Black Book PGDM
Black Book PGDM
Black Book PGDM
The main objective was to understand the customers, also I was guided
in setting up the visual display to attract customers.
There are few gaps in our business. Major one is the reach towards the
customers. The retail outlet is around 23 years old and we have a huge
amount of loyal customers but we are lacking behind for new footfalls.
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Industry Overview
The footwear industry is one of the most rapidly expanding industries
globally. Increasing demand for new and innovative footwear and
emergence of various global as well as regional brands across segments
in the category is primarily driving the market. Innovative and trendy
footwear are being consistently manufactured by leading market players
due to advancement in the footwear manufacturing process,
technological innovations, and development of new material.
Over the past decade, India has been witnessing a rising trend of
consumer orientation towards health and wellness. The rapid
urbanization is responsible for a hectic lifestyle which has led to rise in
the incidence of lifestyle diseases. Voluntarily and mandated by their
physicians, the consumers have become more health conscious and have
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imbibed various physical activities into their lifestyle. The incidence of
indulging in sporting activities has also increased. This has led to an
increase in spending on sportswear by the adult population in metro and
larger cities in India. The coming up of international schools with state
of the art sports infrastructure has led to greater consumption of
sportswear by the school going population.
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Article on Global Footwear Market’s Growth
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Wolverine World Wide, Inc., Columbia Sportswear Company, ASICS,
Crocs Retail, LLC, Hermès, KERING, LVMH, Tapestry.
Global Footwear Market is expected to grow with a steady CAGR in the
forecast period of 2019-2026. The report contains data from the base
year of 2018, and the historic year of 2017. This rise in market value can
be attributed to the innovations and advancements regarding the comfort
and functionality of the footwear without compensating on their
aesthetic appeal.
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Major Players
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Ponta Sahib and Roorkee. The company has a production capacity of
50,000 pairs of footwear a day. Liberty shoes markets its products
through a channel of 150 distributors, 350 exclusive showrooms and
over 6000 multi–brand outlets, with a presence in over 25 countries.
Paragon made its humble entry into the Indian market. Kerala, the
southernmost tip of the country was home to the young brand. In the
year 1982, after gaining popularity in its home state of Kerala, Paragon
began its journey to the other Indian states. The company strongly
believes that its greatest strength is its staff and its distributors. The
company's distribution of footwear is networked through 18 depots
across India. Retail shopkeepers are serviced by more than 450
distributors, delivering stocks to every corner of the country in the
shortest possible time.
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Elena, Casuals and Bahamas. It offers a range of Flite slippers that are
manufactured using ethylene-vinyl acetate (EVA) technology. Under
Flite brand, it offers its products in various categories, such as Flite EVA
and Flite Junior. It has manufacturing facilities at Bahadurgarh
(Haryana), Bhiwadi (Rajasthan) and Haridwar (Uttarakhand).
Red Tape forayed into the apparel sector in 2006 and unveiled Men’s
Clothing and a line-up of Accessories. This range offers an eclectic
mix of Casual & Semi-Formal wear including Shirts, Tees, Trousers,
Denims, Sweaters, Jackets and Accessories such as Belts, Socks,
Hankies and Wallets. The Red Tape range of Shoes, Apparel &
Accessories reflect the latest Fashion Trends for Men across the globe.
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Company Overview
Introduction: -
Shoe Palace is a retail footwear outlet having multiple varieties of
popular footwear. It was first established in the year 1986 with its first
branch in Borivali (east), catering to the local population. It soon grew to
open its other branches pan Mumbai. Second branch was started in the
year 1996 in Malad (west). Its client base also grew to supply shoes to
different schools and to the major players of the service industry.
Clientele includes: -
Local population
Tie-ups with Schools
Corporate
Service Industry
Schools
Hospitals
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Promises: -
We promise to serve the best quality products to our customers and
customer satisfaction is our utmost priority.
Vision: -
We want to be recognized as a leading provider of comfortable footwear
for the ultimate consumer satisfaction.
Mission: -
Our mission is to expand our business widely and also to expand our
branches in India. We are dedicated towards our offerings to the
customer, the quality; the varieties offered and also after sales service is
our core focus.
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Firm’s Structure
ANIL
(SALES PERSON)
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Products Offered
Services Offered
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We provide guarantee over all our products that are offered to
the customers. Products are guaranteed for stitching, pasting and
molding. The guarantee period is based upon the products.
S.W.O.T ANALYSIS
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Strengths: - Weakness: -
Goodwill Capacity to expand
No credit Storage
Individually Branded Consumer Behavior
Products Inventory carrying cost
Variants available High staff cost
Good Sales team leads to No E-tailer listing
a better sales target
Opportunities: - Threats: -
Continued Market Online sellers
Development Increasing Technology
Increased Product (need to be adapted)
Offerings Local Retail Shops
Online Selling Shoplifting
Expanding Customer Base Security
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A. Data type:-
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Primary data on consumers buying behavior while buying footwear is
collected from surveying of different customer, target groups and
personal observation.
