BUSINESS PROPOSAL

SPORTIVO
“Take the reins”

New Delhi, Delhi · 098112 30182

SPORTIVO.in
SPORTIVO@hotmail.com

Group Members:

22PGDM-BHU004 ADITAYA RAJ

22PGDM-BHU008 ANAND KUMAR SINGH

22PGDM-BHU043 RUPAYAN ACHARYA

22PGDM-BHU047 SANANDI DAS

22PGDM-BHU049 SHAMBHAVI JAYENDRA

22PGDM-BHU055 SOUVIK ADAK

 CONTENTS:

1. EXECUTIVE SUMMARY
2. MANAGEMENT TEAM

3. MARKET ANALYSIS
4. PESTLE ANALYSIS
5. INDUSTRY/COMPETITIVE ANALYSIS
6. SWOT ANALYSIS
7. OBJECTIVES
8. MARKETING STRATEGY
2.1 Product strategy
2.2 Pricing Structure
2.3 Distribution Strategy
2.4 Promotional Strategy
2.5 Salesforce Strategy

9. FINANCIALS

1. Executive Summary
Sportivo is the footwear brand launched under the Trends Global in 2015. Trends Global is a 5500
Crore diversified conglomerate, which started with primary business in FMCG products, under the
Umbrella of BHARAT FMCG. Sportivo is a complete leather and footwear company with its own
tannery and five manufacturing units. Sportivo aims to cater to the increasing demand of branded
leather footwear.
The company management
Trends Global Pvt. Ltd has been growing rapidly and has a respected name in leather industry since
2015. It’s an assemblage of potential manufacturing units with an unbeaten experience of 10 years.
BFMCG Limited started its primary business with a single production unit.

The footwear range of Trends Global Pvt. Ltd was launched under the brand name SPORTIVO in
2015 to meet growing demand for branded high-quality leather footwear. The company is a
complete leather and footwear manufacturer with its own tannery and five manufacturing plants.
This recognition is inspiring the team to increase its production capacity and fulfil the growing
needs of consumers. BFMCG Group is promoted by Achariya family. The promoter directors are
combination of experienced and young persons.

Our Services
Sportivo takes pride in its creative design, we manufacture shoes in three segments – formal, casual
and sportswear. Our clients are specifically men of the age group 18-25. From this segment
Sportivo has targeted those men who are enthusiastic and zealous enough for outdoor activity of
any form. To be concise who are adventurous, passionate, nature lovers. We have positioned our
product in the similar fashion: “We define leather, you define adventure.”
The Market
Revenue in the Footwear market amounts to US$27.51bn in 2023. The market is expected to grow annually
by 4.60% (CAGR 2023-2027).

Competitive Advantage
While the competition is neck to neck, to capture the mood of the customers the marketing strategy
being followed by Sportivo is to the stylish yet completely comfortable and durable highly
technological driven shoes of the highest quality at affordable price which would inspire the youth
for adventure.

2.MANAGEMENT TEAM
Rupayan
Chief Executive Officer
Joined the family business of his father.
His vision and strong dedication laid the foundation of the ‘BFMCG Limited’ Group. He has the
responsibilities of finalizing Corporate Strategy & Planning for the growth of the business of the
Group. Under his leadership the Group has established itself amongst the top manufacturers of
detergent products in a short period of nearly 2 decades. He provides guidance to the younger
generation to venture into new categories.
Anand Singh
Chief Marketing Officer
“He has the responsibility of planning and monitoring advertising and evolving new strategies for
marketing. He is also looking after Hygiene care, international business, and other business of the
Group”.
Sanandi Das
Chief Human Resources Officer (CHRO)
She is responsible for the overall management of an organization's hiring, training, and employee
relations. They oversee the recruitment process, design, and implement training programs, manage
employee performance, and ensure compliance with employment laws. HR Managers may also
develop and implement compensation and benefits plans, conduct employee surveys, and advise
senior management on organizational issues. They may also serve as a liaison between employees
and senior management.

