Marketing Management-II

Group No. : 1

1. What do creativity and innovation Signify and entail? What are the key types of innovation?

Creativity v/s Innovation

Creativity : Thinking up new things. Innovation : Doing new things

Innovation:
It is a process of taking new ideas to satisfied customers. It is the conversion of new knowledge into new product and services.
Its about creating value & increase efficiency. Hence, growing business.

Application Innovation

Disruptive Innovation

Innovation

Product Innovation

Process Innovation

2. Analyse Geox's innovative strategy in detail. What are features of this strategy that have made Geox shoes a success? What factors, other than product innovation, does Geox owe its competitive advantage to?

Introduction to Geox: Shoes that breath Before 1995: idea while walking simple holes 1995: 1st patent in childrens footwear; the company starts up; extension of the patents to mens and womens footwear

1999: Geox apparel: patents applied to garments

2001: Patent a new technology using leather-sole, waterproof leather 2008: New patents to conquest the sport footwear industry

Technology innovation: technology that breathes

Innovations and patents (over 50 patents) in materials (leather & Rubber) in processes in equipment and machinery (shoe sole molding)

Technology yes, but comfort and fashion too!

First in the field:

No competition in the breathable shoe market

R&D: a key competitive advantage

Original patent and corollary patents:

Impossible to copy the product

A unique message that makes the difference:

Geox solves the problem of transpiration that other shoes do not solve

Blue Ocean Strategy

Creating a new market place rather than competing in the existing industry Redefined the market space with its unique proposition

Advertising budget = 10% of annual revenue

Building a brand Product innovation & Differentiation

Unique proposition, slogan (Geox breathes) all around the world and for all the market segments

Consumer-oriented Family brand

Most of the market segments covered (a large customer base) Full ranges of models for different uses (casual, sports, fashion,)

3. Assess the market environment of the industries Geox operate in. Who are Geox's key competitors? What Strategies and options are available to Geox for sustaining its position in these industries?

The Market Environment and industries : footwear and garment sectors: classic casual sports fashion

Mens, womens and childrens sectors

Competition in comfort footwear industry:

Nike Puma Adidas Timberland

Target market: mid to high-income customers All ages and lifestyles because no one likes to have his feet wet and smelly! Shoes sold in 103 countries TV commercials:

explanation of the patent with images funny commercials

 Product Innovation : Geox planned to continue researching, patenting & implementing new solutions. International Expansion : Company has planned to increase the number of customers served and boosting market share and loyalty among existing customers by opening new Geox shops in various cities across the globe. And, by balancing the sale mix through increasing the volume of the mens & womens lines related to the childrens lines.

Until 2008, two digit growth in its annual profit. However, due to recession in 2008, its net income began flattening out though it fared better then its competitor, mainly due to its less dependency on US market.