Solemates

The right mate for ur soles

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Company profile

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Company profile
Solemates is a non leather premium womens footware brand which would originates from Chennai that will be started by a set of college students in 2011. It shall have just one store located at express avenue, royehpetta , Chennai . It deals with fashionable footware for women. They will have all the recent trends for all seasons ranging from flip flops to tip toe high heels and sophisticated stilletoes .We believe in total quality management which is the USP (unique selling proposition)of our brand says one of the partners when asked about the USP of the brand ,which means we care for quality and if by any chance there is some problem with the product all you have to do is just bring it to us and we would just replace it for you or you get to choose another type of footware in the same range . adds another partner. we are planning to expand once our vision has been achieved! exclaims another partner . This is a medium sized store which is around 5,000 sq ft . It has 4 partners and who manage the store and a visual merchandiser , two store keepers .the partners manage the cash , also the supervision .

Business concept
To import good quality of non leather footware from china and sell it in India at premium price at a central location and in two years time become worlds leading non leather footware brand for women .

Business plan Location

It is very important that the store be located in a very central and accessable location it could be a mall, bazzar, high fashion street, shop in shop. My store is going to be located in a mall ,express avenue , roypetta.

Size of the store

This is the next factor to be considered . The size of the store matters as the visual merchandising, fixtures , stocks , shelves ,etc . Size of the store: 5,000 sq ft .

Layout

SWOT analysis

STRENGTH Eco friendly as they are non leather . Innovation

WEAKNESS

OPPORTUNITY

THREAT Competition from leather sectors

Mind set of people Only 3% of footware sales is premium non leather footware Lack of experience as the brand is new to the market People are becoming more fashion conscience and eco friendly

No entry barriers

Goals and objectives

Goals and objectives are the primary requirement for a business plan as only when there is a defined goal, objective and the vision stated the company would know what has to be achived and would decide the ways to achieve them which is called the mission .

Goal :
To become the world leading non leather premium footware brand in the world .

Vision
To achieve good visibility for the brand in order to meet the goal in two years time

Mission
To adapt to changes in the environment and to offer better benefit of non leather footware . Sourcing of non leather footware from overseas at lower cost .

The four Ps of marketing

The four ps of marketing include product , price , place and promotion . Product is something that is either tangible or intangible that benifits a consumer . Here the product is non leather premium footware for women . Price is the quantity of payment or compensation given by one party to another in return for goods or services. There are different types of pricing strategies like physchological pricing, penetration pricing , skimming pricing , etc. Here, im goning to follow physcological pricing . Psychological pricing is a marketing practice based on the theory that certain prices have a psychological impact. The theory is this drives demand greater than would be expected if consumers were perfectly rational. Psychological pricing is one cause of price points. Place refers to providing the product at a place which is convenient for consumers to access. It not only the location but also the channel of distribution . the channel of distribution that im going to follow is retail format . Promotion represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as advertising, public relations, personal selling and sales promotion. . The promotion strategy that i would be using are attractive displays which is basically the visual merchandising and also advertisement in media and attractive offers during festive seasons , various customer retention strategies like privilege cards , birthday gifts and special offers .

Product profile
Some people prefer to spend their money on eco friendly shoes to maintain a vegetarian lifestyle. Others are more concerned about sustainability of the planet and how the materials used in making shoes, such as leather, affects animals and the environment. Yet others are bothered by the use of toxic materials, such as glue used in making most shoes and how those toxins are absorbed into our bodies and affect our overall health. Whatever your motive is for choosing eco friendly shoes, you are most definitely not alone. Here we are ! Solemates -the Fashionable non leather footware made out of organic cotton, bamboo and synthetic . Whether you are looking for a fabulous three inch heel to go dancing in or comfortable running shoes for the entire family, you can now choose to go green with your footwear and have eco shoes for each occasion.

INTRODUCTION TO FOOTWARE RETAIL INDUSTRY Footwear is a necessity to every person and at the same time is now a lifestyle as also a performance enhancement product; and is thus a segment with vast potential. The Indian footwear market is estimated to be worth Rs.13,750 Crore and constitutes just about one percent of Indian retail. About 37.8 percent of Footwear retail is in the organized segment, which qualifies it as the second most organized retail category in India, next only to Watches. Men's footwear comprises the largest share of the organized market accounting for about 52 percent in value terms. As footwear retailing in India has remained focused on mens shoes, there exists a whale of opportunity in the exclusive ladies and kids footwear segment. This is especially surprising as women globally in line with global trends are the key decision makers for buying footwear. The ladies footwear segment still remains the most untapped as nearly 80-90 percent purchases happen in the unorganized market largely due to the dressing habits of women for whom consideration of durability or comfort are less important than colours and designs that go with dress. With the Indian woman becoming more brand-conscious as opposed to the past state of being product-conscious, more and more internationally renowned players are expected to enter the Indian market to fill this need-gap.

