Professional Documents
Culture Documents
Batingal, Marinella
Crisostomo, Monique
Prado, Paula
Havaianas Aqua
A paper submitted in partial fulfillment
Crisostomo, Monique
Prado, Paula
BS COMTECH
ON 14 October
2009
I. Marketing Background
1. Market Size
Philippines wherein 9.7% was spent on footwear amounting to P13.3 billion. It was
shown that from the review period of 1995 to 2007 spending on footwear went up
producing 46 to 51 million pairs. In fact, in 2006, the country made the footwear
steadily grown in terms of volume and value. In 2006, the world footwear retail
volume reached up to 6,989,852,700 units which equaled to the world retail value
footwear, 37% from men’s footwear and the rest on children’s footwear. The Asia
46,986,800 US dollars.
Figure 1.1 World and Asia Pacific Footwear Market Sizes from 2001 to 2006
es es
Footwea World 5484737 5646936 5860482 6208749 6580605 6989852
r - Retail .7 .4 .3 .2 .7
Volume
- '000
units
Footwea World 157709. 156632. 171254. 186967. 195254 201903.
r - Retail 5 3 9 5 1
Value
RSP -
US$ mn
Footwea Asia 1863219 2018589 2136789 2255144 2409672 2651438
r - Retail Pacific .9 .9 .4 .9 .4
Volume
- '000
units
Footwea Asia 37200.2 38090.1 40621.2 43771.2 45484.2 46986.8
r - Retail Pacific
Value
RSP -
US$ mn
Figure 1.2
Source: Euromonitor International
Figure 1.3
Figure 1.4
Source: Euromonitor International
Figure 1.5
footwear renovating to a more sporty look, the sports or athletic footwear market
grows. Sports shoe brands such as Nike, Reebok, New Balance and Adidas have
showed to have greater market shares in the footwear industry. Nike tops them all
by being the single largest brand. It has become a recognized brand thanks to its
Global
Share (%)
Keds/Pro-Keds 203 1
2. Market Trends
workforce. With the growing education sector, women become more educated
opening more working opportunities and even higher incomes for them. Women
then opt for marrying at a later age since their careers have become a high priority
for them. On another note, better child care facilities are being offered which makes
it easier for women to join the workforce. With this, women enjoy increasing
Since women earn more, they also spend more. A mounting trend with the
women of today is retail therapy. To women, footwear has been an important item
to spend for. Subsequently, given the women’s priority for their careers, an
increased awareness has dawned on them of keeping fit and healthy for such a fast-
paced lifestyle. Athletic footwear has then become another priority in terms of their
range of footwear. Comfort and style are essentially valuable factors in their choice
of footwear.
Aside from women, young adults have also opt to marry at later ages such as
their thirties. In effect, young adults have become big spenders of clothing and
footwear. Moreover, they tend to buy these more frequently and go for quality
products. In line with the influence of media, they have shown greater preference
for products that are fashionable and trendy. They have become less formal with
their clothing and footwear. Men prefer sportswear and women prefer to be less
formal.
Health concerns
Organization, there are about 300 million obese people and approximately one
billion overweight people. In Asia, the Philippines is considered as the third fattest
population right after Malaysia and Singapore. There are approximately five
shoes and other specialty footwear. Moreover, an increasing awareness of this issue
leads to interest in physical activities which, again, would pave the need for
Casual attire has been a favorite for various kinds of social settings. With
people’s changing mindsets in regards to fashion, casual attire has then become
acceptable in even formal settings like the workplace. More than that, casual attire
has become a general preference for dressing. Athletic footwear is a sure key item
specific needs for their activities. In response to this, companies have developed
specialty lines which specify whether the shoes are meant for running, biking, and
other categories. Product development has been ongoing to cater to these needs.
The development of new technologies for shoes widen the possibilities of generating
more products. For example, the Nike Lunar Glide provides a unique cushioning
B. Market Profile
the athletic footwear market. Furthermore, since there has been an amplified global
different kinds of activities may it be sports or even social events. With all the
activities that the contemporary Filipino has to do, comfort becomes a big deal
equated with athletic footwear as well as with new alternatives like Crocs and
Havaianas.
price and specific function. Slippers are indispensable in any household whatever
demographic the consumer may belong to. Athletic footwear also seems to be a
compulsory item for kids and teenagers since they need this for a required basic
subject, Physical Education. It is also one of the most used type of footwear since all
the different market segments engage in some kind of strenuous physical activity.
The purchase of other kinds of footwear would vary depending on the consumers’
designers and the like. The increase of purchase of footwear would diverge
depending on the season and footwear type. Consumers would usually purchase
the other hand, consumers would usually find themselves occasionally buying the
Nike, Adidas and New Balance which continue to lead the market. They are
considered leaders for the latest fashion trends and technologies. Moreover, their
incessant strong brand awareness efforts make them the major preferences when it
comes to footwear.
C. Environmental Analysis
Opportunities
With the media saturation today, sports has undeniably become more
available to people. Even with the issues of recession, sports has been an aspect
that people continue to pursue because of its usage as a stress buster. In fact,
athletic footwear.
Fitness Hype
fitness. Since Filipinos have been more concerned with leading healthy lifestyles,
they have been more intact of ways to become more fit. Thus, the emergence of
gyms, supplements, specialty drinks and the like. Most especially today, more and
more people are hitting the gym and engaging in physical activities. This doesn’t
just include the young and on-the go consumers. More than that, the Baby Boomers
are more apprehensive of keeping fit and healthy. They become a more attractive
market as fitness is now a high priority for them. Aside from that, they have more
money to spend on such a cause. They would then want to participate in different
Beach tourism
beaches. Most popular of these beaches are Boracay and Palawan. In line with this,
many Filipinos and foreign tourists become aware of the different offerings at the
beach especially water sports. Some of these water sports would include water
skiing, parasailing, windsurfing, wakeboarding and the like. For these off-the court
outdoor activities, a growing market is building up for athletic footwear that would
Although a great number are interested in sports, this would not always
translate to them actually engaging in it. Some are just confined to consuming
sports simply by just watching it. Nevertheless, this inclination to sports influences
their choice of fashion. More than ever, celebrity athletes have proven to be icons
even in the aspect of fashion. This has pushed athletic footwear more to be
As of June 2009, the National Statistics office has issued that the Philippine
population numbers about 92,226,600 with gender distribution being almost equal.
As of 2005, teenagers, those in the ages of 13 years old to 19 years old accounted
for about 12,771 while young adults, those in the ages of 20 years old to 29 years
old accounted for about 15,125. Due to this, it has been expected that those in
effect, other consumer goods manufacturers find that the higher income segment
shows to be an attractive group to focus on. It shows that basic necessities like food
and shelter aren’t the only expenses Filipinos value. The higher income segment
still proves to value brand equity and product quality. Given the high pricing for
Nowadays, rather than going for just the design of the footwear, consumers
have become more particular of its fit. Comfort deems not only to be a factor but a
major clincher in their choice of footwear. True to this, there has been an evident
rise of footwear brands and lines that offer different kinds of specialized technology
intended for maximum comfort. For example, Crocs features their Croslite material
Threats
income for clothing and footwear. Across all consumer incomes, it has shown that
consumers spend the same percentage for footwear. This could prove to be a
Because of the presence of informal retailers like tiangges which offer China-
private labels. Due to the economic situation of the Philippines, Filipinos have
become more conscious of prices. Since these kinds of footwear are 50% - 80%
cheaper, these have been most especially favorable to those who have lower
income. Although, over time, it is expected that these consumers would eventually
Since most of the brands are riding on the same marketing strategies in
terms of product, price, place and promotions, it makes it hard for both competitors
and consumers to mark a distinction for the different products available in the
footwear market. By product, most of the competitors have been riding on the same
the same target market also have relative prices. By place, competitors have
Celebrity advertising
practices for market leaders such as Nike and Adidas. In the world and in the
Philippines, Nike gets sports celebrities as its brand ambassadors. Because of such
efforts, there is great awareness of these brands. Due to the values that brands
embody through such endorsements, many aim for these kinds of products.
