This document provides details about the production process of SHOEBOX, a company that produces creative cardboard boxes for shoes. It begins with an overview of the company profile and objectives. It then describes the manufacturing process which involves pulping wood chips to make kraft paper, corrugating one layer of paper through heavy rollers, and gluing two flat paper layers to either side to form the cardboard. Different printing and finishing techniques are used to customize box designs. The document outlines the various box styles and materials offered to shoe companies. Finally, it suggests boxes can be reused for storage and organization around the home after use.
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Content
1. Company Profile ................................................................................................................. 3
2. Headquarters ....................................................................................................................... 3
3. Position in the B2B and B2C markets ................................................................................ 4
4. SWOT analysis ................................................................................................................... 4
Internal and External Evaluation Matrix ................................................................................ 5
Space matrix ........................................................................................................................... 6
Suggested Strategies............................................................................................................... 7
QSPM ..................................................................................................................................... 8
5. Description of product classification, production, derived demand ................................... 9
Classification .......................................................................................................................... 9
6. The life cycle of product................................................................................................... 15
7. Marketing mix................................................................................................................... 17
8. Raw materials needed for production ............................................................................... 19
9. Suppliers of raw materials ................................................................................................ 19
10. Marketing Research....................................................................................................... 22
11. Competition................................................................................................................... 29
12. Communication mix...................................................................................................... 30
13. Attractions and reasons why product will be successful on the market........................ 32
Summary .................................................................................................................................. 34
References ................................................................................................................................ 35
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1. Company Profile
Name: SHOEBOX
Slogan: Get out of the box
Paper Industry. Boxes for shoes
Target Audience: shoe companies which produce shoes of middle and high price.
USP: boxes from shoes can be used as simple box for keeping staff because of its
strong material and creative design. Moreover, it’s possible to combine few boxes to make a
bedside-table, shoe-shelves, closets etc.
Mission
To provide shoe producers with high-quality creative boxes, that will help them to
satisfy customer.
Vision
To became a leader of shoe boxes producers and provide all footwear companies in
Zlin region in 3 years
Philosophy
We believe that you can’t tell a book by its cover, but cover always matters. Our boxes
change the way you thought about selling shoes. We want to become out of the box company
which provide out of the box solution for shoe companies to help them get more loyal
customers.
Legal form:
Limited liability company - společnost s ručením omezenám (s.r.o.)
A limited liability company is commonly used only for small and medium–sized
businesses. It will be established either by a memorandum of association concluded by a
group of entities or individuals up to 5 [1].
2. Headquarters
The company decided to set up the main office and factory in Otrokovice. As for the
moment we’re focusing on Czech market only, we don’t need to move our production
elsewhere. Otrokovice is the best place for us because of its transport system., prices for
renting a place and for living.
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3. Position in the B2B and B2C markets
4. SWOT analysis
SWOT Matrix
Shoebox s.r.o.
• Developing boxes from
raw material
• Adoptating supplied
boxes using design and
technology resources
Final
Cutomer
5. 5
Internal and External Evaluation Matrix
Internal factors Weight Rating
Weighted
Score
Strengths
Product with unique features 0.12 4 0.48
Strong marketing information system 0.1 4 0.4
Increase value of footwear companies 0.11 3 0.33
Eco-friendly product 0.1 4 0.4
Fast and low-cost production process 0.09 3 0.27
Young creative team with high-skilled designers 0.07 4 0.28
Weaknesses Weight Rating
Weighted
Score
New unknown company 0.1 1 0.1
Lack of financial resources for marketing 0.09 2 0.18
Insufficient experience in the field 0.09 1 0.09
Limited assortment of the product 0.07 1 0.07
Lack of experience of doing business in Czech Republic
(legislation, language, etc) 0.06 2 0.12
Total 1 2.72
External factors Weight Rating
Weighted
Score
Opportunities
Penetrating international market 0.15 4 0.6
New distribution channels (the Internet) 0.13 4 0.52
Strategic alliance 0.12 4 0.48
Worsen environmental problems 0.09 3 0.27
Threats Weight Rating
Weighted
Score
Increasing competition in the field 0.11 1 0.11
Relatively high level of corruption 0.09 2 0.18
Vulnerability to recession 0.09 2 0.18
Low demand at the beginning 0.15 1 0.15
Scare resources for raw material 0.07 2 0.14
Total 1 2.63
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Space matrix
According to the Space matrix SHOEBOX should pursue an aggressive strategy. The
company has some competitive advantages (internal strengthen) which should be used to
acquire a bigger market share in Czech Republic, to strengthen companies’ position and
penetrate global market. This can be done through product development, advertisement and
strategic alliances.
Externalfactorscore
1234
1 2 3 4
Internal factor score
Conservative Aggressive
Defensive Competitive
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Suggested Strategies
SO1 – Expand business to other countries including those where the scarcity of resources
(wood) is a pressing problem. After the successful start on the Czech market, the company
can penetrate markets of other European countries later on due to such strengths as unique and
eco-friendly product.
SO2 – Strengthen the business through vertical integration with suppliers of raw material. So
far SOEBOX produce boxes from ready material that suppliers provide it with. Therefore
such strength as fast and low-cost production process and opportunity of strategic alliances
(on a basis of long relationships with suppliers) can help integrate the production vertically
and became independent from raw material suppliers.
SO3 – Develop a new production line. On the starting step of establishing and development
the company cannot afford doing exclusively customized boxes which is considered as a
strategic development of company’s product line. The young creative team with high skilled
designers makes this opportunity highly possible.
SO4 – In order to take the opportunity of new distribution channel (Internet) company can
create own on-line shop. The development of company’s on-line shop will simplify the
procedure of making orders and attract more customers.
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5. Description of product classification, production, derived demand
Classification
SHOEBOX provides footwear companies with high-quality elegant creative cardboard
boxes which will help to create added value and attract more customers.
SHOEBOX supplies different size boxes for children’s men’s and ladies’ shoes. The
company offers both simple boxes and complicate laminated ones with prints or handmade
design (putting logos, usage of other materials including different types of fabrics, foil, etc.)
