduces injuries by up to 150%. ** Currently, mass-produced shoes generally require 1000 years to degrade and /or may not degrade at all. SportMAX shoes are considerably much more eco-friendly, they take around 15 -20 years to degrade.

Risk analysis
Ours is a product which comes from the realm of the blue ocean strategy but still every new product launched in the market has a fair amount of risked involved be it related to response or the failure of the product on the basis of its research and development taking an example of the multinational corporation Reebok from which Thousands of people who bought Reebok "toning shoes" to strengthen and tone their bodies could get a refund after the trainer manufacturer agreed to pay out $25m (16m) to settle false advertising charges. The new product launched here is targeted at the Sports persons whose chunk of the activity involves running or jogging, for a new entrant it is always difficult to create a mark in the market in competing with the already established giants of the sports industry like Nike, Reebok, because people who are profoundly into sports and take care of the aspects meticulously will target much posh brand and will find it no harm in spending a few more thousand rupees for a better product. Risk Due to what is at Stake. There are really two aspects to consider here, opportunity risk and financial risk, and you should be sure that the upside of the business is worth the risk in both areas. Opportunity risk comes from the fact that if the business fails, you could have been doing something else with your time and money. There is not a lot you can do about this risk except to weigh the merits of all opportunities you have before making a decision on starting a particular venture.

The more important source of risk for most entrepreneurs is financial risk -- the tangible value that you and your investors lose when the business fails.

SWOT ANALYSIS
STRENGTHS

We do not tie up cash in buildings and workers. This makes a very lean organization. We are strong at research and development, as is evidenced by its evolving and innovative product range. We then manufacture wherever we can produce high quality product at the lowest possible price. If prices rise, and products are be made more cheaply elsewhere (to the same or better specification), we can move our production. Sportmax is a global brand. It is the number one sports brand in the World. Its famous LOGO is instantly recognizable, and even various bollywood actors have it tattooed on their ankle.

WEAKNESSES

The organization does have a diversified range of sports products. However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes. The retail sector is very price sensitive. However, most of our income is derived from selling into retailers. Retailers tend to offer a very similar experience to the consumer. Can you tell one sports retailer from another? So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto us

OPPORTUNITIES Product development offers us many opportunities. The brand is fiercely defended by its owners whom truly believe that Sportmax is not a fashion brand. However, like it or not, consumers that wear Sportmax product do not always buy it to participate in sport. Some would argue that in youth culture especially, Sportmax is a fashion brand. This creates its own opportunities, since product could become unfashionable before it wears out i.e. consumers need to replace shoes.

There is also the opportunity to develop products such as sport wear, sunglasses and jewellery. Such high value items do tend to have associated with them, high profits. The business could also be developed internationally, building upon its strong global brand recognition. There are many markets that have the disposable income to spend on high value sports goods. For example, emerging markets such as China and India have a new richer generation of consumers. There are also global marketing events that can be utilized to support the brand such as the World Cup (soccer) and The Olympics.

THREATS Entry of multinationals in domestic market. Sportmax is exposed to the international nature of trade. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. Such an exposure could mean that Sportmax may be manufacturing and/or selling at a loss. This is an issue that faces all global brands. The market for sports shoes and garments is very competitive. Competitors are developing alternative brands to take away Sportmaxs market share. As discussed above in weaknesses, the retail sector is becoming price competitive. This ultimately means that consumers are shopping around for a better deal. So if one store charges a price for a pair of sports shoes, the consumer could go to the store along the street to compare prices for the exactly the same item, and buy.

PROTOTYPES

Financial Plan
Sales growth will be aggressive the first 18 months as we sharpen our merchandise assortment, size scales, and stock levels to better meet our customer's requirements. We anticipate a sales increase of 33% during our second year of operation. Marketing will continue to average 3% of total sales. We will invest residual profits into reducing debt and the lost income from large cash holdings. Company expansion, while not a necessity, will be an option if sales projection are met or exceeded. Important Assumptions 1. SportMAX will grant a restriction against competitive stores within four miles of this location, other than the existing store in Coral Square Mall. 2. SportMAX will continue it's program of promoting better running shoes on a national level. 3. The space selected for this store will require minimal demolition and no changes to the restrooms, electrical, plumbing, or storefront to open SportMAX. 4. We will be able to become an active sponsor of community sports within the City of Noida. 5. We anticipate that we will be able to complete required financing, lease documents, franchise documents and space buildout to allow for a November 2011opening. If not, we would most likely open in December, to be prepared for the holiday season.

Projected Profit and Loss

We predict that during the second year of operation, our high level of customer service and strong assortment will allow us to generate approximately 5% profit. This will be above the normal two to three year period required for a start-up retailer. Our sales projections are conservative. Should sales increase as we anticipate, the profit-to-sales ratio could be as high as 10% by the end of year three.