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

Matrix has become a market leader in v-f-m offerings. These offerings are sold through various
family stores and bazaar stores. The premium segment constitutes only 10% of their total sales
and 12% of market share. Also there is a stagnation of their sales in popular products and now
more and more people are buying trendy shoes instead of the popular ones. This segments
consists of majorly the younger generation who are more fashion conscious. This segment is
growing fast as India’s average age is shifting downwards slowly. This means more number of
people will be there in age groups between 15 to 25. This age group is generally more fashion
conscious and as mentioned by Bhatnagar, perceives the products from Matrix as outdated and
old-fashioned. The premium segment is growing at the rate of 30% so it has a stable and good
growth. Matrix should tap into this market to get the maximum benefits. However, while doing
so, they must keep in mind that their original customer base is not forgotten and the brand
image is maintained. To do this, they could look into making a separate brand for the younger
generation that would offer premium products suitable to their fashion and style. The products
need to have certain degree of distinction in looks as well and style from their competitors.

2. What are the factors you should consider while making product/ market decisions?

The following aspects need to be considered while making product market decision:

a. Product brand perception: The way a product is being perceived by the segment using it
as well as the way brand is being projected in the market is of utmost importance while
making such decisions
b. The market environment: The market sentiments need to be considered as they drive
the sales and value of a product. If the environment is not conducive to the growth of
the said product as the product is not necessary or it threatens the environment, then
product market share will not increase.
c. Product portfolio: The offerings under the said brand need to be considered. These
offering must be aligned to a common goal and must not create confusion in the minds
of customers. Also the place of sale matters while selling products in a particular
portfolio. These factors can influence customer experience.
d. The company’s internal capabilities: Before making any decisions, it is necessary to
gauge the company on its’ own capabilities such as manufacturing process, storage,
procurement etc. These could play a crucial hindrance if not considered and worked
upon properly
e. Existing partnerships: An organization must take into consideration the capabilities of
existing partnerships and how they can be leveraged in future. The level of relationship
with the partners should also be gauged.
3. How does product policy impact the value proposition of Matrix store?

Product policy is the long term planning that decides on product-mix and the production and
development of the product. Value proposition is the types and amounts of value the firm wants
customers to receive from the market offering. Value proposition for matrix store should have
been:

 Make economic foot wear for the customers

 Ensure stores with good ambience and warm staff behaviour
 Ensure unambiguity on the delivery

The product policy impacted value proposition of matrix in the following ways

a. Unsuitable manufacturing process: The manufacturing units of matrix were such as

to manufacture footwear in bulk. They were not efficient in manufacturing small
batches of premium footwear.
b. Ambiguous retailing: The retail stores were crowded with many accessories which
were not what many customers sought. This led to many customers leaving as the
products they were looking for had a small shelf space
c. Poor partnership: The partnership with transnational was inefficient as the premium
shoes made only 10% of their sales, however consumed inventory space. This leads
to inefficiency.
d. Inefficient communication through product placement: High end premium goods
were placed in greater numbers in stores which were perceived as economy. This
led to a lot of confusion for customers and they were let down.

4. How can matrix diversify into unrelated areas like fashion accessories without repeating the
mistakes of the past?
In order to not repeat the mistakes from the past in order to diversify or expand the market.
1. Decide on marketing strategy: Proper SWOT, PEST etc. analysis needs to be done to find
out what accessories should be offered and how they are related to the existing
portfolio. This was not done in the previous attempt and a very wide range of
accessories were launched in the market which made the brand image blur.
2. Remodel the production line: In order to suit the small batch sizes of accessories,
different production facilities should be set up which will better be more efficient.
3. Marking different stores: Accessories need not be sold in all the Matrix stores. As
accessories are something which can vary in price range, the higher end accessories
could be sold in premium shops and lower end in economy shops. Also the number of
accessories in economy shops could be lesser as compared to premium shops
4. Branding premium products: The premium products need to be branded as a separate
product line. This needs to be done in order to help customers identify them better.