Final Project

Product

2

Resource Person

Mr. Mobin-ul-Haq

Program MBA P (E)

Submission Date

9th February, 2008

3

AcknowledgementAcknowledgement

First of all, our gratitude to All-Mighty ALLAH who gave us the energy, the motivation

and the wisdom to accomplish this research task

We have pleasure in recording our indebtedness to many people who have helped us in

this research project.

We are grateful to Mr. Mubeen ul Haq the Assistant Professor who gave us an

opportunity to explore, and polish our skills. At this stage, it was a great learning

opportunity for us to develop strategy for a well known company.

We also thank Planning Executives Ms.Anila Tauqir and Mr.Salman Kafeel of Soul

Collection and Sourcing analyst Mr. Rizwan Saddique for providing us with the required

information.

4

Executive Summary

This project encompasses various strategic marketing aspects of “Soul Collections” a

Pakistani ladies footwear brand recently launched by Servis group.

The Porter Analysis paints the picture of a medium attractive market for ladies fashion

shoe industry in which threat of new entrants, suppliers and substitute is low, rivalry is

intense and buyer power is high.

The PEST analysis also indicated that there is no stability for any kind of business given

the current political and economic environment. Apart from the environment of our

country, China is also a major threat in this market.

The major competitors of Soul are Stylo, ECS and Milli. The major new entrant in this

industry is Shu-8 by Bata. Every one is trying to gain competitive advantage in this less

differentiated industry. ECS has tried this by launching three brands catering to high class

with different age groups. Stylo on the other hand has gone into large distribution

network in different cities and has also made a breakthrough by increasing its product

line to kids’ girls and boys. Recently Stylo has recently launched a line of sports shoes

for their kids segment. Milli has combined its own brand along with many imported

brands under one roof. Apart from shoes, they are also into bags, belts and other

accessories.

Based on thorough research a marketing plan for a new brand under Soul Collection is

planned to launch with the name of Senora Collections. The main concept behind this

product is to collaborate with major cloth houses for providing the customers with shoes

and accessories that match or contrast in exact colors and designs. This product is

expected to launch in autumn 2008 and prior time will be used for preparation of

5

implementation. After implementation of this strategy in cuming years 50% market share

is expected to increase from current figures

6

Table of Contents

Page

Ladies Fashion Shoe Industry of Pakistan 7

PEST Analysis 9

Industry Analysis 13

Supply chain 18

Competitor Analysis 20

Company Analysis 28

Soul Collections Current Strategies 36

SWOT Analysis 39

GE Matrix 42

Customer Analysis 43

Marketing Plan Senora Collections 47

Marketing opportunities 56

Schedule of marketing plan 59

Appendices 60

References 63

7

Ladies Fashion Shoe Industry of Ladies Fashion Shoe Industry of

PakistanPakistan

Fashion these days has become very essential to females and they are highly demanding

whether its attire, shoes or accessories. Seeing this major transition in the behaviour of

females, every industry related to females and revolutionized. The ladies shoe industry

has also undergone changes and especially in the past few years the transition has been

quite rapid. Ladies fashion shoe industry is a very growing industry. Exiting firms in

ladies fashion shoe industry:

Branded Branded

1. Stylo

2. Ehsan Chappal Store

3. Milli

4. Metro

5. Soul Collections

6. Shu-8

7. Comely

Non-Branded Non-Branded

1. Shan Chappal store

2. Dolphin Shoes

3. Ansari shoes

Non branded or generic retailers are in masses and are found in almost all big and small

markets of Pakistan. They sale shoes on small stands outside the shops or they have

rented shops but are not known by any name. Even if they have named their shops (like

Ansari and shan etc.) they are not known by people residing in other localities.

8

9

NeedCover our feet

Shoes

Orthopedic shoes

Athletic Shoes

Fashion shoes

Dance shoes Work shoes Historical Shoes

Men’sShoes

Ladies Shoes

Either Shoes

Focused Industry

PEST ANALYSISPEST ANALYSIS

Political EnvironmentPolitical Environment

The political arena affects the industries of any country. If the political environment is

stable then it is beneficial for any industry because stable political environment follows

the regularity of the policies for any industry. Unfortunately in Pakistan, political

environment was not sustainable which causes a bad effect on almost all the industries.

Currently Pakistan suffers from considerable political uncertainty as the tenuous

governance structure put in place by President Musharraf has come under strain.

