vkc
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A study on effectiveness of V.K.C. Slipons India PVT. Ltd., among retailersTRANSCRIPT
CONTENTS
Chapter - I INTRODUCTION Page No.
1-1 Introduction to study 61-2 Limitation 9
Chapter – II Industry Profile Page No.2-1 History of footwear 112-2 Over view of the Indian footwear
industry13
2-3 Indian footwear components industry 14
Chapter – III Company Profile Page No.3-1 Profile of VKC Group of companies. 163-2 Profile of Slipons India PVT Ltd. 193-3 Organization Structure 213-4 Board of Directors 22
Chapter – IV Department Analysis Page No.4-1 Production Department 244-2 Marketing Department 284-3 Financing Department 37
Chapter – V Page No.Companies Under VKC 39
Conclusion 41
Bibliography 43
INTRODUCTION
1.1 INTRODUCTION TO STUDY:-
Footwear is estimated to have started its long history of human use
during the Ice age some 5 million years ago. Unkind weather conditions are
said to have created the necessity of the footwear. Other evidences show that
footwear came to use at end of the Paleolithic period, at about the same time
the early humans learned the art of leather training.
Early pieces of footwear were made of wrappings, usually made of
leather or dried grasses. Later on pieces were developed for an oval piece of
leather which is bound by a piece of strong leather throngs. Sandals which
are first crafted footwear are the successors to these wrappings.
In Egyptian funeral chamber’s, paintings show the different stages in
the preparation of leather and footwear. The images also show that in Egypt,
footwear depicted power and class.
The pharaoh’s sandals were distinguished by the turn up toes, a
characteristic which is missing in the commoner’s footwear. The images also
show that in Egypt footwear depicted power and class.
The Egyptian sandals were crafted using straw, papyrus or palm fiber.
Later on Egyptian women adorned their footwear with precious stones and
jewels.
Footwear is demanded by all income group people. Middle and lower
income group prefer low cost, durable, wear and tear resistant footwear that
can be used in all type of domestic condition whereas high income group
prefer fashion oriented footwear.
V.K.C footwear is preferred by all income groups. Vee key cee
footwear has low cost, wearing comfort and high durability and which can
be used in all season especially in rainy season.
Vee key cee is one of the most popular brands among chappals. It
already introduced several brands and models of foot wears. The product
segment of veekesy satisfies customers of all age group .There are
fashionable models for teenagers.
The study is mainly aimed at the overall performance of the company
which includes the study on department. We have made a through study on
individual departmental such as production, marketing, & finance etc.
1.2 Limitations:-
Time period is very short
The area of coverage has been limited to one district
Some of the retailer’s are reluctant to disclose some details in spite
of their busy schedule
There may be error due to respondent’s basis
INDUSTRY PROFILE
2.1 HISTORY OF FOOTWEARS:-
Spanish cave drawings from more than 15,000 years ago show
humans with animal skins or furs wrapped around their feet. The body of a
well-preserved “ice-man” nearly 5,000 years old wears leather foot
coverings stuffed with straw. Shoes, in some form or another, have been
around for a very long time. The evolution of foot coverings, from the sandal
to present-day athletic shoes that are marvels of engineering, continues even
today as we find new materials with which to cover our feet.
Has the shoe really changed that much though? We are, in fact, still
wearing sandals – the oldest crafted foot covering known to us. Moccasins
are still readily available in the form of the loafer. In fact, many of the shoes
we wear today can be traced back to another era. The Cuban heel may have
been named for the dance craze of the 1920s, but the shape can be seen long
before that time. Platform soles, which are one of the most recognisable
features of footwear in the 1970s and 1990s were handed down to us from
16th century chopines. Then, high soles were a necessity to keep the feet off
of the dirty streets. Today, they are worn strictly for fashion’s sake. The
poulaine, with its ridiculously long toes is not that different from the winkle-
pickers worn in the 1960s.
If one can deduce that basic shoe shapes have evolved only so much,
it is necessary to discover why this has happened. It is surely not due to a
lack of imagination – the colours and materials of shoes today demonstrate
that. Looking at shoes from different parts of the world, one can see
undeniable similarities. While the Venetians were wearing the chopine, the
Japanese balanced on high-soled wooden shoes called get. Though the shape
is slightly different, the idea remains the same. The Venetians had no contact
with the Japanese, so it is not a case of imitation. Even the mystical Chinese
practice of foot binding has been copied (though to a lesser extent) in our
culture. Some European women and men of the past bound their feet with
tape and squashed them into too-tight shoes. In fact, a survey from the early
1990s reported that 88 percent of American women wear shoes that are too
small!
