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    RESEARCH PROJECT ON SERVIS SHOES INDUSTRY

    AN OVER VIEWervice Group is well known for its consumerproducts and its contribution to the diversifiedindustrial growth of the country. The group has

    its headquarters at Lahore, factories located atGujrat and Muridke. It operates two modern shoefactories. The Gujrat factory was setup in 1964 andMuridke factory commenced production in 1989. Thetwo factories are producing the following products:

    S

    All categories of leather footwear and sportsshoes.

    Canvas shoes of Men, Women and Children.

    Rubber Sandals and Sleepers.

    Safety shoes and Footwear for defense force.

    Bicycle tiers and tubes.

    Car tires and tubes.

    Motorcycle tires and tubes.

    The companys brand SERVIS is a house hold namein Paksitan. The company is also the largest exporterof footwear from Pakistan and has maintained itsNo.1

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    Position in exports and has won FPCCI trophy forbest export performance six times. The factories have

    a workforce of over 5000 employees.

    Service footwear are available throughout Pakistan at

    fixed price through a chain of 258 retail storesand 15 wholesale depots run by Servis SalesCorporation Lahore (Pvt.) Ltd. Its staff providesexcellent service to the consumer at these stores. In

    addition to companys own retail stores, thousands ofshoe dealers/stockiest are selling Service shoes in thecountry.

    Service has been a trendsetter in footwear fashion inPaksitan. It introduced colorful joggers for the first

    time in Pakistan in early eighties. Its cheetah brandshoes are very popular for sports as well as for casual

    wear. Don Carlos brand shoes reflect latestfashion trend in formal and casual wear. Productinnovation has been as important part of CompanysMarketing Strategy.New products range is offered twice a year, at thebeginning of summer and winter seasons.

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    BRIEF HISTORY OF THEORGANIZATION

    n the year 1941, three young friends like CH.Nazar Mohammed,Ch.Mohammad

    Hussain from Gujrat district and Mr.Mohammad Saeed from Gujranwala District,fresh college graduates started business art a smallscale at Lahore. Within years their businessflourished and they were making business in everycorner to India at the time of partition. Although thecompany suffered losses on account of outstandingpayments for the supplies made on the other side ofborder yet the company had to search for new

    markets. The directors of the company were notdiscouraged and thy continued their honest effortsand worked with dedication and with the help of

    ALLAH the business expanded. At this stage theyhad to search new site for installation for theirinstallation of the factories in Gujrat.

    I

    In this connection the first step was taken and

    Hillal Tanneries was built in Gujrat, which startedfunctioning in year 1954. Ten years later the shoefactory i.e. Service Industries Limited, G.T. Road,Gujrat followed by a Textile Mill was also built inGujrat.

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    This was in addition to the shoe factory, the companyhad already in Lahore. This organization was thenbuilt in most organized and scientific manner openingits own wholesale outlets and their retail shops all

    over the country enabling the consumers to buyshoes at fixed prices, which was contrary to the tradepractices at thatTime in the country. This was appreciated by theConsumers. The company then started to enter in the

    Export market realizing that the country was in needofForeign Exchange.

    The exports were made on quality anddelivery at theright time basis which increased every year and thesame trend continued. The Govt. appreciated theefforts for the first time in 1968 and awardedServices Industries President export Trophy Class-1 inthe same year.

    Since then the company is the largest exporter

    of foot wear in Pakistan. The company wasagain awarded the pride of performance Trophy bythe Pakistan Chamber of Commerce and Industries in1977 and is continuing to get FPCC Export trophy.Their auto tier and tube unit was also set up in theyear 1988.

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    SERVICE GROUP OFINDUSTRIES

    Service group of industries consists of followingcompanies:

    Service Industries Ltd. (SIL)

    Shoe Factory Gujrat.

    Shoe Factory Muridke.

    Tier and Tube Project Gujrat

    RAG Division Muridke.

    Dare-Salaam Textile Mills Limited.

    The Hilal Tanneries Ltd.

    Prestige Industries (Pvt.) Ltd.

