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Executive Summary Riding a bike in cities of Nepal gives goose bumps as it is filled with puddles and rough roads. The scenario is even worst in the hilly roads where it is either all muddy or full of dirt. So during rainy season, every single motorcycle rider fears of getting their pants, shocks and their expensive shoes get wet by dirty road while during summer, they all get dirty with fume of dirt and clog of smoke. Here’s a scenario of rushing to office or college in busy morning during monsoon.
You have a very important presentation to make, though you are all covered up by Raincoats, your rower part of pants, shocks and shoes are all exposed. It won’t take much time some crazy driver splashes muddy water to you or you have to force yourself to step down during crazy traffic Jam. That is enough to ruin your day. So, we have come up with a unique kind of rain coat which will keep not only your feet dry but also your shoes safe. Now, you don’t have to get worry about the heavy downpour from above as well as the splash from below.
Therefore, Footman, the Foot Raincoat is the ultimate product that will give you a sigh of relief and a confidence to ride your bike, bicycle or a scooter in the rain. Footman is made up of strong synthetic material with durable, light and flexible sole which you can easily wear on top of your shoes up to the calf. Its unique water, oil and dirt repellent material not only help it to safe your shoes from water but also from dust or any other unavoidable liquid material. The product will be available in different colors and sizes and it will be available in all the bike showrooms of Nepal.
The price will range from RSI. 150- RSI. 500. Our target market is the entire bike, scooter cycle owners. For product promotion we will be doing media commercials and also be using hoarding boards. Background In major cities of Nepal, though riding a two-wheeler helps to cut short the travel in the heavy traffic, but in the rainy season, it is practically a nightmare. Although a biker’s torso is more or less protected by raincoats, it is extremely difficult to keep shoes clean and dry due to splashes from potholes and passing vehicles.
Also as most of the hilly roads are gravel roads and during monsoon, it turns into pool of mud; it is almost unavoidable to save one’s shoes. Having experienced this challenging situation, Osaka Plastic and Fabrics Pet. Ltd. Presented a product called a Footman. Situation Analysis The roads in the country are bumpy with potholes almost everywhere. Recently, due to the road expansion drive in the valley, the environment is polluted and the remains in the roads are not helping much during the rainy season. So, in Katmandu, riding a two-wheeler in the rainy season is very difficult.
Although a biker’s torso is protected by raincoats, it is extremely difficult to keep the shoes clean and dry due to splashes from potholes and inconsiderate passing vehicles. Rain can do a lot of damage to your footwear, especially if you prefer leather boots or shoes to ore conventional footwear. 1. 1. Company Summary Osaka Fabrics Pet. Ltd. (FALL) has been involved with manufacturing and trading various trekking and monsoon products in the Naples market for the past 5 years. FALL is focused on producing various types of raincoats, Jackets and trekking gears.
Fall’s efficient and effective operation ensures it mega goodwill as well as its reputation of being one of the best in Nepal. 1. 2. Organizational Structure Managing Director Marketing and Sales Director Technical Director Sales Executives Administration Executives Finance Executives Technical Executives Figure 1: Organizational Structure – Osaka Fabrics Pet. Ltd. 1. 3. Market Characteristics In the recent years, there has been a considerable increase in the growth of private vehicles in the Naples market. The numbers of two-wheelers has also sky rocketed.
This is mainly due to increase in the disposable income of individual Naples. Rain can do a lot of damage to the foot wear, especially the leather boots or shoes as compared to more conventional footwear. Due to the increase in number of two- wheelers in the market, the market for Footman is immense. 1. 4. 1. Market share The market share of Osaka Fabrics Pet. Ltd. Is almost has 30%. With the introduction of new product line, there is a large opportunity to increase this market share and become top player in the market through marketing and promotional activities. 1 42.
Size to the Market The market size for Footman is huge. There has been a constant rise in the sales of two-wheelers in the Naples market. With more women Joining the workforce and colleges, the market size is ever-growing. Also with the bad condition of roads, even pedestrian can be added to the total market. The roads are not getting better anytime soon, so a product to protect the shoes during monsoon has great prospects. 1. 4. 3. Competition The concept of Footman is new in Nepal. As per the market survey, not a single company has come up with this kind of concept.
So basically the Footman have virtually no competition and FALL will gain first movers advantage and will be successful on grabbing 100% market share for Footman. There might be similar Chinese products which are water proof and there are variety of Gumboots which can be treated as competition to Footman. 1. 4. Market Trends 1. 5. 4. Growth in the sales of Two-Wheelers The sale of two-wheelers is growing day-by-day in the market. The demand of latest motorcycles and scooters for daily commuting is increasing day by day.
Two-wheelers are becoming point of attraction in the youth and are the most convenient means of transportation in the busy streets of Katmandu and other major cities of Nepal. Even the sale of bicycles is growing these days. Two wheelers are getting popular due to requirement of the lesser parking spaces, ease of traveling in traffic congestion and economically feasible for common man. 1. 5. 5. Increased number of Working Women The overall scooter sales are zooming ahead due to increase in the number of working women in Nepal, especially in the city areas.
Two-wheelers are a convenient mode of transportation for these women who need to go to work. As per the Automobile dealers, the numbers of female customer are rising constantly with latest scooters in the market. They now predict that scooters will secure a significant share in the overall two-wheeler market. In addition, even colleges are observing increased number in female students’ admissions which has triggered the rise in scooters in the country. 1. 5. 6. Bikes as Fashion Statement The rise in the different models of powerful bikes are attracting the younger generation.
