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TRANSCRIPT
A
Report on
“Summer Internship”
At
M&B FOOTWEAR [P] LTD.
A Project Report on
“Present Market Scenario of Premium & Luxury Footwear Brands”
Submitted
TO
International Institute For Special Education
In partial fulfillment of requirements for the award of the certificate of
POST GRADUATE DIPLOMA IN MANAGEMENT
By
Under the Guidance of
MR. SHARIQ MOHD.
FacultyIISE, Lucknow
&Mr. RAMAN SHARMA (Industry Guide)
INETERNATIONAL INSTITUTE FOR SPECIAL EDUCATION
LUCKNOW
2007-2009
DECLARATION
I here by declare that the work present in this Summer Internship and project
report entitled, "Present Market Scenario of Premium & Luxury Footwear Brands"
is original and has been carried out by me towards partial fulfillment for the award of the
certificate in “Post Graduate Diploma in Management” submitted to the
INTERNATIONAL INSTITUTE FOR SPECIAL EDUCATION. The findings of the
report are based on the information collected by me during this study.
Place: LUCKNOW SHIWANGI SINGH
Date: 04/06/09
Acknowledgements
I wish to express my sincere gratitude to Mr. Shariq Mohd, Lecturer, IISE
Lucknow for providing me with an excellent opportunity to carry out this Summer
Project under his guidance.
It gives me immense pleasure to express my gratitude to Mr. Vikash Bagga, Vice President (Marketing & Corporate Affaire), Raman Sharma, Marketing Manager (Geox & Merrell), Suraj Singh Bhandari, ASM
(Geox & Merrell), Mannu Mishra, ASM (Lee Cooper & ID), Mukesh
Kumar Verma (Computer Operator), Sanyogita Rawat and I thank other
staff members of M&B for their support and guidance in doing this project
without which the present work would not have been possible.
Last but not least my sincere thanks to my parents and my friends who helped me
directly during the project work.
SHIWANGI SINGH
Executive Summary
The Project report is based upon the knowledge about footwear industry, introduction
about M&B Footwear [P] Ltd, Delhi. To know about the vision, mission, objectives,
policies and the functioning of various departments of the M&B Footwear [P] Ltd and to
understand the process of footwear production and marketing units of M&B Footwear
[P] Ltd. I did my project work in M&B, under the guidance of Raman Sharma (Industry
Guide).
My main objective of this report is to study the current market scenario of luxury &
premium brands of footwear in Delhi & NCR. To attend this objective I administered
questionnaire, asked the questions to the showroom managers and surveyed the market. I
studied demand & supply of these P&L brands and company strategies, promotional
campaigns and competitive strategies against their competitors. My secondary objectives
are to study the consumer behavior towards P&L brands and to attend this objective I
asked questions directly to the customers regarding these P&L brands and next to study
the challenges are being faced by the companies regarding these P&L brands and to
attend this objective I studied the different aspects of the company strategies through
questionnaire by asking questions to the showroom managers and company
representatives. This project is an attempt to show how Marketing theory can be applied
to solve problems in practice.
An above all as a student of PGDM of DC School of Management and Technology,
Pullikkanam, Kerala preparing this project for the partial
fulfillment of PGDM certificate is a record of bonafide research work carried by me.
CONTENTS
Page no.
CHAPTER-I……………….……………………………………………………………..10 – 12
1. Introduction
Need for the study
Objectives of the study
Methodology
Limitations
CHAPTER-II…………………………………………………………………………….14 - 26
Industry profile
CHAPTER-III……………………………………………………………………………28 - 44
Company Profile
CHAPTER-IV……………………………………………………………………………46 - 69
Project Analysis and Findings
CHAPTER-V…………….……………………………………………………………….71 - 74
SWOT Analysis
Summary, Suggestions & conclusion
BIBLIOGRAPHY…………………...……………………………………………………75
APPENDIX……………………………………...………………………………………...76-82
LIST OF FIGURES AND TABLES
Page No.List of Tables:1. Table of footwear companies situated in various parts of the country………….132. Region-wise share of total estimated capacities of footwear companies………...143. Export of leather footwear during the last three years and Export Projection for the next two years…………………………………………………..15 4. India’s export of footwear………………………………………………………….175. Footwear is the engine of growth in exports of leather sector……………………186. Export of 2005-06 and target 2010-11……………………………………………...187. After performing sector specific corrections, the probable growth rates that could be achieved and Footwear product mix……………………………..19 8. Some popular and famous Global Footwear Brands and Global Brands currently sold in India……………………………………………………………….209. Export of footwear components during the last three years……………………...2410. Export projections for the next two years………………………………………...2511. Business model of M&B footwear…………………………………………………27
Exhibits:Exihibits-1……………………………………………………………………………….17Exihibits-2……………………………………………………………………………….22Exihibits-3……………………………………………………………………………….46Exihibits-4……………………………………………………………………………….47Exihibits-5……………………………………………………………………………….48Exihibits-6……………………………………………………………………………….49Exihibits-7……………………………………………………………………………….50Exihibits-8……………………………………………………………………………….51Exihibits-9……………………………………………………………………………….52Exihibits-10……………………………………………………………………………...53Exihibits-11……………………………………………………………………………...54Exihibits-12……………………………………………………………………………...55Exihibits-13……………………………………………………………………………...56Exihibits-14……………………………………………………………………………...57Exihibits-15……………………………………………………………………………...58Exihibits-16……………………………………………………………………………...59Exihibits-17……………………………………………………………………………...60Exihibits-18……………………………………………………………………………...61Exihibits-19……………………………………………………………………………...62Exihibits-20……………………………………………………………………………...63 Exihibits-21……………………………………………………………………………...64 Exihibits-22……………………………………………………………………………...65Exihibits-23……………………………………………………………………………...66 Exihibits-24……………………………………………………………………………...67Exihibits-25……………………………………………………………………………...68Exihibits-26……………………………………………………………………………. .69
CHAPTER –1
INTRODUTION
Introduction
The footwear sector is a diverse industry which covers a wide variety of materials (textile, plastics, rubber or
leather) and products from different types of men’s, women’s and children’s footwear tomore specialized
products, like snowboard boots and protective footwear. This diversity of end products corresponds to a
multitude of industrial processes, enterprises or market structures.
The Footwear Industry is a significant segment of the Leather Industry in India. India ranks second
among the footwear producing countries next to China. The industry is labour intensive and is
concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated
in large scale units, the sandals and Chappals are produced in the household and cottage sector. India
produces more of gents’ footwear while the world’s major production is in ladies footwear. In the case
of Chappals and sandals, use of non-leather material is prevalent in the domestic market.
SIGNIFICANCE OF STUDY:
There is a special role for every industry basing upon the need and essentiality of the users. Footwear
industry is a major industry where everything has to be done in accordance with standards that are
regulated by the government as well as Pvt. Sector.
To understand this, conceptual idea is not only sufficient but also it needs a wide knowledge and
understanding of the factors that are affecting them. Especially M&B has emerged as a one of the best
footwear company in India. Now, the study is all about analyzing, how this has been possible for a
company and to know about the industry also.
The significance of choosing “The Current Market Scenario of Luxury & Premium Brands
of Footwear in Delhi & NCR” as a study is because of its importance i.e., to know about the market
trends regarding these P&L brands and M&B is also dealing with two P&L brands (GEOX &
MERRELL).
OBJECTIVES OF THE STUDY:
The study is based upon the market research and the trends of the different P&L brands.