Souvik Adak
Chief Finance Officer (CFO)
“He is responsible for managing the financial operations of an organization. The CFO oversees
managing the financial health of the organization, including budgeting, forecasting, financial
reporting, strategic planning, and capital investments. The CFO is also responsible for managing the
organization's financial risk, overseeing the accounting department, and ensuring that the
organization complies with all applicable laws and regulations. The CFO works closely with the
CEO and other senior executives in leading the organization and developing strategies for long-term
success”.

Aditya Raj
Chief Operating Officer (COO)
He is responsible for managing the day-to-day operations of a business. The COO is accountable
for the efficiency of business processes and operations and works closely with the other executives
in the organization to ensure the achievement of the organization’s goals and objectives. The COO
is responsible for making sure that all the departments in the organization are working together as
efficiently as possible to meet the organization’s overall mission. The COO oversees the
performance of all departments, sets goals and objectives, and ensures that resources are utilized
effectively to achieve the desired results. The COO also works closely with the CEO to ensure that
the organization’s strategic objectives are met and that the organization remains on track.
Sambhavi Jayendra
Chief Sales Officer (CSO)
“The chief sales officer is responsible for developing and executing the sales strategy of an
organization. They work with other executives to develop the sales plan and ensure that the
company meets its goals. They also lead and manage sales teams, track sales performance, and
analyse customer data to identify new sales opportunities. The chief sales officer also works with
marketing and other departments to identify and develop new products, services, and markets.
Finally, they develop and maintain relationships with key customers and partners to ensure that the
organization is well positioned in the marketplace.”

3. MARKET ANALYSIS & PLANNIG

Market analysis is conducted by undertaking market segmentation, targeting and position. The
process of market analysis will help understand the current situation of the market and the
company’s performance and standing.
3.1Segmentation
The process of segmentation is ideally dividing the entire market of potential customers into groups
or segments with the intent to identify similar traits, interests, needs and location. The method of
segmentation in this report utilises the demographic, psychographic, gender and location
parameters.
3.1.1 Demographic
Capturing the right kind of market is critical as it serves as a base for further set of analysis and
campaign strategies. Sportivo primary market comprises of all the youth that comes under the age
bracket of 18-25 years, based on the belief that college students and young professionals are more
enthusiastic towards outdoor adventures be it sports, road trips, hiking, jogging, etc.

3.1.2 Gender
This shoe brand is specifically focussed on men. They offer a whole range of products to cater to
any shoe requirement for males. This is based on an intent that once they have a customer, ideally,
he should choose Sportivo for all the shoe categories.

3.1.3 Psychographic
This primarily involves segmentation of the market based on personality traits, interests, attitudes,
and lifestyles of the target consumers. The segment focussed here is people who prefer outdoor
sports and adventure sports.
For this there are areas identified (based on origin) in India that are the highest in terms of tourists. 1
This indicatively gives an idea of potential location and target audience where the product can be
introduced and marketed.

States/UTs 2020
2020    
  Domestic Foreign
  Tourist Tourist
Visits Visits
A&N Island 191207 5412
Andhra Pradesh 70828590 67591
Arunachal 42871 961
Pradesh
Assam 1266898 7285
Bihar 5638024 308080
Chandigarh 417953 12218
Chhattisgarh 2810227 2322
Dadra & Nagar 104959 222
Haveli
Daman & Diu 297436 1382
Delhi # 9583671 681230
Goa 3258715 302751
Gujarat 19464517 210047
Haryana 2114731 17474
Himachal Pradesh 3170714 42665
States, UTs
  Domestic Foreign
Tourist Tourist
Lakshadweep 3462 413
Ladakh 6743 1126
Madhya Pradesh 23519632 99819
Maharashtra 39234591 1262409
 Manipur 49669 3139
Meghalaya 24734 2311
Mizoram 30890 265
Nagaland 10979 518
Odisha 4622273 10206
Puducherry 1114942 92080
Punjab 16692197 359114
Rajasthan 15117239 446457
Sikkim 316408 19935
Tamil Nadu 140651241 1228323
Telangana 39997001 46694
Tripura 127815 31877
Uttar Pradesh 86122293 890932
Uttarakhand 7005264 41339
west Bengal 28841732 463285
Grand Total 610216157 7171769
Table-1

