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1. Introduction to the product 2. All about shoes 3. Competition Analysis 4. Marketing mix 5. Fitting tips 6. Material launch 7. Symbol used 8. Special attraction 9. Segmentation 10. Pricing Strategy 11. Competitive 5 forces 12. Value chain – Michael Porter 13. Consumer Behavior 14. Brand personality 15. Launch and Pre-Launch 16. CRM & CSR 17. Questionnaire analysis 18. Conclusion 19. Annexure • research synopsis of a research company • questioner • print adds and there explanation 20. 9) Bibliography

This report bears the imprint of many people and without their support would not have existed. First of all we would like to express our sincere indebt ness and profound sense of gratitude to our parents without their support in all our endeavors we would not have been able to give this project its present shape. We acknowledge our deepest thank to Prof. TIMIRA SHUKLA, for all her guidance and encouragement which leads us all through this project. Her suggestions at all point of time are invaluable for us. We would like to put on record our sincere gratitude to all our friends for giving us valuable ideas throughout our project. THANK YOU

INTRODUCTION TO THE PRODUCT “FREGO SHOES” ---- Freshness All Day Long!!!!!! Nowadays, in our hectic lives, we face a general problem of bad odur from a pair of shoes worn by us for long durations. People sitting close to us or in our nearby surroundings start feeling irritable as well as get that obnoxious smell that is more than difficult to bear. So, to overcome this problem we have got a solution for you – “


FREGO SHOES with a special fragrance oriented pads, so as to secrete a pleasing odor all the while, while you can carry on with all your day’s hectic schedule without being embarrassed. Using this once will make you a loyal believer of its advantages, which the industry has never witnessed before. Our mantra is “INNOVATION AND CUSTOMER SATISFACTION LEAD TO SUCCESS”. A product is not only a product it is a bundle of qualities and services, our shoes will be environmental friendly as we will use those materials which will bio degrade self. Since our pads have also to be refilled so we will also provide refilling bottles on our exclusive show rooms which a customer can purchase and refill his/her shoes according to his choice. There will be a number of strong and mild fragrances so that the customer can have a variety in choice. We are also trying to target health as it is always said that “ health is wealth” so in our shoe pads there will have acupressure points and magnetic points so that customer will not suffer from blood pressure problems.

For school boys/girls we will provide points for height growth, we also notice that some people suffer from over foot sweating these pads will try to stop the sweating from the leg because of which the shoe will become more comfortable for the user for day long.

Here's how you can avoid doing a Britney this summer. We had a good laugh reading about Britney Spears' stinky feet! Don't you remember? She took off her shoes while flying from Los Angeles to New York and her copassengers were ready to puke! The air hostess had to request her to put her shoes back on! Eww. Summer's round the corner (or is it already here?) and quite a few of us will have embarrassingly moist feet enclosed in open sandals. Stinking feet aren't just a winter phenomenon (closed shoes, thick socks, no ventilation). Once the sweat has evaporated, your feet can still give off a pungent odour - that besides giving the wrong signals about your hygiene will definitely put off the opposite sex.



The bottom of a shoe is named the sole. Insole The insole is the interior bottom of a shoe, which sits directly beneath the foot. Many shoes have removable and replaceable insoles, and extra insoles are often added for comfort or health reasons (to control the shape, moisture, or smell of the shoe). Outsole The outsole is the layer in direct contact with the ground. The material of the outsole depends on the function, dressiness, and quality of the shoe, but is generally very durable material, since it experiences the most stress. Dress shoes have leather outsoles; casual or work-oriented shoes have outsoles made of natural rubber or a synthetic imitation. The outsole may comprise a single piece, or may comprise separate pieces of different materials. Often the heel of the sole is rubber for durability and traction, while the front is leather for style. Specialized shoes will often have modifications on this design: athletic cleats have spikes embedded in the outsole to grip the ground; many kinds of dancing shoes have much softer or harder soles. These soles can be as hard as concrete, and very sturdy. Heel The bottom rear part of a shoe is the heel. These come in a variety of sizes and are usually made to support the large stresses applied to the heel of the foot. They are often made of the same material as the sole of the shoe.This part can be high to make the person look taller, or flat. Vamp, or upper Any shoe has an upper part that helps hold the shoe onto the foot. In the simplest cases, such as sandals or flip flops, this may be nothing more than a few straps for holding the sole in place. Closed footwear, such as boots, sneakers and most men's shoes, will usually have a more complex upper. This part is normally decorated or is made in a certain style to look fashionable and attractive for the buyer. Accessories to shoes
• • •

Shoe horn - can be used to insert a foot into a shoe by keeping the shoe open and providing a smooth surface for the foot to slide upon Shoe tree - placed inside the shoe when user is not wearing it, to help maintain the shoe's shape Shoe polishing equipment:

• • • •

Shoe polish - a waxy material spread on shoes to improve appearance, glossiness, and provide protection Shoe brush and polishing cloth - used to apply polish to shoes

• • •

Overshoes or galoshes - a rubber covering placed over shoes for rain and snow protection (Orthopedic) shoe insert - insert of various materials for cushioning, improved fit, or reduced abrasion. These include padding and inner linings. Inserts may also be used to correct foot problems Shoe bag - a bag that protects shoes against damage when they are not being worn Shoe stretcher - a tool for making a shoe longer or wider or for reducing discomfort in areas of a shoe Snow shoe - a wooden or leather piece which increases the area of ground covered by the shoe