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    REGISTERED ACCOUNTANTS

    Service House, 2-Main Gulberg, Lahore-54662Phone No: 5751990-96Fax No. 5710593,05712109,5711827

    SHARE REGISTRAR

    Soft Link (Pvt.) LimitedWings Arcade, 1-K (Commercial) model town,Lahore.

    Phone No: 5839180-82Fax No: 5837061

    FACTORIES

    G.T Road Gujrat.

    Muridke-Sheikhupura Road, Muridke.

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    Source: Companys Annual Report.

    COMPANYS MISSION

    ission statement of acompany states thathow a company sees itself.

    Mission of Service Industries Limited, isto Satisfy its customers by providingquality & reasonable priced footwearsand other products throughout the

    country, and to satisfy its employeesthrough good management.

    M

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    COMPANYS OBJECTIVES

    Our products should meet thecustomer expectations.

    Our basic concern is to satisfycustomer.

    Our aim is to provide good job opportunities andsatisfaction to people.

    We should respect our competitors.

    Employees are as important as externalcustomers.

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    Teamwork and cooperation area more importantthan individual action.

    Never be satisfied with the level of quality,always strive for continuous improvement.

    No compromise on quality.

    SERVIS SHOES INDUSTRY

    TARGER MARKET

    At the beginning, target market of SIL forfootwear was gents of all classes.

    But it is also focusing on children andladies.

    So, we can say that target market of SILfor footwear is the whole country.

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    Some foreign countries are also targetmarket of SIL for footwear.

    Normally, the target market of servis is themiddle income and high income people ofcountry.

    BRAND DECISION

    Branding decision is one of the important decisions.SIL has branded its products by the name of

    servis.the company has introduced another brandname of Prestige in the year 1985.These two brands are used to differentiate in thetarget market. Servisis a high priced brand whileprestige is low priced brand.

    STYLE AND DESIGNS DECISION

    Some companies stand out for design distinctiveness.SiL is also one of them because it has its own stylesand designs. In SIL the styles and designs are made,with the help of local purchase officers who areresponsible for making new designs.

    PRICE DECISION

    In servis industry Ltd the prices are set independentlywith partial consideration of BATA. It has only oneprice throughout the country. Company has some B

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    pair shops in the country, which sell the shoes atlower prices. The B pair shops only deal in outdatedand rejected shoes of the company.

    DISTRIBUTION DECISION

    There are generally three channels of distributionwhich are adopted by SSC

    Producer___________________Buyer

    Producer_______Retailer_________Buyer

    Producer____Wholeseller____Retailer___Buyer

    There are 15 wholesale shops and 258 retail shops of servis throughout

    the country. Besides these there are thousands private stockiest in

    country.

    ORGANIZATION SETUP

    o achieve gigantic results, business should be ina complete organized structure. In other words

    we can say that there should exist a completecoordination between employer and employee both ahorizontal and vertical level. More especially we say

    that a company should be so organized that everyone in the company has a thoroughknowledge of who is to do what and who

    T

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    is responsible of what. Thereshould not be anyconfusion and complication among authority andresponsibility.

    Service Industries (Pvt.) Ltd. Just only performsthe manufacturing activities at Gujrat and Muridke,whereas selling activities are performed throughService sales Corporation, which is also a member ofService Group of Industries. Service Sales Corporationhas its 258 retail outlets in whole of the country forselling activities of service group on industries andevery person has complete knowledge about his/herduties and responsibilities. Therefore we can say that

    service group of industries has strong organizationsetup which is key element of its success.

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    Managing Director

    Retail Manager

    Wholesale ManagerExport Manager

    Production Manager

    Finance Manager

    Personnel Manager

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    DIRECTOR ACCOUNT

    & FINANCE

    Account Deptt.Finance /Export /Import

    Deptt.