activities. Because of the changing trends in fashion, athletic footwear is now seen
as an option for casual wear. Moreover, there has been an increased penchant for
footwear that has comfort as a key feature. More people are then turning to athletic
that would make their products more appealing than just the average offering of
comfort and style. Furthermore, brands also try to keep up with other emerging
trends. For example, there has been the development of incorporating iPods with
footwear. Also, the creation of new fashion lines for different seasons garners as a
A. Competitive Positioning
The group has chosen 4 main competitors in aqua shoes footwear namely Nike,
Adidas, Speedo and Keen. Nike, Adidas and Speedo are known for selling quality
footwear, thus having strong brand loyalty from customers. Keen is not well known,
but the group believes that Keen is the strongest competition to our proposed
product as they sell products that offer both design and function.
Nike basically promotes their aqua shoes as “second skin” of the foot. This is
because the strongest feature that their aqua shoes supposedly have is a very
strong grip. It is designed primarily to have strong grip and traction on wet surfaces.
Adidas promotes their aqua shoes as having a “360 degree cooling” for the entire
foot. The technology they used on their shoes is basically designed for comfort. It
also adds to the given feature of aqua shoes which is having good traction against
They promote their products as “developing footwear from the inside out.” Their
drainability, grip and comfort. Keen differentiates itself from the other competitors
as they offer eco-friendly products that are made out of recyclable and
biodegradable materials. Their aqua shoes for women are mainly promoted as
Based on the clothing and footwear retailers brand shares by value of 2005-2008
in the Philippines, Nike brand under Nike Philippines Inc. is the said market leader in
the footwear industry with a 2.2% sales value last 2008. Nike is at the same level
with Levi’s under Levi Strauss Philippines Inc. with also a 2.2% sales value last year.
They are followed by Adidas under Adidas Philippines Inc. with a sales value of
0.9%. Bench, Cinderella and Penshoppe each has a sales value of 0.7%. Hang Ten
and Rusty Lopez have 0.3% and 0.2% sales value respectively. Speedo under Sprint
International Inc. and Oygen each has a 0.1% sales value. Thus, all the other
competitors under clothing and retail footwear share the remaining 92% of sales
distance; and the other companies which offer athletic footwear will fall under the
market nichers.
The following table will show only the 3 chosen main competitors in the athletic
footwear industry, along with their percentage of sales in value in year 2008.
Based on the data showing the trends in clothing and footwear specialist
retailers in the Philippines, the specialist retailers are affected by the economic
downfall, thus resulting to a minimal sales growth at 4% and sales stand at Php92
billion. However, up-market brands or those international brands still stand strong
their quality and higher loyal customer base. These brands maintained and even
increased their shares because of higher pricing strategies that they imposed. In
fact, Nike retained its leadership in the clothing and footwear retailers with sales of
Php2.02 billion. Levi’s followed Nike with its sales reaching to Php1.97 billion. These
brands focused on their image of providing higher and better quality of products
balancing their higher prices. Nike had the highest increase in share last 2008
because its customers were not affected by their pricing strategy. These
international companies will continue using their products with its brand name to
The following tables show the value in sales and the growth in the value in sales
of clothing and footwear retailers in the Philippines from year 2003 to 2008.
Sales
Php
million
million
for swimming,
* 45 retail stores
Ian Thorpe
nationwide
Michael Phelps
Keen shoes
globally at
lesser prices
The previous table presented showed the 4 chosen competitors in the athletic
footwear industry along with their different marketing strategies for a sample of
Product
Nike has an existing product designed as aquatic footwear named Nike Classic
Aqua Socks. The product is designed to have a very strong grip that would feel like
the “second skin” of your foot. Embedded is a soft sock liner that adds comfort for
engaging in water sports activities. It also offers grip and traction on wet and
slippery surfaces. Adidas’ existing aquatic footwear is called Boat CC. Its design is
based on the classic boat shoe. CC stands for ClimaCool, a technology which
provides “360 degree cooling for the entire foot.” It is basically designed for comfort
through its synthetic lining and slip-on construction. One of its features is the water
grip outsole to give good traction even on wet and slippery surfaces. Speedo is very
much focused on swimming apparel and footwear. Thus, they offer a lot of different
aquatic footwear. One of which is the Women’s Aqua Jane Slip-On Water Shoe. For
its rubber sole, they used a technology called Hydro Tread that offers maximum
traction and water dispersion. The product also offers 360 degree ventilation. It is
also constructed as a slip-on with elastic gore for a more secure fit. Keen promotes
Madrid Ballerina through the shoes’ femininity and function. The natural gum rubber
Each company had uniquely labeled and named their aqua shoes. The
competitors din not show a clear system on the packaging used on their aqua
shoes, except that mainly their shoes are packaged in large conventional boxes.
Speedo uses recyclable cardboard sourced from Forest Stewardship Council (FSC)
certified well-managed forests. For some products, the boxes contain product
information.
Price
The price range for aqua shoes range from Php1,500-4,000. Among the
competitors, Nike offers the lowest price. Adidas’ is priced higher than Nike’s aqua
shoe. Speedo’s aqua shoes prices differ by the features of the shoes that they sell.
Same as for Keen, the prices also differ depending on the kind of aqua shoes since
both Speedo and Keen offer a wide range of aqua shoes. The prices differ
depending on the technology used on the shoe and the size and quality that they
give. Basically, aqua shoes with fewer materials used are priced cheaper than those
which are made up of different materials that would help the shoes perform better.
Promotions
from different sports. Nike offers a lot of sponsorship arrangements with different
famous athletes like Michael Phelps, which Nike offered recent endorsements to for
their swimming apparel. They also appoint their athletes to be their brand
Adidas also focused on sponsoring and endorsing celebrity athletes and thus also
focusing on the younger customers. They have endorsed world champion swimmer,
Ian Thorpe. Just like the other athletic apparel companies, Speedo associate and
promote their products through endorsing top swimming athletes like Natalie
Coughlin and Amanda Beard who have competed wearing Speedo. Keen had a
different approach, being known for producing eco-friendly products. Planet Store, a
retail brand store with the same advocacy of recycling and using biodegradable
materials, tied up with the manufacturer of Keen and decided to sell their products
Mainly, companies try to create much brand awareness through the use of
celebrity and sports advertising. Most especially in the season for particular sports,
some brands such as Nike and Adidas launch huge campaigns to incorporate it in
their products. In the Philippines, Adidas tied up with UAAP teams to make use of
their products. It would then help increase the demand for athletic footwear in the
season for that particular spoor. People usually show a greater following for
Place
There is a big number of Nike retail stores in our country. Just like Nike,
Adidas has the same number of retail stores nationwide. Speedo has the lowest
number of retail stores in our country compared to Nike and Adidas. Keen sells
Athletic footwear is very accessible since they are available in department stores
and sports specialty stores. The multinational brands would sometimes have their
own specialty stores which would usually have a wider range of product lines
compared to the department stores. Aside from malls, they have also situated
themselves in some gasoline stations. On a different scale, Filipinos who are more
this is the presence of such products in local market places, tiangges and known
Athletic footwear had the highest market share in the previous years. Nike is
the leading brand while Adidas was one of the sport footwear companies to
contribute in topping the market shares. They have strengthened their brand equity
companies. Stronger relationships between customers were built, thus creating high
income from their customers. The strong branding of the top sports companies
stabilized the uprising challenge brought by the idea of private labels being the way
to gain profit and increase sales. This idea of private labeling is a concern to brand
manufacturers because it caused price wars that decreased the average unit prices
of products.