Secondary source: -
Sample
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For this project I have selected a sample of size of 133 from the
population. As it was anonymous online survey, the sample was
randomly selected. The survey was anonymous because most of the
people accessing the online websites are very cautious about their
privacy for which they do not want to disclose information to other
people especially while in survey. In this research, the sample is all the
people such as students, entrepreneurs, freelancers, part time employees
and full time employees. I am using primary data, as the information that
has been gathered is specifically for this research.
Data Analysis: -
Data Analysis is the procedure of efficiently applying measurable and
sensible systems to portray, consolidate and recap and assess
information. It is an important element. I tried to collect both qualitative
as well as quantitative data. Due to time constraint google forms were
used to collect and analyze the data on online platform. They have a
powerful database system and tools that can make charts out of the
collected data and make the analysis. It was handy for analyzing data.
Google Forms made my job much easier. These tools were suited in my
research as it was a descriptive research. Besides, it worked fine in
exporting Google Forms data to Ms Office. I did not have to input the
data again. It was all done by Google Forms analysis tool. After
exporting, Ms Office was used because it is widely used and also has
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enough functions for sorting, filtering, removing duplicates, formulas for
totals, percentages etc.
Tasks performed.
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1) Business Development Activities
a) Selling school products
I started my work with my dad in our own firm. As I’d worked
with my dad prior to this internship I was much aware about the
business that my dad runs. So it was a bit easy going with for
me but then I faced challenges after I started my work as an
intern at our own retail outlet. We use to put stalls in some
schools for the means of selling school products such as school
shoes, socks etc. As we had tie-ups with 2 schools.
At that time we were forced to keep our retail outlet close for 2-
3 days due to which the sale of other footwear products
suffered.
This was a big challenge faced by us due to lack of availability
of workers. I suggested my dad that we can distribute our
business cards in the schools to all our customers. My dad
permitted me to do so and the school also permitted us to do so.
On the day of open house we distributed our business cards.
This step was successful as we started selling the school
products from our store.
We could see our customer base increasing as the customers
visited our shop to buy school products and along with that
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some customers started buying other products as well from our
shop.
So this helped us in spreading awareness of our shop.
We gained many new customers.
This also did not give a negative impact to our sale of other
footwear products but our sales increased.
Overall this was the first successful step taken by us which
helped us in developing business.
The main advantage was that our shop was near-by the schools,
so it was very easy for the customers to track our shop.
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Another initiative that was taken by us was to sell shoes to the
service industry.
With the guidance of my dad, I started visiting my hotels such as
Ginger Mumbai, Grand Homtel, and many more
I carried away sample shoes, quotations and catalogs with me.
Some hotels already had tie-ups with other providers whereas
some did not entertain us.
Finally we were successful in selling our shoes to Hotel Sai Palace
Grand.
Entire Process
Research on types of shoes needed by the hotel industry
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Supply chain
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We started to research and analyze the shoes that are needed in
the hotel industry, for e.g. safety shoes, waiter shoes, staff
moccasin shoes etc.
The second step was to get various distributors available for
supplying the shoes. We made 3 distributors available for
ourselves as we could not rely on one distributor because if that
distributor would fail to provide the required footwear then we
would face problems in completing the order or our order could
also be canceled.
Third step was to visit the hotel and show them the variety of
products available. After two days we received a call from the
hotel as the decided the products.
Fourth step was to get the sizes confirmed, the quantity etc
Then we placed the order to our distributor. I was in continuous
contact with the distributor to get the work done on time, as we
had promised the manager to deliver the shoes on time.
We promised to deliver shoes in 15 days and we gave 10 days of
time to our distributor to deliver our order. So there was a gap of
5 days for us. It was due to if any problem occurs so we could
solve it in those 5 days, but luckily there were no issues and we
could complete our order on time.
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After order completion we got our payment through check, and
the order was successfully completed.
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This part will be talking about the data obtained from primary research
and how the result of the data collection relates to the research objective.
The data obtained from different respondents have been analyzed using
Google Docs to conduct a percentage analysis to determine different
social media user preferences. The percentage score reveals the current
buying behavior of consumers towards footwear. In the following
section, the data analysis is presented using different graphical tools
such as pie charts bar charts etc, to demonstrate the findings of this
research process. The survey findings and analysis is described below
with graphical illustrations:
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Figure 3.1
The pie chart on the Figure 3.1 illustrates the first question
responses.
On the very first question of the instrument was their gender. From the
study, it was found that 51.1% were male respondents and 48.9% were
female respondents.
