khusa inn riwaaj

8/3/2019 KHuSa Inn RiWaAj

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KHuSa Inn RiWaAj

Introduction to company:

Bata Shoes is a large, family owned shoe company based in Bermuda but currently

headquartered in Lausanne, Switzerland, operating 3 business units worldwide Bata Metro

Markets, Bata Emerging Markets and Bata Branded Business. It has a retail presence in over

50 countries and production facilities in 26 countries. In its history the company has sold more

than 14 billion pairs of shoes. In Pakistan Bata has a clear and distinct image in the minds of the

consumers as one of the quality makers in footwear. We are manufacturing a new product of

Bata in Pakistan as the product line extension by introducing a stylish and innovative khusa

having traditional touch. So many people think that a lot of local khusas are available in the

market looks like Riwaaj but the quality, style and the brand name Bata creates its uniqueness.

Our aim is to satisfy our customers need and our main focus is the quality and the

design of products with keeping in mind the customers needs and wants. It is our

endeavor to raise standards in design, quality, durability and innovation the only

aspect we ever lower, is the price. Our designers think differently, they understand the

varied moods, flavors and temperaments. Our product is designed with only one thing in

mindquality.

Quality is the cornerstone of our success

Vision statement:

To grow as a dynamic, innovative and market driven domestic

manufacturer and distributor, with footwear as our core

business, while maintaining a commitment to the country,

culture and environment in which we operate
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Mission statement:

To be successful as the most dynamic, flexible and market responsive organization,with footwear as its core business. Our goal is to satisfy the customer with consistentvalue addition and optimum services. Profit, but profit from works that benefitshumanity

Objectives of Riwaaj:

1. Different designs but decent product.

2. No other well known brand is available in the market thats why unique.

3. Traditional touch with sophistications & elegance.

4. If there is any loop hole in attaining the goals than timely action will be taken.5. Any threats and weakness would be given special care.

6. All target markets will be regularly monitored in terms of quality and customer

satisfaction.

7. On determining any feedback from the customers, correct action would be taken

immediately to avoid bad reverberation of our firm.

8. Customers satisfaction would be the prime motive.

9. Innovation is the core objective.

10. Highly motivated environment in the firm will be ensured.

Marketing Objectives

1. Develop Smart (Specific, Measurable, Attainable, Reliable, Time bound) goals.

2. To increase market share.

3. To increase product awareness by 50% by the end of year.4. To increase the sales by 35% by the next two years.

5. To develop a range of new products within the next 3years.

6. To target a new market or market segment.

7. To increase profitability and revenue.

8. To prevent losses or declining sales.


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9. To favorably position a product.

10. To create a competitive advantage.

Marketing management orientation

There are five alternative concepts under which organizations design and carry out their

marketing strategies.

Production concept.

Product concept.

Selling concept.

Marketing concept.

Societal marketing concept.

According to the marketing management orientation, we will use marketing concept

because our product will satisfy the need of footwear of the target market. We are

focusing the needs and wants of the target market and manufacturing our product. Our

focus is customer value and satisfaction , we identify customer need(footwear) and v

satisfy it with our offering (Riwaaj).

SwOt analysis:

It analyses internal and external environments and identifies these factors. An

organization can better make its strategic decision on the basis of this analysis.

Strengths are the core competencies of the distinctive features of the organization.

Weaknesses are the gray areas of the organizations whereas opportunities come by

matching the external environment with the strength of a company at last threats come

when organization is not able to benefit from external environment due to its

weaknesses.


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STRENGTHS:

Innovative product

Bata is a well known brand so we dont have to take people in confidence to buy

our product

Quality of our product

Good entrepreneurial skills

Have a skilled and committed team

We have a strong innovation culture and dedicated people to support it.

WEAKNESSES:

Our target market is limited

As we are new in market so we have low market share

Less awareness among people at present stage.

OPPORTUNITIES:

Addition of more innovative ideas

An opportunity is to be market leader.

The company has an option to expand its product portfolio by introducing more

products

Scope of growth in existing market

Focus more than one target markets


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Online Sales

THREATS:

Low prices may be offered by our competitors in future Rising prices of raw material

Law and order situation in the country at present.

Govt. strict policies

Situational Analysis:

The marketing environment is composed of two types of factors; one having macro

influences (including demographic, economic conditions, culture, and laws) and other

having micro influences on the organization (like suppliers, marketing intermediaries

and customers).

