Demographics:
• 18 – 50-year-old
• Marikina or NCR based
• Who are currently updated with the latest fashion trends and who are fashion enthusiast.
Psychographics:
• Customers who prefer comfort and durability for the shoes
• Customers looking for retail stores that are up to date with the latest fashion trends that are selling it at a price worth the value of the product.
• Customer who are also looking for shoes that has versatility when it comes to its usage and design.
CHAPTER 6
INDUSTRY ANALYSIS
Pestel Analysis
Economic Factors includes the economic state of the industry and its consumers.
• Young adults segment is 22% of the total population as of 2014
• The Filipino Millennials (ages 18 to 34 years old) has been recorded that there has been a difference to the other
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Customers will prefer buying the shoes if it focuses on these top 3 qualities when it comes to the shoes:
1) Quality
2) Comfortable
3) Durable
For the technological factors it includes the platforms mostly used by the competitors and what is its effect to the product.
• Internet retailing has grown by 13% in its current value terms in 2015
• Internet retailing for apparel and footwear contribute greatly to the channel
• Growth of internet retailing has been credited to retailers’ efforts to develop businesses by improving their products expanding their reach to serve other areas aside from Metro Manila and carry out promotions like markdowns and discounts.
• Retailers focuses on providing variety of fashion items and brands that attracted customers, some of them also offered items that are about to be distributed and introduced into the market.
• E-market places like Lazada and Zalora has helped provide small businesses to reach out to their target market
• E-marketplaces also allowed established business and brands to try and enter the internet
Nordstrom retail stores have large hallways, and everything is presented in a very classy manner. The color scheme includes pale yellows, whites, and gold, to provide a more elegant appearance in the store in order to make the shopped feel special. The design is also seen through product organization. Compared to stores like Macy’s, which organize their products based on brand, Nordstrom organizes their products based on lifestyle. Because of this, it is easier for shoppers to find clothes similar to their style as opposed to by brand. In effect, shoppers will purchase more products. This also is a type of experiential retailing, where Nordstrom customers are able to experience the elements of their lifestyle within one section. More so, the product presentation will draw people’s eyes to products, even if they are not looking for it. This gives Nordstrom a competitive advantage in relation to other similar retail stores because it makes their store look more glamorous and high-end. While other stores may focus on value, Nordstrom utilizes the retail positioning strategy to make a customer feel more high-end and
Key Issues The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon, which are gaining considerable market shares in many of the product segments included in the specialty retail sector. Currently, the majority of revenue is generated by store sales, but online sales from the stores’ websites are increasing. With the US dollar getting weaker, international sales from these US based websites are increasing too. This creates a significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
The franchise owner is results oriented. Meeting and exceeding sales goals is the main objective of daily, weekly, and monthly goals. His main expectation of the staff is getting the job of selling shoes done right the first time and in an efficient manner. It is expected that the sales representative does such an excellent job that the product does not return back to the store. SAS Shoes is a very structured business model at the level of retail. There are very detailed steps that the employee is required to follow from adhering to the strict dress code, utilizing the four-step selling structure, to putting the shoes back in their assigned boxes the correct and efficient way. The employee is expected to not only meet but excel at using these meticulous techniques. Although the culture at SAS Shoes is very stringent, it works well with the ever changing environment surrounding shoe sales in Albuquerque, New
Product: As an athletic shoes producer, they try to provide better quality and more comfortable shoes that fit to the sport player through research and development. By claiming their shoes meet the physics need of different sports, which help the sport player to maximize their ability by protecting them and reduce the sport harm.
