Distribution Strategy for Rusty Lopez

Distribution Program of

Rusty Lopez’s Men’s Leather Shoes in Sweden

INTRODUCTION

This section initially explained the reasons for choosing Sweden as the target country to export Rusty Lopez Shoes. Historical demand for men’s leather shoes in Sweden from 2011 to 2015 was analyzed and demand forecasted for the next five years. The market for men’s leather shoes in Sweden was then examined by identifying all players in the shoe industry, tabulating each company’s 2015 total sales and average price per pair. A more thorough study was made on the Top 2 players (Vagabond and Reebok) product, price, distribution, and promotion strategies. From the Top 2 players’ game plans, our group identified our target market and chose a positioning which could give Rusty Lopez Company a strong market position. We also developed a tagline to make the brand name stick to the consumers’ minds. Taking into consideration the opportunities we saw in the Swedish market and the strengths and weaknesses of Rusty Lopez Company, the group set a market share objectives for the next 5 years and translated these into peso and sales objectives.

TARGET COUNTRY

Sweden is the country that we chose to export products from Rusty Lopez. There are four main trends continued to shape the performance of apparel and footwear specialist retailers in 2015. First, economic landscape in Sweden was improving, lingering uncertainty and skepticism remained, resulting in increasingly price-sensitive consumers seeking economy-positioned alternatives. Second, Swedish consumers are also very conscious of quality, and in order to balance the aspiration for higher quality with price-sensitivity, the increasingly frequent sales periods gained significance. Many Swedish consumers purchase a large proportion of their clothing during the annual winter and summer sales, when they often opt for more premium alternatives which are heavily discounted. Recent new events in Sweden, such as Black Friday, further fuelled...