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Project Report Part 2
Company Name: Convertibles
Tagline: Your shoes for all seasons
Section A: Executive Summary
The new product that we are recommending is a detachable cover that can be worn over
a normal shoe and converted into a snow boot. The company name is “Convertibles”, this is a
footwear partnership organization that has designed a removable cover that can be placed over
a regular shoe to transform it into a snow boot. The cover is constructed of a strong, waterproof
cloth that is meant to fit tightly over the shoe and has a non-slip sole for grip on snow and ice.
The invention was inspired by the desire to give a solution for those who need a shoe that can
be worn in different weather conditions without having to buy separate shoes for each season.
Customers would love the product because it is cost-effective, easy, pleasant, and sustainable,
while also addressing their demands for diversity and mobility.” Convertibles” overall goal is
to give clients an easy and economical option to convert their existing shoes into snow boots
for occasional usage, making it an ideal alternative for commuters and outdoor lovers.
This report explores the effect of macro-environmental influences on the success of
"Convertibles." Demographic, economic, natural, technical, political, and cultural issues may
all have an impact on the product's appeal. For example, younger and more energetic people
who value fashion and convenience are more likely to buy the goods offered by Convertibles.
Economic growth may enhance demand for luxury products such as convertibles, whilst a
recession may lower demand. Climate change and weather patterns may also have an influence
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on demand. Technical advances may have an impact on manufacturing costs or efficiency.
Government rules and regulations may have an influence on the pricing and availability of the
goods. Lastly, societal norms and values may have an impact on product appeal. These external
elements, which include political, economic, social, technical, legal, and environmental issues,
can be analyzed using the PESTLE framework. Businesses may make educated judgements
about product design, price, and distribution by considering these aspects. This is further
discussed in Section B.
Section B: Macro Environmental Impact
The company of convertible shoe covers is described in this document's market
segmentation strategies. Demographic and behavioral segmentation are the two categories of
segmentation that can be applied. The document emphasizes that behavioral segmentation is
the best option because it is feasible, profitable, and measurable and includes nearly all
segmentation variables. The value proposition of the product is to give a substitute for
snowshoes that is comfortable and simple to use for new users who want to incorporate them
into daily routines. People in the 25–54 age range who labour or venture outside regularly
during the bitter winters, such as fishermen, outdoor enthusiasts, and businesspeople, are the
target market. The estimated 1.5 million residents of Halifax, Sydney, Glace Bay, and Truro
make up the potential market, and considering a $60 product price, the potential sales could
total about 9 million.
The convertibles will be a new line of detachable covers intended to transform common
shoes into snow boots or weatherproof footwear, which will be described in depth in this
marketing mix plan. The product will offer an additional arch support feature to address the
problems encountered by various target market segments, including fishermen. Following a
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value-based pricing strategy, the price point is intended to be competitive and affordable for
the target market. It will be made available through a few online and offline channels, such as
sports and specialty shops, social media, and online marketplaces. To increase brand awareness
and product demand, the promotional plan will use a combination of offline and online
marketing channels. The strengths of the product will be a less competitive market, the firstmover advantage, internal manufacturing, and established channels of distribution as well as
the growth opportunities, provincial grants, specialized product lines, and changes in
governmental regulations which are highlighted in the SWOT analysis. The main stakeholders,
activities, value propositions, customer relationships, customer segments, channels, cost
structure, and income streams are described in the business canvas model. To generate demand
for the product and carve out a niche in the cutthroat footwear market, Convertibles' overall
marketing strategy seeks to satisfy the needs and preferences of its target market.
To comprehend the product's possible success or failure in the market, the influence of
macro-environmental forces on a product like convertibles, a 2 in 1 shoe for winter, must be
examined. The popularity of the product may be influenced by demographic variables such as
age, gender, education, income, and lifestyle, with younger and more active people being more
likely to be interested in it. The demand for the product may also be impacted by economic
factors such as income levels, inflation, and economic growth because customers might be less
likely to buy the product if it is too costly or during a recession. Depending on how severe the
winter is, environmental factors like weather patterns and climate change may have an effect
on the product's demand. New materials or manufacturing techniques brought about by
technological developments might have an impact on the product's robustness, comfort, or
sustainability. Due to import/export tariffs, taxes, or material sourcing, political variables, such
as government policies or laws, may affect the product's price and availability. Finally, cultural
aspects like social values and fashion trends may have an impact on how well-liked a product
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is among customers. In order to develop successful marketing and business plans for the
product, it is essential to understand these macro-environmental forces.
The "convertibles" product is a multipurpose, 2-in-1 winter sneaker, and its effects on
the macro environment can be evaluated based on a number of variables. Demographics, which
include traits like age, gender, income, education, and lifestyle, is one such influence. This
merchandise is likely to be well-liked by younger people who value convenience and style.
However, because older people tend to favour footwear with more support and stability,
demand for the product may decline as the population matures.
