Conceptual framework

CHAPTER 1

INTRODUCTION

Introduction

Nowadays, more and more products began to appear, which called hand-made products (made by hand). A special place this phenomenon took on the Russian shoe’s business. Luxurious handmade shoes have a special value due to the fact that during its creation requires special attention to details. (Ermilova V.Y, 2012)

Exclusive shoes – it is expensive shoes. And expensive shoes are not particularly welcomes mass advertising. Exclusive shoes - this is usually handmade shoes from very expensive exclusive materials with the original design. Available in one or more counterparts, due to which the price increases. These shoes are advertised in the specialized press, plus many firms arrange demonstration of new exclusive collections for its loyal customers by sending them an invitation to these events, and sometimes discounts, and catalogs with the goods of its products. Particular importance in the promotion of expensive shoes acquire PR-events (Andreev S.L, 2011).

Public relations (PR) - an important part of modern business. It's no news that in Europe the annual income of the top ten PR-agencies in the hundreds of millions of dollars. And in the world in this industry employs at least half a million people.

According to the Encyclopedia Americana International Edition, “Public relations consist of mutual understanding between an organization and its constituent publics” (1995). American Heritage Dictionary defined the term “publics” as the general community, the people as a whole, or a group of people sharing a common interest. (1973) In general we can conclude, that purpose of PR is to optimize the human relationships.

In the current world market rate of expansion and change the range of goods and services is unprecedented. Thus, the problem of promotion is becoming a key activity in any commercial entity. Public relations can help us to solve this problem.

In the first chapter of this study examined the trends and patterns of development of the shoe business in Russia, identifies the main means of influencing the audience in the promotion of certain trademarks and brands. In the second, practical part - The features of this phenomenon in the shoe industry as hand-made by the example of the company «Bosoff» and developing a program of discovery and promotion of new salons.

Project background

On the Russian footwear market today shoes can be classified according to several criteria (price, socio-demographic characteristics of its consumers, style, etc.). Promotion of shoes on the market depend on its membership in a particular category. Most of the moving brand of shoes belonging to medium price range, as it is the most popular among Russians.

In recent years, increasingly began to appear specialized shoe stores that offer a wide range of products, it enables the customer to choose the place of the brand, which he likes. At the same time it becomes more shops specializing in shoes by price category (shops selling expensive shoes, mid-market and cheap shoes).

When that starts more shoes advertised, the competition an increasingly important role is to acquire event merchandising, promotions, work to increase customer loyalty and sales outlets (Makarov T.N., 2008).

The degree of scientific elaboration of the chosen theme of the thesis differs a sufficient number of foreign and domestic works, both theoretical and applied.

Within the designated theme of graduate studies served as the theoretical basis of the works of foreign authors such as S. Black (1988) D. Dottie (1996), Leyhiff J. et. al (2001) R. Haywood (1999). In the works of these authors first examined the theoretical issues associated with the use of PR-technologies in the commercial sphere.

According to S. Black (1977) is of particular interest from the point of view of theoretical and practical orientation. It contains materials on the organization of 40 campaigns conducted in different countries. Each campaign is represented by a single scheme, which includes the following sections: background, assessment, research, planning, implementation, results of a PR - campaign. In this work you can find the original techniques and methods for creating a PR-event for any business - the organization.

Not less useful as a theoretical basis of the thesis was the work of some Russian authors: Aleshin (1997) M. Gorkina (2005) S. Varakuta and A Egorov (2003) G. Pocheptsova (2000).

M. Gorkina et. Al. (2005) reviewed the problems of organization and special events are reflected in the work and found the methods of working and professional requirements for PR-specialists.

Thus, the analysis of the scientific elaboration of the chosen theme shows that PR mechanisms are the engine of the process of product promotion on the market, ensuring the success of the company, a high reputation in the face of fierce competition

Problem statement

The Russian shoes market is very promising, including the terms of franchise businesses. This segment has undergone a significant evolution and today becomes more civilized shape.

