Comprehensive Marketing Plan for Eco-Shoes Made from Recycled Tires

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Added on  2023/06/09

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This marketing plan outlines a strategy for eco-shoes, focusing on shoes with soles made from recycled tires. It begins with an overview of OTH's innovative product, which addresses the environmental issue of non-biodegradable tires. The plan includes a situational analysis with market research, PESTEL analysis, and SWOT analysis to understand the external and internal environment. The target market is identified, and marketing objectives are set to maximize sales and revenue. The marketing strategy focuses on brand positioning, targeting, and a mission statement emphasizing sustainability. An action plan is presented, along with considerations for sustainability and control to ensure the long-term success of the eco-shoes.
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Running head: MARKETING PLAN FOR ECO SHOES
Marketing plan for eco shoes
Name of the student:
Name of the university:
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1MARKETING PLAN FOR ECO SHOES
Executive summary
The aim of this paper is to create a strong marketing plan for eco shoes, or shoes with soles made
from recycled tires. The product in question is a brand new innovative item that has been opened
up to the public eye through Kickstarter, a platform designed to market original and
groundbreaking products. The product has garnered some attention in the past because it offers a
creative way of recycling old tires which are non-biodegradable in nature. However, to create a
marketing plan, it is first important to understand the market it is catering to and the environment
it is functioning in. The marketing plan presented in the paper presents an external and internal
analysis of the environment and also lists marketing objectives that must be adhered to. Based on
the analysis and objectives, a marketing plan has been devised to maximize impact on the target
market and to optimize sales and revenue.
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2MARKETING PLAN FOR ECO SHOES
Table of Contents
Introduction:....................................................................................................................................3
Overview of the product..............................................................................................................3
Discussion:.......................................................................................................................................4
Situational analysis......................................................................................................................4
Market analysis............................................................................................................................4
Market size, forecast and impending challenges.....................................................................5
Marketing environment...........................................................................................................5
PESTEL analysis of the industry.............................................................................................6
Target market for eco shoes.........................................................................................................8
S.W.O.T analysis of eco shoes....................................................................................................9
Outcome of the S.W.O.T analysis.........................................................................................11
Marketing objectives and ensuing marketing strategy..............................................................11
Marketing plan...........................................................................................................................12
Brand positioning and targeting.............................................................................................12
Mission statement..................................................................................................................13
Marketing strategy.................................................................................................................13
Action plan.................................................................................................................................14
Sustainability and control..........................................................................................................14
References:....................................................................................................................................16
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3MARKETING PLAN FOR ECO SHOES
Introduction:
Overview of the product
The product chosen for the marketing plan is eco shoes or eco boots, which contain soles
made from recycled tires ("Sneakers With Everlasting Soles Made From Recycled Tire" 2018).
The product is owned by a brand called OTH, who intend to manufacture and sell sturdy,
sustainable and everlasting shoes which have been made from recycled tires. It must be
remembered that all tires have a life cycle, and once they no longer serve the desired purpose,
they are usually discarded. However, tires are made from rubber, which is not biodegradable.
Once the tires have been discarded, they contribute to soil and air pollution owing to the various
chemicals present in them. A tire starts the decomposition process only after four hundred years.
Thus, there is a growing concern as to the reusing and recycling of tires in order to minimize the
waste generated (Valuev et al. 2014). There have been several innovative uses of tires; however,
OTH takes it one step further by using the rubber from the tires to make soles for shoes. These
shoes are not just long lasting and hardy but also fashionable and come in a wide array of colors
and styles. In Europe, United States and Canada, a tire is disposed of every six minutes; that
means more than 100 million tires are discarded in a year. At OTH, the company mission is to
come up with a strong design that would simultaneously be eco friendly. According to the
company policy, one discarded tire is recycled every time to produce three pairs of eco shoes.
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4MARKETING PLAN FOR ECO SHOES
Discussion:
Situation analysis
The company, OTH presents an eco friendly alternative as far as recycling of tires is
concerned. It is estimated that more than a hundred million tires are disposed of each year across
the globe; keeping in mind the fact that tires are non-biodegradable and can cause irreparable
harm to the environment, it is of utmost importance to recycle them. The growing consciousness
around the world has led to several creative uses of tires once they have been discarded
(Fagundes, Amorim and da Silva Lima 2017). Similarly, OTH has also devised a strategy that
allows it to recycle rubber from old tires to manufacture stylish and elegant footwear. However,
the concept of making shoe soles from recycled rubber has caught on and there are several rival
companies who may a competitive edge over OTH’s eco boots. It is thus important to carry out a
PESTEL analysis of the environment OTH is operating in to understand the marketing
objectives.