The effect of convertibles is also influenced by the economy. Demand for luxury
products like this one might increase during an economic expansion while falling during a
recession. Demand for the goods will also be influenced by its price. If it is too expensive,
many prospective customers might not be able to afford it.
Climate change, weather patterns, and natural catastrophes are all taken into account by
the natural factor. Convertibles may be more popular in places with harsh winters because they
are made for winter use. However, if winters become milder due to climate change, this could
affect the market for the product.
The convertible product may be impacted by technological advances in materials and
production methods; this is the technological element. Among other advantages, it might lower
production expenses or boost productivity.
The political element takes into account how government laws, rules, and regulations
affect the product. For instance, taxes, tariffs, and regulations on materials used in production
may have an effect on the cost and accessibility of the product.
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The cultural element also takes into account social norms, beliefs, values, and attitudes.
In societies where practicality and functionality are valued more highly than fashion and
aesthetics, the convertible product may be more widely used.
In conclusion, a variety of variables, including those related to demographics,
economies, natural resources, politics, technology, and cultures, affect how the convertibles
product affects the macroenvironment. Having a thorough understanding of these variables is
essential for creating profitable marketing and company plans.
PESTLE analysis is a method for assessing the outside forces affecting a company or
sector. The following PESTLE variables for convertibles can be investigated:
Political aspects Government trade, tax, and labour legislation policies and regulations
are examples of political variables. Convertible output, sales, and pricing may be impacted by
these variables.
Economic factors: The desire for convertibles may be impacted by economic factors
like inflation, economic growth, and income levels. Consumers might be less likely to buy
convertibles if there is a recession or if the product is too costly.
Sociocultural factors: Sociocultural factors, which may affect the desire for a product,
include cultural values, demographics, and lifestyle trends. Younger, more active people who
value utility and style may favour convertibles more than others.
Technological aspects: Technological aspects can affect a product's design, sturdiness,
and sustainability by advancing manufacturing techniques and introducing new materials.
Convertibles may be less marketable as a result of improvements in insulation technology or
water-resistant fabrics.
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Legal considerations: Legal considerations that have an effect on the creation and
distribution of convertibles may include labour laws, intellectual property regulations, and
environmental laws.
Natural disasters, climate change, and weather patterns are environmental factors that
could affect the market for convertibles. The item might be more in demand in areas with severe
winters.
In conclusion, businesses can gain a better understanding of the external environment
in which they function by investigating the PESTLE factors that have an effect on convertibles.
Making strategic decisions about product design, pricing, and marketing can be aided by this
information.
Section C: Market Segments
Market segments are distinct, recognizable groupings of consumers or potential
consumers who, within a broader market, have comparable requirements, wants, preferences,
or habits. There are four types of market segments Behavioral, Demographic, Psychographic,
and Geographic Segment. For the convertible Shoe cover business, we can use two types of
segmentation Behavioral and demographic.
A marketing tactic known as behavioral segmentation classifies customers according
to their behavior, including their buying patterns, brand loyalty, and level of involvement with
a given good or service. With this segmentation, we can target people who want an alternative
to snowshoes, want comfort, are first-time users, and want to use them in daily routines.
Demographic segmentation divides the market into distinct groups such as age, gender,
income, education, marital status, occupation, and other comparable aspects. It can also be used
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as we can target people who are from nova scotia and aged between 25-54, mainly fishermen,
outdoor enthusiasts, industry people, or work outside in deep snow.
Marketing Segmentation
Behavioral Segmentation
Demographic Segmentation
Segmentation Variables
Segmentation Bases
Benefits
Comfort, easiness
Usage Situation
Daily
Buyer’s Status
First users
Age
25-54
Occupation
Fishermen, Industry people
Nationality
Nova scotia
Behavioral Segmentation
Although both market segmentations are important, however, we will be using
behavioral segmentation for this business because it is reachable, profitable, and measurable
and almost all the segmentation variables are covered under this market segment. For instance,
people can get benefits by buying this convertible shoe cover. They can feel comfortable, and
they do not need to carry two different types of shoes one for snow and the other one for
indoors. They can just wear that cover and make their regular shoe snow ones. So, they do not
need to spend much on snowshoes, and this is very helpful for price-conscious people. This
detachable and portable cover can be worn over a regular shoe to provide additional insulation
and waterproofing. Talking about the usage situation, we are targeting heavy users such as
Fishermen, Outdoor Enthusiasts, industry people, and general labourers who work or go
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outside daily. As we already know people always want an alternate option of snowshoes as
they find it difficult to deal with both types of shoes. So, delivering individualized experiences
that keep customers interested and coming back for more may be made possible with the help
of interest-based behavioral segmentation. Moreover, the modern application of timing-based
behavioral segmentation focuses on the periods when a client is more likely to interact with a
business or be responsive to offers. So, we can sell our product in the winter season as at that
time people purchase more items according to the weather.
Positioning Value proposition
We have decided to go with this product for a variety of reasons such as a removable
