27-11-2016 Marketing Plan

Portuguese Shoes in Europe

Teacher: Rui Carvalho

Licenciatura em Sistemas de Informação para a Gestão

Diana Ferreira – 8160119

Joana Fernandes – 8160148

Soraia Ribeiro – 8160052

Rui Nunes - 8160587

Paulina Maria Brzustewicz

Sandra Joniec
Indice
Introduction .................................................................................................................................. 2
1. Analysis of the Internal Situation .................................................................................. 3
2. Analysis of the External Situation ................................................................................ 5
2.1. Competitor Characteristics ........................................................................................ 5
2.2. Environmental Conditions ......................................................................................... 5
2.2.1. Economic conditions .............................................................................................. 5
2.2.2. Economic Condition in Europe ............................................................................. 6
3. Analyze SWOT ............................................................................................................... 7
4. Objectives of Portuguese Shoes .................................................................................. 8
4.1. Objectives of the Marketing Plan ................................................................................. 9
5. Segmentation ................................................................................................................ 10
5.1. Differentiation ............................................................................................................ 11
5.2. Positioning ................................................................................................................. 12
6. Marketing Strategies (Marketing mix) ........................................................................ 13
6.1. Product ....................................................................................................................... 13
6.2. Price ............................................................................................................................ 14
6.3. Place ........................................................................................................................... 14
6.4. Promotion................................................................................................................... 15
Conclusion ............................................................................................................................. 16
References ............................................................................................................................ 17

1
Introduction

The accomplishment of this work was proposed to us for the purpose of

evaluation of the Curricular Unit of Marketing Business with the intention of realizing a
Plan of Marketing having based on the Portuguese Shoes umbrella brand. For the
accomplishment of the work, we use the internet as a means of researcher, along with
all the information provided by the teacher.

Initially, we will identify and recognize your entity and its history, analyzing the
market and the competition, reconciled in the SWOT analyses, clarifying next the
segmentation and differentiation verified by the company and the development of the
marketing strategy for Europe. Finally, in the conclusion we mention the advantages and
disadvantages that we have found throughout the work.

2
1. Analysis of the Internal Situation

Portuguese shoes is a young, sexy, modern and future-oriented industry, which

combines tradition with cutting edge technologies, with the best know-how ever. In this
sense, Portuguese shoes have as main objective to integrate the entire value chain of
the national footwear industry into a single, user-friendly web platform so that anyone
anywhere in the world can have free access to the best that is done in Portugal.

Therefore, this platform has information about the Portuguese market in the sectors of:

❖ Footwear industry;
❖ Industrial components of footwear;
❖ Leather Goods Industry;
❖ Suppliers of industrial equipment;
❖ Business companies;

Portuguese Shoes has a mission:

"Adding value and expand horizons "

Proving how proud they feel of the "Made in Portugal" industry. Always having in vision:

❖ Provide buyers and sellers a unique and convenient connection link;

❖ Facilitate lower-cost business opportunities;
❖ Improve efficiency and knowledge sharing across companies.

So in Portuguese shoes we can find a wide range of companies / brands and their
products as for example:

❖ Miguel Vieira;
❖ NoBrand;
❖ Luis Onofre;
❖ Camport;
❖ Lusquiños;
❖ Philipe Souza;

3
And if you look for a company that does not have a website of its own, you will probably
find it there, and you can find relevant information on new collections, fairs, and new
trends.

Portuguese Shoes companies different from others because they offer high quality
products with low price, for example, they are cheaper than Italian shoes, but the quality
is on the same level.

We can also say that The Portuguese footwear industry is responsible for 1,354
companies, employing 32,738 people and annually produces about 62 million pairs of
shoes, of which 95% are exported to 132 countries. In 2012, this industry alone exported
€ 1.5 billion.