Moreover, among ordinary Pakistanis, criticism of the army — typically among the most

respected institutions in the country — and its role in governance has become much more

common.

The imposition of an emergency comes after months of political instability and

worsening Islamist-related violence in Pakistan in 2007. By redirecting resources toward

subduing Pakistani civil society, the move could even hinder the military’s ability to

combat religious extremists, who many argue are strengthened by authoritarian rule that

weakens the country’s moderate political forces

Impact of Political Environment on Shoe Impact of Political Environment on Shoe

Industry Industry

There is no special trade restriction for shoes industry. Any one can start this business

with the registration in chamber of commerce.

Last year Government of Pakistan exempted special taxes of 10% - 15% on leather shoes

imported that was a promoting action for shoes industry. Raw materials used in shoe

10

industry are mostly leather, artificial leather, synthetic, and textile canvas, PVC, Hawaii

and EVA. The import duty on all these raw materials is 15 %.

There are some environmental issues regarding shoes industry that is ban on import of

raw material toluene. The chemical toluene is addictive. Due to this reason, the sticking

chemicals like Lee-tax, Diamond and MEK are mostly being imported and if it is

manufactured in Pakistan, then toluene is smuggled.

Political instability i.e. state of Emergency has big affects on import and exports of shoes

industry as well as retail business. People take this emergency in the sense of Martial

Law they are afraid and not willing to come market for shopping. All the imports orders

had been cancelled due to emergency no one country willing to export their shoes and

shoe raw material in Pakistan.

WTO affects this industry too much. WTO has opened trade with china which has also

affected this industry negatively. China penetrates not in Pakistani shoes market but all

over the world due to low manufacturing cost. Investors in shoe manufacturing are afraid

due to these types of agreements to invest in shoes industry. We can promote shoes

industry if Government imposes trade restriction on imports of shoes from china.

Economical EnvironmentEconomical Environment

Most considerable point for any industry is the economic condition of the country. If a

country is economically strong then there are chances of growth in each sector.

Pakistan is a developing country and progressing continuously. The economic condition

is much better now as compare to the previous years. In the past foreign companies were

afraid to invest in Pakistan but now the situation is totally change. Many countries are

investing in different sectors and playing good role in our economy. The GDP of the

Pakistan has increased and rising up with the time.

GDP is targeted to grow by 7% in 2006-07, with a growth in manufacturing (8.4%).

The overall Fiscal deficit for 2006-2007 was targeted at Rs.373 billion i.e. 4.2 percent of

GDP which is expected to be Rs.345 billion i.e. 4.0 percent of GDP. Rate of inflation is

increasing on fast pace, 7.92 in 2006, which directly affects new investments, because

inflation is directly proportional to interest rates.

Expo centers are being introduced in some major cities to robust Pakistan’s export

revenue. After the emergency imposed in Pakistan, our economic rating has decreased

11

from “A” to “B-”. Due to the current political instability, foreign investment has

decreased a lot.

Due to current instability, Pakistan’s main stock market in Karachi lost nearly 5% of its

value when trading reopened on November 5, 2007 — the market’s worst-ever one-day

loss — and the country’s attractiveness for foreign investors may wane considerably

upon further instability.

Impact of Economic Environment on Shoe Impact of Economic Environment on Shoe

Industry Industry

Due to this reason, there is great change and development in Shoes industry. Shoes

industry is much more efficient now days as many firms are entering into this business.

New companies like Soul Collection, Shu 8, Think Pink, Comely shoes, swan shoes, and

Metro shoes are the example of this growth which will raise our GDP more.

Social EnvironmentSocial Environment

Social trends and the demographics are the key elements that are taken in consideration to

do business in any country. Each country has different culture and trend basing on their

norms and values.

In Fashion Shoes industry trends are changing day by day rapidly and if you don’t keep

up your pace with this rapid transition you will lack behind.

Now a day’s people are becoming more stylish, fashion oriented and status conscious so

they prefer and demand for shoes which fulfill their personality needs. People today want

good quality products in return of the money that they spend.

People like to socialize. As imported and internationally renowned brands are assumed to

be prestige to use, people are more likely to go for some best known products.

