A PROJECT REPORT ON NEW PRODUCT LAUNCH (SHOES)

Executive summary
we know that a person can be best described with his shoes. we have comeup with a unique and simple
product COX SHOES .These days in our hecticlives, we face a general problem of bad odour from a pair
of shoes worn buys for long duration .People sitting close to us or in our nearby surrounding start
getting irritated as well as they get bad smell that is more than difficultto bear up.So, to over come this
problem we have come up with a solution for you – “COX SHOES”. Cox shoes avid range of fragrance pad
gives the consumers a varied range to choose from. (the inner part of fragrance padis so designed that it
will fit only to COX shoes) Cox shoes feature of acupressure will not only seek to health problems but
also dilutes problemsof leg sprains and muscle strains. Additional materials like KELVAR has been used
to enhance the quality. As this is a new product with new additionalfeatures of fragrance pad and
acu pressure points in the sports shoes forthe first time, so reasonable Price is set based largely on
competitor’s price,by comparing quality, and features.Our product is compared with productsin upper
middle and lower middle category i.e. with Adidas, Nike, Action,Reebok etc… also As the product has
special feature like acupressure pointsand fragrance pad it will be characterized by high level of
perceived qualityand features with price just high enough but not out of customer’sreach.Determinig all
these factorsPrice range of product: Rs1500.00 to 4000.00 is set. Promotion mix likeAdvertising,Sales
promotion,Direct marketing and public relation are usedto build a brand image and increase the sales
volume.Distribution channelslike zero-level ,1level and 2 –level has been selected for the product to
reach all the targeted segment

INTRODUCTION OF NEW PRODUCT

COX SHOES
“If your feet is in your shoes,You can steer
yourself IN ANY DIRECTION You choose,You are on your own,and You
know what you know,you are the guy who ll decide where to go.”

And as we know that a person can be best described wih his shoeswe have come
up with a unique and simple product COX SHOES.These days in our hectic lives,
we face a general problem of badodour from a pair of shoes worn by us for long
duration .Peoplesitting close to us or in our nearby surrounding start
gettingirritated as well as they get bad smell that is more than difficult tobear up.
So, to overcome this problem we have come up with asolution for you – “COX
SHOES” with a special fragrance orientedpads ,so as to secrete a pleasing odour
all the while schedulewithout being embarrassed.Using this once will make a
you a loyal believer of its advantages,which industry has never witnessed before.

Since our pads are replaceable, we are also providing two extrapads with our
shoes free. Each pad can be used regularly for sixmonths.Since we are also
targeting health and as it is said that “health iswealth” so we have come up with
and added feature of our shoethat is there will be accupressure points, so that
customer will berelieved from major health problems which come up due to
stressand over exertion.Our shoe will also be available with different fragrances
(mild &strong) accordingly.

WHY FOOT WEAR MARKET?

 The Indian foot wear retail market is expected to grow at a CAGR of over 20% forthe period
spanning from 2008 to 2011.

 It is expected to increase in about 60% of the total raw materials of foot wearexport by 2011
from over 38% in 2006-2008.

 Presently the Indian footwear market is dominated by men’s foot wear market thataccounts
58% of the total Indian footwear retail market.

 Entry and exit barriers are low.

ABOUT THE PRODUCT

 . COX shoes behave like an extension of the foot, which is acomplex structure of bone, muscle
and fatty tissues.

 Cox shoes provide the user with a comfortableness and uniqueness to the maximum.

 Cox shoes avid range of fragrance pad gives the consumers avaried range to choose from. (the
inner part of fragrance padis so designed that it will fit only to COX shoes)

 The fragrance provided with the shoes will save the user from embarrassments arising from bad
odour .

 Cox shoes feature of acupressure will not only seek to healthproblems but also dilutes problems
of leg sprains and musclestrains.

Raw Materials used in shoes

To enhance performance, sophisticated shoe structures are employed which make use of viscous and
elastic foam materials such as ethylene vinyl acetate (EVA) and polyurethane (PU). The use of viscous
plastics in the heel area serves to absorb the impact forces during the initial ground contact, and
provides the foot with a soft ‘cushioning’ effect.
Additional materials used:
1
KELVAR (Used to enhance the quality) The Properties of KEVLAR.KEVLAR is one of the most important
manmade organic fibers everdeveloped. Because of its unique combination of properties it isused today
in a wide variety of industrial applications. The fiberpossesses a remarkable combination of properties
that has led toits use in a variety of commercial products since the 1970'sFibers of KEVLAR consist
of long, interconnecting molecularchains produced from poly-paraphenylene terephthalamide.
General Features of KEVLAR:
·
High Tensile Strength at Low Weight· Low Elongation to Break High Modulus (Structural Rigidity)· Low
Electrical Conductivity· High Chemical Resistance· Low Thermal Shrinkage· High Toughness (Work-To-
Break)· Excellent Dimensional Stability· High Cut Resistance· Flame Resistant, Self-Extinguishing

2.
Material used in making of fragrance pad andacupressure point

 Vegetable tanned sheepskin

 Active carbon filter prevents odor

 Slightly padded with latex foam

 Fragrance

 Breathable leather shoe liner protects the inside of shoes fromdampness, bacteria
causing odor.

