final ib project

8/7/2019 final ib project

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PRODUCT PROFILE

FOOTWEAR:

FOOTSCAPE

Enabling you to thrive in life's highs & lows!!!



1. PRODUCT & DESCRIPTION

ootscape Heels consists of a range of adjustable footwear which combines

the elements of convenience, style and comfort - all into one shoe. Our

adjustable footwear is designed to enable stable and durable adjustable -

height capabilities in women's high heel footwear. Sim ultaneously, we have

engaged the services of a professional industrial design team for help to perfect

our technology and to assure the utmost quality for our customers.

We have come out with our product, keeping in mind the needs of the

consumers, and the result- a shoe having all advantages of high heels, just aswell as the comfort of flats. Footscape Heels is designed as a shoe with a highheel, which can be changed into a shoe with a low heel. No more extra pairs of shoes in your bag, no more trouble driving a car or walking stairs, no morepainful feet, no more knee and ankle damage For such a product to be a seriousalternative for regular heels it has to be mechanically and ergonomically sound,and moreover: it has to have allure!

The character of our product is in the heel shape. It has separate tips for bothpositions. While being used in one position, the other heel tip is kept out of sight in and opening in the sole. The shoe is being transformed with a simpleand quick movement: one just pulls the heel downwards to release it, after which it can be folded in or out as preferred. The adjustment of the heel positionautomatically changes the curvature of the sole to fit the altered shape of thefoot.

Every pair of Foots cape Heels has been designed with consumer¶s utmost

comfort in mind. This has been accomplished by designing each pair of shoes

with a unique last that maximizes comfort in both high and low heel positions.

Our technology has been designed with maximum attention and care to ensurin gstability, durability and safety. Locking mechanisms within the heel ensure that

the heel will remain in either its high or low heel position whenever adjustments

have been made to it. Additionally, a stainless steel rod runs through the length

of the heel, ensuring that, unlike other high heel shoes, the heel will not break.

F



Because of our unique design, the stowed portion of the heel is virtually

impossible to detect when walking or standing in the low heel position. No one

but you will know that it's there! When the shoe is raised off of the ground, the

portion of the heel that's stowed then becomes visible. Just like with any other

shoe, the rubber heel tips on both the high heel and low heel will wear downwith time. Because our high heel tip is a standard tip, it can be replaced by any

reputable shoe repair person.

Initially, our shoes have been designed with the professional working woman in

mind; we wanted to create styles that would readily complement various outfits.

That way, a woman can wear our shoes multiple times throughout the course of

a week to maximize the amount of time and benefits she can get from wearing a

shoe with adjustable-height heel capabilities . Thus, our product is a win-win

proposition. Our customers are sure to love it due to the mere novelty andfunctionality of the concept.

The steps to follow to adjust from high-to-low heel positions

Step 1

Secure one hand around the top of the heel, while the other hand pulls straight

down on the lower half of the heel to disengage it from its upright locked

position.Step 2

Push forward on the lower portion of the heel until it stops moving and is

stowed directly under the arch region of the shoe.

Step 3

Push straight backward on the tip of the stowed heel until it is recessed slightly

into the upper heel cavity and secured in its locked position.

Done!

Once the adjustment has been made from a high -to-low heel position, the upper

edge of the stowed heel should no longer be v isible. To restore the heel back

into its full high heel position, simply reverse the previous steps .



2. PRODUCT SEGMENTATION

Geographical

R ural, Semi urban and urban

Demographic

Age Group: Under 6 years, 6-16 years, 16-46 years, 46 and above.

Gender: Males and Females.

Income: Low (up to R s.15000p.a)

Middle (R s.15000 ± R s.30000)

High (R s.30000 ± R s.65000)

Elite (R s. 65000 and above)

Psychographic

Lifestyle: People who have a high standard of living and who wear heels in

their day to day life.

Attitude towards the product: People who are enthusiastic and energetic about

the idea of wearing high heels and want to be different.