The company uses boxes made of laminated, coated, non-coated cardboard as well as
low-graded one. There are at least four different types of boxes which company produces:
- simple top-bottom square and rectangular box;
- self-erect boxes
- hand-carry box
- customized boxes
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Features of the product:
- Durable
- Low maintenance
- Long life span
- Quality tested
- Fascinating design
- Differentiated usage
To create original, stylish shoe boxes next methods are used:
• automatic and manual gluing;
• stamping;
• color or black and white printing;
• laminating;
• offset printing.
Automatic and manual gluing
Gluing – one of the ways of after-printing processing, which helps to make the product
of any complexity and for any purpose. Gluing is used in the manufacture of various types of
boxes and advertising - printing products.
Gluing of our products is done using adhesives from the best manufacturers, which has
a positive impact on the quality of products. For automatic gluing automatic gluing line is
used.
Stamping
Stamping – a printing process related to post-press finishing of products manufactured
on the manual, semiautomatic and automatic stamping presses, based on hot or cold
lamination process, metallic or pigment foil coated with the necessary substances to improve
the attractiveness of the packaging and labels of the product.
There are 3 types of the process:
1. Foil – stamping - stretched foil is pressing between the heated clichés and
cardboard.
2. Blind stamping (embossing) – embossing is using clichés in order to get print
with a smooth surface (such as textured paper, leather). In contrast to the foil-stamping, the
foil is not applied. Operating temperature of the process is usually lower than with foil in
order to prevent overheating and damage of the material.
3. Relief stamping without foil - creating relief convex picture on the cardboard.
Laminating
Cardboard packaging can be both robust and reliable, but a bright, attractive and
beautiful. Boxes made of micro-corrugated cardboard and corrugated one are extremely
durable. Moreover, laminated cardboard boxes have decent looks.
Laminating - gluing sheets of flat cardboard with printing offset on corrugated
cardboard (2, 3, 4 and 5-layer corrugated or micro-corrugated cardboard). Lamination is
carried out on the flat or corrugated layer.
Lacquering - coating the surface of the printed material with glossy or matt waterborne
paint. Advantages of such lacquers are high gloss, high elasticity, high resistance to heat.
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Offset printing
Offset printing - printing technology, which provides the transfer of ink from the
printing plate to the sealing material not directly, but through an intermediate blanket
cylinder. In contrast to other methods of printing, the image on the printed form is not a
mirror, it’s direct. Offset is mainly used for flat printing.
For printing of colored image the multicolor printing machine is used.
A package (box) is essential part of any product. It’s not only a necessity or tool for
carrying shoes but it’s also an image and advertisement.
The unique and fascinating design of the boxes as well as the possibility to use them at
home for different needs will make shoes in those boxes more attractive to customers.
SHOEBOX offers buyers a manual - how to use your box:
Nice-looking boxes are perfect for keeping your staff.
Those boxes with holes are suitable for keeping all chargers so that your electronic
devices can be conveniently charged without creating a mess.
Some of our boxes are accompanied with partitions which can be easily installed in
order to create sections. Such box with divisions can be used to keep jewelry, underwear,
cosmetics and any other things.
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The Manufacturing Process
Pulping the pine chips
1. Manufacturing a corrugated cardboard box begins with the pulping of wood
chips in the kraft (sulfate) process. First, tree trunks are stripped of bark and torn into small
chips. Next, these chips are placed in a large, high-pressure tank called a batch digester, where
they are cooked in a solution, or liquor, made of sodium hydroxide (NaOH) and several other
ionic compounds such as sulfates, sulfides, and sulfites. These strongly alkaline chemicals
dissolve the lignin, the glue-like substance that holds the individual wood fibers together in a
tree trunk [2].
2. When the pressure is released after several hours, the wood chips explode like
popcorn into fluffy masses of fiber.
Making kraft paper
3. After additional cleaning and refining steps, a consistent slurry of wood pulp is
pumped to the paper-making machine, also known as a Fourdrinier machine. Gigantic, square
structures up to 600 feet long (182.88 meters), these machines contain a wire mesh in which
the paper is initially formed. Next, the paper is fed into massive, steam-heated rollers and
wide felt blankets that remove the water. At the end, the finished medium, or liner, is rolled
for shipment [3].
Shipping and storing the kraft paper
4. Rolls of kraft paper for corrugating are available in many sizes to fit the
production equipment at different corrugating plants. The most common roll sizes are 67
inches (170.18 centimeters) wide and 87 inches (220.98 centimeters) wide. An 87-inch roll of
heavier paper can weigh up to 6,000 pounds (2,724 kilograms). As many as 22 rolls of 87-
inch paper can be loaded into one railroad boxcar for shipment to a corrugating plant [4].
5. At the plant, the kraft paper is separated into different grades, which will be
used for the medium and the liner. These different grades of corrugated cardboard can be
made by combining different grades of kraft paper. A knowledgeable packaging specialist
works with a customer to determine the strength required for the corrugated cardboard
container being planned. Then, when a plant receives an order for containers, a product
engineer specifies the combination of medium and liner to produce a cardboard to match the
customer's requirement [4].
Corrugating the cardboard
6. Using powerful fork-lifts, skilled equipment operators select, move, and load
rolls of kraft paper at one end of the corrugator.
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Corrugated cardboard manufacture includes two key steps: making kraft paper and
corrugating the cardboard. Kraft paper involves pulping wood chips and then feeding the
resulting paper substance through massive steam rollers that remove the water.
Corrugating is also done in a machine that utilizes heavy rollers. One roll of
cardboard is corrugated and then glued between two other layers (liners) by the same
machine. The glue is then cured by passing the cardboard over heated rolls [5].
7. One roll of medium is loaded to run through the corrugating rolls, and a roll of
liner is fed into the corrugator to be joined with the corrugated medium. Liner from another
roll travels up over the corrugating rolls along a flat structure called the bridge. This liner will
be glued to the corrugated medium later in the process [5].
8. For a large production run, additional rolls are loaded into automatic splicers.
Sensitive detectors check the rolls of paper feeding into the corrugator. When a roll is nearly
empty, the corrugator control system starts a splicer, and paper from the new roll is joined to
the end of the paper going through the machine. Thus, production of corrugated cardboard is
continuous, and no production speed is lost [5].
9. The medium to be corrugated is fed into the giant, electrically driven rollers of
the corrugator, first through the preheating rollers and then into the corrugating rolls. Steam at
175 to 180 pounds of pressure per square inch (psi) is forced through both sets of rollers, and,
as the paper passes through them, temperatures reach 350 to 365 degrees Fahrenheit (177 to
185 degrees Celsius) [5].
