PRESENTED TO:

Madam Faiza Hasan

PRESENTED BY: - SPARTANS -

Lamia Asad – 070

Hamza Saleem – 049

Hanzlah Mehmood – 052

Najam-Ul-Hassan – 155

Faizan Khan – 037

SUBJECT:

“MARKETING MANAGEMENT”

TOPIC:

-BORJAN- FASHION FORWARD

DATE:

26-05-2011

BORJAN

Borjan (Pvt.) Ltd. is a retailer of shoes with 61 shops in Pakistan. In addition to its own network of 61 shops, Borjan also sells to about 127 independent shoe retailers. They manufacture shoes in their own manufacturing units. They started operations in 1986; The Company has now become Pakistan’s leading fashion footwear chain with 61 outlets in nineteen beautiful cities of Pakistan. They specialize in the Retailing of Brands.

Their brands consist of Digger, Gig, Skywalk, Trooden, Matilla, GB and SP. Success of these brands is mainly because of their heavy investment in research and development. In near future they will also be launching their brands in Middle East and other major Asian Countries. They always hope to build long term business relations with the esteemed companies, in future.

COMPANY PROFILE

BASIC INFORMATION

Company Name: Borjan (Pvt.) Limited Business Type: Manufacturer Product/Service (They Sell):

They are manufacturers of Gents & Ladies Shoes with Leather shoe upper. They offer shoe with comfort.

Address: 9-Dayal Singh Mansion, Mall Road Number of Employees: 501 - 1000 People Company Website URL: http://www.borjan.com

OWNERSHIP AND CAPITAL

Year Established: 1970 Legal Representative/Business Owner:

CEO

TRADE AND MARKET

Main Markets: Western Europe Total Annual Sales Volume: US$5 Million - US$10 Million

Factory Information

No. of R&D Staff: 5 - 10 People

BORJAN – THE OUTLET:

I have a theory about shoes, “the more you buy them, the less you have, for you have innumerable outfits and each requires that you have the perfect pair of shoes to complete your look.” Borjan is one of the many shoe stores that have opened innumerable outlets all over Pakistan and have made a name for themselves owing to their high quality and exquisitely designed footwear!

THE SHOP

Each and every outlet of Borjan shoes in Pakistan has more or less the same outlay, with glass doors and a huge blue board signaling that you`ve come to the right place. The interior is spotless with shoes displayed neatly in the cases; the bags hung on the movable display unit or placed on racks, while other accessories are placed in the display units at the counter. The outlets give a very organized and sophisticated look that appeals to the senses and makes you want to try it out!

PRODUCT RANGE

Borjan shoes Pakistan boasts of a wide variety of contemporary women’s footwear for the ultra chic ladies, ranging from stilettos to pumps to slippers and men’s casual shoes. The designs are unique and available in unusually cool and funky colors. To cap it all, the shoes are easy on your feet and you do not have to wear them a few times before you can actually walk without getting blisters on your feet! At Borjan, you`ll definitely find a matching pair of women’s footwear for your outfit that`ll add extra bling to your look!

Borjan also caters to the need of the gentleman and thus has a wide array of men’s casual shoes, ranging from Moccasins to Summer Sandals, designed especially for the guys. Again, the quality of the shoes is top notch. The shoes are trendy, hip yet comfortable, which is another feather in their cap and you can expect the same from men’s casual.

Shoes aren`t the only piece of accessories that you`ll find at Borjan. Now the ladies can accentuate their outfits with elegant clutches or a smart hobo bag, as per their desire. The

entire range of bags has a modern feel to it, owing to its exquisite designs and casual charm. So grab a bag along with your desired pair of shoes and get ready to make a statement!

Some outlets of Borjan also carry other accessories like belts, wallets etc but since they are far and few, most people don’t pay much attention to them and hence they are not the biggest source of attraction for the shoppers.

