If you were the marketing manager of Monte Calcados, what strategic decisions would you propose?
1. Should MC start distributing through online retailers? To make your final recommendation, you need to consider:
1) What are the general benefits of making products available online through various retailers? (Hint: Extra research is needed.)
2) What are the negative impacts of online distribution on in-store retailing? (Hint: Extra research is needed.)
3) Based on the pros and cons of online retailing, the characteristics of MC’s consumers, and cannibalization for MC’s megastores (see the Excel sheet attached), make your final recommendation.
2. Should MC expand its target market to include older women? To make your final recommendation, you need to consider:
1) Who are MC’s current target consumers?
2) When the best customers of MC get older, how can (or should) MC manage this change? (Hint: How do fashion brands handle the fact that their best customers get older? Do some research about fashion brands you think similar to MC. Extra research is needed.)
3) If MC targets older consumers, what are the pros and cons of doing this? (Hint: Do some research about fashion market for the elderly. Extra research is needed. )
4) Finally, based on your analysis, state your recommendation explicitly.
Copyright
| Montes Calçados — Student Supplementary Spreadsheet | |
| Harvard Business School Brief Case 9-918-513 | |
| Courseware 9-918-515 | |
| This courseware was prepared solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright © 2018 President and Fellows of Harvard College. All rights reserved. No part of this product may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording or otherwise—without the permission of Harvard Business School. | |
| Created | 2/12/18 |
Exhibit 1
| Exhibit 1 | |||||
| Montes Calçados 2014–2017 Financial Results Income Statement | |||||
| in Millions of Reals (1 Real = U.S. $.32 as of July 2017) | |||||
| 2014 | 2015 | 2016 | 2017 E | ||
| Total Revenues | 383 | 399 | 412 | 406 | |
| Cost of Goods Sold | 172 | 179 | 168 | 168 | |
| Gross Profit | 211 | 220 | 244 | 238 | |
| Selling General & Admin | 136 | 136 | 140 | 144 | |
| Operating Income | 75 | 84 | 104 | 94 | |
| Number of Shoe Pairs Sold | |||||
| Millions of Pairs | 3.68 | 3.73 | 4.04 | 4.24 | |
| Average Selling Price / Pair | |||||
| Reals | 104 | 107 | 102 | 96 | |
| U.S. Dollars | 33.30 | 34.23 | 32.63 | 30.64 | |
| Pairs Sold by Major Regions | (millions) | ||||
| Brazil | 0.82 | 0.84 | 0.89 | 0.92 | |
| North America | 0.96 | 0.92 | 0.93 | 0.86 | |
| Europe | 0.84 | 0.81 | 0.88 | 0.92 | |
| Asia | 0.62 | 0.65 | 0.73 | 0.82 | |
| Other | 0.44 | 0.51 | 0.61 | 0.72 | |
| Total | 3.68 | 3.73 | 4.04 | 4.24 |
