Professional Documents
Culture Documents
DECLARATION
I declare that is my original work and has not been published before.
ACKNOWLEDGEMENT
In the name of “Allah”, the most beneficent and merciful who gave me strength and
knowledge to complete this report. This report is a mandatory part of our degree of B.B.A
(Honors).This has proved to be a great experience.
I would like to express my gratitude to my instructors; Ms. Saira Farooqi, Ms. Manal Talat,
Ms. Fizza Abbas, Ms. Farhat Iqbal, Ms. Anum Zafar and Ms. Maryam Rehmat; who gave me
this opportunity to fulfill this report and guided me through every hindrance. I would also like
to thank my colleagues who gave many helpful comments which helped me a lot in preparing
my report.
Nothing valuable would have been possible without The Gracious Allah, my instructors and
friends. I thank you all for making me what I am today.
PREFACE
The purpose of Report is to share the process of learning and experience that I underwent
during this research project of about Servis Shoes. The major reason behind choosing this
company was to grasp the idea of how this big company deals with the issue of sales and
profitability. I learnt a lot through my research project as I got firsthand experience of how
actually such company works.
Lahore 54000
Pakistan
Telephone 042-37569536
Dear Sir/Madam,
The Bachelor in Business Administration class has a course requirement for their complete
organization analysis that entails project research.
It is requested that you allow Student of to spend time and conduct research in your
Organization.
Thank you.
Ms Saira Farooqi
TABLE OF CONTENTS
EXECUTIVE SUMMARY....................................................................................................................7
INTRODUCTION..............................................................................................................................9
Rational of the study:................................................................................................................10
Problem Identification:.............................................................................................................10
Research Plan:..........................................................................................................................12
INTRODUCTION OF THE ORGANIZATION......................................................................................13
History.....................................................................................................................................15
Misson and vision.....................................................................................................................15
Values.......................................................................................................................................16
Servis’s Products.......................................................................................................................16
Major segmentation variables..................................................................................................17
ORGANIZATIONAL STRUCTURE.....................................................................................................21
SWOT ANALYSIS PROVIDED BY THE ORGANIZATION....................................................................22
ORGANIZATION ANALYSIS PROVIDED BY THE ORAGANIZATION..................................................25
Company objectives..................................................................................................................26
Strategies employed.................................................................................................................26
Policy Formulation Process.......................................................................................................27
ORGANIZING.................................................................................................................................29
Retail operations.......................................................................................................................30
Whole sale department............................................................................................................30
Corporate sales department.....................................................................................................30
Product development centre....................................................................................................36
Chief merchant organizing department....................................................................................31
Sourcing department................................................................................................................31
Replenishment department .....................................................................................................31
Finance and accounts department...........................................................................................31
Marketing department.............................................................................................................31
STAFFING PROCEDURE.................................................................................................................33
Recruitment:.............................................................................................................................34
Orientation...............................................................................................................................35
LEADING FUNCTION.....................................................................................................................36
Employee compensation and benifits.......................................................................................37
Incentives and motivations.......................................................................................................38
Employee Training and Career development program.............................................................38
Performance management.......................................................................................................40
CONTROLLING..............................................................................................................................41
Contolling company’s resources...............................................................................................42
Mis (managemnt information system) department.................................................................43
Corporate Social Responsibility................................................................................................44
COMPETITORS COMPARATIVE ANALYSIS.....................................................................................45
Bata..........................................................................................................................................46
Starlet.......................................................................................................................................47
Competitive Advantage:...........................................................................................................48
SWOT ANALYSIS............................................................................................................................49
‘PEST’ Analysis..............................................................................................................................51
FINDINGS AND DATA ANALYSIS....................................................................................................52
Conclusion:...............................................................................................................................76
SUGGESTIONS AND RECOMMENDATIONS...................................................................................78
ANNEXURE....................................................................................................................................79
References:...............................................................................................................................84
EXECUTIVE SUMMARY
This report has been compiled as research project of final year of BBA at Kinnaird College
for Women Lahore. This report provides an analysis and evaluation of Servis shoes in
particular and the shoe industry in general.
Servis is Pakistan’s leading retailer that has set new record standards and created new
benchmarks in the retail industry. It has a heritage spanning over half a century and is today
regarded as one of the most respected corporate citizens. The Group invests actively in CSR
initiatives and projects nationally as well as abroad.
The objective of my project is to find causes for low market share of Servis shoes. The data
sources are primary. Data collection methods include structured interview with Servis’s
officials and questionnaires among consumers.
