🦝 RouCN · PM Case Study
Product
Definition
SKU PRIORITISATION · SPECS · PRICING · RISKS
03 / 07 ← Block 02: Strategy
Block 04: Operations →
3.1 Shoe Type & SKU Prioritisation — MoSCoW · RICE · Kano
3.2 Feature & Spec Definition — Full tech pack inputs
3.3 Pricing Strategy — COGS · Value · Psych · Policy
3.4 Assumptions Log & Risk Register
3.1
Step 1 — Candidate Silhouettes (The Product Backlog)
HERO SKU
Low-Top Street Runner
Lifestyle / Street — Silhouette 001
ConstructionCupsole / Vulcanised
UpperLeather-look PU + mesh panel
Weight280–320g (light daily wear)
ComplexityLow — fast to sample
Est. COGS₹900–1,100
Why first: broadest demand signal, lowest sampling complexity, fastest to market, most visual impact in Reels content. The "daily driver" persona shoe.
YEAR 2
Mid-Top Canvas Drop
Streetwear / Cultural — Silhouette 002
ConstructionVulcanised flat
UpperHeavy canvas + suede toe cap
Weight300–350g
ComplexityMedium — ankle collar adds steps
Est. COGS₹1,000–1,200
Why later: stronger cultural statement but needs brand credibility first. High visual impact — best as the "we've arrived" second drop.
DEPRIORITISED
Performance Runner
Sport / Active — Silhouette 00X
ConstructionInjected EVA midsole
UpperEngineered mesh + TPU overlays
Weight220–260g
ComplexityHigh — tooling cost intensive
Est. COGS₹1,400–1,800
Why not now: different customer JTBD, requires BIS performance cert, high COGS, competing against entrenched players. Not RouCN's lane in Year 1.
Framework 1 — MoSCoW (Applied to Features within Silhouette 001)
💡
When MoSCoW works best: Binary decisions — what ships in Drop 001 vs what waits. Best for scope control and preventing feature creep in the first batch. Not great for comparing competing silhouettes — that's what RICE is for.
Must Have
Low-top silhouette (breadth of use)
Raccoon emblem on tongue label
Sizes UK 6–10 (covers 80% demand)
BIS-compliant upper + sole materials
Noir Chrome colorway (hero)
ISI mark on label
Padded collar for comfort
Should Have
2nd + 3rd colorways (Bandit Bone, Survivor Forest)
Memory foam insole
UK 11 size option
Custom branded shoelace (acid green)
QR code on hangtag → brand story
Black branded shoe box
Could Have
UK 5 / UK 12 edge sizes
Reflective heel tab detail
Embossed raccoon on outsole
Tissue paper in box
Sticker pack insert
Thank-you card (handwritten-style)
Won't Have (Drop 1)
Women's sizing (separate last needed)
Performance midsole technology
Collab / co-branded edition
Waterproofing treatment
Wide-fit variant
Slip-on variant
Framework 2 — RICE Score (Applied to: Which Silhouette to Build First?)
💡
When RICE works best: Comparing competing options with different effort profiles. Forces honest estimation of reach and confidence — stops gut-feel decisions. Formula: RICE = (Reach × Impact × Confidence) ÷ Effort
Silhouette Reach
Users/qtr
Impact
1–3
Confidence
%
Effort
person-months
RICE Score Decision
Low-Top Street Runner
Silhouette 001 — daily lifestyle
500 3 80% 2
600
Build First
Mid-Top Canvas Drop
Silhouette 002 — street culture
300 3 60% 3
180
Year 2
Performance Runner
Silhouette 00X — sport
200 2 40% 5
32
Deprioritised
Framework 3 — Kano Model (Applied to: Which Features Delight vs Disappoint?)
💡
When Kano works best: Deciding which features to invest in for customer delight vs baseline hygiene. Basic features prevent dissatisfaction — absence causes rage. Performance features scale satisfaction linearly. Delighters create advocacy and word-of-mouth. RouCN needs all three layers working.
🔴 Basic (Must-Have Hygiene)
Absence = rage. Presence = indifference.