10. The corrugating rolls are covered with I O flutes —horizontal, parallel ridges
like the teeth of massively wide gears. When the hot paper passes between the corrugating
rolls, the flutes trap and bend it, forming the middle part of a sheet of corrugated cardboard.
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Each corrugating machine has interchangeable corrugating rolls featuring different flute sizes.
Installing a different [5].
A finished piece of corrugated cardboard consists of a single corrugated layer
sandwiched between two liner layers.
11. The medium travels next to a set of rollers called the single-facer glue station.
Here, one layer of liner is glued to the medium. Starch glue is carefully applied to the
corrugated edges of the medium, and the first layer of liner is added. From the single-facer,
the medium and liner go to the double-backer glue station where the other layer of liner from
the bridge is added following the same procedure. Continuing through the corrugator, the
cardboard passes over steam-heated plates that cure the glue [5].
Forming the blanks into boxes
12. At the end of corrugator, a slitter-scorer trims the cardboard and cuts it into
large sheets called box blanks. Box blanks pop out of the slitter-scorer like wide slices of toast
and slide into an automatic stacker that loads them onto a large, rolling platform. From here,
they will be transported to the other machines that will convert them into finished containers.
Skilled production workers use a computer terminal and printer to prepare a job ticket for
each stack of box blanks produced by the corrugator. With the job ticket, workers can route
the stack to the right fabrication machines, called flexos (the name is short for flexographic
machine). A flexo is a wide, flat machine that processes box blanks [8].
13. Printing dies and die-cutting patterns I 3 are prepared in a pattern shop on
large, flexible sheets of rubber or tin. The dies and patterns are loaded onto the large rollers in
the flexo, and the box blanks are automatically fed through it. As each blank passes through
the rollers of the flexo, it is trimmed, printed, cut, scored, and, in a printer-folder-gluer, folded
and glued to form a box. From the flexo, the finished boxes are automatically stacked and sent
to a banding machine to be wrapped for shipping. Other equipment in a corrugating plant
includes stand-alone die-cutters, die-cutters with print stations, and machines known as
curtain coaters that apply a wax coating to fruit, vegetable, and meat containers. Box blanks
requiring only simple, one-color printing and die-cutting can be run through a stand-alone die-
cutter, print station, and curtain coater to produce water- or grease-resistant containers [8].
Quality Control
Quality control begins with the suppliers of the kraft paper used to make corrugated
cardboard. Kraft paper must be smooth and strong. After the paper passes through the
corrugator and is made into box blanks, individual blanks are pulled from a stack and tested.
The Cobb test measures moisture in the liner and medium. Glue strength, bursting strength,
15. 15
compression, and highly accurate dimensional tests determine the quality of the
manufacturing process. A warp test determines the flatness of the box blank, insuring that
each blank will travel smoothly through the flexo machines. As skilled workers run batches of
box blanks through the flexo machines, individual boxes are pulled and inspected. Trimming,
cutting, and scoring must be correct. No damage to the cardboard is allowed. Also, the
different layers of colored ink used in color printing must be perfectly aligned [7].
The Future
Future corrugated containers will be manufactured using kraft paper produced
from recycled packaging rather than trees. Recycling and other environmentally friendly
processes will continue to grow in importance in the future of corrugated cardboard. Today,
inks based on soybean oil and biodegradable waxes and other coatings are beginning to be
used in container manufacturing. Leading packaging companies are already operating paper
mills that make fresh, clean kraft paper by de-inking and pulping used containers [9].
Derived demand
The demand for products of SHOEBOX is driven by demand of final consumers.
There are some factors that affect the demand of final customers which determine the
demand of footwear companies for shoe boxes:
- Internet shopping. More and more people from any place of the planet can
make a purchase.
- Population growth and urbanization. Heavily populated areas like cities have
greater demands for shoes relative to smaller towns.
- Fashion trends. Fashion all the time creates new demand for the current must
have items.
- Price level. Shoes are not a necessity that’s why demand is relatively elastic.
- Changes in disposable income. Income dictates the choice and frequency of
purchase of shoes. A family with increasing incomes may find itself having more money
available for the purchase of shoes. A family with shrinking income, however, may find shoe
purchase at the bottom of their priority.
- Economic growth. The shoe industry typically follows the volatility of
economic swings and downturns. A surging economy often leads to good sales, while sales
may take a nosedive during economic recessions and bust.
6. The life cycle of product
The product life cycle means every product has a capability such that it can be used for
a certain period of time. It passes through the different stages of life as introduction to
maturity and decline.
The first stage in the product life cycle is product making or development. The product
is in development when the companies are making specific products which they invest their
money in and get nothing from these products at this stage. In our life cycle diagram we will
start with the development stage because our product is unique and it could be an advantage
for us during this stage, and the stage of introduction to keep a monopoly.
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Secondly the product is introduced in the market. This is second stage. At this the
stage the advertising campaign is run to tell people about this product. The product suffers
with the competition in the market. In this stage the price is low because the product is in the
launching stage. Heavy expenditure is being put on the promotions to boost sales. The next
stage is the growth stage. In this stage the sales of the product are on a peak and the product
has captured a large geographical area. The product has deeply penetrated into the market at
this stage. The product has great distribution in the market and is available in every shop of
the market.
The diagram above show the different stages of the life of our product, which begins
with the stage of development. This stage will to last approximately 5 days and will develop
our product and the different adaptations possible.
The introduction step will allow us to set a starting price for start and thus
communicate a little bit about our company and obviously the product. However, our
communication will be poor and we’ll concentrate on partnerships with other companies.
Moreover, we want to create a corporate website to gain visibility on the web and be in
contact with our customers who have news from our company as well as any other
information that may be useful. These actions are sufficient to start and increase our sales.
This step will last approximately 6 months to test the behavior of our customers in relation to
product and take advice.
In the growth step we will implement a retention strategy in our clients to create an
atmosphere of trust that will ensure the durability of our business in continuity of our
partnership strategy. During the phase of maturity, we will launch a new process of
developing a new product to continue to innovate or repositioning our product with few
17. 17
modifications and offer originals. These new designs will allow us to remain on the market
and deal with potential competitors. We begin to give them discounts for their loyalty and
encourage them to order more, discounts will be granted for only if the customer buys a
certain amount of boxes.