3.1.4 Internet availability-based segmentation.

The company as of now has presence on online portals and tries to push the products on online
shopping websites. the growing importance of internet shopping by current consumers,
segmentation has been done based on people with internet access and availability of high-speed
internet.

Graph 2
The above graph indicates an increase in the internet speed availability, given that over 47% people in the
country actively use internet and this is a potential segment for promoting and selling the product.
Graph-3

India is also the second in terms of internet usage after China, again supporting the assumption that
internet-based segment will prove to be a successful strategy.
The table below captures the entire segmentation as undertaken by the company.

Type of segmentation Segmentation criteria Sportivo segment

Geographic Region Tier1,2 and 3
Density Rural/urban

Age 18-25

Gender (Male and female)

Demographic
 College Young
working
Occupation
 professionals

Dependent (parents’ income

12-50 Lakh) or student part
Income time job, young professional
income

(6-15 Lakhs)

Behavioural Benefits sought. Causal shoe

Sporty personality, natural

Personality lover, traveller

User status Regular user

Psychographic Social class Working class, middle class

Lifestyle

Aspire, explore

Table-2
3.2 Targeting
The identified needs which are taken care of are light weight flexible shoes, which are sturdy
and long lasting. The corresponding benefit or feature is that the shoes should be comfortable
for outdoor activities, should easily bend and modify without breakage. Targeted segment
Customer Need Corresponding Feature/Benefit Interested in Outdoor Adventure Light
weighted and flexible shoes Comfortable for outdoor adventures, easily bends and modifies
without breaking or damage.

Targeted segment Customer Need Corresponding

Feature/Benefit

Interested in Light weighted and Comfortable for outdoor

flexible shoes adventures, easily bends
Outdoor Adventure
and modifies without
breaking or damage.
Table 3
6.3 Positioning
The exercise is undertaken to understand how the company aligns a brand or product in the
targeted market. The idea is to offer something bigger, better, and more valuable than the
competitor in the market.
The company tries to position itself with the statement “We define lifestyle, you define your
adventure.” This statement claims a bold positioning strategy whereby Sportivo is
challenging the customer to take on the adventure of their choice and the shoes will be able to
deliver on the expected and augmented benefits.

4.PESTLE ANALYSIS
4.1 Political
- The government of India is expected to pump in money to the tune of Rs 2600 Crore
to increase the employment opportunities. This means there will be an increase in the
disposable income of the middle-class group, and they will be more willing to spend money
on products relating to lifestyle in our case the shoes.
- Increase in the disposable income would mean an increase in the potential consumer
group, which would further lead to an increase in the consumption pattern. To be concise a
multiplier effect is being generated in the economy.
- Promoting exports in the leather industry.
- Decreasing GST from 18% to 5% for shoes which are marketed below Rs 1000/-.
- All of this simulates an increased demand for the product.
4.2 Economical
- The footwear industry is expected to grow at an CAGR of 4.60% by 2027, thereby
creating an opportunity for the product.
- The Indian leather industry accounts for almost 12.9% of world’s leather production.
India is the second biggest exporter of leather products to USA and UK after China.
- This growth in the overall apparels and leather industry is indicative of a positive
economic environment for the product

