matrix footwear case

7/27/2019 Matrix Footwear Case

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Section A Group 16

TONY SEBASTIAN (PGP14/056)

VARUN MURALI (PGP14/057)VIDHI SINGH (PGP14/058)

VINAY PRABHU (PGP14/059)

VISHAL SHITUT (PGP14/060)


2/10

Matrix Footwear Situational Analysis

Perceptible decline in market share

Premium segment registering annual growth rates of30% in which Matrix has limited presence

Burgeoning youth population which is aspirational innature and has the means to satisfy those aspirations

Backdrop of a failure when foray into premium marketwas attempted a decade earlier

Employees who were part of the whole failure stillaround in Matrix

Greater margins and hence profit proposition in thepremium market


3/10

Matrix Footwear Problem

StatementShould Matrix stick to the economy

segment or venture towards thepremium segment of the footwear

market?


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Matrix FootwearList of Alternatives

Stay a value-for-money player; remember lessons fromthe past and maintain existing strategy with regard toplacement in the premium segment

Recognize the wave; make an entry into the premiumsegment in a significant way and shed the value formoney offering over a period of time

Maintain your core competency as an economy player

but at the same time have a parallel premium offeringin order to grab a share of the market pie


5/10

Matrix Footwear Criteria of

Evaluation1. Firstly, arrest what seems to be a market share

decline and then grow your market share

2. Profits3. Long-term viability as a brand

4. Market leader position in footwear

5. Facilitate diversification into other products

6. Brand Consistency


6/10

Matrix Footwear- Evaluation of

Options Maintain Status Quo Maintains brand consistency but

could lead to drastic decline in market share with timebecause of changing customer preferences . Would

reinforce the image of Matrix being an economy brand, apositioning which could impact scalability with time

Become a premium player and shed v-f-m offering BrandUSP based around being an economy player and such an

approach could lead to erosion of market share in totalitythus forcing Matrix out. High scope for profits if it worksout but need to start from scratch even though they have

years of experience in the industry


7/10

Matrix Footwear- Evaluation of

Options (Contd.) Maintain position as an economy player but chain off a

separate premium offering Maintains existingmarket share but helps dip into the premium marketsegment with immense growth potential. Enablesleverage of presence in the industry and might lead toincrease in margins besides presence in the entirefootwear space


8/10


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Matrix Footwear Plan of Action

Set up a new line of stores to promote premiumoffering

Train salespeople and have specific strategy catered tothe premium segment so as not have another case of adiversification going wrong

Price competitively with other premium brands so that

it is consistent with the overall brand image of being avalue for product provider

Dedicated product and marketing personnel withexperience in the premium footwear segment


10/10

Matrix footwear- Contingency

Continue focus on the economy segment so as toenable clean exit from the premium market offering incase foray into the premium market turns out to beunsuccessful again

Expand economy offering in newly created stores so asto minimize capital loss

matrix footwear case

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