Vdocuments.site_servis-shoes-case-study.docx

Submitted to : Sir Saeed Abbas shah

Servis Shoes Case study

Mehmood khoso

Group Members : MEHMOOD ALI FAHAD ALI KHOKHAR TASLEEM ABBASI PRIYANKA BAJAJ

Introduction to the case study : this is a case study regarding to the new tagline of servis shoes “ shoes for everyone “ adopted by the company when it realized that its positioning in market needed to be reconsidered , and it also identified that the company also needed a huge promotion.

1. Company profile : 1.1. Mission Statement: To be a result oriented and profitable company by consistently improving market share, quality, reliability, availability, presentation, diversity and customer acceptance. 1.2. Vision Statement: To be market leader providing quality footwear and allied products.To strive for excellence and global recognition by continuous improvement , innovation , dedication and growth. 1.3.Chief executive officer : Mr. Shahid Hussain 1.4.Management teams : Mr. Ahmad Shahid Hussain - Chief Strategy Officer Mr. Tabish Sharif - Chief Financial Officer Mr. Ahsan Umer - National Retail Sales Head Ms. Zainab Khan - GM Human Resource Mr. Farooq Hyder Shaikh - GM Marketing Mr. Syed Jalal Ahmed Shah - Chief Information Office 2.

company History : The story of this company started more than 50 years ago , in 1941 , this was a collective struggle of two young and newly graduated friends from Gujranwala namely Mr. chouhdhry Nazar Muhammad and Mr Mohammad Hussain Choudhry . initially they operated for handbags and sports goods only in Lahore at a very small scale , but due to their consistent struggle in a very short time their business enhanced from leaps and bounds and within few years they were supplying their products to every corner of India at the time of partition. In 1654 they installed a shoe manufacturing plant at industrial area Lahore where they manufactured different kind of shoes , later the factory was shifted from Lahore to Gujrat. Service Sales Corporation (Pvt.) Ltd. – the Group’s marketing company – was established in 1959. Today, the production side of the company has flourished into Service Industries Limited (SIL) which has world-class shoes, tyres, tubes, and rubber production facilities in Gujrat and Muridke. SIL is also the leading exporter of footwear. Service Sales Corporation (Pvt.) Ltd. (SSC) is today Pakistan’s leading footwear retailer which is also diversifying into other businesses.

3.

Company products : the following are the famous products of servis.

3.1..Liza : It is a woman footwear brand in Pakistan) introduced in 1993. Liza is the most recognized women’s footwear brand in Pakistan. This is primarily a casual and a comfort wear shoe, its wide variety caters to different occasions and moods of a woman with a happening lifestyle. The product range comprises slippers, sandals, and shoes. Lightweight, comfort and style are important for Liza women and styling is to appeal a casual lifestyle with stylish smart look. Brand’s recent campaign, “Liza: The Fun Side of Life” revolves around today’s woman who lives an active lifestyle. Wherever she goes, people get distracted by her shoes and charm. The ad features leading models Mehreen Raheel and Mikaal Zulfiqar in an on-screen chemistry that’s hard to miss. Liza promises to offer a balance of comfort with modern styling for today’s woman. 3.2. Don Carlos, the first men’s mega brand in Pakistan, made its debut in the shoe market at a time when brand building was in its infancy. With an intriguing and an exciting brand personality, Don Carlos over a period of years has inevitably become men’s style leader in the footwear industry. The brand features fine craftsmanship and distinctive designs with hand-crafted details and cutting-edge quality. Don Carlos promises to unlock a world of possibilities for today’s man. 3.3. NDURE: Launched in 2008, NDURE is a recent addition to the SSC brand portfolio. It offers a platform of convergence for the new generation. The product range comprises casual, formal and sports’ shoes for men and women, focused on the urban lifestyle across a broad band of styling, ranging from basic to fashion. SSC offers this brand primarily focusing on urban consumers and is in sync with the global trends, a brand that is young at heart. 3.4. Cheetah is Pakistan’s leading sports and performance footwear brand. Over the years, the brand has developed a cult following among sportsmen and has come to symbolize the sportsman’s spirit. It has been endorsed over the years by sporting legends including Javed Miandad, Jansher Khan, and Shahid Afridi. Today, the brand offers cutting edge designs for a variety of sports including Cricket, Football, Tennis, Hiking, Outdoor & Basketball. It has one of the most coveted collections of running shoes. New initiatives by the brand include its women’s range of performance sport and casual shoes. as a brand, Cheetah symbolizes passion and has no parallel on the ground. 3.5. Calza is a brand that has its inspiration rooted deep in Pakistan and its culture. It is a brand for the man who faces challenges of his everyday life with a smile; striving for more, but doesn’t forget where he belongs. Popular movie star, Moammar Rana, is the face of the brand in its campaign “Meri Dharti Mera Calza” (my nation my Calza) that encapsulates the struggles of a man who dreams of making it big in life with his roots grounded to his cultural values. Calza