4
2. Analysis of the External Situation

Those who make the buying decision are other companies, since this is a B2B
business. At your option the user should be based on the convenience that the product
will give to him, choosing it for features such as comfort, quality and design. Portuguese
Shoes users are influenced mainly by advertising, since they have been recognized as
“The sexiest industry in Europe", but they can also be influenced by fashion
magazines, advertisements of television and opinions of previous clients.

2.1. Competitor Characteristics

The main competitors of the Portuguese shoes are Italy, Spain and China.

The Spanish footwear is characterized for having strong brands and producers,
however, the fact thar the market is divided in different regions in terms of income,
preferences and prices makes it difficult to find a distributor.

The Italian footwear, on the other hand, is characterized for being a traditional and
having a challenging market in the production of shoes. the Italian exports are by far the
highest amongst the international shoe industry.

China is also becoming one of the main competitors, since their products are cheaper
than the others, which is very attractive from the buyer point of view.

2.2. Environmental Conditions

2.2.1. Economic conditions

The economic growth that has been observed in this industry has generated a great
interest in this area and in the conditions, that sustain it.

The footwear industry has a great influence on the economy, producing around
1,800,000 thousand euros per year and exporting approximately 1,700,000 thousand
euros per year, which corresponds to a 95% export quota. Portuguese Shoes reaches
132 countries on five continents, with the main market being European. The main
destinations are France, Germany, the Netherlands, Spain and the United Kingdom.

5
 2.2.2. Economic Condition in Europe

The economic situation in Europe in 2016 Becomes slowly getting better. Interest
rate is 0.0%, This Means That loans are relatively cheap.

Therefore, it Promotes the development of companies and the purchase of large

batches of products. Inflation in Europe is a level of 0.2%. This is a very low level and
this is favorable for development of the business. Unemployment is 10.1% and is slowly
declining. This is a good sign for our business because people will afford to buy new
shoes of good quality. Disposable income in Europe is growing for several years. This
means that people are spending more money and it is a good time to develop
businesses.

Technologies in shoes industry are constantly growing. Invented is more and more
technologies and materials that will improve the quality and comfort of walking shoes.
However, the main trend in the technology market has become the personalization of
footwear. For example, on the website of Adidas can choose the colour / image which is
printed on the shoe, embroidery and accessories such as laces.

Residents of the European Union do not pay duty, or any other additional taxes
related to imports of footwear from the EU. This situation should be changed so this is a
big incentive for customers from other countries to purchase products from Portugal.

6
3. Analysis SWOT

The SWOT analysis is a tool used to make analysis of the environment, being used
as the basis for management and strategic planning of a corporation or company.
Being as objective the analysis SWOT is to analyze strengths, weakness, opportunities
and threats of organization.

Strengths Weaknesses

❖ Good quality; ❖ Not well known brand (older and

❖ Production of shoes for well-
known designers all over the
world;
❖ Modern design;
more established competition with
greater media exposure);
❖ Limited development options;
❖ High production costs;
❖ High price;

Opportunities
❖ More advertisement through
social media;
❖ Large potential market;
❖ Good quality,
❖ Open market in Europe;
❖ Product for each age group and
gender;
Threats
❖ Increasing the taxes,
❖ Strong competition in market form
other producers in other countries
of Europe.
❖ Oversaturation of shoe market;
❖ Customer loyalty for other brands;
❖ A lot of competitors;

7
4. Objetives of Portuguese Shoes

The main objective of Portuguese shoes is:

“Disclosure the brands Portuguese”

And the strategic plan of the companies will pass by three main pillars of action:

❖ Innovation (through design and qualified young people);

❖ Qualification;
❖ Image.

However, companies will not compete through low wages and the course will be based
in:

❖ Sophistication;
❖ Creativity.

To reach this goal, companies will:

❖ Create shops in European capitals;

❖ Invest in attracting qualified young people;
❖ In training for top management and choose design as a differentiating factor;

To this end, after the cycles of technological modernization and the creation of own
brands, companies are now focused on enhancing their vocation to:

❖ The design;
❖ Production destined to the luxury segments;
❖ Skilled workforce;
❖ The relationship of trust with clients.