contracting agreements with big sports celebrities. Sponsorships have become the
normal advertising and marketing strategy which will result to customers’ higher
strategy that will surely continue and grow. However, a downside here is if the team
or the athletes endorsed perform poorly, the brand would also be affected.
great effect on the sports companies like Nike and Adidas as they were accountable
for the growth of sports apparel as the clothing trend among youth today. Due to
the strong effect of endorsements and marketing strategies done, huge sports
events have increased the value of the brands of the different sports companies to
their target young customers. Even to the extent of different controversies being
thrown at some companies like Nike, sporting events still continue to increase
Nike’s value to their target market due to the sponsorships and endorsements they
make. For a fact, the 2 leading sports apparel manufacturers, Nike and Adidas, top
footwear sales.
and footwear, like Hydro Tread and Clima Cool in aqua shoes. These are all done
due to the main purpose of providing comfort and efficiency in the said products.
However, the companies would thus price their products higher because of the
updated technologies applied in their products. This would probably weaken the
Another weakness is that all of the competitors fall under clothing and footwear
industry, not mainly on the athletic footwear industry. Basically, they have a larger
range of products to sell, thus not focusing only on athletic footwear. The
fact dominating the distribution of clothing and footwear, and will continue to be the
athletic footwear, there is a very weak competition in selling aqua shoes or casual
beach footwear since all the leading competitors, Nike, Adidas and Speedo, are not
giving much attention to it. For Nike and Adidas, they are more focused on selling
shoes for training, more like running shoes and those that are used for land training
especially. That could be seen on their advertisements as they usually spend more
apparel. Among the group’s chosen competitors, only Keen offers a number of
products which offer both design and function. Since only a small number of
sporting shops are offering and focusing on selling swimming apparel, opportunities
A. Company Profile
clothing and other sporting goods, and a range of international textiles. It also
operates a chain of retail stores and is active in property development. The
company is then divided into four business units – Sandals, Sporting Goods,
The company’s origin dates back to 1884 when Juan Echegaray and Robert
laborers. As they brought this footwear to Brazil in 1907, São Paulo Alpargatas S.A.
was founded and production immediately began the year after. Since then, the
company has gone through times of glory and decline, from being forced to stop
their production and to close several factories because of market crashes and
recessions to being the biggest textile conglomerate in Brazil with $422 million
revenue and 30,000 employees. Over time, it has introduced various lines of
clothing and footwear such the well known Havaianas flip flop in 1962, Madrigal
bedspreads in 1967 and US Top faded jeans in 1972, among others. It has also
bought competing companies such as Raihna Calça dos e Materiais Esportivos Ltda.
and Jeaneration. Moreover, it has acquired license to manufacture and sell top
brands like Arrow, Polo/Ralph Lauren, Van Heusen, Timberland Co. and Mizuno Corp.
Vision
To be a world class company with desired brands of sport products, shoes, and
industrial textiles.
Mission
high perceived value and quality and to create value for shareholders, employees,
operations.
Business Philosophy
Old: To turn out more goods, at lower prices, of the products in which it specialized
São Paulo Alpargatas S.A. intended to become more a service than a manufacturing
distribution
Organizational Structure
Auditors, Internal Auditing, CEO, and seven departments: Sandals, Sporting Goods,
shareholder and two are elected by the minority holders of common and preferred
shares. They are responsible for monitoring the execution of established policies to
The Board of Auditors consists of five members; three are nominated by the
controlling shareholder and two by the minority shareholders. They are responsible
Executive officers are those responsible for running the businesses and to
ensure that São Paulo Alpargatas pursues its established objectives. Also, to
Brazil
Argentina
□ Corrientes – Textiles
□ Tucuman – Footwear
Uruguay
□ Dolores – Footwear
Chile
□ Santiago – Subsidiary
United States
□ NewYork – Subsidiary
Alpargatas - Head Office
Havaianas Sandals
São Paulo Alpargatas S.A. has been establishing itself as a top quality
manufacturing and retail firm, catering to the high end market with products costing
twice as much as similar brands. It is one of the leading companies in the industry
and last 2007, it was given numerous awards and acknowledgements by several
institutions.
□ Best Company in the Apparel and Textile Sector, from Exame magazine’s
Maiores e Melhores
□ Best Company in the Textile, Leather and Apparel Sector from the Valor 1000
□ Best Company in the Apparel Industry Sector, from the magazine Financial
Officer
□ Most Admired Company in Brazil in the Sporting Goods Category, from the
Domestic operations of São Paulo Alpargatas S.A. are increasing their market share
as of the 1st quarter of 2009 while international operations are currently at an initial
generation.
Consolidated
International Operations
Brazilian GAAP
Figure 3.2
STRENGTHS WEAKNESSES
the company perceived that there is a ready market for Havaianas because using
rubber slippers is common to Filipinos. It caters to all ages and gender, offering a
wide range of slippers with different styles, designs and colors. Yet, it is geared
more towards the high end elite market as the slippers cost a little less than a
thousand pesos as compared to the locally made cheaper brands that are even less
than a hundred bucks. It has turned into a status symbol than a commodity.
The bulk of the Havaianas Philippines’ market are women, accounting for
70% of the buyers. Men compose 20% and the children at 10%.
More than just being rubber slippers, Havaianas represents three F’s thus
Buying Patterns
Havaianas has a huge cult following in the Philippines that some of its buyers
have gone so far to making it as a hobby with collections ranging from 30 to 250
pairs. It has become close to the hearts of the Filipinos that they want so much of it
as it makes them feel good. Despite its relatively high cost for a rubber slipper,
Filipinos are still inclined into buying them. Having at least one pair means
something for them; more so, since it has turned to a status symbol already.
Usage Habits
Havaianas has indeed transformed the local perception of flip flops. From
being the lowly plain footwear for home and beach, it has become a wardrobe
essential that are now proudly worn anywhere and everywhere. It is paired with
almost everything from bikinis and board shorts, jeans and shirts and even the
dressier pieces.
Segmentation
Havaianas goes across all market segments. It has products for all ages with
varied styles and colors to match different personalities and lifestyles of people.
Targeting
Havaianas is geared more towards the high end market but is not limited to
that. Though it is still more expensive than the department store variety, it has
changed over time to accommodate the needs of the customers. It had set the
Positioning
Havaianas has established itself as one of the first class rubber slippers that
people would spend on over the locally produced and imitations of the brand.
Despite its high price, it promises quality that is sure worth every peso spent on it.
Furthermore, it offers products that are not only fashionable but also durable and
reliable.
Marketing Mix
Product
Havaianas hails itself as the best rubber flip flops in the world. They are made
highly durable. A single factory in Brazil exclusively manufactures the slippers and
The flip flops’ soles and straps come in varying colors such as dark brown,
navy blue, black, magenta, gold, silver, royal blue, cyanic blue, tomato, white,
forest green, pumpkin, blush rose and lavender blue, among others. There is also
room for customization through an event called Make Your Own Havaianas which is
conducted roughly once a year in different areas in the Philippines. There they can
mix their preferred colors of soles and strap then embellished it with various pins
Price
Havaianas is indeed quite pricey as compared to the other brands of slippers being
sold in the market. The price ranges from 400 to 700 pesos for the children’s line
and 600 to 1,400 pesos for the adult collection. Special collections may also be
available at a higher retail value. These retail prices are standard for all the
Havaianas flip flops are available throughout the globe. In the Philippines,
Terry S.A. Incorporated is its exclusive distributor and the only one authorized to
market the brand. The slippers are then made available to the public through
reputable establishments and retailers that are carefully selected and discerned by
both Terry S.A. and Sao Paulo so as to ensure the brand’s integrity and the
They are not currently being sold through the Internet but the Havaianas
Philippines website can help you find stores where you can find the pair you want.
