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Assignment deals with over all strategies of marketing in a shoe company namely FMD for almost five years

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Introduction

 The marketing strategy is the overall business plan for the business organization to reach the targeted people and improving their quality of products and services to gain more popularity in the market. The marketing strategy for the company mainly contains the value proposition of the respective company and also helps to provide the main marketing messages to target their customers with high-level elements. The marketing strategy helps to inform the marketing plan that is mainly a document that layouts the timing and types of various marketing activities. In this assignment, the researcher has chosen a shoe company, and the name is FMD, and the researcher will analyses the marketing strategy for almost five years and the change in policy after ten years. The researcher will also provide a go forward plan for the next five years, and a full marketing strategy got the company FMD to compare it with the competitors VICI SHOES.

Background of the company

 The company FMD mainly makes and design women’s and men’s footwear under their brand name and makes separate private label shoes from their competitors. The company went public in the year 2008, and they mainly focus on manufacturing highest quality footwear that is specialized for winter sports, snowboarding boots, skateboarding shoes with their complementary apparel.  The footwear is being produced with extreme sports, and that is mainly is winter sports and for regular use of the phone. The companies FMD are always manufacturer’s shoes with various raw materials like jeans, pants, backpacks and jeans. The wholesale products of the company FMD are mainly branded, private label and licensed footwear to all the department stores and mass merchandiser all over the country. It represents the child footwear for all the children to provide considerable improvement in their market performance.

Marketing strategy for the last five years

 In the first year of the sale of the company FMD, it could be seen that in the start of the business the total amount of revenue had been gained for FMD and the total amount is equal to 19,172,000 dollars in the first annual year.  The total share of the revenue gained by the company FMD is equal to approx fifty per cent and about 6.4 returns have the percentage of total profit in their sales. The marketing strategy is one of the toughest parts for the shoe industry because some customers love to stick with their favorite brands and many skilful marketing techniques need to be used to gain improvement in their business. The total number of expenses that have been invested in the first year is equal to 12,470,000 dollars, and for this reason, the net profit that had been gained by the FMD shoes is equal to 1,218,000 dollars.

Revenue Share of Revenue Return on Sales Return on Marketing Cost of Goods Sold Unit Sales Share of unit Sales Gross margin Total expenses Net Profit

The total cost of all the goods is equal to 7,920,000 dollars approx, and from this, it could be found the overall price with the total amount of gross margin is equivalent to 58.7 per cent with the sales of total units is equal to 198,000. However, in the second year, it could be found that the revenue gained by the company FMD is higher than last year, which is equal to 17,692,230 dollars, and the total share of the income is very more economical than the first year, which is equal to 46.4 per cent.

Revenue Share of Revenue Return on Sales Return on Marketing Cost of Goods Sold Unit Sales Share of unit Sales Gross margin Total expenses Net Profit

The main expenses are being invested for the first year of the company FMD is equal to 12,850,000 dollars, and the total share of the revenue is equivalent to 46.4 per cent. The total return on the marketing of the good is similar to the amount of -9.6 per cent, and unit sales are comparable to the total number of 181,945 units of the shoe products. In the second year, the total number of units are being sold is decidedly less than the previous year. The cost of the goods is also lower than the first year which is equal to the revenue $5,978,713 which is profoundly lower than the first year. The marketing strategy in the second annual year sale was a failure for the FMD Company because the total sales of the shoes are very high in the first than the second year.  Another significant problem in the second year is that all the products that are being sold decidedly less but the expenses are very high. For this reason, the total profit gained by the company is decidedly less which is equal to 1,136,483 dollars, and the complete customer satisfaction is equal to 56.1 per cent which his positive e point in the second year. The overall gross margin of the company FMD could be found higher which is equivalent to 66.2 per cent and the total unit that had been sold is decidedly less which is similar to 181,945. 

Revenue Share of Revenue Return on Sales Return on Marketing Cost of Goods Sold Unit Sales Share of unit Sales Gross margin Total expenses Net Profit

 In the third annual year, it could be found that the total revenue gained by the company   FMD is equal to 20,131,800 dollars and the marketing strategy of the company FMD is higher than the last two years revenue. This year the companies FMD have utilised the new marketing strategy that is being employed to gain more revenue is with the help social media to overcome the loss they have faced in the second annual year. Social media is one of the most inexpensive ways for small business for marketing their shoes. A Separate business page on Instagram and Facebook has helped the company to gain more amount of revenue by posting the pictures and review of the products to learn testimonials that are more positive by FMD shoes. However, the total expense that had been gained for the company in the third annual sale is very high than the last two years because to gain more amount of sales for the company FMD with the help of more promotions.