MY PRIMARY OBJECTIVE OF THIS PROJECT IS TO STUDY:
The Current Market Scenario of Luxury & Premium Brands of Footwear in Delhi &
NCR.
To attend this objective I prepared questionnaire, asked the questions to the showroom mangers and
surveyed the market. I studied demand & supply of these P&L brands and company strategies,
promotional campaigns and competitive strategies against their competitors.
MY SECONDARY OBJECTIVE OF THIS PROJECT TO STUDY:
The consumer behavior towards P&L brands.
To attend this objective I asked questions directly to the customers regarding these P&L brands
through questionnaire such as which segment of people use to come to purchase these products, how
they are attracted towards these brands and tried to study the general perception regarding these brands.
MY TERTIARY OBJECTIVE OF THIS PROJECT TO STUDY:
The challenges are being faced by the companies regarding these P&L brands.
To attend this objective I studied the different aspects of the company strategies through
questionnaire by asking questions to the showroom managers and company representatives. I tried
to get these answers
1. Pricing Technique
2. Packaging Process
3. Promotional Campaigns
4. R&D Policy of the Company
5. Strategy of their competitors
Research Methods:
The information for the study has been obtained from two sources namely.
1. Primary Data
2. Secondary Data
Primary data:
The data for study has been collected from the management of the company. The information about
the industry profile and company profile was gathered from Marketing & Sales Dept. of M&B
Footwear, and the data about the Present Market Scenario of premium & luxury brands of footwear are
gathered from asking questions to the customer as well as showroom managers of different brands
itself .
Secondary data:
This is taken from the annual reports, websites, company journals, magazines and other sources of
information of Footwear Company.
LIMITATIONS:
1. The period of study that is 10 weeks was not enough to go into the detailed aspects of the study.
2. The study is carried basing on the information and documents provided by the organization are
based on the interaction with the various employees of the respective departments.
3. My project was based on the Market Research that’s why I had to go to different areas of Delhi
& NCR and the areas were completely unknown for me that created a little bit problems for me.
4. Hot and deadly summer season of Delhi & NCR.
CHAPTER - 2
PROFILE
OF
FOOTWEAR INDUSTRY
INDUSTRY PROFILE:
Industry
The footwear sector is a diverse industry which covers a wide variety of materials (textile, plastics, rubber or leather) and products from different types of men’s, women’s and children’s footwear to more specialized products, like snowboard boots and protective footwear. This diversity of end products corresponds to a multitude of industrial processes, enterprises or market structures.
The Footwear Industry is a significant segment of the Leather Industry in India. India ranks second among the footwear producing countries next to China. The industry is labour intensive and is concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated in large scale units, the sandals and Chappals are produced in the household and cottage sector. India produces more of gents’ footwear while the world’s major production is in ladies footwear. In the case of Chappals and sandals, use of non-leather material is prevalent in the domestic market.
The major production centers India are Chennai, Ranipet, Ambur in TamilNadu, Mumbai in Maharashtra, Kanpur in U.P., Jalandhar in Punjab, Agra and Delhi
The following table indicates concentration of units in various parts of the country:
Region Large & Medium Scale
SSI(small scale) Household
Tamil Nadu 64 31 7
Delhi & up North 4 8 2
Agra, Kanpur 9 34 14
Calcutta 1 3 19
Bangalore 6 3 4
Mumbai 3 11
Others 13 10 3
The estimated annual footwear production capacity in 1999 is nearly 1736 million pairs (776 million pairs of leather footwear and 960 million pairs of non-leather footwear).
Region-wise share of total estimated capacities is as follows:
RegionLeather Shoes
Non-leather Shoes
Leather Shoe Uppers
Leather Sandals
Non Leather Sandals
Percentage
Tamil Nadu 26 5 54 1 0
Delhi & up North 10 77 4 1 60
Agra, Kanpur 45 0 32 62 0
Calcutta 12 0 2 3 0
Bangalore 3 3 4 0 0
Mumbai 4 2 1 32 0
Others 0 13 3 1 40
Total 100 100 100 100 100
Shoes manufactured in India wear brand names like Florsheim, Gabor, Clarks, Salamander and St. Micheal’s. As part of its effort to play a lead role in the global trade, the Indian leather industry is focusing on key deliverables of innovative design, consistently superior quality and unfailing delivery schedules.
India in itself has a huge domestic market, which is largely untapped.
The Indian footwear industry is provided with institutional infrastructure support through premier institutions like Central Leather Research Institute, Chennai, Footwear Design & Development Institute, Noida, National Institute of Fashion Technology, New Delhi, etc in the areas of technological development, design and product development and human resource development.
The availability of abundant raw material base, large domestic market and the opportunity to cater to world markets makes India an attractive destination for technology and investments.
IMPORT
In 1999, the global import of footwear (leather and non-leather) in terms of value was around US$
43278 million, accounting a share of 63.42% in the total global import of leather and leather products. Out of this, import of leather footwear alone accounted for US$ 26379 million and non-leather footwear US$ 16899 million.
EXPORT
India’s export of Leather Footwear touched US$ 331 million in 1999-2000, recording an increase of 3.29% over the preceding year. India thus holds a share of 1.25% in the global export of leather footwear. The major markets for Indian Leather Footwear are the U.K., the U.S.A., Germany, Italy, France and Russia. Nearly 71% of India‘s export of Leather Footwear is to Germany, the U.S.A., the U.K and Italy.
In 1999-2000, export of leather footwear from India constituted 21% share of its total export of leather and leather products. Nearly 33 million pairs of various types of leather footwear were exported during the year, out of which shoes / boots constituted 90%.
The different types of leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes, horrachies, sandals, ballerinas, booties.
Export of leather footwear during the last three years:
(Value in million US$)
April-Feb
Product 1998-99 1999-2000 2000-2001
Leather Footwear 320.25 330.80 348.96
Source : DGCI & S, Calcutta
Export projections for the next two years:
(Value in million US$)
Product 2001-02 2002-03
Leather Footwear 453 506
Source : Indicative Medium Term Plan
An Overview of Leather Industry
A traditional leather exporting country. Status changed from a country exporting finished Leather to finished products.
8th Largest earner of foreign exchange for the country. Exports during 2005-06 were close to 3 Billion.
Employs 2.5 million people – mostly women – has huge social impact. Country has strength in raw material, trained manpower and technology. There are more than 2300 member exporters in the Country, situated in clusters in Chennai,
Kanpur, Kolkata, Agra, Noida and Mumbai. 90% of raw materials for the tanneries are from within the country and only 10% are imported. Red Hair Sheep skins are known for it’s premium quality. 24% of the exports are finished leathers (2005-06) More than 80% of the colors selected in the MODEUROPE are from India. Leather exports have touched US $ 606 million in 2005-06. Strong eco-sustainable tanning technology World class institute for Research and Development for leather development. Presence of support industries like Leather chemicals and Finishing auxiliaries are the strength
of the industry.
