servis shoes

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Research Project: Market Share Analysis Of Servis Shoes

DECLARATION

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Research Project: Market Share Analysis Of Servis Shoes

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.

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Research Project: Market Share Analysis Of Servis Shoes

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.

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Research Project: Market Share Analysis Of Servis Shoes

Kinnaird Postgraduate Programs

93, Jail Road Lahore 54000 Pakistan Telephone 042-37569536 Dec 2nd, 2011 Servis Shoes

Subject: Research Work for Final Dissertation 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.

Your time and help in this connection is appreciated.

Thank you.

Ms Saira Farooqi

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Research Project: Market Share Analysis Of Servis Shoes

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 ... Error! Bookmark not defined. Misson and vision ... Error! Bookmark not defined. Values ... Error! Bookmark not defined. Servis‟s Products ... Error! Bookmark not defined. Major segmentation variables ... Error! Bookmark not defined. ORGANIZATIONAL STRUCTURE... 18

SWOT ANALYSIS PROVIDED BY THE ORGANIZATION ... 21

ORGANIZATION ANALYSIS PROVIDED BY THE ORAGANIZATION Error! Bookmark not defined. Company objectives ... Error! Bookmark not defined. Strategies employed ... 25

Policy Formulation Process ... 26

ORGANIZING ... 29

Retail operations ... Error! Bookmark not defined. Whole sale department ... Error! Bookmark not defined. Corporate sales department ... Error! Bookmark not defined. Product development centre ... Error! Bookmark not defined. Chief merchant organizing department ... Error! Bookmark not defined. Sourcing department ... Error! Bookmark not defined. Replenishment department ... Error! Bookmark not defined. Finance and accounts department ... 31

Marketing department ... 31

STAFFING PROCEDURE ... 33

Recruitment: ... 34

Orientation ... 35

LEADING FUNCTION ... 36

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Research Project: Market Share Analysis Of Servis Shoes

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 ... Error! Bookmark not defined. Competitive Advantage: ... 48

SWOT ANALYSIS ... 49

„PEST‟ Analysis... 51

FINDINGS AND DATA ANALYSIS ... 52

Conclusion: ... 76

SUGGESTIONS AND RECOMMENDATIONS ... 78

ANNEXURE... 79

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Research Project: Market Share Analysis Of Servis Shoes

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.

 Changing pricing strategies

 Change in quality

 Selective and improved marketing campaign

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.

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Research Project: Market Share Analysis Of Servis Shoes

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Research Project: Market Share Analysis Of Servis Shoes

CHAPTER 1:INTRODUCTION

Rationale of the study:

Rationale of this study is to conduct a research to analyze the market share of Servis shoes. It is to evaluate the company‟s positioning in market and to check what factors are affecting its market share. A survey is conducted to check the customer‟s response to its price, quality designing and promotion and then results have been analyzed and recommendations given. The importance of this study is to give Servis shoes their current standing and how they can improve its sales by changing its certain strategies towards price, quality and promotion.

Research Objectives:

Following are the general objectives of this research:

 To do the management analysis of Servis shoes

 To do the swot analysis of the company.

 To identify the problem.

 To analyze the problem and explore its causes.

 On the basis of analysis provide recommendations to firm about the solution of problem.

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.

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Research Project: Market Share Analysis Of Servis Shoes

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. Alternate Hypothesis: low market share is due to poor quality of shoes.

Hypothesis: 2

Null Hypothesis: low market share is not due to poor promotional efforts. Alternate Hypothesis: low market share is due to poor promotional efforts.

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Research Project: Market Share Analysis Of Servis Shoes

Null Hypothesis: low market share is not due to high competition. Alternate Hypothesis: low market share is due to high competition 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:

Target population is all customers who purchase shoes.

Sample Size: Sample size chosen is 100 Sampling technique: Random sampling Analysis techniques:

I used two techniques for analysis:

1. Descriptive statistics (through graphs, charts etc)

2. Inferential statistics (through chi-square testing)

Chi-square:

A chi-square test (also chi squared test or χ2 test) is any statistical hypothesis test in which

the sampling distribution of the test statistic is a chi-square distribution when the null hypothesis is true, or any in which this is asymptotically true, meaning that the sampling distribution (if the null hypothesis is true) can be made to approximate a chi-square distribution as closely as desired by making the sample size large enough.

