Helping an investor client with their shoe shopping

The Situation
  • In support of an Investor Client’s interest in two footwear companies, Stax evaluated current market demand and brand positioning of these two key footwear brands

  • As part of this assessment, Stax sought to determine market conditions and outlook, end-user dynamics and competitive positioning and brand positioning.

The Assignment
  • Stax orchestrated a broad analysis of secondary research by gathering and analyzing publicly available industry data to assess market trends and drivers.

  • Furthermore, Stax conducted primary and secondary research to deliver a granular assessment of the two competitor brands. We supplemented our findings with interviews with category managers to round out our market and customer assessment.

The Benefits
  • Stax identified and outlined growth opportunities for both the targets to increase sales and improve brand perception and positioning.

  • Stax recommended that Target 1, should focus on improving its relationship with primary retailers and improve its in-store experience in discount retail stores through bigger assortments and stronger in-store signage.

  • Furthermore, we recommended that Target 2 improve product assortments and in-store signage which are in tandem with customer service in order to improve the consideration-to-conversion rate of potential customers.

The Finding
  • The market for athletic footwear was expected to have a moderate growth over the next 3–5 years, given rising disposable incomes and demand for evolving technology. Additionally the basketball and running shoes segments were strong contributors to overall growth.

  • Target 1 was seen to be more ready to be elevated in the discount retailer space given its brand recognition and price-to-value proposition, and was unlikely to be competitive with market leaders in specialty stores.

  • We also found that the 2nd Target’s brand aligned well with department stores where customers were seeking a strong price-to-value proposition in tandem with quality and durability. Stax recommended that Target 2 should continue to focus on its presence in department stores as its products align well with current and potential customers.