The purpose of this report was to thoroughly study the Servis brand, all the factors affecting
it, and opportunities and threats for the product in the near future. Micro environmental
analysis has also been done in line with the PEST and SWOT Analysis. The report also
highlights the critical success factors for the company to follow.
After a thorough analysis and recommendations via using different strategic tools we have
learned how to reach strategic conclusions based on competitive analysis of different
organization in the industry. The strengths and weaknesses of the company have been
analyzed. The current strategies followed by Servis shoes have also been highlighted and
recommended strategies have been proposed.
Servis is a well known brand in the shoe industry of Pakistan with a strong customer base.
However, the shoe industry carries huge potential and can be further explored with the
following steps.
A very efficient planning of resources is required. This is exactly what this report tries to aim
with its analysis and recommendations. The company should use different strategies to attack
market leader, follower and niche to increase market share.
INTRODUCTION
CHAPTER 1:INTRODUCTION
Research Objectives:
Following are the general objectives of this research:
Problem Identification:
The problem I picked for Servis shoes is related to its market share. Servis shoes is unable to
increase its market share. There may be a lot of reasons for low market share which I will
analyze in this project.
Hypothesis:
Low market share of Servis shoes is may be due to poor quality of shoes, inefficient
promotional efforts and high competition. Keeping in mind these reasons I made following
hypothesis for the study:
Hypothesis: 1
Null Hypothesis: low market share is not due to poor quality of shoes.
Hypothesis: 2
Null Hypothesis: low market share is not due to poor promotional efforts.
Hypothesis: 3
Research Plan:
In this project I will be discussing the Servis shoes specifically. Starting from history of
Servis industry and then telling the mission and vision of Servis shoes and the company
objectives. Then discussing organization structure briefly and the SWOT Analysis. The
organization will be discussed deeply through its managerial functions, departmental
functions, staffing procedures, leading functions, controlling functions. And then the
competitor’s comparative analysis will be provided. Then I will be discussing the research
problem in detail with the statistics I get from the survey. In the end I will give suggestions
and recommendations.
Research Methodology:
Analysis techniques:
Chi-square:
INTRODUCTION OF THE
ORGANIZATION
HISTORY
Service Group is well known for its consumer products and its contribution to the diversified
industrial growth of the country. Servis Group is Pakistan's largest footwear manufacturer
and exporter.
The Group was set up in 1958 and today has sales of more than PKR 9 billion. The group has
its headquarters at Lahore, factories located at Gujrat and Muridke. It operates two modern
shoe factories. The Gujrat factory was setup in 1964 and Muridke factory commenced
production in 1989.
VALUE STATEMENT
At SSC, we believe in our employees and realize that they are the biggest asset of our
company. We respect their passion for our business and acknowledge their integrity and
commitment which is reflected in their dedication towards achieving excellence.
Our Corporate strategy of empowering our people makes them rely increasingly on teamwork
and innovation and also makes them accountable for the decisions they take.
SERVIS PRODUCTS:
It has also established some of the most loved footwear brands including:
Liza shoes are most famous among ladies. There are 108 designs in it.
There are 56 shoe designs in it including mocassions..Its minimum price is 750 and
maximum is 1700.
The unique style and amazing comfort of Calza have made it Pakistan’s most favourite
slipper. Designed to keep you light and carefree wherever you go, Calza is perfect all day
casual.
The leading brand of sports footwear in Pakistan, Cheetah has developed a cult following
among sportsmen and has come to symbolize the sportsman’s spirit. Full of passion,
confidence and willpower, Cheetah incorporates superior technology and design that have
made it the shoes of choice for professional athletes. There are 35 designs in it. The price is
between 700-1595.
SKOOZ refers to school shoes. Their variety comes after 14 th august each year. It puts a
whole new spin on student life with comfortable and durable shoes that are perfect for fun on
and off the school yard.
TOZ brings kids a colourful world packed full of fun and adventure. The fun never stops with
TOZ. It includes:
Brilliant colours and designs
Contemporary styling
Full of fun and adventure
Geographic Factors
The company has one CDC (central distribution centre) which distributes the products into
following districts.
Peshawar
Islamabad
Rawalpindi
Jhelum
Gujrat
Gujranwalwa
Sialkot
Sargodha
Lahore
Faislabad
Sahiwal
Multan
Bahawalpur
Sukkur
karachi
Psychographic Factors
Social Class: Middle Class (lower, middle, upper), Upper Class (lower, middle, upper).
