Description
The US shoe store industry includes about 28,000 stores with combined annual revenue of about $27 billion. Major companies include Payless ShoeSource, Brown Shoe Company (which owns Famous Footwear and Naturalizer), Foot Locker, and DSW.
1
Shoemobile
UCBX, Marketing Research, Fall 2012
Agenda
• Background
• Secondary Research
• Objectives and Key Questions
• Research Methodology
• Findings and Interpretation
• Recommendations and Next Steps
3
4
Background and
Secondary Research
Background
• Introduce new shoe shopping concept
• Reach Downtown SF, work/living place
• Provide variety of shoe types
• Communicate schedule via social media
• Preview inventory online
5
Secondary Research
• Shoe industry overview
o Total industry revenue is about $27B
o Top 50 companies holds 75% of revenue
• Largest segment by far of this industry is
E-commerce
• New trend: pop up retail, mobile fashion
trucks
6
Objectives Key Questions
Demand for Product
and Service
Would the shoemobile concept be
accepted?
Competitive Analysis Who are the competitors?
Segmentation What are customer segments?
Place for service Where should the truck be located?
Price setting What price range would be reasonable,
competitive, and sustainable?
8
Research Methodology and
Sample Population
Research Methodology
• Mix of qualitative and quantitative analysis
o Frequency, location, behavior, thought
process, and demographic
o Included text box to gain richer data
• Online survey
9
Sample Population
Total sample size: 1,200
Sample size representation
Online Run Errands
Age
28-40
200 200
Income
$40K+
200
200
Women
Work at SF
200
200
10
11
Survey Population
Survey: Population Data
Age Population
12
Survey Demographics
13
Income Distribution
36% : 50-75K
22% : more than 100K
17% : 75-100K
14% : 40-50K
11% : Less than 39K
Occupation Distribution
14
Findings and Interpretations
Findings: Interest in Shoemobile
Findings Interpretations
1. Demand for service
• Respondents will not replace their
shopping
• Additional customized service
• Top 3 factors where they shop
• Choice 36%
• Price 33%
• Convenience 28%
• Interpretation:
• Obstacle
• Delicate aspect
• Truck Advantage
• Most important purchase factor
• 75% Return-policy
• Interpretation
• Delicate aspect
• Majority of women favors
"Shoemobile" concept
• 25% of respondent voice concerns
• Like the idea, but doubtful about
service and changes SO proceed
with caution!
15
Interest in Shoemobile continue
Findings Interpretations
2. Competitive Analysis
• Only 28% buy shoes online
• Online competition
• Convenience main advantage
• Try-on main disadvantage
• Mention to reviews
• Privacy and no time constraints
• LITTLE online competition
• Competitive advantage
• No shipping time
• Advantage
Advantage on stores
• Obstacle
3. Segmentation
• Age & Income do not influence
price
• Outside SF more price conscious
• Shoe-shopping is very subjective
• Obstacle
16
Interest in Shoemobile continue
Findings Interpretations
4. Place of Service
• 75% Longest break 12p - 1p
• 61% Shop after work
• Frequency: every 3 months
• Respondents asked for home
service
• BUT
The US shoe store industry includes about 28,000 stores with combined annual revenue of about $27 billion. Major companies include Payless ShoeSource, Brown Shoe Company (which owns Famous Footwear and Naturalizer), Foot Locker, and DSW.
1
Shoemobile
UCBX, Marketing Research, Fall 2012
Agenda
• Background
• Secondary Research
• Objectives and Key Questions
• Research Methodology
• Findings and Interpretation
• Recommendations and Next Steps
3
4
Background and
Secondary Research
Background
• Introduce new shoe shopping concept
• Reach Downtown SF, work/living place
• Provide variety of shoe types
• Communicate schedule via social media
• Preview inventory online
5
Secondary Research
• Shoe industry overview
o Total industry revenue is about $27B
o Top 50 companies holds 75% of revenue
• Largest segment by far of this industry is
E-commerce
• New trend: pop up retail, mobile fashion
trucks
6
Objectives Key Questions
Demand for Product
and Service
Would the shoemobile concept be
accepted?
Competitive Analysis Who are the competitors?
Segmentation What are customer segments?
Place for service Where should the truck be located?
Price setting What price range would be reasonable,
competitive, and sustainable?
8
Research Methodology and
Sample Population
Research Methodology
• Mix of qualitative and quantitative analysis
o Frequency, location, behavior, thought
process, and demographic
o Included text box to gain richer data
• Online survey
9
Sample Population
Total sample size: 1,200
Sample size representation
Online Run Errands
Age
28-40
200 200
Income
$40K+
200
200
Women
Work at SF
200
200
10
11
Survey Population
Survey: Population Data
Age Population
12
Survey Demographics
13
Income Distribution
36% : 50-75K
22% : more than 100K
17% : 75-100K
14% : 40-50K
11% : Less than 39K
Occupation Distribution
14
Findings and Interpretations
Findings: Interest in Shoemobile
Findings Interpretations
1. Demand for service
• Respondents will not replace their
shopping
• Additional customized service
• Top 3 factors where they shop
• Choice 36%
• Price 33%
• Convenience 28%
• Interpretation:
• Obstacle
• Delicate aspect
• Truck Advantage
• Most important purchase factor
• 75% Return-policy
• Interpretation
• Delicate aspect
• Majority of women favors
"Shoemobile" concept
• 25% of respondent voice concerns
• Like the idea, but doubtful about
service and changes SO proceed
with caution!
15
Interest in Shoemobile continue
Findings Interpretations
2. Competitive Analysis
• Only 28% buy shoes online
• Online competition
• Convenience main advantage
• Try-on main disadvantage
• Mention to reviews
• Privacy and no time constraints
• LITTLE online competition
• Competitive advantage
• No shipping time
• Advantage
Advantage on stores
• Obstacle
3. Segmentation
• Age & Income do not influence
price
• Outside SF more price conscious
• Shoe-shopping is very subjective
• Obstacle
16
Interest in Shoemobile continue
Findings Interpretations
4. Place of Service
• 75% Longest break 12p - 1p
• 61% Shop after work
• Frequency: every 3 months
• Respondents asked for home
service
• BUT