As one examines footwear history, both in the West and in other parts
of the world, the similarities are apparent. Though the shoemakers of the
past never would have thought to pair a sandal with a platform sole, our shoe
fashions of today are, for the most part, modernised adaptations of past
styles.
2.2 OVERVIEW OF THE INDIAN FOOTWEAR INDUSTRY
The foot wear industry is a significant segment of the leather industry
in India. India ranks second among the footwear producing countries next to
the China.
In 1999, the global import of footwear 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.
India’s exports of leather footwear touched US $ 331 million in 1999-
2000, recording an increase of 3.29% over the proceeding year. India thus
holds a share of 1.25% in the global import of leather footwear.
The major markets were the UK, USA, France, Italy, Russia etc.
In 1999-2000, export of leather footwear from India contributes 21%
share of its total export of leather and its products. Nearly 33 million pairs
of various types of leather footwear were exported during the year. It
includes dress shoes, casuals, sport shoes, etc.
2.3 INDIAN FOOTWEAR COMPONENTS INDUSTRY
The footwear component industry is a segment of leather industry in
India. The footwear component which are mainly exported from India are
leather shoe uppers and leather unit soles. The estimated annual production
capacity of leather shoe upper’s is 112 million pairs. The major production
centers are Chennai, Ranipet, Agra, Tamilnadu etc.
The component industry has enormous opportunities for growth to
cater to increasing production of footwear of various types, both for export
and domestic market.
Nearly 75% of the total export of footwear component is from the
southern region followed by northern region with a share of 13%.
Nearly 83% of the India’s export of footwear component is from the
UK, Germany, Italy, USA, France and Portugal.
In the year 1999-2000, India exported footwear components tune of
38 million on pairs mainly consisting of leather shoe uppers, unit soles etc.
COMPANY PROFILE
3.1 PROFILE OF VKC GROUP OF COMPANIES
“VKC group of companies are the leading footwear manufactures
especially in southern region of India. The group established on August 17,
1984 with its Administrative office at Calicut, with a nominal capital and
limited number of employees. In 1984 the founder of the group Mr.V.K.C
Mammed Koya started a Hawai sheet manufacturing unit with his two
brothers. Later on Hawai straps were also inducted to the production line and
in 1986 VKC group launched the first product with its own brand name in
the market viz. VKC Hawai with an initial production of 600 pairs per day.
By 1989 the production increased to 5000 pairs per day and by 1996 it
jumped to 17000 pairs
In1987 Mr.V.K.C Mammed Koya, with some of his friends, initiated and
started the first RPVC footwear manufacturing unit in the Malabar area of
Kerala State. This product also got very good acceptance in the market. The
success of the Hawai chappal unit and the RPVC unit gave a green signal to
the business community and the vast potential was realized by the various
industrialists in the footwear industry. This has resulted in a rapid change in
the footwear industry scenario and within years the number of Rubber and
RPVC unit grew to more than 80in this area.
In 1994 the group ventured the first unit in Kerala to manufacture
footwear from virgin PVC. This resulted in a rapid change in footwear
manufacture and the multinational brands who were predominant in the
Kerala market felt competitions from the local brand.
In 1998 the group started the first Micro Cellular PVC footwear in
Kerala with imported plant and machinery. “Consistent quality at affordable
price” made the VKC groups products popular in the market day by day.
The success in the Kerala market gave morale boost to the group to market
their products in the other Southern states.
In 2001, the group started the first Air Injected PVC DIP footwear
manufacturing unit in the South India. In 2003 the group commissioned the
first Injected EVA manufacturing unit in South Central India. In 2006 the
group started backward integration and started the first EVA Compounding
plant in the South Central India. The 2007, the group started manufacturing
PU DIP footwear.
During this period young and challenging entrepreneurs having high
academic qualification and with technical, commercial and practical
knowledge were inducted. The group now consists of 20 working Directors
and 60 share over 19 units. Annual group turnover stands at Rs 700 million.
