Assignment on Marketing

Introduction:

ABC International is a small share company located in Agra, India. It is a 25 years old family owned business. The company manufactures leather shoes to be exported to the international market. The footwear of ABC International is synonymous with high fashion, supreme quality with extreme comfort and great durability among retailers.

The company is planning for expansion in the domestic and international market. It is planning to launch a Brand of its own in the domestic market to bank upon the opportunity available in the domestic market. It is analysing the marketing environment for the company to strategise the marketing policy for the next year.

Analysing the Macro Environment

Political & Economic:

• India is the second largest global producer of footwear after China, accounting for 14% of global footwear production of 14.52 billion pairs.

• India’s share in the global footwear imports is around 1.4% and future growth is expected from the SME’s venturing into value added products.

• The Footwear Sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern lines with state-of-the-art machinery. To further assist this process, the Government has permitted 100% Foreign Direct Investment through the automatic route for the Footwear Sector.

• India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand.

• The Indian leather industry enjoys abundant availability of raw materials, availability of low cost skilled labour, and availability of supporting institutions

• Domestic footwear market is estimated to be over Rs 15,000 crore in value terms and has grown at the rate of 8.8% over the last couple of years.

• Indian domestic leather goods market is estimated to be worth Rs 16,300 crore and is expected to grow at a CAGR of 20%.

Social:

• With changing lifestyles and increasing affluence, the...