In 2012, the Russian footwear market amounted to about 21.5 billion dollars, while in 2013 this figure reached 25.5 billion. By 2015, experts predict that the footwear market in Russia will grow by 10-16%. (Krylov, 2013)

According Kovalev T.M. (2013) it is obviously a qualitative development on Russian market. A few years ago, many Russians bought shoes in the flea markets or shops. Now the situation has changed radically: the well-being of customers is growing, and with it becoming increasingly popular branded shoe shops. And most importantly, the consumer starts to give preference to well-known brand, regardless of the price range and makes very different demands than ever before: the quality and variety of assortment of shoes at retail outlets are in the foreground.

In recent years, consumer preferences strongly shifted towards the middle segment, occupying about 30% of the total footwear market of the country. (Krylov, 2013) At the same time studies can detect a number of other features of the Russian shoe market, bearing sometimes irrational.

Andreev S.N (2010) found, that Russians usually choose for shoes, called "Italian", although in reality the product of Italian production is not more than 5% of total sales. This fact managed to take advantage of Russian companies, brand names which sound the Italian style: CarloPazolini, PaoloConte and several others. Time adopted strategy to market the brand with the "western" sound, as well as contract manufacturing organization in several countries enabled them to successfully deploy the very appetizing - the middle price segment.

Another curious feature of the Russian footwear market - the growing popularity of multi-brand stores. In this sense, the mono-brand network until they lose.

It is noticeable that more and more important in the Russian footwear retail sector began to acquire special offers. Orientation of products at a specific target segments does provide a number of advantages. The intensity of competition in specific niches is often lower than the market in general. Yes, and opportunities to meet the demands focused audience in this case much more, thus reducing marketing costs.

According to Kravets L. (2012) the footwear market in Russia are quite good prospects for franchising. Against the background of economic recovery apparent consumption growth - and the quantitative and qualitative. The country is rapidly emerging middle class oriented civilized trade and quality service. And this is an additional argument in favor of franchising.

Yet most experts agree: Retail sale of footwear in Russia - a very lucrative and promising business. Some networks with its own production, profitability reaches 60%, the average price segment it is 20% in the segment of expensive shoes - about 50%. However, the champions can consider themselves sellers of cheap Chinese shoes. In this niche some fantastic players record margin of 70%. Andreev S.N(2012),

Until now, the Russian footwear market is almost not represented foreign franchise. Most franchisors prefer the Latin alphabet in their brand name, but it is only quite predictable gesture to the buyers. Most shoe brands perceived as "foreign", in fact, has a purely Russian origin. (Surov S.O., 2011)

A recent study by Golubkov E.P (2013) shows that the most notable player in this segment - the company "Sportmaster" offering multifranshizny package of three brands: Columbia, O'Neill and Footterra. "Chip" project that, getting just three franchise partner can work simultaneously in three different target segments of sportswear and footwear. And the brand chosen well. Columbia - US trademark clothes and footwear for outdoor activities with more than 60-year history, Footterra - not bad untwisted brand shoes and O'Neill rightfully occupies a leading position in the global market sportswear and footwear for active youth.

A much slower pace, but still noticeable in Russia began to develop such a direction as hand-made. Hand-made affected many segments of the consumer market, ranging from postcards and finishing pieces of furniture handmade. This phenomenon has not spared side and the shoe business. About the features, benefits, and how to promote shoes handmade author tells in the practical part of his research.

Conceptual framework

1 .5 Project Aim and Objectives

The purpose of this study is to determine the methods and tools of public relations for the promotion of a hand-made shoe salon. Consider the example of the subject of the St. Petersburg firm handmade shoes «Bosoff».

Achieving this goal is possible with the following tasks:

1. To determine the features of footwear market in Russia

2. To study the factors influencing consumers’ choices on shoe purchasing brands

3. To determine the popularity of Bosoff shoes

The object of this study was the St. Petersburg company «Bosoff»; subject - its comprehensive study and development program PR-activities to market its new showroom store

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