An Overview of Footwear Industry
Second largest footwear producer after China 2.06 billion pairs produced in an year 16 % of the global production is produced in India Exported 92 Million Pairs (2004-05) Contract manufacturers supply to leading global brands 644 Member produces situated as clusters at Chennai, Ambur, Ranipet, Kanpur, Agra, Mumbai,
Delhi and Karnal
Exihibit-1
Exports 2005-06 and Target 2010-11
Years US$ millions
Pairs (in millions)
2005-06 US$1035 92
2006-07 US$1200 115
2010-11 US$4500 400
2380.44 6980.32
Footwear Product Mix
Some popular and famous Global Footwear Brands
1) Geox 11) Justin 21) Deichmann 31) Fendi 2) Clarks 12) Double H 22) ColeHann 32) Louis Vuitton 3) Ecco 13) Acme 23) St. Micheal’s 33) Valentino 4) Gabor 14) Aldo 24) Lloyd 34) Jimmy Choo 5) Florsheim 15) Bally 25) Nine West 35) Hugo Boss 6) Salamander 16) Hush Puppies 26) New Balance 36) Dunhill 7) Reebok 17) Marks & Spencer 27) Rockport 37) Blend of America 8) Nunn Bush 18) Ferragammo 28) Stacy Adams 38) Corneliani 9) Nike 19) Hasley 29) Next 39) Puma 10) Nautica 20) Elefanten 30) Tony Lama
Global Brands currently sold in India
1. Aldo 10.Lloyd 19. Fendi 2. Bally 11. Marks & Spencer 20. Dunhill 3. Clarks 12. Nike 21. Corneliani 4. Ecco 13. Nine West 22. Louis Vuitton5. Florsheim 14. New Balance 23. Valentino 6. Ferragammo 15. Reebok 24. Hugo Boss7. Geox 16. Rockport 25. Blend of America
Year 1998-99 2004-05
Sales of collections
Men 70% 61%
Women 27% 32%
Kids 3% 7%
8. Hush Puppies 17. Stacy Adams 9. Lee Cooper 18. Puma
Why India for Footwear
Raw material adequacy Best Tanning expertise Available skilled workforce Increasing capacity of the production units World class institutional support for designing & testing Changing product-mix in favor of comfort & Ladies shoes from men and formal
shoes Exports toUS has been increasing steadily in the recent past.
Labor availability
Population between 15 to 59 yrs. is about 60% 9.1 % of the population unemployed Women comprise more than 50% in footwear industry. Work force understands English Adequate social security measures are in-built Validated by low employee turnover
Exihibit-2
Labor cost & cost to the company
Monthly WagesUnskilled USD 60 - 80Skilled USD 90 – 120Cost of the Social Security Measures;Contributions as % of wages15% - 17%
Cost to the CompanyUnskilled USD 70 – 100Skilled USD 110 – 140
Design Capabilities
Most of the exporters have their own design laboratories. These are buttressed by the: Central Leather Research Institute,\ Footwear Design Development Institute, National Design Center, National Institute of Fashion Technology.
Council for Leather exports also encourages young designers by giving away awards and honorariums.
General Manufacturing Capabilities
All types of constructions – (Cemented, Moccasins, Opanka, San Crispino, Side wall stitch and Goodyear Welted),
In house manufacturing of components – Dies, Soles (leather and TR), Welts, Heels, Boxes, and Insoles are common today as compared to the past
Government’s Assistance for Infrastructure development
Government of India has several programmes to assist the Indian Leather Industry to develop, modernize and increase export of footwear in days to come.
Government is promoting a Public- Private –Partnership model for attracting foreign Direct Investments and Joint venture Partnerships.
Projected Real Growth in GDP & Income per Capita: 2005-50 (% PA)
Countries GDP in US$ terms
GDP in domestic currency or at a PPPs
GDP per capita at PPPs
Working age population
Footwear & Footwear component parks
One Footwear park under the Special Economic Zone in Chennai to house 25 production units with a capacity to produce 250,000 pairs a day is being set up near Chennai
One Footwear component park – in Chennai with a capacity to house about 20 units each is coming up to tide over the footwear component supply demands.
Footwear components Joint Ventures
Mondial, ItalySuolificio Malaspina, ItalyFagus, GermanyLammertz Industirenadel GmbH, GermanyTexon UK Limited, UKZahonero Virgili SL, Spain
INDIAN FOOTWEAR COMPONENTS INDUSTRY
The Footwear Component Industry is a segment of the Leather Industry in India. The Footwear components, which are mainly exported from India, are Leather Shoe Uppers and Leather Unit Soles. The estimated annual production capacity of Leather Shoe Uppers is 112 million pairs
The major production centers are Chennai, Ranipet, Ambur in Tamil Nadu, Agra and Delhi. The components industry has enormous opportunity for growth to cater to increasing
production of footwear of various types, both for export and domestic market. India’s export of Footwear Components touched US$ 229.49 million in 1999-2000, holding a
share of 15% in India’s total export of leather and leather products. Nearly 75% of the total
export of footwear components is from the Southern Region, followed by the Northern Region, with a share of 13%.
The major markets for Indian footwear components are the U.K., Germany, Italy, the USA, France, and Portugal. Nearly 83% of India‘s export of footwear components is to the above countries.
In the year 1999-2000, India exported footwear components to the tune of 38 million pairs mainly consisting of leather shoe uppers, leather unit soles and other components, out of which Leather shoe uppers (gents and ladies) alone constituted a share of 84%.
Export of footwear components during the last three years
(Value in million US$)
April-FebProduct 1998-99 1999-2000 2000-2001
Footwear Components 237.72 229.49 219.81
Source: DGCI & S, Calcutta
Export projections for the next two years:
(Value in million US$)
PRODUCT 2001-02 2002-03
Footwear Components 314 350
Source: Indicative Medium Term Plan
CHAPTER -3
PROFILE
OF
M&B FOOTWEAR [P] LTD.
An Introduction of M&B:M&B Footwear is one of the fastest growing companies in the Shoe business of India. Within a short span of just over a decade, M&B Footwear has grown multifold, and is the only company in India having a portfolio of several national and international brands.
The company is spearheaded by Inder Dev S. Musafir, a footwear technologist from South Fields College, Leicester (U.K); and Bhai Ajinder Singh, an MBA from North Eastern University, Boston (USA), with specialization in Marketing & Finance.The vertically integrated structure of M&B provides the support and strength to face the toughest market competition. Each department in the vertical format of M&B is a growth engine in itself, and its uniqueness lies in its structure.
Business Model
Design & Development
M&B Footwear boasts of having one of the most advanced R&D Centers for Footwear in the country. Designers trained at some of the finest design institutes such as NIFT and FDDI; work on CAD Systems to put together two major collections every year. Forecast is done not
only on design trends, but also color palates for the forthcoming seasons. The in-house R&D Center is also supported by international brand partners through exchange programs, wherein the designers from M&B regularly visit international markets, and vice versa, the designers of our international partners visit India to study the Footwear market.
Manufacturing Strength
M&B Footwear has one of the most sophisticated, state of the art manufacturing facilities in India. 5000 Pairs a day are produced from its two facilities, one each in Noida and Baddi. The Baddi Plant in Himachal Pradesh, was set up recently to avail tax benefits from the Govt. of India, since footwear as a commodity in India attracts the highest tax incidence, unlike other wearing apparel which for reasons known only to Govt. of India, are exempted from the heavy tax burden.The Company plans to increase its production capability through expansion of its manufacturing
facilities, targeting a production of 8000 Pairs a day. This additional
capacity would help in fueling the ever growing demand of the company’s existing brands, and also to improve on the current supply levels to footwear giants such as BATA and REEBOK, to whom the company is also currently supplying footwear.