Not all styles and collections are available in all stores since the supplies in each
store vary from what they actually order from Terry S.A. There are also some
special collections that are exclusive to certain outlets. Furthermore, the collections
sold in the Philippines depend on the styles made available by Sao Paulo to the
Currently, there are 116 authorized Havaianas retailers in the Philippines and
BOHOL:
Panglao Island Nature Resort DIPOLOG CITY:
Pangloa Island Bingag, Dauis, Bohol Myx Boutique
(038)411-2599 General Luna St. cor.Ortega St., Dipolog City
Amorita Resort
Easter A. Lim Drive, Brgy. Tawala, ILIGAN CITY:
Pangloa, Bohol Shelves & Hangers
Juan Luna St., Iligan City, Lanao del Norte (0926)447-5357
(063)223-2652
Street Shop SAMAL ISLAND:
Quezon Avenue Extension, Iligan City Pearl Farm Boutique
Lanao del Norte Pearl Farm, Kaputian District, Island Garden,
(063)221-6335 City of Samal
(0920)917-1640
MARAWI CITY:
My Tiny Closet
Panggao, Saduc, Marawi City
OZAMIZ CITY:
Spruce
G/F Medina Bldg, Gallardo St. Ozamiz City
088-5215982
SURIGAO CITY:
Pieces of a Dream
Stall No. 6 City Commercial Bldg.,
Borromeo St., Surigao City
ZAMBOANGA CITY:
The Sidewalk
3/F Southway Sq., Gov. Lim Ave.,
Zamboanga City
DAVAO:
All Flip-Flops
SM City Davao, Quimpo Blvd. cor. Tulip Dr.,
Ecoland Subdivision, Brgy. Matina, Davao City
(082)282-0977
Apo View Hotel
G/F 1510 J. Camus St., Davao City
(082)221-6430
Bliss Salon and Day Spa
G/F Lanco Corporate Center, J.P. Laurel Avenue
Davao City
(082)225-5677
Chimes Specialty Store
Sales St.
(0918)942-4639
Choo Choo Baby
G/F Gaisano Mall, J.P. Laurel Ave., Davao City
(0918)910-3079
Jill & Co.
G/F Victoria Plaza Mall, J.P. Laurel Ave.,
Bajada, Davao City
(0917)717-0885
Martish Store
Villa Margarita Hotel, J.P. Laurel Ave., Davao City
(082)221-5674
Sunlab
2/F Gaisano Mall, J.P. Laurel Ave., Davao City
(082)305-2902
KORONADAL CITY:
Mia Lee’s Boutique
Promotions
Havaianas. Most of the promotions are done through print ads in various magazines
and events that they host and sponsor. Every year, there’s the Make Your Own
Havaianas event where Havaianaticos, avid users of the brand, can customized
their own pair of flip flops. They also had Havaianas Playback that relieved Filipino
street games.
slippers. Names of famous celebrities who are spotted wearing them are being
spread, particularly through word of mouth and their actual pictures. Moreover, they
make use of their website, mailing lists and various fanbase sites so they can
As to how successful are they in promoting the brand, the long lines to their
stores who even needed bouncers and velvet ropes to control the crowd are just
enough proof.
Havaianas are not worried with the current deluge of competition. They even see
Furthermore, even if there’s a lot of variety to choose from now, they are banking
on the brand’s popularity and superior quality that will make the consumers still
choose them over the others. Rather, what threatens them more are the existence
of imitations and the availability of the same products sourced via parallel
importation. With this, they are planning to release 20 to 25 new styles every two
months to encourage more buyers. They also try to find out what their customers
want in their Havaianas and make them closer to their hearts. Just recently, they
added a Pinoy touch to its flip flops with a theme “Put some Pinoy soul into your
step.” Whatever changes and makeovers Havaianas undergoes, they assure that
the “flexibility, grip, and comfort that has made Havaianas not just a flimsy fashion
trend but a dependable and durable footwear essential that will last for years to
come” will be constant no matter what. Moreover, they have been establishing a
loyal group of consumers that they even organize parties for them as a way of
giving back. Also, people who are subscribed in their mailing lists get the privilege
The Philippines have shown to be a country with changing lifestyles given the
increasing awareness with health and fitness opportunities. Add to that, the
Philippines has presented itself to be a venue wherein beaches have been local
hotspots especially for the young adults generation. Yet, the beach has also been
shifting its image from being just a vacation destination to being a pleasure haven
Since women have been marrying at later ages and prioritizing their careers,
there is an increase of value for their own needs and wants. Women in general are
pleasure items. In fact, shoes are just some of their rewards for themselves. With
their increasing incomes, they become more gracious of spending for things other
than their daily basic necessities. They have also developed different types of
leisure activities so as to compensate with their stressful lives such as the pursuit of
increasing consciousness for fitness. Moreover, they have also become more
adventurous in trying out sports that would usually be ventured out by males like
water sports. Given the increasing popularity of such activities, Filipino females
generate a higher demand for goods that would complement and aid them with
As of now, market leaders Nike, Adidas and Speedo have been the brands
known to consumers to provide water shoes that would precisely answer athletic
needs. Havaianas, Sanuk, and Crocs are the brands consumers go to for a more
casual yet fashionable choice of beach footwear. Still, Nike, Adidas and Speedo
present itself as more of a functional product. On the other hand, Havaianas, Sanuk
and Crocs just pose themselves as comfortable and stylish footwear without
riding the Banana Boat. However, Nikole is worried that she might lose
the flip-flops that she is wearing and if she uses her sneakers, she’s
afraid that it might get ruined when she gets thrown off the banana boat.
As she is swimming on the beach, she noticed that there are sea urchins
on the waterbed. Afraid of stepping on one, she decides to wear her flip-
flops to the water. Oh no! Her flip-flops floated on the water. She ended
up going bare foot. The next day, she borrowed her friend’s flip-flops that
had a strap. Confident of the slippers, she started swimming and walking
in the water. When she reached the corals, she stubbed her toe on one of
them.
Although she likes the ocean, she doesn’t like the scorching hot sand.
Even while wearing her flip-flops, she can still feel the hot sand going in
Ella, age 19, owns a pair of aqua shoes. She knows of the shoes’
benefits and uses, and thinks that it is practical for wearing in the beach.
However, she noticed, her aqua shoes doesn’t go with her bikini, summer
dress, and other beach wear. Also, the designs available in stores for the
With these various selections in the footwear market today, many females
still have concerns regarding the footwear that would best adjust to their lifestyles
at the beach.
The modern active Filipina, most especially young adults and teenagers,
continues to have fashion and personal style as her prevailing major factors in
footwear purchasing decisions. Nevertheless, she needs more than the usual
footwear that would provide her with the standard comfort and style. In pursuing
her active lifestyle at the beach, she also needs footwear that would deliver
Havaianas Aqua jumps on the opportunity of delivering the balance of both for the
Since Havaianas has established itself as a brand known for its comfortable
and fashionable footwear not only for the beach but for other casual occasions as
well, it differentiates itself away from only catering to athletes. As other sports
brands have been focusing on promoting itself as an athlete brand, Havaianas has
posed itself as brand for everyone who has sense for the trendy and the efficient.