This entire survey was done with the help of google form and also some
surveys were taken with the help of tablet at our retail outlet.
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Figure 3.2
The pie chart on the Figure 3.2 illustrates the second question
responses.
The second question was about the age group of the respondents who
were responding towards the survey. About 55.6% of the respondents
were falling under the category of the age group of 18-30. The age group
of 31-60 carried a total of 36.8% of respondents out of the total
respondents. The remaining 7.5% of respondents were in the category of
above 60. Their survey was done at our retail outlet through the help of
tab.
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Figure 3.3
The pie chart on the Figure 3.3 illustrates the third question
responses.
Question No. 3 helps us to identify the profession of the respondents.
The least of all i.e. 6.8% of the respondents were part time employed.
The respondents falling under the group of Full time employed were
about 27.1%. About 14.3% of the respondents were Freelancers. Out of
the total 18% of the respondents were Entrepreneurs. The highest
numbers of respondents were the students covering 33.8% out of the
total.
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Figure 3.4
The bar graph on the Figure 3.4 illustrates the fourth question
responses.
The fourth question justifies the number of respondents falling under the
category of their average monthly income with the help of bar graph.
About 30.8% of the respondents have their monthly income of Rs.5000/-
or less than that. 25.6% of the respondents has their average income of
Rs.5000 and above. The 22.6% of the respondents have their average
income of Rs.20000 and above and the rest of 24.8% of the respondents
fall under the category of Rs.40000 and above.
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Figure 3.5
The pie chart on the Figure 3.5 illustrates the fourth question
responses.
In question number 5, respondents were asked about their most
preferable footwear in their daily routine. 38.3% of the respondents
prefer to wear shoes whereas 28.6% of the respondents prefer sandals
for their daily routine. 21.8% of the people find slippers as their most
preferable footwear and 11.3% of the respondents prefer to wear
chappal.
This helps us to analyze and understand what amount of shoes, sandals,
slippers and chappals should be kept in stock. This question is much
helpful for the purpose of inventory management.
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Figure 3.6
The pie chart on the Figure 3.6 illustrates the Sixth question
responses.
While conducting survey 29.3% of the respondents preferred to buy
from shops because they could touch, feel and get size instantly and easy
to replace. While 25.6% of respondents preferred online shopping of
footwear due to various offers, huge amount of variations available and
also price discounts. 45.1% of the respondents did not have a fixed
preference as they were comfortable to purchase from both the places
i.e. shops as well as online websites.
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If you are not buying footwear from online websites,
please give a reason.
Responses
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The responses mentioned above illustrate the
Seventh question responses.
The question was about why people avoid shopping footwear online and
many respondents had similar issues such as: -
Comfort
Fake products
No visual appearance of the product
Trust issues over quality
Size issues
Some were not able to figure their own foot size
Replacement was very time consuming
So there were many reasons due to which many of the consumers are
still not satisfied with online shopping and mostly prefer offline
shopping over online shopping.
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Figure 3.7
The pie chart on the Figure 3.7 illustrates the Eighth question
responses.
The eighth question was about how often the respondents would buy
shoes and we got to know that about 33.8% of the respondents would
buy shoes twice in a year whereas 25.6% of the respondents buy shoes
quarterly. 22.6% of the respondents would buy shoes once in a year and
the remaining 18% of the respondents would buy shoes once in a month.
This survey was done only on shoes as it is the highest selling product of
our retail outlet out of all the footwear.
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Figure 3.8
The pie chart on the Figure 3.8 illustrates the Ninth question
responses.
Question number nine helps us to understand the most important aspect
that consumer keep in their mind while purchasing footwear. So through
the survey we got to know that out of the four aspects (price, comfort,
quality and brand) comfort is the most important aspect as 32.3% of the
respondents out of the total have chosen comfort as their most important
aspect. 15% of the respondents have chosen quality as their most
important aspect whereas 9% of the respondents go for brand and 6% of
the respondents has consider the aspect of price as their most preferable
aspect.
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Out of these 37.6% of the respondents have chosen all of the above that
means they consider all the mentioned points as their important aspect.
Figure 3.9
The pie chart on the Figure 3.9 illustrates the Tenth question
responses.
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amounts of respondents as these materials are normally used in the
monsoon season.
Figure 3.10
The bar graph on the Figure 3.10 illustrates the Eleventh question
responses.
Out of the total 68.4% of the respondents think that footwear purchase is
propelled by the time of special occasions or festivals as people like to
wear new clothes along with new footwear as well so the sale of the
footwear goes high at this point. The remaining 32.3% of the people
think that the purchase of footwear is not propelled on the special
occasions or festivals as they think that footwear is purchased only when
they need it.
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Figure 3.11
The pie chart on the Figure 3.11 illustrates the Twelfth question
responses.