Sales Channel
A dedicated professional team of Sales Managers is deployed to monitor all aspects of channel wise Sales & Distribution. The team at the Head Office is supported by Regional Sales Managers and Territory Sales executives.M&B Footwear has been able to build a vast network of distribution covering every corner of India. Brands marketed by M&B Footwear are sold in over 1000 Stores across India, including some of the top large format retail stores, such as Shoppers Stop, Lifestyle, Westside, Pyramids, Reliance, Central
and Big Bazaar. Talks are on with other large upcoming players in the retail sector, to have arrangements of private label manufacturing of ranges designed specifically for larger players. Relationship with large format retail players, give M&B the advantage of being an integral part in the growth story of every big retail group in the Indian market
Marketing StrategiesAt M&B we have a dedicated department for handling all Brand related communication. Aspects such as International image of brands, its USP, technology and consumer influence through celebrity endorsements are kept in mind while developing the Advertisements.
BRAND PORTFOLIO:
Lee Cooper® Shoes
Established in 1908 by Morris Cooper as a work wear production company, Lee Cooper is a well established brand in more than 70 countries worldwide. Known for its Apparel and Jeans wear collections, Lee Cooper was introduced as a footwear brand in India by M&B Footwear Pvt. Limited in the year 1995.Lee Cooper Footwear today is a very successful and well reputed footwear brand in the Indian market. The Lee Cooper footwear collection is available for both Men & Women, targeting the upwardly mobile and independent consumer, in the ever growing Indian market. Lee Cooper Shoes are available through more than 700 sale points, including all leading footwear and departmental stores.
M&B Footwear was recently awarded the “Best Licensee Award” for the year 2006 across all category products of Lee Cooper, throughout the world. In India, Lee Cooper shoes are recognized as the market
leader of Casual Footwear, for both Men & Women.
ID® Footwear and Spare parts
Genesis of ID:
The genesis of ID goes back to 1989, the college days of Mr.I.D.S.Musafir, when he had to submit a project report at the end of his Footwear Design & Technology course from Southfields College, U.K. For this project, he required a Brand name & after much deliberation he picked up the initials of his name i.e. ID as the brand name of shoes for his project report.
Since then it was always there at the back of his mind to launch a signature line of shoes under the brand name of ID in the Indian footwear market.
The range of ID shoes were launched in India in November 2002.ID Smart Casuals, the most striking range of footwear to hit the market in the recent time.
ID footwear and spare parts, epitomizes the aspiration and attitude of the contemporary youth and their mind set, which now more than often looks at avenues that are a bit over the edge and go beyond the other available mundane options. The spare parts collections include 'Belts & Socks' in the first phase of its launch.
GEOX - Breathes®
The Group:
Born in the 90s thanks to the inventiveness and determination of its founder Mr. Mario Moretti Polegato, the Geox group operates in the footwear and garments sectors. Its mission is to diffuse innovation, especially when it comes to creating technological solutions that ensure breath ability and impermeability.
"Our company invests heavily in research. We aim to constantly improve our products. We have 40
more patents on the sideline, just waiting to be marketed. This not only allows us to maintain our competitive advantage, but is also a promise of well-being for our consumers in the five continents."Mario Moretti Polegato
Geox, creates, produces, promotes and distributes innovative, patented products all over the world. It operates in the men’s, women’s and children’s classic, casual, sports and fashion sectors.
The Brand:
The Geox brand name comes from the Greek word geo (i.e. Earth), on which we all walk, and the letter x, which stands for the technology element.
GEOX Breathes- exclusive store, MGF Mall, Gurgaon
The origin of the Geox name speaks of the deep-rooted calling of a company born out of a revolutionary idea which has made comfort, well-being and health its corporate bastions.
Geox S.p.A. has been listed on the Italian stock exchange since December 1st, 2004.
* ACNielsen 1st half of 2004 rating** As rated by the trade magazine Shoe intelligence
Merrell®let's get outside.
The brand Merrell is owned by M/s. Wolverine World wide Inc., one of the largest footwear Companies in the world. Merrell is known for making High Performance outdoor footwear. The Wolverine Group also has other internationally acknowledged brands such as, Hush Puppy, Harley Davidson, and Sebago & Caterpillar.
Merrell Root
What began in the mountains of Utah, now roams the world. For more than 20 years, Merrell has been providing outdoor enthusiasts with quality performance footwear.
Over time, the concept of “outdoor” has broadened to include all types of activities and environments-both natural and urban. Merrell is driven to keep pace with this evolution of “The New Outdoor,” and
continues to evolve.
It’s been written that what’s important is not destination, but the journey.
THE MERRELL FIT
The standard width of Merrell Performance Footwear™ is a men's D and women's B. Merrell's custom fit system of foot beds allows modifying volume and width to fine-tune the fit of footwear. In these situations a wide (EE for men and D for women) or narrower model (B for men) may be needed.
Anaconda strapping system:
Comfortable and supportive heavyweight woven webbing wraps over, under, and around the foot for a dynamic and easy three-tug tightening that yields a custom fit.
PARTNER TECHNOLOGIES
Gore-tex Polartec Thinsulate insulation Microban Serdia by clarino Vibram
PROPRIETARY TECHNOLOGIES
Air-cushion midsole Q-formm M-chip technology Innovative sole designs
HIKING BOOT TECHNOLOGY
The insole is critical to the flex performance of Merrell boots. As the boot strikes the ground, the insole, helps stabilize the foot and keeps it from twisting on uneven terrain. Merrell uses stiffer, more stable insoles on heavy duty backpacking boots for the added stability needed to carry heavy loads on steep terrain. For these boots, Merrell uses a tapered injected-nylon insole, for day hiking and walking Merrell uses Texon insoles and spring steel shanks.
Rider® after sports footwear
Rider is the "after-sport footwear" brand of Grendene S.A Brazil. Originally created for the men’s market, this brand was born in 1986 and it keeps conquering new consumers in Brazil and abroad with men’s, women’s and kid’s lines. Rider looks to radical sports and in the outdoor activities for its inspiration to develop products that reinvent the category season after season.
This after sports category leisure footwear brand is the undisputed world leader in its category. Rider’s after-sport sandals are manufactured using cutting-edge expanded synthetic materials, injection-molding processes, and equipment and chemical compositions. The professional team of design researchers, engineers and craftsmen at Grendene S.A. combine technological advances in production and materials to create a superior quality molded-plastic product. The high quality in which the company takes exceptional pride - is exemplified in the line's smooth seams; well-defined detail; lack of bubbles or imperfections; durability; and flexible, comfortable molded-plastic fit.
M&B Footwear is in tie-up with Grendene S.A. of Brazil, to market footwear in India.
Provogue - Redefining Footwear
The Provogue fashion collections are worn and promoted by some of the most popular Bollywood Stars.
Provogue has always been seen as different from the rest of the pack of brands. Provogue’s brand statement “Redefining fashion” and its innovative merchandise have created a niche in the minds of its consumers.
Footwear is the most natural progression for a brand having an extensive presence in apparel (Lee Cooper, Tommy Hilfiger, Daks, Gap, and Guess, are apt examples)
Provogue too has recently entered the footwear segment, through an exclusive licensing agreement with M/s. M&B Footwear (P) Ltd.
Provogue footwear collection boosts of the newest trends, both in the dress and casual fashion segment.
Prorogue Shoes are available at all Provogue Studios, Walk-in-M&B Shoe Stores and select Departmental Stores.
Firangi
An in-house brand of M&B Footwear, marketing only imported collections with the latest trends, brought to the door steps of the Indian consumers simultaneously, as they are launched in the world markets.
The Firangi collection of Women’s footwear is exclusively available at the “Walk in M&B” Stores.