For this reason, the total expenses for the company FMD are very high and are equal to 19,910,000 dollars, and the gross margin is much higher than the last two years revenue, which is similar to 70.1 per cent. The total customer satisfaction of the company FMD is being increased, it is equivalent to approx 61.1 per cent, the net profit gained by the company FMD is equal to 5,799,050 dollar, which is higher than the last two years, and it is a bad sign for the company. The total number unit sales have been increased from the previous year, it is equal to 213,354, and it is higher than the previous two years sales.

Revenue Share of Revenue Return on Sales Return on Marketing Cost of Goods Sold Unit Sales Share of unit Sales Gross margin Total expenses Net Profit

In the fourth year annual sale of the company FMD, it could be found that the total revenue gained is higher and it is equal to the amount of 22,192,050 dollars. The total gross margin In the fourth year is also high and is equivalent to 72.5 per cent which his positive sign for the company FMD, The total expenses that had been gained is very low than the last three years expenses, and it is equal to 11,250,000 according to their expenses. The total percentage of customer satisfaction is equal to 62.8 per cent, which is lower than the previous than the previous data that provides a huge amount of difficulty to the business process. The total number of unit sales is equivalent to the total amount of 244,695 dollars for the company FMD.  The net profit for the company is equal to 4,849,145 dollars, it is much higher than the last three years of the annual income that provides yearhuge popularity in the market, and the total share unit of sales is equal to 47.4 per cent. 

The total return on sales is also lowered the previous one which is equivalent to 21.9 per cent of the total sales than the last three, and the overall share unit sales for the respective company FMD is equal to about 47.4 per cent, and it is higher than the previous income of the last three annual sales. The marketing strategy of the company FMD has gained a great success in the fourth annual year and their overall expenses are lower than last three annual. The revenue earned by the company FMD is much moiré higher than the previous years. In the fourth, the company was able to draw their customers by providing them with the tremendous opportunity for designing their shoes according to the customers' requirements and making a personal website is a great of delivering real time promotions for all the company. Majority of the business helps to differentiate them from further customers that help to upload the latest designs of the industry to attract many customers in future. The mixed media market strategy provides a tremendous amount of help to the company with the support of traditional marketing methods in their shoe business. The television advertisements, print advertisements and radio broadcasters provide more performance in the industry of shoes. 

Revenue Share of Revenue Return on Sales Return on Marketing Cost of Goods Sold Unit Sales Share of unit Sales Gross margin Total expenses Net Profit

In the fifth year, it could be found the companies FMD have faced deterioration in the total share of the revenue and the total return on their sales is equal to 12.8 per cent. The net profit of the company FMD has been reduced and it similar to 3,103,565 dollars than the last four years of the annual sales. For this reason, The total return n marketing is decreasing for about 22.9 per cent of the revenue, and total cost of goods is equal to the amount of approx 5,874,703 dollars, and it is much lower than the last four years. The total expenses are decidedly less than the first, second and fourth year of the annual sales is equal to 15,240,000 dollars, and the customer satisfaction is decidedly less than the previous years and is similar to about 64.9 per cent. For this reason, there is the requirement of a total change in the strategy to provide more improvement in their business to increase their overall share of the revenue and return on sales needs to be improved because in the fifth year it is much lower and equivalent to approx 12.8 per cent.  The total share of the unit sales is much lower than the previous years, and for this reason, there is a requirement in the change of the overall strategy in the market to bring new changes in the market. 

Changes in strategy over the past 10 years

The new strategy that needs to be provided to bring the necessary changes and improvements in the shoe business is by crowdsourcing that will help the company to gain more amounts of customers with decidedly fewer expenses in the promotion process. The crowd was sourcing the new technique for the advertisement that is highly useful for the shoe company FMD. The crowd sourcing is mainly the involvement of the fans and customers for marketing the product in public by showing off the respective product to other people who will get fascinated to buy the product. It is great marketing strategizing to gain the number of customers in the next ten years.