The corporation should invest more money in research and innovation since this is what has helped them to make a product that rivals their competitors. At the same time, it is imperative for them to improve their machinery for cheap labor costs which will help the company increase its production allowing it to meet the demand in the market. By improving production leading to lower costs of making shoes, apparel, and equipment, Nike will achieve higher demand assuming a quality product is maintained in that process. They will stand a better chance of competing in the industry (Hill, 2009). The organization is already in a better position for meeting the demand, customer taste, and needs. The company should improve quality by focusing on developing lightweight products that are more durable compared to those offered by the competitors. Also, Nike can keep up their success by continuing to reinvent and improve their items and continue to meet the current demand by using new technology. It can also use the Internet to communicate with consumers (Hill, 2009). By developing new technology, Nike will allow the customers to suggest and design their shoes online. To achieve this goal, it is fundamental to enhance areas such as their website to make it more user-friendly. Finally, the company should pay attention to small startup organizations that enter the
Over the previous couple of decades, modern business has been evolving rapidly and the retail industry has been no exception. Whereas previously the customers received retail ads and offers from disconnected sources, today retailers are operating a combination of all available retail marketing methods to reach the customer.
Based on these concerns, retailers in the international marketplace have their work cut out for them. But through proper education of consumers, and the ever-expanding growth of the infrastructure in many countries, the future seems to be leaning heavily towards using the Internet for many needs.
In this Case Study Analyses, an objective SWOT Analyses will be done to help identify potential strengths, weaknesses, opportunities, and threats within the Nike Corporation.
Zappos.com is a website that started off just selling shoes but now sells items such as handbags, clothing, and housewares in addition to shoes. Their company logo includes their catchy name with an explanation point as the end in the shape of shoe print which leads consumers to believe Zappos has strong feelings about the service they provide to their consumers. Zappos believe that customer service is the number one priority and is focused on cultivating repeat customers which is why they have always provided free shipping on both orders and returns; occasionally provides upgraded shipping so customers can receive their shoes the same day that they are ordered even though this is very expensive to the company; and they only show products on their website that they actually have in stock albeit they lose 25 percent of their potential business by doing so (Walker, 2009). For a compa...
Consumers tend to be more demanding and more arbitrary, so use appropriate strategy will be critical to all fast fashion retailers.
The Shoe Industry consists of a multitude of footwear categories, varying in utility, style and occasion. When overseeing the market for the shoe industry, we must look at the influence of all shoe trades universally to comprehensively understand how the disparities in sales relate to the needs of specific regions. The global retail market within the shoe industry currently represents $185 billion, driven primarily by Asian and Latin American economies and is expected to reach $211.5 billion by 2018. The growth rate globally was 6% between 2004 and 2008, contrasting to the 2% compound annual growth from 2008 to 2012. The United States holds over 24% of the overall industry size it projected over $48 billion in annual revenue in 2012. Domestically, the growth rate has been flat at 0.3%. On a unit volume basis, global footwear consumption for 2012 is approximately 11,421.3 million (in pairs), where the United States makes up roughly 2,741.1 million (in pairs). By 2018 the U.S. Census Bureau has forecasted a steady decline within demand domestically of 3% and an increase of 1% globally.
My ultimate goal is to be a “buyer” for a clothing store, and to be able to travel the world. A buyer is an individual who selects what items will be sold in a store, based on his or her forecasts on what will be well-liked by consumers. For smaller independent stores, a buyer may partake in sales as well as advertising. However, in a major fashion industry, there may be different levels of superiority, such as novice buyers, assistant buyers, senior buyers and buying managers, and buying directors. Decisions about what to stock can greatly affect fashion businesses.
According to Blythe (2012), marketing is a management process which identifies and fulfils customers’ needs and at the same time, makes profit. By having appropriate marketing concepts, Charles and Keith manages to develop within few years from an unnoticeable small shoe store to an international footwear brand which occupies a significant place in the industry.
In reviewing the case of New Balance Athletic Shoe, Inc. it is clear that there are a few major problems that the company is facing. First of all, New Balance falls behind its other major competitors, Nike, Adidas and Reebok, in the area of marketing. Unlike its competitors, New Balance does not undertake celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This also causes the company to lose out somewhat on gaining awareness on a global scale as it lacks endorsements in major sporting events. Most global brand names generate strong brand recognition through celebrity endorsements in sporting events that would give them the needed momentum to carry their brand name further into the global market.