Quality Policy
M & B FOOTWEAR [P] LTD. is committed to be the market leaders in the field of Footwear industry through:
Exceeding our customer’s expectations by providing world class quality products with timely deliveries and prompt services
Adhering to all the international standards & internal norms for producing quality products using best technology & through continual improvement and effectiveness of its Quality Management Systems
Providing a Quality culture to keep the employees motivated to work towards achieving company’s goals.
Providing a congenial working environment for all the employees.
BUSINESS VENTURES:
Walk in M&B
Retail in India has recently emerged as the fastest growing industry, with everybody wanting to have the biggest footprint throughout the Indian sub-continent. M&B Footwear has moved in quickly to capture the retail landscape of India, thus giving it a first mover advantage on its competitors.
Walk in M&B, the retail project of M&B Footwear (P) Ltd., is one of the country's most aggressively expanding footwear retail chains. Located at all the premium shopping destinations including malls and high street, Walk in M&B is a platform for selling exclusive international and national brands to the fashion and brand conscious urban customer. It is an effort to bring the world's most sought after footwear brands under one roof and provide the customers a world class shopping experience. These lifestyle showrooms are splashed with brand colours and attract the most envious footfalls everywhere. These stores operate under the retail format of company owned stores, stand alone franchisee stores and shop-in-shops.
The Penetration:
Walk in M&B, in a very short span of time, has penetrated the market with its 27 exclusive stores that are already operational in cities like New Delhi, Mumbai, Bangalore, Pune, Ahmedabad, Lucknow, Ludhiana, Indore, Gurgaon, Noida, Ghaziabad, Agra, Surat, Calicut, Chandigarh and Kanpur. Apart from these exclusive Stores, Walk in M&B Shop-in-Shops are also being opened inside large format Departmental Stores such as Central, Shoppers Stop, Pyramids, Pantaloon and Westside. 7 such Shop-in-shops are already operational.
Future Plan:
Walk in M&B is currently on an expansion spree and plans to open 125 such stores/shop-in-shops across the country by the year 2010.
Shop-in-Shops
India is going through a revolution in the Retail industry. A product of this is the growth of international standard Departmental Stores. Many such chains are opening shop in the coming years (e.g. Central (Pantaloon), Reliance, Lifestyle, Shoppers Stop, Westside, Pyramids etc.).
Footwear remains to be an important product category in such large format departmental stores. M&B Footwear Pvt. Ltd. through its relationship with these chains has forayed into the concept of Shop-in-shops inside Departmental Stores.
The strategy works for both business partners, as for the Departmental Stores, they get an expert operator to run the footwear section, and as for M&B Footwear, it gives an opportunity to communicate the brand values through direct interaction with the consumers, apart from getting the advantage of high footfalls already being achieved by the Departmental Stores because of their own popularity.
Shop-in-Shops Currently Operational:
Central - Bangalore, Hyderabad, Pune and Vadodara [Coming soon at Gurgaon, Goregaon-Mumbai] Pantaloon - Mumbai, Vadodara, Ahemdabad
Exclusive Brand Stores
M&B Factory Direct
This format of retailing is based on a no frills concept, wherein consumers derives maximum advantage through value discounts on premium footwear brands. The concept is targeted towards the consumer, who is at the threshold of being introduced to branded products, however, does not want to pay the full price. The layout of the Stores is very customer friendly, and based on self service module.
50 of these Factory Direct Stores are already operational, and the plan is to take the number up to 125 by the year 2010
Leather Sales
M&B Footwear is in exclusive arrangement for marketing with some of the leading tanneries of Brazil to market their leathers in India. Through this venture M&B Footwear hopes to cater to the ever increasing demand of the Indian market for imported leathers. M&B is importing all types of leathers in the wet blue, crust and finished stages and the same are available of the shelf from our warehouse situated at Noida, which are climatically controlled to maintain the right atmosphere to store these leathers.
Institutional Sales
India is passing through an era of awareness in all facets of lifestyle and business.The growing demand of compliance to international standards has fueled the need for technical footwear in the Institutional business arena. Foreseeing this growing trend, M&B has successfully capitalized of its technical capabilities and brand popularity, and set up a complete department to capture a sizable chunk of the Institutional sales market.M&B Footwear is proud of being associated to some of the most prestigious names in the Institutional business:1. BATA India Ltd.2. Bharat Aluminium Co. Ltd.3. British Council Division4. DELPHI5. Denso India Ltd. 6. GAIL INDIA, Agra 7. GAIL INDIA, Jaipur 8. GAIL INDIA, Nasirabad 9. IFFCO – Phulpur10. ONGC Ltd. Pondicherry11. Orissa Power Power Generation12. NPCIL Kaiga 13. NPCIL Narora 14. NPCIL Tarapur 15. REEBOK India Ltd. 16. Tata Chemicals17. TI Cycles of India18. Titan Industries29. U. N. Mission20. Yamaha Motors
M&B in News:Finding his feet in retail
Inder Dev Singh Musafir of M&B Footwear is all set to open an all-India
chain of stores for branded shoes
Inder Dev Singh Musafir may have taken his poet and politician grandfather’s pen name as his surname, but he has gone down a very different path. Educated and trained in the shoes business in England, he has built M&B Footwear, a casual footwear company, from scratch to Rs 100 crore turnovers in 14 years. Now, he aims to take his company to the next level by building an exclusive retailing network for M&B products. “Our focus area is the segment of footwear for Rs 1,000 and above, which is currently only a Rs 250-
crore market (3.1 per cent of the overall footwear market), but is ready for rapid growth,” he says, adding, “Branding is due to become a big factor in footwear business.”
Musafir wants to reduce the dependence on margin-sapping trade to 25 per cent in four years from the
present 65 per cent and raise revenues from M&B’s own retail stores to 75 per cent.
To meet this target, he is rolling out his own retail network, which is a combination of his own stores, branded as M&B Walk In, a chain of seconds stores —M&B Factory Direct— and shop-in-shop outlets in other large stores such as Westside, Pyramid and
Shoppers’ Stop. To make exclusive retailing feasible, he is also building a portfolio of brands.
Five-pronged strategy for growth
License known brands for manufacture and distribution. Import low-end shoes and brand them. Set up own retail chain for regular and discounted products, in addition to distribution through
trade channels. Buy shops in malls and on high street, and let others operate the stores on revenue-sharing
basis. Ride piggyback on large retail chains by setting up ‘shop-in-ship’ on revenue-sharing basis.
Since mid-2005, he has put together a network of 22 M&B Walk In shops, 32 M&B Factory Direct outlets and five shop-in-shop stores. His target is to have a total of 125 Walk In and shop-in-shop and 100 discount stores by 2010.
Interestingly, Musafir does not staff and operate his Walk In stores. Instead, he stocks the stores and gives them to others to staff and operate on a revenue-sharing basis. Similarly, his shop-in-shop deals involve retailing M&B brands in exclusive zones on a revenue-sharing basis.
“I expect the big retail chains to grow fast and I am tying up with them to grow,” he says.
For a long period, from 1995 to 2005, Musafir dealt with only Lee Cooper. Now, he has expanded his portfolio to include five more brands — Rider, Geox, Provogue (licensed brands), and ID and Firangi (own brands). He also plans to sign up more brands to widen M&B’s offering. M&B’s six brands straddle a broad price range of Rs 500 to Rs 9,000. Today, Lee Cooper contributes only 40 per cent of the company’s revenues while ID is the second largest contributor with 15 per cent.