Revenue Share of Revenue Return on Sales Return on Marketing Cost of Goods Sold Unit Sales Share of unit Sales Gross margin Total expenses Net Profit

In the sixth annual year of the business FMD,Shoe Company the total revenue is very less is equal to 21,385,350 dollar, which is much lower than the previous year. It could be found that the full share of income is fair to 41.2 per cent and the total return on sales is equivalent to 10.1 per cent on their performance on their sales, which is much lower than the previous years. The full share of the unit sales of the shoe company FMD is equal to 38.6 per cent of the sales, and it is much lower than the last year annual plan. However, the total gross margin is still higher than their relative elements, and it is equal to about 77.9 per cent. The total expenses that been found are higher than the fifth year, and it is equivalent to 14,510,000 dollars. The customer satisfaction is much lower than the previous annual year, and it is creating considerable problems to the customers to gain more attraction about their products and the total percentage of the customer satisfaction for the sixth year is equal to 62.9 per cent. The net profit earned by the company FMD is also very low, and it is similar to 2,150,972 dollars, which is much smaller than the previous years.

Revenue Share of Revenue Return on Sales Return on Marketing Cost of Goods Sold Unit Sales Share of unit Sales Gross margin Total expenses Net Profit

From the overall analysis of the tenth, annual revenue it could be found that the change in the marketing strategy is not at all working for the company FMD and it is creating the huge amount of problem to the company. The total revenue gained by the company FMD is one of the lowest than other previous annual sales revenue, and it is equal to 16,404,360 dollars. The total share of revenue of the previous year is also lower than the previous annual year, and it is equal to 30.8 per cent. The total return on sales have resulted into negative terms, and it is creating a huge problem for the company FMD, and the company had faced huge loss in the sixth year because the total expenses are also high in the sixth year compared to the revenue and it is equal to 14,190,000 dollars. The satisfaction of the customer has also been decreased a huge amount, and it is about 57.9 per cent which is much lower than other annual sales revenue.

However, the Gross margin of the company FMD is still in constant, that provides a great positive sign to the company FMD to gain more opportunity to attract many customers, and the gross margin is equal to 79.6 per cent. The total unit sales In the sixth annual revenue is very low for the company FMD than the previous annual year, and it is equal to 167,612, and it is highly lower than the previous year’s revenue. The net profit gained by the company is very low because the total unit of sales is very less for the company FMD and the net profit is equal to 1,137,880 dollars.

Revenue Share of Revenue Return on Sales Return on Marketing Cost of Goods Sold Unit Sales Share of unit Sales Gross margin Total expenses Net Profit

The company FMD  have able to improve their performance with the help of their marketing strategy it could be found that the total revenue is much more higher in the seventh annual year and is equal to 19,969,824 dollars. The full share of the income is much higher than the previous year, and it is similar to 35.5 per cent with the total return on sales 15.8 per cent of the total sales of the shoes. The customer satisfaction of the company FMD has been increased with their new designs and crowd sourcing strategy.  The overall percentage of customer satisfaction has been increased to about 61 per cent. The total expenses are much lesser than the previous annual year and are equal to the amount of 12,475,000 dollars.

 However, the gross margin for the company FMD has increased than the previous years, and it is equal to 78.3 per cent, which is a terrible sign for the company. The net profit of the company has been increased to about 3,157,702 dollar, which is much higher the seventh annual year and other previous annual years. The company was able to gain back their position in the new market with their new marketing strategy that helps them to gain an increase in the number of customers. The return on marketing percentage has been increased than the previous annual year that provided considerable improvements in the company FMD business, and it is equal to about 28.3 per cent.

Revenue Share of Revenue Return on Sales Return on Marketing Cost of Goods Sold Unit Sales Share of unit Sales Gross margin Total expenses Net Profit

In the ninth annual year of the company FMD, the total revenue gained is lesser than the previous yearly year and it is equal to 20,117,798 dollars. However, the full share of the income has been decreased to about 33 per cent, and the overall performances of the company FMD have been detonated. The total return on the sales has been reduced to about  16.7 per cent that provides a considerable amount of improvement in the business in company FMD. The total expenses are very high is equal to 12,880,000 dollars than the previous annual years to improve their market performance in the year next year. The new marketing strategy will provide significant help to the company FMD for targeting all the developing countries people to gain more revenue by manufacturing affordable shoes for all the middle-class people.