Market analysis
Research shows that more than almost two billion tires are manufactured each year and
more than a billion tires are discarded as waste globally each year; out of that, only about a
million are processed or recycled annually. The manufacturing process of tire is extremely
complex and involves a combination of numerous methods and technology; that makes it
practically indestructible, owing to which it classifies as a non-biodegradable product. This also
renders tires difficult to recycle; nevertheless, tire recyclers around the world are coming up new
and advanced methods for recycling the product and to safeguard the environment.
Consequently, there have been a number of taxes and laws imposed which take into account the
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5MARKETING PLAN FOR ECO SHOES
disposal of old tires and recycling of the same (Brief et al. 2013). As a matter of fact, adequate
measures are being taken by federal governments to regulate the cost involved in recycling old
tires by generating funding and by imposing heavy duties on the manufacturing of new ones.
Amidst all this, OTS has emerged as forerunner in the tire recycling industry. By using the path
breaking technology of recycling rubber of old tires to make shoe soles, OTH would be opening
up new dimensions.
Market size, forecast and impending challenges
As of 2016, the market for recycling rubber to manufacture shoes and other products was
valued at almost a billion US dollars and it is estimated to grow at a steady CGAR of almost two
percent in the upcoming years. Issues regarding public health and growing need to reduce
environmental damage, along with severe taxes and regulations surrounding waste tires have led
to a boom in the tire recycling industry. Besides the need to recycle rubber used in tire, there is
also an urgent demand to reduce air pollution caused by carbon dioxide emissions when tires are
burnt in landfills (Thomas, Gupta and Panicker 2016). Reusing and recycling scrap tires would
not only be an effective means of waste management but would also enhance the economic
conditions of the country. However, there are some challenges which have hindered the growth
of the industry as a whole. For example, the process of collection and assortment of tires from
different locations like illegal and abandoned landfills is a complicated task; similarly, to remove
steel wires from rubber in the tire is quite complex a process. This makes recycling of tires and
consequent manufacture of shoe soles a challenging endeavor.
Marketing environment
In the following sections, a PESTEL analysis has been carried out to study the various
factors that affect the tire recycling industry. The various social, political, technological, legal,
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6MARKETING PLAN FOR ECO SHOES
economical and environmental factors that affect the industry are bound to indirectly have an
impact on the sales and revenue of the eco shoes.
PESTEL analysis of the industry
Political factors
Studies show that a dearth of adequate resources and raw materials required for recycling
tire materials have curbed the growth of the industry in the past. In addition, it must be
ascertained that the process of recycling tire to make shoe soles is an expensive one, and not all
companies would be able to maintain it. As a result, the government is taking requisite measures
to ensure that the costs involved in tire recycling is reduced; one way of doing so would be by
imposing taxes of production of new tires (Fagundes, Amorim and da Silva Lima 2017). A level
of cooperation and collaboration between the government and the companies recycling tires
would be essential to facilitate the sole manufacturing process. OTH would, however, have to
keep in mind these regulations while carrying out their operations.
Economic factors
With growing concern about the long term impacts of tires on the environment, attempts
are being made globally to counter the impending threat. As a result, there are several companies
like OTH who are striving to come up with new and innovative methods of reusing and recycling
tires. Analysis shows that the global tire recycling industry is expanding at a startling rate and is
estimated to reach 1.12 billion US dollars by the year 2024; a steady growth in the industry is
expected in the upcoming years (Yan 2013). With that in mind, several companies (both local
and regional) are trying to expand their horizons by adopting the technology of tire recycling so
as to attract international attention. The expansion of this particular industry is further propelled
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7MARKETING PLAN FOR ECO SHOES
by the generation of crumb rubber, which is also used to make soles of shoes and concrete (Issa
and Salem 2013).
Social factors
As far as the social factors are concerned, it is important to mention the growing need for
tire management across the globe (Kannan, Diabet and Shankar 2014). People are gradually
realizing the harmful impacts of their activities which involve blatant disposal of tires without
pondering about the consequences. It is also important to consider why consumers would choose
shoes with soles made from tires over shoes which use the conventional vulcanized rubber. The
reason is simple; in order to successfully implement the process, it would require the
involvement of both the consumer and the company.
Technological factors
The process of manufacturing soles from tire rubbers is not a novel one; it has been
around for ages and only recently, its potential has been recognized. The first step in the process
would be to collect and also sort the tires that have been discarded. Finally, the rubbers are
manually molded and shaped to develop a fitted sole; these are long lasting and durable and
would certainly add to the comfort factor that customers look for in footwear. However, the use
of inexpensive imported oil and synthetic rubber have made the tires difficult to recycle; yet,
OTH ensures that only the best, state of the art technology is used to convert the rubber into
resilient soles for all kinds of shoes and boots.