In the ladies fashion shoe industry, there is an increased trend of females to buy shoes

that matches their outfits. Some years back, very neutral colors like black, brown, white

and fawn were used for ladies shoes and were considered as a match for outfits of all

colors. But this trend is by gone now and ladies are more prone to buy matching shoes.

Because of this demand from the ladies, almost all firms are manufacturing shoes of a

12

variety of colors. Now, shoes are being manufactured in various shades of one color like

different shades of blue, green, pink and other colors are easily found.

Another increased trend is of providing shoes according to various occasions like

valentines, basant; weddings etc. for example on valentines, shoes in various shades of

red are provided and displayed. In the same way, in wedding season golden, copper,

silver and reds are provided because of their huge demand.

As weather in Pakistan remains warm in most of country’s region and it continues

approximately 7 to 8 months, so in such weather you need more stylish chappals. Strong

media support towards brands is influencing people decisions about shoes.

Technological EnvironmentsTechnological Environments

Technology is the best weapon to win the war of competition in these days. Those who

have outdated technology are out of the competition. In shoes industry majority of

companies are manufacturing hand made shoes for competitive edge. In Pakistani shoes

industry usage of technology is very low because people prefer to buy hand made shoes.

The budget allocation for research and development in shoe industry of Pakistan is

maximum 5%. Due to low usage of technology in this industry technological change rate

is 0%.

A big reason for not involving technology is that in ladies fashion shoes industry, the

designs change rapidly and with this fast pace, machines cannot be changed.

But technology plays a great role in sole cutting and pressing. Machines are used in

Pakistan as well as abroad for sole cutting and pressing. Earlier sole cutting and pressing

was manually done but now machines are available on which mass sole cutting and

pressing is done. As far as the uppers of shoes are concerned, they are embellished and

sequenced by labor.

Slip-ons uppers are cut on machines

Mass productions of shoes are having their uppers cut on machines

Trend in the next three yearsTrend in the next three years

After analyzing the current condition of the country, it can be send that in the coming

years the environment will not be stable and the industries will not flourish as they have

in the past few years. People will be hesitant to invest in businesses because of the

13

insecure business environment. The company might grow better keeping in mind the

previous strategies of General Pervaiz Musharraf but the overall business environment

will be not be favorable. But in footwear industry, although china is a major threat but

still, there are chances of growth.

INDUSTRY ANALYSIS INDUSTRY ANALYSIS

Bargaining power of suppliers – LowBargaining power of suppliers – Low

Too many suppliers

The suppliers have mushroomed specifically in the city of Lahore and Karachi. Other

than these cities suppliers can be found in Sangla hill, Shiekhupura and Kasur. The

suppliers are quite large in number as compared to the buyers who order them. This large

ratio of suppliers leaves the choice on buyers. The buyers have the complete power to

work with as many suppliers as they want and to reject the suppliers when their orders are

made.

Lead time short

Generally the lead times of providing the orders to the firms are very short. If any

supplier takes more time than others he will not be pursued and contacted by the firms.

So the rivalry among suppliers is intensified on the basis of lead times

Easily available – homogenous product

The products demanded by all the firms in this industry are almost the same with little

variations in designs. So overall, the products are homogenous in nature.

Segregated suppliers

The suppliers do not have any union. They are segregated and spread. Because of no

union of suppliers, their power has decreased. Price war has resulted because of

segregation of suppliers.

Fragmented

The suppliers market is totally a fragmented market and the concentration ratio is quite

low due to influx of suppliers who cater to a limited number of buyers in this industry.

14

Suppliers product essential to the quality or performance of the business

As almost all the firms in this industry are outsourcing so the products quality heavily

depends on suppliers. The buyers expect to get good quality shoes from their suppliers.

The product quality is totally dependent on suppliers’ part. For the quality to be

consistent, the firms arrange for quality audits to the suppliers manufacturing place.

Product differentiation is not provided by the suppliers as they have to make

to designs with complete specifications provided by the firm

As far as the big names of this industry are concerned like Stylo, ECS, Modila, Milli,

Soul Collections etc. they have their own shoe designers. Once the shoe is designed, it is

sent with complete specification of raw materials to be used to the suppliers. So

customization is quite high as far as the designs are concerned. In the ladies fashion shoe

industry the product differentiation is mainly defined in terms of designs they offer to

their customers. So the product differentiation is defined by the firms and not the

suppliers

Low switching cost

As the ratio of suppliers is quite high as compared to the firms that they are catering, so

this makes the switching cost of buyers very low.