We hope a real success of our product as SHOEBOXes are widely used in the world
due to the need of footwear and that is most of the time sold in boxes. This is achievable
because it offers a true quality product and full of originality.
7. Marketing mix
Product
It is clear that the success of a business depends heavily on products offered. A key
challenge is to meet the wishes and customer needs. For this, we opted for a policy of product
quality and average in order to provide clients (companies) a real added value in terms of
quality and image.
The size of shoe boxes will be in the standard but have already mentioned several
features such as the ability to transform. In addition, we have chosen to build four models that
transform into different elements with possible adaptations at the decoration.
The products comply with environmental standards but even more, we want to make it
a priority, as well as resistance boxes even once processed. Customers will be assisted by our
team, who advise and gets filled throughout our partnerships to address potential problems
with our products.
Price
The instrument of marketing mix price includes all terms and decisions about the offer
price performance, discounts and bonus potential, conditions of delivery, payment and credit.
The price will indeed be more important than a classic box, but it is justified by the
customization and product quality and after sales service.
Reductions will be granted if a customer orders us a certain amount of boxes to keep a
solid cooperation between our companies and thus providing the bonus, once it will be
possible for retain them. Conditions of payment will be cash or will be in 30 days to enable us
to keep some cash flow to buy materials. Customers of course have the right to settle part of
the costs or will cash and another the month following.
Place
The term distribution refers to all decisions and actions that have to do with the way of
a good or service to the corresponding client. A good distribution policy, a company wants to
ensure that the right product reaches the customer in the right quality, in time, in the right
quantity at the desired place in the desired state and the most advantageous conditions.
We will distribute our products through to private transport companies that guarantee
all insurance for damage and delays in delivery. This allows us to shirk one side of the goods
once part and be insured in case of problems with the company that has contracted. Delivery
will be made to all our customers whether they are more or less important in the shortest
possible time.
We should not have a lot of stocks for our production system is relatively fast, which
allows us to produce virtually on demand, but if there are they will stock in our warehouse
18. 18
where the goods can be supported by the carrier . We propose a simple standard delivery with
a base price and express delivery for those most willing and will be more expensive of course,
these criteria may differ depending on orders.
After-sales service will be available to our clients to aid in using our products and
resolving problems. A corporate website will be created to help our customers to contact us
and get all the news and information about the company, which allows us to have a place on
the web.
Promotion
Each purchase is linked to a variety of communication methods. The companies send
to customers via certain media messages that should encourage a certain behavior. Companies
thus transmit information in order to control the thoughts, expectations and behavior patterns
of different groups of customers and stakeholders.
As we have already indicated, we will not make costly advertising campaigns because
the budget does not allow it. However, we will, at the stage of development of our product,
contact companies likely to buy our product but also with the general or more specialized
media to create a buzz around our original boxes.
To create trusting relationships, we develop partnerships with companies that are
indirectly related to our industry, without being our direct competitors and have benefits.
Source: http://images.flatworldknowledge.com/cadden/cadden-fig07_008.jpg
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8. Raw materials needed for production
All our corrugated boxes are made from the best packaging material in the market and
are fabricated from the best grades of raw material.
As a corrugated factory producing corrugated sheets, we need these types of raw
material to produce a corrugated box:
• Liner Paper – used to make the exterior liner board
• Fluting paper – used to make the corrugated medium
• Corn starch glue - used to bond the corrugated medium to the liner sheets
• Ink and varnish - used in case of printed boxes
One product line, modifications can be done on this product line after the basic
preparation. It can be deal with color or special order from buyers.
Producing line based on row materials.
Solid Bleached Board (SBB) or Solid bleached sulphate (SBS) is a virgin fiber grade
of paperboard.
This grade is made purely from bleached chemical pulp and usually has a mineral or
synthetic pigment coated top surface in one or more layers (C1S) and often also a coating on
the reverse side (C2S). It is a medium density board with good printing properties for
graphical and packaging end uses and is perfectly white both inside and out. It can easily be
cut, creased, hot foil stamped and embossed. Its other properties, such as being hygienic and
pure with no smell and taste, make it usable for packaging aroma and flavour sensitive
products such as chocolate, cigarettes and cosmetics. [9]
9. Suppliers of raw materials
List of suppliers of the materials needed for production
There is the Association of the Czech Pulp and Paper Industry. The association of
producers, converters and merchants in the field of pulp, paper, board and paper based
products. Represents its members at negotiations with trade unions, the government and
international organizations. It organises common interests and representation for its members
through the working groups (statistics and information, ecology, education, environment,
recycling, finance and collective bargaining with trade unions).
1. Liner and Fluting paper:
Smurfit Kappa Olomouc s.r.o.
Street: Průmyslová 799/18
Post code, City: CZ-77002 Olomouc
Phone: +420 585 105 507
E-mail: sales.olomouc@smurfitkappa.cz
Internet: www.smurfitkappa.cz
LOKART s.r.o.
Street: Lípa 300
Post code, City: CZ-76311 Zlín
Phone: +420 577 113 577
E-mail: obchod@lokart.cz
20. 20
Internet: www.lokart.cz
Tart s.r.o.
Street: Vinohradská 91
Post code, City: CZ-61800 Brno
Phone: +420 548 210 500
E-mail: poptavky@tart.cz
Internet: www.tart.cz
International Paper Czech Republic, s.r.o.
Street: Na žertvách 29
Post code, City: CZ-18000 Praha 8
Phone: +420 227 133 181
E-mail: zdenek.prochazka@ipaper.com
Internet: www.internationalpaper.com
Corn starch glue
In this industry there are a lot of suppliers, but all of them we can find in on-line shops. The
most exporters we can find in China, India, Italy, Germany, USA.
We decided to deliver with this company:
Shijiazhuang Fuchen Import And Export Trade Co., Ltd. (China (Mainland)) [12]
FOB Price: US $10 – 100
Port: Tianjin
Minimum Order Quantity: 10 Bag/Bags
Supply Ability: 100 Ton/Tons per Week
Payment Terms: L/C,T/T,Western Union
3. Ink
KANTE ZK s.r.o. is a distributor of the office equipment and sales especially supplies and
spare parts for copiers and printers. Kout Na Sumave 320, Kout Na Sumave, Czech Republic
[10].
