The Aussie Soles Company is an orthotic footwear company operating and successfully distributing its quality products in the markets of Australia. The company is US-based and has been grabbing the inclination of customers by its unique and useful footwear that is medically recommended by orthopedic specialists. The footwear brand is liked and preferred by a client base of varying age groups and has medical provisions in its products that make the product trustable and comfortable to be worn. The brand began with its retail niche given the extent of usability and demand of the medically recommended footwear in the region. The market survey for the trends and demands reveals the brand’s efforts to earn a long-term client base built upon reliability and company profitability.
Aussie Soles Company has been backed and recognized by the American Board of orthopedic specialists in their product manufacture of orthotic footwear encompassing the demands of different types of customers with different demographical backgrounds. The report enlightens and discusses the business plan of the company providing an account of the market analysis made, the trend and shifts in customer tendencies, and the targeting measures of the company. It also discusses the strategies of the brand to acquire business to customer relationship and the financial details of the company that provides grounds for the quality service providing by the company.
Table of Contents
Executive Summary 1
Current Market Situation 3
Market Description 3
Product Review 3
Competitive Reviews 4
Channels and Logistics Review 4
SWOT Analysis 5
- Strength 5
1.1 Innovative system 5
1.2 Operative Plans 5
1.3 Control of Pricing 5
1.4 Authority 5
- Weaknesses 5
2.1 Lack of Awareness 5
2.2 Technological factors 6
2.3 Advertisement 6
- Opportunities 6
3.1 Competitive advantage 6
3.2 Expand the size 6
3.3 External Pressure 6
- Threats 6
4.1 Severe Competition 6
4.2 Life Cycle of a product 6
Aims and Objectives 6
Marketing Strategy 7
Product Strategy 7
Pricing Strategy 7
Distribution Strategy 8
Marketing Communications Strategy 8
Marketing Research 8
Marketing Organization 8
Quarter Budget of 1 year Sales Revenue 9
Quarter Expense Budget of 1 Year 10
Current Market Situation
A big share of the global economic industry is held by the shoe manufacturers and footwear industry where comfortable, style-oriented, and convenient shoes are manufactured and distributed in the markets. Not only the disorders and diseases related to feet, the overall recommendation of the podiatrists to wear shoes with the medical provisions to keep the feet aligned, relaxed, and correctly positioned during waling or any other exercise also makes the demands of such shoes higher (Hall, Parker, & Williams, 2020). The athletes and sportspersons who undergo strenuous activities and feet intervened actions also consume such shoes which are fitness-wise recommended by the specialists. In addition to the adults and athletes concerned with the feet’ health and well-being, the brand also considers the demands of such shoes in kids, teens, and even infants having issues with feet alignment and other ailments.
In the light of these conditions and trends of the market, the Aussie Soles Company excels the niche of workability by using orthopedic technology in manufacturing and distributing footwear that matches the recommendations of the specialists and the demands of the market coinciding with the consumers’ preferences. The customer inclination and reliability towards the brand are notably the most significant value-added for the company. The brand contently manufactures and distributes the footwear products that fit into the requisites of the demands of the customers for different uses and various styles comprising the medical amenities in the same product. The brand deals in the manufacturing and distribution of thongs, flip flops, sandals, and sneakers with features that provide relief from medical ailments such as sprains and injuries, give alignment to the feet keeping them in a favorable position and shape and assist in mobility. Not only the medical and feet health-related details of the products, but the brand also brings innovation and styles in all the designs manufactured and launched to give variety and options of choice to the customers matching with their liking and interests.
The overall analysis of the market conditions and tendencies towards the product niche of the company provides the foundation of the basic business plan for the brand and formulate the merchandising strategies to excel in terms of customer loyalty and brand positioning. Out of the wide range of products offered by the brand, the flip flops or thongs under the product line StarFish launched by Aussie Soles is the most purchased and liked manufacturing of the company. The product caught the customer’s tendency and gets in the use of formal and casual nature coming with a variety of styles and phenomenal medical features to support mobility.
As discussed, the brand introduced two streams of footwear named the StarFish that are medically and innovatively manufactured flip flops and the Air Walkers that are sneakers with the same features. The StarFish is the most sold and liked product by the Aussie Soles Brand. The flip flops are comfortable, easy to wear, medically upheld, innovative, and stylish making it a consumer choice and a distinct wearable product. The customer reviews and comments after the purchase and use of the products by the brand reveal that the shoes were durable, comfortable, easily available for purchase, recommendable for long-distance walking, and even carrying for travel. The product description explains the range of colors and styles available for the StarFish flip flops sticking with the main idea of utilizing orthopedic technology in the manufacturing of the products which is most liked by the consumers. The thongs have a single toe divider which is very soft and easy to wear.
