Anda di halaman 1dari 11

MATRIX footwear India

The case of Brand positioning

Some Case Facts 1989 :


UTILITY Marketing stress on functionality - V-F-M

Model Market Leader - 17% market share Target Segment growing Indian Middle Class Low Value High Volumes strategy Nothing Distinctive for Youth ( not the need of hour).

Change in Focus
LIFESTYLE Marketing driven by fashion and

style
Entered premium segment focused more on

fashion accessories rather than Footwear

What went wrong


Market was not ready for premium segment No market expertise to handle premium segment Could not divorce from its V-F-M image Dissonance in the minds of its main target segment-

Middle Class Operational problems manufacturing process could not handle small batch-size Inventory problems alliances with transnational didnt work, rather accounted to inventory problem. Premium segment amount only 10% of market. Retailing problems sales people for VFM model could not handle premium products

Situational Analysis
Decline in Market share

Premium segment accounting for 12% of market

but growing at rate of 30%. Also, Premium segment has higher margin and hence better profit proposition. Profile of population in India is different from that of developed countries as the population is younger. Failure in past haunting the future strategies.

Problem Statement
Should MATRIX venture into premium

segment or stick to the Economy segment market .

Alternatives available
Stay a Value For Money Player

Go with the flow : Make an entry into the premium

segment and loose VFM image over a period of time. Maintain the core competency as Economy player but at the same time make a Premium offering in parallel in order to grabs a share of the market.

Evaluation of Alternatives
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

Evaluation of Alternatives 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

Recomendations
Maintain position as an economy player but chain

off a separate premium offering under a different brand name

Plan of Action
Learn from past

Set up a new line of stores to promote the

premium offering or Expand the current one under a new section. Train salespeople and have specific strategy catering to premium segment Dedicated product and marketing personnel for premium segment .