Standard Operating Procedure For A Footwear Industry-Part 3(Marketing Department)

Hello everyone. This is the 3rd part of this SOP. If you don't read yet the first 2 parts you can read them from the following links.

Part -01

Part- 02

The general outline of modern marketing is presented by the following definition:
“Marketing is the performance by an enterprise of all the activities required in order to create, promote, and distribute products in accordance with the present or potential buyers/customers demand and the firm’s ability to produce.”

a. Objectives:

To create a market so that manufacturer can sell our product satisfying the need of the buyer/customer.
To remain competitive in the market to achieve targeted profit.
To maintain the sale volume so that manufacturer can fully utilize productive capacity.

b. Main functions:

To create an innovative product range considering a target group of buyer/customer.
To exhibit those products by participating in the various international shoe fairs, through our website and also international shoe journal published by the fair organizers.
To provide maximum salesmanship effort to convince the potential buyers.
To negotiate with buyer/customer remaining in the win-win situation so that he becomes a loyal buyer/customer.
To provide after sales service wherever necessary.

Terms and conditions related to order taking:

1. Time period: Usually like the following:

a. Initial order

Lead time 90 days in case of new shoe last & outsole mould.
“ 75 days in case of everything is available.

b. Repeat order:

Lead time 45 days in case of local material.
“ 60-70 days in case of imported material.
“ 45 days in case of imported material borne by Air.

   2.    Minimum order quantity:

            a.    In case of newly developed outsole mould and last by manufacturer - 20,000 pairs.
            b.    If buyer provides mould & last – 6,000 pairs.
            c.    In case of existing mould and last – 5,000 pairs.

3.    Quantity per color:

          a.    For leather – 1,000 pairs.
          b.    For textile – 3,000 pairs.
          c.    For others – 2,000 pairs.

4.    Payment:

        a.    L/C. at site.

5.    Pricing: Manufacturer use Cost- Plus pricing policy (Material +labor +overhead +… ) . They calculate the total cost of producing and selling the product and add a minimum desired rate of profit.

The next article about Planning Department.