Toner Recycling Service S.R.O. Na Hrazi 697/Iii, Podebrady, Czech Republic [11].
4. Varnish
In on-line shop:
(Varnish for ink) [14]
Port: Shanghai
Minimum Order Quantity: 1000 Kilogram/Kilograms
Supply Ability: 150000 Kilogram/Kilograms per Month
Payment Terms: L/C,T/T,Western Union
FOB Price: US $1-20 / Kilogram
In another on-line order shop:
(Making paper bright varnish over printing varnish for offset inks)
FOB Price: US $2.8 — 3.8 / Kilogram
Port: HUANGPU
21. 21
Minimum Order Quantity: 3000 Kilogram/Kilograms
Supply Ability: 500 Ton/Tons per Month
Payment Terms: L/C,T/T
On-line shop:
(Offset printing ink varnish for paper printing) [14]
FOB Price: US $4.12 - 5.6 / Kilogram
Port: Shanghai
Minimum Order Quantity: 10 Box/Boxes
Supply Ability: 5,000 Kilogram/Kilograms per Quarter
Payment Terms: L/C,T/T,Western Union
Special ink for non-standard orders from on-line shop:
(Gold printing ink liquid varnish for best use) [13]
FOB Price: US $9 - 12 / Kilogram
Port: Tianjin
Minimum Order Quantity: 5 Kilogram/Kilograms
Supply Ability: 100 Kilogram/Kilograms per Day
Payment Terms: L/C,T/T
Logistic
Rail map of Czech Republic
[15]
22. 22
10. Marketing Research
Our Customers
1. FARE, spol. s r.o.
Description of the company's activities
FARE, spol. s r.o. was established in 1991. It is engaged in the production of
children's, women's and men's footwear for all seasons. Their speciality is the production of
hiking boots and children's home shoes. They place emphasis on the quality and high health
standards of our footwear [16].
Business activity
Production and sale of footwear
Major products and services
• Women's shoes,
• Children's shoes,
• Men's shoes,
• Hiking boots,
• Slippers.
Major products and services for export
Children's, women's and men's footwear for all seasons.
Countries of current export
Slovakia, Germany, Great Britain, Sweden, Switzerland, USA.
Interest to export to the following countries
Frankreich, Spanien, Norwegen, Finnland, Kanada, Australien
Proposal/request for partnership
Seeking new customers for our footwear products, not only in the Czech Republic but
also abroad.
2. SALTIC, s.r.o.
Description of the company's activities
Czech company engaged in the production of mountaineering, hiking and sandal
footwear. Repair of rock climbing shoes of all brands. Sale of outdoor equipment (ropes, MG,
backpacks, clothing, roll mats, walking sticks, snap hooks, sandals and more) [17].
Business activity
Production and sale of rock climbing shoes, mountaineering and hiking boots and
sandals. Production and repair of rock climbing shoes and hiking boots.
Major products and services
Production and sale of rock climbing shoes, mountaineering and hiking boots and
sandals. Repair of rock climbing shoes and hiking boots.
Major products and services for export
Mountaineering footwear, rock climbing shoes, hiking boots and sandals.
Countries of current export
Europe, Asia, South America, Malaysia, Norway, Switzerland.
Interest to export to the following countries
Russia, Ostasien, Balkan
23. 23
Proposal/request for partnership
Help in selecting potential customers.
Membership in associations
Czech Chamber of Commerce, Exporters Union.
3. Bata Shoes
They are innovators and leaders
Since their founding in 1894, Bata has been at the forefront of innovation; not only in
the production and design of new styles, but in the creation of business models that permit a
quick response to the ever-changing wants and needs of their customers. As a result, Bata
enjoys a long history as a leading manufacturer and retailer of quality footwear, and proudly
serves some one million customers each day. With more than 30,000 employees, 5,000
international retail stores, and a presence in over 70 countries, Bata is positioned to deliver an
unparalleled combination of selection, quality, and service to customers around the globe
[18].
They are international and local
Bata's reach is worldwide; its presence is local. Their novel international
manufacturing structure allows Bata facilities around the globe to respond to the unique needs
and wants of local customers. As a result, Bata is honored to be a local company in every
country it serves. Bata continues to be guided by the same core principle it has followed for
over one hundred years: to know its customers and to create the best possible products to meet
their needs [18].
They are the future of footwear
For over 13 decades, Bata has been on the leading edge of footwear design. Today,
professionals in Bata's Shoe Innovation Centres around the world continue the tradition of
innovation as they dedicate themselves to discovering new shoe materials, developing modern
shoe technologies, and creating fresh footwear that marries style with comfort [18].
Local stores:
Europe Asia Pacific Americas Africa
Albania
Armenia
Azerbaijan
Bosnia and
Herzegovina
Bulgaria
Croatia
Cyprus
Czech Republic
Estonia
France
Georgia
Greece
Hungary
Iceland
Italy
Australia
Bangladesh
Brunei
Cambodia
China
India
Indonesia
Jordan
Lebanon
Malaysia
Myanmar
New Zealand
Pakistan
Philippines
Singapore
Sri Lanka
Bolivia
Canada
Chile
Colombia
Ecuador
Mexico
Peru
Algeria
Botswana
Kenya
Malawi
Mauritius
South Africa
Tanzania
Uganda
Zambia
Zimbabwe
24. 24
Latvia
Lithuania
Macedonia
Malta
Montenegro
Netherlands
Poland
Portugal
Republic of
Kosovo
Republic of
Moldova
Romania
Russian
Federation
Serbia
Slovak
Republic
Slovenia
Spain
Switzerland
Turkey
Thailand
Vietnam
4. DEICHMANN SE
Shoes from the market leader - for 100 years
Deichmann has been a family-owned business since 1913 and will continue to remain
independent. Its 100-year history began in Essen, in the Ruhr river area. This is still the
headquarter for the group of companies. Deichmann SE is currently active in 23 countries
with approximately 3,300 stores and employs around 33,700 people.
Deichmann is the market leader in the German and European shoe business. They
offer a wide selection of shoes for all age groups possibly the most comprehensive selection
on the market. They don’t just ensure outstanding value for the money they’re also quick to
bring out the latest fashion trends. Their fashion scouts are hot on the trail of the latest trends
and bring current fashion developments into their collections quickly.