Achievers: Successful, goal-oriented people who focus on career and favor

premium products that demonstrate success to their peers.

Experiencers: Young, enthusiastic, impulsive people who seek variety and

excitement and they spend a comparatively high proportion of income on

fashion, entertainment and socializing.



We have segmented the above mentioned groups because they are more likely

to be open to new concepts which redefine existing ways of lifestyle, like which

our product does.

3. PRODUCT TARGETING

Geographical

Urban areas of the country.

Demographic

Age Group: 16-46 years

Gender: Females

Currency: 1 Brazilian Real (BRL) = 27.33205 Indian Rupee (INR)

Income: High (R s.30000 ± R s.65000)

Elite (R s.65000 and above)

Psychographic

Lifestyle: We are targeting people who are related to the fashion and t he

business world and those whose work life demands wearing high heels.

Attitude towards product: We are targeting people who are willing to wear

high heels but would want a comfortable option of high heels.

Achievers: We are targeting people who purchase premium products that

demonstrates value and class

Experiencers: We are targeting young and enthusiastic people with high

income and purchasing power with a willingness to spend on fashion,

entertainment and socializing.



4. PRODUCT BENEFITS

Benefits include-

Very comfortable option.

Prevents injuries.

Convenient mechanism.

5. PRODUCT PRICING

We have decided to set our price using market skimming strategy because our

major strength lies in the fact that we have a first -mover advantage. This strategy

has been adopted in such a way as to ensure that it fulfils four of our company¶s

major objectives.

Survival;

Maximum current profits;

Maximum market share; and

Product quality leadership.

Taking all the factors into consideration,

The lowest price of the Foots cape Heels will be R s. 3500.

According to the design of our footwear our price ranges from R s. 3500 to

R s. 9500.

Our low heel tip is unique to our shoe and is designed to be self- replacing.

R eplacement low heel tips can be purchased for as low as R s. 50.

The product is very well worth the price because it is unique not only in itsconcept, but also due to the fact that our product is unmatched because of t he high

level of quality, style and convenience that it offers. Also, our product offers

excellent after-sales services so as to dispel any of the doubts in the minds of the

customers.



SWOT Analysis

t reng t hs

1. First mover advantage.

2. Matchless after-sales services.

eaknesses

1. Mindset of people.

2. High advertising and promotion

3.People losing the segment of the heel .

ppor tuni t ies

1. Improving the mechanism of adjustment of the heel .

2. To make the product available to the lower and the middle class .

hreat s

1. Competition.

2. Imitation.

W

O



SETTING UP OF MNC IN BR AZIL

THR OUGH STR ATEGIC ALLIANCE:

R eason for going through strategic alliance in mainly because of the huge

demand in Brazil.

Our concept is totally new, which will give us the competitive

advantages.

Brazil is fully a taped market of footwear; this is why I think strategic

alliance with the local players would be a best strategy.

WHY BR AZIL:

The Brazilian Footwear Industry is the 3rd biggest producer in the world More than eight thousand factories all over the Country

Employs 300 thousand direct people

12 States of the Country hosts shoe companies, located in footwear

clusters

meets completely the demand of domestic market

In the last four decades, Brazil has played a relevant role in the Footwear

History.

The largest country in Latin America is one of the most outstanding

manufacturers of leather articles, holding the third position in the rankingof the largest world producers.

Important participation in the share of women¶s shoes, which combine

quality and accessible prices.

The Brazilian Footwear Park presents over seven thousand industries,

which produce approximately 755 million pairs/year, 212 million being

destined to exports.

The large variety of raw material, machinery, and component suppliers,

allied to the products technology and innovation, makes the Brazilian

footwear sector one of the most important in the world.

There are over 300 component industries installed in Brazil, more than

400 companies specializing in tanning and leather finishing, processing

yearly over 300 million hides, and around a hundred machinery and

equipment factories.