Types of shoes
Dress and casual shoes
Dress shoes are categorized by smooth and supple leather uppers, leather soles, and narrow sleek shape. Casual shoes are characterized by sturdy leather uppers, non-leather outsoles, and wide profile. Some designs of dress shoes can be worn by either gender. The majority of dress shoes have an upper covering, commonly made of leather, enclosing most of the lower foot, but not covering the ankles. This upper part of the shoe is often made without apertures or openings, but may also be made with openings or even itself consist of a series of straps, e.g. an open toe featured in women's shoes. Shoes with uppers made high to cover the ankles are also available; a shoe with the upper rising above the ankle is usually considered a boot but certain styles may be referred to as high-topped shoes or high-tops. Usually, a high-topped shoe is secured by laces or zippers, although some styles have elastic inserts to ease slipping the shoe on. Shoes made from real crocodile skin, in a conservation exhibit at Bristol Zoo, England

Men's shoes
Men's shoes can be categorized by how they are closed:

Balmorals - the vamp has a V-shaped slit to which the laces are attached; also known as "closed lacing." In England, the balmoral is known as the Oxford. The word "Oxford" is used by American clothing companies to market shoes that are not Oxfords, such as rubber-sole bluchers. Blüchers - the laces are tied to two pieces of leather independently attached to the vamp; also known as "open lacing." In England, the Blucher is known as the Derby shoe. Monk-straps - a buckle and strap instead of lacing

Various other closings exist but are less popular such as side-elastic closings. Men's shoes can also be decorated in various ways:
• • •

Plain-toes - have a sleek appearance and no extra decorations on the vamp. Cap-toes - has an extra layer of leather that 'caps' the toe. This is possibly the most popular decoration Wing-tips - The toe of the shoe is covered with a perforated panel, the wing-tip, which extends down either side of the shoe. Wing-tips can be found in both balmoral and blucher styles. In England this is called a brogue.

Women's shoes

There is a large variety of shoes available for women. Some broad categories are: Pumps, known in the US as ballerinas or skimmers, are shoes with a very low heel and a relatively short vamp, exposing much of the instep. They are popular for warm-weather wear, and may be seen as more comfortable than shoes with a higher heel. High heels may be shoes with heels 2 inches (5 cm) or higher. They are often seen as having more sex appeal than low heels (see article for discussion) and are thus commonly worn by women for formal occasions or social outings.

Sneaker boot and sneaker pump - a shoe that looks like an athletic shoe, but is equipped with a heel, making it a kind of novelty dress shoe

Boots - Long shoes (covering the ankle) frequently made of leather. Some are designed to be used in times of bad weather, or simply as an alternate style of casual or dress wear. Styles include rubber boots and snow boots, as well as work boots and hiking boots. Slippers - Usually for night use, commonly worn with pajamas

Athletic shoes Men's and women's athletic shoes and special function shoes often have less difference between the sexes than in dress shoes. In many cases these shoes can be worn by either sex. Emphasis tends to be more on function than style.

Sneakers/trainers (also called gym shoes or tennis shoes) - general purpose athletic shoes; made out of rubber, cloth, and/or plastic to be lightweight, flexible, and have good traction. Special varieties available for basketball or tennis. Running shoes - very similar to above, with additional emphasis on cushioning.

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• •

• •

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Track shoes - lightweight; often with plastic or metal cleats Cleats - a type of shoe featuring molded or removable studs. Usually worn while playing sports such as rugby, football, American football, or baseball Golf shoes - with "spikes" for better grip in grass and wet ground. Originally the spikes or "cleats" were made of metal but replacable "soft spikes" made of synthetic plastic-like materials with prongs distributed radially around the edge of each spike are much more common today (and are required on many golf courses since they cause less damage to the greens) Bowling shoes - intermediate style between ordinary dress shoes and athletic shoes. They have harder rubber soles/heels so as not to damage bowling alley floors. They are often rented or loaned at bowling alleys. Climbing shoes, also known as hiking shoes or boots - usually have a high somewhat stiff upper with many lace eyelets, to provide ankle support on uneven terrain, with extra large traction on the sole. Walking shoes - have a more flexible sole than the running shoe, lighter in weight than the hiking boot, may have air holes, may not be water proof. Skating shoes - typically called skates. They have various attachments for skating on the bottom of the shoe portion. o Ice skates o Roller skates o Inline skates Ski boot - a large, thick plastic boot specially designed for attachment to the ski. Skateboarding shoes have flat soles for a better grip on a skateboard. They are very wide and have extra layers of padding to protect the skateboarders feet. Many young people wear them for comfort. Cycling shoes are equipped with a metal cleat to interface with clipless pedals, as well as a stiff sole to maximize power transfer and support the foot. Snowshoes are special shoes for walking in thick snow. In temperate climates, snowshoes are used for mostly recreational purposes in winter.