Finance Department: It will be helping the company in making

marketing budget of the company. All the financial decisions are

monitored and controlled by the financial department.

Research and Development Department: This department will let thecompany know about the styles and designs which the customers are

willing to have from us. The research and development department

focuses on designing comfortable and stylish khusas.

Operational Department: This department will be responsible for

checking the manufacturing of khusas and provide with desired quality

and quantity of product. All production processes are controlled by the

operational department.

Accounting: this department would be helping the company to

overcome any financial problem by keeping the tracks and records of

annual sales - the profits gained and losses.


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Customers:

The company needs to focus on various types of markets carefully but

our company while launching the new product has to focus on below

mentioned type.

1. Consumer Markets: company will be providing its customers

with the footwear (khusas) that will be used for their personal

consumption e.g. in home, offices, events, weddings and many

different working areas.

Competitors

There are some competitors of Riwaaj.

Direct Competitors:

There is no direct competitor of Riwaaj because no other well known brand

is manufacturing the khusas for the people in Pakistan. Bata is the first one

who is manufacturing khusas named Riwaaj. But a large no of local

competitors of our brand are manufacturing khusas in different designs for

both males and females.

1. Khusa Mahal

2. Leather Khusa House

3. Khusa footwear4. Royal khusa house

5. Khairi

6. Peshawari chappal

Indirect Competitors:

A large number of indirect competitors are there in the market of Riwaaj who are

satisfying the footwear needs of customers. Well known brands are there who are

competing with Riwaaj. All branded and non branded formal and casual wear.

Following are the indirect competitors of Riwaaj.

1. Dress shoes

2. Sandals


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Microenvironment:

PEST Analysis

The radical and ongoing changes occurring in society create an uncertain

environment and have an impact on the function of the wholeorganization.

PEST is useful when a company decides toenter its business operations into

new markets and new countries.

Political Analysis

Pakistan is a democratic state. When we look at the political system in Pakistan we can

see that since last 10 to 20 years there is political instability but now it seems that after

the elections of Feb 2008 there are some changes in country and the work would be

affected. Similarly after the elections in the country more steps are taken towards

consumer protection, environmental regulations are been maintained. Mostly due to

terrorism in the country the image of a particular company seems to be going towards

its declining phase. When we talk about the footwear manufacturing industry there are

some regulations imposed by the government as this industry is crucial and important

for the reasonable society. There are some duties and taxes on this industry. Right nowthe government is more towards leading and the government policies are very flexible in

terms of its business sector with less tariffs and quotas on a specific product due to less

tariffs and quotas the government makes the trade between the countries more flexible

and easy. For example, we usually import many different types of materials like leather

that we use in our Khusas from different countries. If we anticipate future, the risk of

military interference will be very low. To boost the business sector in Pakistan,

government of Pakistan has modified its taxation policy all the businesses are taxed

according to Income tax ordinance 2001 and sales tax is charged according to sales tax

act. In recent years the wage rate of laborers has been increased to a fixed amount.

Political stability or instability is the major force, which is shaping the business today.

Economic Analysis:
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The economic analysis completely depends on the economic growth of the country, by

looking at the latest trends the economy is influenced to adopt that particular trend

which customers are willing more. So these all factors also affect the whole industry.

The changes in the economy have little effect on the footwear manufacturing companies

specially khusas segment. As khusas have become necessary part of our society so

people will not stop using this traditional footwear. Government spending level also

increases and there are more chances of unemployment to be finished from the

country. Import and export is made at all production levels. Sometimes due to increase

in inflation the companies face a huge loss since it is a generalized persistent increase

in the level of money and at that time no one can do anything. Financial market of

Pakistan is making headway and developing also long term loans are readily provided

to business sector for investment in Pakistan in order to encourage the investment in

Pakistan. Government of Pakistan is also supporting in the development of these

financial market because that effect the development of business sector in Pakistan.

The quality of infrastructure is not very high in Pakistan but we have seen that now

government of Pakistan has focused its attention towards the development of

infrastructure in Pakistan (Roads, Dams technology etc). This is really a great

development step took by the Govt. of Pakistan in such a crucial economic conditions.

In future we can expect that more favorable economic environment will be present inPakistan.