Besides tradition-rich brands like Elefanten, Gallus and Medicus, their modern shops
offer elegant premium shoes by 5th Avenue. Their young Graceland collection is the pinnacle
of what’s new. For many athletes, Victory sport shoes are part of basic equipment. Their
assortment is expanded with famous brands like Adidas, Nike, Puma and Kappa. They don’t
just offer their customers fashion at a great price, but also quality and safety when buying
shoes [19].
Continuous growth and independence
An important part of DEICHMANN's company history is growth under its own steam
without stock market launch and external capital. 2012 was no exception as the family-owned
company continued its strong performance: DEICHMANN sold 165 million pairs of shoes in
3,325 branches worldwide. This is an increase of nine million pairs or 5.7 percent compared
25. 25
to the previous year. The number of pairs of shoes sold has more than doubled over the past
decade: Rising from 78, to 165 million pairs of shoes.
DEICHMANN employs around 33,700 members of staff in Germany, 22 further
European countries and in the USA. In 2013 DEICHMANN will recruit around 400 new
employees in Germany and as in the year before, provide about 1,200 young people with the
opportunity to enter vocational training [19].
Germany
Around 14,300 employees spread over approximately 1,300 branches (as at
31.12.2012), the company's administration and several distribution centers are currently
working for DEICHMANN SE in Germany. Business in Germany, which in 2012 rose from
EUR 1.82 billion to EUR 1.89 billion, amounts to 42 percent of the Group's turnover. In 2012,
the DEICHMANN Group in Germany sold about 74.7 million pairs of shoes.
United Kingdom
The very first Deichmann branch in the UK was opened in 2001 and the total figure of
UK Deichmann branches now stands at 67. The Deichmann Group has applied its successful
concept of fashionable, quality shoes at excellent prices combined with friendly service to its
stores for the UK market and is growing year upon year.
The UK range is individually adapted to UK market conditions, taking country
specific trends into account.
Expansion plans
Further expansion projects have been scheduled: in Germany alone, the company
expects to open 72 new branches in 2013 and to undertake more than 100 modernizations, as
well as to launch 194 new retail premises abroad. DEICHMANN will open the first branches
in Bosnia-Herzegovina in spring. This means, that DEICHMANN is represented throughout
all of South East Europe.
5. ZAPPOS ONLINE STORE
Zappos.com is an online shoe and apparel shop currently based in Henderson, Nevada.
In July 2009, the company announced it would be acquired by Amazon.com in an all-
stock deal worth about $1.2 billion. Since its founding in 1999, Zappos has grown to be the
largest online shoe store [20].
Growth
In 2001, Zappos more than quadrupled their yearly sales, bringing in $8.6 million. In
2002, they opened their own fulfillment center in Shepherdsville, Kentucky. Advertising costs
were minimal, and the company grew mostly by word of mouth. It was around this time that
Hsieh and Zappos executives set long-term goals for 2010: achieve $1 billion in sales and
receive inclusion on Fortune’s list of The Best Companies to Work For.
In 2003, Zappos reached $70 million in gross sales and abandoned drop shipping,
which accounted for 25% of their revenue base. The decision was based on supplying superior
customer service, as Hsieh says "I wanted us to have a whole company built around [customer
service] and we couldn’t control the customer experience when a quarter of the inventory was
out of our control." In 2004, Zappos did $184 million in gross sales, and received their first
round of venture capital, a $35 million dollar investment from Sequoia Capital. That same
year, they moved their headquarters from San Francisco to Henderson, Nevada.
26. 26
Over the next three years, Zappos doubled their annual revenues, hitting $840 million
in gross sales by 2007. They expanded their inventory to include handbags, eyewear, clothing,
watches, and kids’ merchandise. Hsieh summarized this transition, saying "back in 2003, we
thought of ourselves as a shoe company that offered great service. Today, we really think of
the Zappos brand as about great service, and we just happen to sell shoes." [20]
Acquisition by Amazon
In 2008, Zappos hit $1 billion in annual sales, two years earlier than expected (one
year later, they fulfilled their other long-term goal, debuting at No. 23 on Fortune’s Top 100
Companies to Work For).
In 2009, Zappos started exploring an acquisition to Amazon. Within Zappos’ board of
directors, two of the five—Hsieh and Alfred Lin—were primarily concerned with maintaining
Zappos company culture, whereas the other three wanted to maximize profits in a down
economy. Initially, Hsieh and Lin planned to buy out their board of directors, which they
estimated would cost $200 million. In the midst of this, Amazon executives approached
Zappos with the proposition of buying Zappos outright. After an hour-long meeting with
Amazon CEO Jeff Bezos, Hsieh and Lin sensed that Amazon would be open to letting Zappos
continue to operate as an independent entity, and started negotiations. On July 22, 2009,
Amazon announced that it would buy Zappos for $940 million in a stock and cash deal.
Owners of shares of Zappos were set to receive approximately 10 million Amazon.com
shares, and employees would receive a separate $40 million in cash and restricted stock units.
The deal was eventually closed in November 2009 for a reported $1.2 billion.
On June 22, 2012 Zappos announced it would be shedding their Kentucky warehouse
on September 1st, 2012. Hsieh had mentioned that "Even though it was hard to walk away
from sales at a time when nobody is offering you money, we couldn't distinguish ourselves in
the eyes of our customers if we weren't going to control the entire experience. We had to give
up the easy money, manage the inventory, and take the risk." Even in spite of his
commitment to controlling the customer experience by managing inventory, this
announcement meant that Amazon would now be controlling that part of that customer
experience. Over 3,000 employees in Zappos' Kentucky warehouse will now be in the care of
Amazon on September 1, 2012.
In 2013, Zappos will move their headquarters from Henderson, Nevada to the Old Las
Vegas City Hall in downtown Las Vegas [20].
COMPETITORS
1. LUOYANG MAKEACE OFFICE FURNITURE CO.,LTD
Located in Pangcun Industrial area, Luoyang, BIZOE Office Furniture Co., Ltd.is
known as a leading corporation of a massive range of stylish and well-made office furniture,
occupying an area of over 20, 000 square meters, possesses modern productive workshops
and advanced equipment introduced from Japan, Germany, Taiwan, etc. Having over 390
skilled staffs and a professional group of 108 senior technicians and 36 senior engineers,
BIZOE furniture is equipped with advanced management concepts to provide novel designs
27. 27
and products of high quality. We are specialized in the whole service system of furniture
designing, manufacturing, packaging and marketing.