Correct size delivered (size chart accuracy)
No sole delamination within 3 months
Delivery within promised window (7 days)
No colour fading after 10 washes
Symmetric stitching, clean finish
BIS compliance (legal basic, non-negotiable)
🔵 Performance (More = Better)
Linearly scales satisfaction & willingness to pay.
Comfort level on Day 1 — no break-in pain
Material quality — PU texture, density, grain
Outsole grip on wet floors
Tongue padding thickness
Lace durability + eyelet reinforcement
Breathability of mesh panels
🟢 Delighters (Unexpected Joy)
Not expected — drives advocacy & social sharing.
Unboxing moment — black box, green tissue, scent strip
Raccoon sticker pack inside box
QR code on hangtag → raccoon origin story video
Acid-green branded lace (swappable default)
Handwritten-style drop number on insole
Founder DM response within 24hr on first purchase
Prioritisation Method Summary — Which to Use When
Decision TypeBest MethodWhy
Which silhouette to build first?RICECompeting options with different effort profiles — forces honest scoring
What ships in Drop 001 vs waits?MoSCoWBinary in/out decisions with a fixed scope and budget
Which features create loyalty vs just satisfy?KanoDistinguishes hygiene from delight — guides investment in the right layer
Which colorway to produce more of?RICEPost-launch sell-through data feeds into reach + confidence scores
🦝 Drop 001 Decision: One Silhouette. Three Colorways. No compromises on basics.
Low-Top Street Runner (RCN–001) in Noir Chrome, Bandit Bone, and Survivor Forest. MoSCoW defines what ships. RICE confirmed this silhouette first. Kano tells us to nail the basics before investing in delighters — but ship 2 delighters anyway (box + QR code) because they cost almost nothing and generate the content RouCN needs to grow organically.
3.2
SKU: RCN–001 · Low-Top Street Runner · Drop 001
The Survivor Series
₹3,499
Upper Material
Primary: 1.2mm PU leather (smooth grain, matte finish)
Panel: 3D spacer mesh — lateral sides for breathability
Lining: Moisture-wicking textile lining, full foot bed
Toe cap: Reinforced PU toe box (structural, not rigid)
Sole Construction
Outsole: Vulcanised rubber — herringbone pattern, anti-slip
Midsole: 15mm EVA cushion, medium density (Shore A 52)
Insole: 5mm memory foam + perforated top cloth
Stack height: 26mm heel / 20mm toe
Hardware & Lacing
Eyelets: 7-pair, brass-tone metal, flat profile
Laces: Flat woven lace, 120cm, acid green (signature)
Tongue label: Woven label — RCN emblem + BIS ISI mark
Counter: Rigid heel counter, TPU internal
Structural Details
Collar: 12mm padded collar, same PU upper material
Stitch: Double-stitch on all load-bearing seams
Foxing tape: 18mm black vulcanised tape, clean wrap
Last: Indian D-width last (wider toe box standard)
Labeling & Compliance
BIS mark: ISI mark — IS 17043 Part 2:2024
Label fields: MRP incl. GST, size (UK/IN), material, manufacturer address, country of origin
Trademark: ™ on all external branding until ® granted
Hangtag: Black card, RCN logo, QR code, SKU code
Packaging
Box: E-flute 2mm rigid black shoe box, 310×180×115mm
Print: RCN raccoon emblem, spot UV finish, matte
Tissue: Acid green 18gsm tissue, single wrap per shoe
Inserts: Sticker pack (3 raccoon stickers) + brand card
Outer: Plain brown corrugate for shipping, branded tape
Three Colorways — Drop 001
🖤
Noir Chrome — RCN–001–NR
Upper: #1C1C1C · Sole: #2A2A2A · Lace: #C8F542
The hero colorway. All-black PU upper, dark chrome outsole, acid-green lace as the only colour pop. Versatile — pairs with everything. This is the one that appears in all launch content. Produces 60% of Drop 001 batch.
🤍
Bandit Bone — RCN–001–BB
Upper: #EDE8DC · Sole: #D4CFC4 · Lace: #1C1C1C
Off-white PU upper, bone sole, black lace. The premium-looking option — harder to keep clean, which is exactly why it signals confidence. Produces 25% of Drop 001 batch.