 The customer satisfaction has again been decreased to about 60.4 per cent than the previous annual sales. The new strategy must need to be made to gain more revenue for the year next year. The total return on marketing that had been obtained for the company FMD shoes is higher than the previous sales. The Gross margin has again being increased to about 80.7 per cent than the last annual year. The new marketing strategy requires a tremendous amount of improvement by building the brand to gain long-term success of the company FMD. For the competition among the shoe business is one of the most competitive situations to increase more attraction in the market. One of their main competitors is VICI Shoes who are gaining massive popularity in the market than the shoe company FMD.

Go forward plan for the next 5 years

Financial situation after the change in the market for next years

Revenue Share of Revenue Return on Sales Return on Marketing Cost of Goods Sold Unit Sales Share of unit Sales Gross margin Total expenses Net Profit

The next annual revenue it could be found that the total revenue gained in the year next year is decidedly less than the previous year which is equal to 17,912,181 dollars and the full share of the income is decidedly less which is similar to 28.7 per cent. The total return of the sales is equivalent to approx 9.1 per cent, which is much lower than the previous annual year of the company FMD. The Gross margin for the company FMD are increasing at the vast amount, which is creating considerable benefits to the company FMD to gain more opportunity in their business, and it is equal to about 83.2 per cent. The total share unit of the sales is equal to 25 percent, and it is lower than the previous year revenue. The satisfaction of the customer has been increased to gain improvement in 61.9%, and the net profit that had been obtained for the company FMD is equal to 1,622,619 dollars. The total expenses of the company FMD are much higher than the previous year, which is equivalent to 13,280,000 dollars.

Revenue Share of Revenue Return on Sales Return on Marketing Cost of Goods Sold Unit Sales Share of unit Sales Gross margin Total expenses Net Profit

The next annual revenue it could be found that total revenue that had been gained in the tenth last year of the annual revenue is equal to 20,204,296 dollar, which is much higher than the previous yearly. It could be found the company is gaining vast amounts of improvement in their business. The total unit of shoes that had been sold is being increased at a considerable cost for the company FMD shoes, and it is equivalent 236,219. The share of the unit sales is equal to 33.9 %, and the net profit of the company FMD has been increased from the last year. The net gain is similar to the amount 5,974,990 dollar which is higher and the total expenses in the final year are very less for the company FMD shoes which is identical to 10,375,000 dollars.The full share of the revenue is equivalent to 29.4 per cent which his much moiré higher than the previous years. The go forward plan helps to provide planning to the company FMD that enables the company to develop a proper business plan and time plan to improve their financial scenarios. The go forward strategy is mainly the implementation of the right roadmap and positive documentation to make the organisation to follow the proper guidelines for the growth of the organisation.

From the overall analysis of the competitive market, it could be found that the company FMD competitor VICI shoes are gaining much more popularity in the market and for this reason go forward plan is very much important because the competitor VICI shoes have more opportunity in the shoe industry than the shoe company FMD. The net profit of VICI SHOES is higher than FMD, and from the graph, it could be found that the performance graph of FMD has the variation of both negative and positive result in the overall business process. The company VICI shoes graph have gained positive effects and one of the most demanding companies according to the customers. The customers are not at all satisfied with the shoe products of FMD, and they are well attracted to the products of VICI shoes. For this reason, the companies FMD are losing proper growth in their business. The company FMD needs to analyze the business strategies of the company VICI shoes to understand what procedures need to be made to improve the business process. In every annual year, it has been found that the company FMD are gaining very less attraction from the customers and gaining very less popularity in the market that is providing nasty remarks in their business. 

Marketing strategy for next five years

 For the next five years, the primary target market for the FMD shoes needs to be gained for gaining more popularity and growth of their business is by targeting the middle class and upper-class people of the developing countries. Providing more affordable shoes to the people will help them to gain proper growth of their business. The segment of the market is mainly based on the mode of sales, geography, material and gender. The South East Asian market has an enormous opportunity for the company FMD to gain growth of the company.  With the new type of designs and proper quality of product at decent price provides the enormous amount of essential to increase the overall preferences of the consumers with the help of online medium that drives the sales with the support of various online retailers.  The company FMD shoes offer superior experience in buying for their customers to gain more attraction in online sales to gain dominance in the sales segment.