Not all the time but 63.9% of the respondents choose Indian brands over
international brands. It is good to see that majority of the respondents
choose to wear Indian brands over international brands which indirectly
helps our nation to grow.
The remaining 36.1% of the respondents prefer international brands over
Indian brands. This could be due to various reasons such as brand name,
quality and many more aspects.
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Figure 3.12
The pie chart on the Figure 3.12 illustrates the Thirteenth question
responses.
The last question is about choice brands. Maximum respondents with
54.1% have chosen Nike as their favorite brand as the Nike Swoosh is
easily one of the most recognized brand logos in the world. On second
position comes Adidas with 37.6% of the respondents. It might be due to
the quality that Adidas offers to its customers. 32.3% of respondents
have chosen Reebok and then rest all the brands are followed by these.
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Some necessary upgrades to be done: -
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It is also very easy to access.
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Some news on footwear industry
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Even though India is a net exporter of raw hides and skins to China, it is
a net importer of footwear and other articles of leather such as handbags,
saddlery and harnesses from its neighbor.
Footwear is a major import item from China into India, accounting for
about 68% of total footwear import into the country Value-added
products such as leather products and footwear constituted 91% of
imports of leather, leather products and footwear from China, as per
industry estimates.
“As far as leather and footwear sector is concerned, balance of trade now
is in favor of China,” said an official in the know of the issue which was
recently discussed at a meeting of the department of commerce and
various industry bodies on containing the trade deficit with China which
was down by $10 billion to $53 billion in 2018-19.
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footwear,” said a leather industry representative who was present at the
meeting.
China imposes 5-7% import duty on bovine finished leather, 5.6% duty
on sheep or lamb finished leather, and 9.8% tariff on goat finished
leather under the Asia-Pacific Trade Agreement, of which India is also a
member. “This may be brought down to zero, as there is no import duty
for finished leather in India,” the industry representative said.
China is the fifth largest importer of leather and leather products in the
world. The import of leather and leather products of China has increased
from $7.7 billion in 2013 to $8.8 billion in 2017, growing at a CAGR of
3.39%.
Commerce and industry minister Suresh Prabhu has said that India
should not only have a balance in trade with China, but a trade surplus
going ahead.
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Conclusion
Working with my dad in such a firm like Shoe Palace has gained me
knowledge, confidence and also it has helped me in polishing my
analytical skills. I am so lucky to work with my dad as he always
supported me whenever I needed him. Due to his guidance, I was able to
perform all the tasks confidently and it was definitely a great experience
for me. The working environment was so good and friendly in our firm.
I learned many things over there, we also use to have fun while working
which made my work much easier. It was a great journey working with
my dad and all my employees. Most importantly I understood how to
analyze customer needs also I learned how to convince the clients and
handling inventories. I would like to thank all those who helped me
throughout this internship period.
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ANNEXURE
1) Gender
∙ Male
∙ Female
2) Age group
∙ 18-30
∙ 31-60
∙ Above 60
3) You’re Profession?
∙ Student
∙ Entrepreneur
∙ Freelancer
∙ Full time employed
∙ Part time employed
4) Your average monthly income?
∙ 5000 or less
∙ 5000-20000
∙ 20000-40000
∙ 40000 and above
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5) What are the most preferable footwear according to you in your
daily routine?
∙ Shoes
∙ Sandals
∙ Slippers
∙ Chappals
7) If you are not buying footwear from online websites, please give a
reason.
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9) What is the most important aspect of your footwear?
∙ Price
∙ Comfort
∙ Quality
∙ Brand
∙ All of the above
10) What quality do you prefer while buying footwear?
∙ Leather
∙ Foam
∙ Rubber
∙ P.V.C
∙ Plastic
11) Is footwear purchase also propelled by festivities and special
occasions?
∙ Yes
∙ No
12) Do you prefer Indian brands over international brands?
∙ Yes
∙ No
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13) What all brands do you prefer from the options below?
∙ Nike
∙ Reebok
∙ Adidas
∙ Sparx
∙ Red Tape
∙ Tommy Hilfiger
∙ Paragon
∙ Campus
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Bibliography
Websites: -
https://www.researchandmarkets.com/reports/4663091/a-study-of-
indias-footwear-market-2018
https://www.ndtv.com/business/stock/liberty-shoes-
ltd_libertshoe/reports
https://www.paragonfootwear.com/about-us
https://redtape.com/about
http://heraldcorrespondent.com/footwear-market-astonishing-growth-
nike-asics-crocs-retail-puma-adidas-ag.html
https://economictimes.indiatimes.com/news/economy/foreign-
trade/higher-import-duty-sought-on-chinese-leather-
footwear/articleshow/68981670.cms?from=mdr
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