As on date more than 1000 employees are working in these units.
The company had achieved a unchallenging position in the footwear
market of India. The main markets, which are concentrated by the company,
are Kerala, Tamilnadu and Karnataka. Coupled with quality and
innumerable models of VKC products, in all segments of footwear, help the
companies to face the market competition. The company has been able to
maintain the quality of the products by adopting foreign technologies. The
group is now looking for further avenues in the field of footwear to expand
their horizons.
3.2PROFILE OF SLIPONS INDIA PVT.LTD
M/s Slipons India Pvt.Ltd. is a group company of renowned VKC
Group. It is registered as private limited company and incorporated on
28.10.2002 under the Companies Act, 1956. The commercial production of
the company was started on 01.09.2003
The Company is located on the side of National Highway 17 at
Valiyaparamba, Thalappara and 30Kms away from Calicut City. It has got
55 Cent of land and building measuring an area of 10,000 square feet.
The founder of M/s Slipons India Pvt. Ltd Mr. V.K.C.MAMMED
KOYA. The management of the company now consist five Directors. The
Chairman of the company Mr. V Abdul Razak is a post graduate in Business
Administration having more than 15 years experience in footwear
manufacturing including project implementation. The executive Director Mr.
V.P.Azeez is a technocrat with more than 15 years experience in Rubber and
Plastic industry. Another Director Mr. M.V. Venugopal is a Charted
Accountant.
M/s Sliopns India Private Limited is the first company in South India
for the manufacture of EVA Footwear with injection technology. The
Company adopts Italian Technology of manufacturing of Injected EVA
footwear and is associated with M/s Ottagalli Businaro, Italy. Annual
Production Capacity including the licensed agreement is 3.2lakh pairs. The
product group consists of as season Ladies .Gents, Boys and Children
footwear with full EVA, EVA sole with PVC upper and EVA sole with
synthetic leather upper.
The company market EVA footwear under the brand name of “slip-
ons” and brand is synonymous with EVA footwear. The aggressive
marketing techniques adopted by the company through various media
coupled with consistent quality of the product at affordable price opened
new era of light weight footwear in Kerala market replacing conventional
products and other well established brand in this segment. Apart from Kerala
the company has a good market for their product Middle East countries also.
The company keeps an eye on the ever changing trends of the
footwear market and introduces innovative models and concepts in EVA
footwear so as to be the leader in this segment.
All affairs and day-to-day business administration of the firm is vested
in the hands of Boards of Director. They are in charge of various activities
like Production, Finance& Marketing. The board is assisted by qualified
administration staffs.
3.3 Organization structure.
Chairma
Board of Directors
Executive Director
Personal Production Finance &Administration
Marketing
Supervisor Accountant Office Assistant
Channels ofDistribution
SalesPromotion
Advertisement MarketResearch
3.4 Board of Directors
Chairman : VKC Mammed Koya
Managing Director : Mr. V. Mohammed Kutty
Executive Director : Mr. V. Abdul Rasheed.
Director : Mr. V. Jamshad.
There are five administrative staffs including an accountant in the
company.
SkilledLabours
Semi SkilledLabours
Un SkilledLabours
The total number of worker’s in this unit is 42
DEPARTMENT ANALYSIS
4.1 PRODUCTION DEPARTMENT
Production department is responsible for the production of goods and
services in the organization .The production process of VKC group of
company can be understood from the following diagram.
a) Production process
Production Process
EVA Compound Synthetic Leather
b) Machinery used
EVA Injection Moulding Machine
Blending Machine
PVC Mixer
Cooling unit
Compressors
PVC Raw Material
Blending Mixing
Cutting
Injection Moulding ProcessInjection Moulding Process
Stitching
Semi Finished Footwear Finishing Show fitting & Riveting
Finishing
Printing Assembling
Packing
Finished Footwear
Dispatch
Quality Checking
PVC Injection Moulding Machine
Generator
Clicker
Pressing Machine
Packing Conveyor
Stitching Machine
c) PACKING PROCESS
Trimming Process
Conveyor System
Upper & Sole Cleaning
Tag Fitting
Packing into Small Carton
Fixing Size & Price Sticker in Small Carton
Packing into master Carton
Final Check up in Pairs, Art No., Size & Price
Box Strapping
4.2 MARKETTING DEPARTMENT
“Marketing is the management process responsible for the identifying,
anticipating and satisfying consumers’ requirements profitable”.