🌿
Survivor Forest — RCN–001–SF
Upper: #2D3D2D · Sole: #1A2A1A · Lace: #C8F542
Deep forest green PU upper, darker green sole, acid-green lace. The identity colorway — the one RouCN fans will identify the brand by in 3 years. Limited run — produces 15% of Drop 001 batch. First to sell out by design.
Size Run — Drop 001
UK SizeIN SizeEU SizeFoot Length (mm)Drop 001 Qty %Rationale
UK 6IN 6EU 39248mm8%Lower demand, include for completeness
UK 7IN 7EU 40255mm18%High demand — college segment
UK 8IN 8EU 41261mm25%Peak Indian male size — largest allocation
UK 9IN 9EU 42268mm25%Peak Indian male size — equal to UK8
UK 10IN 10EU 43275mm16%Strong urban demand
UK 11IN 11EU 44282mm8%Smaller segment, but avoid stockouts
Size distribution based on Myntra India footwear demand data + FDDI Indian foot measurement studies. Indian feet are wider than global standard — last must reflect D-width.
3.3
Step 1 — Build the Cost Floor (COGS per Pair)
Cost ComponentPer Pair (₹)Notes
Factory cost (materials + labour)₹950Agra/Kanpur cluster estimate, MOQ 100 pairs. Drops to ₹850 at MOQ 300.
Incoming QC + factory liaison₹40Spot QC, 10% of pairs checked, ₹4,000/batch at 100 pairs
BIS certification amortised₹40₹40,000 one-time cost amortised over 1,000 pairs
Packaging (box + tissue + inserts)₹95Black rigid box ₹60 + tissue ₹5 + sticker pack ₹15 + hangtag ₹10 + brand card ₹5
Inbound freight (factory → warehouse)₹30LTL freight, Agra to Delhi/Mumbai hub
Warehousing (3PL, monthly fee spread)₹35₹3,500/month for small SKU count, spread over 100 pairs/month
Outbound last-mile (D2C)₹120Delhivery/Shiprocket avg for 800g shoe box, Pan-India
GST (18% on MRP — input credit offset)₹315On ₹3,499 MRP: 18% = ₹629 collected, ~₹315 net after input credit on materials
Payment gateway (Razorpay 2%)₹702% of ₹3,499
Total COGS + Fulfilment (D2C)₹1,695All-in cost per pair sold through D2C
Gross Margin at ₹3,499 MRP (D2C)₹1,804 → 51.6%Above 45% guardrail. Approaches 55% target — room with batch 2 COGS reduction.
Step 2 — The Pricing Stack (Floor → Sweet Spot → Ceiling)
🔻 Cost Floor
₹2,499
Absolute minimum — covers COGS + fulfilment with ~30% GM. Below this RouCN loses money on every pair. Never go here except on clearance of a discontinued colorway — and even then, only once, with a clear reason.
⭐ Sweet Spot
₹3,499
The launch price. Sits at the psychological ₹3,500 threshold (feels below ₹4,000, signals more than ₹3,000). Delivers ~52% GM on D2C, ~38% on Myntra (after marketplace fees). Competitive with Comet's entry price, below Gully Labs' premium end. The price that says "you're getting more than you're paying for."
🔺 Value Ceiling
₹4,499
What the market will bear once brand equity is established. The Survivor Forest colorway can be priced here as a limited-drop premium in Year 2. Comet operates at this level — once RouCN's story is established, this is achievable. Don't go here until NPS ≥ 45 and RPR ≥ 20%.
Step 3 — Competitive Price Positioning
Campus
₹800–2.5K
Yoho
₹2.5–5K
🦝 RouCN
₹3,499
Comet
₹3–5.5K
Gully Labs
₹3–5K
Nike/Adidas
₹7–20K
₹0
₹20,000+
RouCN at ₹3,499 positions below Comet's midpoint, above Yoho's premium end, and dramatically below Nike/Adidas. This is the "smart choice" position — not cheap, not a stretch. Exactly where the JTBD analysis said the market gap lives.