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Research Project: Market Share Analysis Of Servis Shoes

INTRODUCTION OF THE

ORGANIZATION

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Research Project: Market Share Analysis Of Servis Shoes

CHAPTER 2: INTRODUCTION OF 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.

INTRODUCTION OF SERVIS SHOES

Servis Shoes is Pakistan‟s leading retailer that has set new record standards and created new benchmarks in the retail industry. With its world class retail systems, dynamic approach to business and highly energetic team, Servis shoes is today heading toward becoming a regional retail player. The main business of Servis shoes is to purchase the shoes from servis industries limited and also from leading international and national footwear brands and take the ownership after adding up its margin. The ownership includes cost of marketing of the shoes, logistics arrangements to circulate the shoes, management and fixed assets costs. Servis has its own marketing network and distribution network in the country. Sales are carried out through wholesale and retail outlets, which are located in famous trade centres in various cities and towns all over the country.

The company‟s corporate head office is located at Lahore while other regional offices are set in different major cities of the country.

MISSION STATEMENT

Mission statement of a company states that how a company sees itself.

Mission of Service, is to satisfy its customers by providing quality and reasonable priced footwear and other products throughout the country, and to satisfy its employees through good management.

VISION STATEMENT

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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.

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Research Project: Market Share Analysis Of Servis Shoes

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 14th 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

MAJOR SEGMENTATION VARIABLES Geographic Factors

The company has one CDC (central distribution centre) which distributes the products into following districts.  Peshawar  Islamabad  Rawalpindi  Jhelum  Gujrat  Gujranwalwa

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Research Project: Market Share Analysis Of Servis Shoes  Sialkot  Sargodha  Lahore  Faislabad  Sahiwal  Multan  Bahawalpur  Sukkur  karachi Psychographic Factors

Lifestyle: Culture-oriented; Sophistication-oriented

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+

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Research Project: Market Share Analysis Of Servis Shoes

ORGANIZATIONAL

STRUCTURE

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Research Project: Market Share Analysis Of Servis Shoes

CHAPTER 3: 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

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Research Project: Market Share Analysis Of Servis Shoes

SSC Or ga n ogr a m

Chief Executive

Chief Operating Officer

CH Retail Operations Chief Merchant Operations Manager South Operations Manager North Country Head Wholesale Head of Key Accounts Head of Distribution Head of Corporate Sales RSMs Chief Financial Officer Manager Financial Planning. & Operations Financial Controller Manager Internal Audit Manager ERP Systems General Manager HR Sr. Manager Human Resource Senior Manager Training & Development Managers Compensation & Benefits General Mangr Marketing Senior Manager Comm.cation Brand Manager Manager Communication & Mkt Research General Manager Product Develop Channel Manager s Chief Merchant Planning Senior Manager Planning Sr. Manager Supply Chain

SEE NEXT PAGE

Head of Replenishment

Operations Manager Central

Head Sourcing & Vendor Develop

Category Managers

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Research Project: Market Share Analysis Of Servis Shoes

SWOT ANALYSIS

PROVIDED BY THE

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CHAPTER4: SWOT ANALSIS PROVIDED BY THE COMPANY 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.

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Research Project: Market Share Analysis Of Servis Shoes

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.

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ORGANIZATION

ANALYSIS PROVIDED BY

THE ORGANIZATION

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Research Project: Market Share Analysis Of Servis Shoes

CHAPTER 5: ORGANIZATION’S 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.

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Research Project: Market Share Analysis Of Servis Shoes

Policy Formulation Process

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

 To make way forwards

 To keep workplace environment congenial & friendly

 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.

Corporate meetings are held on a monthly basis.

The company‟s policy is to be proactive and trouble-shooting problems.

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

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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.

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CHAPTER 6: ORGANIZING

OVERVIEW OF COMPANY FUNCTIONS / DEPARTMENT Retail Operations

 Manages overall retail operations  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

Wholesale – Business Centers

The department is responsible for sales of products in large quantities to different dealers and retailers through its Wholesale Business Centers.

Wholesale – Key Accounts & Modern trade

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.

CORPORATE SALES DEPARTMENT

Responsible for selling footwear products to institutions like Army, Police, Schools, etc.

PRODUCT DEVELOPMENT CENTRE

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.

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CHIEF MERCHANT ORGANIZING DEPARTMENT

Responsible for merchandising of all the channels such as A-Pair, FOL, Mega Stores, Best Value Stores, Shoe Planet, etc.

