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(PGP14/059) (PGP14/060)

Matrix Footwear Situational Analysis

Perceptible decline in market share Premium segment registering annual growth rates of

30% in which Matrix has limited presence Burgeoning youth population which is aspirational in nature and has the means to satisfy those aspirations Backdrop of a failure when foray into premium market was attempted a decade earlier Employees who were part of the whole failure still around in Matrix Greater margins and hence profit proposition in the premium market

Matrix Footwear Problem Statement Should Matrix stick to the economy segment or venture towards the premium segment of the footwear market?

Matrix Footwear List of Alternatives

Stay a value-for-money player; remember lessons from

the past and maintain existing strategy with regard to placement in the premium segment Recognize the wave; make an entry into the premium segment in a significant way and shed the value for money offering over a period of time Maintain your core competency as an economy player but at the same time have a parallel premium offering in order to grab a share of the market pie

Matrix Footwear Criteria of Evaluation

2. 3. 4. 5. 6.

Firstly, arrest what seems to be a market share decline and then grow your market share Profits Long-term viability as a brand Market leader position in footwear Facilitate diversification into other products Brand Consistency

Matrix Footwear- Evaluation of Options

Maintain Status Quo Maintains brand consistency but

could lead to drastic decline in market share with time because of changing customer preferences . Would reinforce the image of Matrix being an economy brand, a positioning which could impact scalability with time Become a premium player and shed v-f-m offering Brand USP based around being an economy player and such an approach could lead to erosion of market share in totality thus forcing Matrix out. High scope for profits if it works out but need to start from scratch even though they have years of experience in the industry

Matrix Footwear- Evaluation of Options (Contd.)

Maintain position as an economy player but chain off a

separate premium offering Maintains existing market share but helps dip into the premium market segment with immense growth potential. Enables leverage of presence in the industry and might lead to increase in margins besides presence in the entire footwear space

Matrix Footwear - Recommendation

Maintain position as an economy player but chain off a separate premium offering under a different brand name

Matrix Footwear Plan of Action

Set up a new line of stores to promote premium

offering Train salespeople and have specific strategy catered to the premium segment so as not have another case of a diversification going wrong Price competitively with other premium brands so that it is consistent with the overall brand image of being a value for product provider Dedicated product and marketing personnel with experience in the premium footwear segment

Matrix footwear- Contingency

Continue focus on the economy segment so as to

enable clean exit from the premium market offering in case foray into the premium market turns out to be unsuccessful again Expand economy offering in newly created stores so as to minimize capital loss