4.3 Socio-Cultural
- Increased demand for branded products by the virtue of an increase in the disposable
income. This is due to an increase in the percentage of nuclear families about 47% and
increased participation of women as the bread earner of the family. These two factors together
imply that there are more earning members and fewer mouths to feed, thereby an increased
affinity towards branded products.
- A similar inference can be drawn for the increased interest in outdoor activities, also
supported by the fact that a large population in India comprises of youth in age group of
1825.
- This increase in demand will be met by the increase in supply by increasing the plant
capacity or improved technological interventions. But there will be more market for shoes in
the future.
4.4 Technological
- Digital penetration in India is increasing at an exponential rate, 46.5% of the
population uses smart phones, of which 91% of the users search for products via their device
and about 79% people complete their transaction using the smart phones in these last 6
months.
- The internet penetration is now steadily increasing. This implies a potential positive
environment to market the product through the internet and increasing visibility and chances
of selling.
4.5 Environmental
- There are strong waste management norms for leather tanneries. Also, there are strong
regulations on leather production.
- There is also strong regulations and rules for manufacturing units with reference to
their ETP and STP plants.
 5. INDUSTRY/COMPETITIVE ANALYSIS
India Footwear Market: Revenue in the Footwear market amounts to US$27.51bn in 2023. The
market is expected to grow annually by 4.60% (CAGR 2023-2027).

 The market's largest segment is the segment Leather Footwear with a market volume of
US$18.95bn in 2023.

 In global comparison, most revenue is generated in the United States (US$98.26bn in 2023).

 In relation to total population figures, per person revenues of US$19.38 are generated in
2023.

 In the Footwear market, volume is expected to amount to 2,706.00m pairs by 2027. The
Footwear market is expected to show a volume growth of 1.8% in 2024.

 The average volume per person in the Footwear market is expected to amount to 1.78pairs
in 2023.

India Footwear Market Overview:

Footwear is a form of human-made clothing that covers and shields the entire foot, including
the soles. Motion control, stability, and Neutral are the three types of footwear available.
Motion control is the most comfortable and corrective type. Casual, Mass, Active/Sport,
Leather, and Non-Leather are the product types of the footwear. Women, Men, and Kids are
the primary consumers of the footwear, which can be bought through both online and offline
channels. India exports a majority (78%) of its footwear to European countries and the United
States, with exports of US$ 1660.41 million and US$ 312.21 million respectively.
Additionally, the domestic consumption of Indian footwear is estimated to be around 90%,
fuelled by changing lifestyles and rising income. In the past four years, the volumes have
grown considerably, rising from 228 million pairs in 2015 to 278 million pairs in 2019.
 Graph-4

Competitor Analysis:
Within the industry the unorganised sector plays a crucial role in acting as a competitor to the
existing brands. The unorganised sector comprises of all the shoemakers that are
manufacturing non-branded shoes, first copies and fake brands. This has a huge impact on the
revenues of the branded companies.

The market share of the unorganised and organised sector for the last year and the projections
for the next year are given below. [OLD DATA]

Marketing position Sale (INR) Market share

Unorganised sector 50,000 52.17572785
Bata shoe 24,972 26.05864552
Hush puppies 8,100 8.452467912
Paragon 2,200 2.295732025
Relexo 1,956 2.041114474
Woodland 1,400 1.46092038
Adidas 1,000 1.043514557
Puma 921 0.961076907
Nike 762 0.795158092
Liberty 551 0.574976521
Reebok 413 0.430971512
Lee cooper 370 0.386100386
Red tape 290 0.302619222
Red 270 0.2817489
Chief 3
Fila 125 0.13043932

Market Share

0.28%
0.79% 12%
1%

8%

52%

26%

Unorganised Sector Bata Hush Puppies Adidas Nike Red Chief Others

Graph 5

5.1 Advantages enjoyed by competitors.

The main competitors as identified are – Woodland, Adidas, and Nike. The table below
shows the advantages each has based on the secondary data collected from reviews online.

