Servis Shoes
Servis Shoes
Servis Shoes
DECLARATION
I declare that is my original work and has not been published before.
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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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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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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.
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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. Serviss 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 Employee compensation and benifits ........................................................................................ 37
Page |6 Incentives and motivations ........................................................................................................ 38 Employee Training and Career development program .............................................................. 38 Performance management .......................................................................................................... 40 CONTROLLING ........................................................................................................................... 41 Contolling companys 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 References:................................................................................................................................. 84
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EXECUTIVE SUMMARY
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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 Pakistans 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 Serviss 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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INTRODUCTION
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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 companys positioning in market and to check what factors are affecting its market share. A survey is conducted to check the customers 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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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. Hypothesis: 3
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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 competitors 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 2 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. So I will be applying Chi-square test to my hypothesis. Research Project: Market Share Analysis Of Servis Shoes
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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 Pakistans 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 companys 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 Be the fastest growing company in every market we enter.
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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 Pakistans most favourite slipper. Designed to keep you light and carefree wherever you go, Calza is perfect all day casual.
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The leading brand of sports footwear in Pakistan, Cheetah has developed a cult following among sportsmen and has come to symbolize the sportsmans 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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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+ Gender: Male and Female
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ORGANIZATIONAL STRUCTURE
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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.
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SSC Or ga nogr a m
Chief Executive
General Manager HR
Sr. Manager Human Resource
Chief Merchant
Channel Manager s
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STRENGHTS Pakistans 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 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. in representing its country as they
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 dont 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.
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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.
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CHAPTER 5: ORGANIZATIONS ANALYSIS PROVIDED BY THE ORGANIZATION COMPANYS 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.
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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 companys 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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ORGANIZING
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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 competitors 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 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 Research Project: Market Share Analysis Of Servis Shoes
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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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STAFFING PROCEDURE
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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.
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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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LEADING FUNCTION
CHAPTER8:LEADIND FUNCTION
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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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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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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 SSCs 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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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 Didnt meet expect, nearly meet expect, met expect, exceeded expect, etc. Supervisors 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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CONTROLLING
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CHAPTER 9: CONTROLLING
CONTROLLING COMPANYS 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 Companys 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 Serviss 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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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 Research Project: Market Share Analysis Of Servis Shoes
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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.
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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. Batas 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 Research Project: Market Share Analysis Of Servis Shoes
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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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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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SWOT ANALYSIS
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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.
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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CHAPTER 12: RESEARCH FINDINGS AND DATA ANALYSIS Q. 1 What is your gender?
Cumulative Frequency Valid female male Total 91 9 100 Percent 91.0 9.0 100.0 Valid Percent 91.0 9.0 100.0 Percent 91.0 100.0
Interpretation: In my sample 91% of people are female and only 9 % are male.
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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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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.
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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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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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Q. 6
Do you agree that low market share of Servis is due to strong competitors in the market?
Cumulative Frequency Valid strongly agree agree neutral disagree strongly disagree Total 21 24 24 19 12 100 Percent 21.0 24.0 24.0 19.0 12.0 100.0 Valid Percent 21.0 24.0 24.0 19.0 12.0 100.0 Percent 21.0 45.0 69.0 88.0 100.0
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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Q. 7
Interpretation: 42% of people are satisfied with prices of Servis shoes and 19 % of people are dissatisfied.
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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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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.
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Q. 10
Interpretation: 23% of people strongly agree that servis shoes designs are attractive and 14% of them strongly disagree with it.
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Interpretation: 26% of people always find their preferred shoe size easily where as 33% of them never find them easily.
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Q. 12 Do you think Servis shoe designs are good as compared to other companies?
Cumulative Frequency Valid very good good not good Total 17 33 50 100 Percent 17.0 33.0 50.0 100.0 Valid Percent 17.0 33.0 50.0 100.0 Percent 17.0 50.0 100.0
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 its not like that.
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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.
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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.
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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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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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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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Q. 18
Interpretation: 19% of people strongly agree that attitude of Servis employees at outlet is cooperative and 11% disagree to it.
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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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Q. 20 Do you agree that Servis shoes follow the latest fashion trends?