product range comprises affordable slippers, sandals and shoes for all day wear in varying weather conditions. 3.6. SKOOZ brings fun to school day with comfortable, durable and lightweight shoes. The product range covers school shoes for boys and girls across a broad age band. Over the years, SKOOZ has kept pace with the children’s varying interests and continues to offer fantastic product range along with hard to ignore promotion deals through scratch cards, international trips, freebies, tennis balls and sweepstakes. SKOOZ makes sure that the back to school time for children is every bit exciting. 3.7.TOZ is a world of fun for kids. It features shoes for boys and girls with vibrant colors and attractive styling. Extra care is taken in ensuring comfort, fit and safety in product design. TOZ promises to open up the imagination of kids and take them into a world filled with excitement, adventure and fun. 4.

Additional businesses :

4.1.Shoe planet : Shoe Planet is a unique shoe shopping destination store, offering product quality and design at par with the top international brands in an engaging shopping environment. 4.2. Servaid : This is a diversified business of servis company, set up in 2005. Servaid Pharmacy was established with a vision to market and sell products from all leading national and multinational pharmaceutical companies. With round the clock services and qualified pharmacists on duty, Servaid differentiates itself with its focus on customer service and general health.

5. product’s retailing : company has retail its retails stores showed in following map.

6.

Competitors analysis : 6.1 Hush Puppies :Hush Puppies is one of the fastest growing shoe company in Pakistan. Hush puppies is targeting upper class customers with the price range of Rs .1895-4395. Hush puppies offering 50% discount on its article at their factory outlet. Hush puppies distributes direct from their warehouse in factories. Hush Puppies focus is to provide comfortable and reliable shoes. The outlet of Hush Puppies has online system to place order to factory. To forecast monthly

demand company conduct meeting and use previous data of twelve months. Retail outlets receive orders after two days of placement of orders. For further customer relationship Hush Puppies give trainings to its employees every year.For this purpose they also trained new employees .

6.1.Bata :In past ,Bata targeted middle and upper class customers but after massive abundance of Chinese shoes in Pakistan Bata has been changing its strategy with respect to target market.Now Bata offering Chinese outsourced shoes with their own bata brand to capture the large segment of target market of price conscious buyers which were not targeted properly in past. So the main strategic focus of bata company is to achieve low manufacturing cost. Bata is using outsourced channel in which they are manufacturing Chinese based shoes from their own factory in china. The purpose of shifting some of their manufacturing site in china is the low labour and electricity cost. 6.2.Stylo : The global fashion market is growing by leaps and bounds and indeed, the fashion footwear industry is no exception. Stylo’s production capacity and existing infrastructure are prime reasons for making it a perfect entrant into the global export market. 7.

