Matrix Footwear uploaded
Matrix Footwear Case
Major Decision Issues:
Should Matrix foray into premium footwear for youth market/ fashion accessories market?
What are the factors you should take into account while taking product line stretching decisions?
How does product policy impact the value proposition of the matrix store?
How can matrix diversify into unrelated areas like fashion accessories without repeating the mistakes of the past?
Recommendation/Inferences on major issues:
Yes, they should enter into the Footwear Premium Market segment with focus on young adults market which is growing at the rate of 30%
Through the initial years of Premium footwear business, they should focus on building brand equity in the target market. Once they consolidate market position, they can diversify into fashion accessories business. The important point here is to diversify in only related to leather products such as Belts, Purse etc. since leather processing is one of the strengths of the company
The company should ensure they do not tinker with company’s core business of affordable footwear. They should treat the V_F_M (Value-for-Money) business and Premium Segment as two different businesses and do not try to club both into a single entity. This can be done easily since the company already has categorized its retail chain into three segments: premium stores, family stores and bazar stores.
Create a separate plan for production and distribution of the new Premium Segment. This must be a separate small scale high premium footwear section. The company will need to develop a specialized sales and marketing division to ensure focused strategy for the young adults markets.
Matrix should not repeat the mistake they did by selling footwear as a fashion accessories along with diversified offering. Company should focus on their strength and brand value in footwear business and offer footwear products in growing market segments. Instead other products should be slowly introduced as fashion accessories.
Major Decision Issues:
Should Matrix foray into premium footwear for youth market/ fashion accessories market?
What are the factors you should take into account while taking product line stretching decisions?
How does product policy impact the value proposition of the matrix store?
How can matrix diversify into unrelated areas like fashion accessories without repeating the mistakes of the past?
Recommendation/Inferences on major issues:
Yes, they should enter into the Footwear Premium Market segment with focus on young adults market which is growing at the rate of 30%
Through the initial years of Premium footwear business, they should focus on building brand equity in the target market. Once they consolidate market position, they can diversify into fashion accessories business. The important point here is to diversify in only related to leather products such as Belts, Purse etc. since leather processing is one of the strengths of the company
The company should ensure they do not tinker with company’s core business of affordable footwear. They should treat the V_F_M (Value-for-Money) business and Premium Segment as two different businesses and do not try to club both into a single entity. This can be done easily since the company already has categorized its retail chain into three segments: premium stores, family stores and bazar stores.
Create a separate plan for production and distribution of the new Premium Segment. This must be a separate small scale high premium footwear section. The company will need to develop a specialized sales and marketing division to ensure focused strategy for the young adults markets.
Matrix should not repeat the mistake they did by selling footwear as a fashion accessories along with diversified offering. Company should focus on their strength and brand value in footwear business and offer footwear products in growing market segments. Instead other products should be slowly introduced as fashion accessories.