GlosGardThe best your shoes can get

Case study 5Elke WambacqMBALondon School of Business & Finance

1. Summary 2. Market situation3. GlosGard: a new product4. Environmental analysis & trends5. SWOT analysis6. Market differential advantage and positioning strategy7. Marketing mix & objectives8. References

Marketing plan

● Gale inc. is a parent company of Gale company

● Ryan Keane is brand manager● Annual revenues of € 150 million and gross

profits of € 30 million ● Product: shoe polish (liquid and wax)

Summary

Market situation (1) ● Market leader liquid “ShuShyne”:

○ Lind Company○ Packaged in a plastic bottle container with a sponge applicator○ Easy to use

● Market leader wax polish “WaxOne”:○ Ward Company○ Superb shine, guard against penetration inside the shoe by rain, snow

and other liquids. Repairs deep scratches.○ Tedious, tiring job to use

Market situation (2)Costs of production & distribution of WaxOne and ShuShyne

Cost production & distribution p/u

Retail price p/u Margin retailers p/u

€ 1.20 € 1.50 € 0.50

Market situation (3)Total sales volume, revenue and profit

Total sales volume Revenue Profit

ShuShyne 32 million units € 48 million € 9.6 million

WaxOne 16 million units € 24 million € 4.1 million

GlosGard: a new product!● Synthetic liquid wax● Just spray and let it dry● The best of wax and

liquid in one● Superb shine

Environmental analysisPolitical None

Economic 2 competitors in the major market

Technological -New kind of shoe polish combining liquid and wax.-Ease of use and very fast.

Legal -Health risk-Transport (ADR) and stockage-Regulations for export

Environmental -Recyclable non-wasteful package-Toxic ingredients-CFS gasses (spray)

Social -Shiny and clean shoes represent a decent status-Shoes will last longer

Trends in shoe shine● Fragrance is a vital ingredient in home care

products to mask the scents of active chemical ingredients

● Product innovation● Moving to lower priced segments● Private labels are a potential in a weakening

economy

SWOT GlosGardS

● Combines wax and liquid in one● Easy to use● Dries quickly● Superb shine● Protects against deep scratches● 10% reduction for every 9 million units● Independent of the colour of the shoes

W

● Unknown product● Environmental risk

O● Competitors never marketed their product

aggressively ● Competitors have a limitation of colours● No innovation for the past years● No mass advertising or trade marketing

support for retailers

T● Market leader ShuSyne● Cheap shoes on the market not asking for

sustainable care● Price

Differential advantage/positioning strategy

● Technological substitute● Liquid and wax in one● Goal: 50% share of the whole market and

profitability in 5 years● Strategy: mass advertising and trade

marketing support

Marketing mix● Product● Place● Price● Promotion

Product: segmentationGlosGard Premium● Ultimate care for your shoes● All the benefits of shoe wax with the ease of liquid● For everyday use at homeGlosGard on the go● Clean your shoes when you travel● Fast, easy and small package● Premium qualityWhite label: cheaper deals with wholesalers & retailers

Places to buy● Supermarkets● Travelshops● Shopping centers● E-commerce with blogs and testimonials● Airport, train station● Shoe stores ● Out of town locations

Price setting● Introduction: lower price to gain market

share● Discounts to wholesalers and retailers● GlosGard on the go: more expensive p/u

compared to GlosGard Premium (small package for travel or fast rescue underway)

Promotion● Package:

○ Fancy○ Looking professional and modern○ QR code to site with promotions and interesting news

● Placement in stores○ Demo’s and possibility to try before you buy

● Partnerships with shoe brands○ Fashion ideas ○ “Let your shoes last longer”

● Social media:○ Testimonials of customers○ Blogs○ Engaging fans by combining it with lifestyle○ Promotions: competitions and vouchers when you like○ Polls to innovate the product

● Advertising in fashion/women magazines

References● Euromonitor International (http://www.

euromonitor.com/polishes )● Jobber, D., Ellis-chadwick, F. (2013)

Principles and practice of marketing, McGraw Hill Education