Case Analysis: Matrix Footwear

1. Should Matrix foray into youth market / fashion accessories market?

A1. Truly, matrix should foray into youth/fashion accessories market. Be that as it may, they should
not repeat the similar slip-up as they did in before. They ought to go moderate and enter only the
upscale shoe market for the youth. The premium is registering an annual growth rates of 30% in
which Matrix has limited presence.
They should postpone the idea of entering the youth upscale portfolio for the time being and consider
about entering in it only once they are stable in the upscale shoe portfolio.

2. What are the factors you should consider while making product / market decisions?
A2. The factors that to be kept in mind while making product/market decisions are as follows
 Decline in the market share of Matrix.
 The offerings in a product portfolio need to be streamline and considered
 Premium youth segment registering an annual growth of 30%.
 Growing youth population which is aspiring and has means to satisfy those aspirations.
 The backdrop of the failure of the attempted premium segment stint which was a failure.
 Employees who were part of the failure who are still in the organization.
 It is necessary for the company to gauge on its own capabilities such as manufacturing,
storage and procurement.
 The company much take into consideration the existing partnerships and how can they be
leveraged in the future.

3. How does product policy impact the value proposition of Matrix store?
A3. A value-for-money brand moving to premium products unquestionably will have a major effect as
far as clients ready to comprehend the worth advertised are able to make a sense of the value offered.
On the other side it is important that based on the product policy and portfolio decided, all the
operations (like inventory, logistics, production, design, marketing and sales, etc.) are calibrated such
that the overall value preposition proposed, is executed in a legitimate way and everything is in
agreement.

4. How can Matrix diversify into unrelated areas like fashion accessories without repeating the
mistakes of the past?
A4. Diversification strategy: Issue is that the customers could not accept a value-for-money brand
offering premium products instead of leveraging on the Matrix brand as a value-for-money. It is
therefore advised to have a new brand established under the banner of Matrix, listing the new category
of premium footwear. This would help in bifurcating economy footwear and 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 separate brand from economy footwear would give the right focus and make it easier to
create new skills. Since, the volumes of premium segment are small, it may be advisable to follow the
outsourcing strategy. It would also help by not interfering with regular production activities and also
not affect the inventory management issues.
As a mass marketing company, Matrix did not have required skills to build premium brands. It should
outsource operational production and logistics of premium footwear to third parties and just monitor
the required quality and maintenance of stores. Specialized sellers are required to train the staff to
handle premium customers.