    Manager Accounts

    Asstt. Manager

    Account

    Asstt. Manager

    Account

    Account

    Assistant

    Data Entry

    Operator

    Computer

    Operator

    Office Assistant

    Manager finance

    exports

    Assistant

    Exports

    Assistant

    Imports

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    SHOESSHOES

    LizaLiza

    Don CarlosDon Carlos

    TozToz

    SkoozSkooz

    CalzaCalza

    CheetahCheetah

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    Liza shoes are most famous among ladies. There are 108 designs init. It minimum pries is 250 and maximum price is 750.

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    Toz refers to child shoes. In it 2_5 range is called youth range,

    7_10 range is called child range and 11_12 range is called boy

    range. Its price is between 150 to 450.

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    RESEARCH PROJECT ON SERVIS SHOES INDUSTRY

    Calza is the top article among servis shoes. There are differentcategories in it like

    o Calza 26

    o Calza +6

    o Calza 6

    o Calza 7

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    Cheetah is also very famous brand of servis. There are 35 designs

    in it. Its price is between 700 to 1595.

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    COMPETITORS

    On the basis of business size and volume, major competitor of SSC

    is Bata. Others include Milli, Starlet, Hush Pappies, English shoes,

    Roots but they are to be considered small scale.

    Bata started its business in 1984. The Companys headquartersare officially located in Toronto under the leadership ofThomas J Bata. Bata operates 63 companies in variousindustries but footwear remains the core business with 60million pairs sold per year in more than 30 countries. Thereare 20 wholesale shops and 414 retail shops of Bata inPakistan.

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    BATA

    SHOESBATASHOES

    Bubble gummersBubble gummers

    Power Power

    Marie ClaireMarie Claire

    North Star North Star

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    UNIVERSITY OF THE PUNJAB, GUJRANWALA CAMPUS

    REPORT

    WRITING

    DEDUCTION

    OBSERVATION

    PROBLEM

    DEFINITOION

    THEORATICAL

    FRAM WORKHYPOTHESIS

    RESEARCH

    DESIGN

    DATA ANALYSIS,

    INTERPRETATION

    PRILIMENARYDATA

    COLLECTION

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    four different types of problems that is facing by the SSC. These are as

    follow

    Already existing problem

    Situation requiring improvement

    Conceptual problems

    Empirical answers

    ALREADY EXISTING PROBLEM

    We observe that management and outlets of Servis shoe industry is facing

    problem of decreasing number of customers day by day. Companys annual

    report also shows that company net profit ratio is decreasing as compare to

    previous years.

    YEARS NET PROFIT(%)

    1999 1.58

    2000 1.55

    2001 2.91

    2002 1.84

    2003 0.34

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    0

    0.5

    1

    1.5

    2

    2.5

    3

    3.5

    1999 2000 2001 2002 2003

    NET PROFIT

    SITUATION REQUIRING IMPROVEMENT

    We also observe that servis market share as compare to Bata and other shoe

    manufacturers are low. Newspapers also show that servis share value is less

    than Bata. People are not very much interested to invest in servis. This is the

    situation that management wants to improve.

    COMPANY PERCANTAGE

    SERVIS 5%

    BATA 6%

    OTHERS 89%

    Here the purpose of our research studies to find out the ways to increase the

    market share of SSC.

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    CONCEPTUAL PROBLEMS

    During interviewing with people we observe that there is wrong conceptamong people that Servis always charge very huge price even more than its

    quality this is the wrong concept which company wants to solve.

    EMPIRICAL ANSWERS

    Servis current market share is 5% and company wants to improve it. We are

    going to conduct research on servis and at the end our research report will

    depict what strategies the company should adopt to increase its marker

    share.

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    PRELIMINARY DATA COLLECTION

    As the preliminary data gathering is concerned, firstly we visited the

    Servis and Bata outlets frequently and then Servis head office and collected

    some information about the Company which we already discussed above.