Musafir acknowledges that he needs more money to implement his strategy, and he is willing to offer up to 15 per cent of his company to a large retail chain that will also buy his merchandise. “Tying one’s fortune with a giant retailer is like buying an insurance policy and growth fund combo,” he quips.
M&B to diversify into apparel
M&B will now get into the casual wear segment. They will also retail apparel and accessories including belts,
caps, socks and wallets,” said Inder Dev Singh Musafir, director, M&B.
M&B footwear to dilute 1/4th stake
The company intends to invest around Rs 90 crore for setting up 250 stores across India by 2010.
M&B to open 250 outlets by 2010
Inder Dev S Musafir, Director of M&B Footwear, said here that the company would open 100 stores by 2008
and take it to 250 stores by 2010.
CHAPTER – 4
PROJECT ANLYSIS
& FINDINGS
MEDIA VEHICLES USED BY DIFFERENT FOOTWEAR SEGMENTS: (Exhibit-3)
**FW – FOOTWEAR**ELITE FOOTWEARS WHOSE PRICE RANGE IS ABOVE Rs 9,000**PREMIUM FOOTWEARS WHOSE PRICE RANGE IS BETWEEN Rs 4000-9000**UPPER ECONOMY FOOTWEARS WHOSE PRICE RANGE IS BETWEEN Rs 3000-4000**Database advertisement means sending information through e-mailers/ SMS/ telephone call.
% OF MEDIA VEHICLES USED
MEDIA VEHICLES ELITE(7) PREMIUM(16) UPPER ECONOMY(14)
TV ADVERTISEMENT 1 4 1
MAGAZINES 7 13 4
NEWSPAPER 0 3 1
DATABASE 7 16 12
MEDIA VEHICLES ELITE FW PREMIUM FW UPPER ECONOMY FW
TV ADVERTISEMENTS 6% 11% 6%
MAGAZINES 47% 37% 22%
NEWS PAPERS 8% 6%
MEDIA VEHICLES USED BY DIFFERENT BRANDS:(Exihibit-4)
ANALYTICAL POINTS:
In Elite segments, none of them focus on Newspaper, only one brand focus on TV advertisement.
In Premium segments, less focus on Newspaper, major focus is on the Magazines and Database.
In Upper Economy segments too, less focus on Newspaper, major focus is on the Magazines and Database.
PRIME PRODUCT OF DIFFERENT SEGMENTS: (Exihibit-5)
Analytical PointIn all the segments none of the brand has its origin from Accessories Only one brand has its origin from luggage bags i.e. Samsonite in premium footwear
PRIME PRODUCTS ELITE FW (7) PREMIUM FW(16) UPPER ECONOMY FW (14)
FOOTWEARS 5 10 5
ACCESSORIES
APPARELS 2 5 9
DIVERSIFICATION FROM PRIME PRODUCT TO OTHER PRODUCT: (Exihibit-6)
Analytical Point: In Elite Segment 2 brands have diversified from apparels to footwear In Premium Segment only 4 brands have diversified from footwear to apparels and No one has diversified from footwear to apparels including these three segments. In Upper Economy Segment only 2 brands have made no diversification
Diversification Fields ELITE FW(7) PREMIUM FW(16) UPPER ECONOMY FW(14)
APPARELS 4
FOOTWEAR 2 6 9
ACESSORIES 5 1 3
(Exihibit-7)Elite Segment:
(Exihibit-8)Premium Segment:
(Exihibit-9)Upper Economy Segment:
AVAILABILITY OF THE SEGMENTS: (Exihibit-10)
AVAILABILITY OF THE BRANDS ELITE SEGMENT
PREMIUM SEGMENT
UPPER ECONOMY SEGMENT
EXCLUSIVE SHOWROOMS 3 7 12
MBOs 4 6
EXCLUSIVE SHOWROOMS & MBOs 3 2
%OF AVAILABILITY OF THE SEGMENTS
AVAILABILITY OF THE BRANDS
ELITE SEGMENT
PREMIUM SEGMENT
UPPER ECONOMY SEGMENT
EXCLUSIVE SHOWROOMS 43% 44% 86%MBOs 57% 37% EXCLUSIVE SHOWROOMS & MBOs 19% 14%
ANALYTICAL POINTIn Elite Segment no brand is available both in exclusive and MBO. In Upper Economy Segment no brand is available in MBOs.
AVAILABILITY OF THE BRANDS: (Exihibit-11)
ZMAIN ATTRIBUTES OF THE DIFFERENT FOOTWEAR SEGMENTS:(Exihibit-12)
MAIN ATTRIBUTES OF THE DIFFERENT FOOTWEAR SEGMENTS:
MAIN ATTRIBUTESELITE SEGMENT
PREMIUM SEGMENT
UPPER ECONOMY SEGMENT
BRAND IMAGE 7 11 3FASHIONABLE & STYLISH 7 16 6QUALITY & DURABILITY 7 16 14COMFORT 7 16 14PRICE RANGE 3TECHONOLOGY 5TOTAL 28 64 40
MAIN ATTRIBUTESELITE SEGMENT
PREMIUM SEGMENT
UPPER ECONOMY SEGMENT
BRAND IMAGE 25% 17% 8%
FASHIONABLE & STYLISH 25% 25% 15%
QUALITY & DURABILITY 25% 25%
COMFORT 25% 25% 35%
MAIN ATTRIBUTES OF THE DIFFERENT FOOTWEAR BRANDS:
(Exihibit-13)
Analytical PointsIn Elite segment they are not looking for the price range and technology. In Premium segment too they are not looking for the price range. In Upper Economy segment they are not focusing on technology aspects.
AVERAGE PRICE RANGE FOR DIFFERENT SEGMENTS: (Exihibit-14)
ANALYTICAL POINTIn Elite Segment no brand is having its average price range less than Rs10,000 In Premium Segment no brand is having its average price range less than Rs3500 and more than Rs7000In Upper Economy Segment no brand having its average price range more than Rs3000
AVERAGE PRICE RANGE
ELITE SEGMENT
PREMIUM SEGMENT
UPPER ECONOMY SEGMENT
Rs20,000 - 30,000 2
Rs15,000 - 25,000 4
Rs10,000 - 15,000 1
Rs6000 - 7000 1
Rs5000 - 7000 2
Rs4000 - 5000 2
Rs3500 - 4500 4
Rs3000 - 4000 5
Rs2500 - 3500 2
Rs2000 - 3000
AVEREGE PRICE RANGE FOR THE DIFFERENT BRANDS: (Exihibit-15)
ATTRACTION TOWARDS DIFFERENT SEGMENTS: (Exihibit-16)
ELEMENTS OF ATTRACTION
ELITE SEGMENT(7)
PREMIUM SEGMENT(16)
UPPER ECONOMY SEGMENT(14)
VARIETY OF COLLECTION 50% 26% 15%
BETTER SERVICE 50% 34% 35%
DISCOUNTS 6% 15%
AFTER SALE
ANALYTICAL POINT
In Elite segment the customers don't look for discounts.
ELEMENTS OF ATTRACTION
ELITE SEGMENT(7)
PREMIUM SEGMENT(16)
UPPER ECONOMY SEGMENT(14)
VARIETY OF COLLECTION 7 12 6BETTER SERVICE 7 16 14DISCOUNTS 3 6AFTER SALE SERVICE 16 14TOTAL 14 47 40
ATTRACTION TOWARDS DIFFERENT BRANDS: (Exihibit-17)
SEGMENTS USED BY DIFFERENT CATEGORY OF PEOPLE: (Exihibit-18)
Analytical PointsIN Elite segment Students are not targeted.
