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Shoemobile

UCBX, Marketing Research, Fall 2012

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Agenda• Background• Secondary Research• Objectives and Key Questions• Research Methodology• Findings and Interpretation• Recommendations and Next Steps

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Background andSecondary Research

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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

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Secondary Research• Shoe industry overview

o Total industry revenue is about $27Bo 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

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?

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Research Methodology and Sample Population

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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

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Sample PopulationTotal sample size: 1,200Sample size representation

Online Run Errands

Age28-40

200 200

Income$40K+

200 200

Women Work at SF

200 200

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Survey Population

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Survey: Population DataAge Population

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Survey Demographics

Income Distribution

36% : 50-75K

22% : more than 100K

17% : 75-100K

14% : 40-50K

11% : Less than 39K

Occupation Distribution

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Findings and Interpretations

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Findings: Interest in ShoemobileFindings Interpretations1. 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!

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Interest in Shoemobile continueFindings Interpretations2. 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

Interest in Shoemobile continueFindings Interpretations4. Place of Service

• 75% Longest break 12p - 1p• 61% Shop after work• Frequency: every 3 months• Respondents asked for home

service

• BUT <1% Shop for shoes at lunch• Consider DIFFERENT time-frame• NOT a daily/weekly service• Houses and special events as

secondary market

5. Price Setting

• Most bought: casual shoes• 74% spend <$100 on average and

56% wouldn't spend >$100

• Commuting/walking people• Need to keep price of a shoe to less

than $100

Additional Insight From Text BoxPositive Negative

"...If you can make it a positive and comfortable customer experience with a good selection, I imagine you will have a good number of repeat customers."

"...When I go shopping, I do it whenever time is convenient for me and not on schedule. If I will have an appointment with shoe-mobile, I will likely miss it."

"Interesting, if it will be convenient to try on and I won't feel obligated to buy it since the whole truck come to my location."

"I think it's pretty cool, but what if you change your mind and want to return the shoe? For example, if the shoe doesn't go with your outfit and you want to return?"

"I will definitely be spending more since the products come to me."

"Interesting concept, but may depend on the variety of brands and styles that would be carried."

Recommendations

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RecommendationsLocation: Secondary Market

• 39% of respondents want shoemobile near their home!

• Possible second location at Belmont

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Recommendations• Focus first on bringing in shoes that can be sold for less than

$100 a pair

• Do a “soft launch”

• Incentivise customer loyalty and recommendations

• Regard yourself as a niche market

• Have a return policy

• Offer diverse offering, keep your inventory well calibrated

• Consider ways to better meet the needs of “convenience shoppers”

• Consider offering to SF and within Bay Area markets

Conclusion: Next Steps• Proceed with Caution!• Perform additional research to obtain deeper

understanding of consumer segmentation• Test product/service mix with a "soft launch"

o Utilize and leverage social media outreach and data to create consumer awareness and obtain consumer feedback

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