Table of Contents
Declaration………………………………………………………………………………………………………….. II
Acknowledgements…………………………………………………………………………………………….. III
Executive Summary……………………………………………………………………………………………. IV
CHAPTER 1: INTRODUCTION…………………………………………………………………………… 1
CHAPTER 2: PROJECT NEEDS AND ANALYSIS…………………………………………….. 12
CHAPTER 3: MASTERY OF SUBJECT MATTER………………………………………………. 16
CHAPTER 4: SOLUTION TOOL AND IMPLEMENTATION PLAN…………………… 23
CHAPTER 5: CONCLUSION, LIMITATIONS AND RECOMMENDATIONS…….. 38
REFERENCES…………………………………………………………………………………………………….. i
APPENDIX………………………………………………………………………………………………………… iv
Interview Guide for Heel the world (Figure 1)…………………………………………………….. iv
Key Success Factors for a Luxury Brand (Figure 2)……………………………………………… vi
The BESPOKEN x TRNK pop-up shop (Figure 3)………………………………………………. vii
Imaginative Pop-up shop (Figure 4)……………………………………………………………………. vii
Chanel St. Tropez – A Retail Experience for Lovers of Luxury (Figure 5)………………. viii
CHAPTER 1: INTRODUCTION
Introduction
Heel the World is a luxury shoe-making brand located in Ghana. The company designs and produces a bespoke brand of custom-made and ready to wear shoes and fashion accessories (wallets, belts, suspenders, beads) designed primarily for men. The company seeks to increase its sales and brand awareness through the launch of a new collection of bespoke, one of a kind shoes and require a marketing plan to promote the launch. The first chapter of this paper provides an overview of the footwear industry in Ghana and a comprehensive study of the external industry (PESTEL Analysis) which will allow Heel the World to attain in depth knowledge on how strategic they should be in launching and marketing the new collection. In addition to this, is detailed information about the company and its values, as well as its accomplishments and hopes for the future. Chapter one ends with a study of the company using Porter’s Five Forces and a SWOT analysis to clearly define the internal and external environment in which the company operates currently.
Overview of the Footwear Industry Africa – Ghana
The footwear industry consists of companies engaged in the manufacturing of footwear such as dress shoes, sneakers, slippers, boots, galoshes, sandals and athletic and trade related footwear. The industry also includes footwear parts such as shoelaces, buckles, clasps, inner soles, heels and padding (The New York Times, 2017). The footwear industry in Africa remains an untapped market, regardless of the large market size of over a billion people in Africa and the abundance of raw materials and talent for shoe manufacturing. Ethiopia, Ghana, Kenya and Nigeria are some of the African
countries that are diving into the very lucrative footwear industry. Ethiopia, for example, earned over $30 million from shoe exports and is already home to more than 30 tanneries and several manufacturers that produce shoes and other leather goods for both the local and export markets (Ihuowa, 2015).
In Ghana, the footwear making industry is making headway in the local market, with most of the shoes being produced in Kumasi. The Kumasi shoe manufacturing company focuses on making footwear for almost all the security agencies in Ghana, as well as some private security companies (Myjoyonline, 2014). The local market is also filled with individual artisans and small startup companies who make footwear for sale in the country. The other regions in the country such as the Greater Accra Region and the Northern Region also have a few individuals who are into footwear manufacturing but on a smaller scale. Very few companies or individuals in Ghana focus on manufacturing luxurious shoes like Heel the World. A major player in the Ghanaian luxurious footwear market is the Phil and Joe Shoe Company. In Ghana luxury shoes which are worn by the affluent who do not mind spending more than most, are usually European or American brands. Even though companies like Heel the World and Phil and Joe shoe company have their own niche markets, a substantial portion of their customer base is lost to these foreign brands such as Prada, Gucci, Tod’s and the likes which can be purchased at high end boutiques and shoe shops. These luxury shoes range from about $200 to $1500 or more. The luxury footwear production in Ghana is a still a virgin market with a lot of potential once people start to believe in the high quality these Ghanaian brands can offer.