snowshoe cover's primary value proposition is to increase grip and protect the shoes in slippery
or snowy weather. The user will benefit from the cover's ease and adaptability because it is
made to be quickly connected to and removed from the shoe. By shielding the shoe from salt
and other substances that are frequently found on snowy streets and sidewalks, it can also help
extend the shoe's lifespan. The main advantage of a removable cover for snow shoes is that it
enables users to walk in snowy weather in their regular shoes without having to buy a separate
pair of snow boots. Users can save time and money by buying this convertible shoe cover.
Also, the cover's increased grip helps lessen the risk of slips and falls on slippery surfaces,
making it an important safety feature. Those who reside in places with regular snowfall or icy
conditions, as well as those who walk or travel in similar circumstances daily, may find that a
removable cover for shoes is a good option. It could offer a practical and affordable way to
remain warm and safe over the winter.
Potential Market Size
The term "potential market size" describes the overall amount of the market or customer
that a company or product may hope to serve. It depicts the largest market size that might
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potentially be achieved, given that all possible clients or market segments are acquired. As we
are targeting the 25-54 age group of people living in Halifax, Sydney, Glace Bay, and Truro,
So, the total number of target customers or the market size is almost 1.5 million. These people
work and go outside daily in harsh winters. Therefore, we will produce this number of products.
Potential Sales
The term "potential sales" normally means the total volume of sales that a company or
salesperson may be able to produce over a period of a particular duration, usually in the future.
It indicates the highest sales revenue possible under ideal circumstances. As our total targeted
customers are 1.5 million and assume that our product price is $60. Then, the potential sales
will be almost 9 million.
Section D: Marketing Mix for Convertibles
Product:
Convertibles are detachable covers worn over regular shoes to convert them into snow
boots or make them suitable for wet weather. The product comes in different sizes and colors,
is expandable up to customizable styles and designs, and caters to the needs and preferences of
different customers. We plan to make the product primarily from durable and waterproof
material Gore-Tex or Neoprene, which makes it perfect for harsh weather conditions taking
cost/affordability into consideration.
The convertibles address the challenges faced by major segments of the target audience
e.g., fishermen with the boot and long work hours face challenges with the Arch support which
is not addressed by any of the boot/shoe providers currently in the market. So, introducing
additional Arch support would not only act as a USP (Unique selling proposition) but also help
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in penetrating into the market and capturing market share. (Why Proper Footwear Is So
Important for Fishermen,2019)
The Convertibles line of products is planned to roll out phase by phase, with the initial
phase as the convertibles are ready to go range of products and further expansion into a
specialized range of products (Ready to work and Outdoor Enthusiast). Packaging Strategy
varies from general and specialized. The general range (Ready to-go) is more shelf-ready, with
appealing packaging.
Figure 1: Branding and Product Line Labeling
Levels of Core
Product
Actual
Waterproofing
Insulation Comfort Affordability Versatility
Design
Style
Hassle-free Transition
Peace
of
Mind
Augmented CustomDesign
On Call Customer Care
ArchSupport
(Specialized for Fishing)
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Price:
The price of Convertibles is set to be competitive and affordable compared to other
snow boots or weatherproof shoes in the market. the price is set according to the target
audience's affordability and covers the cost of production, marketing, and distribution.
The pricing strategy for Convertibles revolves around Value-based pricing, and we will
follow a penetration approach to capture the new market. Thus, the range of specialized
products focuses on functionality, and all designs will have separate pricing depending upon
the functionality. For instance, we may set the price of Convertibles at a range of $50- $90,
which is lower than other snow boots and weatherproof shoes that may cost over $200 (cycles
& Text, n.d.) The manufacturing and the assembly line will be centrally located in Truro, Nova
Scotia, cutting the cost of operations and delivery, making convertibles eligible for provincial
Grants, and giving in-house make advantage.
Placement:
The distribution strategy for Convertibles will focus on online and offline channels to
reach the target market effectively. An Indirect Distribution channel with a Selective
distribution approach, i.e., selling goods at stores in particular places (mainly Sydney, Truro,
Halifax, Sydney River, North Sydney, and Glacebay). For instance, various stores, including
Sports Check, Ardene, Marks, and Canadian Tire.
Online channels will include the company's website, social media platforms (Facebook
and Instagram Pages through influencers), and online marketplaces like Amazon. Offline
channels will also include outdoor specialty retailers (Sports Check for a specialized range for
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outdoor enthusiasts), community engagement programs (Farmers Market and fishery
associations such as Fishery and Aqua-marine outlets and offices)
Promotion:
The promotion strategy for Convertibles will create brand awareness and generate
product demand. The strategy will include a combination of online and offline marketing
channels. Online marketing will include social media advertising, content marketing, and email
marketing. Offline marketing will include outdoor advertising, print media, and product
demonstrations at outdoor retailers. The company may also collaborate with outdoor and social
influencers and bloggers to promote the product on social media. It also partnered with a
governmental association to empower the existing community in Nova Scotia. Local
newspapers and television channels will be a source of advertisement.
Overall, the marketing mix for Convertibles is designed to cater to the needs and preferences
of the target market while generating demand for the product. By offering a unique and
affordable solution to weatherproof shoes, Convertibles has the potential to carve out a niche
in the competitive footwear market.
SWOT
Strength
Weakness