The StarFish flip flops come with the unique features of flexibility, comfortability, and softness making the footwear easy and relaxing. The special characteristic of these thongs is the medical provider of middle arch support that gives the favorable raising position to the foot to ensure its alignment and comfortable positioning. The thongs have a deep heel to provide a sense of relaxation and foot pain relief to the wearer resulting from issues such as plantar fasciitis and injuries (Anggriani, Kristiyanto, & Rahardjo, 2020). There is a bar to avoid the tarsal coalition of the foot bones. The flip flops have features that also maintain stability avoiding the sweating of the feet that may raise the discomfort of the feet by slipping off as a consequence of perspiration. It also minimizes and prevents the stinking of feet by controlling the sweating of feet.
The material used for manufacturing the flip flops is anti-bacterial polymer foam which also restrains from slipping and shocks of mobility. The product is cruelty-free and does not intervene in any animal product in the manufacturing process. The Starfish flip flops are light in weight, comfortable, and durable footwear best for casual usage and relieving from pain and discomfort caused by medical ailments. The product is affordable and economical with an article price of £ 30 and is available at the brand’s E-stores and portals for online ordering and doorstep delivery. The guaranteed duration for the product is one year and is recommended for everyday usage and even in waterside activities like boarding, beach walking, and fishing.
The impression of the product on the consumers and the client base established by the brand gives an account of the competitive advantage that the StarFish flip flops by the Aussie Soles have over the standard market slides and flip flops. According to the consumer perceptions, the StarFish thongs are the healthier version of wearing causal thongs as compared to the standard thongs available in the markets. The shoes are more durable, light in weight, comfortable, and come in a variety of styles and colors denoting the use of innovative technologies in addition to orthopedic technology. The StarFish flip flops are very relaxing and can be used for multiple purposes dealing with the medical issues of the feet alongside.
The shoes are designed such that they make the position of the foot aligned while wearing them and the discomfort caused by various illnesses can be addressed and relieved (Costa, et al., 2020). The brand has intervened the medicated provisions in the shoes to allow safe and comfortable wearing, either in homes or anywhere out regardless of the time duration. Comparing to the standard flip flops available in the market that are completely flat and have no relief for the discomforted feet, the StarFish flip flops by the Aussie Soles company have a raised arch with recessed heel depth to provide a sense of relaxation and comfort.
Channels and Logistics Review
The Aussie Soles Company has made effective strategies to connect with their client base through a direct business to customer relationship ensuring easy access of the products and purchasing ease to obtain satisfaction and inclination. By building the customer reliability towards the brand through several channelization and logistical approaches, the brand ensures the effective distribution of its products to the consumers in the markets. The company retails its products through various sale channels such as at their in-house retail outlets, pharmacies, superstars, hypermarkets, and specialty stores.
Options of online purchasing through the website order placing and delivery at the doorsteps are also offered by the company. Given the era of digitalization, this option is very convenient for the customers. The company also has a plan to spread the awareness-based affiliative programs with regions across the host area and spreading the brand awareness in spheres of colleges to emphasize the usage in educational institutions. The company s into creating value among the consumers through the health seminars to throw light on the effective uses of orthotic shoes in daily lives and has the edge of the medical recommendation by the American Podiatrist community.
The SWOT analysis for the company is concerned with representing such type of structure for the company which changes the internal as well as an external system of the company on a sustained level. When the condition of the business is effective on the other hand the company sells more products in return earns lots of revenue and profitability. It is the rule of business that ups and downs are part of the business (Phadermrod, Crowder, & Wills, 2019). The reputation of Sonic Marketing was effective and it sells its products more than its competitor, based on the current situation will make an effective plan which increases the reputation of the company along with increase the number of customers and also increase the sale of products. Additionally, the SWOT analysis represents the company about its strength, weakness, opportunities, and threats, based on SWOT analysis companies are well aware of the stronger things about the company which provides help to expand the size of a company. In this way, companies after knowing about the weakness of the company will make an effective system with the help of planning and strategies. The strength and weaknesses inform the company about the internal structure of the company while on the other hand the opportunities and threats are informing the company about competitors’ pressure and other external pressure. The SWOT analysis of sonic marketing are as follows:
1.1 Innovative system
The aim of Sonic Company about to mold the structure of the company into an operative system and also brought innovation in the products of the Organization.
1.2 Operative Plans
Operative plans will be lead the Sonic Company on a productive system on which the entire risk of the company is minimized against with maximization of profits.