Orthopedic shoes Orthopedic or "comfort" shoes are made with pedorthic and anatomically-correct comfort qualities, such as padded removable footbeds, wide toe boxes and arch support are made especially for those with problematic feet. Dance shoes
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Pointe shoes - shoes designed for ballet dancing, which have the toe box stiffened with glue and a hardened sole so the dancer can rise on the tips of her (or his) toes Ballet slipper - heel-less slippers made of canvas or leather, with usually a leather sole that may be continuous or in two parts (split-sole) - stiffer leather sole over the ball of the foot and over the heel, with the part of the shoe under the arch made of the softer material of the upper, so as the foot can be pointed to its utmost. Ballet slippers are usually secured by elastic straps. They are most

• • •

commonly pink, white, black, or pale tan, although they may be made in specialty colours such as red oor blue. Jazz shoe - similar in basic structure to a split-sole ballet slipper, jazz shoes usually have a longer vamp, securing the foot by laces or elastic inserts. Unlike ballet slippers, jazz shoes usually have a low (1" or under) heel. Tango/flamenco dance shoes Dance sneakers (or dansneakers)- a combination of a sneaker and a dance shoe, with a block toe like a ballet slipper Character shoes - shoes with a 1"-3" heel, which are usually made of leather, and often have one or more straps across the instep to secure the foot during dance. They may come in soft-soled (suede) or hard-soled varieties. They may be adapted into tap shoes by attaching taps.

Work shoes Work shoes are designed to stand heavy wear, to protect the wearer, and provide high traction. They are generally made from sturdy leather uppers and non-leather outsoles. Sometimes they are used for uniforms or comfort by nurses, waitresses, police, military personnel, etc. They are commonly used for protection in industrial settings, construction, mining, and other workplaces. Protective features may include steel-tipped toes and soles or ankle guards. Historical shoes Footwear has been worn for tens of thousands of years. Shoes of the past include:
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Espadrilles: these sandals, which are still worn today, are found as early as the 14th century. Patten: a European wooden overshoe used to keep a person's feet dry outdoors. First worn in the middle ages, they continued in use even into the early 20th century. Poulaine: a shoe with a long-pointed toe, popular in Europe in the 1400s.


• • • •

Breaking-in - Some shoes are made of hard but deformable material. After a person wears them multiple times, the material reforms to fit the wearer's feet. The person is said to have broken in the shoes. Polishing - for protection, water resistance (to some extent) and appearance, especially for leather shoes and boots. Heel replacement - heels periodically wear out. Not all shoes are designed to enable this. Sole replacement - soles also wear out. Not all shoes can have their soles replaced. Shoelace replacement.

When unfit for use, shoes can be treated as trash or municipal solid waste and disposed of. The exception can be with most athletic sneakers which can be recycled and turned into other raw materials. See Nike Grind as an example.

Someone who makes or repairs shoes in a shop is called a cobbler.

Comparison with competitors

: High quality, comfortable and stylish shoes. : Available in Europe and leading stores of asia & the middle east. : Range for men, women and kids. : Using modern technology. : Diversity with ranges in running, training, court, basketball, football and Outdoor

: experience in footwear industry
: It is synonymous with quality shoes : Range for whole family i.e men, women and kids. : Diversity with ranges from casuals to formals; from daily wear to sports wear and from an elegant collection for ladies to a fun range for kids. : The latest technology go into the making of Action footwear. : Available in Delhi, Haryana, Himachal Pradesh and Daman etc. : Action group endorses the principles of social responsibility

: The Lakhani Group – one of the largest footwear manufacturers in India. : Lakhani Vardaan is a market leader today, in beach & casual/sports footwear in India. :Uses latest technology. : Available for men, women and kids. : Known for good quality.

: Their main foray is in men’s shoes and children’s school shoe. : The company has created a range of 10 brands to exclusively cater to specific target groups. : 3 exclusive men brands, 2 exclusive women brands, 1 exclusive brand for children, 3 unisex brands of which 2 are sports shoes brands and one is a safety shoe brand for industrial workers. : The company has also expanded their product range to cater to the entire family (men, women and kids). : Company is known for its quality and soothe.

: Reebok is known as one of the leading innovators of athletic shoe. : Known for its design and superior technology. : Popular for aerobic, fitness and tennis styles. : Mostly preffered styles are reebok Classics and the cutting edge style of Rbk.


: Nike produces a wide range of sports equipment. : Started with Track running shoes and basketball shoes. : Also available in Wide range of sports shoes including track & field, football, baseball, tennis, soccer, lacrosse, cricket, and golf. : Nike is positioned as a premium-brand, selling well-designed and expensive products. : Available in wide range for men, women and children.

• Available with different fragrances (mild & strong) • Acupressure scheme for Hypertension • Magnetic pads- to control the blood pressure • The latest technology go into the making of frego shoes. • Light weight • Range for whole family i.e for men, women and kids. • Most important available in low price. Will be known for its good quality, long lasting service and comfort.



• • • • • • • • Pores in the pads, so that the fragrance can move upward Liquid with different fragrances (mild & strong) Acupressure in built in the pad Magnetic pads- to control the blood pressure Different color schemes & designs Refilling of the fragrance in the pads Range for male, female, children (above 15 years) Light weight


• For 1 year

Price of frego shoes is totally based on the relative prices of the other available brands in the market • Lakhani • Action • Liberty • Bata • M&B • Nike • Reebok • Addidas • Red tape • Lomani • Wood land • Puma • Austin, etc. Out pricing polices will be based on value based pricing and competitive based pricing, We wont be using price skimming technique as it is only for the technical products. Since our quality of product is good and we have number of different features provided there in the price ranges from 1500 to 5000.