Cumulative Frequency Valid strongly agree agree neutral disagree strongly disagree Total 7 32 26 22 13 100 Percent 7.0 32.0 26.0 22.0 13.0 100.0 Valid Percent 7.0 32.0 26.0 22.0 13.0 100.0 Percent 7.0 39.0 65.0 87.0 100.0
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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Test Statistics to what extent you are satisfied with quality of servis shoes? Chi-Square df Asymp. Sig. 36.559
a
4 .000
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 7.0.
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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%
Test Statistics do you agree that advertisement of servis shoes is efficient? Chi-Square df Asymp. Sig. 103.803
a
4 .000
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Test Statistics do you agree that advertisement of servis shoes is efficient? Chi-Square df Asymp. Sig. 103.803
a
4 .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 strongly agree agree neutral disagree strongly disagree 21 24 24 19 12 Expected N 26.0 30.0 10.0 18.0 16.0 Residual -5.0 -6.0 14.0 1.0 -4.0
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Do you agree that low market share of servis is due to strong competitors in the market?
Observed N strongly agree agree neutral disagree strongly disagree Total 21 24 24 19 12 100 Expected N 26.0 30.0 10.0 18.0 16.0 Residual -5.0 -6.0 14.0 1.0 -4.0
do you agree that low market share of servis is due to strong competitors in the market? Chi-Square df Asymp. Sig. a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 10.0. 22.817
a
4 .000
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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CONCLUSION
After hypothesis testing it is found that factors involved in the declining market share of Servis shoes are: Low quality of shoes Inefficient advertisement High competitors in the market
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.
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Following are some of the suggestions and recommendations to increase the work life and sale volume of Servis shoes. Servis should focus on the quality of the products along with keeping consumer preferences their priority. Servis should develop proper marketing division which can highlight differentiation among Servis and its competitors. Focus more on existing brands and innovating them Proper planning for advertising is needed. Separate outlets for ladies Variety Establishment of sales promotion institutions Regular market surveys Full utilization of the available resources. Focus on customer awareness. The process of decision making can be improved. Can get access to the markets globally. Ensure full check and balance. Hiring should be according to production and need. A proper tagline should be developed which people can remember. Also reinforcement should be done regularly to retain customers. Conducting a customer survey will be most helpful to assess the needs of current customers. Expansion into kids segment will be profitable for the organization as this will boost sale and increase goodwill.
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ANNEXURE
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Q1: What is your gender? 1. Male 2. Female Q2: What is your monthly household income?(in rupees) 1. 10,000-20,000 2. 20,000-30,000 3. 30,000-40,000 4. 40,000-50,000 5. 50,000-more
Q3: How frequently you buy shoes? 1. Once aweek 2. Once a month 3. Once a year 4. Twice a year Q4: Which company shoes do you like to wear the most? 1. Servis 2. Bata 3. Hushpuppies 4. Starlet 5. Others Q5: On which basis do you prefer servis shoes? 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?
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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
Q10: Do you agree that Servis shoes designs are attractive? 1. Strongly agree 2. Agree 3. Neutral 4. Disagree 5. Strongly disagree Q11: Do you find your preferred shoe size easily? 1. Always Research Project: Market Share Analysis Of Servis Shoes
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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 Q14: Do you agree that advertisement of Servis shoes is efficient? 1. Strongly agree 2. Agree 3. Neutral 4. Disagree 5. Strongly disagree Q15: Can you recall the latest ad of Servis shoes? 1. Yes 2. No Q16: Do you feel comfortable while wearing Servis shoes? 1. Yes 2. No Q17: Do Servis shoes fulfil the seasonal requirements? 1. Always 2. Sometimes 3. Never Q18: Do you agree that attitude of employees at Servis outlet is cooperative? 1. Strongly agree 2. Agree Research Project: Market Share Analysis Of Servis Shoes
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3. Neutral 4. Disagree 5. Strongly disagree Q19: Do Servis shoes outlets provide reasonable discount during sales? 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
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REFRENCES
www.servis.com
www.bata.pk www.starlet.com
Business research methods by William G.zikmund Mr Tausif Hassan Gm human resource Mr Naim-ul-Abid _Gm Marketing