Case Study one- Shoes for Moos

MK8102 Cases in Marketing Strategy

Case study one- Shoes for Moos

Linda Byrne

15104705

Problem

Jim Wells is the creator of Shoes for Moos.  Shoes for Moos are a specially designed shoe for cows to support the treatment of foot and hoof infections. Jim is lacking in both experience and capital. He must decide if he should go ahead and invest in Shoes for Moos. To do this he will need to investigate other options currently on the market, finalise his selling price and determine who are his potential customers. Once he has determined these factors he must decide if he will launch the product or not. If it is decided to launch the product Jim must then choose how and where to distribute and market the product.

Analysis

Wells needs to analyse his competitors, customer base, and markets. There are two competitors in the industry.

Competitor One: Shoes are sold in three sizes with either a flat or adjustable heel that can be elevated. They advertise using Direct mail catalogues from the United States and are sold at $21.80 each. The height of the show can allow dirt and moisture in which has the potential to worsen the infection.

Competitor Two: Hydrotherapy boots with hoses, suspenders and compressor.  Not intended for general use in hoof infection proposed for clinical use. Sols at $400 a pair.

Business strategies: There are three potential business strategies Jim should consider for his product. Niche, product quality, and business to business sales or direct sales.

• A niche business strategy would concentrate on the needs of the target market. To ensure this is successful. Jim needs an excellent understanding of his customers, competitors, and any substitute products. This will allow the team to be precise in satisfying the customers’ requirements.
• With a product quality strategy design, function and durability will be key features used to market the product to consumers. Testing and proving the quality will be vital to reinforce the message.
• If Jim focuses on B2B sales he is likely to be able to reach a larger market. However, there is a cost involved that would need to be factored in. How much of a mark-up would retailers require?
• Direct sales have their own costs involved and may have a smaller market reach. However, they should be considered in our analysis.

Options

1. Direct mail using Foundations of the Mentally Handicapped (Ontario and Quebec).

A cost-effective option that allows Jim to have full control of his business and build relationships with his customers. It has an appealing contribution margin which ensures a higher return.

1. Dealers at stores - 40% mark up.

This option offers a broad exposure if dealers are encouraged to promote the product in. The dealers will be required to order a minimum stock increasing the number of shoes on hand and increasing availability for consumers. Dealers would require a 40% mark up which would drastically increase the selling price.