Chief Merchant Organization – Planning

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.

Determining purchase commitment based on bottom up need.

Optimizing allocation effectiveness with managing inventory flows.

Chief Merchant Organization – Supply Chain

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.

This department is also responsible for vendor development as well.

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.

FINANCE AND ACCOUNTS 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 it‟s 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

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Research Project: Market Share Analysis Of Servis Shoes

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.

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Research Project: Market Share Analysis Of Servis Shoes

CHAPTER 7: STAFFING PROCEDURE

RECRUITMENT POLICY METHODOLOGY

Generally the recruitment at SSC is done following the below methodology:

 Internal / External Advertisements

 Positions published on websites

 Word of mouth

 Head Hunters

 Personal Networking

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.

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Research Project: Market Share Analysis Of Servis Shoes

ORIENTATION

 A comprehensive orientation plan is then prepared for new joiners.

 The individual joining in Servis offices are introduced with the office staff and provided familiarity with the office premises.

 Wherever required, the new joiners are sent to factory visits or shop visits.

 People joining in the HO are introduced to all the staff using the occasion of Monthly COO Address where every new joiner introduces him / herself.

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Research Project: Market Share Analysis Of Servis Shoes

LEADING FUNCTION

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Research Project: Market Share Analysis Of Servis Shoes

EMPLOYEE COMPENSATION & BENEFITS METHODOLOGY

Generally, compensation and benefits at SSC is designed based on the following:

 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.

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Research Project: Market Share Analysis Of Servis Shoes

INCENTIVES AND MOTIVATIONS

 Inter-department cricket tournaments are arranged occasionally for SSC employees.

 A yearly get together is offered to employees in Middle Management up to Senior Management Cadre by COO once a year.

 Iftari Dinner is given to all SSC employees in the month of Ramzan to promote a family environment.

 Employees in the Middle Management up to Senior Management Cadre are also offered Apartments in Murree for their families for 3-4 Days both in summer and off seasons.

 Annual conferences for Retail & Wholesale Field Staff are organized every year in areas like PC Bhurban or Muzafarrabad etc.

 Annual Conferences of Middle Management up to Senior Management Cadre are arranged abroad every year.

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.

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Research Project: Market Share Analysis Of Servis Shoes

 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.

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Research Project: Market Share Analysis Of Servis Shoes

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

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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:

a) Act responsibly so as to ensure the ethical use of servis information resources.

b) Use security measures to protect the confidentiality, integrity, and availability of information, data, and systems.

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Research Project: Market Share Analysis Of Servis Shoes

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.

f) Respect the company property.

g) Make only appropriate use of data to which they have access.

h) Exercise good judgment regarding the reasonableness of personal use.

i) Use information resources efficiently.

MIS (MANAGEMENT INFORMATION SYSTEM) DEPARTMENT

Manufacturers need information about inventory availability, machine uptime and down time, product cycle times, yield, waste, WIP etc. They need real-time information management tools for continuous improvement and decision support. Only a live link to the production floor can provide the link to the critical information that can control the supply chain's actual ability to perform.

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 companies 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

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Research Project: Market Share Analysis Of Servis Shoes

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.

CORPORATE SOCIAL RESPONSIBILITY

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

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Research Project: Market Share Analysis Of Servis Shoes

COMPETITOR’S

COMPARATIVE

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Research Project: Market Share Analysis Of Servis Shoes

Chapter 10: COMPETITORS’S COMAPARTIVE ANALYSIS

Market share of companies

• Servis 5% • Bata 6% • Starlet 2% • Others 87%

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:

Wide product assortments

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.

Clear product merchandisisng

servis bata starlet others

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Research Project: Market Share Analysis Of Servis Shoes

Easy-to-shop store layouts with clear product displays by category and by style.

Guaranted customer satisfaction

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

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Research Project: Market Share Analysis Of Servis Shoes • 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.

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Research Project: Market Share Analysis Of Servis Shoes

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Research Project: Market Share Analysis Of Servis Shoes

CHAPTER 11: SWOT ANALYSIS

STRENGTHS

 It is largest shoe manufacturing company in Pakistan.

 SSC has its own outlets throughout the country.

 Good image of the company in the mind of customers.

WEAKNESSES

 High price products as perceived by the customers.

 No discount policies.

OPPORTUNITIES

 There is room for SSC to open more outlets in country.

 Company can reduce the price of products in order to capture the lower class that increases its sale.