    Shop managers of both Servis and Bata also told us about articles and prices

    of shoes with which they are dealing. The details of which is as follow:

    SERVIS SHOES RATES AND DESIGNS

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    LEATHER CHAPELS

    Category DESIGNS PRICE(MAX) PRICE(MIN) PRICE(AVG)

    GENTS 33 450 139 275PVC-

    LADIES

    10 89 59 75

    PVC-

    GENTS

    7 109 99 105

    We also get a lot of information from inter net. After due verification, we

    have come to know that Servis shoe industry has some problems like

    declining customer ratio etc. After collecting necessary data we developed

    two short questionnaires. The purpose of two questionnaires is to check

    Internal consistency and to derive real factors involving contributing in

    problem. First questionnaire consists upon general questions about shoe

    industry through which we able to find independent, moderating and

    intervening variables involved in real problem. Second questionnaire only

    consists upon questions relating to Servis Company and we use it just for

    data analysis.

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    THEORETICAL FRAMEWORK

    A theoretical framework discusses the interrelationship among the variables

    that are deemed to be integral to the dynamic of the situation being

    investigated. A theoretical framework is a conceptual model how this theory

    can make the relationship among the several factors that have been identified

    as important to the problem. In short words we can say theoretical

    framework identified and labeled the variables clearly.

    VARIABLES

    A variable is any thing that can take on differing or varying values. The

    values can differ at varies time for the same object or person, or the same

    time different objects or persons.

    The identification of key variables is very important in every research study.

    In this project we find following different types of variables,

    Dependent variable

    Independent variable

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    Moderating variable

    Intervening variable

    DEPENDENT VARIABLE

    A dependent variable is the variable of primary interest to the researcher.

    Dependent variable is the main variable that lends itself as a variable issue

    for investigation. Through the analysis of the dependent variable it is

    possible to find answer of the solution to the problem.

    In this study the dependent variable is Declining market share of Servis

    due to competitors it depends upon certain other variables.

    INDEPENDENT VARIABLE

    An independent variable is one that influences dependent variables, either in

    positive or negative way. That is, when the independent variable is present

    the dependent variable is also present, and with the each unit of increase in

    the independent variable, there is an increase or decrease in the dependent

    variable also. In this study there are many independent variables. Some of

    which are as follows

    Price

    Quality

    Access To Outlets

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    CUT

    PRICESALES

    ON LINE

    PURCHASE

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    GENERATION OF HYPOTHESIS

    A formal statement/proposition is generated which may be approved or

    disapproved.

    Hypothesis is logically conjectured relationship between two or more

    variables expressing the form of testable statements. By testing the

    hypothesis and confirming the conjectured relationship, it is expressed as

    that the solution can be found to correct the problem encountered.

    Here we develop these Hypotheses between dependent and

    independent variables

    Ho: There is no relationship between Price and Customer

    Ratio

    HA: The Price affects the Customer ratio

    Ho: There is no relationship between the Quality of shoes and

    Customer ratio

    HA: Better the Quality more the Customer ratio

    Ho: There is no relationship between Easy Access and

    Customer ratio

    HA: People will go to the nearer shoe shop.

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    Ho: Advertisement does not Affect the Customer ratio

    HA: More the Advertisement more the Customer ratio

    Ho: Special incentives do not attract the people towards

    Company

    HA: Special incentives attract the people very much

    Ho: Discount does not play role to increase customer ratio.

    HA: Discount attracts the people very much.

    Ho: There is no relationship between salesmen attitude and Customer

    ratio.

    HA: There is relationship between salesmen attitude and Customerratio.

    Ho: Shoes according to fashion are not necessary to increase sale.

    HA: Fashion plays vital role to increase sale volume.

    Ho: Attractive designs are not necessary to rise customer ratio.

    HA: Designs attract are necessary to rise customer ratio.

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    Secondary Sources

    PERSONAL INTERVIEWS

    TALKING WITH MANAGEMENT

    QUESTIONNAIRE

    QUESTIONNAIRE DESIGN

    One of the most important methods for the purpose of data collection is

    questionnaire design. A questionnaire is a formalized set of questions for

    obtaining the required information from the respondents. It is also one of the

    most critical stages in survey research process. A research survey is only as

    good as the questions it asks. We made two questionnaires for this survey,

    one is use for general public and other is use for only Servis shoes

    customers. There are two types of the questions in our questionnaires.