To be the best product in the market company is giving importance to
the following.
BRAND NAME : The brand name used for the product is “Slipons”.
SLOGAN : “Lighter than you imagine”.
QUALITY : Quality of the product is the main marketing technique
that the company used.
ADVERTISING : The Company treats the advertising as the main mode
of marketing to improve the sales of their products.
SCHEMES : One of the main marketing techniques of the company
is the different Schemes for their customers and dealers.
WHOLSALERS MEET: The Company conducts the Wholesalers Meet at
least once in a year. By this the company provides an opportunity to the
wholesalers to interact with the company and between the dealers. This
helps to identify problems, sort out differences, and to formulate plans for
future improvement in the market.
ORDER TAKING & COLLECTION: The Company executives are directly
taking the orders from the wholesalers.
DELIVERY SYSTEM: The Company has very good system for the supply
of the products to the wholesalers. The company had provided door delivery
system and they are fixed a weekly chart for the supply.
THE MARKETING TECHNIQUES USED ARE:
A) CHANNELS OF DISTRIBUTION
B) SALES PROMOTION
C) ADVERTISING
D) MARKET RESEARCH
A) CHANNELS OF DISTRIBUTION:
Channel of distribution is the set of marketing intermediaries through
which the goods flow from the producer to consumer.
The company had provided the door delivery system to the
wholesalers for the distribution of products through their owned vehicles and
through the different transporters.
The Channel of Distribution followed by the Company is:
Manufacture
Wholesaler
Retailers
The company adopts a two level distribution system consisting of
Wholesale dealer and Retail dealer. The company is satisfied with the
existing arrangements.
B) SALES PROMOTION:
Sales promotion plays a major role for the success of the VKC
products. Sales promotion influences the customers for buying the products
and also helps to meet competition. It popularizes the product so as to
stimulate demand.
Sales promotion tools used are:
CONSUMERS PROMOTION
COUPONS
DEMONSTRATION
CONTEST
PRICE OFFER
Consumers
DEALER PROMOTION
SALES CONTEST
DEALER GIFT
TURNOVER ALLOWANCE
C) ADVERTISING & SCHEMES:
The VKC’s Advertising covers all activities connected with giving of
publicity regarding goods and services offered for sale.
The main Medias for advertising are: Indoor Media & Outdoor Media
INDOOR MEDIA
TV CHANNELS
NEWS PAPERS
MAGAZINES
CATALOGUES, DANGLERS, CALENDERS, & STICKERS
OUTDOOR MEDIA
NAME BOARDS & A BOARDS
HOARDINGS
TV CHANNELS:
Advertisements of the products of the company are given in all the
major TV channels in Malayalam. The Brand Ambassadors for the product
is Cine Artist and Models “Lakshmi Rathan, Raji, Aaru Nayar, Baby Sooraj
and Silpa”.
SCHEMES:
The company is providing different schemes for customers, retailers
and wholesalers during seasons. This helps the company to gets the good
results in sales and publicity.
The company had already undertaken various schemes and contests
like:
VKC Sammanotsavam
Mathrubhumi – VKC perdition contest (Football World Cup 2006)
D) MARKET RESEARCH
Market research helps in analyzing the buyer’s habits, popularity of a
product, and effectiveness of advertising media. It also helps to collect
information about marketing problems and opportunities.
The continuous marketing research has been conducted by the
company which helps them in planning and executing marketing strategies
for the future course of action.
THE PILLARS IN THE PATH OF SUCCESS OF THE FIRM is
1. FOREIGN TECHNOLOGIES:
The main advantage of the company is the implementation of Italian
technology used by them for the injection moulding process. Moulding
process is the main activity and the key process of manufacturing of quality
footwear.
The Company purchases Footwear Mould from Ital, Taiwan and
China. This will help the company to ensure high quality with accurate size
and good finish to the product.
2. EMPLOYEES OF THE FIRM:
The Company always maintains good employer-employee
relationship. The employees are well satisfied with the attitude of the
management towards them and in the facilities provided to them. So there
were no labour strikes, labour absenteeism and labour resignation.
