Strategic Plan - Athletic Shoe Company

Kevin

Group Name: G

Company Goals / Evaluation:

Increase market share by 25%

Expand market nationally and globally in N. America, L. America, Europe/Africa, Asia/Pacific

Increase earnings per share by 10% through year 15

Maintain a B+ or higher credit rating

Increase net profit by 20%

Strategy:

1. In-Market Strategy:

Middle market will be our focus for the in-market strategy. We think this strategy is right because there are at least seven competitors in this particular market. We want to increase our market share as much as possible and also maintain our current image. It would be too costly to use high-end in-market strategy. Mass market strategy might take too long to be more profitable and it might also lower our image among customers. Implementing a middle market strategy will give us more space and flexibility to interact with our customer. Also, this will allow us to better serve their needs and enable us to be more capable to compete with our competitors.

2. Growth Strategy:

We want to use a Market Penetration strategy to increase our market share in the existing market from year 11. We want to attract non-users of our product and convince customers of our competitors to shift to our brand; therefore, generating more sales revenues and more market share. As sale volume increases, we will achieve economies of scale along the way. Market Penetration strategy will deter new competitors who are considering entering the market and might also force existing competitors to exit. Market Penetration will be implemented through intensive sales promotion, advertising, penetration pricing and value pricing.

Segmentation Plan:

For Gara’s segmentation plan, we will use a differentiated segmentation scheme. In this case, we will have a small number of segments. For our first segment, we will target families with middle income in urban areas such as cities. Our shoes will come in different style the whole family can enjoy. The...