Demographic Factors
Personal Factors
Age: 5-19 years; 20-34 years; 35-49 years; 50-60 years; 60+
ORGANIZATIONAL
STRUCTURE
ORGANIZATION SETUP
To achieve gigantic results, business should be in a complete organized structure. In other
words we can say that there should exist a complete coordination between employer and
employee both a horizontal and vertical level. More especially we say
that a company should be so organized that everyone in the company has a thorough
knowledge of who is to do what and who is responsible of what. There should not be any
confusion and complication among authority and responsibility.
Servis Industries (Pvt.) Ltd. Just only performs the manufacturing activities at Gujrat and
Muridke, whereas selling activities are performed through
Servis sales Corporation, which is also a member of Servis Group of Industries. Service Sales
Corporation has its 258 retail outlets in whole of the country for
selling activities of service group on industries and every person has complete knowledge
about his/her duties and responsibilities. Therefore we can say that
servis group of industries has strong organization setup which is key element of its success.
SWOT ANALYSIS
PROVIDED BY THE
ORGANIZATION
STRENGHTS
Pakistan’s leading retailer that has set new record standards and created new
benchmarks in the retail industry.
The company is a quality manufacturer, believes on customer satisfaction and
comfort.
All the operations of the company are according to the laws of Pakistan Trade Policy.
Company pays full of its Sales Tax and income tax as well as other duties to the
Government. Company plays a vital role in representing its country as they
manufacture for export purpose also.
Accessible to all income segments in country.
Geographical coverage
Image of durable shoes
Strong market share in sports and school shoes
Brand names like Cheetah, Don Carlos are highly recognized.
WEAKNESSES
The company has a low market share of 9.1 % in terms of value and 5.3% in terms of
volume.
Distribution network as compared to Bata is little bit weak.
Company don’t have their own manufacturing plant.
OPPORTUNITIES
A lot of market size is available for Servis which is currently missed in the shoe
market.
Foreign markets and importers are another big opportunity for the company but the
company is not availing them at present.
There is room for SSC to open more outlets in country.
Creation of innovation and customized products.
Further segmentation with sports segment.
Improve shopping experience at retail outlets.
THREATS
On the other hand every threat is a big opportunity. The company face a big threat in
market as some of the businessmen have sated buying products from the cheaper
markets of the world as China, Vietnam etc and they sell it here at low prices.
Government duties and High sales tax ratio.
Inflation is also a fearful threat for SSC.
Aggressive marketing tactics by other shoe manufacturers.
Different market segments have been targeted by competition.
ORGANIZATION
ANALYSIS PROVIDED BY
THE ORGANIZATION
COMPANY’S OBJECTIVES
Our products should meet the customer expectations.
Our basic concern is to satisfy customer.
Our aim is to provide good job opportunities and satisfaction to people.
We should respect our competitors.
Employees are as important as external customers.
Teamwork and cooperation area more important than individual action.
Never be satisfied with the level of quality, always strive for continuous
improvement.
The aim is to become the quality leader
SERVIS MANAGEMENT
Strategies employed.
Servis brands are the preferred choice in their categories. Consumer insight drives all
aspects of its marketing and communication efforts.
Servis communication to the consumer is relevant, cutting-edge, and adheres to the
highest standards of responsible communication.
Servis is seen as the No. 1 career destination for talented, motivated and ambitious
professionals.
Servis result-oriented organizational structure ensures effective communication and
empowered self-management.
Fully integrated systems ( Servis, suppliers, customers) ensure efficient business
processes.
Non-strategic activities and products are outsourced or discontinued.
There are sets of policies, which are uniform for everyone and strictly enforced. The
procedure for policy formulation is transparent; where everyone is given a chance to express
one's opinion. The Chief Executive gives the ultimate approval. Policies are formulated in the
various meetings as outlined below.
Meetings are the basic way of communication at Servis. Many meetings are held with the
objective of:
Coordination
Defining problems
Finding solutions
Reporting
To formulate policies
Sharing Views
Sociability
Meetings of the Head of Departments are held after every two weeks (fortnightly).
Inter departmental meetings are held daily, once in two days, or weekly depending on the
situation and need.
Regular meetings are organized at each level of the organization to keep the company moving
in a systematic manner. The main objective behind these meetings is to bring forth the
employees at a forum, where they can discuss their problems, give suggestions for
improvement and development. In addition, they can share their experiences with each other.
ORGANIZING
CHAPTER 6: ORGANIZING
Stores Management
Sales Projections
Revenue Generation
Achievement of Sales Targets
Identification of new business locations
keeping an eye on the competitor’s strategies
Improving Customer Services, etc.