Although Nike, Adidas and Speedo have focused more on the athletic needs of
women, they have not established themselves so much as a go-to for the fashion
concerns of women. Havaianas shows as a friendlier choice for females who are not
that keen with sports in general. Given this, a wider range of women of different
personalities would be more in touch with Havaianas Aqua. Add to that, Havaianas
Aqua directly wants to address the fashion needs of women who engage in water
sports. It also introduces aqua shoes as another alternative for casual beach
footwear. Moreover, with Havaianas being popular for its quality and fresh colorful
designs, it proves to be an ideal brand for the fashion-conscious and the brand-
conscious.
A. Demographics
POPULATION Female
CIVIL STATUS Preferably Single
SOCIAL STATUS Middle-Income to High-Income
EDUCATION Private Schooling
AGE 13-29
The proposed target market is the female population in the Philippines. From
there, Havaianas Aqua will be targeting those females aged 13-29, considered to be
teenagers and yuppies. As for the social status, Havaianas Aqua will be targeting
those belonging in the middle class and in the high class. It would also target single
women since they have more tendencies to be more active than those who are
The proposed product can be pricy for most consumers so Havaianas Aqua
will only target those with higher income. Since it is targeting the middle-income
class and the high-income class, the group assumes that these females are
that students from exclusive schools are more exposed to our company and the line
the highest average annual family income and expenditure, and among all the
e e
PHILIPPINES 148,000 124,000 172,730 147,180
NCR 266,0 218,000 310,860 257,930
00
CAR 152,0 192,1
00 126,000 26 150,508
Ilocos 124,0 142,3
00 102,000 58 123,502
Cagayan 126,0 142,7
00 138,000 40 170,347
Southern 184,0 209,7
00 84,000 46 92,999
Average Annual Family Income and Expenditure by Region 1997 to 2006 (in PhP)
Tagalog
Bicol 77,132 67,012 89,227 77,287
Source: National Statistics Office
Querubin
is planning to target those who are single because of the more opportunities given
for them to be more active in activities, like particularly in our case, water sports
CHARACTERISTIC
RESIDENCE
Urban 22.3 23.0 22.9
Rural 20.7 21.0 20.9
REGION
NCR 24.0 24.0 23.8
CAR 22.3 24.0 21.5
I 22.2 21.9 22.1
II 20.4 20.3 20.9
III 21.5 22.1 22.1
IV 21.4 22.1
IVA 22.7
IVB 21.0
V 20.8 21.5 21.4
EDUCATION
No Education 18.9 18.7 18.2
Elementary 19.6 19.8 19.6
High School 21.1 21.5 21.2
College or higher a a a
WEALTH INDEX
QUINTILE
Lowest 19.7
Second 20.6
Middle 21.5
Fourth 22.8
Highest 24.6
TOTAL 21.4 22.1 22.0
a - omitted because less than 50 percent of women married for the first time before
reaching age 25
Source: National Demographic and Health Survey: 1993, 1998 and 2003
Another component in the proposed target market is the age group which we
Havaianas Aqua is advertising to. The group is planning to focus on teenage girls
and female yuppies or female young adults, aged 13-29. Younger generations and
young adults during their leisure time tend to participate more in different sports
activities since they are more active and are usually more physically-capable to do
different kinds of activities. The proposed product caters to water sports enthusiasts
The group assumes that more consumers will be coming from this age range
because of the number of activities that they do and the higher amount of
activeness that they give. A huge factor in the target market is the proposed target
gender, which are females. Since our product, Havaianas Aqua, focuses on
functionality and design, the group believes that women could be the best market
to cater to. It is functional for women because Havaianas Aqua would enhance the
comfort and ensure safety of the feet in aquatic environments. Women tend to be
more careful of their feet so that it would not get cut, bruised or even smell bad. For
design, women are more attracted to the vibrant colors and images that would very
are much seen on fashion magazines that are usually read by women. The product
would also focus on the design to adhere to the company’s trend of creating fashion
would draw more attention to the female population rather than the male
population.
Population by Age Group, by Sex and by Region: 2000 (proposed target age)
B. Psychographics
just be carefree”
Personality Characteristics Wants to be ‘in’, Fashion-forward, Practical, Modern,
purchasing power
of Class A & B. They are those who seem to afford having a work-leisure balance in
their lifestyle. They can be really busy with school or work but they still find time to
have fun and a bit of rest and relaxation once in a while. They go to the mall, party
with their friends, do sports and even go out of town especially during long weekend
holidays. They are active and fun-loving. These people are also the ones who have
tendencies to follow trends as they feel the need to be sociable. Psychology says
that within this age range that people strive to look for their own identity and a
certain group they can belong to. Moreover, these people have a strong decision
and purchasing power so they can go buy almost anything they want. Though
teenagers still get their money from their parents, they relatively have full freedom
with their purchases. Young professionals, on the other hand, do not have much
responsibilities to pay for so they still can spend their earned money for their own
whims.
The group then see that these people are the ones most likely to buy and
actually use Havaianas Aqua. As they go to the beaches of nearby towns and
provinces, they can wear these aqua shoes and totally enjoy the water as they
would not bother about their feet getting hurt from the rocky and slippery surfaces.
They can be completely carefree and just have the fun they want. Furthermore,
they can wear these ultra fashionable aqua shoes to match their equally stylish
swimsuits. Havaianas Aqua would surely be a perfect fit for chic and trendy girls
C. Behavioral
often)
Loyalty Status Absolute / Strong
Readiness Stage Interested
Attitudes Toward Positive, Enthusiastic, Interested
Product
Even though the need for aqua shoes would probably arise during Summer,
Havaianas Aqua places itself as a product for any season. Essentially, Havaianas
Aqua is a key footwear item for beach trips since this is the primary setting for this
product. However, it also acknowledges an arising need for this footwear not only in
beach settings but also in other settings where water sports may be carried out.
Add to that, Havaianas Aqua also presents itself as a need for those who regularly
would offer both function and style. Following the trends become vital for females
since this translates what the mass population believes as fashionable. Moreover,
many females choose their brand of footwear based on its prestige and popularity
since this would equate to social status and quality. With their increasing awareness
have become more of a clincher for footwear purchasing decisions. Havaianas Aqua
aims to nail down the market of those who seek or are not even aware of these
benefits.
Havaianas Aqua intends to tap further into Havaianas’ already existing strong
cult following. It presents itself as another choice to satisfy any other concerns that
D. Geographic
Country Philippines
Region National Capital Region (NCR)
Cities Manila, Mandaluyong, Marikina, Pasig, Quezon, San Juan,
specifically the National Capital Region (NCR). The National Capital Region’s cities
are ‘Highly Urbanized,’ with ‘1st class’ income classification as described by NSCB.