Social Analysis:

Demographics (age, gender, family size, etc.) according to population census it is

estimated that there are 16 million people in the country with majority are youngsters

and small babies. Since peoples lifestyles changes so there is more awareness of

people to get developed in every skill. Social factors are considered as one of the

biggest driving force for change in the industry. Riwaaj a quality in khusa wear hasbecome very common in students, working class people, business men, traditional

people, youngsters, middle and elite class. And this segment of market often has to go

through many traditional events like eid and other functions like weddings so if they are

given quality footwear in the form of the product which is used by them commonly will

have an impact on the sales of our product Riwaaj. The way of living is totally


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dependent on the income. The education level of Pakistan is not appreciative according

to economic survey of Pakistan 2011 the education level of Pakistan is 52 %. Most of

this proportion composed of Male members. The standard of people over here is also

not satisfactory till now we are not able to wipe away the poverty and inflation.

Technological Analysis:

Inventions, new discoveries, In Pakistan there is likely to be new inventions that have

taken place and made all the work easy for every human being. Everyday there some

new inventions been made those are making the communication skills better between

the customers while living in the same country. When it comes to someones personality

then it should be stylish it should be not carry the impurities than the required quantity

etc Quality should be maintained. However it still needs improvement and advancement

regarding this sector. The use of latest innovations has made all the work easy for the

humans. The use of IT is been made compulsory in all the schools and colleges starting

from class 2. The use of latest machines has proved to be beneficial for everyone.

Boston Consulting group develops in early 70s. BCG matrix method is a well know

portfolio management tools. It is based on the product life cycle theory. BCG matrix has


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been used to categorize the various products according to their current market share in

comparison with its competitors and their anticipated growth.

Stars:

Businesses having fast growing market and market share and hold a dominant share of

that specific market. Star includes a product, which are the main source of popularity

and differentiation. Examples of stars are Nestle milk pack, fort, bruffan.

Question marks:

These businesses or products are in an attractive industry but holds a small market

share percentage. Some of the product despite of having high growth forecast and have

low market share.

Cash cows:

Products or businesses in this category has high market share but low growth rate.

Examples are ponston.

Dogs:

Businesses or products in this category dont produce or consumer much cash. They

have low market share in a low growth industry. These products in our opinion all just

produce by a firm to stand in a service of all the customers and not to lose the

customers of their product. Examples are aspirin, Nestle Dehi/Raita.

According to BCG matrix, we would be able to define our product that where it stands

and in near future where we could see our product. As far as our footwear Riwaaj is

concerned we are in QUESTION MARK. As we are new in fast growing market and we

have low market share. But we would be using different promotional and other

strategies through which we would be able to see our product in stars.

PRODUCT MARKET EXPANSION GRID

As our market is new and we are offering a new product so according to this tool our

product lies in diversification category.


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TARGET MARKET STRATEGIES

Target marketing involves three things:

Market Segmentation

Market targeting

Market Positioning

Market Segmentation

A market segment is a sub-set of a market made up of people or organizations with one

or more characteristics that cause them to demand similar product or services based on

qualities of those products such as price or function. A true market segment meets all of

the following criteria: it is distinct from other segments (different segments have different

needs), it is homogeneous within the segment (exhibits common needs); it responds

similarly to a market stimulus, and it can be reached by a market intervention. The term

is also used when consumers with identical product and/or service needs are divided up

into groups so they can be charged different amounts. The people in a given segment

are supposed to be similar in terms of criteria by which they are segmented and

different from other segments in terms of these criteria. These can broadly be viewed as
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'positive' and 'negative' applications of the same idea, splitting up the market into

smaller groups. Our product Riwaaj is segmented in the following segments:

1. Geographic segment

2. Demographic segment

3. Psychographic segment4. Behavioral segment

Geographic segmentation:

Geographical segmentation is very beneficial to any business. It helps the marketing

team to identify and segregate the market into units on the basis of:

- language

- climatic conditions

- lifestyles

This in turn helps the team to deal with the requirements of that segment and improve

upon the product or service on the basis of the commonality identified. For example, a

region or unit identified on the basis of common climatic conditions could be served

better and well in time, to cope with the climate related requirement of the product or

service. In addition, the product or service could be improvised to increase sales.

