- 19th Jan 2023
- 06:03 am
The business overview, mission and vision
IKP is a shoe brand which would target the middle-tier market where the consumers are mainly the average working-class crowd who want to uplift their style game with a pocket-friendly product. The variety will range from home wear, formal, occasional, sport and limited editions. It will be available in the USA and will branch itself once there is enough support. The product will be available in retail stores based which may be directly or through franchises to escalate the presence of the brand.
Mission: To be established as the most affordable and consistent brand while keeping in mind the consumer’s desire.
Vision: To grow progressively in and around the roots of the company while maintaining the benchmark and keeping footwear as the core business.
Market Analysis:
The characteristics of your customer base.
We need to grasp WHO our target market consists of and what they think about our business and our product. Our target market could also be one or a lot of market segments or sub-sets of your market, created from individuals or organizations sharing one or a lot of characteristics that cause them to demand similar merchandise supported qualities of these merchandise like value or performance. Here square measure some important characteristics that assist you to perceive your favourite customers:
1. Demographics
Demographics are usually used as segmentation bases as a result of teams of individuals, or organizations, with similar demographics, usually having similar wants & needs that are distinct from those with completely different backgrounds. They include age, race, religion, gender, family size, occupation, financial gain level, education level, legal status et al.. Different age groups will have different approaches towards what they want in their footwear.
2. Geographic
These describe basic diagnosable characteristics of city, cities, states, regions, and countries. One, or a mixture of things, such as size, location, density, climate, transportation network, media, competition, growth pattern, legislation, price of living, And operations might comprise a diagnosable locale. If individuals of a certain region are into football, they’ll be lot of inclined towards shopping for studs.
3. Psychographics
These are any attributes about temperament, values, attitudes, interests, or lifestyles they're characteristics like people, family life cycle, usage rate & expertise complete loyalty, temperament & motives, perceived risk, originality, opinion and modus vivendi that confirm however a client thinks of themselves relative to others.
4. Behavioristics
These are variables like occasion, profit wanted, user status, user rate, loyalty rate, readiness stage, and customer angle. They include loyalty, cost, frequency of purchase, the quantity of purchase, time of year, time concerned in getting calls, and wherever the client purchases the merchandise.
List your current competitors.
1. Adidas
2. Nike
3. Under Armour
4. Skechers
5. New Balance
6. ASICS
7. Saucony
8. Avia
9. Brooks Sports
10. Amer Sports
11. Columbia sportswear
Estimate:
According to facts, the average American spends around $392 annually on their footwear. The average cost of women’s shoes is 85$ and men’s shoes are $65.So we can average it to $75.
Considering the sales of 100,000 units in one go we can expect the following:
It can be difficult to estimate the market value as you must make assumptions related to market size and average unit price. To estimate, use the figure below and the expected value concept described in Chapter 6 of the book.
Estimating the total addressable market or TAM. This is the portion of the whole market that you reasonably expect to obtain. The majority of companies have a market share that is well below 20%. For example, if we expect to get a 5% share of the 39,200,000 could be 1,960,000 dollars in annual sales.
Recommendation
Based on the information collected it can definitely be a challenging product mainly due to its competition. The existing market is a well-established business so it's really important to stand out as a brand. People usually look for product uniqueness and cost efficiency when it comes to footwear and fashion, hence the brand aesthetic is a crucial point in our business model. The increasing boom in digital marketing especially during the pandemic is another aspect the company should look at before the launch as it is much lower than retail stores and since people have switched to digital platforms more, the product market has shifted towards digital consumers in every part of the world. Hence it could lower the overall selling cost as well for the
consumers.