Specializing in the production of steel office furniture including safe box, file box,
locker, drawings cabinet, bookcase, mobile shelving, movable cabinet door, SHOEBOX and
toolbox, BIZOE also provides a wide range of school article like dining-table, class furniture
and apartment series with the most competitive prices, excellent quality and punctual
delivery. Driven by innovation, BIZOE Furniture is dedicated to providing satisfying
solutions to global customers and realizing the reciprocity with customers. We offer you the
green furniture, helping to create a positive environment for your convenience, comfort and
productivity [21].
2. FOSHAN HENGXING PRINTING CO.,LTD.
Company Type: Manufacturer/Supplier/Trader
Company Name: Foshan Hengxing Printing Co.,Ltd.
Category: AD, Packing & Printing
Main Products and Service: Paper, packaging, manufacture, catalogue printing,
paper calendar;
Founded in 1996,Hengxing Printing Company has took „providing the most
environmentally and excellent package for clients" as obligation in fierce competition market.
Through over ten years efforts, we are engaged in perfecting and innovating the products. We
won a accord reputation from our customer at home and abroad on the basis of the low price,
the exquisite workmanship and the comprehensive service. And we have earned good
reputation in related peers and international market. Now, our current developing main
products are: SHOEBOX, Toy-boxes, Food-boxes, Gift-boxes, Showing stand and Paper
handbags etc. Our yielding capacity already reach to 4million printed finished goods and in
2005 Hengxing Printing Company was approved through ISO-9001:2000 and ISO1400
quality system [26].
3. A P P UNITED e.K.
A P P united is an internationally successful enterprise with headquarter in Aichach,
Bavaria. Since 2000 they develop, produce and expel innovative packaging at the highest
level.
Their achievement offer encloses the order-related and camp-related production, trade
and the packaging of high-quality product packaging and service packaging, gift packaging as
well as advertising packaging and packaging materials.
For many years their individually produced products serve famous enterprises as a
signboard for special advertisement, inspiring decoration, impressive presentation and
valuable product packaging. Their extensive assortment with attractive, trendy commodity
and interesting seasonal articles is an important sales bringer for the specialized trade and
guarantees quick and sure sales for their demanding customers.
Their competent team from creative heads, chill planners and skillful hands disposes
of extensive specialist knowledge and high experience values in the area of the packaging
creation and packaging production. Thus originate, supported by the most modern
construction technology, quite individual packaging solutions. Their modern and intelligently
combined machine park allows adaptable work and the realization of easy like demanding
production processes to us.
28. 28
Excellent supplier's relations, highly competitive and reliable partner enterprises and
their highly motivated employees oriented to customer are their capital with which they fulfill
the claims and images of their customers reliably and at the highest level [22].
4. JC Edward Corporation
Their skilled management team and their attention to the customer's needs make JC
Edward Corporation one of the world's leading SHOEBOX suppliers. Their innovative
approach and global access ensures competitive pricing. The company's expert multi-lingual
staff as well as their design, marketing and distribution professionals provide excellent service
to the 110 global brands they currently serves.
Their JC Edward Corporation headquarters is in Midtown, New York. They also have
satellite offices in Dongguan, China and Novo Hamburgo, Brazil. Their box plants are located
in the USA, China, Vietnam, Spain, Italy, Portugal, Mexico, and Brazil. All of this means that
they successfully serve the needs of their customers, local and worldwide [23].
5. Vogtland Kartonagen Limited
The enterprise
If it is about the optimum packaging of your products, you are with us exactly in the
right address.
A team of experts looks after your wishes - from the consultation, about the
development up to the production of your individual packaging.
Customers from all areas of the industry, dispatch trade, from printers and advertising
agencies trust for many years in our competence, creativity and experience.
Warehouse-fitted at the high demands of our customers, all processing steps occur in
own house and with the most modern machine park.
This helps us to huge flexibility and a reasonable production [24].
6. Carl Bernh. Hoffmann GmbH & Co. KG
The Hoffmann's packaging enterprise group is a commercial enterprise and production
enterprise for dispatch packaging and protective packaging.
More than 250 employees work on 8 locations in Germany, Austria and Switzerland.
High professionalism, the comprehensive consideration of the packaging procedures
with the customer, the cover of all important products from the area of the dispatch packaging
and protective packaging and an extremely adaptable logistics system are the key points with
which the Hoffmann's group creates an optimum customer satisfaction and customer
connection.
We get on as a system supplier of our customers. This contains on the one hand the
immediate supply with packaging materials from nearly 7,000 articles big standard
assortment. On the other hand this means that we sketch tailor-made, so-called constructive
packaging solutions for you in our in-house development department and produce of course
with occurred order also in house for you.
On account of the company history 75-year-old more than now we approach with a lot
of experience to the solutions desired by you [25].
29. 29
11. Competition
Criteria LUOYANG FOSHAN JC APP Vogtland Carl
Bernh.
Method Mix 2 1 3 3 2 2
Research and
Development
3 1 2 1 1 1
Quality 4 3 4 4 3 3
Costs - - - - - -
Delivery time 4 4 5 5 5 5
Range of products 5 4 4 4 4 4
Firt time through - - - - - -
Time management 5 5 5 5 5 5
Range of Orders - - - - - -
Customer Satisfaction 5 4 5 4 4
Internal Communication
Level
3 2 4 4 3 3
31 24 32 30 23 27
This graph shows that main company’s competitors are JC, Luoyang and APP.
However, we don’t have direct competitors at all. By “direct competitor” is meant company
which produces exactly the same product for exactly the same target audience. Most of our
potential competitors have wide product lines, and wider target audience. Only SHOEBOX
has specific product for specific target audience. This means we will be more flexible, loyal
and the quality of our product will be much better.
2
1
3
3
2
2
3
1
2
1
1
1
4
3
4
4
3
3
4
4
5
5
5
5
5
4
4
4
4
4
5
5
5
5
5
5
5
4
5
4
4
3
2
4
4
3
3
0 5 10 15 20 25 30 35
LUOYANG
FOSHAN
JC
APP
Vogtland
Carl Bernh.
