Product design manufacturing and supply chain management
These channels are very different means of communication, but, at the same time, they are complementary and synergistic. On TV, for example, it is possible to explain in detail the patent and its added benefits, things that are difficult to communicate with the printed word. Moreover, through television advertising, sales can be considerably pushed at specific times of the year. The press, instead, plays a background role, maintaining the brand’s constant visibility. (http://www.christian-louboutin-sells.com/fashion-collection-c-18.html)
Billposting is used to support the vast sales network and emphasize their widespread presence, where necessary catalyzing sales. As evidence of this, Geox’s advertising campaigns typically cover a whole range of European, North American and Asian newspapers and magazines, from financial to sports from men to woman, to fashion. In fact, although Geox’s current target market is primarily mid to high- income consumers who look for comfort and style in their footwear, the potential customer base includes all ages and lifestyles since, as the company notes, no one likes to have his feet wet and smelly.
Interestingly enough, pricing is consistent with the idea of a newly defined, extended customer base. Most footwear producers either try to elude low cost competition by targeting more affluent customers and by differentiating their products in terms of style and quality shoes so that they can charge a premium price; or they struggle to drive down costs and prices keeping control downstream of the supply chain (up to direct control of retail) and source aggressively in low cost countries. In the first case they sacrifice volumes, in the second case margin. Curiously, Geox has grown and remained profitable selling shoes in the affordable $120-$325 price range.
Geox’s shoes sell not only because they “breathe”, but also because they are stylish and reasonably priced. This is possible thanks to Geox’s product design strategy and production system. Although product innovation is concentrated on the shoe sole, Geox’s managers are aware that upper aesthetics and style remain important in customers’ preferences.
Nobody would buy“breathing shoes” that look ugly. Therefore, Geox’s does its best to design fashionable shoes, getting direct insights from the market (e.g.: through its own retail network), rapidly imitating industry trend setters5, and quickly getting the new models to the market. As regards the design of the upper, Geox has chosen to be a “fast follower”. It designs most of the new products (season and flash collections) in Italy, taking advantage of the externalities deriving from the location within fashion trend setting industrial districts in Veneto and Marche. From there, it runs small batch productions, used to pilot test the market.
These pilot runs are rapidly distributed in key retail locations to test customers’ preferences, providing feed back on styles, colors and prices. Depending on the success of the pilot test, collections are adapted. Then, large scale production and distribution rapidly follow. (http://www.mbt-sells.com/mbt-habari-sandals-c-30.html) Geox’s production can be conceived as an integrated manufacturing system made up of an international constellation of smaller, self-contained and semi-autonomous production subsystems (owned plants or suppliers), each responsible for the manufacturing and delivery of one or more styles of the collection. For different opinions on Geox’s shoes style see: “Pungent smell of success unlikely to impress Brits”, Marketing Week, March 27, 2003; “Sweat-free, but anxious: Geox shoes kept Paul Sullivan’s feet dry, but now he can’t stop thinking about perspiration”,
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