PERFECT FIT

Though the shoes are stylish and trendy, but what good would that do if you don’t have the size available in the shoe you picked? That is exactly what`s wrong with Borjan shoes. We questioned a few people around and also with our own personal experience; we get to know the Borjan actually has problems with sizes. You fall head over heels for a particular pair of women’s footwear or men’s casual shoes and then have your heart broken when the sales person informs you with regret that the size isn’t available in the shoe you picked. That’s the case with most of their shoes which annoys the hell out of customers and irks them to no end. This is the only flaw in them too, as they have standard sizes.

SERVICE

The sales people at Borjan are found a bit of a annoying as they keep a track of your every move and shadow you around the store. Not only is it annoying to have someone tailing you all over the shop but it also hinders the process of deliberating and making the purchase.

PRICE RANGE

The shoes fall into the price range of Rs. 600 – Rs. 2500 which is reasonable enough, considering the quality of their offerings. The bags on the other hand are around Rs 1000, on average, which again, I think, is not asking much for such cool and trendy bags. The men’s casual shoes though are a bit higher in price as compared to the rest of the stuff

POINTS TO PONDER ON

The Good: Borjan shoes Pakistan gives you High quality Men’s casual shoes & Women’s footwear that bring a wow factor to your whole look!

The Bad: The annoying sales people and unavailability of sizes put off customers.

The Bottom Line: Impressive range of shoes that will accentuate your outfits but only if the shoe fits!

To prioritize and look after our consumers To do the best with honesty To care for our own people To give back to the society To build strong relationship with consumers, vendors and employees To enhance that respect factor amongst us Business Innovations

VISION

“Borjan aspires to become a leading organization not only in Pakistan but also its neighboring nations so that our brands & utility products become the first choice of our consumers to make them look and feel smart. Borjan aims to be true to its Positioning line of ‘ Fashion Forward’ and we not only aim to provide the very latest in Fashion but also provide the best possible shopping experience, excellent customer care services and peace of mind to our consumers. We intend to continue to provide the most modern and comfortable footwear to our consumers.”

Borjan has a team that takes initiatives, has courage and inspires other team members, at Borjan they do their utmost to ensure that people assume full responsibility in the climate of trust. They are committed to challenging and rewarding their top performers and creating an environment where employees realize their maximum potential. They reward people based on performance standards which are aligned with their business objectives and long term goals.

The various training and development tools at Borjan assist their employees to be fully effective in their jobs for a long term career. Opportunities at Borjan offer a wide scope of learning and development while providing with a perspective which is attuned to the global markets while catering to the local environment. From the very first day employees start to

acquire new skills, BORJAN’s approach to career development is simple and focused; they encourage their people to:

Take responsibility of their own careers Be proactive, open minded and credible Be self-aware and honest about their aspirations, strengths and weaknesses

Performance Management Training by Fulcrum Consultants

CEO Mr. Zahid Hussain addressing the participants of PMS training session

TOTAL NUMBER OF EMPLOYEES

Head Office: 110

Distribution center: 37

Store Staff: 374

Total 521 Employees

COMMUNITY SERVICES

Borjan’s corporate philosophy emphasizes on sharing responsibility to the communities

where we live and work. We take our responsibility towards our community very seriously.

Therefore, we remain committed to fulfilling our corporate responsibilities through initiating

programs that meet the needs of communities; Borjan strives to contribute to the society

through its sister concern Haral Bunyad (website under development).

“Borjan Family Gala” was held in Nov 2010, attended by all family members of Borjan Pvt. Ltd that not only featured sports for adults but activities for children as well.

Borjan held a friendly inter Dept Cricket match that was won by Team Digger (Feb 2010).

CUSTOMER CARE:

Please feel free to contact us with your complaints or suggestions and we will be more than happy to resolve your queries.

Contact Borjan Customer Care through the following channels

E-mail: customercare@borjan.com.pk

Phone: 0302-4074640

CLAIM’S POLICY

Claims for any defects / flaws in our product shall only be accepted within 30 days from the date of purchase, required that you have the original receipt.