For youngsters, owning a new brand of powerful bike is like a fashion statement. 1. 5. 7. Bumpy Roads Apart from carrying out minor repairs, the roads have not undergone significant maintenance for the last five years. And with the recent demolition for the extension of roads has made things worse. Rain can be fun but not in the streets of cities of Nepal dotted with unsuspecting potholes everywhere. The bad condition of the road and the inconsiderate vehicle riders, especially during the monsoon is a nuisance. So, product to protect footwear during monsoon is highly applicable in the context of Nepal. . 5. Pest Analysis 1. 6. 8. Political-Legal Environment Non-stability of the government is the major problem faced by all the sectors of Nepal. Due to the political instability in Nepal, the development and maintenance of roads are not going as par. The recent road expansion drive in the valley is trying to enhance the transportation infrastructure, but it certainly will take time to maintain and build smooth roads. 1 6 9. Economic Environment Economic factors like economic growth, interest rates, exchange rates and the inflation rate have major impacts on how businesses operate and make decisions.
With the current downfall of Naples economy with high rates of inflation and low economic growth, the individual house hold and nation as a whole is facing high economical problem. Also the Exchange rates of Naples currency are pegged against Indian currency, which in turn is floating against the US dollars. Hence the pricing of the product is heavily pegged towards the USED exchange rate. 1. 6. 10. The consumers today are more educated and inclined towards prompt and comfortable services. People ride two-wheelers to go to college or work. A product such as Footman that protects the footwear in the rain seems very useful.
Thus, socio- cultural environment for FALL is favorable and provides growth opportunities in the market by targeting at different group of people to cater their needs and 1. 6. 11. Technological Environment requirements. With the evolution of technology, it has made easier for people to get access to products online. The emergence in the use of social networking web sites such as Backbone and Twitter will help in the promotion of Footman in the market. Also, the availability of company’s product online will encourage the user to buy from their mom also.
The use of internet and mobile phones by the consumers in Nepal is becoming very popular. As youngsters are the targeted group for this product, the technological advancement will be favorable. Market Summary 1. 6. Competitor Analysis Being cheap and easily available, Chinese products and plastic products have the largest market share in Nepal market with 80% share in the home market. Also due to easy trade in our neighboring countries the penetration rate has been impeccable. As per current analysis, Osaka Fabrics Pet. Ltd. , Chinese and plastic products are the dominant players in the business market.
As with the introduction of new product line, the Footman, which is one of a kind and has not been introduced commercially and in such a wide scale in Nepal Market by anyone till date, the FALL has high chances of capturing good market share. By far, plastic foot wears have been the dominant competitor in the market. Plastic foot wears have been offering solution at the lowest prices due to the large sales volume and extensive distribution coverage as the probable and most suitable substitutes of our products. However, there is chance of entering new players in the market as the customer base is wide and the integration is low.
Also barrier to entry being is close to negligible when it comes to economic scale and market scale. Being first mover, the initial competition is not that high but with potential of new players and the market potential as the chances of being replaced easily is very high. But Osaka Fabrics Pet. Ltd. Has been the early mover in developing the market; specifically the local segment, however, there is chances of new players entering into the market hence requiring careful marketing strategy and promotional efforts for sustainable growth.
The current competitive barriers for Osaka Fabrics Pet. Ltd. Eave been the easily entry barriers and the product placement in the initial phase. At the same time Osaka Fabrics Pet. Ltd. Products might be taken not the right value of money for the very cheap Chinese product being available in the market. The company is willing to expand t distribution reach as well as providing more incentives for the distributors / partners to push Osaka Fabrics Pet. Ltd. Products and engage in brand promotion to position Osaka Fabrics Pet.
Ltd. Products as locally owned solution for their daily basics of keeping their foot wear in right condition and in the long run being more presentable wherever they go in any season. 1. 7. Consumer Buying Behavior The consumer behavior can be treated as Psychological, Social and physical as they become aware of the product, evaluate, purchase, consume and tell others about product ; service. The company is planning to harness the emotional behavior with high quality national product.
This gives the competitive advantages in taking hold of the Naples consumer segment by brand positioning which solves their vital need of goodwill of using national product I. E. “Domestic footwear should be promoted with its quality in comparison with foreign products in the same price ??tag??re’. Osaka Fabrics Pet. Ltd. Is here to trigger that consumer buying behavior and utilizes it to optimum. Consumer buying behavior is gradually changing, people not only seek product but also seek the support of after sales services offered by these products, which can only be availed through the purchase of domestic products.
Individual users are sensitive to prices; however, at the same time lower prices could also indicate that they are very sensitive in getting the right value of their money and also being able to get the trust worthy after sales services. The ideal observed scenario of Naples consumer being price sensitive makes Osaka Fabrics Pet. Ltd. More vulnerable towards giving the right value of their money and also being able to capture the market with right approach. Easy replacement criteria, durability, and widely available channels are widely noticed consumers need in Naples Market Segment.
Hence we shall be closely working on the choices of alternatives and post purchase behavior/satisfaction facet of consumer buying behavior. 1. 8. Naples Market Segmentation The Naples market is highly driven by suppliers and is focused on mass marketing approach. The Socio-economic changes and development in transport and communication system have made Naples marketers conscious of market segmentation. The following points describe the market segmentation practice in 1. Irregular research Segmentation is generally not based on systematic market research.
As formal systematic market research is not performed, the past experience of management and competitor’s strategy will highly influence segmentation. 2. Variable for segmentation There are many variables by which consumer market can be segmented: (a) Geographic (b) Demographic (c) Psycho graphic (d) Behavioral 3. Lack of information Naples marketers lack comprehensive information about consumer characteristics. They reared marketing research as a “wasteful cost”. This has constrained the effective evaluation of market segments in terms of their attractiveness and 1. 9. Consumer Market Segment appropriateness.