Geographic segmentation also helps the company to focus on creating a team for every

specific unit. This would ensure a focused approach and while sales are being
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enhanced, the future market demands could be anticipated in advance, which would in

turn eliminate competition. Our product Riwaaj is geographically introduced in Lahore

Punjab Pakistan located in the South Asia. As Lahore is a city so population density is

high and climate is not specific.

Demographic segmentation:

Demographic segmentation includes segmentation based on age, gender, income and

life style. Riwaaj is segmented demographically. Based on age it is not specified that a

specific group can use our product Riwaaj. Youngsters, teenagers, Middle aged, old all

are considered as preference by our product Riwaaj but our main focus is adults and

elite class. Both males and females are our main priorities there is no preference of

males on females or females on males. Family size and family life cycle is not specified.

Income is the basic concern for us as we are targeting the elite class so person having

income more than 50,000. Occupation is not specific we are targeting everyone either

they are doctors, engineers, mangers, educated or not. Education is not necessary for

our product but elite class is mostly well educated class so educated people will be

mostly involved. Majority of people in Pakistan are Muslims but we have not only

specified our product for the Muslims all other religions are focused by us.
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As our main focus is adults and elite class so adults are our focused generation and all

the people of the world are being considered but the people having nationality of

Pakistan are being given importance.

Psychographic segmentation:

Riwaaj is focusing the Upper or elite class in Lahore Pakistan and other cities of

Pakistan. We are proving the life style of achievers, strivers, innovators, high standard,

quality seeking and style conscious and providing ambitious and daring personality.

Behavioral segmentation:

Occasions may be specified by Riwaaj because khusas are worn mostly on some

specific event but can also be wore on some specific day or regularly. Benefits provided

are quality, service, convenience, long lasting etc. As customers are going to use it first

time so we have medium customer loyalty.


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Geographic segmentation:

World region Asia

Country region Pakistan

City Lahore

Density Urban

Climate All

Demographic segmentation:

Age 16-18,18-25,25-35,35-45,45-60

Gender Males and Females both Primary focus: adults and elite

class

person

Family size Not Specified

Family life cycle Not Specified

Income Not specified

Occupation Not Specific

Education Not Specific

Religion Not Specific

Generation adult


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Target Market

After completing the Marketing Research next step would be the TARGET MARKET.

Riwaaj will specifically target two types of consumers via ads strategies designed to

cater to the needs and desire of those two groups. One is elite or upper class which will

be targeted because of the reason of style and traditional touch in footwear with

sophistications. So Riwaaj will bring the level of their needs to satisfactions. Secondlyour target market will be the adults as they want innovation and style with decent

designs which are provided to them by our product Riwaaj.

Target Market Segmentation

Nationality Not Specific preferences to Pakistanis

Psychographic segmentation:

Social class Available for uppers (elite)

Life style high standard, quality seeking, style conscious

Personality Sophistication

Behavioral segmentation:

Occasion depends on the customers mood.

Benefits Quality, comfort , long lasting

User status first time user

Loyalty status Medium


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Basically there are four types of market segmentation.

1. Mass marketing

2. Segment marketing

3. Niche marketing4. Micro marketing

The type of market segmentation which we would be using is Niche Marketing

since we are providing customers with a new form of footwear which is according

to their desire. Advertisements on this scale would be large and eye catching that

will force the adults, and elite class to come and get what they want and live

there life contentedly.

Market positioning

Our product will be positioned against our competitors. Once the product is launched

successfully, it will be kept at the position where its demand is more than the demand

for product of competitors. The prices of the product even though they are not less but

due to its brand name attraction, its designs, traditional touch with sophistications, high

quality, customer satisfaction, decent, uniqueness and friendly environment.

TYPES OF BUYING DECISION BEHAVIOR

There are four types of buying decision behavior.

1. Complex buying behavior

2. Variety seeking buying behavior

3. Dissonance buying behavior

4. Habitual buying behavior


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According to this buying behavior our consumer will have variety seeking buying

behavior because it is low involvement but relatively not frequently purchased product

for our target market and other people who are interested to buy our product. There is

no risk factor involved in buying this footwear as it is a quality product with excellent

features.

MARKETING MIX

Marketing mix is 4ps which are product, price, place and promotion.