Promotional activities : servis mainly focused on Below the line promotional

activities , their promotional activities and associations regarding different products include : 7.1.1. Liza : The Fun Side of Life” revolves around today’s woman who lives an active lifestyle. Wherever she goes, people get distracted by her shoes and charm. 7.1.2. Don corlos : . Don Carlos promises to unlock a world of possibilities for today’s man. 7.1.3. Cheetah : It has been endorsed over the years by sporting legends including Javed Miandad, Jansher Khan, and Shahid Afridi. 7.1.4. Skooz : . SKOOZ makes sure that the back to school time for children is every bit exciting. 7.2.. TOZ : Toz promises to open up the imagination of kids and take them into a world filled with excitement, adventure and fun. 8.

Problems faced by servis because of its promotion

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8.1. Even the servis is leader in footwear industry in Pakistan with a market share of percent but in formal shoes servis is lagging behind bata. In past , servis has more focus on sports and casual footwear . 8.2. Even servis shoes has different brands and they were properly promoted in past with different strategies as above discussed , however the mother brand lacked the attention , and it was

over and again seen that people were having overly attention to different products rather than the mother brand. As mother brand was not properly promoted, so people had mixed kind of thoughts and image about the mother brad and the company found it difficult to position itself properly in market . Which could cause a long term negative effect to the company name . 8.3.The company mainly focused on BTL activities for promotion , which was good as low cost strategy however it was obviously seen that the company was losing its market share day by day becauseeven the company had a large gap in market and different opportunities but it only focused on few and selected customer base using BTL promotional activities.

8.4. The company mainly operates on old manufacturing method, hence comes with traditional kind of products, not only the company had the more focus on sports wears but also it was clearly observed that the company lacked in the market of female’s footwear , this was the market segment which needed a huge consumer insights and a huge variety in products so that the female customers could be satisfied properly , however the company had only classical type of products for the female, and this posed a great threat for the company for its future operations in the market segment of females. 9.

What the company actually needed for overcoming above problems : if properly analyzed then it could be very much clear that the

company’s positioning in marketing was a great weakness of the company, because it entered the market mainly serving with casual and sports footwear, and operated in that market for a long time, so the company has built its image of serving casual shoes, even the company now has a large number of variety being a solution to different customer needs , however the company lacked the proper positioning, moreover the company’s different campaigns for its different individual brands also made the mother brand’s personality muddled, furthermore the company’s lack of investment for ATL promotional activities showed that company was going on a smooth track back to destruction. So the company mainly needed : 9.1.To change the perception that the company not only focused on sports shoes but also it operated for females, kids, and for different people belonging to all walks of life. 9.2.Wanted to have a proper position as a company in consumer’s mind, event the compny’s different brands had an individual identity. 9.3.Wanted to focus on all the market , rather than few customers that it already approached through BTL promotional activities on its outlets.

10.

Solutions : if properly analyzed it was clear that in simple words the company needed nothing else but a large promotion and the different positioning in market. Which could only be done through a new tagline for the company with its huge promotion , which could not only grab the attention of the customers but also it could be a cause of repositioning given that the tagline was of the required kind.

11.

What company did : so the company for the solution of the above problems which were mainly related to each other came up with the a new tagline . which was “ shoes for everyone “ , this truly promised that the servis company not only focused on sports shoes but also on all kind of customers, this not only repositioned the company , but also it was a general kind of promotion for whole the company , so it also proved to be the promotion of the mother brand, which the company severely needed for a large time, moreover when it was on air on different mass media sources as a commercial it also fulfilled the need of ATL activities for the promotion.

12.

How the company did it : company came up with a new ad with a tagline shoes for everyone , in which different people belonging to different walks of life were shown , wearing foot wears of servis , from kids to female this ad covered all the market segments , the images , sound, characters and different things in the ad truly reflected that servis shoes had soluitons to the needs of all kind of customers for foot wear. This ad after showing different people belonging to different walks of life concluded with the claim i.e. the tagline which was “shoes for everyone “ .

13.

Impact of the new tagline : the problems that the company faced regarding the promotion as above discussed , were truly identified by the company and this new strategy not only repositioned the company, but also it made a clear cut image of the company in market, moreover when the ad was on air it also grabbed the attention of a great customer base which the company severely needed.