Case Type: increase sale & market share.
Consulting Firm: Monitor Group second round job interview.
Industry Coverage: Apparel, Clothing & Textiles.
Case Interview Question #00544: Your consulting firm has been hired by Durawear, a boots company based in Madrid, Spain with annual men’s footwear sales of approximately 1.0 billion Euro. Historically Durawear had very strong position in the work boots sector. However, since the early 2000s when the company began selling 
casual shoes and focusing on the growth opportunity in casual boots, sales of the Durawear work boot product line have steadily declined. Also, around the same time Durawear shifted its emphasis, one major competitor became much more assertive in the work boot market, increasing its market share to 43% in just three years.
Your consulting firm has been retained by Durawear to help develop a growth strategy. The goal is to increase both Durawear’s sales and market share. Your case leader wants you to crunch some numbers and present some findings to him. Use the following data to complete the assignment from your case leader.
Additional Information: to be provided along with the exhibits
Durawear manufactures both work boots and casual boots and supplies to three customer segments namely Laborers (Blue collar workers), Executives (White collar workers) and Students.
Population in each of the three customer segments:
- Laborers: 11 million
- Executives: 12 million
- Students: 7 million
Laborers buy 2 pairs of work boots per year whereas all others purchase only one pair per year.
Durawear charges 150 Euros per pair of work boots and 100 Euros per pair of casual boots.
The work boot market is expected to grow at 5% per annum through 2012 and the casual boot market is expected to grow at 12.5% per annum through 2012.
Questions for the candidate:
1. Calculate the market size for each of the work boot and casual boot segments
2. Calculate the total revenue and profit earned by Durawear in work boot and casual boot products
3. Which product segment is most important to Durawear and why? What strategy should they follow for each of these segments?
Possible Answers:
1. Calculate the market size for each of the work boot and casual boot segments