POR TER S DIAMOND MODEL

Porter's diamond model suggests that there are inherent reasons why some

nations, and industries within nations, are more competitive than others on a

global scale. On the basis of four factors of porter¶s diamond model, we will

come to know that what are the different competitive advantages Brazil has

in the term of doing business in Brazil.

Factor Conditions:

The large variety of raw material, machinery, and component suppliers.

Allied to the products technology and innovation.

Demand condition:

Huge demand

One of the most outstanding manufacturers of leather articles, holding the

third position in the ranking of the largest world producers.

The Brazilian Footwear park presents over seven thousand industries,

which produce approximately 755 million pairs/year, 212 million being

destined to exports.



The United States is the principal buyer of Brazilian shoes, with 70% of

the exported total.

Firm strategy, structure and rivalry :

Modern concepts of production administration and manufacturemanagement, such as just in time, and other international quality

processes

Highly specialized industry in every kind of shoes: women¶s, men¶s, andchildren¶s, besides special shoes, such as orthopedic and work safetyshoes.

R elated and supported industries:

Around eight thousand footwear producers .



COUNTRY PROFILE- BRAZIL

Geography

Area: 8,511,965 sq. km. (3,290,000 sq. mi.); slightly smaller than the U.S.

Cities: Capital --Brasilia (pop. 2.5 million). Other cities--Sao Paulo (10.9

million), R io de Janeiro (6.1 million), Belo Horizonte (2.4 million), Salvador

(2.9 million), Fortaleza (2.4 million), Curitiba (1.8 million), R ecife (1.5

million), Porto Alegre (1.4 million).

Climate: Mostly tropical or semitropical with temperate zone in the south.

People

Nationality: Brazilian.

Population (2010 est.): 201 million.

Annual growth rate: 1.17%.

Ethnic groups: African, Portuguese, Italian, German, Spanish, Japanese,

Indigenous peoples, and people of Middle Eastern descent.

R eligion: R oman Catholic (74%).

Language: Portuguese.

Education: Literacy--88% of adult population.

Government

Type: Federative republic.

Independence: September 7, 1822.

Constitution: Promulgated October 5, 1988.

Economy

GDP (official exchange rate): $ 1.577 trillion.

GDP (purchasing power parity): $2.025 trillion.



Annual real growth (2010 est.): 7.1%.

Per capita GDP (official exchange rate): $8,240.

Per capita GDP (purchasing power parity): $10,600.

Natural resources: Iron ore, manganese, bauxite, nickel, uranium, gemstones,

oil, wood, and aluminum. Brazil has 14% of the world's renewable fresh water.

Agriculture (5.6% of GDP): P roducts--coffee, soybeans, sugarcane, cocoa, rice,

livestock, corn, oranges, cotton, wheat, and tobacco.

Industry (27.8% of GDP): Types--steel, commercial aircraft, chemicals,

petrochemicals, footwear, machinery, motors, vehicles, auto parts, consumer

durables, cement, and lumber.

Services (66.6% of GDP): Types--mail, telecommunications, banking, energy,

commerce, and computing.

PEOPLE AND HISTORYWith its estimated 201 million inhabitants, Brazil has the largest population in

Latin America and ranks fifth in the world. The majority of people live in the

south-central area, which includes the industrial cities of Sao Paulo, R io de

Janeiro, and Belo Horizonte. Brazil underwent rapid urban growth; by 2005,

81% of the total population was living in urban areas. This growth aids

economic development but also creates serious social, security, environmental,

and political problems for major cities.

Six major groups make up the Brazilian population: the Portuguese , who

colonized Brazil in the 16th century; Africans brought to Brazil as slaves;

various other European, Middle Eastern, and Japanese and other Asian

immigrant groups who settled in Brazil since the mid-19th century; and

indigenous peoples of Tupi and Gua rani language stock. Intermarriage between

the Portuguese and indigenous people or slaves was common. Although the

major European ethnic stock of Brazil was originally Portuguese, subsequent

waves of immigration contributed to a diverse ethnic and cultural heritage.