Over 400 outlets in18 Districts
These 18 Districts are further divided in 3 Regions i.e. North, Central and South
headed by Operation Heads.
WHOLE SALE DEPARTMENT
The department is responsible for sales of products in large quantities to different dealers and
retailers through its Wholesale Business Centers.
The department is responsible for key dealers and servis stalls at hyper markets such as
Makro, Metro, Hyperstar, etc.
Wholesale Distribution
Responsible for Wholesale footwear products selling to retailers through Distributors and
Wholesale Business Centers.
Responsible for selling footwear products to institutions like Army, Police, Schools, etc.
Responsible for developing full range of products keeping in mind the latest trends,
competition, and the future needs of customers. The range development team conceives new
ideas for the coming season and then gets the samples made through designers.
Responsible for merchandising of all the channels such as A-Pair, FOL, Mega Stores, Best
Value Stores, Shoe Planet, etc.
Responsible for providing a financial and fact based analytical point of view to all decisions
through consulting the historical data.
Creating profitable yet achievable financial plans. Performing assortment analytics to support
buying process.
The supply Chain focuses on the efficient execution of warehouse operations to achieve
minimum order processing lead time, efficient replenishment of articles & assortments with
an emphasis on driving down operating costs while increasing service levels
SOURCING DEPARTMENT
Responsible for taking the buying decisions. The products are acquired through various
sources including our factories in Gujrat & Muridke.
The sourcing department is also responsible for negotiating and fixing pricing issues related
to different articles.
REPLENISHMENT DEPARTMENT
Responsible for ensuring that the products are available at the shops, on the shelves, at the
right time, in coordination with planning department.
This department is responsible for taking all financial decisions for the Company and also
performs the treasury function. Management of overall accounts of SSC and its subsidiaries,
verification of stock statements, personal accounts matters, conducting business reviews,
budgetary planning and controls, arrangement of funds, disbursements of salaries, etc.
encompass the scope of the department.
MARKETING DEPARTEMNT
The decision how to market the product is taken by some of the top management and
marketing personals. Since the company believes on research based marketing so all the
representatives are directed to research about any specified product. Upon this research the
top level personals get together to take the final decisions. Marketing department is
responsible for the whole, marketing strategy. How to market an existing product and how to
launch a new product? A specified budget is allocated for the marketing and launching
purposes for the whole year. Advertisement campaigns are also launched for the different
brands by the marketing department.
This department is responsible for all marketing support to SSC including the marketing
research, consumer insights, brand management, launching campaigns, looking after
corporate social responsibility, liaison with agencies, etc.
STAFFING PROCEDURE
RECRUITMENT POLICY
METHODOLOGY
POLICY / PROCEDURE
Yearly manpower plan is made and finalized by the end of February every year
covering the positions that are vacant in every department and position criterion such
as qualification, experience, etc. and is followed throughout the year
After the position identification through manpower plan, the recruitment effort starts
following the above mentioned methodology, whichever is applicable.
Data / CVs are collected
After preliminary screening, a short list is made based on the criteria finalized against
each position
Shortlisted candidates are called for preliminary interviews with HR.
Selected candidates are called for secondary interviews whereas in few cases,
unsuccessful candidates are sent rejection letters.
Selected candidates are then interviewed by a team consisting of HR & Concerned
Department Head.
In case of a senior position, the final interview is done by the members of
Management Team as well as COO.
Successful candidate is given Appointment Letter.
ORIENTATION
LEADING FUNCTION
METHODOLOGY
Industry Benchmarks
Market Best Practices
POLICY / PROCEDURE
Employees are provided Provident Fund with equal contribution from both the
Company and the employee.
Company provides health insurance to the employee based on his grade seniority in
the Company. The health insurance issues cards to employees along with a list of
Panel of Hospitals from where, an employee can avail medical treatment by just
showing his card at the hospital, according to his/her limit assigned by the insurance
company.
This insurance generally covers, Hospital Care, Room & Board, Major Medical Care,
Maternity both Normal & C-Section.
Employees are provided Group Life Insurance as well based on their salaries. For
example, the employee getting a monthly salary of Rs. 6,000/- will get a maximum of
Life insurance to Rs. 425,000/- and employees getting a sum of Rs. 10,000/- and
above will get a maximum of Rs. 1 Million.
Employees are also given yearly bonuses up to 3-6 Basic Salaries based on their
individual performances.
Employees are provided Annual Leaves up to 20 days, sick 15 days, casual 10 days
and hajj leaves for 40 days.