    A.OPEN ENDED QUESTIONS

    Open-ended questions mean such a questions, which have no pre-existing

    answers in which the respondent will have to answer but these are asked and

    respondent gives answer in his own words.

    B. CLOSE ENDED QUESTIONS

    In close-ended questions the answers are pre-existing and

    respondent give answers in the categories available.

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    INTERVIEWS DESIGN

    For this research study the data have also been collected through interviews.

    There are mainly two types of interviews as well:

    A. Structured Interviews

    B. Unstructured Interviews

    STRUCTURED INTERVIEWS

    A structured interview means that in which the persons are carefully selected

    for interview and a structured questionnaire is prepared to record the

    response from the respondents.

    UNSTRUCTURED INTERVIEWS

    In kind of unstructured interviews, there is not any kind of interviews

    prepared and no specific persons are selected for the interview.

    In order to conduct this research study both kind of interviews have been

    used for collecting information. From the very start unstructured interviews

    were conducted from the customers and local shops mangers of SSC and

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    SAMPLING METHODS

    Sampling is the technique for drawing the samples from the population for

    statistical analysis in an integral part of the research process.

    Following are the different techniques adopted to draw samples from

    population in this project.

    A. Probability Sampling

    B. Non-probability Sampling

    PROBABILITY SAMPLING

    A sampling design which is based upon the concept of random selection. A

    sampling technique where every member of population have known and

    equal chances of selection. There are different types of probability sampling

    but we choose among them area sampling as per the requirements of our

    project.

    AREA SAMPLING

    For the searching of our variable of interest we fill our

    questionnaire from those area where Servis shops are situated. We

    collect information from following areas of Gujranwala city.

    G.T Road Gujranwala

    Satellite Town Gujranwala

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    Urdu Bazar Gujranwala

    College Road Gujranwala

    Saad Nagri Bazar Gujranwala

    People colony Gujranwala

    Gujranwala Cant

    NON-PROBABILITY SAMPLING

    In non_prabability sampling there is not equal chance of selection of each

    element of population. Under this head we select Quota sampling for

    selection of variables of interest.

    QUOTA SAMPLING

    There are 4 registered outlets and 2 cut price shops of Servis in our city

    and we fill 25 questionnaires from each shop for better searching offactors contributing in the problem.

    MEASUREMENT OF MEASURES

    Measurement of the variables in the theoretical is an integral part of

    research. For the purpose of measurement, all the variables must be first

    operationally defined.

    SCALE

    A scale is a tool or mechanism by which individuals are distinguished on the

    variables of interest to this study. Following are different types of scales:

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    a) Nominal Scale

    b) Ordinal Scale

    c) Interval Scale

    d) Ratio Scale

    a) NOMINAL SCALE

    A nominal scale is one that allows a researcher to assign numbers tocertain categories or groups. In this scale the data is categorized into two

    mutually exclusive and collectively exhaustive groups. Nominal scale gives

    basic information about variables.

    b) ORDINAL SCALE

    An ordinal scale is not only categorized the variables in such a way

    that it not only denotes qualitative difference among the various categories

    but it also rank order the preference in some meaningful way. The

    preference would be ranked and numbered. In ordinal scale we use median,

    range, percentile ranking etc.

    c) INTERVAL SCALE

    Interval scale allows us to perform certain arithmetical operations on

    the data and information collected from the respondents. By using the

    interval scale, we can easily compare two things by their interval or distance.

    It measures central tendency, mean, and measure of dispersion, standard

    deviation and variance.

    d) RATIO SCALE

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    Ratio scale starts form zero. Ratio scale has absolute rather than

    relative measures. The measure of central tendency of the ratio scale could

    be either the arithmetic mean or the geometric mean and the measure of

    dispersion could be either the standard deviation or variance or the co-

    efficient of the variance.