The company provides excellent training programs for the employees
to improve the skills and productivity with in a lesser time. The employees
are getting the statutory benefits like Bonus, ES scheme, Employees
Provident Fund, Festival Holiday Allowances from the company.
3. QUALITY OF THE PRODUCT:
Quality can be viewed as a weapon for competitive advantage, as a
means of profitability and a source of value for customers, investment in
quality achieves desired business results. Quality derives the productivity
machine and leads the firm to prosperity.
Quality of Slipons product is the combined effort and cooperation of
the entire organization. Quality Management of VKC involves quality
planning, quality control and quality improvement which are cross
functional in nature.
The company has to face keen competition in the market since there
are numbers of footwear’s manufactures in the country. The main factor,
which determines sales, is the quality of the products. The company
produces good quality products and hence they are capable of competing
with others. M/s Slipons India PVT. Ltd. Has succeeded in withstanding
stiff competition from the parallel manufactures because of the superior
quality of their products at reasonable price.
4. ADVERTISING & MARKETING:
The advertisement of VKC’s product is of news of information
concerning an ideas, services or products to induce action which is suitable
with the intent of the advertiser.
The advertisement given is based on the new trends in the market and
which are highly attractive by the customer.
“Marketing is the process of providing the right product of the right
quality in the right quantity in the right place at the right time”.
4.3 FINANCE DEPARTMENT:-
VKC maintains a separate finance department under the super vision
of finance manager who is assisted by the assistant manager and his
subordinates .The section handles all the financial aspect of the firm.
All transactions are handled through computerized transactions. All
the transactions are done by tally.
COMPANIES UNDER V.K.C
1. VKC Rubber Industries PVT Ltd:-
This is the first hawai manufacturing unit of the vee key cee group
located at kolathara. They are producing the hawai chappals under the brand
name ‘VKC Hawai’
2. Turbo Rubber Industries:-
The industry is located at Alappuzha District. The intention of
management is to satisfy the needs of people in the southern region of
kerala. This unit is also producing hawai chappals.
3. Vee Key Cee Polymers Private limited:-
During the rainy season there will be less demand for the hawai
chappals. As a result of this they entered the filed of producing plastic foot
wears .This unit is located at Ramanattukara in Calicut District. They are
manufacturing plastic foot wears.
4.VeeKey Cee Plastomers India private limited:-
The unit producing hawai chappals is located at Coimbatore. The
management of organization is trying to capture the market out of the state
also. That is why one unit was established in the state of Tamilnadu
5.Fortune Elastomers PVT Ltd
This unit is producing synthetic upper leather footwear. It is located at
kolathara. This shows the ability of management in diversifying its products.
6.Veekesy Elastomers private Limited:-
This unit is also producing synthetic upper leather footwear.
7. M/s SANDLON TECHNOLOGIES PVT. LTD
8. M/s VIMSONS RUBBER PVT. LTD.
9. M/s CALIFER POLYMERS PVT. LTD.
10. M/s FORMOSA SHOE COMPANY PVT. LTD.
11. M/s EMERALD PLASTOMERS PVT. LTD.
12. M/s SLIPONS INDIA PVT. LTD.
13. M/s DIADORA SHOES PVT. LTD.
14. M/s DIMESCO FOOTCARE INDIA PVT. LTD.
15. M/s KOVAI FOOTWEARS PVT. LTD.
16. M/s FERRARI SHOES (INDIA) PVT. LTD.
17. M/s VEEKEYCEE FOOTCARE (INDIA) PVT. LTD.
18. M/s MORBIDO VINYL PVT. LTD.
19. M/s SMARTAK FOOTCARE PVT. LTD.
CONCLUSION
CONCLUSION
Retailers are very important for the success of a business, because
they are acting as a link between the company and the ultimate consumers.
So their satisfaction is very important.
Most of the retailers are satisfied with V.K.C. Slipons India Ltd..
Most of them said that it helps to increase their sales. They also believes
that customers are satisfied with the prizes offered in Slipons.
Thus all the retailers are satisfied with V.K.C. Slipons.
BIBLIOGRAPHY
BIBLIOGRAPHY
Marketing Management : A. Vinod
Project Management : Prof. P.R. Sreedharan
Research Methodology : A. Vinod