MM_PGP23_MATRIX_FOOTWEAR

Arka Banerjee PGP/23/379

1. Should Matrix foray into youth market / fashion accessories market?
A: The tastes and preferences of the youth have evolved over the years to the
point where Matrix footwear is no longer an aspirational or demanded product.
With a rapidly expanding youth market that spends more on footwear and treats
it as fashion, Matrix should foray into the youth market with footwear that caters
to their tastes. They can leverage their strong brand equity and with targeted
advertisements can attract a large section of the youth.
The fashion accessories segment seems to be quite tricky with a past failure in
such a direction. However, the market trends have been changing and has
been moving towards the premium segment and it would make sense for Matrix
to foray into the fashion accessories segment, taking necessary precautions and
in a phase by phase manner.
2. What are the factors you should consider while making product / market
decisions?
• While making product/market decisions, the most important factor to
consider is the sales and profits opportunity in the segment/market. The
feasibility of entry to a market depends on the potential sales and in turn,
profits that could be made from the market.
• The second factor to consider is the brand image in the minds of
consumers in the particular segment would play a decisive role in the
viability and popularity of the product.
• The competition that is operating in the market would also play a role in
the decision process.
• The product/market should also have a strong relation to the core
competencies of the company so that it can be leveraged to yield the
best results when it comes to creating new products and boosting sales
figures.
3. How does product policy impact the value proposition of Matrix store?
The initial product policy of Matrix footwear was to offer value for money
products that were reliable, in a store that was a good place for family outings
and where the staff were polite and friendly. In trying to launch new products
lines at premium prices, Matrix confused the market as to what their proposition
was. The premium products took away the reason for family visits from long time
customers who did not appreciate the increase in prices. The elite segment of
the market did not find the store experience to be along the lines of those
expected from stores that sell such premium products with the staff not well
trained to engage with such customers. The confusion led to a significant drop in
the sales and profitability of Matrix as they lost their core customers due to their
positioning and failed to attract new customers due to flawed marketing.
4. How can Matrix diversify into unrelated areas like fashion accessories
without repeating the mistakes of the past?
A good strategy for Matrix to launch into unrelated areas like fashion accessories
would be to launch a sub-brand for those products. They should start off with
products that are related to their existing product line so that they can leverage
their expertise to increase the sales of the new product through their existing
brand stores. Their strategy should be to eventually move beyond utilizing their
current brand stores once the new brand’s brand equity has developed enough
 MM_PGP23_MATRIX_FOOTWEAR
Arka Banerjee PGP/23/379
to launch and move to entirely new stores dedicated to the new brand. It should
prevent dilution of the Matrix footwear brand while allowing for the opportunity
to let the company expand to the newer segments without confusing their core
customers.