 Company can open its outlets in other countries.

THREATS

 SSC has threat from domestic rivals like BATA.

 Inflation is also fearful threat for SSC.

 Due to WTO more foreign companies can enter in country and can be competitor of SSC.

PEST ANALYSIS Political Trends:

 Political instability is effecting badly to the footwear industry.

 Energy problem (high cost and power failure) is the main issue in these days, because it leads to increase in production cost.

 The import of under-priced shoes was badly hitting the domestic footwear industry, From the previous some years Government of the Pakistan are encouraging import and

export policies. And also encourage the foreign investors to invest in Pakistan.

 There are no many difficult formalities to import or export, any dealer can import in Pakistan and sell by the fulfilling the certain formalities required by the law.

 Government should take measures to check the inflow of foreign footwear into Pakistani market through the tactics of under-invoicing and miss-declaration.

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Research Project: Market Share Analysis Of Servis Shoes

 The overall political trend is negative for industry.

Economic Trends:

 Economic crisis hit badly on footwear industry especially raw material to manufacture

 footwear.

 One of the most important problems in the growth of footwear industry is higher energy

 prices.

 Increasing energy and inputs prices leads to an increase in the cost of Production that

 influences the expected production of the industries and the exports

 Impact of international Competition: flooding of the footwear from China and Korea.

Social Trends:

 In Pakistan the life style of people is changing with a fast pace. Their life has become more

 money and time oriented. There is a major shift in the values of the people of Pakistan. People now prefer western life style rather than the traditional one. Everyone wants that he or she wear new shoes at every occasion. Especially it is a race between ladies to have more and matching shoes with her dresses which are more trendy and fashionable. So it overall increased demand for foot wear products

especially in young generation.

 In Pakistan people mostly purchase foot wear on the time of occasion like marriages, Eid and on the seasonal base like in summer season shoes are different and the winter season shoes are different. And ladies wear new trendy and fashionable shoes at every occasion.

Technological Trends:

 New technology trends also effecting footwear industry in Pakistan. Multinational competitors are introducing innovative techniques to manufacture footwear. Like in sports footwear new technology is being used regarding technical aspects on that particular sport. For processing of raw material like leather new techniques are being implemented by multinationals.

 The process of leather includes a number of different steps during which large quantities of water and chemicals are applied to the skins. About 130 different chemicals are used in leather processing, depending on the trends is now in leverage technology to gain competitive advantage.

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Research Project: Market Share Analysis Of Servis Shoes

FINDINGS AND DATA

ANALYSIS

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Research Project: Market Share Analysis Of Servis Shoes

CHAPTER 12: RESEARCH FINDINGS AND DATA ANALYSIS Q. 1

What is your gender?

Frequency Percent Valid Percent

Cumulative Percent Valid female 91 91.0 91.0 91.0 male 9 9.0 9.0 100.0 Total 100 100.0 100.0 Interpretation:

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Research Project: Market Share Analysis Of Servis Shoes

Q. 2

What is your monthly household income?

Frequency Percent Valid Percent

Cumulative Percent Valid 10,000-20,000 6 6.0 6.0 6.0 20,000-30,000 10 10.0 10.0 16.0 30,000-40,000 13 13.0 13.0 29.0 40,000-50,000 12 12.0 12.0 41.0 50,000-more 59 59.0 59.0 100.0 Total 100 100.0 100.0 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

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Research Project: Market Share Analysis Of Servis Shoes

Q. 3

How frequently you buy shoes?

Frequency Percent Valid Percent

Cumulative Percent

Valid once a week 14 14.0 14.0 14.0

once a month 30 30.0 30.0 44.0

once a year 18 18.0 18.0 62.0

twice a year 38 38.0 38.0 100.0

Total 100 100.0 100.0

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.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 4

Which company shoes do you like to wear the most?

Frequency Percent Valid Percent

Cumulative Percent Valid servis 16 16.0 16.0 16.0 bata 26 26.0 26.0 42.0 hush puppies 20 20.0 20.0 62.0 starlet 16 16.0 16.0 78.0 others 22 22.0 22.0 100.0 Total 100 100.0 100.0 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.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 5

On which basis do you prefer servis shoes?

Frequency Percent Valid Percent

Cumulative Percent Valid quality 16 16.0 16.0 16.0 design 18 18.0 18.0 34.0 brand image 16 16.0 16.0 50.0 price 22 22.0 22.0 72.0 comfort 28 28.0 28.0 100.0 Total 100 100.0 100.0 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.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 6

Do you agree that low market share of Servis is due to strong competitors in the market?