In marketing mix, the first P is Product. Product is the main asset of any organization

that is going to put up for sale in the market. Every company has to sell its product to


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the customer for fulfilling their needs and demand. Every product has some competitive

advantages but there are also some draw backs of the products. A company must

understand its consumers, markets and competitors and develop the product that

delivers superior value to the customers. It must carry out strong new product planning

and setup a systematic new product development process for finding and growing new

products because the customer demand and wants change with the passage of time.

So we are introducing a new product in the market according to the requirement of

customers change in taste and also technologies improvements.

We are going to launch for the first time branded khusas for the people (Riwaaj) in

Pakistan.

Levels of Product:

There are three levels of product

1. core product

2. actual product

3. Augmented product.

Core product:

Core products include the benefits of a product.


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Benefits:

Moreover, in our case as far as our product is concerned the core benefit is that it will

make people traditional with sophistications and elegance.

Actual product:

The second level product planners must turn the core benefits into an actual product.

Decent, unique, innovative, variety, quality, packaging, designs, styles and quality forms

the actual product.


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Brand: our brand name is Khusa inn Riwaaj. Its very easy to be pronounced. Brand

name is familiar too.

Quality: Riwaaj has been made after deeply analyzing the needs of our customers. So

we cannot compromise on the quality of our product,we are providing our customers

with best quality.

Feature: our product makes you feel comfort. As it is a traditional and stylish khusas so

consumers will feel satisfaction after having it.

Design and Style: We have designed our product according to recent market trends

and the color scheme of the product is very attractive.

Packaging: In this era the packaging is the most importance so we are emplacing lot of

this because first the packaging attracts the consumer.We have packaged our product

in a very attractive and colorful box having our brand name.

Labeling: All the desired information must be label on the packaging.

Brand name is visibly mentioned on the top.

Address of the factory has labeled.

Augmented Product

Finally product planners must build an augmented product around the core benefits and

actual product by offering additional consumer services and benefits.

Durable Goods

Our product is durable since it would be used for a long time at least for some

years. Our footwear provides its customers with a lot of benefits in every

aspect of life.

Service Delivery:

High

Involvement

Decisions


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After the product would have been made our first aim would be to quickly give our

product to the distributors in order to make them available on those places where we

have made sale stations. Our important sale stations are present in different areas of

Lahore and other cities of Pakistan.

Warranty

We will always make our customers satisfied to buy.

Customer Support Services

Customers would be provided with free customer support services. Customers can

easily call us at our offices. Our company staff will be there 12hrs a day to help the

customers if they find any problem.

Delivery

If our product Riwaaj is demanded and not present at the current station then we are

providing our customers with a choice to order in advance we will deliver that order

within 24 hours.

Classification of Products

Products and services fall into two categories based on the type of consumers who use

them.

1. Consumer Products.

2. Industrial Products.

Our product lies in the category of Consumer Products since it is used for personal

use i.e. the comfort level which you would be able to find in our footwear product

(Riwaaj).

There are various types of Consumer Products which help the consumers to make

their decisions in buying that particular product. Marketers also make it easy for the

consumers to divide their products through which the consumers would make their

decisions more quickly and easily.


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1. Convenience Products

2. Shopping Products

3. Specialty Products

4. Unsought Products

Our product relies under the heading of Shopping Products.

Although there are less frequently purchases but customers before buying carefully

compare on suitability, quality, style and price. Since our main focus is to provide unique

footwear and within their price range.

Product Life Cycle:

Sales and Profits over the Products Life from Introduction to Decline

The figure above illustrates the Product Life Cycle of Riwaaj having five stages:

Product Development

Introduction

Growth


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Maturity

Decline

We are about to launch a new product which is Riwaaj a real new style in footwear.

Riwaaj is currently at the Introduction stage which would be very soon after

launching would be used by those who are above 16 and especially in every

working area. Riwaaj is using many different strategies in order to gain its market

share and get its place against its competitors in the market. The main aim of the

company is to provide its customers with quality and comfort.

Our company would be highly focused towards the new product. Companies major

focus would be the spending a lot of money on how to improve the product and

through its promotional strategies in all the aspects. By promoting the product in

such ways the company would be able to gain profits in few a little period of time.

PRICE

Price is the value that customers give up or exchange to obtain a desired product. Price

is the only element in the marketing mix that produces revenue; all other represents

costs.

