30 Years – India’s Strategy Boutique
30 Years – India’s Strategy Boutique

Retail & Consumer Products

Market Diligence for Target Footwear Company: Go/No-Go Decision

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Medical Technology (Medtech)

Client Challenge

The client, looking to invest in a target footwear company with ~Rs 700 Cr sales (FY 18), engaged UC Strategy to perform preliminary market diligence. The aim was to assess the competitive position of the target by evaluating market position, brand perception and equity, market shares, and related dynamics in 10 cities across India.

Our Approach

UC adopted the following approach to formulate a Go/No-Go decision:

  1. Interviews and Data Collection
    • Conducted face-to-face interviews in 6 cities and telephonic interviews in 4 cities.
  1. Brand and Market Analysis
    • Evaluated brand awareness, marketing/promotional activities, aided and unaided brand recall, brand adoption and loyalty.
    • Assessed Key Performance Criteria (KPC) of the target company versus other brands, repeat purchase behavior.
    • Analyzed channel structure and relationships, including distributor profiles, distributor-company relationships, and distributor-retailer relationships.
  1. Performance Assessment
    • Analyzed the market and target company’s performance across 10 cities by:
      • Evaluating past growth (FY16-18) and expected growth (FY18-20) vis-à-vis market growth.
      • Assessing market share of the target company.
    • Reviewed overall performance in three product segments: Hawaii, Non-Hawaii, and Shoes.
  1. Decision Formulation
    • Synthesized findings to arrive at a Go/No-Go decision.

Our Impact

Based on primary research and analysis, UC provided the following recommendations:

  • Engagement Recommendation
    • The client should engage with the target company based on favorable assessments in all 10 locations.
  • Further Assessment
    • Additional evaluations are needed concerning competition, channel partners, and internal parameters before making a final investment decision.

 

This thorough analysis equipped the client with a detailed understanding of the target company’s market position and potential, guiding them towards an informed investment decision.