WHERE WE ARE LOCATED • Headquaters in delhi supportedby multiple manufacturing and development units in states like• Rajisthan. • Uttar Pradesh • Daman etc • No. of executives are customer geographies with the purpose of creating and nurturing channel partners as well as customer relationship. MARKET COVERAGE • Targeting 70%of total customers • Mainly outlets in urban and sub urban areas

LOCATIONS ( for distribution)- trying to cover major urban and sub urban areas of:• • • • • • • • • • • • • • • • • • • • • Delhi U.P Maharastra Bihar West Bengal Andhra Pradesh Tamil nadu Madhya Pradesh Rajasthan Karnataka Gujarat Orrisa Kerala Punjab Harana Chhattisgarh Uttaranchal Goa Arunachal Pradesh Mizoram Pondicherry


ADVERTISING • Posters and Hoardings • Visual media • Printed –( Newspapers, magazines ) • Radios(All FM radio channels.) PUBLIC RELATIONS • follow CRM ( customer relation management ) techniques • corporate social responsibility.

• segmentation / target marketing





Customers • hiring carriage from independent carriers

• • • • Black box in the shape of shoe made up of hard board Logo is printed on the top leaf of the box with red color Using paper and jute bags for final distribution No usage of poly bags either inside for packing and for disposing off to the customers

Fitting tips
The right socks
When trying on shoes, make sure you are wearing the appropriate socks. For instance, if you are trying on boots that you would wear with heavy socks, don't try them on with thin nylons. The right time The best time to try on shoes is usually at the end of the day, when your feet are most swollen. The point of waiting until the end of the day is to make sure that the footwear can fit you at your widest-- kind of a "worst case scenario" check. The right foot The first shoe you try on should be for your larger foot. For most people, their larger foot is the opposite from the hand they write with. For example, if you're right handed, your left foot might be bigger. Always fit the pair of shoes to this foot. The first step Stand up with your shoes on. Walk around. You should be able to wiggle your toes in the front of the shoe. For most footwear, your toes will be able to touch the top of the shoe, but there should be 3/8" to 1/2" of space between your longest toe and the end of the shoe. Different styles can sometimes dictate a different amount of space at the end of the shoe for example " pointed toe" style. The right shoe Don't buy shoes that are too tight. If you're at the point where you're hoping they will stretch to be comfortable, they probably won't. It's true that soft leather and suede give slightly, moulding to your foot, but they will not dramatically increase in width or length. There's a difference between a "snug", comfortable fit and a "tight", uncomfortable fit. A few laps in the store should help you decide how you feel.

A wide range of materials and combinations are used to produce footwear nowadays. Leather, rubber, synthetic materials and fabrics are all mainly used for the uppers. Each material has its own specific features, not only in appearance but also in properties, performance and treatment. The type of material used has an important influence on how long the item lasts and, often, dictates the recommended use. However, the natural material that is most widely used for footwear is LEATHER. Leather breathes, it is soft, it has good impact resistance, it adapts perfectly to your feet. There are various main types:
• • • • • •

Smooth leather – has a soft surface with tiny pores, it can be shiny or matt. Drummed leather – has a very soft and lined surface. Patent leather – has a very smooth and shiny surface; it is easily damaged, due to chemical substances, to frost. Nubuck – is similar to suede and is easily marked even if you touch it lightly with your fingers, but they brush off easily. Leather – a type used for the soles on formal footwear. Crust – a section of the skin, under the surface.

In India, synthetic materials and fabrics are used for the uppers and insole or lining of a shoe. 2 most frequent used synthetic material used besides textile:

Polyvinyl chloride is flexible material that is chemically non-reactive. PVC accepts paints and performs well under most silk-screening processes have high strength. It's weather resistance, and odorless.

Polyurethane is a flexible and soft material that sometimes looks like leather. Very light but does not have a long lasting shelve life. Will tends to bio-degrade itself after 2-3 years into small molecular powder.

Symbols on shoes
A wide range of materials and combinations are used to produce footwear nowadays. Leather, rubber, synthetic materials and fabrics are all mainly used for the uppers. Each material has its own specific features, not only in appearance but also in properties, performance and treatment. The type of material used has an important influence on how long the item lasts and, often, dictates the recommended use. However, the natural material that is most widely used for footwear is LEATHER. Leather breathes, it is soft, it has good impact resistance, it adapts perfectly to your feet. There are various main types: •Smooth leather – has a soft surface with tiny pores, it can be shiny or matt. •Drummed leather – has a very soft and lined surface. •Patent leather – has a very smooth and shiny surface; it is easily damaged, due to chemical substances, to frost. •Nubuck – is similar to suede and is easily marked even if you touch it lightly with your fingers, but they brush off easily. •Leather – a type used for the soles on formal footwear. •Crust – a section of the skin, under the surface. Structures Upper Sole Lining

Materials Leather Smooth leather Textile Other materials

Customer promise .
A very personal service Our professional specialised staff is there to help you make the best choice. Don't hesitate to ask them for help or advice. Product presentation All the items are clearly marked with the price, size and description of the materials used to make the product, thus saving you time and making your choice easier. Your purchase is guaranteed

You have the guarantee to replace the purchased item if it is still intact and accompanied by the till receipt.


Alternative and Complementary Remedies for Hypertension Acupressure for Hypertension
Acupressure is useful as a Complementary therapy in managing hypertension. In traditional Oriental medicine, hypertension is said to be intimately connected with blockages in the Liver meridian. The following points are useful for managing acupressure: Gb 20, Li 11, Ht 3, St 36, Lv 3, and Kd 1 Caution: If blood pressure exceeds 200/100, do not do acupressure at all.