1.3 Control of Pricing
The power about determines the prices of the Products and services are in the hands of management, stockholders, and also in the hands of Owners of the companies. Innovation of the company depends on the price of the commodities that’s why while deciding about the prices gives preference to the purchasing power of customers.
Management has complete authority to run the internal as well as external systems of companies (Vlados, 2019).
2.1 Lack of Awareness
The weakness which would arise in Sonic Company in the past or the future lack of awareness. Every business is based on the systems of B2B and Business to the customer, so while making products whether it is in the form of formal and Informal but Sonic Company has complete knowledge about competitors and customers.
2.2 Technological factors
One of the biggest weaknesses of Sonic Company is the use of technological inventions. As the growth of population is increasing day by day the demand for footwear and the other products of Sonic Marketing is increasing day by day but due to traditional methods of manufacturing Sonic is unable to competitor its competitors.
The advertisement process of a marketing company must be strong because with the help of advertisement companies inform customers about products and services. Moreover, the channels of advertisement should also be operative.
Opportunities refer to provide such type of environment which minimize the risk and external pressure which come from the competitors.
3.1 Competitive advantage
The sonic company adopted such types of techniques that minimize the cost of products along with maximizing the profit of Sonic (Abdel-Basset, Mohamed, & Smarandache, 2018).
3.2 Expand the size
Sonic has a clear aim to deal effectively to increase the reputation of the company after knowing and have a piece of complete knowledge about competitors Sonic expands the size of its market.
3.3 External Pressure
Sonics should minimize the pressure of external forces by producing qualitative and quantitative things. When it producing such products the external forces in form of competitors are not affected the internal system of the company.
The threats which are face by Sonic Company receive from the external environment, it just not affect the external rather than imposed negative impact on the internal system as well.
4.1 Severe Competition
Severe competition among sonic and its competitors is providing guidelines about maintaining the system effectively and in a state of balance.
4.2 Life Cycle of a product
The life cycle of a product is concerned with production to the sale during this phase the problem which arises is price determination, it should be effective and according to meet with demographics.
Aims and Objectives
The aim and objectives of Sonic Marketing are concerned to bring change and innovation in the marketing structure and also provide effective services of products and services which are best in all aspects. The main objective of the report depends on the brought effective system which increases the sale of Sonic and also increases the profitability of the company. Moreover, Sonic also focuses on improving the systems of business to business and also increase the business to customers relationship. In this regard, Sonic makes effective standards with the help of planning and strategies to improve the current situation of Sonic and also give core concentration on the standards which provide help to maintain the standards in a long term. Furthermore, Sonic makes effective standards that lead the company to mold its actual condition into a productive system by improving the products and services of Sonic. In this regard, Sonic gives special consideration to the customer because customers are previous about to run any type of business on a reputed level (Peters, Kolip, & Schäfers, 2020).
The marketing strategies of Aussie Soles for the product “The Starfish” are based on the positioning of the product differentiation while the target customers for the product will be targeting the upper-income consumers which need the soles which provide them comfort, health, and wellness aspect. While the secondary target for the product will be the kids, teens, and well-educated adults with active lifestyles. The company is based on the business to the customer as it will provide direct distribution of products to the customers.
By using the positioning strategies, the company will create an image for the product based on the audience for the next year. It outlines the marketing concepts which will outlines what decisions the company will adapt for the market, its product, and services. The product “The Starfish” in the Aussie Soles will be positioned according to the target market and to fulfill their needs. The company will focus on providing better quality products than the competitor along with the innovation of adding the health and wellbeing aspect, which makes the product unique to other products (Indeed, 2021).
The company will utilize the product strategies in defining the strategic vision of the company’s product by asserting where the product will go, and how will it get there. The company will use the segmentation product strategy for promoting the product as it helps target a larger audience by segmenting them based on various factors such as age, location, and income. The product will not only target the elderly and people who want comfortable soles but also assert the product for everyone. The company should organize the target customers based on demographic geographical and behavioral to break down the target audience into more manageable groups.
The company should utilize the price skimming strategy by introducing the product at a high price and then lower the price gradually according to the marketing competition. As the company’s product is unique so it is beneficial to first capture the market by representing its brand and later lower its prices with the increase in the competition. The product “The Starfish” will be sold at the starting price of $34.95 per set of soles with a 2 month of warranty. Later on, with the increase in the competition for the product the company can decrease the price according to the market’s demand. The company can also utilize the market penetration strategy which is the opposite of the price skimming strategy as in it the company will start its product with low prices and then later on as its demand for the product increases the company can raise the prices for the project. This strategy will be the most suitable for the company as it will help it to create a brand for the product by undercutting its competitors and then slowly increase the price. It is crucial to produce a loyal customer base for the product before increasing the prices (Bartolacci, 2019).