NCR is also the center for Philippine commerce and includes the cities of Manila,
Mandaluyong, Marikina, Pasig, Quezon, San Juan, Malabon, Navotas, Valenzuela, Las
Class
CITY OF MANILA NCR, CITY OF MANILA, FIRST Highly Special
DISTRICT Urbanized
CITY OF NCR, SECOND DISTRICT Highly 1st Class
MANDALUYONG Urbanized
CITY OF MARIKINA NCR, SECOND DISTRICT Highly 1st Class
Urbanized
CITY OF PASIG NCR, SECOND DISTRICT Highly 1st Class
Urbanized
QUEZON CITY NCR, SECOND DISTRICT Highly Special
Urbanized
CITY OF SAN JUAN NCR, SECOND DISTRICT Highly 1st Class
Urbanized
CALOOCAN CITY NCR, THIRD DISTRICT Highly 1st Class
Urbanized
CITY OF MALABON NCR, THIRD DISTRICT Highly 1st Class
Urbanized
CITY OF NAVOTAS NCR, THIRD DISTRICT Highly 1st Class
Urbanized
CITY OF NCR, THIRD DISTRICT Highly 1st Class
VALENZUELA Urbanized
CITY OF LAS PIÑAS NCR, FOURTH DISTRICT Highly 1st Class
Urbanized
CITY OF MAKATI NCR, FOURTH DISTRICT Highly 1st Class
Urbanized
CITY OF NCR, FOURTH DISTRICT Highly 1st Class
MUNTINLUPA Urbanized
CITY OF NCR, FOURTH DISTRICT Highly 1st Class
PARAÑAQUE Urbanized
PASAY CITY NCR, FOURTH DISTRICT Highly 1st Class
Urbanized
TAGUIG CITY NCR, FOURTH DISTRICT Highly 1st Class
Urbanized
Source: National Statistical Coordination Board
The Philippines is an ideal market for Havaianas Aqua because of its long
summers and the presence of many beaches. The National Capital Region is ideal
for the proposed target market because all of its cities are urbanized and has total
population of more than 9 million. NCR also has an annual growth rate of
brand. Aside from flip-flops, the Havaianas brand is well known for beach and
casual footwear that is both durable and comfortable. Taking advantage of this, the
group aims to take part in the athletic footwear industry that provides aqua shoes.
The goal of Havaianas aqua for the next 3 years is to establish aqua shoes as a
In terms of sales, the group expects the aqua shoes to be profitable and have
a increase in sales by the end of the third year. Havaianas is already a well known
and established brand in the Philippines. With the introduction of Havaianas Aqua,
Havaianas will add to their already existing market and have more than flip-flop
The current competitions for aqua shoes, Nike, Adidas, and Speedo, are not very
aggressive in terms of advertising their aqua shoes line. On the other hand,
Havaianas aqua will stick with Havaianas’s current promotion strategy and will offer
the brand to the cities of the National Capital Region: Manila, Mandaluyong,
Marikina, Pasig, Quezon, San Juan, Malabon, Navotas, Valenzuela, Las Piñas, Makati,
Objectively, for the first 2 years, Havaianas Aqua will focus on establishing the
product. For the third year, the group expects that Havaianas Aqua will be ‘picked
up’ by the Philippine market and thus, the company can start distributing the brand
malls in provinces
Area NCR NCR NCR, Cebu,
Palawan
*Based on Terry S.A. Inc. (Havainas Philippines)
Based on the Terry S.A. Inc. income statement for year December 31, 2008,
sales reached Php205,018,894 for 2007 and Php231,337485 for 2008. Comparing to
Nike’s 2008 sales and market share on clothing and footwear retailers of
Havainas Philippines, which is 0.2%. For the next 3 years, we are expecting the
The group is proposing to sell the aqua shoes for Php 1,699 for solid colored
aqua shoes and P1,999 for printed aqua shoes, so the median price is about Php
1,849. Based on our survey, 60.98% of the target market size is willing to buy
Havaianas Aqua. The target market size for 2010, 2011 and 2012 are 774,800,
788,901 and 803,252 people respectively. So given the percent of buyers, target
population and the median price, the group developed an objective sales growth for
2010-2012. There is also a computed cost given the expected cost of sales,
For the next two years, Havainas Aqua will be focusing on retail stores in
NCR, specifically at malls where a big number of people go to and also we will focus
on high-end malls. For 2012, Havaianas Aqua will be selling at local malls in the
provinces. As for area, the focused target area is NCR since all the factors the group
is considering for the proposed target market is found mostly from people located in
NCR. For 2012, the company will be expanding its network to Cebu and Palawan
since they have many islands and beaches that tourists go to. Cebu and Palawan
durable and comfortable. Havainas, our company, will sell these aqua shoes with
variations of design every season, just like what they normally do with their flip
flops. Havainas Aqua will be distributing to selective areas only, mainly high-end
and highly-urbanized markets. The group also expects the loyal consumers of
Havaianas to still support the proposed product, but it will be attracting new users
as well. As for advertising strategies, the group will continue with what Havainas is
doing right now – through word of mouth, sponsoring events and magazine
advertisements.
“To active and fashion-forward teenagers and young professionals who frequently
go to the beach and engage in water activities, Havaianas Aqua is the aqua shoes
that will give the right covering and protection for your feet while keeping you chic
and trendy. With Havaianas Aqua, you can walk, swim and play on the beach
The aqua shoes that are currently available in the market seem to be
primarily targeted for water sports enthusiasts who of course need much protection.
These shoes normally just come in plain colors with barely any design at all. They
are just but aqua shoes. Though the athletes may not be really concerned with the
shoes’ overall look, they are not just the ones who need aqua shoes to protect their
feet. Practically everyone who goes to the beach need them including people who
are very much concerned with how fashionably they look like.
Havaianas is particularly known for its colorful and vibrant trendy flipflops
and so is how the aqua shoes would look like. Unlike the ‘usual’ aqua shoes,
Havaianas Aqua would be offered in a diverse range of styles, prints and colors so
as to cater to the varying preferences of people. They would be made through the
powerful combination of the authentic premium Havaianas rubber and a special
kind of fabric that will surely ensure comfort, warmth and protection for one’s feet.
The soles would be hard enough on the outside for extreme protection but would be
very soft inside for greater comfort. They could also have removable straps for
flexibility of the user’s preferences and the product’s functionality. Being very chic
and trendy, we want people not to just wear Havaianas Aqua on the beach but even
on normal days as well. They could indeed be very reliable especially during the
rainy season. As for the packaging, they would come in a clear transparent plastic
box so people can readily see them with their fabulous designs that are absolutely
worth noticing. There would also be a shoe bag so users can conveniently bring
Promotion-wise, Havaianas Aqua will stick with the current strategies of the
brand. Advertisements would be placed in teens, young women, fashion, travel and
sports magazines. They could also sponsor school fairs and parties and even water
sports competitions and events. The brand will reach out to our prospected
customers by being involved with the events their customers go to and products or
media that they use, still no television or radio ads. Hopefully, the shoe line would
and the high end populace wear them. Such people are known to sport branded
clothing and footwear and since Havaianas is a popular high end flipflop brand, they
Php1499 to Php1999 depending on its style and design – the simpler and not
printed ones for Php1499, the printed and more colorful for Php1699 and the special
and limited seasonal designs for Php1999. They may be indeed quite pricey but
they would surely be worth all your cents being the fashionable and reliable aqua
the Philippines, Terry S.A. Inc. and would be sold in all the Havaianas retailers in the
country. For the flagship and other big stores like All Flip Flops in Bonifacio High
Street, Havaianas Aqua would have an accent wall of beach background. Such wall
would have floating shelves displaying the current styles of the shoe line. For all the
racks or maybe even a small wall, depending on the store’s policies and
arrangements.
1. Product
previous Havaianas products, the brand name is followed by the product design
name. The logo, as shown in Figure 1, shows the Havaianas brand name and the
“To active and fashion-forward teenagers and young professionals who frequently
go to the beach and engage in water activities, Havaianas Aqua is the aqua shoes
that will give the right covering and protection for your feet while keeping you chic
and trendy. With Havaianas Aqua, you can walk, swim and play on the beach
beach often prove to be a problem for women’s footwear. For the modern woman,
these problems may be solved by aqua shoes. However, the styles and colors
available are unable to suit their tastes. Havaianas Aqua shoes give women aged
13-29, a more fashionable alternative to the current aqua shoes available in the
market today. It gives their foot proper protection but with style and comfort.
i. Product Description
The Havaianas brand is known for its colourful and vibrant flip-flops. The brand
represents three Fs: Fashion, Function, and Fun. The Havaianas brand is not limited
to the beach or swimming pool. They are versatile and can be worn on different
occasions.