Full marketing strategy

Market Forecasts 

The footwear products of FMD has a vast amount of varieties is equal to dress, casual, sports or hiking and sandal provides the improvement in the shoe categories but still gaining a tremendous amount of development in their business.  The FMD must determine to increase importance to their customers for offering more quality categories for the customers to learn more attraction in the company FMD. The power of big retailers like VICI Shoes is one of the significant challenges that are being faced by the company FMD to gain more customers in the footwear industries. The distribution channel of the company needs to be increased for the company FMD like speciality stores, departmental stores, general merchandise, discount stores and direct consumer approach, internet and catalogues.

 The consumer attitudes and trends help to provide a multi-channel strategy to gain more popularity in the market to learn more attractions on the products on the company FMD. The industry FMD must showcase their entire line of services and prod for showcasing their brand to provide proper brand awareness to the customers and other consumers. The company FMD must make a strong pricing strategy to gain the attraction of their customers for the improvement of the respective business. In the tenth annual year of both the company FMD and VICI shoes, it could be found that the number of customer satisfaction is about 81.7 per cent for VICI companies, but in case of FMD Company, it is equivalent to 61.8 per cent. It is a very terrible condition for the company like FMD to lose their customers due to the lack of quality service and products.

Marketing Mix

Product

 The company FMD shoes have the diverse product of the shoes for all types of people from children to aged people. The shoe product ranges from leather to sports type products because the footwear is the premium products to occupy the significant market share in the global market for footwear. The rise of the health concerns helps to influence for performing outdoor and indoor physical activities.  As said by Adegbola (2014), the trend helps to generate high demands of athletic shoes, leatherwear shoes, and casual shoe wares to increase the demand of the footwear.  As said by Kumar et al. (2013), the global market has witnessed the tremendous amount of growth in the market in footwear has able to observe a steady growth to gain positive anticipation in their business.

Place

 The South East Asian countries are gaining the highest amount of revenue in the footwear industry in the location of India and China.  As said by Borland and Lindgreen (2013), the country India and China are one of the major producers of footwear and the companies FMD can gain products are the very reasonable amount. Both the state India and China was able to more strong position in the global footwear industry for the company FMD shoes and the customers increase the overall demand of the customers to understand the change in lifestyles. As said by Banerjee &Soberman (2013), the value chain of the market mainly includes the stakeholders, and they are raw materials, footwear, distributors, end users and manufacturers.

Promotion

The promotion activities play a significant role to provide attraction among the customers with the help of physical development and online promotions. Online advertisements are one of the cheapest methods for the company FMD shoes to enhance the right values in the business operations to gain competitive benefit in the market.  The company FMD must contact their distributors to provide promotions of their products with many sandals, boots and shoes at different online stores, retail stores, brand outlets and other web portals where the development can be utilised in significant ways.  

Price

The prices of the company FMD are decent for all types of customers from the middle class to upper-middle-class people. The shoe price must be affordable for all kinds of people with decent quality so that there will be decidedly fewer complaints among the customers with their shoe products. As said by Brown &Dant (2014), the pricing strategy is one of the most effective marketing strategies for the company FMD shoes to gain more attraction of the customers against other competitors in the industry. 

Decision making through the financial analysis

It is essential for the company FMD to gain more attraction in the business to learn more appeal in their business products.  As said by Popkova,  Dubova& Romanova (2013), the value chain analysis is very important for the company FMD to provide a more clear view of the fundamental values and intermediaries at every stage. From the study of the finance, it could be found the revenue of the company FMD has both negative and positive peak than their competitor VICI shoes that have the tremendous amount of popularity in the shoe industry.  As said by Dixon, Martinez & Martin (2015), the global footwear market is becoming highly competitive and getting fragmented at a massive amount for all the shoe industry that includes the FMD shoes. Providing shoe product in South East Asia offers multi-channel opportunities to bring out more improvement in the sales strategies to make the availability of their shoes at any places according to the demands of the customers.

Conclusion

From the overall analysis of the company FMD, it could be found the company requires proper customization and designing of their marketing strategy to provide more advantage in the competition than the competitor VICI shoes. The social networking and online store will provide a huge amount of opportunity to encourage their customers to benefits their own marketing technique. The report mainly includes the footwear industry that mainly includes current footwear market trends to provide more amounts of trends in the footwear. Value chain analysis needs to be done to gain more popularity in the market.


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