Frequency Percent Valid Percent

Cumulative Percent

Valid strongly agree 21 21.0 21.0 21.0

agree 24 24.0 24.0 45.0 neutral 24 24.0 24.0 69.0 disagree 19 19.0 19.0 88.0 strongly disagree 12 12.0 12.0 100.0 Total 100 100.0 100.0 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.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 7

To what extent you are satisfied with prices of servis shoes?

Frequency Percent Valid Percent

Cumulative Percent

Valid strongly satisfied 8 8.0 8.0 8.0

satisfied 42 42.0 42.0 50.0 neutral 21 21.0 21.0 71.0 dissatisfied 19 19.0 19.0 90.0 strongly dissatisfied 10 10.0 10.0 100.0 Total 100 100.0 100.0 Interpretation:

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Research Project: Market Share Analysis Of Servis Shoes

Q. 8

To what extent you are satisfied with quality of Servis shoes?

Frequency Percent Valid Percent

Cumulative Percent Valid strongly satisfied 11 11.0 11.0 11.0

satisfied 21 21.0 21.0 32.0 neutral 19 19.0 19.0 51.0 dissatisfied 39 39.0 39.0 90.0 stongly dissatisfied 10 10.0 10.0 100.0 Total 100 100.0 100.0 Interpretation:

Large portion of people which is 39% is dissatisfied with the quality of servis shoes and 21% of people are satisfied.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 9

Does the quality of Servis shoes matches with your expectations?

Frequency Percent Valid Percent

Cumulative Percent Valid always 20 20.0 20.0 20.0 sometimes 34 34.0 34.0 54.0 never 46 46.0 46.0 100.0 Total 100 100.0 100.0 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.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 10

Do you agree that Servis shoes designs are attractive?

Frequency Percent Valid Percent

Cumulative Percent

Valid strongly agree 23 23.0 23.0 23.0

agree 23 23.0 23.0 46.0 neutral 9 9.0 9.0 55.0 disagree 31 31.0 31.0 86.0 strongly disagree 14 14.0 14.0 100.0 Total 100 100.0 100.0 Interpretation:

23% of people strongly agree that servis shoes designs are attractive and 14% of them strongly disagree with it.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 11

Do you find your preferred shoe size easily?

Frequency Percent Valid Percent

Cumulative Percent Valid always 26 26.0 26.0 26.0 sometimes 41 41.0 41.0 67.0 never 33 33.0 33.0 100.0 Total 100 100.0 100.0 Interpretation:

26% of people always find their preferred shoe size easily where as 33% of them never find them easily.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 12

Do you think Servis shoe designs are good as compared to other companies?

Frequency Percent Valid Percent

Cumulative Percent

Valid very good 17 17.0 17.0 17.0

good 33 33.0 33.0 50.0

not good 50 50.0 50.0 100.0

Total 100 100.0 100.0

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.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 13

Are all designs of Servis shoes available to you at any time?

Frequency Percent Valid Percent

Cumulative Percent Valid yes 60 60.0 60.0 60.0 no 40 40.0 40.0 100.0 Total 100 100.0 100.0 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.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 14

Do you agree that advertisement of Servis shoes is efficient?

Frequency Percent Valid Percent

Cumulative Percent

Valid strongly agree 8 8.0 8.0 8.0

agree 22 22.0 22.0 30.0 neutral 29 29.0 29.0 59.0 disagree 26 26.0 26.0 85.0 strongly disagree 15 15.0 15.0 100.0 Total 100 100.0 100.0 Interpretation:

Small portion of people that is 8% strongly agree that advertisements of Servis shoes are efficient and 15 % of them disagree to it.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 15

Can you recall the latest ad of Servis shoes?

Frequency Percent Valid Percent

Cumulative Percent Valid yes 48 48.0 48.0 48.0 no 52 52.0 52.0 100.0 Total 100 100.0 100.0 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.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 16

Do you feel comfortable while wearing Servis shoes?

Frequency Percent Valid Percent

Cumulative Percent Valid yes 73 73.0 73.0 73.0 no 27 27.0 27.0 100.0 Total 100 100.0 100.0 Interpretation:

Majority of people feels comfortable while wearing Servis shoes where as small portion of people that are 27% don not feel comfortable.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 17

Do Servis shoes fulfil the seasonal requirements?