Environmental factors
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8MARKETING PLAN FOR ECO SHOES
While globalization and advancement of technology has certainly brought the world
closer, it has also triggered a consumerist attitude amongst the people. Not only does this mean
that people are consuming more, but also means that they are generating more waste. In the case
of tires, it has already been mentioned that more than a billion tires are manufactured each year;
people today would not think twice before disposing off their old tires to replace them with new
ones which guarantee better performance. As a result, the number of tire landfills was growing at
an alarming rate (Chang and Gronwald 2016). This resulted in the need for recycling methods
that would reduce the impact on environment. The tire recycling industry is segregated into
numerous sectors because the possibilities are endless; companies like OTH have come up with
ways of recycling rubber from tires to manufacture products that are not only sustainable but also
appealing to the general public (Kotresh and Belachew 2014).
Legal factors
Given that the tire recycling industry is expanding at a rapid rate, several laws and
regulations have been introduced around the world to ensure that no malpractice ensues in the
process. Most of these laws seek to reduce waste generation in the first place by imposing taxes
on the manufacture of new tires. For instance, a new law was passed in Ontario, Canada in 2017,
which insisted that companies pay a price for getting rid of tires (and thus generate waste) during
the life cycle of the product in question (Aem.org 2018).
Target market for eco shoes
Before the marketing objectives are listed, it is important to understand the target
audience OTH has in mind. The eco shoes and boots, under the canopy of OTH, would be
released to the general public online, through a platform named Kickstarter. The website is
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9MARKETING PLAN FOR ECO SHOES
dedicated to creative projects from around the globe. From large companies to small scale
businesses that have innovative products but fewer means to sell them, Kickstarter has attracted
the attention of thousands all over Canada and the rest of the world. The main target market for
OTH would be the millennial generation, between the ages of 15 and 35. The generation of
millennials is stricken by concern for planet earth; they are aware of the massive toll the age of
globalization and industrialization has taken on the environment (Lu, Bock and Joseph 2013).
Consequently, various campaigns and movements have been launched worldwide to spread
awareness and to steer the world towards a greener future. As market analysis shows, OTH’s eco
friendly solution to the problem of tire recycling would immediately appeal to this demographic.
Moreover, OTH plans to market its product online, through Kickstarter and through social
media; that would work in the favor of the company because they would be able to reach out to
their target audience directly.
S.W.O.T analysis of eco shoes
A detailed S.W.O.T analysis has been carried out in the following section to gain a better
understanding of the product, its strengths and weaknesses to identify future scope for the
company and the potential threats that could stand in its way to success.
Internal situational analysis
Strengths
First and foremost, it must be mentioned that the shoes are 100 per cent eco friendly.
Adequate measures have been taken to ensure that no excess waste is generated either
during the manufacture or production phase.
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10MARKETING PLAN FOR ECO SHOES
The shoe packaging used in the product has been made from 90 per cent recycled
cardboard.
The shoes are unique and simple in terms of design. They are elegant and sophisticated
and mainly involve monochrome colors. However, the designers at OTH have taken
necessary steps to include the style factor as well.
The manufacturers have issued a 100 per cent warranty stating that the soles are ever
lasting and immune to wear and tear.
The company also follows a customer oriented marketing strategy and ensures excellent
customer service to all consumers.
The shoes come in various styles and sizes, and can also be personalized to fit the
customer’s needs.
Weaknesses
The concept of using rubber tire to make shoe soles is still in the initial phases of
development; this means that the industry is still expanding and not many people know
about it. Lack of patrons and recognition is a potential weakness.
The company hires independent manufacturers on a contractual basis; this raises a
question on the reliability of the organization.
External situational analysis
Opportunities
However, the fact that the industry is still developing could be a potential opportunity for
the company; it means that not too many companies are experimenting with the
technology, giving OTH a competitive edge.
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11MARKETING PLAN FOR ECO SHOES
Threats
Nevertheless, the company certainly has certain competitors like Brave Sole or The
Allbirds Shoe Co.; while the former conducts operations online, the latter has
approximately three stores. These stores have been in operation for a few years, making
them experts in the field.
Outcome of the S.W.O.T analysis
An investigation into the various strengths and weaknesses of the eco shoes have
revealed that OTH can make significant progress in the industry if they proceed in a strategic
manner. For instance, the use of recycled cardboard in packaging is an added bonus and throws
light into the environmental policy of the organization. However, as the company acquires more
funding, it would be beneficial if they were to appoint permanent manufacturers, instead of
independent contractors. The company has already earned a positive reputation on Kickstarter
and has generated a large number of leads since its introduction. The most crucial aspect of the
marketing plan would be eliminating competition; it would be beneficial to remember that
aforementioned competitors of OTH have a few years of experience which can give them a
competitive edge. Thus, OTH would have to introduce a product or a variation in the product that
sets them a class apart from the other brands in the same field.
Marketing objectives and ensuing marketing strategy
The SMART model has been used to list the objectives.
Specific - The main purpose of the marketing plan is to appeal to the target audience of
OTH’s eco shoes through Kickstarter.
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