Volume Share of Products Segments in Footwear

The children's and kids' segment also accounts for a significant share due to the increased emphasis on sporty looks. Given Indias very young population, the market for childrens footwear is also attractive for new organized players to enter and earn supernormal profits.

Volume Share in Footwear

The footwear market today is showing a trend where more and more competitors within the segment are coming together and forming alliances through crosspromotions and tie-ups benefits for enhanced reach and offering the consumer access to a wider range of products and brands. The London-based Carlton group became the first overseas player to enter the Indian womens footwear market when it set up its first store at the MGF Metropolitan Mall in Gurgaon recently.

Growth of Indian Footwear Retail ( Value Rs. Crore at 2003-04 Prices )

The entry of specialty sportswear retailers such as Royal Sporting House, Sports Station and Planet Sports providing the best shopping experience for customers and a platform to showcase the worlds top sports and active lifestyle brands has transformed the organized retailing scenario in the country. Royal Sporting House has over 40 stores in India, many of which are placed in prime locations within shopping malls. It is the exclusive distributor of brands such as Mizuno, Caterpillar, TYR, Dunlop Sports and non-exclusive ones such as Reebok, Adidas, Nike and Skechers. Planet Sports, with 20 outlets in the country, is the licensee in India for leading sports brands such as Puma, Speedo, Converse and Wilson, among others. The sportswear market is the only sector in India that has the presence of all three top international brands. The year 1996 witnessed the entry of Nike, Reebok and Adidas that gave a new dimension to footwear and fashion retailing in the country. Playful promotion campaigns, world class merchandising and the internationally styled stores enthused consumers to go for an extra pair of shoes and a couple of extra Tee Shirts and add a little bit of sporty images to their lifestyle. In the face of increasing competition from leading multinational players, domestic footwear retailers have also woken up to the opportunity that the segment beckons and are realizing that exposure to shopping standards abroad have made Indian consumers demand the same formats and experience here. Responding to this challenge, major domestic players like Bata and Liberty have significantly transformed their retail formats to become more lifestyle- oriented and are positioning themselves as vibrant and contemporary Indian brands.

In recent years the market has seen entry of a host of new domestic and foreign brands like Drish, Lotto, Lotus Bawa, Now, Oakridge, Royal Elastic, Sketchers, Teenage, Teva, Timberland and Vans. Fashionable brands like Stryde and Red Tape and MNC brands like Allen Cooper, Franco Leone, Gaitonde, Gucci, Guess, Lee Cooper, are further developing the market by creating new segments. Segment wise classification of women footwear segment: Segments Price Ranges in Rs % of growth Traditional footwear 699 999 5% Designer Footwear 599 799 10% Formals 299 699 40% Casual Wear 499 799 25% Sports Shoes 500- 699 20% About 37.8 percent of Footwear retail is the organized segment, which qualifies it as the second most organized retail category in India, next only to Watches. While the average spend on the footwear by urban consumers is Rs 240/annum, consumers in rural areas spend just about Rs 100/annum. The annual domestic consumption of footwear is approximately 1.1 billion pairs per annum, and top 20 cities contribute about 450 Million pairs/annum.

The womens category is largely unorganised, in fact close to 95% of the category is unorganised. With respect to the rest of the world, this is an anomaly as the womens category is majorly organised and forms a big chunk of the market. Thus for us as retailers in the womens footwear category, the market is still largely untapped and hence a big opportunity for growth. At present, almost all of the organised retailers in the womens footwear category are located in the metros and Tier I cities and towns. The Tier II and Tier III towns have over the last few years seen a spurt in income driven by the service industry boom. Hence these towns definitely are a potential target.

Competitor analysis

guess,gucci,lee cooper

kobbler,missy,liberty,crocs

bata, khadhims,

Upper segment repersents premium segment brands Middle segment popular and economic segment brands Lower segment mass segment My product is going to be positioned in the premium segment

Market
Target market People with an eye for fashion aging between 16-25 belogning to the upper middle class and upper class . Demographic segmentation Age : 16-25 Income segment : upper middle class and above Gender : women Physchological segmentation Lifestyle: fashion oriented mind set.

Finance Average sales per day : 30 pairs Annual income : 999*30*365(no of working days )=10,939,050 Fixed Capital : Rent =15,00,000 Fixtures =35,00,000

Working Capital : Avg stock=3000(1st 3 months ) Avg sales turn over =30*365/3000 =3.6 times Mark up=40% Total investment =3000*365*650(avg cost )=10,95,000 Note: the above worked out total investment is for the first three months and from the fourth month it would be 1000 and thereon keep increasing .