30. 30
12. Communication mix
Promo-materials for Direct-marketing
Notebooks
Format: А4
Cover: 4+4 cmyk + Substrait 4+4, 300 gram, matte finish, matte overlaminating 1+1, with
lamination 1+1
Internal block: 50 pages, 80 gram, offset printing, 2+0 (1+pantone+black), whisker on long
side.
Pens
Pens with creative out of the box design. Also these pens have special features which allow
people to write on a paper as well as on shoes. This feature is the most important for our
31. 31
target customers. However such pens will be produced for special occasions in limited
amount. Mostly it will be simple pens but with creative design.
Leaflets
Format: А4
Cover: 4+4 cmyk + Substrait 4+4, 300 gram, matte finish, matte overlaminating 1+1, with
lamination 1+1
Events and experiences [30]
KABO Brno – International Shoe and Leather Goods Fair
18.08.2013 - 20.08.2013, Brno, Czech Republic
Moda show. Fashion fair
17.10.2013 - 20.10.2013, České Budějovice, Czech Republic
STYL International Fashion Fair
18.08.2013 - 20.08.2013, Brno, Czech Republic
For Décor, Trade fair of decorations, glass, dining accessories, light Fittings,
home accessories and textile
03.10.2013 - 06.10.2013, Prague, Czech Republic
For Teens, For Family, For Youth. Youth fair
11.04.2013 - 14.04.2013, Prague, Czech Republic
Urbis Invest: International fair for investment and business opportunities and
regional development
23.04.2013 - 26.04.2013, Brno, Czech Republic
32. 32
Mobitex: International fair for furniture and interior design
23.04.2013 - 27.04.2013, Brno, Czech Republic
hobby (regional Fair) Exhibition of hobby and garden
15.05.2013 - 19.05.2013, České Budějovice, Czech Republic
Eco-Style, Fair for environmental protection and organic products
29.08.2013 - 03.09.2013, České Budějovice, Czech Republic
For Waste, International trade Fair of waste handling, recycling, industrial and
municipal ecology and cleaning
17.09.2013 - 21.09.2013, Prague, Czech Republic
For Interior, Furniture and interior design fair
03.10.2013 - 06.10.2013, Prague, Czech Republic
Wood-Tec, International trade fair for machinery, equipment and materials for
the wood processing industry
22.10.2013 - 25.10.2013, Brno, Czech Republic
Printexpo, Trade fair of printing technologies, services and materials
25.02.2014 - 28.02.2014, Brno, Czech Republic
For 3P, Trade fair for food processing, packaging and printing
Sources of the pictures: [27,28,29]
13. Attractions and reasons why product will be successful on the
market
First of all, it is necessary to remind strength and opportunities of SHOEBOX
Company.
Besides it, there are 3 main reasons why shoe boxes produced by SHOEBOX will be
successful on the market:
1. Product itself
USP: boxes from shoes can be used as simple box for keeping staff because of
its strong material and creative design. Moreover, it’s possible to combine few boxes to make
a bedside-table, shoe-shelves, closets etc.
33. 33
SHOEBOX provides footwear companies with high-quality elegant creative
cardboard boxes which will help to create added value and attract more customers.
SHOEBOX supplies different size boxes for children’s men’s and ladies’
shoes. The company offers both simple boxes and complicate laminated ones with prints or
handmade design (putting logos, usage of other materials including different types of fabrics,
foil, etc.)
2. Pricing strategy
In the very beginning SHOEBOX is going to set lower prices than competitors.
When company will reach second third level of life cycle, prices of course will grow. But still
the crucial value for us is personal relationship. That means that discounts, trials etc. will be
available without any problem for those of our clients who are ready for long-term
partnership.
The main important thing is that SHOEBOX won’t have strictly fixed prices.
Minimum price will be based on production process. Additional will depend on many factors
(including personal like/dislike). Moreover, SHOEBOX will work a lot on minimizing
production costs, partnership with suppliers etc.
3. Sales force
It is a well-known fact that in B2B business marketing plays supportive role
and has no direct influence on the amount of sales. Understanding this, SHOEBOX will focus
a lot on people development, especially sales department. We understand that it’s necessary to
develop our personnel. And in our budget we will always include different training programs
for employees.
Direct sales will play the most important role in our business. Personal contact,
personal meetings (no cold calls!).
34. 34
Summary
SHOEBOX is a company which doesn’t produce, but update and decorate boxes for
shoes. One of the main advantages of this is that boxes from shoes can be used as simple box
for keeping staff because of its strong material and creative design. Moreover, it’s possible to
combine few boxes to make a bedside-table, shoe-shelves, closets etc.
According to the Space matrix SHOEBOX should pursue an aggressive strategy. The
company has some competitive advantages (internal strengthen) which should be used to
acquire a bigger market share in Czech Republic, to strengthen companies’ position and
penetrate global market. This can be done through product development, advertisement and
strategic alliances.
The introduction step will allow us to set a starting price for start and thus
communicate a little bit about our company and obviously the product. In the growth step we
will implement a retention strategy in our clients to create an atmosphere of trust that will
ensure the durability of our business in continuity of our partnership strategy.
The price will indeed be more important than a classic box, but it is justified by the
customization and product quality and after sales service.
SHOEBOX will not make costly advertising campaigns because the budget does not
allow it. However, we will, at the stage of development of our product, contact companies
likely to buy our product but also with the general or more specialized media to create a buzz
around our original boxes.
All our corrugated boxes are made from the best packaging material in the market and
are fabricated from the best grades of raw material. One product line, modifications can be
done on this product line after the basic preparation. It can be deal with color or special order
from buyers.
Our marketing research and benchmarking has showed us that we don’t have direct
competitors at all. By “direct competitor” is meant company which produces exactly the same
product for exactly the same target audience. Most of our potential competitors have wide
product lines, and wider target audience. Only SHOEBOX has specific product for specific
target audience. This means we will be more flexible, loyal and the quality of our product will
be much better.
What is good that we still have some competitors (indirectly). This will force us to
develop faster, to invent new technologies, to develop production process and our people. All
this means that SHOEBOX is in the best position to start and develop business.
There are 3 main reasons why shoe boxes produced by SHOEBOX will be successful
on the market:
1. Product itself
2. Pricing strategy
3. Sales force
Our main mission is to provide shoe producers with high-quality creative boxes, that
will help them to satisfy customer.