1) Should Matrix foray into youth market / Foreign accessories market? Why? • Matrix should concentrate into youth market • Reasons: - Matrix doesn’t seem to have any core competency in the filed of fashion accessories - Matrix image as a janata brand doesn’t well gell into the concept of fashion accessories - Moving from low priced footwear to fashion accessories is a different move
2) Does product policy impact the value preposition of Matrix Store? How? • YES • How? - A v-f-m brand moving to premium products definitely will have a big impact in terms of customers able to make a sense of the value offered - On the other hand it is also very important that based on the product policy and portfolio decided, all the operations (like inventory, logistics, production, design, mktg and sales, etc.) are fine tuned such that the overall value preposition proposed is executed on the same lines -L
3) How can Matrix diversify into unrelated areas like fashion accessories without repeating the mistakes of the past? • Diversification strategy: Issues
Customers could not perceive a v-f-m brand offering premium products Instead of leveraging on the Matrix brand (v-f-m brand) as is, it would be wise to have a new brand established under the banner of Matrix identifying the new category of premium footwear
This would help in bifurcating economy footwear vis-à-vis premium footwear based on brand name with the advantage of leveraging a brand trust of Matrix as a 45 year old footwear company A focused brand separate from economy footwear would give a right focus and make it more easier to build the new skills required Since the volumes of premium segment is small, it may be worth while to follow outsourcing strategy. It would also help by not interfering with regular production activities and also not affect the inventory management issues
As a mass mktg. company, Matrix did not have required...