Saturday, May 2, 2015

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

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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.
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.

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