10 Step Marketing Plan Orthopaedie Frey Far East , Incorporated Arch Supports

1. 10 Step Marketing Plan Orthopaedie Frey Far East , Incorporated Arch Supports Dalman*Dy*Doromal*Mejia*Ong Marketing Management January 8, 2011

2. Disclaimer • All information from this presentation is solely for classroom exercise. • The author has no professional connection with Orthopedic Frey • Data gathered and those projected may be fictional

3. What is an ARCH SUPPORT? Orthotic appliance placed inside shoes Provides underside support for feet Shaped to fit the arch of the foot

4. Why the need for ORTHOTICS? Accurately and precisely position the foot throughout the gait cycle Prescription fitted Symptom alleviation Proper gait alignment

5. Part I: PTM and Positioning • Main target: Athletes • Who want safety and comfort • Can choose from other retail manufactured products(i.e. Dr. Scholl, Nike shoes) • Other brands focus on mass production and providing comfort only • The market size is approximately Php40M - Orthopedic Frey covering approximately Php 400,000

6. Part II: Marketing Mix • Product: Orthopedic Frey Arch Supports • Price: Php 3,000 - 5000 per pair • Promotion: educational flyers, events, and company website • Place: Accessible office locations • Uses differentiation technique to step up above its competitors

7. PART 1: PTM AND POSITIONING

8. Step #1 PRIMARY TARGET MARKET

9. Who uses arch supports?

10. Frey Primary Target Market • Professional athletes of national teams • Daily training and competitive sports • Requires comfort during and after activities • Prevent injury

11. Step #2 NEEDS, WANTS AND DEMANDS OF THE PRIMARY TARGET MARKET

12. The Athlete’s Mind’s Eye Self- actualization needs I am complete when I reach my full potential with my game People will look up to me when I perform well Esteem needs Social needs I don’t want to be hurt Safety needs Physiological needs Fig. 1: Maslow’s Hierarchy of Needs

13. Step #3 COMPETITION AND COMPETITIVE POSITION MAP

14. Competitors Direct Competitors: LP Support Insoles Indirect Competitors: Rubber Shoes (e.g. Asics, New Balance), Comfort footwear (e.g. Crocs) Variables: Price, Quality, Customization

15. Insoles Battle in the Shoe Arch Support • Comfort for the feet • Functional support • Custom-made and generic fit • For additional padding • Shock absorption • “One size fits all”

16. Differentiation: Customizable and Price

17. Step #4 THE GAP, THE OPPORTUNITY AND THE POSITIONING

18. Filling the Gap Customizable to any foot type Internal contacts with sports teams (e.g. professionals, varsity teams, etc.) Technical know-how to educate on the necessity of arch supports Good quality materials Available repair

19. Taking a Stand: Differentiation Orthopedic Frey customizes arch supports to the customer’s foot type and size that promotes their safety during their activities (i.e. walking, running, basketball) Others focus only on patient’s comfort but may not ensure the aspects of safety – specific for athletes.

20. Step #5: Orthotics Playing Field $200M industry in the Asia-Pacific (2008) Claimed market share: 1% of all possible customers Monthly sales: Php 400,000 (60% of sales) Approximated local market size is 400,000/0.01 = Php 40 million

21. PART 2: MARKETING MIX

22. Step #6: Major Brands Orthopedic Frey Dr. Scholl Branded shoes

23. Step #6: The Product Orthopedic Frey Arch Supports are customized to specific foot type and size of the user Current Uses: for injury prevention and improvement of existing problems (e.g. Plantar fasciitis, Achilles tendinitis)

24. Step #6: The Product • Technicians of these products are trained in orthotics and prosthetics. • All products are hand-crafted using imported materials. • Made with quality, safe and durable materials.

25. Step #6: Ordering the Product MAKE AN APPOINTMENT TECHNICIAN WILL ASSESS OR CAST FOOT IF NEEDED FABRICATE ARCH SUPPORT CUSTOMER PICK- UP

26. Step #7: Promotional Ideas Educational flyer

27. Step #7: Promoting the Product Personal communication with doctors, coaches of professional and varsity teams Word of mouth among existing clients Public relations efforts via events (e.g. marathons, triathlons, tournaments, etc.)

28. Step #7: Other Promotional Ideas • Awareness campaign on the need for customized arch support to better cure and prevent sports related injuries • Use of billboards, health magazines, sports magazine print advertisements, flyers, and newspapers

29. Step #7: Other Promotional Ideas • Sponsor medical conventions, continuing medical education, forums, round table discussions, and company events • Send medical representatives to introduce and explain the benefits of the product • Target podiatrists, orthopedic surgeons and rehabilitation medicine specialists

30. Step #8: Pricing the Product P3,000 – 4,500 per pair of customized arch support Additional cost – ergonomic footwear (e.g. rubber shoes cost around P2500 to P5000 per pair) Insoles are cheaper (P250-500 per pair) and more readily available (e.g. Malls)

31. Step #9: Where to Find the Product Product available in main offices (Pasig and Cebu) Product is picked up in the main office Requires at least 2 visits: measuring and fitting Cash, credit and bank deposit transactions

32. Step #10 THE WINNING MARKETING FORM

33. Step #10: Winning Strategy • Orthopedic Frey’s main strategy for its arch support would be differentiation, because of its customized comfort aspect • It can target the niche market of athletes for their safety in their sports • It has an excellent product with user satisfaction guarantee

34. SUMMARY

35. Summary: Marketing Strategy Target Market Segments: niche market for athletes (e.g. Professional and varsity teams) Retain customization specialization The market size is approximately Php 40 million with Orthopedic Frey covering approximately Php 400,000 Proposition / Key Element – Market research to explore other differentiation strategies

36. 10 Step Marketing Plan Orthopaedie Frey Far East , Incorporated Arch Supports Dalman*Dy*Doromal*Mejia*Ong Marketing Management January 8, 2011