(St 36, Three Mile Foot) St 36 is the most effective point to rejuvenate the body and blood. The combination of Li 11 and St 36 is used extensively to treat hypertension. How To Locate St 36: This point is located four finger widths below the lower border of the kneecap and one finger width off the shin bone to the outside. Flex your foot up and down; you will feel the muscle move under your fingers if you are on St 36. Applying Pressure: Apply moderate to firm pressure on St 36. Hold the pressure for one minute. This point can also be stimulated either with the heel of your opposite foot, or with your fingers. 4. (Lv 3, Bigger Rushing) Traditional Oriental medicine practitioners believe that hypertension is intimately connected with blockages in the liver meridian. Lv 3 exerts a powerful, beneficial influence on all aspects of the body associated with the liver meridian.

How To Locate Lv 3: This point is located on the top of your foot, between the big toe and second toe. Start at the web margin of skin between the two toes. Now slide your index finger up between the bones until you feel a depression about 1/2 inch up. Applying Pressure: Using your index finger, press between the bones. Start with light pressure. Increase the pressure gradually as much as you can tolerate or until you are using moderate to firm pressure. Press for about 1 minute. 5. (Kd 1, Bubbling Spring) How to Locate Point: Kd 1 is on the sole of the foot between the second and third toe bone, two thirds of the distance from the heel to the base of the second toe. It's just below the ball of the foot.

Applying Pressure: Press firmly on the point for about a minute.

“SEGMENT” – A market segment consists of a group of customers who share a similar set wants.

The marketer does not create the segments; the marketer’s task is to identify the segments and decide which one(s) to target. Segment marketing offers several benefits over mass marketing. We at Frego shoes believe that we can create a more fine-tuned product or service offering and price it appropriately for the target segment.

1) GEOGRAPHIC SEGMENTATION: Calls for dividing the market into different geographical units, such as, nations, states, regions, cities or neighborhoods. We will be operating basically in the Urban and Suburban areas and tend to slowly and steadily expand business. 2) DEMOGRAPHIC SEGMENTATION: In this the market is divided into groups on the basis of variables such as age, family size, family life cycle, gender, income , occupation, religion, generation, nationality and social class. We are basically catering to children above 15years of age and adults. 3) PSYCHOGRAPHIC SEGMENTATION: In psychographic segmentation, buyers are divided on the basis of lifestyle or personality or values. People within the same demographic group can exhibit very different psychographic profiles. Keeping the aforesaid in view we have laid special emphasis on the attitudes, interests and activities. Moreover we have tried to analyze the different personality traits of the individuals surveyed. For instance youngsters wish to go in for more abstract designs and peculiar fragrances. They believe in the notion to be “DIFFERENT”!!!! Office going ladies want something smart and comfortable because they have to do all the chores (of the house as well as of the office ). Office going males want something very comfortable and a very strong fragrance because they have to wear the same footwear all day long. 4) BEHAVIORAL SEGMENTATION: Here the buyers are divided into groups on the basis of their knowledge of, attitude toward, use of, or response to a product. Like many marketers we also believe that behavioral variables – occasions, benefits, user status, usage rate, loyalty, buyer- readiness stage, and attitude are the best starting points for constructing market segments. We have designed our questionnaire keeping in mind the above parameters.


Out pricing polices will be based on value based pricing and competitive based pricing, We wont be using price skimming technique as it is only for the technical products. Since our quality of product is good and we have number of different features provided FORMAL SHOES INFORMAL SHOES

Men Women Kids

from Rs. 999 from Rs. 799 from Rs. 599

from Rs. 1599 from Rs. 1399 from Rs. 1199

Competitive 5 Forces modal:

The five forces modal of Porter is an outside-in business unit strategy tool that is used to make an analysis of the attractiveness (value) of an industry structure. The Competitive Forces analysis is made by the identification of 5 fundamental competitive forces: • • • • The entry of competitors -It basically deals with figuring out how easy or difficult is it for new entrants to starts to compete, what kind of barriers do exist, etc. The threat of substitutes –It deals with analyzing how easily can our product or service be substituted, especially by cheaper versions. The bargaining power of buyers- how strong is the financial position of the buyers. The rivalry among the existing players-Is there a strong competition between the existing players or not.

Value Chains

Michael Porter first developed the concept of value chains in his work on competitive advantage. Since then, there has been a considerable amount of work to expand on Mr. Porter’s original concepts. Value chain analysis, along with supply and demand chain analysis, are staples of modern business management. Value chain and value coalition analysis is a business design approach that defines processes based on economic value to a customer. To illustrate the value of the approach, we can briefly compare it to two other widely used business process design approaches, 1) work activity and, 2) functional organization: Work Activity Based A work activity based approach is a process design based purely on some set of activities supporting a workflow. An activity is defined as some effort that transforms or creates an object. For example: A work activity based process design on a purchasing workflow would include the creation of a purchase order. This approach is useful in determining the efficiency or effectiveness of a workflow process, but is not always useful in determining whether the activity should have been performed in the first place. Functional Organization This approach involves the top  down organization of functions based on types of activities, e.g., finance, marketing, and engineering. This approach is generally the least effective as it tends to result in disconnects across the enterprise as well as sub-optimized processes, but it is very popular due to its simplicity. As illustrated below, you can map a functional hierarchy to a process map, but one does not flow out of the other. The theory is that the process-based activities, especially in the case of a value chain based process design, will better align your enterprise to its customers.