CATEGORY OF PEOPLE ELITE PREMIUM UPPER ECONOMY
ENTREPRENEURS 7 16 11
WORKING PROFESSIONALS 1 16 13
STUDENTS 5 5
CATEGORY OF PEOPLE ELITE PREMIUM
UPPER ECONOMY
ENTREPRENEURS 88% 43% 38%
WORKING PROFESSIONALS 12% 43% 45%
BRANDS USED BY DIFFERENT CATEGORY OF PEOPLE: (Exihibit-19)
TARGETED AGE GROUP BY DIFFERENT SEGMENTS: (Exihibit-20)
AGE GROUP ELITE PREMIUM UPPER ECONOMY4 - 14 YEARS 4 415 - 25 YEARS 1 6 1425 - 40 YEARS 7 16 14MORE THAN 40 YEARS 7 16 14Total 15 42 46
AGE GROUP ELITE PREMIUM UPPER ECONOMY4 - 14 YEARS 0% 10% 10%15 - 25 YEARS 6% 14% 30%25 - 40 YEARS 47% 38% 30%MORE THAN 40 YEARS 47% 38% 30%
Analytical PointIn Elite segment Kids are not targeted
TARGETED AGE GROUP BY DIFFERENT BRANDS: (Exihibit-21)
Targeted Customers by Different Segments: (Exihibit-22)
TARGETED CUSTOMERS
ELITE SEGMENTS
PREMIUM SEGMENTS
UPPER ECONOMY SEGMENTS
MEN 7 14 13WOMEN 7 10 14KIDS 0 4 5TOTAL 14 28 32
Analytical PointIn Elite segment they are not focusing on Kids
TARGETED CUSTOMERS
ELITE SEGMENTS
PREMIUM SEGMENTS
UPPER ECONOMY SEGMENTS
MEN 50% 50% 41%
WOMEN 50% 36% 44%
KIDS 4% 15%
TARGETED AGE GROUP BY DIFFERENT BRANDS: (Exihibit-23)
PER DAY FOOTFALL AND ITS CONVERSION RATIO (BRAND WISE): (Exihibit-24)
ELITE SEGMENT
BRANDS 3 TO 5 5 TO 10 40 TO 50ALDO 45%
VALENTINO 50%
ESCADA 50%
JUST CAVALLI 75%
CNC 5%
EXTE 5%
GE FFERE 15%
PREMIUM SEGMENT (Exihibit-25)
BRANDS 1 TO 5 5 TO 10 10 TO 15 15 TO 20 20 TO 25 25 TO 30 50 TO 60
GEOX 35%MERRELL 20%FLORSHEIM 50%EGLE 40%HOMME 30%WOODLAND 60%ROCKPORT 40%CAT 30%SAMSONITE 25%NINEWEST 40%DA-VINCHI 30%LACOSTE 30%SISLEY 20%GUESS 20%
GANT 15%MANGO 25%
UPPER ECONOMY SEGMENT (Exihibit-26)
CHAPTER- 5
SWOT ANALYSIS
SUMMARY & SUGGESTIONS
SWOT Analysis of the Indian leather industry
Opportunities
Rising potential in the domestic market
Growing fashion consciousness globally
Use of information technology and decision
support software to help eliminate the length of
the production cycle for different products
Use of e-commerce in direct marketing
Strengths
High Growth
Ready availability of highly skilled and
cheap manpower
Large raw material base
Policy initiatives taken by the
Government
Capability to assimilate new
technologies and handle large projects
1 . C o n t i n
u o u s
e m p h a s
i s o n
p r o d u c t
d e v e l o p
m e n t
a n d
d e s i g n
u p g r a d
a t i o n
Weaknesses
Lack of warehousing support from the
government
International price fluctuation
Threats
1 . M a j o r
p a r t o f
t h e
i n d u s t r y
i s
u n o rg a n i s
e d
2 . L i m i t e d
s c o p e f o r
m o b i l i s i n
g f u n d s
t h r o u g h
p r i v a t e
p l a c e m e n t
s a n d
p u b l i c
i s s u e s
( m a n y
b u s i n e s s e
s a r e
f a m i l y -
o w n e d )
3 . D i f f i c u l t y
i n
o b t a i n i n g
b a n k
SUMMARY
Introduction part of the report portrays the importance of footwear industry, giving brief
account on, world and Indian footwear scenario; this explains about the demand & Production
capacities of footwear.
The report gives brief introduction of marketing strategy and trends regarding P&L
brands. It also explains about the type of marketing strategy is followed by different Footwear
companies for their P&L brands.
During my summer project I spent two and half months in Delhi. Basically my project was
based on market research. I was not even working for the brands of M&B Footwear (Geox,
Merrell). My study was all about a general market overview and trends of Premium & luxurious
footwear brands. I studied almost 37 brands of P&L brands. I divided these P&L brands into three
sub groups:
1. Elite Segment,
2. Premium Segment and
3. Upper Economy Segment
I visited around 94 stores of different kinds of P&L brands and collected the data
regarding my project. These stores were situated in different region of Delhi. I divided these
regions according to my convenience. I took an interview of store managers and company
representatives. Even I took a personal interview of no. of customers also. I selected convenient
sampling as a type of sample. My project was based on NCR & Delhi, NCR includes Gurgaon and
Noida region.
After collecting the data from different resources I prepared my project in last 15 days of
my project period of time. I submitted one copy of my project in corporate office of M&B in Delhi
in 20th June 2008.
SUGGESTIONS
If we can observe the overall management performance of the M&B Footwear [P] Ltd. We can say
that during last ten years it achieves a great achievement in footwear segment. Instead of that I would
like to recommend some suggestions, which may be useful to maximize the market shares in P&L
brands. M&B deals with Geox & Merrell which come into P&L brands and my suggestions are based
on the information which I collected during my project:
M&B should make people aware about technology which is used in Geox & Merrell.
M&B should try to give the advertisement in TV channels such as MTV, AAJ TAK, and
NDTV etc. Although my research findings shows that footwear companies are not more
focusing in this area; apart from that, it might be useful for M&B because other companies are
not using it as a promotional campaign.
They should give the clipping in website such as Yahoo, Rediffmail, and Hotmail etc.
Although my research findings shows that footwear companies are not more focusing in this
area; apart from that, it might be useful for M&B because other companies are not using it as
a promotional campaign.
They should try to focus more on Database advertisement.
They should try to get tie up with some popular apparel such as Van Huesen, Levis, Dockers,
Next, Gant etc. because these brands are launching their footwear also.
M&B should try to diversify into other sector such as apparels and accessories because
diversification is known as a growing trend in present footwear market scenario.
M&B should try to focus on brand promotion through fashion show and sponsorship (Sports
activity, Movie & Serial).
CONCLUSION
M&B Footwear is one of the fastest growing companies in the Shoe business of India. Within a short span of time or just over a decade, M&B Footwear has grown multifold, and is the only company in India having a portfolio of several national and international brands.
The vertically integrated structure of M&B provides the support and strength to face the toughest market competition. Each department in the vertical format of M&B is a growth engine in itself, and its uniqueness lies in its structure.