Woodland Adidas Nike

Customer Loyalty Aesthetics largest supplier of

designer shoes
High Quality Brand Value Highly innovative
shoes
Brand positioning Technologically
embedded

Table 6

6.0 SWOT ANALYSIS

• Highly innovative • High

manufacturer
• Core competency is • High
backward integration for
Strengths
raw material.
• Continuous technology
• High
development

1. Limited presence
Weaknesses 2. Brand awareness is low in High
tier 1,2 and 3.
Introducing new GST rate Low
Opportunity slab for footwear give.
boost for industry.

 Competitors such as • High

Unorganised sectors
 Fake or duplicate products • High
 by unorganised sector
Threats  Environmental norms for • High
footwear industry

7.0 OBJECTIVES & GOALS

The company states two objectives – financial and non-financial as stated below.

Financial objectives Non-financial objectives

Double revenue Increasing Brand awareness.
year sales (crores)
To establish ourselves at Niche
2025 400 market by 2025 in
creating and manufacturing.
2026 540

Company Goals:
1.Goal #1: Expand our product line
Once the Nike Air Force Ones are popular among our customers, Sportivo intends to expand
its product line by adding a wider variety of customizable shoes: Vans, Adidas, Fila
Goal #2: Provide the best customer service.
Sportivo wants its employees to always go the extra mile to ensure customer satisfaction and
will encourage its customers to take surveys. We will provide exceptional service and we
expect our employees to maintain customer ratings above 95%
Goal #3: Implement a new accessory line.
Sportivo is currently researching newer products to add to our collection. We want our
company to provide customers with the necessary accessories for all their shoe needs.
 8.0 MARKETING STRATEGY

8.1 Product strategy

Product benefit in a hierarchical format

• Core benefit- the core benefit of Sportivo is providing safety, protection and
hygiene for barefoot.
• Basic product- shoes.
• Expected product- Rough and tough shoes for outdoor use without any
maintenance.
• Augment Product – Outdoor shoe with all round comfort (bend easily without
breaking and offer comfort in various terrains, cushion for great comfort).
Additionally, it will be a smart shoe, wherein the customer would be able to
capture the steps travelled through the automated teller machine present on the
shoes. Also, integrated mechanism of shoes will relate to the mobile phone
that will calculate the body mass index and will tell how much more is
required to travel to remain healthy.
• Potential product- Recyclable sole/upper material and natural tanned leather
and light weighted around 350g (for single shoe). The shoes will be tied
automatically with the help of vacuum pressure.

8.2 Pricing Structure

The price structure of Sportivo is based upon the market penetration strategy. Price range is
being offered to attract more and more customers.
8.2.1 Sportivo

Category Price range (INR)

Powerflex 4000-5000

Eco energy 5000-7000

Ad smart 7000-10,000

8.2.2 Woodland
 Product category Price Range (INR)

Boots (Shoes) 2495-5695

Sandals 2195-3695

8.2.3 Adidas

Product category Price Range (INR)

Casuals 2756-5795

Sandals 1795-3395

Sports shoes 3995-5295

8.3 Distribution Strategy

• Multitrade: Multi trade basically refers to the stores where electronic payments are
possible. to improvise upon our distribution strategies under the multi trade option we
are targeting all the prominent brands such as Aditya Birla Group’s Lifestyle.
• Controlled outlets: controlled outlets are what McDonald’s follow. At present we
have 120 outlets PAN India, out which 80 are present in tier to 2 and 3 cities. The target
is to achieve a figure of 300 in terms of the numbers of outlets present across India. For
the same we have proposed a Delhi based model in the schematic representation shown
below. The same could be replicated with slight variations that would depend upon the
geographic, demographic, economic and psychographic conditions of the particular
area. We are currently focussing on opening stores in metropolitan cities.
• Online platforms: we are also trying to focus on the online platform in order to
increase the visibility of the brand in tier 1 cities plus also catering the competition that
is increasing exponentially on the E- Commerce platforms.
Customized outlets: Customize your shoes in 60 minutes.

