The paper "Innovative Product in Extreme Footcare" is a brilliant example of a speech or presentation on marketing. I had been an avid admirer of the company you created, FootSmart, in your commitment and quest for comfort in shoes. One shares the same conviction in your founding philosophy that “A great feeling body starts with comfortable and healthy feet” [Cri11]. The need to discover an innovative product in Extreme Footcare came from a family member’s need for comfortable and personalized shoes as diabetes afflicted his lower limbs. It is the same impetus that one’s pursuit initiated this proposal to offer the Extreme Footcare to your specialty store. I hereby proffer pertinent details of the proposed product for your perusal.
Background and Purpose
The new product, Extreme Footcare, has been innovatively designed to address the footwear needs of a special and distinct group of clients requiring intricate care in terms of shoes. Extreme Footcare represents custom-tailored shoes for those who are physically disabled (especially for diabetic patients, those who were recently amputated with one leg, and those under podiatric treatments) for all age ranges. The objective of the company is to gain a steady but increasing percentage in the market share for specialty shoes, particularly for clients with foot problems. By distributing the product through your store, known as a pain relief shoe store, a wider range of clientele could avail of the product, as projected to be extremely beneficial to their podiatric needs.
One hereby proposed that an initial 1000 pairs of Extreme Footcare shoes in different styles and sized be distributed through FootSmart starting next month, November. As a retail merchandiser known to market specialty shoes, a proposed space for Extreme Footcare would likewise contain brochures, additional promotional items, and point-of-sale advertisements, to enable enhance customer awareness and determine if other types of shoes needed to be customized for other requirements, aside from those that are on display. The selling point would be: “foot care for your special feet’s unique needs”. The price of the shoes would be slightly higher than conventional shoes due to the custom made provision and the materials to be used to cater to the needs of the patients. One proposes that your store would mark-up as much as 15% – 20% of my price.
The market survey on the statistics facing the shoe industry reveals that “of the 1.97 billion pair of shoes and other footwear sold in the U.S. in 2003, $22.6 million in products were from specialty stores” [The11]. Following this trend, of the $9 billion shoes distributed by independent retailers in 2008, $103 comes from specialty shoes, making it a lucrative and potentially financially rewarding business. As we both have acknowledged a valid and specific target market, it is one’s personal contention that the needs of the target market primarily determine the nature of the marketing mix components and strategies to be applied. As emphasized by McCarthy, “the problem, in brief, is to satisfy our target customers with the right product, available in the right place, promoted in the right way, and available at the right price” (McCarthy, 1975, 86).
With an initial budget of $500,000 to be utilized for the marketing mix elements, an initial volume of 10,000 pairs is projected to be sold in the first three months of operations. The prices of the products depending on the materials, style, sizes and customer’s specifications need to be reviewed and adjusted in terms of competitors’ prices and response. A market share of 10% is initially targeted within the first year of operation.
For your specialty store, of the 10,000 projected to be sold, 1000 pairs are proposed to be allocated to two of your stores, the FootSmart store in Memphis, and the Benchmark Store in Norcross. Assuming an average price of $100 per pair, an average mark up of $20 would give you $20,000 per month for 1000 pairs sold.
After reviewing the details of the product proposal, I am hereby respectfully seeking your authorization to approve the distribution of a batch of 1000 Extreme Footwear shoes each to two of your retail outlet: FootSmart in Memphis and Benchmark Store in Norcross to start marketing the product. I would be forwarding a sales contract that would forge our agreement, should the contents of this product proposal be amenable to you.
I am hereby looking forward to hearing from you very soon. Should you have further queries on the product proposal, I could be reached in any of the following numbers: or through my email address.