Havaianas Aqua comes in seven different styles and ten colors. Each style comes
in solid colors and both solid colors with printed patterns. These styles are
They are made of sports mesh fabric, microfiber nylon fabric, neoprene, rubber
outsoles and insoles. The sports mesh provides a breathable and cool feeling for
the feet. The microfiber nylon fabric gives the aqua shoes the flexibility it needs.
The neoprene fabric is commonly used for wetsuits in scuba diving and wading
boots for fishermen for its warming effect. Medical support braces also use
• Solid and/or
Printed
• Garter strap to
place
• Available in 10
colors
• Solid colors:
Havaianas Aqua
Breeze
• Solid and/or
Printed
• Cool breathable
design
easy clothesline
hanging
• Available in 10
colors
Havaianas Aqua
Cabana
• 2-tone colors
• Cool breathable
design
• Solid and/or
Printed
Havaianas Aqua
Stream
• Solid and/or
Printed
• Diagonal garter
strap
Havaianas Aqua
Shore
• Solid and/or
Printed
• Criss-cross
garter design
easy clothesline
hanging
Havaianas Aqua will follow Havaianas’s current range of sizes. Its smallest size in US
Brazil US
Women 33/4 3
35/6 4/5
37/8 6/7
39/0 8/9
41/2 10
ii. Features
Havaianas Aqua are aqua shoes that gives its users’ feet protection while keeping
them chic and trendy, not compromising their style. Havaianas Aqua is still stylish
and versatile enough to be used even when not on the beach. It features 10
different colors: red, yellow, green, blue, orange, violet, brown, black, white, and
gray. Havaianas Aqua’s insoles are equipped with anti-bacterial properties that will
keep bacteria that causes odor to accumulate. It is also very soft to provide comfort
to the user’s feet. The shoes’ rubber outsoles on the other hand, is hard enough on
Compared to other brands like Nike, Adidas, and Speedo; Havaianas Aqua’s shoes
offers style, comfort, protection, and durability to its users. Though concentrating
more on style, Havaianas Aqua does not compromise the athletic aspect of aqua
shoes and presents adequate qualities similar to those of well-known aqua shoes
c. Packaging
Every Havaianas Aqua shoe will come with the tag shown in Figure 3.1. The tag has
a black base color similar to the original Havaianas slippers tag. It’s made out of
matted carton paper and it will feature the aqua shoes’ style name, size, and seal of
authenticity.
its consumers that what they’re buying is genuine Havaianas. It also assures the
Logo
Figure 3.1.4.
Size
Seal of
Authenticit
y
Havaianas Aqua would come in a clear plastic box (Figure 2) to emphasize
the shoes’ colourful design. The clear plastic box also represents water, which
coincides with the primary function of aqua shoes. The box’s length is 3.5 in x 10.75
in and has a width of 5 inches. Havaianas Aqua will not only come in a clear box,
but also in a shoe bag so it can be conveniently brought anywhere. The shoe bag is
made of nylon fabric in a shade of blue and designed with different sizes of circles
forming a sun with the Havaianas Aqua logo at its center. (See Figure 3.1.4.)
Figure 3.1.2.
3.5 in
5 in
10.75 in
Figure 3.1.3.
Figure 3.1.4. Shoe Bag
12 in
9 in
2. Pricing
a. Pricing Strategy
Our group will mainly use value-based pricing and pricing strategies based on
competitors. Our group will focus on good-value pricing strategies as our product
offers a fair price for both good quality and service. Also, value-added pricing will be
used as our product offers added features with corresponding charging of higher
prices.
A pair of Havaianas Aqua will have a suggested retail price of Php 1,699.00
for shoes with solid color designs and Php 1,999.00 for shoes with printed
designs. The prices of shoes with garters do not differ from those without since
the cost of the garter is only minimal. Compared to our competitors, Havaianas
Aqua offers a fair price, not the cheapest, but not the most expensive as well.
The prices we have set only range from Php 1,000-2000 since based the survey
we have conducted, 88% of the respondents are willing to spend only Php 1,000-
2,000 for aqua shoes and 83% of the respondents are also willing to spend only
The prices set are also cheaper compared to most of our competitors since
doesn’t serve a specific purpose unlike for example Speedo which best serves
swimmers or athletes, thus having a more expensive price since they offer
Havaianas Aqua shoes with printed designs are set with higher prices since it
offers a variety of patterns and designs which customers can choose from.
higher prices for printed designs of flip flops, thus our group plans to follow this
kind of strategy of setting higher prices for shoes with printed designs compared
that our group would be using materials that are already guaranteed to have
best features, like the Havainas rubber formulated to have extreme comfort and
durability. Even if the demand for aqua shoes is low, our group depends on the
existing loyalty and support of customers with the trusted brand of our company.
Also, based on our survey, most of our correspondents are willing to try out
Havainas Aqua due to the trusted brand and quality of products that our
company offers, which mainly gives us enough reason to set a fairly high price
for our proposed product. There would be a standard suggested retail price for
all stores.
3inches
TOTAL MATERIAL COST Php 792.55
COST HAVAIANAS AQUA (pair)
Materials Php 792.55
Packaging (clear plastic box) Php 239.52
Cost of Production Php 100.00
TOTAL PRODUCT COST Php 1,132.07
The cost of the specialized synthetic rubber was computed from the financial
statement of Terry S.A., the distributor of Havaianas here in the Philippines. The
other costs of the materials were computed from the research based on the usual
materials used to make aqua shoes. The cost of production was based on the
COMPAN PRODUCTS
Y
Nike Php 1,695
Classic
Aqua Socks
Adidas Php 1,995
Boat CC
Speedo Php 2,399 Php 959 Php 863- Php Php Php Php
n MJ MJ Ballerina
Havaiana Php 1,999 Php Php 1,999 Php Php Php Php
3. Place
a. Distribution Strategy
Havaianas Aqua will be using the same distribution strategy of Havaianas since they
will be sold in the same retail stores as the flip flops. It will be distributed by Terry
S.A. Incorporated, the brand’s exclusive distributor in the Philippines and the only
one authorized to market the brand. Terry S.A. was acknowledged to be the Best
International Distributor for 2008 by Sao Paulo Alpargatas so it is more than assured
that they will also effectively distribute Havaianas Aqua. The retailers are carefully
selected and screened by both Terry S.A. and Sao Paulo so as to ensure the brand’s
integrity and protection of trademark hence, the quality and authenticity of the
Unlike the other brands that sell aqua shoes, particularly Nike and Adidas,
Havaianas Aqua won’t be pulled out after the summer season but rather would be
available all year round, with its styles and designs to be updated regularly. It is the
shoe’s premise that they would be stylish enough for them to be used not only for
athletic and beach-related summer activities but also for casual day-to-day wear so
it should really be available throughout the year. Furthermore, with our problem of
global warming and climate change that causes unpredicted rains and
thunderstorms here and there, Havaianas Aqua should readily be at the line of sight
in times of need like this. Accessibility would be a key factor in the distribution so as
From the production in Sao Paulo Alpargatas in Brazil, Terry S.A. have the exclusive
rights to distribute Havaianas Aqua to the authorized retailers in the country, which
will then make the shoes available to the market. Currently, there are 116 of them
and
the retail outlets will depend on the orders placed by the stores themselves.
