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    MATRIX

    Uploaded by

    rajesh
    1. The document summarizes the history and key details of Matrix, an Indian footwear company. Matrix started as a value-focused brand targeting the economy segment but later expanded into premium and fashion accessories. 2. In the late 1980s, Matrix shifted its marketing from utility to lifestyle but struggled to attract youth and maintain its value image. It faced loss of market share and expertise in the premium segment. 3. After Stevens took over as CEO in 1991-1992, he refocused the company on its core economy segment through various strategic changes. This stabilized Matrix's business.

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    MATRIX

    Uploaded by

    rajesh
    108 views3 pages
    1. The document summarizes the history and key details of Matrix, an Indian footwear company. Matrix started as a value-focused brand targeting the economy segment but later expanded into premium and fashion accessories. 2. In the late 1980s, Matrix shifted its marketing from utility to lifestyle but struggled to attract youth and maintain its value image. It faced loss of market share and expertise in the premium segment. 3. After Stevens took over as CEO in 1991-1992, he refocused the company on its core economy segment through various strategic changes. This stabilized Matrix's business.

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    1. The document summarizes the history and key details of Matrix, an Indian footwear company. Matrix started as a value-focused brand targeting the economy segment but later expanded into premium and fashion accessories. 2. In the late 1980s, Matrix shifted its marketing from utility to lifestyle but struggled to attract youth and maintain its value image. It faced loss of market share and expertise in the premium segment. 3. After Stevens took over as CEO in 1991-1992, he refocused the company on its core economy segment through various strategic changes. This stabilized Matrix's business.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    108 views3 pages

    MATRIX

    Uploaded by

    rajesh
    1. The document summarizes the history and key details of Matrix, an Indian footwear company. Matrix started as a value-focused brand targeting the economy segment but later expanded into premium and fashion accessories. 2. In the late 1980s, Matrix shifted its marketing from utility to lifestyle but struggled to attract youth and maintain its value image. It faced loss of market share and expertise in the premium segment. 3. After Stevens took over as CEO in 1991-1992, he refocused the company on its core economy segment through various strategic changes. This stabilized Matrix's business.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    MATRIX: SUMMARY

    Main Actors:
    1. Robert Stevens: CEO of the Indian subsidiary of the American footwear transnational,
    Matrix-1952 (47 years) (1991)
    2. Anna Hegg: Executive Assistant
    3. Uday Menon: Vice-President (Marketing) (36 years) (1992)
    4. Pankaj Mishra: Director (Finance) (52 years)
    5. Sunil Bhatnagar: Executive Vice-President (Operations) (57 years)

    India --> super-economy market


    Italy --> super-premium market

    The office was in Connaught Circus, Delhi where parking area was 0.5 km away from the company
    exit.
    Stevens performed RESEARCH BY WALKING AROUND

    1989 - 17% market share (market leaders)


     Value-For-Money
     TG - Economy Segment (growing Indian middle class)
     Low value, High volume Strategy
     Friendly salesperson
     Unhurried service
     Quality & Affordability

    Late 1980s UTILITY MARKETING --------> LIFESTYLE MARKETING

     Nothing for youth


     Fuddy-duddy image

    Due to these reasons entered the premium segment


    Mantra changed to High value, Low volume
    Started selling fashion accessories in “mini departmental stores”
    Main TG affected and competitors took advantage
    No marketing expertise for the premium segment
    Economic stores with premium products

    1991 - Stevens took over

     4 major issues:
    1. No skills to build premium brands & couldn’t separate from economic pov
    2. Manufacturing processes did not shift to smaller batch-sizes
    3. Alliances did not provide any profit (premium - 10% share)
    4. Unskilled sales person

     Loss of 8 crore

    1992 - Stevens replaces Geoff as CEO


     Sales fell by 7%
     Loss of 9 crore

    Key Things That Supported MATRIX:

    1. Ended allies
    2. Removed fashion accessories
    3. 1992-1994 : 200 new products for economy segment
    4. Incentive program shift from High value --> High volume
    5. Segmented 1100 retail chains
    a) Premium stores: top end
    b) Family stores: popular segment
    c) Bazaar stores: second-hand
    6. Slashed premium product production thus reducing raw material bill by 45%
    7. Upgraded logistics
    8. Computerized Inventory Management System
    9. Slashed ad budget in half
    10. 1993 - offered 25% off

    CURRENT SCENARIO:

     Market shifing to premium products


     Customers ready to pay more for footwear
     Matrix was old-fashioned
     Customers liked huge chunky boots
     Premium constituted 12% market share but growing at 30% rate
     Population getting younger
     MISHRA’s point: 1989 tragedy
     MENONS’s point: Matrix known for Value For Money products
     BHATNAGAR’s point: Neutral
    QUESTIONS

    1. Should Matrix stay away from the premium end of the footwear market? Or should it take a
    shot at it again?

    2. How can Matrix diversify into unrelated areas, like fashion-accessories, without repeating
    the mistakes of the past? What changes will this entail in the company's approach to
    production and distribution?

    3. How can Stevens ensure that the move will not tinker with the company's core business of
    affordable footwear?

    4. Must a company like Matrix wear the millstone of its failure around its neck forever? Or
    should it ignore the opportunities held out by the young adults market, and stick to the
    economy segment of the footwear market alone?

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