Frequency Percent Valid Percent

Cumulative Percent Valid always 34 34.0 34.0 34.0 sometimes 41 41.0 41.0 75.0 never 25 25.0 25.0 100.0 Total 100 100.0 100.0 Interpretation:

34% of people believe that Servis shoes always fulfil the seasonal requirements where as 25 % of them thinks opposite to it.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 18

Do you agree that attitude of employees at Servis outlet is cooperative?

Frequency Percent Valid Percent

Cumulative Percent

Valid strongly agree 19 19.0 19.0 19.0

agree 36 36.0 36.0 55.0 neutral 15 15.0 15.0 70.0 disagree 19 19.0 19.0 89.0 strongly disagree 11 11.0 11.0 100.0 Total 100 100.0 100.0 Interpretation:

19% of people strongly agree that attitude of Servis employees at outlet is cooperative and 11% disagree to it.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 19

Do Servis shoes outlets provide reasonable discount during sales?

Frequency Percent Valid Percent

Cumulative Percent Valid yes 59 59.0 59.0 59.0 no 41 41.0 41.0 100.0 Total 100 100.0 100.0 Interpretation:

59% of people believe that Servis shoes provide reasonable discounts during sales where as 41% of people do not think the same.

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Research Project: Market Share Analysis Of Servis Shoes

Q. 20

Do you agree that Servis shoes follow the latest fashion trends?

Frequency Percent Valid Percent

Cumulative Percent

Valid strongly agree 7 7.0 7.0 7.0

agree 32 32.0 32.0 39.0 neutral 26 26.0 26.0 65.0 disagree 22 22.0 22.0 87.0 strongly disagree 13 13.0 13.0 100.0 Total 100 100.0 100.0 Interpretation:

32% of people agree that Servis shoes follow the latest fashion trends where as 22% of them disagree with it.

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Research Project: Market Share Analysis Of Servis Shoes

HYPOTHESIS TESTING THROUGH CHI-SQUARE TEST

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%

To what extent you are satisfied with quality of Servis shoes?

Observed N Expected N Residual strongly satisfied 11 15.0 -4.0 satisfied 21 17.0 4.0 neutral 19 7.0 12.0 dissatisfied 39 32.0 7.0 strongly dissatisfied 10 29.0 -19.0 Total 100 Test Statistics to what extent you are satisfied

with quality of servis shoes? Chi-Square 36.559a

df 4

Asymp. Sig. .000 a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 7.0.

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Research Project: Market Share Analysis Of Servis Shoes

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

Null Hypothesis: low market share is not due to inefficient advertisement.

Alternate Hypothesis: low market share is due to inefficient advertisement.

Ho: Oi = Ei H1: Oi ≠ Ei

Significance level: 5%

Do you agree that advertisement of Servis shoes is efficient?

Observed N Expected N Residual

strongly agree 8 12.0 -4.0 agree 22 15.0 7.0 neutral 29 6.0 23.0 disagree 26 36.0 -10.0 strongly disagree 15 31.0 -16.0 Total 100 Test Statistics

do you agree that advertisement of servis shoes is efficient? Chi-Square 103.803a df 4 Asymp. Sig. .000

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Research Project: Market Share Analysis Of Servis Shoes

Test Statistics

do you agree that advertisement of servis shoes is efficient? Chi-Square 103.803a df 4 Asymp. Sig. .000 a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 6.0.

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 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

Null Hypothesis: low market share is not due to high competition.

Alternate Hypothesis: low market share is due to high competition.

Ho: Oi = Ei H1: Oi ≠ Ei

Significance level: 5%

Do you agree that low market share of servis is due to strong competitors in the market?

Observed N Expected N Residual

strongly agree 21 26.0 -5.0

agree 24 30.0 -6.0

neutral 24 10.0 14.0

disagree 19 18.0 1.0

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Research Project: Market Share Analysis Of Servis Shoes

Do you agree that low market share of servis is due to strong competitors in the market?

Observed N Expected N Residual

strongly agree 21 26.0 -5.0 agree 24 30.0 -6.0 neutral 24 10.0 14.0 disagree 19 18.0 1.0 strongly disagree 12 16.0 -4.0 Total 100

do you agree that low market share of servis is due to strong competitors in the market? Chi-Square 22.817a df 4 Asymp. Sig. .000 a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 10.0.

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.

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