Using the value chain approach, processes that provide direct value to the customer are modeled first. Derivative processes that support the value chain processes are modeled to support the value chain. The general concept is that by defining your enterprise around

the revenue producing value chain processes, the enterprise will be more effectively aligned with its customer’s needs.

Provide Quotes

Provide Aggregate Pricing

Manage Vendors & Provide Sourcing

    Customer

Channels Sales Force Call Center G2G Exchange

Provide Planning & Req. Definition Support Manage Funding & Contracting

Develop Sourcing Strategies  B2G Exchange Acct Reps Support Staff

Process Orders

Procure Products or Services

Process Payments

 

Suppliers/ Vendors

Dispose of Gov. Assets

Track/Adjust Orders

Provide Oper. & Maint. Services


Out of scope in Phase 1

Manage Projects Purchasers

Phase 1 Value Chain Analysis Focus

Provide Logistics

Phase 1 Value Chain Alignment Areas

Michael Porter’s Value chain
Porter distinguishes between primary activities and support activities. Primary activities are directly concerned with the creation or delivery of a product or service. They can be grouped into five main areas: inbound logistics, operations, outbound logistics, marketing and sales, and service. Each of these primary activities is linked to support activities which help to improve their effectiveness or efficiency. There are four main areas of support activities: procurement, technology development (including R&D), human resource management, and infrastructure (systems for planning, finance, quality, information management etc.). The basic model of Porters Value Chain is as follows: The term ‚Margin’ implies that organizations realize a profit margin that depends on their ability to manage the linkages between all activities in the value chain. In other words, the organization is able to deliver a product / service for which the customer is willing to pay more than the sum of the costs of all activities in the value chain.

The value chain method has been extended to include the value coalitions, which recognizes that some processes need to allow greater flexibility. The value coalition ® model recognizes that value is often created by the simultaneous interaction of several units:






In the above illustration, R&D, Marketing, Production and Customers all are viewed as working together to add value. Problems arising in the value coalition® model thus involve several units and requires their simultaneous participation to find solutions. Performance management measures are ordained by the organization’s strategic direction and the tactics required to achieve the strategy. The figure below illustrates that effective performance grows in complexity as it moves from the individual to the team, and to the values chain and coalition level. This is because the number of different people, specialties, and types of information tends to increase at higher levels of the hierarchy.

Hierarchy of Performance

Values Chain & Coalition Performance
Team Performance
Individual Performance


CONSUMER BEHAVIOR The major factors influencing buying behavior :-

Cultural factors:
Culture:Material comfort Individualism External comfort Sub culture:There would be a very low effect of sub culture. The main target customers lie in urban and semi urban region. Social class:This will pay a vital role with the rise in brand image there will be continues rise in the sales… Social class will be formed by many clusters, which will affect buyers buying behavior mainly they are occupation, social class, wealth, education. Shoes is very diversified product we can’t focus on any single section so buying behavior will change from social class top to bottom.

Social factors:Reference group:We won’t be using any big endorser product we will follow a simple strategy showing normal people in different part of life. Our target will be lower upper, upper middle middle class and working class and try to cover 75% of the total customers Family:Family is divided in 2 catagories

Family of orientation and family of procreation The effect of family of orientation is very low but there is a person behavior effect with the family of procreation now a days husband and wife both go on shopping and each others choice matters a lot in buying the product with shoes. But a number of time it is also seen that usually husbands buys shoes of there choice. Occupation and economic circumstances:In buying behavior the targeted people will be good post holders in job. Having good income and are single, following the “DOUBLE INCOME NO CHILDREN SYNDROME”, married and even retired {who are health and status conscious}.

1) sincerity:-as sincerity means down to earth , honest , wholesome , cheerfrul after using our product you we feel cheerful in life as it will fulfill its task as has been prescribed you will feel then things which we have mentioned is not fake and we have given as we have given about the product and we don’t say after wearing it you will feel like heaven but it is down to the earth and we believe in what we are giving its should be upto what we said . 2)excitement:-like people are daring, imaginative, spirited, up-to-date after wearing the shoes you will feel like doing something great having high spirites in life , if you feel fresh then your imaginative power also gets freshen up ,and as you feel freshen up, you can also keep your self up to date and can be in race with other people targeting high tasks and doing hardwork to fulfil them nad you feel excited also you also will feel that you are young again you will feel cool from inside and a happiness will come from ur heart as it will take care of your health also keep your body cool and not harm your body it will keep you mentally as well as physically fit as you are physically and mentally fit you yourself will fell good. 3)competence:- competence is something which is related to reliable , intelligent , successful as you wear the you will know how successfully it work and how reliable it is and you haven’t wasted your money in things which you after buying is of no use to you but instead you will feel like you have invested in right direction and you have intelligently also and as it will work successfully you will come to know how reliable it is and as we are using good material also you can rely that you have invested your money at the right place and is it is also serving the purpose for what it is bought , 4) this shoe is only for the middle upper class and also for the upper class it will give them charm whem they will be wearing this shoes because some people

feel satisfied after the have spent something and some spent on brand also so both the needs are satisfied . 5)ruggedness:- our shoe is tough also because it is made of such a material that it will last long and you can enjoy your shoe as much as you can it will not get worn out easily as it will last long you will feel like what you have spent is not wasted and you have utilized the whole money you have spent you have not taken any wrong decision you right in taking the decision you have taken because in som cases after people buy things they feel that they taken some wrong decision but it will not happen in our case you will feel satisfied at every part you look because we believe in customer satisfaction , customer is the first priority for us if he /she is satisfied we feel our efforts are not wasted we feel our efforts come true .