Pricing Approach:

Riwaaj adopts a value-based pricingapproach in which prices are set based on the buyers

perceptions of value. The company tries it utmost to find out what value buyers assign to

different competitive offers which is undoubtedly a challenging task for the company. At some

times, the company itself asks the people that how much it would pay for a basic product and for

each benefit added to the offer.

Customer Value Price Cost Product


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At other times, the company might conduct experiments to test the perceived value of different

product offers.

INTERNAL AND EXTERNAL CONSIDERATIONS AFFECTING

PRICE DECISIONS

Pricing of a product depends on different internal and external factors.

Internal factors External factors

Marketing objectives Nature of the market and demand

Marketing mix strategy costs Competition

Organization for pricing Other environmental factors

INTERNAL FACTORS

MARKETING OBJECTIVES:

Our marketing objective is produce quality leadership so we charge high prices to cover

higher performance quality.

MARKETING MIX STRATEGY COSTS:

Product design

Distribution

Promotion

As our product is new in market we have to do much promotional campaign to

introduce and aware our product among people and also uses different distribution

channels to available an all big shops and pharmacies. And our company also paid a

lot of attention towards designing of our product.


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EXTERNAL FACTORS:

Market demand, competitors price and other external factors impacts a lot in pricing

decision. As the demand of our product is inelastic that hardly changes with a small

change in price.

ORGANIZTION FOR PRICING:

It includes fixed and variable cost.

In our situation the company tends to use Fixed Cost. Since the prices of the productswould be set once the product is been made, we are trying to decrease our variable

cost and also hoping for the increase of demand of our product so that we may have a

reduced per unit cost.

PER UNIT COST = Total cost divided by total units of production

Fixed Cost

Costs that dont vary

with sales or

production levels

Variable costs

Costs that vary

directly with the level

of production.

TOTAL COST

Sum of the fixed and variable costs for a given level of production.


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External Factors affecting pricing decisions:

There are many factors that do affect the pricing decisions of product. In our company

manufacturing of the product would vary accordingly by looking at the situation of the

market demand.

Similarly by looking at the second level of the chart we can see that if there is a demand

for footwear in khusas there are more chances that our company competitors would

reduce their prices in footwear, specific offers could also be made by the competitors

easily. Other than these two types of factors the last factor also plays a pivotal role.

There are any chances that government may increases tax for the leather that is

imported. New policies and regulations can be built by the Govt. which may not be

favorable for us.

Market and Demand

Competitors Costs, Prices and

Offers

Other External Factors: Economic

conditions, reseller needs,

Government actions, sales concern


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PLACE

A set of interdependent organizations (intermediaries) involved in the process of making

a product or service available for use of consumption by the consumer. Marketing

channel decisions are among the most important decisions that management faces and

will directly affect every other marketing decision.

A company channel decision affects every other marketing decision so it is a very

important task. Few producers sell their goods directly to the final buyers and most use

intermediaries to bring their products to market with the help of marketing channels

(distribution channels).

DISTRIBUTION CHANNEL:

Each layer of marketing intermediaries that perform some work in bringing the product

and its ownership closer to the final buyer.

Our product will be placed in various branches of Bata in every part of the city Lahore.

As we know that Bata has a convenient market position available in the every town,

street and society of Lahore se we are focusing to make our product present on every

Bata franchise or store. So it will be convenient for the users.

CONVENTIONAL MARKETING CHANNEL:

Conventional marketing channel is the procedure by which a product approach


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customers. We have a conventional marketing channel as it includes many retailers

which make our company product available to consumers.

NEW PRODUCT PRICING STRATEGY:

Companies bringing out new products face the challenges of setting prices for the first

time. There are two broader strategies:

1. Market skimming pricing

2. Market penetration pricing

Price skimming:

Our company follows price skimming strategy for our new product named Riwaaj. As

in this strategy product offer at high price and the quality and image of the product

support its high price.

Price adjustment strategies:

These are the strategies used to adjust the basic prices to account for various

customers differences and changing situations. There are seven price adjustment

strategies:

1. Discount and allowance pricing

2. Segmented pricing

3. Psychological pricing

4. Promotional pricing

5. Geographical pricing

6. Dynamic pricing

7. International pricing


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Various forms of discounts are given to both old and new customers above shown in the

table are some discount techniques which our company would use to make khusas of

Riwaaj common in people.

khusa inn riwaaj

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