Case study Remsons Shoes

Mr. M. Ramarao inherited a small shoe-manufacturing unit called Remsons Shoes from his father. Remsons was supplying shoes to dealers and other branded manufacturers.These shoes were then sold to users under others brand name. Remsons remained unbranded suppliers. There was intense competition among suppliers and hence profits margins were non-existent. Ramarao studied the market situation and found out that there was no future for remaining as supplier. He also found that it was difficult to sell directly without establishing a brand name. It was impossible for Ramarao to spend money on establishing a brand name in the consumer market. He decided to look for other opportunities. He came to know about safety shoes used in industries. Due to new legislation, large companies were forced to provide safety shoes to workers. The Big shoe manufacturers were not interested in this market as they considered market small and long procedures required.Ramarao got some imported samples and manufactured few shoes using traditional skills. With great difficulty, he found first industrial customer, a chemical unit. He supplied 1000 pairs to the chemical units. Within six months, there was a major complaint, as the shoes were not withstanding the chemical used. Ramarao investigated the failures and replaced all the shoes though it was great burden to him. The next lot performed to customer satisfaction. During the industry interaction, he found out that though companies were buying the shoes, labor union were the real decision makers. He established a good rapport with most industrial unions. He became member of International safety organization for labor and started Indiachapter. He involved his own skilled workers as marketing men as union leaders could corelate with them. Within a short time, Remsons established itself as major supplier of industrial safety shoes. Remsons established low cost after sales service network using local mochi or shoe repairs. As a secretary of the international safety organization, he kept good relations withindustry managers and workers. He took safety as a social cause and conducted awareness campaigns across industry. He was appointed as consultant to the labor ministry on industrial safety. He found a large market for safety products such as industrial helmets, goggles, earmuffs. He diversified into new products and started offering a total industrial safety solution to industries.

1)As a student of marketing, explain the innovative marketing strategy followed by Mr. Ramarao with focus on marketing mix and STP(Segmentation, targeting, positioning).

2) Firstly explain the various stages in market research process and then explain how has Mr Ramarao researched the market and what insights he has used to build the business.

3)What improvement in marketing strategy, you would like to suggest to Mr.Ramarao for future?