Pre launch and launch day:
We will show half addvertisment 2 months before through different mediums of promotion. In order to create curiosity in buyers. On big retails outlets Big bazaar, Fashion station, Spencers, etc. We will put sample shoes for sale so that feedback can be taken properly of the buyers and subsequent changes can be bring about it. 2 days before launching we will start showing advertisement all around the country for our pdt. in starting 2 months our maximum investment on video, audio and print adds. There will be an advertisement on every channel at all possible time because ”JO DIKHTA HAI WHO BIKTA HAI”. We will take into consideration radios also. We will be doing public gatherings sponcering shows and events. Our adds will be very simple sover showing standard life with showing all qualities. To sell a product it is necessary to create a big brand image. Secondly our competitors are multinationals with lots of money, brand image and quality so it is necessary to hit the market on right time and right place. We wont be launching our shoes near to off season or seasonal sales time as this time prices of our competitors wil On the day of launch we will hire trucks and busses and show stage shows in mall roads where there is a big public gathering. For shows we will target in big cities so that our target customers that are middle upper middle and high class persons. Adverstisments will be showing everything and targeting on quality of product and our aims. Will try to show that shoes are not just normal shoe it is ” SHOES MADE WITH LOTS OF RESEARCH” for every individual customers.

1234We will give value to customers investment. We will reduce the environmental impacts of our operations. Caring for the welfare and development of our employees. We will make a positive difference to people in the communities where we will operate. 5- We will publish our company policies and techniques in the bulletin for public assistance. 6- Feedback of every customer will be taken on a questioner. 7- Customers will be informed about companies latest innovations through mails. 8- It is seen that on right time there is not a right person on right place so by special attention would be given on sales staff. 9- Special training program for the managers in big retails outlets. So that the consumers can easily be assisted and proper feedback can be taken. 10- After sales services will be provided to the customers 11- Guarantee of your purchase If you return the pair of shoes in good condition within next 20 days, with receipt. We will change the shoe with another pair.

1- Analyze, evaluate and assess the social and environmental impact of new products, technologies and processes at the design and development stage. 2- We support social and environmental projects and develop partnerships with businesses and organizations whose direct or indirect output contributes to a sustainable society. 3- Keeping the environment into consideration, we will be using jute and papers bags for packaging but no poly bags as poly bags are harmful to nature. 4- It not only work for the welfare of the employees we will also try to provide welfare programs for there family. For instance we will provide education facilities and try to provide home based work for the ladies in the house. 5- Special training programs will be organized for our employees at each level so as to provide them with a platform for professional as well as their personal development.

QUESTIONER ANALYSIS:1 How often do you wash your sport shoes due to bad odor? • Once a weak • Once a month • More than a month

20 15 Once a weak 10 5 0 Once a weak Once a month More than a month Once a month More than a month

male 18 2 5

female 16 6 5

2 For what purpose you use your sport shoes? • Heavy exercises • Jogging / light exercise Fashion

20 15 10 5 0 Heavy exercises Jogging / light exercise Fashion

Heavy exercises Jogging / light exercise Fashion male 3 15 7 female 1 16 10

3 What kind of inner shoe padding you would prefer? • Regular • Soft • Acupressure
18 16 14 12 10 8 6 4 2 0 Regular Soft Acupressure male 10 7 8 female 3 17 7 Regular Soft Acupressure

4 In leather shoes you will prefer laces? • Yes • No

18 16 14 12 10 8 6 4 2 0 Yes No male 9 16 female 14 13 Yes No

5 Size of heals preferred • 1 inch • more than 1 inch

25 20 15 10 5 0 1 inches more than 1 inches

1 inches more than 1 inches

male 21 4

female 16 11

6 Color preference (formal shoes) male: female:

20 15 male 10 female 5 0 male female

black 19 17

brown 4

white 2 4

light pink

skin colur



7. Color preference (sport shoes) male: female:

25 20 15 10 5 0 male female male female

white 21 19

blue 1

grey 1 1


black 3


8 Is FREGO a good name for a fragrance shoes • yes • no

16 14 12 10 8 6 4 2 0 yes no male 15 10 female 13 14 yes no

We were given the task to introduce something innovative like an entrepreneur. This time our area chairperson asked to make a project on any innovative product not yet launched. This was not an easy task but with the proper guidance and facilities provided by the college we’ve tried to introduce a novel product. It’s a group of nine members who’ve conventionalized this idea and who have the firm conviction to launch such a product sometime in the coming future So we came up with the name frego. It is a product for customer ,and since we believe that “CUSTOMER IS THE STARTINFG AS WELL AS THE END POINT OF EVERY MARKETING STRATEGY “ hence we conducted the questionnaire survey. We tried to know there views about it. what they want in there shoes what are there tastes and preference and try to make a product accordingly. We came to know that people are welcoming the idea of acupressure and fragrance. In color they will prefer black for formal and white for sports, but since we are targeting 70% o the population we can not run the our with 2 colors so we will use all colors but specifically white and black. We also understand the meaning of CSR and CRM that’s why from starting we will be using these techniques so that goodwill will create in the market. We do not want to do the same blunder as DELL has done by not having proper RM techniques. Seeling is just not the end we should offer services also worth pdt as we have already said in the project that a product is a complete bundle of good services and values. So we do not want to compromise on this ground also. We will be using C.L.R.I certificate and all fitness norms as a hole in boat can be disastrous in same manner one error can create a big mess for the whole company that’s why we take every step with measures, secondly our competitors are very strong and have good image and captured the market very well so to penetrate we have to be very careful. A person buying a shoe will buy a next 1 in min 6 months and even after a year or 2 so designing should also be in such a manner that it should be very attractive. We can not lower our prices too much as our major competitors are Nike, Reebok Addidas, woodland , M&B, etc so we are going on for competitive pricing and value based pricing.