Overview of the External Industry (Ghana) – PESTEL Analysis
The overview of the external industry focuses on the conditions of the overall environment in which Heel the World operates in Ghana and how these conditions are likely to affect the operations and success of the company. The PESTEL analysis concept, expands on the analysis of external environment and examines issues that frequently have an impact on the business. The acronym ‘PESTEL’ refers to Political, Economic, Social, Technological, Environmental and Legal factors (Mullerbeck, 2015). This analysis is very useful for Heel the World as they are about to launch their new products into the global market. This analysis which focuses on the Ghanaian market will allow the firm to effectively evaluate the environment where production is done to know if there is major potential for the business to survive. Below is an extensive PESTEL analysis for Heel the World.
Political Analysis
In Ghana, where Heel the World has its primary workplace, the political environment over the years has remained one of the most stable in Africa. Ghana has made major strides towards consolidating its democratic achievements. Its judiciary for instance, has proven to be independent and has generally gained the trust of Ghanaians even after the dismissal of 22 justices implicated in a corruption scandal (The World Bank, 2017). The peaceful 2016 presidential elections which was won by an opposition party can also testify to the fact that Ghanaians uphold peace and believe in stability (Issifu, 2017). A stable political environment provides a serene environment for any business to thrive.
Thus, considering some of their clientele of the company can be found in the political limelight, having a steady political environment would mean, the target market, made up of well-off individuals will have enough funds to spend on such luxury. Also, since Heel
the World is a privately-owned company that does not produce in mass quantities, the company would have little or no problems from exportation policies when sending their products to other African and European countries where it finds its target market.
Economic Analysis
In the first quarter of 2016, Ghana’s economy grew by 4.9%, which is higher than the 4.1% gained during the same period in 2015. This was supported by the impressive performance of the services sector (Trading Economics, 2017). Nevertheless, the overall gross domestic product (GDP) growth for 2016 was presumed to fall below the 3.9% growth gained in 2015 due to production problems in the oil sector. The inflation rate also fell to 16.7% in July, the lowest it has been since March 2015 (The World Bank, 2017). The drop in the inflation rate and the growing economy, implies an increase in the standard of living for Ghanaians, thus a potential reduction in cost of production for Heel the World. This is because a lower inflation rate reduces the cost or amount of money spent on purchasing raw materials that will be used for production. Nonetheless, other economic factors such as the power crisis and the upturn of the exchange rate for importing leather materials may increase cost of production for Heel the World.
Socio-Cultural Analysis
The Ghanaian society over the years has embraced the western culture, especially in terms of dressing. Occasions such as weddings, parties and even everyday outings, have people wearing both high and low grade western clothing which includes imported brands of T-shirts, gowns, tuxedos, sandals, jeans, heels, loafers, amongst others.
Nevertheless, Ghanaians still embrace their culture with the traditional attires (African print clothes, the “Ahenema”- traditional slippers and beads) for some special occasions
and especially on Fridays (Daily Guide, 2015). The footwear industry, which can be considered a subset of the fashion industry, has many Ghanaian entrepreneurs entering the industry. Unfortunately, Ghanaian made products, particularly shoes are not patronized as much as the imported ones as the foreign products are perceived to be of better quality. This perception of inferiority can pose as a threat to Heel the World.
Technological Analysis
Technology over the decade has seen enormous growth globally though this growth is relatively slow in Ghana as most technological products in the country are imported and not manufactured. In the telecommunications industry, however, the introduction of the internet and wireless technology has seen significant growth rates as Ghana’s telecom industry is estimated to be worth $1.1 trillion and this growth is projected to continue for the foreseeable future (Market Research Reports, 2017). The internet is widely available and the use of E–mail’s, mobile phones and social media is rising. It is beneficial to the business as there are increased number of media platforms with which advertisements can be done and potential clients can be reached.