Leave Fare Assistance is given up to one basic salary upon availing Annual Leaves
provided the employee has complete leave year.
Company maintained cars are given to employees based on their grades starting from
800 cc to 1800 cc.
Mobile allowances are given to employees based on their grades.
Welfare Scheme is also run for Field Staff of SSC generally covering areas such
medical treatments or marriage.
EMPLOYEE TRAINING
METHODOLOGY
Generally, the training at SSC is provided in two categories which is Corporate Office Staff
and field staff through following:
In-house Trainings
On the Job Training
External Trainings through training institutes
Training Abroad
POLICY / PROCEDURE
At the start of every year, training needs assessment is conducted, based on which, a
comprehensive training calendar of all SSC Corporate Office Staff is prepared and
followed throughout the year.
Based on the calendar, people are provided training using the above mentioned
methodology whichever is applicable.
In the same manner, a comprehensive training need assessment is done for Field staff
working in Retail and Wholesale Departments.
These staffs are given training through in-house trainers, District coaches using SSC’s
Excellence Centers set up across Pakistan.
Also a comprehensive yearly training calendar is made for field staff and followed
throughout the year.
PERFORMANCE MANAGEMENT
METHODOLOGY
Generally, the performance reviews are conducted at SSC based on the following:
Mid-Year Reviews
Yearly Performance Appraisals
POLICY / PROCEDURE
At the start of every year, all the staff members are given yearly objectives based on
which, they are to be appraised at the end of the year.
The Appraisal form include employees view about his own performance
Behavioural attributes aligned to areas such as Makes things happen, communicator,
develops team and people, cares for customers, innovative, team player, ethical,
planning, leadership, financial acumen, etc.
Performance ratings based on whether the individual Didn’t meet expect, nearly meet
expect, met expect, exceeded expect, etc.
Supervisor’s comments are put in before the final review with employee.
HR Circulates performance appraisal forms to GM/Dept Heads on December 01
every year with employee data.
GMs/Dept Heads pass forms down the line:
HR conducts two 3-4 hour training sessions on Setting objectives and Performance
Appraisal Interview.
Employee After filling up his section of performance, his/her supervisor gives his
comments.
Supervisor then evaluates employee on his behavioural attributes.
Supervisor conducts face to face performance review with completed forms and
agrees on his performance as well as next year objectives.
Increments/Bonuses are finalized
CONTROLLING
CHAPTER 9: CONTROLLING
CONTROLLING COMPANY’S RESOURCES
The Company does permit a limited amount of personal use of these facilities, including
computer, e-mail and Internet access. However, these facilities must be used responsibly by
everyone, since misuse by even a few individuals has the potential to negatively impact
productivity, disrupt company business and interfere with the work or rights of others.
Therefore, all employees are expected to exercise responsible and ethical behavior when
using the Company’s Information Technology facilities. Any action that may expose the
Company to risks of unauthorized access to data, disclosure of information, legal liability, or
potential system failure is prohibited and may result in disciplinary action.
To protect the integrity of Servis’s computing facilities and its users against unauthorized or
improper use of those facilities, and to prevent possible use of these facilities in violation of
Company rules and policies, Servis reserves the right, without notice, to limit or restrict any
individual's use, and to inspect, copy, remove, or otherwise alter any data, file, or system
resource which may undermine the authorized use of any computing facility or which is used
in violation of Company rules or policies.
The IT department would function as the core department, for implementation of the IT
Policy, which would co-ordinate with all the other departments of Servis in order to ensure
the objectives of this policy are met.
PERSONNEL
Employees shall use servis provided information resources for servis-related business in
accordance with their job functions and responsibilities, except as otherwise provided by
management directives or other company policies.
Employees are permitted limited personal use of information resources if the use does not
result in a loss of employee productivity, interfere with official duties or business, and
involves minimal additional expense to the company. Unauthorized or improper use of
information resources may result in loss of use or limitations on use of those resources.
When using servis information resources, employees are expected to:
c) Conduct them professionally in the workplace and to refrain from using information
resources for activities that are inappropriate.
d) Respect all pertinent licenses, copyrights, contracts, and other restricted or proprietary
information.
e) Safeguard their user IDs and passwords, and use them only as authorized. Any actions
taken under an assigned identification (e.g., user ID) are the responsibility of the user.
An Advanced ERP Interface is available which enables the user to maintain the system's Job
Queue and Product Databases from transactions created by an ERP system. An Activity File
and a Real Time Status File are maintained to provide the ERP system with real time
feedback on job starts, completions and status. Users report electronically updating inventory
records improves inventory accuracy.