Therefore, there is a probability that not all of these retailers would be offering
Havaianas Aqua. Strategically, though, they would be made most available in the
outlets near the beach like those in Boracay and the huge stores in all urban areas
in the country, specifically Metro Manila, Cebu and Davao, where its target market
is more likely to be found – teens and young professionals of Class A and B, who
4. Promotions
Being an established pioneering brand in the Philippines, the brand name Havaianas
already serves as a major promotion strategy for the new product line, Havaianas
Aqua. Given the success of the promotion efforts of Havaianas Flip flops, Havaianas
Aqua will also bank on the same promotion strategies. However, since aqua shoes
are relatively unfamiliar to the general public, as shown through this paper’s survey,
Havaianas Aqua aims, at the same time, to increase awareness of such a product
and to create value for the modern Filipina women. Such awareness efforts would
project the features and benefits of Havaianas Aqua that would lead to its role as a
necessity given various environmental conditions – sandy, wet, rocky etc. Having
said that, it also follows Havaianas Flip Flops’ promotion strategy of showcasing
Havaianas Aqua would be largely promoted through artistic print ads strategically
advertisements. Much like Havaianas Flip Flops, it would sponsor or partner with
events that are generally related to the image Havaianas Aqua seeks to exude.
Lastly, Havaianas Aqua would take advantage of Havaianas Flip Flops existing
“Havianaticos”. Moreover, this would be deemed effective since the survey study
shows that most people know of aqua shoes through print ads and word of mouth.
b. Advertising
Print Advertisements
Following how Havaianas Flip Flops started promoting its product line, Havaianas
Aqua would also focus more on advertising through print ads. Such print ads would
either feature artistically designed and colorful layouts of its aqua shoes or photos
would help associate Havaianas’ aqua shoes line to Havaianas’ image as a colorful
and fun brand. In this way, Havaianas’ aqua proves itself to be go-to for fun,
fashionable and colorful designs. Print ads showcasing photos of models aim to
identify the lifestyles of Havaianas Aqua’s target market. Print ads showcasing
demonstrating just why Havaianas Aqua is a must have. Some of these could
imbibe a sense of fear to relate to the primary benefits that aqua shoes or
Havaianas Aqua would bring. These print ads would be in the form of posters,
Havaianas Aqua ads would be placed will be Mega, Preview, Cosmopolitan and
Preview.
Word of Mouth/ Bandwagon
Aqua hopes to depend on the word of these “Havianaticos”. Given that they already
have an online community for Havaianas and a Havaianas Mailing List, Havaianas
Aqua would use these systems to disperse information and other promotion.
Moreover, Havaianas Aqua would hold gatherings or events especially for this fan
base so as to assume them the role of opinion leaders for the new product line.
They would also be constantly updated regarding the product line. Havaianas
Aqua will not have any official celebrity endorser. Rather, it would count on
celebrities. Havaianas Aqua would then bank on spreading how it was used by these
personalities through other forms of media like fashion blogs, the Havaianas
Account
Account
Infomercials
In the events to come, Havaianas Aqua would provide infomercials regarding
the benefits of aqua shoes. In this way, the public would be familiarized with the
existence, usage, and value of aqua shoes. Consequently, it would also capitalize on
Havaianas Aqua as the pioneering brand for aqua shoes by showing its edge as a
Website
Aqua’s target market, Havaianas Aqua would also have its own part in the
Havaianas’ website. Aside from the general information it would give regarding
aqua shoes and Havaianas Aqua as a new product line, it would also include the
line’s different designs. Furthermore, the website would allow its visitors to look
over designs in a 3D way. They would have the advantage of being able to go over
the designs at different angles by simply hovering the mouse pointer over them.
c. Consumer and Trade Activities
Havaianas Aqua ads will be placed in strategic locations catering to its target
market. Promo materials would be placed inside malls where Havaianas stores and
authorized resellers are located. In some activity centers, Havaianas Aqua would
have exhibits or programs presenting the different designs of its product line.
Since the location of the Havaianas flagship store is also the area for Havaianas
Aqua’s target market, it is sure to have even greater promotion in Bonifacio High
In all the Havaianas’ existing stores, Havaianas Aqua would have attractive window
beach casual footwear staple. Since Havaianas retailers are different types of
stores, ranging from exclusive Havaianas retail outlets, to shoes and clothing stores,
department stores, sports shops and even spas, hotels and resorts, they would be
offered with different proposals as to how their Havaianas Aqua displays would look
like.
As for other authorized resellers, Havaianas Aqua would also have attractive
window displays depending on its deal with the reseller. Havaianas stores and
The design of the wall would vary depending on the season. Since Havaianas Aqua
are not just expected to be used for the beach, the wall designs would depict
varying setting concepts. For example, the wall design could be a beach setting for
the summer season while for the rainy. Along with these would be quirky little trivia
notes pushing the need for Havaianas Aqua. An example of a trivia note would be
as follows.
- It’s not the heat of the sun. It’s the heat of the sand! Walk, walk, burn!
Neoprene won’t take any of that! Your lovely footsies should have the best
against the cold and the heat! Whether it’s the chilly breeze or the scorching
heat, neoprene assures just the needed insulation for your feet!
- Havaianas Aqua is made with this neoprene to ensure your feet just won’t
stand out from the crowd. They’d also stand the heat, rain, wind and many
more!
- Walk. Run. Skip. Hop. Jump. Gallop. Dance. If only you really could at the
beach, right? Alas, going bare or flip flops aren’t enough. Rocks, pebbles, sea
urchins, crustaceans and the list goes on! They’re just all out to get our feet!
- You thought you could totally protect your feet by slipping on some rubber
shoes? Wrong move! The sand just won’t let you. A little here. A little there.
be used. It stands alone and may be placed beside the flip flops rack.
In Rustan’s department stores, Havaianas Aqua would have its own “center island”
mentioned.
4 feet
6 feet &
4 feet 8 inches
1 foot
e. Publicity/ PR/ Events
Aqua’s target market would be in. Opportunities in being involved in school events
product line.
Aside from that, Havaianas Aqua would hold its own fashion show and also partner
with other designers/ brands that have the same target market to be in their fashion
clothes and styles. Moreover, partnering with different designers/brands also help in
enhancing the image it’s creating to its target market given that these partner
designers/brands also uphold the same advocacy. This advocacy would be geared
to the modern, fun, and fearless Filipinas however diverse their lifestyles may be.
These fashion shows would not necessarily be confined to the beach. It could also
Havaianas Aqua would also have product launchings through sponsorships in beach
parties/events and water sports events or competitions. Such beach parties/ events
MTV. The mentioned television networks are known for hosting parties that offer
wide media coverage. Moreover, they are sure to bring in the target market for
Havaianas Aqua.
Also, Havaianas Aqua would hold its own launching beach party to bring focus to
this new product line. This event expects to invite lots of celebrities from different
industries to the event. Moreover, it would emphasize on the theme of fun and
buy our product which is 60.98% and the target market size. The sales value was
computed by multiplying the computed sales value and the products’ median price.
Year 1
Marketing Activity JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Billboards
In-store Promo
Year 2
Marketing Activity JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Billboards
In-store Promo
Year 3
Marketing Activity JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Billboards
In-store Promo
To start Havaianas Aqua’s first year, it will have its own launching
beach party. Other event promotions will still depend on potential clients,
the whole year round till its third year since Havaianas Aqua is still building
have a clear idea of aqua shoes and the market position of Havaianas Aqua.
It is geared towards creating knowledge and demand of its product line. Still,
for the first year, the focus would be in Metro Manila. In its second and third
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