"Create-A-Shoe" by Dale Baumes

“Create-A-Shoe”
The affordable way to own multiple pairs of shoes!

I believe that “Create-A-Shoe” is a good name for the product and the company because that is what the company is trying to sell.

New-Product Strategy:

The idea of this group of products is simple. We will sell different components to an everyday dress shoe. This will allow customers to mix and match different soles, or different colors for whatever occasion the client needs. This will make things very affordable for the customer because instead of buying ten different pairs of shoes, one can simply buy whatever color skin they need or whatever type of sole they need at literally half of the price.

Idea Generation:

Well I came up with this particular idea because I am definitely someone who likes footwear and thought there must be a cheaper way to have multiple pairs of dress shoes. There is also a similar product used in the sports world. Someone came up with interchangeable soccer cleats. For men, you generally only have a few different pairs, so ideally this product would be great and they would be able to save a good amount of money. Now for women, on the other hand, the options would be substantially greater from colors, to high or low heels, and as far as the material used for the shoe itself. In the end I feel it could be potentially cheaper for women as well though. Also, both types of shoes would be very durable, and say for instance the sole gets worn through, that is all you would need to replace. You would not have to throw the entire shoe away.

Idea Screening:

Idea screening for this product would not be very difficult. First, I would look in the market for similar products, which I stated above there is something similar in the sports world, and in using the same technology I am sure that a dress shoe would hold up very well. Also, I have talked to many men in the business world who go through shoes like water, and they claim that it would be great to have shoes with interchangeable parts. I mean I still would do much more research to see which market I would break into first, but I think almost any man would use them.

Business Analysis:

What is the likely demand of the product?
The demand for this product would probably be older men and women who have the need for multiple pairs of dress shoes. Any person in the business world or really anyone who has to dress business casual for work would definitely be in the market for our shoes.

What impact would the new product probably have on total sales, profits, market sales and return on investment?
This product is somewhat unique and I think introduction in to the market would be slow and strategic. I would slowly give my product to different people and get feedback and see if there can be any changes made to the product. After all the bugs are taken care of I will slow introduce them into the business world where mostly all sales will come from. Since the product is simply making a product better, I feel many people will be intrigued right from the start and it will not be difficult to sell. Also I will advertise with famous businessmen or famous shoe companies like Nike and use Tiger Woods or Michael Jordan in commercials. The possibilities are endless because I am simply making a commodity better, affordable, and on the cutting edge of technology. This product could last forever and could possibly change the shoe industry in a positive way. Also, since the components of the shoes are not really changing just simply coming together at the customers home. There will be very little costs in production, and be able to put most of the revenues into the products marketing.

How might competitors respond?
I feel that the competition will be very similar to that of the present shoe world. I mean our product is entirely different, but it is still a shoe in the end and people will have to decide which they prefer. Competitors may also try to join in on the new technology which is great for competition because it spurs many new creative ideas and could potentially change our plan in the end. Healthy competition never hurt anyone.

What is the risk of failure? Is the company willing to take the risk?
I do not really see any risk of failure. Worst case scenario is that nobody will be interested in the product and the product will be discontinued and our company will take a hit of a few thousand dollars, that’s business. On the other hand I would do much research on my own and make sure that the money I invest is secure and do whatever it takes to keep the business alive. As I said before production costs should be very low so another option when starting up would be to manufacture what is needed and not have a warehouse full of goods that could potentially not be needed. I feel with the economy the way it is today many will be very interested in saving some money and receiving a quality product with interchangeable parts.

Development:

When it comes to the development end of this particular product should be very cut and dry especially since the product already exist. I mean in theory the product should work wonderfully, but I think developing a women’s line will be slightly more difficult. I think it may be tough making it universal. I think both shoe lines are plausible though, and with some work and research should not take long to develop.

Test Marketing:

Well like I stated before we should start out small and see if people will actually wear and utilize the interchangeable parts of the shoes. Once some research is done we can slowly introduce the product into the business world, where many men and women should like the idea and be happy to wear them. Also, we could give special rates to the first pairs in the market or sell two colors for the price of one.

Commercialization:
I think if everything goes well at the test phase and introduction phase the possibilities are endless for where this product can go. I think potentially we can look globally and sell throughout Europe and Asia. Hopefully we will be able to expand our inventory, and also come out with new technology and a better product as the years go by.