    Mathematical and statistical Analysis

    Types of

    Scale

    Numerical

    operation

    Descriptive Statistics Test of

    Significance

    Nominal

    scale

    Counting Frequency in category

    %age..Mode

    Chi-Square

    Ordinal

    scale

    Rank ordering Median, Range,

    Percentile Ranking

    Rank order

    Correlation

    Internal

    scale

    Arithmetic

    operations on

    interval between

    numbers

    Mean ,

    Standard

    Deviation,

    variance and

    coefficient of

    variation

    T.test

    Z.test

    Ratio

    scale

    Arithmetic

    operations on

    actual quantities

    Arithmetic mean,

    Geometric mean,

    Coefficient of variance,

    standard deviation

    T.test

    Z.test

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    In this study, the nominal scale has been used and we used

    percentages to see the response of respondents.

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    DATA ANALYSIS

    We have collected scientific data from general people, outlets managers by

    personnel interviews and questionnaires and also the literary survey (annual

    report) of SSC. After that we have analyzed the data by using statistical tools

    i.e. averages, percentages, correlation and proper graphical presentation of

    data has been applied.

    DATA ANALYSIS TECHNIQUE

    We use following techniques for data analysis

    AVERAGES

    PERCENTAGES

    CHARTS AND GRAPHS

    CORRELATION

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    ANALYSIS OF DATA COLLECTED THROUGHANALYSIS OF DATA COLLECTED THROUGH

    QUESTIONAIREQUESTIONAIRE

    Question 1: Which company shoes do you like to wear mostly?

    SCHEDULE

    Views

    Servis 28%

    Bata 30%Hush Pappies 5%

    Others 37%

    GRAPHICAL PRESENTATION

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    Price 14%

    GRAPHICAL PRESENTATION

    40%

    20%

    26%

    14%

    0%

    10%

    20%

    30%

    40%

    Quality Brand Design Price

    INTERPRETATION

    After taking the response from respondents, it has been found that 40%

    people purchase Servis shoes due to its better quality, 26% people buy shoes

    due to better designs, 20% people give preference to its products due to its

    good image and very few people like 14% consider that high price means

    high quality and buy Servis shoes due to price factor.

    Question 4: "How much you satisfy with servis fix price

    policy?

    SCHEDULE

    Views Percentage

    Strongly satisfy 8%

    Satisfy 18%

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    Percentage 27% 51% 22%

    GRAPHICAL PRESENTATION

    27%

    51%

    22%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    Always Sometime Never

    INTERPRETATION

    Through our survey from general people we found that 27% people

    are those who say that servis shoes price is always up to its quality, 51%

    customers say that sometime shoes do not fulfill our expectations and only

    22% respondents say that company always charge more than its price.

    Question 7: Does servis always fulfills the seasonalrequirements?

    SCHEDULE:

    Response Yes No

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    Percentage 63% 37%

    GRAPHICAL PRESENTATION

    63%

    37%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    Yes No

    INTERPRETATION:

    We found that 63% people agree that company always fulfills the

    seasonal requirements and only 43% are those who oppose it.

    Question 8: Do you think that Servis shoes designs as compare to

    other shoes are?

    SCHEDULE

    Views Percentage

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    No 41%

    GRAPHICAL PRESENTATION

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    Yes No

    INTERPRETATION

    The above analysis shows that 59 % people say that Servis

    advertisements always attract them but only 41% people say that company

    advertisements are not always attractive.

    Question 11: Do you think that Servis shoes are mostly available for?

    SCHEDULE

    Views Percentage

    Children 26%

    Women 20%

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    Men 54%

    GRAPHICAL PRESENTATION

    26%

    20%

    54%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    Childre

    n

    Wome

    nMe

    n

    INTERPRETATION

    The answer shows that mostly users of Servis products are men and

    there is little charm for women and children in Servis. More than 50%

    customers of Servis are men, women are 20% and children are 26%.

    Question 12: The attitude of Servis outlets employees is?

    SCHEDULE

    Views

    Very Good 26%

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    Sometime 28%

    For once 42%

    ignored 20%

    GRAPHICAL PRESENTATION

    10%

    28%

    42%

    20%

    0%

    10%

    20%

    30%

    40%

    50%

    Always Sometime For once Ignored

    INTERPRETATION

    The field study about our research project shows that 20% of the

    respondents say that shops employees always ignore their complains,42%

    say that only once their complains are considered and 38% are those who

    say that mostly their complains are considered.

