ASSIGNMNET-1

Course: Marketing research (MKTG 381)

Instructor: Ma’am Urooj Qamar
Name: SHOAIB AKHTAR
Roll no: F18BB021

1
 Mochari Shoes Brand
Introduction:
The word “Mochari” reflects about itself. It has been derived from the word
“Mochi” (the person who makes shoes by hand). You have seen many shoes brands i.e Bata,
Arino, Epcot, Nike, Urbansole, Borjan and Levis etc. But Mochari brand is at No.1 because it is
made by hand. And also Mochari is a way of contribution to those Pakistani Cobblers and
forgotten craftsman whose talent and experience continue to amaze us.
Mochari is also a luxury brand of Pakistan that deal with the high quality of shoes as well as
other accessories. Trendy, fashionable and unique are the words that describe the products of
Mochari. The precious and finest quality pieces are handmade, so every pair has its distinct
characteristics.
In many cities of Pakistan shoes has been made by hand but these shoes got locally attention.
Their work was wasting since. Their talent and well experience work are not satisfactory to their
cost. That’s why handmade pieces of shoes are getting less importance and world have moved to
new technologies. Now many products are being made by machines without consuming time,
effort and at less cost. Seeing all these crises, new brand Mochari is launched in 2014, to protect
the local culture and become the most demanding brand of Pakistan because of its fine quality,
flexible sizes and many categories. Mochari claims to reflect the culture and history of Pakistan.
Seeing the designs and colour of their products are unbelievable.
As we say that Mochari shoes are handmade so it consume more effort, time and cost, that’s why
they demand high prices. People ignore these prices because of their best quality and
hardworking of craftsman and they also support their local culture too. The colour selection and
design of these pieces make them unique.

Diversity of Mochari shoes:

KHUSSA LACE UPS OXFORDS SANDALS

2
ANKLE BOOTS KOHATI LOAFERS PESHAWARI

SLIDES KOLHAPURI MULES

Porters Five Forces Model:

1-Threats of new entrants:

A new entrant is a potential competitor which could be a threat to existing companies. But in
order to enter the market, the new entrant has to consider the entry barriers which prevent
entering into the industry.
Entry Barriers in Industry:
Capital requirements:
In order to produce the a large number of products it requires a big investment in terms of
finances, technicalities, and human resources etc which is not easy to specially when there are
existing firms with huge market share so these things prevent a new entrant from entering to the
industry.
The economy of Scale:
A new entrant has to operate on a large-scale basis because it forces the new entrant to operate
on a large-scale basis or either to accept the cast disadvantage. As the existing firms in the
industry have achieved their breakeven and are operating beyond that. As the new entrant might
have to suffer from the scale related barriers not only in manufacturing the products but in the
marketing and advertisement as well as all other related issues.

3
Product Differentiation:
Product differentiation also presents an entry barrier as in the industry the competitors like Bata
& services and many other brands are already differentiating their products. So this could be a
difficult task for a new entrant to the industry.
The entry of new firms in industry affects the performance of existing firms. In profitable
markets that yield high returns normally attract new entrants. It is a norm that when new entrants
are joining the market, they undertake research to assess the firms that seem to be doing well.
This leads to many new entrants resulting in competition and decreased profitability and value
for the already existing firms.
2-Threats of substitutes:
Substitutes are available in the shoes industry as there is not much difference between the
products of the companies. All the companies are offering similar types of products with
different claims and labels. So if one company increases the price of its products the customers
can switch to the products of another company. So this also has an impact on the industry.
Sometimes the new firms may enter the market with low prices and high-quality products by
which they become substitutes for the existing firms posing a great threat to them. When
substitute products exist in the market, they become a threat to the sale of the products of a given
firm. Customers normally switch to alternatives. This depends on buyer propensity to
substitute, the price performance of substitutes, buyer switching costs, number of substitute
products available in the market, perceived level of product differentiation, sub-standard product,
and availability of a close substitute.
3-Bargaining power of Suppliers
In the ecommerce business bargaining power of supplier varies from low to higher rates. This is
because some specific rules have been defined by the companies the reason is that the rules are set
by the suppliers have to follow the procedures and protocol set by the company. Brands have been
very careful regarding their supplier relationships and rules and regulations related to quality, and
how much they wage well as the ability to be maintained at a certain rate or level. Let’s not care
about the number of competitors the number of the industry having grown, Suppliers do not have
too many options but to listens rules that have been imposed on him It is why the Ecommerce
brands have the upper hand and the bargaining power of the suppliers is low. Some of the suppliers
may have some bargaining power because of their design and quality.
4-Bargaining Power of the Buyers
The power of bargaining is slightly higher in e-commerce specially bargaining power of
buyers the observe that a lot of brands have showed up in market having different product i.e. there
is a small scale seller forward/producer producing a specific product but price is a bit higher. The
buyer has information to everything which is just a click away. There would hardly be any
switching cost for the customer forward/consumer. Other than this it is explained earlier the other
physical stores have also started entering e-retail business. Being a physical store, they have a goal

4
to retain each and every customer in market that results in investing a huge amount in technology
and customer services. Buyers also can affect attractiveness of an industry as they are asking for
lower prices and improved quality of the products. While if we talk about the individuals they
don’t pose much of the bargaining power to the buyers while large clients like airlines & retailers
can affect heavily as they are purchasing in bulk amount. And they do have a bargaining power in
terms of shoes industry.
5-Industrial rivalry
A lot of different shoe brands have emerged into fashion market having different competitive
advantage over each other. Such as some brands market about their styles are unique some say
that their shoes are handmade and some say that their prices are low and quality is the best.
Mochari being a Pakistani brand it states that all the material used in our shoes are from local
origin and of course our craftsmen are our skilled Pakistani brethren whose talents and
experience continue to amaze us.
Rivals can also said to be competitors and competitors are of two types
 Direct competitors
 Indirect competitor
Since shoes cannot be replaced by anything else so Mochari can only have direct competitors
such as
1. Bata
2. Servis
3. Borjan
4. Unze London
All of these brands have been providing quality schools like have worn Bata school shoes all our
childhood and the brand image of Bata is super strong. Whenever someone says Bata everyone
snaps and they print an image of Bata in their mind. Unze London have been a new entrant into
the shoe market but is providing quality products and premium designs since if there is less
different in prices switching costs will be low and power of consumer to switch to another brand
will automatically increase. A competitive advantage of Mochari over other brands is that
Mochari provides a wide range of handmade hand bags for women having superior quality
material used and aesthetic looks with each piece aesthetically visualized, meticulously designed
and crafted with extreme precision. Above all Mochari collections is a reflection of what it
means to be Pakistani.