Product attributes

 Provides freshness to feet by its pleasant smell.

 Acupressure will act as a reliever of pain.

 Replacable fragrance and acupressure pad(the inner part of fragrance pad is so

designed that it will fit only to COXshoes)

 Pioneered in comfort

 Best for athletes

 Provides firmness to feet

 Style quotient also maintained

 Available in varied range of price and size with a warranty of 1year.

PRODUCT MIX FOR COX SHOES
 TARGETING
SEGMENTATION

Geographic
City: More focus on metro cities because people believe in tryinginnovative, new and better products.

Demographic:
Age: 14 years and above.Gender: Male and female both.Income: earning above Rs 20000 thousand
P.M.Occupation: Students, Athletes.

Psychographic:
Socio-economic: Upper-middle.Lower-middle.Life-style: Sport-oriented, outdoor oriented.

Behavioral:
Benefits: Quality, service, after sell service.User status: Non user, potential user, first time user.

TARGETING

1.Measurable: Size ,purchasing power ,characteristics of thesegments

2.Substantial: A segment should be largest possible homogeneousgroups worth going after with a
tailored marketing programe.g.earning capacity 20,000p.m.
3. Accessible: Reach should be good.
4. Differentiation: People have different perception about differentmarketing mix. A business man and a
sports person will havedifferent feel about COX shoes.
5. Actionable: Effective programs can be formulated for attractingand serving the segments
 POSITIONING

Positioning through point of difference by presenting and highlighting the new attributes of cox shoes.

 Relevance
 Feasibility
 Distinctiveness
 Believability
 Communicability
 Sustainability

Pricing
Pricing is the process of determining what a company will receive in exchange for its products. Pricing
factors are manufacturing cost, marketplace, competition, market condition, Quality of product.

Setting the price

As this is a new product with new additional features of fragrance pad and acu pressure points launching
for the first time, so reasonable price should be set according to the following factor

 Selecting the price objective.

 Determine demand.
 Estimate cost.
 Analyzing competitors cost price and offers.
 Selecting price method.
 Final price

Selecting the price objective Product quality leadership

As the product has special feature like acupressure points and fragrance pad it will be characterized by
high level of perceived quality and features with price just high enough but not out of customer’s reach.
Determining the demand
1. Product is distinctive because of its special feature in it (fragrance pad &acupressure), which makes it
different from others.
2. Buyers less aware of substitute since there is no other player in the market with such features, so
in respect of its features buyers will not get any substitute.
3. Expenditure is smaller part of the buyers total income .since the price of footwear is small part of the
total income.
4. The product has more quality and exclusiveness. So according to this market for the product will be
fewer prices sensitive and price can be kept a little higher than other products.

Estimating cost
The total cost depends on fixed and variable cost. It is important to knowhow cost vary with different
levels of production ,and accordingly cost are estimated. Economies of scale are used to minimize
the cost in long run.
Since the product has added features and enhanced quality so theproduct will be perceived similar to
product in upper middle and inlower middle category so the price of the product will be comparedwith
Adidas, Nike and Reebok.

Selecting a price method

GOING RATE PRICING
Our product’s price is based largely on competitor’s price, bycomparing quality, and features.Our
product is compared with products in upper middle and lowermiddle category i.e. with Adidas,
Nike, Action, Reebok etc…

SELECTING FINAL PRICE

Finally selecting the price additional factors like the impact of other marketing activities, company
pricing policies, gain and risksharing pricing are considered.
Raw Materials used in shoes
To enhance performance, sophisticated shoe structures areemployed which make use of viscous and
elastic foam materialssuch asethylene vinyl acetate (EVA) and polyurethane (PU). The use of viscous
plastics in the heel area serves to absorb theimpact forces during the initial ground contact, and
provides thefoot with a soft ‘cushioning’ effect.

Additional materials used:

1.KELVAR (Used to enhance the quality)

2.Material used in making of fragrance pad and acu pressure point

 Vegetable tanned sheepskin

 Active carbon filter prevents odor
 Slightly padded with latex foam
 Fragrance
 Breatheable leather shoe liner protects the inside of shoes fromdampness,
bacteria causing odour .
 Promotion
Marketing activity used to communicate to consumer about the organization its product, its
activity and directly or indirectly expenditure.