Absolutely no claims will be entertained on discounted items The Company’s decision regarding claim is final and cannot be challenged at any level

whatsoever including, but not limited to the court of law.

OBJECTIVE

Borjan established itself as a world-class manufacturer of private label and branded footwear with the aim to provide exceptional shoes at affordable price. It is here that innovation and technology come together with skilled hands and an old fashioned work ethic. They know their rigidly control manufacturing process is not a mere advertising slogan, but rather it is the necessary process to build footwear that withstands the test of time and defines customer satisfaction. With the commitment to luxury and style, Borjan is now one of the leading retail shoe chain with 48 outlets in 61 cities of Pakistan.

At Borjan they believe that your shoes should reflect your individuality, and they have spent the past 17 years bringing beautifully crafted, cutting-edge, urban, fashionable footwear to their customers, both men and women in Pakistan. They represent a select group of hip designers, who feel that shoe making is still an art, and you can feel their creativity come to light in each style.

Borjan was previously known as ‘Prestige’, but they changed their name to ‘Borjan’. It’s been 5 years now that they have changed their name and are gaining really good results. They take great pride in the quality that they offer. They form partners with their clients and cater for the needs of competitive pricing, high quality shoes and on-time delivery.

BORJAN BRANDS

Skywalk is contemporary styling brand; it caters to the demand of Executives and men who are on the go. The age bracket can be best defined as 28+. The main features of Sky walk shoes are extreme comfort, flexibility, elegant contemporary styling & bare foot feeling. Skywalk perfectly balances for the sharp dressed Executive with a high sense of style and a demand for around-the-clock comfort.

Tough, rugged, breathable and a very comfortable outdoor shoe, an innovation that changed the kind of shoes we wear. In an era when footwear choices are limited, Digger is a very modern shoe embraced by authentic style and casual flair which is a symbol of outdoor comfort with a touch of style & elegance. Its relaxed and classic designs, has always defined what it means to be modern and casual. Digger is a rough & tough outdoor causal brand, its target customer is between 15 to 35 years old, The wearing of the targeted customer is Jeans, trousers or causal dressings, this product is totally made with Nubic leather that give you comfort & freshness due to sweat absorption system.

Gig can be best described as ‘Formal Essentials’. This is a stylish, formal & party wear brand specially made for Executive officials. It serves the needs of those men who always want to be in latest of fashion and wish to look different & fashionable from others. One can feel the timeless craftsmanship in every step that is taken with the designing and making of Gig.

Matilla is a trendy leisure product; the target audience is every one who wants to be hassle-free & calm during their evening activities or casual home uses. Matilla is a range of trendy sandals and slippers for relaxation, the light weight Matilla is ideal for all kind of restful occasions.

Kashang is moderate indoor utility product for women, with errands to run and a social calendar brimming with activities, Kashang fits the versatile lifestyles of today’s on-the-go women. For leisurely work or every day wear especially those who wish to participate in their evening summer activities. The target audience is in the age group of 16-30 years who dress in casual shalwar kameez or jeans. Kashang is a slim look, charming product with vibrant colors.

BORJAN’S MARKETING STRATEGY

SEGMENTATION OF CUSTOMERS

Borjan has used segmentation to target their audiences. They feel that segmenting is the most important part of marketing. They segment their products geographically, age-wise and demographically.

Borjan is a brand, having 6 different brands under its umbrella; every single brand has its own identity, own profile. By profile they mean that every single brand has its own target market. For example, the famous brand DIGGER is targeting the youngsters, it is an outdoor casual brand; people of those age groups are offered snickers.

There is also a brand offering complete luxury, SKYWALK, which targets the middle aged people, who require extreme comfort for those who are on the go all day long. It has more to do with the comfort than the overall optic of the shoes.

There is also a brand KASHANG, which is middle aged ladies product, which offers more luxury and comfort than the optic of the shoes. There is MATILLA which comes in casual stripes, snickers etc.