ECONOMY

President Lula and his economic team implemented prudent fiscal and monetary

policies which have been credited with helping shield Brazil from the worst of

the global financial crisis of 2008 and 2009. That said, Brazil's economy did n ot

escape the crisis unscathed. After posting growth rates of 5.7% in 2007 and



5.1% in 2008, Brazil¶s GDP dropped 0.2% in 2009. Several steps were taken by

the government to minimize the impact of the crisis, including injecting more

than U.S. $100 billion of additional liquidity into the economy, providing tax

cuts to manufacturers and consumers, and reducing Central Bank interest rates.

Brazil emerged from the global financial crisis in 2009 and economic growth is

estimated to reach 7.1% in 2010. A more s ustainable growth level, in the range

of 4.5%, is predicted for 2011. Brazil is now a net creditor nation, and the 2008 -

2009 financial crisis notwithstanding, has in recent years experienced sustained

growth, strong exports, healthy external accounts, mode rate inflation,

decreasing unemployment, and reductions in the debt -to-GDP ratio. Brazil

holds investment grade status from the major rating agencies.

Significant challenges still remain in the Brazilian economy. The total tax

burden is high, income distribution remains skewed, and the private business

community complains of burdensome regulation. Annual interest rates for

consumers (on credit cards, for example) can be as high as 150%.

.

Trade Policy

President Lula has made economic growth and poverty alleviation top priorities.

Export promotion is a main component in plans to generate growth and reduce

what is seen as a vulnerability to international financial market fluctuations. To

increase exports, the government is seeking access to foreign markets throughtrade negotiations and increased export promotion as well as government

financing for exports.

Brazil has been a leading player in the World Trade Organization¶s Doha R ound

negotiations and continues to seek to bring that effort to successful con clusion.

To further increase its international profile (both economically and politically),

the Lula administration is also seeking expanded trade ties with developing

countries, as well as a strengthening of the Mercosul (Mercosur in Spanish)

customs union with Uruguay, Paraguay, and Argentina. In 2004, Mercosulconcluded free trade agreements with Colombia, Ecuador, Venezuela, and Peru,

adding to its existing agreements with Chile and Bolivia to establish a

commercial base for the newly-launched South American Community of

Nations. In 2008 Mercosul concluded a free trade arrangement with Israel, and

another arrangement with Egypt was signed in 2010. Mercosul is pursuing free

trade negotiations with Mexico and Canada and resumed trade negotiations with



the EU. The trade bloc also plans to launch trilateral free trade negotiations with

India and South Africa, building on partial trade liberalization agreements

concluded with these countries in 2004. In July 2006, Venezuela officially

joined the Mercosul trade bloc; its full membership is pending ratification by

the Paraguayan congress. China has increased its importance as an export

market for Brazilian soy, iron ore, and steel, becoming one of Brazil's principal

trading partners and a potential source of inve stment.

Other Aspects

Brazil has one of the most advanced industrial sectors in Latin America.

Accounting for roughly one-third of the GDP,B

razil's diverse industries includeautomobiles and parts, machinery and equipment, textiles, shoes, cement,

computers, aircraft, and consumer durables. Brazil continues to be a major

world supplier of commodities and natural resources, with significant operations

in lumber, iron ore, tin, other minerals, and petrochemicals. Brazil has a diverse

and sophisticated services industry as well, including developed

telecommunications, banking, energy, commerce, and computing sectors. The

financial sector is secure and provides local firms with a wide range of financial

products, yet interest rates remain among the highest i n the world. The largest

financial firms are Brazilian (and the two largest banks are government -owned),

but U.S. and other foreign firms have an important share of the market.



A

PROJECT REPORT

FOR

INTERNATIONAL BUSINESS

COMPANY:FOOTSCAPE

PRODUCT:FOOTWEAR

COUNTRY:BRAZIL

SUBMITTED BY

MANISH DALMIA

REG.NO.0921315

II SEC-M

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