Promotion mix

 Advertising
 Sales Promotion
 Direct marketing
 public relation

Advertising :
A paid form of non personal communication through media.We are promoting our shoe as it provides.-
Nice fragrance-acupressure point that help to control blood pressures.As our logo & caption “we did it
“which we have taken also suggest that we have created a product which is beneficial for the customer
,because no such shoes has been launched yet which hhave acupressure point and fragrance paid along
with good quality.
Sales promotion
An activity or material that Offer a direct inducement to purchase .We can do our sales promotion by:
1.Sport sponsorship By sponsoring local sports events.
2.Event sponsorship By sponsoring events like new year eve.
3.Advertisement on wheels
4.ContestsContest like marathon race can be organized to build brand image and increase the
sales volume.
5.Tying up with core companies having brand name and
involved in making only sports accessories or associating with brand companies producing health
care gadgets to get the benefits of their brand value and increase the sales volume .
6.Using print media : Sport magazines

DISTRIBUTION CHANNEL
Chain of intermediaries, each passing the product down the chainto the next organization, before it
finally reaches the consumer orend-user. This process is known as the 'distribution chain' or
the'channel.' Each of the elements in these chains will have their ownspecific needs, which the producer
must take into account, alongwith those of the all-important end-user.

CHANNELS
A number of alternate 'channels' of distribution may be available:

 Distributor, who sells to retailers

 Retailer (also calleddealerorreseller), who sells to end customers
 Advertisement typically used for consumption goodsDistribution channels may not be restricted
to physical productsalone. They may be just as important for moving a service fromproducer to
consumer in certain sectors, since both direct andindirect channels may be used. Hotels, for
example, may sell theirservices (typically rooms) directly or through travel agents,
touroperators, airlines, tourist boards, centralized reservation systems,etc. There have also
been some innovations in the distribution of services. For example, there has been an
increaseinfranchisingand in rental services - the latter offering anythingfrom televisions through
 tools. There has also been some evidenceof service integration, with services linking together,
particularly inthe travel and tourism sectors.

CHANNEL LEVELS

There are four channel levels by which a company can reach to consumers.

 zero level channel

 level channel
 level channel But we will be using only first three channel for our product
distribution.

1.
Zero level channels
consist of a manufacturer selling directly to final consumer. we willbe selling our shoes by internet
selling(by sending mails, by using sites such as e-bay ,amzon, alibaba.com).We will also sell our shoes
directly to various institutes and sportsacademy.
2.
1-level channels
, In 1-level channel we use only one intermediary or distributor, who willsupply goods to the retailer and
they will also provide feedback to the company about demand of consumers.Exclusive showrooms can
be used with wide coverage to cover different price points and target different segment of customers,
which will generate sales volume.
3.
2 -level channels
contains two intermediaries selling to retailers through wholesaler and finally to customer inorder to
cover the maximum targeted segment .(Here benefits of influence of distributor is used)

Ways of promoting

 Here are some points which I prefer for promotion:-

 1.EVENTS- Hosting and sponsoring events.

 2.CONTESTS- Making and organizing contests where the winner will win a Cox shoe.

 3.PRINT MEDIA- Using newspapers or magazines for promotion to a wider audience.

 4.BUILD A WEBSITE FOR THE BUSINESS- Creating a website to give costumers the full knowledge
about the Cox shoe.

 5. HOST SOCIAL EVENTS- Organising charity events to increase reputation.

Schemes for-

 Consumers-
1 year warranty if there is any problem or sole damage.
  Retailers-
Commission of 5% on sale of 50 pairs.

 Wholesalers-
Discount of 20% on 300 Pairs

- Packaging

 Primary packaging- It’s the products immediate container.

Product is covered by a paper which protects it from scratching.

 Secondary packaging- It is an additional packaging, which provides additional layer of

protection.
The shoes will now be kept inside a recycled paper card box .

 Transportation packaging- It refers to further packing, which is necessary to protect the product
in the process of transportation and storage.
The 20 pairs with secondary packing are kept inside a cardboard box to keep them safe together
while transporting to the wholesalers or retailers.

Decisions related to warehousing, reasons.

The need for storing or warehousing arises because there is a time gap between production and
consumption of goods.

Following decisions would be taken related to warehousing :

 1.Location- Considering shipping location of suppliers, as well as delivery location arranged for
costumers.

 2.Access- For importing and exporting they should be close to major port locations with
strengths aligned with the product type.

 3.Storage area- The area it can offer to store right quantity of product in good condition.

Means of transport would be used and why?

 Trucks will be used to carry a huge lot from the manufacturing plan to the authorized retailers.
They will also be used to carry a very large unit to different far off places to save time and
money which could have been spent using a van.
Vans will be used to access rural areas or small areas where the truck cannot move easily
because of the roads or the telephone lines.
 Social message for label

 On the purchase of every pair of shoe, 2% of the amount to be given to ‘Being human’ charity
for underprivileged children.

 Charity event will be held on end of every financial year.

Cost effective techniques to follow

 Internet Marketing

 Analyzing the organization

 Analyzing the environment

 Analyzing the customers and stakeholders

 Examine opportunities and threats

 Gain more market share.

 Safety-security

Cost effective technique to follow promotion plan.

Business website

Advertisement on Social websites

Word of mouth

Sales promotion techniques such as distributing gift vouchers, discount, etc.

Personal selling involving door to door selling by salesman so as to attract costumers personally.