Servis is an ERP (Enterprise Resource Planning) based Organization. All the departments are
linked with each other through networking called INTRANET. ERP system enhances
information flow through various business processes like production sales, inventory
planning and finance - helping companies to gain competitive advantage. Simply to
understand - ERP system organizes all of the company’s information into one centralizes
system, which is always available. A central database has been maintained at Servis where
the information related to Payables, Receivables, Fixed Assets, and Inventory etc. are saved.
A module has been established for each (payables, receivables, fixed assets, inventory and so
on). Each module is integrated with each other. This integration has increased the efficiency
of each department, as maintaining and keeping record of data and information have become
easier. Overall effectiveness of the organization has also increased to a great extent. All the
budgeting, general accounting and treasury related works are being performed on this ERP
software.
MIS department is responsible to make sure the safety of information. They are also
responsible to take corrective measures if any problem relating to ERP arises. Moreover, any
issue relating to networking, hardware, software etc are dealt by this department. Since ERP
has been recently developed and implemented at company, therefore it still has some areas to
be improved. If any department has any query relating to its concerned module, it may ask
and instruct MIS department to make desired alterations. Furthermore, new modules are also
being constructed for the complete implementation of ERP.
SSC understands its responsibility towards society as well and therefore, had looked after
around 500 families of IDP’s during SWAT operation for almost three months where, SSC
provided them with cloths, food and shelter.
SSC joined hands together to fight Cancer through setting up Shaukat Khanum donation
boxes at 400 SSC stores across the country where, every single penny returned to the
customer was donated to Shaukat Khanum box
COMPETITOR’S
COMPARATIVE
ANALYSIS
• Servis 5%
• Bata 6%
• Starlet 2%
• Others 87%
servis
bata
starlet
others
BATA
Bata Pakistan Ltd. was formed in Pakistan in1952. Bata's strength lies in its worldwide
presence. While local companies are self-governing, each one benefits from its link to the
international organization for back-office systems, product innovations and sourcing.
Although Bata operates in a wide variety of markets, climates and buying power Bata
companies share the same leadership points. Two important ones are product concept
development and constant improvement of business processes in order to offer customers
great value and the best possible service. Bata offers following features:
Bata collections target a wide range of customers and offer an excellent price-quality ratio.
Bata’s exclusive models along with national and international brands are carefully selected
and updated in response to market demand.
Personalized service
Qualified and enthusiastic sales associates who take customers’ satisfaction to heart. In many
countries customer service goes beyond the stores with home deliveries,orders made possible
via catalogues, the web or even call centres.
Easy-to-shop store layouts with clear product displays by category and by style.
Any Bata store in the world we repair, exchange or refund any products with defects. We
exchange or refund unworn merchandise if you change your mind.
PRODUCTS OF BATA
Bubble gummers
Power
Marie Claire
North Star
Sandak
Sundrops
WeinBrenner
Pata Pata
STARLET
The best located and most successful, the growth rate of Starlet shoes in Pakistan has been
recognized. The Unit is equipped with the most advanced and modern 24 station
polyurethane sole injection machine.The global fashion market is growing by leaps and
bounds and indeed, the fashion footwear industry is no exception.
There are new fashion icons and trends governing consumer choices now. Starlet makes sure
that its customers always get the cutting-edge fashion footwear that they desire, be it formal
shoes with the finest embellishments, or a profusion of delicate flowers. We ensure that
Starlet is a brand that caters to local needs. The magazine is launched for the loyalty card
members of Starlet Shoes. This magazine is delivered bi monthly at customer address via
courier.
PRODUCTS OF STARLET
It includes men, women and children shoes.
Following categories lie in men range:
• Tiger
• Jumper
• Driver
• Casual
• Sandal
• Care
• Traveller
• Executive
Women range includes:
• Lilly
• Comfei
Children range includes:
• School shoes
• Junior shoes
Comparison of outlets
• Servis has 400 retail outlets
• Bata also has 400 retail outlets
• Starlet has 12 retail outlets
COMPETITIVE ADVANTAGE
The lines along which differentiation is adopted are explained below with reference to Servis:
Product Differentiation: Style and Design of few lines may be altered, more features may
be introduced.
Service Differentiation: Servis continue to be efficient in its delivery of products to the
distributors. It also maintains healthy relationship with its suppliers and distributors.
Image Differentiation: It sponsor celebrities for its advertisements and continue to sponsor
important events.