Create curiosity to attract human that’s the key funda we use launching and pre launching techniques”. We will make curious our customers about the product and by the time we can judge the consumer attitude towards the product. We have to use all sources of promotional tools to penetrate in market easily. Rest we will like to say it was a great experience for all of us working on this project as a team, this was realy very challenging and tough and we have came to learn a lot of things with each other experience and about the shoe industry in India.

Annexure:A research program by a research organization relating to footware:-

Research Synopsis Footwear Category
In an effort to better understand customer attitudes and purchase behavior in the footwear market, Ovation Marketing has undertaken an in-depth survey in that arena. Footwear, unlike many other categories is first a necessity purchase and second a luxury or nonneed based purchase. Because of this, nearly everyone, at every income level, of every race buys shoes. For this reason, the results culled from this survey focus more on spending, the similarities and differences of male and female purchase habits, and the competitive landscape in this arena as opposed to demographics. One of the first interesting nuggets this survey displayed was the inverse relationship between male and female shoe buyers. Surprisingly, though women often own more pairs of shoes than their male counterparts, men are more likely to spend more money for the right pair of shoes. Women are far more swayed by sales and nearly half of our respondents admit they will buy a pair of shoes if they see a sale even if they weren’t planning to purchase shoes that day. But they are price conscious, 41% say they set a budget and won’t buy a pair of shoes over that amount even if they find one they like. Men, on the other hand, tell us they will pay top dollar for a good fitting shoe. As a matter of fact, 35% of men feel like they have to pay top dollar to get shoes that fit.

Both men and women agree that the number one reason to purchase new shoes is that an old pair has worn out. But the similarities on purchase rationale end there. Half of our female respondents cite that a change of season is another reason they purchase shoes, but only 20% of the men agree. The same holds true for buying shoes to match a new outfit. Most of our respondents were relatively brand neutral, and not terribly concerned about the brand of shoes they were wearing or aware of the brands others are wearing. Women, however, are far more interested in a designer looking shoe…and the majority say they won’t pay top dollar to get that look, opting instead for the knock-off at a lower price. On the topic of price, the majority of our respondents spend an average of $25-$50 for both casual and dress shoes. Men, however, are far more likely to spend $50+ on dress shoes than women. This adds further support to our female respondents assertion that they set a budget and stick to that price when purchasing footwear Nearly half of our respondents purchased roughly 1-2 pairs of shoes per year, followed by 25% who purchased 3-4 pairs. As expected, women purchase more shoes than men annually and are also responsible for purchasing shoes for spouses and children at a higher rate than their male counterparts. Just over forty percent of footwear buyers make their purchases in a department store and/or a national chain shoe store. A third of them patronize their local shoe store, with just under a fifth buying from mass merchants. Interestingly, the preferred shopping location varies by income level. The upper income shoe buyers prefer to purchase their shoes in a department store, compared to the lower income group who is more likely to buy from their local shoe store or mass merchant. Most respondents agree that comfort is at the top of their list of important considerations when selecting new footwear. Following comfort, they cite durability, style, genuine leather, color, and traction as top features. At the bottom of the spectrum, hand stitching and recognizable brand were not noted as important at all. Finally, when asked what advertising mediums affect their decision to purchase shoes, the point-of-purchase display received the highest marks. This is due, most likely, to the high level of emphasis shoe buyers put on sales. Newspapers were also cited as an important influence, as well as manufacturers catalogs. Rounding out the list were TV (8%), Magazines (6%), Internet (6%), and Direct Mail (6%).

Name :Age:Sex::Questions:1 How often do you wash your sport shoes due to bad odor? • Once a weak • Once a month • More than a month 2 For what purpose you use your sport shoes? • Heavy exercises • Jogging / light exercise • Fashion 3 What kind of inner shoe padding you would prefer? • Regular • Soft • Acupressure

4 In leather shoes you will prefer laces? • Yes • No 5 Size of heals preferred • 1 inch • more than 1 inch 6 Color preference (formal shoes) male: female: 7 Color preference (sport shoes) male: female: 8 Is FREGO a good name for a fragrance shoes • yes • no

PRINT add 1 we have used green colour as it is an environmental friendly product and red colour as it is the colour of our brand. We have shown the logo on extreme right hand because we read left to right therefore its in on extreme right and since it is a shoe company so dif types of shoes on left. And there are maple leaves all around to show it attractive. Second pront add shows values and the happy customers only red colour is given because it is again brand colour. Adds will be given in film magazines news papers. In newspaper we will give in first page and last page in the middle so that it will directly attract the customer.

PHILLIP KOTLER: Marketing Management{millennium edition} MALHOTRA NARESH: Marketing Research C.R. KOTHARI: Research Methodology KELVIN KOTLER: Principles of Marketing SCHIFFMEN and KAUNK: Consumer Behavior ZIKMUND and AMICO: Marketing [4th edition]

2) NEWSPAPERS: - Economic Times - Business Standard - Times Of India. 3) WEBSITES:
http:/// http: http:/