8
 4.1. Objectives of the Marketing Plan

The main objective of this short term marketing plan is:

❖ Increase sales of the brands in 10%;

❖ Internationalize the Portuguese brands;
❖ Assist in the recognition of Portuguese brands;

9
5. Segmentation

The objectives of segmentation are:

❖ The careful choice of customers;

❖ The development of the products before the market where the brand is
inserted;
❖ The optimization of costs and revenues.

In this way, market segmentation at the international level is fundamental for the
organization to get to know its publics, in order to adapt better and act on them more
effectively.

Taking into account the purpose of Portuguese shoes, they should bet on segmenting
their market, taking into account the aspects:

❖ Partner Demographics;
❖ Cultural Partner;
❖ Geographic.

Portuguese Shoes so should its market target for men and women over the age of
30 to 45 years of upper-middle class since they usually bet on quality, comfort and a
more sophisticated design having interests in fashion and technology level.

So the Portuguese shoes bet on the performance of the fashion countries like Italy,
France, Germany and with higher yields as the Luxembourg and Monaco so that
customers can pay a higher price for the shoes.

The usual customers live in houses in the suburbs of large cities, are self-employed
or work in high positions in companies. They are interested in fashion and new trends in
the market and caring too much about the appearance. Being people who enjoy
spending time in Shopping and visit places of prestige such as: Opera, theater, fashion
show or banquets. The decision to purchase is based on the magazines and internet
trends and consumption habits these buy multiple shoes, several times a year.

10
 5.1. Differentiation

Differentiation is the act of giving a product or services that distinguish competing

products. In this way, the attributes in which the Portuguese shoes differentiate
themselves are:

❖ The quality;
❖ The Comfort;
❖ The Sophisticated Desing.

Besides that, this is considered the "The sexiest industry in Europe".

Thus, and for that the Portuguese Shoes different from other brands, decided to bet not
only on the product as well as in the promotion.

The product level these decide that next to the shoe would send some
accessories and that these should be made of materials like the cork and skin, not only
to give more comfort as well as to ensure more quality to the shoe, the Portuguese shoes
wants to convey.

At the level of promotion of products have chosen to develop an advertising

campaign where Portuguese figures recognized internationally as the Cristiana Ronaldo
and Sara Sampaio. They would walk the shoes and affirm how comfortable and quality
they were, and also stated how sexy they felt when wearing them.

The Portuguese shoes opted for this strategy of differentiation because, the target
audience is easily influenced by what they see in magazines, on Tv and on the internet.

11
 5.2. Positioning

We will initially define what positioning is, so according to Kotler, it is the act of
developing the offer and the identity of the company to occupy a place in the minds of
the target customers and it is the effort to implement the key benefits and the
differentiation in the Customers.

In accordance with our targeting and our differentiation we can say that the Portuguese
shoes are recognized in the market as being:

"The Sexiest Industry in Europe"

aiming to convey the message of quality, different design and comfort of Portuguese
shoes.

12
6. Marketing Strategies (Marketing mix)

6.1. Product

To differentiate the product the Portuguese shoes will communicate the brands with
the shoes they should send sexy and different accessories that customers may add to
the shoes

Brand

The Portuguese Shoes is a Portuguese industry, in which the name is written in

one of the most widely spoken languages in the world, the English language, which
allows the brand to expand offering greater internationalization regardless of the culture
and language of the country.

The messages that the brand tries to transmit are always the same: "Design by the
future" and "the sexiest industry in Europe" through the junction of two slogans this brand
tries to obtain a greater international recognition.

Thus the main characteristics of the brand are:

❖ High qualities;
❖ Originality through innovative design;
❖ The comfort.

Target audience

The footwear is intended mostly for people with interests of fashion, media-high
class, with 30 to 45 years. This audience tended to have interests in terms of new
technologies among others.

13
 6.2. Price

Since the mark bet on the quality of its products, the price depends on the cost of
production and the price established by the competition.