Personnel Differentiation: In case of Servis, it continues to hire and train people to make an
overall good impression of the company. The sales and the marketing staff should be given
training regarding proper handling of contracts and distributors.
Direct inject technology Differentiation: Servis has a main strength which makes the Servis
superior than other footwear's that is Direct Inject technology. Direct inject
technology is a technology by which company makes the shoes as a single piece, there is no
any kind of stitches etc in these shoes, and this technology is in the Gujrat factory not anywhere else.
Brand strategy differentiation: Servis brand strategy differentiates it from their competitors
and underpins their approach to product development. They continue to build a focused,
segmented and differentiated brand portfolio and commit resources to full range of brands
deployed in the key industry areas that offer the most robust source of volume and profit
growth.
SWOT ANALYSIS
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
PEST ANALYSIS
Political Trends:
Q. 1
What is your gender?
Cumulative
Frequency Percent Valid Percent Percent
Interpretation:
Q. 2
Interpretation:
In my sample 59% of the people have monthly income Rs.50, 000 or more. 12% people had
monthly income ranging from Rs.40, 000 – 50,000.13% people has monthly income ranging
from Rs 30,000-40,000.10% people had monthly income from Rs 20,000-30,000.Only 6%
people had monthly income ranging from Rs. 10,000 – 20,000
Q. 3
Interpretation:
14% of people buy shoes once a week.30% buys once a month. 18% buy shoes once a year
and 38 % buy twice a year.
Q. 4
Interpretation:
26% of people prefer Bata which shows people have strong bonding and trust on it. 20%
people prefer Servis which is the competitor of Bata. 20% prefer hush puppies.
Q. 5
Interpretation:
Majority of people prefer Servis shoe on the basis of comfort. And then 22% prefer on the
basis of price.16% prefer on the basis of quality and brand image.
Q. 6
Interpretation:
Majority of people agree that low market share of Servis is due to high competitors in the
market where as only 12% strongly disagree with this point of view.
Q. 7
Interpretation:
42% of people are satisfied with prices of Servis shoes and 19 % of people are dissatisfied.
Q. 8
Interpretation:
Large portion of people which is 39% is dissatisfied with the quality of servis shoes and 21%
of people are satisfied.
Q. 9
Interpretation:
20% of people says that quality of servis shoes always matches their expectations .34% of
people believe that sometimes quality of shoes matches with their expectations and 46% of
people says it never matches their expectations.
Q. 10
Cumulative
Frequency Percent Valid Percent Percent
Interpretation:
23% of people strongly agree that servis shoes designs are attractive and 14% of them
strongly disagree with it.
Q. 11
Interpretation:
26% of people always find their preferred shoe size easily where as 33% of them never find
them easily.
Q. 12
Interpretation:
Low percentage of people that 17 % believes that Servis shoe designs are good as compared
to other companies where as 50% of people believes that it’s not like that.
Q. 13
Interpretation:
60% of people says that all designs of Servis shoes are available to them any time where as
40% of people believe contrary to it.
Q. 14
Interpretation:
Small portion of people that is 8% strongly agree that advertisements of Servis shoes are
efficient and 15 % of them disagree to it.
Q. 15
Interpretation:
48 % of people can recall the latest ad of Servis shoes and 52% cant so it means that ads of
servis shoes do not come up so frequently.
Q. 16
Cumulative
Frequency Percent Valid Percent Percent
Interpretation:
Majority of people feels comfortable while wearing Servis shoes where as small portion of
people that are 27% don not feel comfortable.
Q. 17
Interpretation:
34% of people believe that Servis shoes always fulfil the seasonal requirements where as 25
% of them thinks opposite to it.
Q. 18
Interpretation:
19% of people strongly agree that attitude of Servis employees at outlet is cooperative and
11% disagree to it.
Q. 19
Interpretation:
59% of people believe that Servis shoes provide reasonable discounts during sales where as
41% of people do not think the same.
Q. 20
Do you agree that Servis shoes follow the latest fashion trends?
Cumulative
Frequency Percent Valid Percent Percent
Interpretation:
32% of people agree that Servis shoes follow the latest fashion trends where as 22% of them
disagree with it.
Hypothesis: 1
Null Hypothesis: low market share is not due to poor quality of Servis shoes.
Alternate Hypothesis: low market share is due to poor quality of Servis shoes
Ho: Oi = Ei
H1: Oi ≠ Ei
Significance level: 5%
Total 100
Test Statistics
to what extent
you are satisfied
with quality of
servis shoes?