Less or no competition

Inexperienced Management

First Mover Advantage

Low Margins

In-house make.
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
Already
established
Channel
of
distribution
Opportunity

Thread
Provincial rebate on establishment/
startup


New Competitors

Change in Government Regulations
Specialized line of Products
Below, the Canvas model explains the firm’s (convertibles) business plan.
Business Canvas Mode
Key Partners

Local Groups
Key Activity

&Associations

Support

Versatility

Functionality
Investors

Relationship
Segmentation


Platform

Affordability
General
Public
Channels

Community

Customer
on
Need
Key Resources
Strong
Customer
Specialized
Focus

Customer
Support
Provincial
Stores

Customer
Value Propositions
Word of

Fishermen

Outdoor
Enthusiast
Mouth

Social
Media

Industry
(Government
Canada, 2016)
of
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Cost Structure
Revenue Streams

Economies of Scale

Social Media

Premium Value Proposition

Provincial Grant (Early Startup

Fixed Cost

Affiliate Marketing
Conclusion
Overall, in order to predict a product's likelihood of success or failure on the market, it
is essential to comprehend how macroenvironmental factors affect convertibles. The desire for
the product may be impacted by demographic, economic, natural, technological, political, and
cultural variables. Businesses can evaluate the external factors that have an effect on their
product and make educated choices about product development, pricing, and distribution by
using a PESTLE analysis. Businesses can develop successful marketing and business strategies
to compete in the market by taking these aspects into account.
Market segmentation is a vital tool for businesses to recognize and target customer
groups with similar requirements and characteristics. The most important segmentations for
the convertible shoe cover market are behavioral and demographic, with an emphasis on heavy
users who need an alternative to snowshoes for everyday activities, such as fishermen, outdoor
enthusiasts, and businesspeople. The product's convenience, usability, and cost-effectiveness
are its three main selling points, and they will appeal to customers who are budget-conscious
and value pragmatism. According to an estimated 1.5 million possible customers, the product
could generate $9 million in revenue at a $60 price point. The convertible shoe cover company
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can successfully place itself in the market and appeal to its target customers by utilizing the
advantages of behavioral segmentation and targeting demographic groups.
Convertibles' marketing strategy focuses on adding value for the target market by
providing a distinctive and reasonably priced alternative to weatherproof shoes. Convertibles
is a series of detachable covers that transform regular shoes into snow boots or weatherproof
shoes. The product is made to address the issues encountered by various customer groups, such
as the need for Arch support for fishermen, while also catering to their needs and preferences.
Value-based pricing is the focal point of the pricing plan, and both online and offline channels
are used for distribution. Through a combination of offline and online marketing channels, the
promotion strategy seeks to increase product demand and brand recognition. Convertibles has
the potential to carve out a niche in the crowded footwear market thanks to a strong value
proposition, an emphasis on functionality, and a flexible and reasonably priced product. The
Business Canvas Model and the SWOT analysis give a thorough overview of the company's
business strategy, as well as its main partners, partners, activities, and revenue streams.
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Why Proper Footwear Is So Important for Fishermen | Bass Angler Magazine. (2019, March
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