Aditya Birla
group
Lifestyle,
other multi 80
outlets Plant
trade
present. 5 stores in
in India. each metro
Distribution city
centres
Myntra
Flipkart
controlled- Amazon
online Customized
Multitrade Shop
owned outlets platforms shoes outlets
 8.3.1 Targeting Tier 1 Cities

Delhi Delhi
Mumbai
Kolkata
Bengaluru
Hyderabad
Chennai

Now in Delhi here are the areas we can open our outlets-
North West East South
Kriti Nagar Janak puri Mayur Vihar Defence colony

Kamala Nagar Patel Nagar Lajpat Nagar

Sakti Nagar Punjabi Bagh Greater Kailash

Model town Rajouri Garden Vasant Kunj

Green Park

Saket

North-West West-East East-South South-west

Rohini

Pitampura

Engineering
enclave
A similar model can be employed to the other major tier 1 cities.

8.4 Promotional Strategy

Since one of the major non- financial objectives of our company is to increase brand awareness
for which promotion plays a major role as it is one of the most powerful tools which is
instrumental in positioning the brand in the minds of the potential consumers. The total
estimated budget allocated for the promotional strategy is INR 9,80,40,000. The breakup of
the allocation is provided through the means of schematic representation.

You tube (web Push Message, On retail

Discovery, (Sunday Email
series, stores
Net Geo, magazine) commercial Marketing
Sport ads before the
WhatsApp
Traveller videos and),
channels Marketing
magazine Facebook
(feeds)

Make android.
or iOS
8.4.1 Media Promotion

Table -7

Media Analysis

Internet YouTube
Per view = $ 0.1
Rate in INR = Rs. 7.3
Views= 10,000 per day
Monthly= 2160000
Yearly= 25920000
outdoor Rent= Rs. 30000 to 240000
Targeted cities = 8
Annual rent= 1920000
Television price/week-Rs. 550000
Month= 4950000
annual expense = Rs. 59400000
Magazine/ Newspaper 1600000
Every Sunday

8.5 Salesforce Strategy

Rational for salesforce strategy:

1.0 Customers feedback

1.1 Sale personnel are sometimes not able to deal with different set of customers
due to lack of understanding of the products or the detailed specifications.

1.2 Not able to deal with the technology deployed by the company.
2.0 Due to this around 10% customers are lost by stores monthly.

Where the average sale of store is Rs.5,00,000, if these were potential customers
so we have lost Rs.50000 monthly.

Current outlets 80
Sales forces (outlets) 4 (in each outlet) x 80= 320 (approx.)

Sale force training budget (estimates) 320 x 10000 = Rs. 32,00,000 (yearly)

shows loss of sales (yearly)

Rs.50000 x 80 Rs. 4000000 (estimated loss in a

year)

Loss of sales Rs.6,00,000 Cost of

training Rs.4,00,000
Total saving Rs. 2,00,000

Budget Budget of training Rs. 4,00,000

9.0 Financials
9.1 Project profit and Loss statement (Estimated)
Particular Amount (Rs. Crore)

Income
Sales Turnover 270
Excise Duty 2.68
Net Sales 267.32
Other Income -0.28
Stock Adjustments 1.822834431

Total Income 268.8

Expenditure
Raw Materials 26
Power & Fuel Cost 2
Employee Cost 23
Other Manufacturing Expenses 8
Selling and Admin Expenses 1
R&D expenses 20
Miscellaneous Expenses 40

Total Expenses 120

Operating Profit
PBDIT 148.8
Interest (60 CRORE @15%) 9
PBDT 139.8
Depreciation 6.42
Profit Before Tax 133.38 10
PBT (Post Extra-order Items) Tax 40.014

Reported Net Profit 93.366

9.2. Cost Classification:

Cost for Sportivo

Total cost

Operating expenses

Direct labour 2304000

Materials 11,52,0000

Subtotal 13824000

Non-operating Expense

Promotion 32,00,00,000

Product development 2,00,00,000

Customer service 9600000

General & administrative 1000000

Subtotal 33,06,00,000

Total 36,44,24,000