SHOP SEGMENTATION

Apart from segmenting the audiences into different categories and then keeping in mind what their tastes and cultures are and creating differentiation accordingly. Borjan has found a very smart way of segmenting its product, i.e. through segmenting their display in their shops. They have displayed their every sub-brands products accordingly, so that the customer gets aware of them, plus he/she knows what is required or needed and from where they can access it.

ADVERTISEMENTS

Advertisements are an important part of promoting one’s product or service. Borjan has taken some innovative steps for advertising its products, and creating awareness amongst the customers about its sub-brands and all the new products that they have or are going to launch.

The main criteria of advertising that Borjan has adopted, is not to sell the product as advertising is not for the sake of advertising or for the sake of spending money one it. Infact it’s

about the value paid, as if you’re spending money on an ad, it should be of such a quality that you get immense sales on it.

Advertisement has to be creative though and has to fit the target audience that you have in mind. The message has to be delivered in such a way that every audience whether it’s the people of the rural areas or the urban, understand it and feel that it is actually created for them specifically.

They have also put up billboards to advertise their products, plus are making ads to attract new customers, moreover retaining old ones and telling them about their new products and features.

Borjan has been facing some problems in advertising in Lahore, regarding the outdoor advertising due to unawareness. But they are adopting steps to overcome the problems and thinking of new appropriate ways.

If we look at the competitors of Borjan, we can see the most main competition that it has is Hush Puppies. If you see that every outlet that it has, is named by its name. Borjan on the other hand has 6 different brands within itself, but every shop is named with ‘Borjan’ so normally people are not aware of the sub-brands that much.

BORJAN’S MAIN FOCUS: VALUE FOR MONEY

Value for money is their main focus right now. What Borjan feels is that the reason why customers will buy their product or would recommend others is because; they have found value in the product for the money that they have paid.

What mostly customers want is quality in what they desire for, and if the company becomes successful in offering them the best in the most affordable prices, what more could anybody ask for?

Even if the product is expensive, the customer will be willing to buy, if he needs the product and is one of the major necessities in his life. And if the product is providing all the utility that he needed, then he would surely buy it. So, for the customers the value for money is really important. As they want to make sure that whatever they are spending for, is worthwhile.

Therefore Borjan has a very clear and strong goal in mind, and they are targeting the right audiences with the most right product fulfilling all their needs. Therefore the design of the product and everything else related to the product is done, keeping the customer perception in mind. As it is very important for them to satisfy their customers, so Borjan focuses on the quality of products.

BARRIERS BORJAN FACES IN THE MARKET TODAY

Today is a world of cut-throat competition, everyone is trying to pull the other down in order to move ahead, whether it’s through their competitive strategies or points of differences. There are loads of barriers in the marketing field. Everybody has to face some difficulty everyday,

but this is a part of the business. So, Borjan tries to stand out and give their competitors the strongest competition using strong marketing strategies. They overcome the barriers by using new innovative ideas and by adopting means to satisfy their customer more, by providing quality products to the customers and gaining their trust.

Customer Related problems

Every day at Borjan, there is a new challenge, everyday there is a new concern, every day there is a new problem, someone don’t like this thing, someone don’t like that thing, even if you keep 250 or more designs under one roof in a single shop, still you will find unsatisfied customers, who are exploring other horizons and other opportunities to get best in there amount of money. So it is not possible to serve the entire customers, you have to reach out the penetrated customers for sales and best sales.

Differentiation is important to overcome barriers

As we know that today there is no monopolistic competition so it is important for your business strategies to be good plus different from others. Here the process of differentiation is used by Borjan. Monopolistic sort of environment does not exist anywhere in probably any segment of any company. There might be some brands where there is no perfect competition like Gillette but other than that there is perfect competition in almost every segment of the market the Borjan is serving. So Borjan adapts the differentiation technique to make its products unique from others. They also use the cost-reduction process to reduce the cost price and gaining more profit.