My project was based on the market research for Premium & Luxurious Footwear brands and M&B also deals with Geox & Merrell which come under P&L brands. I prepared my report on the basis of information which I collected during my project. The duration of the project was almost two and half months. In between this period of time I got a very good experience in M&B such as corporate culture & affairs, Marketing and sales policy how to work in pressure. The most important thing which I learnt here is 6 th
Ps of marketing i.e. PACE (Innovation) which is known as an important element in footwear industry. During my project I interacted with different company’s showroom managers and try to observe the market scenario and modern trends in footwear industry.
I got life time experience in M&B during my project because in a very short span of time I learnt several things which are not possible to get even in one or two years. Now I think, I have become more aware with marketing & sales aspects of any product.
BIBILIOGRAPHY
REFERENCES:
Ten Deadly Marketing sins: Philip Kotler
Marketing Insights A to Z Philip Kotler
Magazines:
Business Today More
USP Branding
Lifestyle
Cosmopolitan
Brand Image
WEBSITES:
www.mbfootwear.com
www.geox.com
www.merrell.com
QUESTIONNAIRE
Appendix
QUESTIONNAIRES:
For Showroom/Retail Outlet:
Market Research: On Premium & Luxury Footwear Brands
Name of Respondent: _________________________________________
Title: ___________________ Company (Brand):______________________
Address: ______________________________________________________ General Questions
Q.1 Which are the Premium & Luxury Brands (Footwear) being represented by you?2) Acme 2) Aldo 3) Bally 4) Clarks 5) Ecco 6) Ferragammo 7) Florsheim 8) Gabor 9) Geox 10) Hush Puppies 11) Mango 12) Marks & Spence 13)
Merrell 14) New Balance 15) Nine West 15) Nike 16) Reebok 17) Rockport 18) Salamander 19) Stacy Adams 20) Any other P & L brands_____
Q2. Brands belong to which country? a) b) c) d)
Q3. Availability of the brands?
a) Exclusive Showrooms b) MBOs c) Shopping Malls d) Departmental Stores/Hyper Market Q.4 What are the special attributes in these brands?
Q5. Which aspirational brands do you intend to further add to your brand portfolio? (MBOs) _____________________________________________________________ Q6. What is the prime product line for the company/brand? (Tick it)
Brands
International Brand (Image)
Fashionable/ Stylish/Latest Design
Quality
&
Durability
Comfort Technology Price
Others/Remarks
Brands Footwear Apparel Others
Marketing
1. What media vehicles/options are used to launch the new collections? a) TV advertisements b) Hoardings & Postures c) Magazines and newspapers d) Internet advertisements e) Others____________________________ 2. What is being done by the company/brand for making their product Packaging Attractive?
a) b) c)
Customers1. Targeted customer profile? (Tick it)
Brands Occupation Socio-economic category
Age Group Targeted Customers
Entrepreneurs Middle Class 4-14yrs Men
Working Professionals
Upper Middle Class 15-25yrs Women
Students Upper Class 25-40yrs Kids
Others_________
More than 40 yrs
2. Customer Preference (Just tick it out)
Men Formals Semi Formals
Casuals Sports
Women Sandals (work wear)
High Heels Fancy Chappals
Shoes (Court Shoe/Formal)
Colours Red Black Brown OthersKids Cartoons
CharactersColourful Combination
Free Gifts Others
Purchaser Single MultiplePreference Price Range
Less than 5000 5000-7000 7000-9000 More than 9000
Payment By Cash By CardVariety of Cards Platinum Gold SilverCards Belongs to ICICI HDFC SBI Any other
3. What makes the customers attract towards the different brands?
a) Variety of collections (brands) b) Better service c) Discount schemes d) After sale service e) Others
4. What are the freebies being offered to the customers either by company or your retail outlet?
a) b) c) d)
5. Have you ever come across the loyal customers, who are consistently using the same Brand? Please mention few such brands? ________________________________________
6. Have you ever converted any customer into other brands, if yes, mostly in which brand ___________________ 7. What is your company’s customer redressal policy? a) Refund Cash b) Minor repairs c) Offer alternative pair d) Credit note e) Instant Replacement f) Others ______________ Sales
1. What are the averages MRP for the brands?
Brands 3000-5000 5000-7000
7000-9000 9000-11000 11000-13000
Others
Men
Brands 2000-4000 4000-5500
5500-7000 7000-8500 8500-10000 Others
Women
Brands1500-3000 3000-
45004500-6000 6000-7500 7500-8000 Others
Kids
2. Average footfall per day _________________ Conversion %_________
3. (a) How many articles do you have of these brands?Name of the Brands
No. of Articles
Men
Women Kids
1.2.3.4.5.6.7.8.
(B)
4. Which are the peak months for the sale?
a) January - March b) April - June c) July- September d) October- December
5. How much retail margin do you get on MRP? a) b) c) d)
6. .How many pairs do you sell every month (Approx)? ________________________
Can we have company representative contact details, please? So that we may have the details about the future plans of brand. Name & Title:Phone no. : E-mail :Address:
Brands Out of Conversion%
Category Formals Casuals Sports
Men
Women
General Questions for (CR):
1. How much amount do you spend in brand promotion? (CR)a) b)
2. Which method is most suitable for your company to enter into other nations?(CR)
a) Licensing b) franchising c) export d) joint ventures e) Others
Is Asian market different from European market? How? (CR) 3. No. of stores (including exclusive showroom)? ______________
City wise No. of Stores Abroad No. of StoresDelhi/NCRKolkataMumbaiChennaiBangaloreAhmedabadJaipurOthers______________
4. Point of origin of the merchandiser? ______________________________________________________
5. What is your future planning regarding your brand/company?
6. Supply chain arrangement of the brand is to you through? a) By Road b) by Train c) by Air d) by Ship e) Others
7. Which logistic company do you prefer for supply chain management?
8. What is the origin (place) of the merchandise/ Where is the production unit of the brand? ______________________________________________________
9. What is the tag/punch line of these brands?a) b) c) d)
10. Who is the Brand Ambassador of the products/brands?
11. Whether Company does the pre-launch market survey/ test marketing before launching the product/brand? Yes/No If Yes, how
_________________________________________________________________
12. What is being done by the company/brand to perform consistently according to new market trends?
___________________________________________________________________
13. What is being done by the company/brand for making their product Packaging attractive?
a) b) c)
14. What are the freebies being offered to the customers either by company or your retail outlet? a) b) c) d)
For Customers:
Market Research: On Premium & Luxury Footwear Brands
Name of Respondent: ________________________________ Age: __________
Sex: ________ Occupation: _______________Marital Status: _______________
Q. 1 Which are your most preferred options for:
Q.2 What influence you to buy aforesaid Footwear Brands (Tick the most appropriate):a) Brand image b)Attractive & innovative design c) status symbold) Used by icon personality (Brand Ambassador) e)To make you a part of high profile society
g) Any other____________________________
Q.3.What kind of services or facilities do you expect from the above shopping points? b) Variety of collections (brands) b)Friendly behaviour c) Discount
d) After sales service e) International shopping experience f) ambience f) Others_______________________
1.Club Memberships
2.Weekend places
3.Hotels/Restaurants
4.TV Channels
5.Cinema Halls
6.Apparel Brands
7. No. of tentative pairs in your wardrobe (Brands)
8. Footwear Brands
9. Shopping Places Exclusive Showroom
MBOs Shopping Mall
Departmental Store
Others
10. Shopping for
Footwear
Monthly Quarterly Half yearly Yearly
11.Shopping Amount 5000-10000 10000-15000 15000-20000 More than