    Question 14: Are Servis shoes outlets offering you reasonable discount

    on purchase?

    SCHEDULE

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    Yes 73%

    No 27%

    GRAPHICAL PRESENTATION

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    Yes No

    Yes No

    INTERPRETATION

    The above analysis shows that 73% people have easy excess to Servis

    outlets and 27% people have not easy excess to Servis outlets.

    Question 17:Are Servis shoes outlets offer you cut price sale facility at

    special occasions?

    SCHEDULE

    Views

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    Yes 32%

    No 68%

    GRAPHICAL PRESENTATION

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    Yes No

    INTERPRETATION

    The above analysis shows that 68 % people say that Servis company

    does not offer cut price sale facility at special occasions and 32% people say

    that company offer that at special occasions.

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    After collecting the data, analysis is made and it has been found that the

    main factors that are causing the decline in market share of Servis as

    following:

    Most of the customers are not willing with Servis high fix price

    policy and due to which they mostly purchase shoes of local and

    chines companies like English shoes, Mili shoes, Star shoes etc.

    Mostly SSC does not provide discount on purchasing and due to this

    reason its sale volume is decreasing.

    There are 52% women in our total population and there are few

    designs in shoes for ladies and due to this there is little charm for

    ladies in Servis. This is also a main reason for declining number of

    customers of Servis.

    SSC returns the complained shoes within three weeks which is

    lengthy period that creates the bad image of company in the mind of

    customers.

    Servis prices are high as compare to Bata due to which people prefer

    Bata shoes because both companies shoes have mostly same quality.

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    OPPORTUNITIES

    There is room for SSC to open more outlets in

    country.

    Company can produce low price products in order

    to capture the lower class that can increase its

    sale.

    Company can open its outlets in other countries.

    THREATS

    SSC has threat from its domestic rivals like Bata.

    Inflation is also a fearful threat for SSC.

    Due to WTO more foreign companies can enter in

    country and can become competitors of SSC.

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    There is little charm of Servis among ladies. Company can get maximum

    attention of females if company open separate outlets only for ladies with

    maximum Varity. In this way Servis can also get competitive edge on Bata

    because Bata also has not Separate shops for ladies.

    Establishment of new outletsThere are only 258 registered outlets of Servis in Pakistan. Companyshould open more outlets for the convenience of customers.

    Frequent meetings with distributors

    Company should do frequent meetings with distributors in order to get

    knowledge about their problems and customers demands and needs.

    Opening shops in big plazas

    Servis should open its shops in big plazas like pace, Al_Marjan, Citi Center

    etc because here the company can sell its expensive range easily.

    Innovation in designs

    As compare to local and chines shoes Servis designs are not very well. SSC

    should make its designs as per the requirements of general public.

    Early settlement of claims

    SSC settles its shoe claims in three weeks which is a lengthy period. It

    would be appropriate to give the authority of this settlement to shops

    managers because customers satisfaction enhances the corporate image.

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    Establishment of sales promotion institutions

    Servis Company should open sale promotion offices in big cities likeLahore, Karachi, Multan, Rawalpindi, Gujranwala, Sargoda, Faisalabad etc.

    these institutions will help to promote the sale volume of SSC.

    Regular market surveys

    Regular market surveys and targeted researches of different brands should

    be undertaken, especially of articles with high sales. These surveys can not

    only help the designers in new product designing but can also be invaluable

    for to the planning department for prediction of future sale.

    Encouragement of dealers

    To encourage the dealers, a sort of competition should be started like the dealers who

    give the maximum sales within minimum outstanding and is practically No.1 inrespective time period should be given gifts like motorcycle etc.

    Exhibitions

    Arrange events and exhibitions for the public, which tells the feature of

    Servis Company and give them gifts.

    Cut price sales

    At special occasions like Eids company should conduct cut price sales in

    order to attract maximum customers.

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    www.Servis.com

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