Climate and Seasonal Cyle’s Affect Business

One of the major barriers that Borjan has faced is the ones related to climate and season. It is a very seasonal business, every week it is affected by such processes. The planning is done before hand almost one year. Today the planning is being done how to meet the challenges in the next summer of 2012. As soon as new trends and fashion are introduced they are incorporated and in the minimum of time the fashion has to be filled in and made ready to be launched.

RIGHT PLACE FOR PROMOTION

Borjan believes that first principle of retailing is location, if your location is good your product will sell, if you an exceptional product then the location might not matter, it is in very rare matters, only 1%, like looking out for tasty stuff by going inside some odd area or congested places. Normally in retailing place matters the most, for example hush puppies, Bata, service the competitors of Borjan all look for a good place for retail outlets. So, Borjan is focusing on its outlets too, as the right promotion will lead to the right customers. The location is selected by

researching the market, by seeing the competitors around the market, by studying the market, the products offered by the competitors in the market.

MAJOR COMPETITORS

Borjan has different brands under its ‘Brand Borjan’, as in the case of females our competitors are stylo, ecs, and modilla shoes. If you look at it geographically, metro shoes even some brands of service and Bata, In case of our male brands, our competitors are bata, service, hush puppies, urban soul, hush puppies and piere cardian.

Uniqueness and differentiation in the product that makes them different and makes customers to buy the product:

Optically the shoes are same, but the thing that matters is how you reach to the customer, how it appeals to the customers, what is the value of the money that you are giving to the customer, for example, why do we buy an original Nokia phone, why don’t we go for a fake low quality phone. Borjan is an organization which has a name in the market, it has got its values, you can change the shoes after purchasing it or exchange it, there exists an organization’s policy, that even after 3 months you can claim tear in the shoes, if it’s a technical fault, a whole backing up and care for the customer is done in the customer care department. If the shoe has a problem on the Borjan’s side, it will be replaced but not on the part of the customer. In this case the company humbly refuses the customer with best regard and care.

INDUSTRY TREND WHICH CAN DRIVE UP THE SALES

Probably, lower electricity cost, lower import cost, lower material cost, lower tax on production, lower tax on imports, will help a lot in reducing the value of the product and bring relatively low cost products to the customers. And all these things mentioned above can drive the costs up. Labor cost has increased due to inflation and the cost of raw material has increased which has resulted in the higher prices of shoes. Taxes have been put up like GST, Flood tax and sales taxes have definitely caused the prices to flare up. Strategies which can reduce the cost without lowering the quality of the product are being adopted which can lead to a lower price of the product.

PRICING IS REALLY IMPORTANT

Pricing is very important in the decision making process, only the extreme luxury brands have the luxury to control the price but the brands more or less don’t exist in PAKISTAN. We conduct ‘SALES’ in order to gain customers plus to gain our desired profit. The current pricing structure is comprised of sales, summer and winter, with the price reduction which ranges from 5 to 55 %.

KEY TRENDS AND OBJECTIVES FOR THE NEXT COUPLE OF YEARS

Borjan’s one of the most definite key trends is fashion most definitely. Media is ready to meet the everyday needs and demands of the customers. Like every other organisation, Borjan keeps itself updated with the latest fashion trends and tries to keep improving its products accordingly, bring new features and innovations.

Borjan’s objective for the next couple of years is really clear and they are firm on achieving higher profits. Currently they have 61 outlets, we are planning to have 100 outlets at the end of 2015 and keep on serving the fashion appetite of Pakistan in footwear industry.

Expectations ion the market share and is a developing market. They expect the market to develop at the current rate. Even if it reduces they expect the market to keep on increasing even if the projected rate goes down. Currently they have 10 -11% of the market share.

Improvement steps being taken in BORJAN to meet the customer needs

Customer services Customer loyalty Customer requirements Better requirements Better advertisements. Better go downs. Better customer services Better retail outlets Better shopping experiences Better after sale services Better research Better understanding of market needsThrough these steps Borjan is improving its current

situation and looking forward to a bright future ahead. They are thinking of new innovative strategies and adopting every effective procedure to gain profitable results.

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