Forward integration can happen because of low entry barriers

As the entry barriers in this industry are very low due to low mainly due to low capital

costs, there is a threat that the suppliers can come into forward integration and this can be

a threat from suppliers.

The leftover inventory stocks are returned to suppliers as claim. Suppliers then

sale those shoes to generic retailers.

15

Customers/Buyers Customers/Buyers

Products are homogenous. Shoes in ladies fashion industry are not much different

in terms of design and quality as almost all the firms have same vendors and if a

firm signs an agreement with vendors in order to protect their designs from being

copied, the vendors will offer the same design with a slight difference to some

other firm. So, products are homogenous in ladies fashion shoe industry

Buyers are very strong as they have too many options available without any

switching cost involved. If they face any issues regarding price, quality etc. they

would easily switch to other brands as they can find the same designs with a slight

difference (or at times same design) at any other shop at their acceptable price or

quality parameters.

Fashion trends are changing at a faster pace, buyers in this industry are not brand

loyal rather they seek for better designs and apparent quality parameters defined

by them.

Comparable prices & quality: As mentioned earlier products are homogenous

with little or no difference, buyers have advantage of switching a brand if they are

not satisfied with the price or quality being offered by a particular brand.

Switching cost is low, as mentioned earlier, that products are almost same so

consumers do not face any major costs in switching a brand from one to another.

Threat of New EntrantsThreat of New Entrants

Entry barriers are low as existing firms are all outsourcing which makes the total

investment relatively low for new entrants.

Entrants do not have to spend heavily to overcome existing customer loyalties

instead location of retail outlets, designs and to some extent quality are areas

where entrants will have to focus.

Established / growing market as companies across the industry exhibit solid

earnings and revenue figures which means industry is showing signs that it is in

its growth stage.

16

No technicality involved .supply chain is very easy to manage in this industry as

not much technology is involved in manufacturing of the shoes and as a matter of

fact outsourcing lowers the risk of failure in production.

New entrants need to differentiate by spending on advertising, customer services

and to some extent product differentiation keeping the current situation of

industry.

Switching cost is low which is beneficial for new entrants if they provide the

designs and fulfill the quality parameters defined by the customers.

If we talk about the prevailing trends then firms like (Soul, ECS, Stylo etc) have

their own distribution channels.

The only determinant for cost advantage is favorable location in this industry

There are no government policies to limit the competition. Other than that if there

is import duty then it is only on some raw materials which doesn’t directly affect

our industry.

Existing industry doesn’t have any history of retaliating as industry is growing at

a fast pace which is not a threat to the sales of new entrants.

Threat of SubstitutesThreat of Substitutes

Machine made shoes are substitute products as hand made shoes are being

produced currently in the market.

Life of fashion shoes is very short i.e. fashion trends change at a fast pace which

makes it difficult for the substitutes to follow rapid changes, so threat of substitute

is pretty low.

17

RivalryRivalry

Too many competitors

Comparable marketing budgets for brands only. If generic retailers want to

establish themselves as brands then they will have to allocate ample budget for

market resources and advertising.

Rivalry is intense as competitors prone to fight each other because almost all of

them have similar resources, have similar strategies and also same target market

Fixed costs are not high thus there is no pressures for firms to fill capacity which

can at the end lead to price cutting when excess capacity is present.

As mentioned earlier, target market is almost same for all competitors that results

in almost same strategies so, competitors in this industry do not face hard time

reading each other’s (competitors) intentions accurately.

Low Exit Barriers

i. No specialized assets are involved as this is a labor intensive industry.

ii. There are no Government policies for any firm that wants to leave the industry.

Overall Analysis of PorterOverall Analysis of Porter

After analyzing the dynamics of the industry, it is evident that entry and exit barriers are

low in this industry because of which there are an influx pf suppliers and manufacturers

and retailers. The supplier power is also low as there are number of suppliers in the

market. A single firm might have more than 80 to 90 suppliers. As far as rivalry is

concerned it is intense as a large number of rivals are competing. Threat of substitute is

also not significant. But the most powerful force among these buyers, as buyers are

involved in this industry is generic buyers.