Step 4 — Psychological Pricing Tactics
Charm Pricing
₹3,499
Not ₹3,500. The ₹1 below a round number signals "we thought about this price" and keeps the perception below the ₹4,000 psychological barrier. Industry standard — but it works.
Anchor Pricing
₹4,499 → ₹3,499
On the product page: show the "regular price" (future steady-state) and the launch price. Creates perceived value and urgency without a fake sale. Only use if brand has committed to raising price — not as a permanent fixture.
Scarcity Pricing
SF: ₹3,499 fixed
Survivor Forest (15% of batch) is not discounted — ever. It sells out first by design. Scarcity is the price signal. "Only 12 left" is more powerful than a 10% discount for a brand-aware buyer.
Step 5 — Price Architecture Across Channels
ChannelList PriceEffective MarginMarketplace FeeNotes
D2C (Shopify) ₹3,499 ~52% GM 2% PG only Primary channel. All customer data owned. Best margin. Push traffic here.
Myntra ₹3,499 ~35–38% GM ~25–30% commission Price parity with D2C mandatory — Myntra cannot be cheaper. Discovery channel.
Amazon India ₹3,499 ~33–36% GM ~28–32% referral fee Year 2 activation. Volume driver, not margin driver. Parity pricing always.
Pop-Up / Offline ₹3,499 ~55% GM Venue rental only Year 2. Best margin + brand experience. No intermediary. Cash-preferred.
Step 6 — Markdown & Discount Policy
✅ When RouCN WILL discount
Waitlist-exclusive launch offer: 10% off for first 48 hours, waitlist members only. Rewards early trust-builders.
Festive season (Diwali, New Year): max 12% off, 48-hour window, D2C only — never sitewide forever.
Discontinued colorway clearance: up to 20% off to clear inventory. One-time, clearly communicated as "last batch."
Referral reward: ₹200 off next purchase for referring a paying customer — not a discount, a loyalty mechanic.
❌ When RouCN will NOT discount
Sitewide permanent sale banners — trains customers to wait and erodes brand value permanently.
Discounts deeper than 15% on current colorways — below 45% GM guardrail is never crossed.
Marketplace-initiated flash sales (Myntra Big Fashion Festival) — opt out unless stock needs clearing. Protect price perception.
Discounting to match a competitor's price — RouCN does not price-match. Story is the differentiator, not price.
🔬 PM Hypothesis H9 — Pricing as Brand Signal

₹3,499 is not the cheapest RouCN could price. It is the most strategic. A brand that launches at ₹2,499 cannot credibly move to ₹3,999 without customer backlash. A brand that launches at ₹3,499 can move to ₹4,499 as proof of brand equity — which is exactly the Year 2 plan. Price anchoring works upward only if you start high enough.

Evidence: Direct-to-consumer brand pricing research (Simon-Kucher 2024) shows D2C brands that under-price at launch face a 40% higher churn rate — customers attracted by price leave when price rises. Story-led brands that price for value retain 2× longer.
3.4
Assumptions Log — Things Assumed True, Not Yet Validated
A1 — Demand
Indian urban youth aged 18–30 will pay ₹3,499 for an unknown brand if the story and design are strong enough — without peer social proof at launch.
Validate via: waitlist signups (target 200+ before launch), first 30-day sell-through rate. Invalidated if: <50 orders in first 45 days.
A2 — Quality
The Agra manufacturing cluster can produce a pair that scores ≥4.2★ on first-purchase review without a QC agent on-site for every batch.
Validate via: PP sample review + 100% QC on batch 1 pairs. Invalidated if: rating drops below 4.0 within 30 days of launch.
A3 — Channel
Micro-influencers (20K–150K followers) in fashion/streetwear will generate sufficient organic reach to hit 50 orders without paid advertising in Q2.
Validate via: influencer Reel view count (target 3 Reels at 10K+ views). Invalidated if: <3 Reels break 5K views after 10 influencer seeds.
A4 — Sizing
UK 7–10 covering 84% of allocation will satisfy demand distribution — UK 8 and UK 9 together at 50% will not stockout before other sizes.
