Executive Summary
STAR insole is a special type of insole with an intrinsic temperature regulation system that allows it to warm the feet based on the outdoor and body temperature. The insole purges the need to buy many different insoles to use under different weather conditions. What’s more, the insole enhances the comfort, and reduces foot arch, which contributes to body fatigue. With a starting capital of £35,000, the anticipated business can run efficiently and start earning profits in its second fiscal year.
Introduction
In the past, people could purchase shoes with their insoles and never thought of buying another insole once the first one got torn. However, this habit has changed over the time, and now people purchase insoles for different purposes. Many companies have invested in insoles that serve different groups (Burns 2010). For instance, Adidas Company has invested heavily on insoles for athletes and particularly splinters (Burns 2010). Other firms have spent on Orthotic insoles, which are tailored made to meet different medical needs and environmental conditions. As the demand for customised insoles continues rising, most of the insoles available meet the general needs of the consumers. Therefore, the market segment, which requires customised insoles is yet to be fully satisfied (Waddington & Adams 2003). That is why we propose the development of Insoles (STAR), which warm the feet based on the outdoor and one’s body temperature. Majority of the customised insoles require one to regulate their temperature remotely. However, STAR insoles are developed in a way that they warm the feet automatically depending on changes in body temperature. Besides, the insoles control foot odour and realign the foot for enhanced posture.
Benefits of Business Opportunity
The shoe industry continues expanding, creating an enormous market for insoles (Cowley, Chevalier & Chockalingam 2009). Majority of the insoles available are designed to enhance placate and to prevent foot arch. Even though there are customised insoles that warm and cool the feet based on the weather conditions, such insoles require other devices like iPhone and Bluetooth to operate. Hence, consumers are forced to incur extra cost in terms of purchasing Bluetooth enable devices to use the insoles (DiGiovanni 2007). There is need for insoles that warm the feet automatically based on body temperature and environmental condition. Norris and Norris (2011) allege, “Whether you are an active participant in sports or don’t play any sport at all, but you are just spending a lot of time on your feet, there is no doubt that insoles are an absolute must have” (p. 123).
Many shoe companies do not invest heavily on insoles, as a way to reduce the cost of the shoes. Therefore, the shoes come with insoles that do not last for a long time (Storey & Greene 2010). It implies that consumers are left with no option but to purchase new insoles if they have to continue using the shoes. Consequently, anyone who wishes to invest in the insole market is assured of a ready market. One of the benefits of investing in STAR is that the investor is guaranteed of a ready market. Additionally, since the insoles operate automatically, they do not require a lot of add-ins, hence low production cost. As a result, while consumers would benefit from insoles that are long lasting, low priced and that keep their feet warm, the investor would enjoy high returns due to high demand of the insoles.
Customer Profile and Demand
Customer Profile
Investors require conducting customer analysis prior to launching their product to the global market (Salles & Gyi 2012). The analysis gives investors an idea of how the product would perform in the world market. STAR will first be launched in London before it is released to the international market. London is famous for a number of sports, which include football, tennis, swimming, athletics and baseball. Hence, the city is a potential market for the insoles. Sportspeople will be the primary target market for STAR. The insole will target individuals who engage in hiking, mountaineering, and winter sports. Besides, the STAR will target long-distance runners. These groups of sportspersons require light and comfortable insoles. The STAR insoles are light and soft. For this reason, they can be used by people who spend most of their time standing as well as sitting. Other groups of potential customers include the students and individuals working in Industries where they spend most of their time standing.
Demand
Ten years back, insoles and arch supports were treated as walker products. However, this perception has changed, and demand for insoles has increased significantly. One of the reasons there is high demand for insole in London is the aging baby boomer. As baby boomers become actively involved in outdoor activities like jogging and football, the demand for special insoles goes high (Martin 2005). Besides, doctors are advising people to use special insoles that regulate the temperature of their feet to avoid diseases like foot rot and arthritis. As a result, the demand for insoles is expected to increase. What’s more, the number of people suffering from obesity in London is on the rise. Doctors are encouraging individuals suffering from obesity to be physically active. This only means that the individuals will need shoes fitted with comfortable insoles.
Competitor Analysis
Running competitor analysis helps an organization to position its products differently to overcome competition (Ghoshal & Westney 1991). The chief opponent in insole industry that STAR will have to confront is Schuh Limited. Schuh Limited has been in the insole industry for a long time. Hence, it has experience in the industry making it a potential competitor. Furthermore, the company’s brand is known in the market. Thus, the company has an extensive customer base. Schuh Limited has adequate capital to fund advertisement, which STAR cannot afford. Nonetheless, the company has a number of weaknesses on which STAR can capitalize. The company has not invested in product diversification. Additionally, Schuh Limited does not manufacture insoles that warm the feet. Instead, it focuses on comfort. Another weakness is a lack of firm marketing strategies. Schuh Ltd has not invested in online marketing, a weakness that STAR can capitalize on to increase its market share. Schuh Ltd targets the adults only. Therefore, STAR can expand its market share by targeting both the adults and children.
Problems and Issues
The major problem that might arise when developing a novel product is attaining the desired size (Kirby 2003). STAR insoles will include a heating system that is sensitive to temperature changes. Hence, it might be hard for the company to come up with a thin insole that fits in all kinds of shoes.
Reflection
The idea to come up with insoles that warm the feet based on outdoor and body temperature emanated from personal experience. My grandmother was recently diagnosed with arthritis. She had been complaining of inflammation on the ankles for a long time. I could not understand how she contracted arthritis while she spends most of her time in the house. However, the doctor told me that it might be due to the kind of shoes that she wears. He advised me to get my grandmother shoes with insoles that will keep her feet warm. That is when I thought of developing insoles that warm the feet based on outdoor and body temperature.
Financial Forecast
A two months promotional campaign will be conducted to introduce the product into the market. The campaign is projected to cost about $2,500.
Startup capital
Income projections (value $)
Conclusion
STAR insoles will help to cut down on the rate of arthritis in London. Besides, the insoles will help sportspersons to participate in sports without worrying that their shoes might disturb. STAR insoles will not face stiff competition because the majority of the insoles available in the market do not have inbuilt temperature regulation systems.
Reference List
Burns, P 2010, Entrepreneurship and Small Business, Palgrave Macmillan, London.
Cowley, E, Chevalier, T & Chockalingam, N 2009, ‘The Effect of Heel Height on Gait and Posture’, Journal of the American Podiatric Medical Association, vol. 99, no. 6, pp. 512-518.
DiGiovanni, C 2007, Foot and ankle core knowledge in orthopaedics, Elsevier Mosby, Philadelphia.
Ghoshal, S & Westney, D 1991, ‘Organizing competitor analysis systems’, Strategic management journal, vol. 12, no. 1, pp. 58-73.
Kirby, D 2003, Entreprenuership, McGraw Hill, London.
Martin, T 2005, ‘Shoe inserts are getting a lift as boomers stay on their feet’, The Wall Street Journal, Web.
Norris, C & Norris, C 2011, Managing sports injuries: A guide for students and clinicians, Elsevier, Edinburgh.
Salles, A & Gyi, D 2012, ‘Delivering personalised insoles to the high street using additive manufacturing’, International Journal of Computer Integrated Manufacturing, vol. 26, no. 5, pp. 386-400.
Storey, D & Greene, F 2010, Small Business and Entrepreneurship, Prentice Hall, New York.
Waddington, G & Adams, R 2003, ‘Football boot insoles and sensitivity to extent of ankle inversion movement’, British Journal of Sports Medicine, vol. 37, no. 2, pp. 170-175.