Create a 6 page essay paper that discusses The Shoe Shop.Download file to see previous pages… The shoe industry, together with the apparel and accessories sectors posts increases in total turnover i

Create a 6 page essay paper that discusses The Shoe Shop.

Download file to see previous pages…

Haven’t Found The Relevant Content? Hire a Subject Expert to Help You With
Create a 6 page essay paper that discusses The Shoe Shop.Download file to see previous pages… The shoe industry, together with the apparel and accessories sectors posts increases in total turnover i
Post Your Own Question And Get A Custom Answer
Hire Writer

The shoe industry, together with the apparel and accessories sectors posts increases in total turnover in the past year which shows the increasing demand and market for these products. The creation and operation of The Shoe Shop which will commence on January 2008 is another quest to provide products for this profitable market.

The price of shoes in London is highly dependent on the strategies employed by the different industry players (BFA 2007). Business organizations which employ differentiation and niche strategies enhance the image of their brands by putting a high margin in their shoe products. A good example of this is Russell and Bromley where a pair of women’s shoes can cost up to ‘200.00 (Russell and Bromley 2007). On the other hand mid-priced companies charge from ’40 to ’90 for a pair of shoes. Shoe manufacturers who are utilizing cost leadership strategies can price more competitively at less than ’30. Ben Sherman can price as low as ’15 for a pair of women’s shoes. These pricing strategies of the competitors in the market together with the survey conducted to determine the target consumers’ preferences become the primary bases of The Shoe Shop’s proposed pricing strategies.

The pricing strategy of a business organization is one of the key elements to its success and even mere survival in the industry where it operates (Kotler 2005). In this consideration, The Shoe Shop formulates its pricing strategy as a way to efficiently generate the maximum profit available. The main aim of the pricing strategy is to cover all the company’s efforts in production and other activities, provide ample margin for profits, build the hip image that the company desires, and generate enough demand by pricing competitively and at par with other industry players.

In order to determine the pricing strategy, the market research department of the shoe shop conducted a survey which is geared in appropriate rice for a pair of shoes. Considering the target market of The Shoe Shop, the survey was participated by both men and women whose age ranges from 18-35 years old. The market research department concluded that within this age range, consumers are very much concerned about their image and prefer products which express what is hip and trendy. They are willing to pay more for image but most will not spend more than ‘92.00 for a pair of shoes. Thus, with this consideration, The Shoe Shop will price a pair of shoes in its product line for ‘70.00.

III. Per Unit Cost Statement

The costs associated with the production and marketing of the company’s shoes generally has a variable and fixed component. The variable costs are direct materials and direct labor both of which can be directly traced to the individual shoes being manufactured. Even though the sizes and design of the shoes vary, the company’s direct material cost ‘27.25 for each pair. Direct labour is 1.25 hours and employees are paid ‘15.00 per hour of labor. In terms of indirect costs, The Shoe Shop pays a monthly overhead of ‘7,500. The manufacturing department together with other functional areas, is serviced by the administrative and marketing department.

myhomeworkgeeks (28431)
New York University
15 MILLION STUDENTS HELPED!

Hire an Expert to Help you

Hire Verified Expert

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Have a homework question? Get help from verified tutors now!

Are You Looking For Assignment Help? We Can Certainly Assist You

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • ~Dissertations
  • ~Essays
  • ~All Assignments

  • ~Research papers
  • ~Term papers