The Factors That Maximize the Success of Footwear in the Market - Essay Example

ASSIGNMENT By Assignment Footwear is in great demand and most good entrepreneurs, who feel that they have an excellent unique sellingprice with respect to some new form of footwear or design that will create a need in the market, are able to establish a lucrative business for themselves.1 The glitch lies in this – it might not be very easy to establish a successful shoe line at once because there are lots of powerful competitors in the market place; thus, it becomes difficult for any starting entrepreneur to find a home for his products. In this case, as an entrepreneur my idea is to sell shoes that have different colored tops which can be changed at the will of the customer; thus, the points of success in this shoe are the following: 1. The colors can be changed at will and thus customers will only have to buy one pair of shoes and can accessorize with different tops 2. It becomes extremely portable to carry on trips whether it be for work or for leisure as a single pair of shoes is much easier to carry then ten different kinds of shoes 3. It does not tug too hard on the pocket of the customer because buying a single pair of shoes is much cheaper than investing in many pairs 4. It is both trendy as well as comfortable 5. Customers will not feel cheated in case the pair wears off because they can always purchase another pair while they still have the tops which they can go on changing as and when they wish to All these aspects will probably ensure that the shoe becomes a success in the market however the product needs to be marketed and sold in a proper manner so as to make sure that customers are able to understand the need for buying such a shoe and how it fares better when compared to other shoes. There are customers who will not want to compromise other shoes because of the brand value that the shoes may have or the style factor that obviously comes into play. The job of the entrepreneur thus becomes to create a need in the minds of the customers – especially those that are not able to afford different pairs of shoes due to the economy being at a constant low, or them hailing from not so rich backgrounds. “Product innovation works best for organizations that are willing to accept change. In order to innovate successfully, a platform for ideas and suggestions must be made available for employees and customers to express themselves.”2 Therefore, the need of the hour is now to evaluate the factors that will ensure success in the launch of this particular shoe in the marketplace in a profitable and responsible manner. They may be highlighted as the following: 1. Estimating start up costs related to the business 2. Understanding and determining the demographic structure 3. Strategically locating the store so as to reach out to the largest possible targeted consumer base 4. Understanding the potential customers3 5. Marketing and advertising the product so as to reach out to the largest consumer base possible 6. Registering the business and also taking into account retail licensing if required 7. Patenting the product and the brand name and logo 8. Carrying out a market analysis taking into account the competition faced and ways to counter the same4 9. Attracting, preparing and retaining the best people for the job Start up costs is one of the most crucial aspects of starting any business; in the shoe business, costs are required to set up a small unit where the soles of the shoes will be made, designs will be added to the shoes and most importantly, portable covers of the tops of the shoes in different fabrics, designs and colors will be made to be sold in the market. The job of the entrepreneur is to minimize these costs as much as possible in order to establish a successful business because initially, the product will have to be launched in the market at a lower cost in order to first test the water and see the response from the customer. Once the response is met and these start-up costs are covered to a decent breakeven point (point of no loss and no profit) the cost of the shoes can be increased in order to begin making profits. It is extremely important to ascertain the demographics in the market – this refers to not only the number of customers but also the potential customers. In this case, it is crucial to determine the age group that the shoes need to be sold to, then different kinds of shoes need to be developed for the various age groups so as to maximize the customer base, and also these groups need to be catered to well in the market. A proper survey or market research will also help to understand the potential customers and whether or not they are willing to purchase the product at a given price and if they actually have a need for the same. Marketing and advertising steps in to create a need in the mind of the people even if they seem to feel that they do not have one. It is very important to let the customer know why he will be spending his money on the shoe and what value he will receive on its purchase – in this case, there are various aspects like comfort, portability as well as a onetime payment on shoes that look different every time one wears them.5 The entrepreneur needs to determine where to locate this store for the reason that it should be accessible to most of the customers. If the shoes are to be sold through retail outlets, then proper licensing needs to be done if required. Retail outlets need to be contacted according to the customer base and if possible, establishing the store on the internet will make it easier for the entrepreneur to sell and will not require a great amount of overhead costs too. Since the shoe has a unique idea, it also becomes important to patent the product so that others in the market do not steal the idea of the different tops. This is a very special characteristic, and is what sets the shoe apart from other shoes. The logo and the brand of the product also need to be patented so as to not be stolen from other competitors in the market. Therefore, understanding the above points, there needs to be a proper promotion, pricing and placement of the products to maximize the success in the market place.6 “The analysis, factory report cards and statistics from the previous season give us a base of what would work in the next season. We keep our ear close to the street, travel the world, go to shows, follow the trends and look at our successes and failures from the previous year so we get a good barometer for excellent editing.”7 As understood by another entrepreneur, it is important to make decisions based on the competition in the market, take help from existing entrepreneurs who have knowledge regarding the same field and will assist in saving time and resources with their knowledge, and also making an analysis of the strengths and weaknesses of the business, one will be able to launch the business better because of a clear understanding of the market. In an article about the business of shoes in a small scale industry, the entrepreneur states, “Five employees craft the custom shoes. After the clicker cuts the leather, heel supports, size tags and design inlays are glued into place. A seamstress then sews the pieces together.”8 This indicates the level of proper delegation of work that is required for any business to function and operate in a smooth manner. The personnel hired needs to be absolutely skilled at what they need to do and the work needs to be divided so that each person is able to manage his or her aspect in a proper manner without wasting any resources. Thus, proper retention of the best people at the job needs to be ensured in order to have a successful business. In conclusion, these are the factors that are required to make sure that the shoe business to be launched in the market is lucrative and does not fail. References Cagan, J. (2012) What Drives New Product Development | Redefining the Bottom Line | FT Press. [online] Available at: http://www.ftpress.com/articles/article.aspx?p=1945330 [Accessed: 6 Nov 2012]. Drtoy.com (1993) Dr. Toy - The Name You Trust - Online Since 1995. [online] Available at: http://www.drtoy.com/2011/11/30/creating-products-for-success/ [Accessed: 6 Nov 2012]. Ehow.com (2008) How to Use Product Innovation As a Strategy to Maximize Sales Profits | eHow.com. [online] Available at: http://www.ehow.com/how_7875793_use-strategy-maximize-sales-profits.html [Accessed: 6 Nov 2012]. Ehow.com (1999) Product Strategy - How To Information | eHow.com. [online] Available at: http://www.ehow.com/product-strategy/ [Accessed: 6 Nov 2012]. Ehow.com (1999) Product Marketing - How To Information | eHow.com. [online] Available at: http://www.ehow.com/product-marketing/ [Accessed: 6 Nov 2012]. Gazettetimes.com (2012) Local footwear company finds runaway success. [online] Available at: http://www.gazettetimes.com/news/local/article_6f42b7a6-5feb-11df-849f-001cc4c03286.html [Accessed: 6 Nov 2012]. Smallbusiness.chron.com (2004) How to Create Your Own Shoe Lines Business Plan | Chron.com. [online] Available at: http://smallbusiness.chron.com/create-own-shoe-lines-business-plan-10960.html [Accessed: 6 Nov 2012]. Theglobeandmail.com (2011) The shoe business is like show business - The Globe and Mail. [online] Available at: http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/success-stories/the-shoe-business-is-like-show-business/article555139/ [Accessed: 6 Nov 2012]. Wisegeek.com (2003) What are the Four Ps of Marketing?. [online] Available at: http://www.wisegeek.com/what-are-the-four-ps-of-marketing.htm [Accessed: 6 Nov 2012]. Read More