Since our products are aimed at middle and upper-class people, we will not be
promoting promotions for our products because they can pay a higher price for the
products. Since our prices vary according to the model, the brand and the material used.

Thus, being the price defined to position a product almost exclusively, demonstrating
value and making it more desirable for consumers, the price strategy adopted is the
"Strategic Price".

6.3. Place

Possessing the retail function, shows the Portuguese shoes to divulge the
Portuguese brands products through trade, online platform and magazines, trying to
solve some of the obstacles that some companies face as:

❖ Lack of brand recognition;

❖ High costs
❖ the distribution of their products.

So the Portuguese shoes disclose the brands of manufacturers can be more recognized
by the consumer being present in over 400 exhibitions divided into about 10 European
markets.

To conclude, and in order for the consumer to get better and faster access to
products, Portuguese Shoes will open in European capitals stores. Initially, they created
stores in the main fashion capitals, such as Milan and Paris.

14
 6.4. Promotion

It is a very important and rigorous process. There are certain characteristics such
as simplicity and creativity, which should appear in all actions of communication
developed by the brand for your promotion is effective and efficient.

The means used for the communication of Portuguese shoes, are:

❖ Advertising in magazines, fairs and fashion tv channels;

❖ Public Relationship (brand visibility);
❖ Digital Communication (bet on online platform for the dissemination of the
marches).
❖ Fisic Stores.

Promoting the participation of Portuguese shoes at the fair in Italy, will be made on
its online platform, in fashion magazines such as Vogue and in channels like fashion TV.

One of the next fairs where “Portuguese Shoes” will be in Italy at " TheMICAM" will
take place between 21 and 23 February in Milan.

So at the fair "TheMICAM" the main objective:

❖ Attract new buyers to the products;

❖ Disseminate Portuguese helping brands shoes;
❖ Show the new collection;
❖ The economic level, increase the income of companies and expect them to
grow.

Thus, the promotion of Portuguese shoes in this fair will be made, and only in this
fair, through the discount, since this is recognized worldwide in the fashion world. In this
way, and if a company is interested in ordering a certain volume of shoes (over 2000
units) will have a 20% discount on the total value of the orders.

15
Conclusion

After this work we can conclude that this was very important because it allowed
us, in addition to practicing the subject taught throughout the classes, to get to know
"portuguese shoes" and to develop a marketing plan of the same for Europe. Thus, we
bet on advertising tools to promote the brand and affirm it in this market where
competition to Portuguese shoes is already vast.
It is important to mention that this work was very important because it allowed us to
communicate and work with the students of ERASMUS.

16
References

❖ http://www.portugueseshoes.pt/

Consulted in 10/11/2016

❖ http://www.portuguesesoul.com

Consulted in 10/11/2016

❖ https://www.publico.pt/tema-de-capa/jornal/a-historia-de-uma-industria-
condenada-que-se-tornou-um-modelo-para-portugal-27262596

Consulted in 12/11/2016

❖ http://www.peprobe.com/pt-pt/setor-do-calcado

Consulted in 12/11/2016

❖ http://hardfashion.blogspot.pt/2012/04/calcado-portugues-portuguese-
shoes.html

Consulted in 17/11/2016

❖ https://www.noticiasaominuto.com/economia/446424/setor-do-calcado-nao-foi-
afetado-pela-crise-na-china

Consulted in 19/11/2016

❖ http://www.sindifranca.org.br/blog-sindifranca/italia-maior-produtora-de-
calcados-da-europa-17.html

Consulted in 21/11/2016

❖ http://portugal-india.com/pt/content/sector-do-calcado-em-portugal-com-melhor-
nivel-de-exportacoes-dos-ultimos-17-anos

Consulted in 23/11/2016

❖ http://jornaldoluxemburgo.com/2016/09/calcado-portugues-maior-presenca-
sempre-milao-italia/

Consulted in 23/11/2016

17