Validate via: first 50 order size distribution. Adjust batch 2 allocation accordingly. Return rate for size mismatch <5%.
A5 — Margin
Agra factory COGS of ₹950 per pair at MOQ 100 is achievable. Factory quotes are preliminary — final costing may vary ±10%.
Validate via: signed proforma invoice from factory before placing production order. Buffer 15% in financial model.
A6 — Timing
Production-to-delivery timeline of 60–75 days from factory order is achievable for a first-time brand with no existing relationship leverage.
Validate via: factory confirmation of lead time in writing. Build 3-week buffer into all launch planning. Invalidated if lead time exceeds 90 days — recalibrate launch date.
Risk Register — Likelihood × Impact Matrix
IDRiskLikelihoodImpactHeatMitigationOwner
R01 Manufacturing quality failure — batch 1 has defects (sole detachment, colour inconsistency, sizing error) discovered post-delivery High Critical Critical 100% QC inspection on batch 1. PP sample signed off before production order. No shipment without QC sign-off. Defect rate >3% = full batch rework before dispatch. Founder
R02 BIS certification delay — IS 17043 certification takes longer than expected (3–4 months is common), blocking marketplace listing High High High Apply for BIS certification in Q1, parallel to sampling. Use BIS-empanelled lab from day 1. D2C launch can precede marketplace listing. Buffer 6 weeks in timeline. Founder
R03 Zero organic traction — influencer seeds don't generate content, Reels underperform, waitlist stays below 50 signups by launch week Medium High High Seed 15 influencers minimum (not 5–10). Brief includes exact caption style + Reel format. Track views by Day 7 — replace underperformers with new seeds in Week 2. Keep ₹40,000 paid ads budget as backup. Founder
R04 Cash runway exhaustion — production delays + low sell-through = ₹10L depleted before batch 2 can be funded from revenue Medium Critical Critical Max burn ₹1.5L/month guardrail. Pre-sales / waitlist deposits (even ₹100 token) to validate demand before placing production order. Batch 1 sized at 100 pairs — not 300. Founder
R05 Copycat / duplication — a competitor or Agra factory copies the silhouette and sells at ₹1,999 within 6 months of launch Medium Medium Medium Trademark registered before launch (TM on name + emblem). NDAs with factory. Story moat — a copycat gets the shoe, not the raccoon identity. Brand is the moat, not the product spec. Founder
R06 Myntra listing rejection — Myntra requires minimum brand history, review count, or catalogue quality that RouCN can't meet at launch Medium Medium Medium Myntra onboarding started in Q2 (not Q1). D2C reviews built to 30+ before Myntra submission. Professional catalogue photography planned from Day 1. Backup: Ajio or Nykaa Fashion as alternative marketplace. Founder
R07 Size run stockout on hero size — UK 8/9 sells out in Week 1, leaving demand unmet and customers going to a competitor Low Medium Medium UK 8 + UK 9 = 50% of batch. Reorder trigger set at 20% remaining stock (20 pairs). Lead time buffer built into reorder plan. Waitlist for size — "notify me" feature on Shopify from Day 1. Founder
R08 Negative viral moment — a defective pair gets posted by a micro-influencer, video goes viral before RouCN can respond Low Critical High Founder monitors all mentions daily in Month 1. Response SLA: under 2 hours on any negative post. Protocol: acknowledge → replace → thank publicly. One bad pair handled well = brand trust. Ignored = brand death. Founder
🔬 PM Hypothesis H10 — Batch Size as Risk Management

Starting with 100 pairs (not 300) for batch 1 is the correct risk-adjusted decision even though per-unit COGS is ₹100 higher. The ₹10,000 extra cost buys the right to learn — size distribution data, quality validation, channel performance data — before committing to a larger order. The worst outcome is 300 pairs of a product that has a quality issue or a sizing problem. The best outcome is 100 pairs that sell out in 3 weeks and generate the data to reorder 300 with confidence.

Evidence: Lean startup principle — minimum viable batch. Comet's founder: "building from scratch is far more challenging" — the way through is iteration speed, not batch size.
RouCN · PM Path · 03 of 07
🦝
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