Population Distribution (data in million). Source: CIA Factbook

Date: 2015-10-07; view: 455.

In order to have an idea of the potential market of these individuated segments, it could be useful extrapolate the size of the maximum number of shoes, which can be sold in a year. The total population of Ukraine is close to 44,3 mln of inhabitants (source: CIA Factbook). Less then 10% represents the part of the population in the Kiev area (nearly 2,9 mln). The 30% of the population are in the segment under 16 years old or over 65 years old. In other words, the three identified segments count people for 2 mln: 968 thousand men and 1,032 mln women indicatively. According the results of the survey and the expert panel, men use to buy, on average, 2-3 pairs of shoes a years, that means 2.420 pairs of shoes potentially sold in a year. About women, if we consider an average of 4 pairs of shoes a year, it is possible to obtain an amount of 4 mln of shoes sold. Totally, the maximum amount of shoes sold in a year in the Kiev district is close to 6,5 mln.

However, in consideration to the fact that Tod's doesn't represent a generic producer of shoes, but a luxury shoes brand, and due to the fact the Ukrainian GDP pre capita is close to 8.200 dollars (the equivalent in value of 20 pairs of shoes), the maximum number of potential customers of Tod's, represents a smaller share of the 6,5 mln of shoes, probably close to 5% (that means less than 0,3 mln of shoes in a year). Furthermore, due to the high fragmentation of the Ukrainian offer (presence of a lot of competitors in the luxury shoes segment) it is difficult for a company to have more than 10% of the market share (30 thousand shoes). Considering a gross margin of 24% on an average sales price of 300 euro, the individuated segments could increase the EBITDA of Tod's of just 2 mln euro. In summary, due to the actual market condition, and because of a limited number of customers with a financial availability to buy luxury shoes on a regular basis, the Ukrainian market doesn't result very appealing for a company like Tod's.

In summary, it is possible to say that the following market segments could be individuated:

- female between 16 and 65 years old, living in the kiev district (S.1);

- female between 16 and 65 years old, living in the main Ukrainian cities (S.2);

- male between 16 and 65 years old, living in the kiev district (S.3);

- male between 16 and 65 years old, living in the main Ukrainian cities (S.4).

According to the score obtained by the different four market segments, it appears clear that the main targets for Tod's should be the segments number one and the segments number three. The other two segments should be taken into account when, and in the case, their interest and their attractiveness will increase.