There are three strategies the company can utilize for the distribution of the product such as intensive, extensive, and selective. The incentive distribution strategy is based on mass distribution of the product which is intended to ensure the availability of the product widely. The product is made available in large outlets hence an excellent way to increase product awareness. The second strategy the company can adopt is an extensive distribution strategy as it helps target as many consumers as possible for achieving the market penetration for the product. It helps increase the awareness of a certain product (Sonntag, 2021). The third strategy is a selective distribution which is the most suitable for the business as the product “The Starfish” of the Aussie Soles is well recognized in the market as being around for 17 years in the market. The selective distribution will allow the company to open a handful of outlets for the product and represent it as a brand. It may seem that it will lower the sales opportunity for the product but it will provide the product with the best-performing outlets. This will allow the company to represent its product as luxury products and provide the customer with a more personalized shopping experience (Jenkins, 2021).
Marketing Communications Strategy
The company will utilize social media marketing to promote the company’s product while the focus of the advertisement will be to enforce the brand name for the product in the market. The company can hire an advertising agency that will handle the advertisement of the product by choosing the appropriate media and timing for the introduction of the product as a brand. The advertisement will be focused on creating and maintaining brand awareness and also communicate the brand message with the target audience. The company will also create public relations which will help in spreading the product brand presence. In order to achieve a greater audience, the product will be advertised on the company’s official website and the purchase of the product will also be available (Collins, 2019).
Using the R&D department the company will identify new and unique features of the product considering the customer’s needs and modern trends. The research will be based on customer feedback in providing them with greater value. Various tests and surveys will help in developing the brand name for the product. The analysis of the target market will allow the business to propel suitable strategies for the product and achieving customer satisfaction. The R&D department will help in conducting customer value and satisfaction studies to understand the market reaction to the company’s product and what action it should take to achieve the maximum output for its effort in achieving customer satisfaction and establishing the brand.
The CEO of the company is Craig Taplin who holds all the decision-making responsibilities for the marketing activities while the company Aussie Soles has hired worldwide marketing campaigns for the national sales, trade and provides the summer sales promotion for products. The company’s regional sales manager is Simon Andrew who oversees all the sales in the company. By creating the marketing organizational structure, the company can focus on adapting the strategic planning and gain a proper marketing environment.
Figure 1 Company Hierarchy
Quarter Budget of 1 year Sales Revenue
Description Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Sales unit per quarter( 1 pair of shoes is equal to 34.95$ $40,000
$ 49,000 $ 65,000 $72,000 $226,000
Sale price per shoe 34.95 36.5 36.5 34.50 142.45
Sales revenue $1,398,000 $1788,500 $2372,500 $2,484,000 $32,193,700
The estimated 1-year sales revenue budget for Sonic Marketing is showed in the above table. The sale revenue which is charged against each pair of shoes is given into four quarters. The authorities with the help of stakeholders and lower authorities will obtain the sale revenue of the first-year plan (McNichol & Waxman, 2017). Additionally, it showed $1,398,000 in sales revenue at the first year of sale and in the second quarter, it seems to increase, in this way revenue of sonic marketing depends on the sale price of each shoe.
Quarter Expense Budget of 1 Year
Details Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Sales Commission $2,000 $2,000 $3,000 $4,000 $12,000
Transportation $4,000 $3,000 $5000 $8,000 $20,000
Total variable expenses $6,000 $5,000 $8,000 $12,000 $31,000
Salaries Expense $40,000 $40,000 $40,000 $40,000 $160,000
Administrative Expenses $35,000 $35,000 $35,000 $35,000 $140,000
Marketing Expense $5000 $5000 $5000 $5000 $20,000
Insurance Expense $8,000 $8,000 $8,000 $8,000 $32,000
Depreciation Expense $5,000 $5,000 $5,000 $5,000 $20,000
Total Fixed expenses $98,000 $98,000 $98,000 $98,000 $392,000
Total expenses $104,000 $103,000 $106,000 $110,000 $423,000
The Quarter Expense Budget of Sonic for First-year showed different expenses which consist of variable and fixed expenses. From variable expenses subtracting the number of fixed expenses of Sonic marketing obtained the number of total expenses. In the first quarter, the expenses are $104,000 in the second quarter the amount is decreases with the difference of 1000 dollars, in this way, at the second quarter the amount is increased with $ 106,000.