Chi-Square 36.559a
df 4
Since P-value (.000) is less than significance level (.05) so we found evidence against the null
hypothesis and will reject the null hypothesis which says that low market share is not due to
poor quality of Servis shoes. We will accept the alternative hypothesis that low market share
is due to poor quality of Servis shoes.
Hypothesis: 2
Ho: Oi = Ei
H1: Oi ≠ Ei
Significance level: 5%
Total 100
Test Statistics
Chi-Square 103.803a
df 4
Since P-value (.000) is less than significance level (.05) so we found evidence against the null
hypothesis and will reject the null hypothesis which says that low market share is not due to
inefficient advertisement of servis shoes. We will accept the alternative hypothesis that low
market share is due to inefficient advertisement of servis shoes.
Hypothesis: 3
Ho: Oi = Ei
H1: Oi ≠ Ei
Significance level: 5%
Total 100
Chi-Square 22.817a
df 4
Interpretation:
Since P-value (.000) is less than significance level (.05) so we found evidence against the null
hypothesis and will reject the null hypothesis which says that low market share is not due to
high competition. We will accept the alternative hypothesis that low market share is due to
high competition in the market.
CONCLUSION
After hypothesis testing it is found that factors involved in the declining market share of
Servis shoes are:
All three hypotheses prove that these factors are the cause of declining market share of Servis
shoes. One of the major factor of low market share of Servis is poor quality of Servis shoes. It
is not improving its quality where as the quality of shoes of other companies like Bata, Hush
puppies and starlet is much better than Servis so people these brands. The most important
reason for decline in sales is due to lack of marketing by Servis. There has never been a print
or media advertisement, brochures, pamphlets, billboards etc. the only marketing is the
delivery of customized calendars, diaries and souvenirs which are given only to shareholders
at the annual general meeting. This has created communication gap between existing
customers and Servis itself.. Also it has been extremely difficult to attract new customers
(except for word of mouth) when there are so many alternatives. There are a lot of
opportunities which can be utilized and effective communication for Servis can increase the
sales and revenue tremendously.
Thirdly, in recent years, Pakistan has been bombarded with so many shoe companies. Their
shoes are more trendy and fashionable. This has affected the market share of Servis. Also
Servis lack variety in features. Except for the basics, there are no fancy shoes to attract the
teenagers or even adults. People nowadays are more concerned with comfort, appearance and
other superficial attributes in even the smallest of things.
So in order to retain its market share Servis must focus on these 3 main causes which are
causing decline in market share of Servis. If these are catered well and effective planning and
execution is done Servis can generate more market share through shoes.
SUGGESTIONS AND
RECOMMENDATIONS
ANNEXURE
1. Male
2. Female
1. Once aweek
2. Once a month
3. Once a year
4. Twice a year
1. Servis
2. Bata
3. Hushpuppies
4. Starlet
5. Others
1. Quality
2. Design
3. Brand
4. Price
5. Comfort
Q6: Do you agree that low market share of Servis is due to strong competitors in the market?
1. Strongly agree
2. Agree
3. Neutral
4. Disagree
5. Strongly disagree
Q7: To what extent you are satisfied with prices of servis shoes?
1. Strongly satisfied
2. Satisfied
3. Neutral
4. Dissatisfied
5. Strongly dissatisfied
Q8: To what extent you are satisfied with quality of Servis shoes?
1. Strongly satisfied
2. Satisfied
3. Neutral
4. Dissatisfied
5. Strongly dissatified
Q9: Does the quality of Servis shoes matches with your expectations?
1. Always
2. Sometimes
3. Never
1. Strongly agree
2. Agree
3. Neutral
4. Disagree
5. Strongly disagree
1. Always
Research Project: Market Share Analysis of Servis Shoes
P a g e | 82
2. Sometimes
3. Never
Q12: Do you think Servis shoe designs are good as compared to other companies?
1. Very good
2. Good
3. Not good
Q13: Are all designs of Servis shoes available to you at any time?
1. Yes
2. No
1. Strongly agree
2. Agree
3. Neutral
4. Disagree
5. Strongly disagree
1. Yes
2. No
1. Yes
2. No
1. Always
2. Sometimes
3. Never
1. Strongly agree
2. Agree
3. Neutral
4. Disagree
5. Strongly disagree
1. Yes
2. No
Q20: Do you agree that Servis shoes follow the latest fashion trends?
1. Strongly agree
2. Agree
3. Neutral
4. Disagree
5. Strongly disagree
REFRENCES
www.servis.com
www.bata.pk
www.starlet.com