New Entrant

LOW

Buyers

HIGH

Suppliers

LOW

Substitutes

LOW

18

Rivalry

Intense

Supply Chain Supply Chain

19

Process

Design

Out sourcing

Raw Material Shoe Manufacturer

Brands:

[Stylo shoesECS shoesMilli shoesBorjan shoesShu-8Soul Collection, Others]

DistributionCenters

Mostly outsourcers have their own distribution center.

Retailers

Customers/End Users

Problems in supply chainProblems in supply chain

Demand is not collaborated i.e. information is not shared throughout the supply

chain which creates a problem at customers end and inventory piles at

manufacturer’s end that increase the total costs.

Cut-size order: Another problem in supply chain of footwear industry is cut-size

orders of shoes by the buyers. When an order of a shoe is distributed to the outlet

from sizes sat 6-12 and some of them are sold and is still demanded by the end

customers then companies ask their vendors to produce only those sizes that have

high demand and not a complete set of size from 6-12 just to reduce their cost of

inventory and on the other hand manufacturers/suppliers prefer to manufacture

shoes in bulk, this is the where supply chain weakens.

20

6%

4%

1%

1%

1%

0%

87%

Stylo

ECS

MILLI

Soul

Metro

Comely

Others

Competitor Analysis Competitor Analysis

Firms in Industry Firms in Industry

Stylo

ECS

MILLI

Soul

Metro

Comely

Generic/non-branded

Industry Market Share:Industry Market Share:

From the data of the industry market share, we see that the market is highly fragmented

and few key players are in the market of ladies fashion shoe industry

Firms Annual Sales Market Share%

Stylo 700,000,000 6

ECS 500,000,000 4.00

MILLI 100000000 1.00

Soul 150000000 1.00

Metro 100000000 1

Comely 50000000 0.50

Others (Generic/non-branded) 10400000000 87

12000000000 100

21

Concentration RatioConcentration Ratio

Market is highly fragmented as it can be seen from the above pie chart that 87% of the

market share is consists of generic/non-branded retailers

Major Customers

As this is ladies fashion shoe industry so ladies are the customers.

Location of Suppliers

Most of the suppliers are located in Karachi and Lahore and Sangla.

Competitors of SoulCompetitors of Soul

From all the firms in the market of ladies fashion shoe, three are the major competitors of

Soul Stylo that has captured maximum in the market share, then ECS that also has

second highest market share among famous brands. Other than that why these firms are

chosen as competitors is because a survey was conducted to know customers’ brand

preferences and it showed that 57% of the customers prefers to go to Stylo followed by

41% to ECS and then 21% prefer to buy shoes from Milli.

Stylo Shoes Stylo Shoes

From a rather humble beginning with one rented outlet in Lahore in 1974, to becoming

the largest selling ladies’ shoes brand in Pakistan and the largest ladies shoes retail

network in the country as well, Stylo Shoes has come a long way. Stylo is currently

present in 16 cities with 27 outlets and plan on expanding further in the coming months.

Over the years, Stylo has slowly but surely become a household name that has captured

the imagination of women who consider footwear an essential part of their appearance. It

is no wonder that Stylo is, today, popularly acknowledged as one of Pakistan’s leading

footwear and accessory brands in women’s fashion.

Product line

Party

Bridal shoes

Autumn/winter

Casual

22

Competitor Strategy – StyloCompetitor Strategy – Stylo

Market Product Price Promotion Distribution

1.operating in

international

market

2.following multi

market strategy

3. First in

strategy.

4. Major

commitment in

terms of

priorities and

resources

5. Flexible to

market demand

1. Positioning a

single brand

2. Competing

brand

3. Focus on new

users of the

product

4. Focus on new

uses of product’s

basic material

5. Offering

multiple and

standard products

6. Focusing on

innovation,

modification in

the products

7. Extending its

product line from

females’ shoes to

kids.

1.Adopts

skimming price

strategy when

launching new

designs

2. Adopts

preemptive

pricing for run of

the mill designs.

1. Intensively uses

both "Indoor" and

"Outdoor" means

to advertise and

promote its

products

1. Direct

distributing

2. Distribution is

extensive

3. Adding

franchises

attempting to

control

distribution

channels.

23

Ehsan Chappal Store – ECSEhsan Chappal Store – ECS

ECS is a family-owned chain of ladies footwear and accessories retail outlets. The first

outlet was opened in Lahore’s famous market Anarkali by Mr. Fazal-e-Rab Siddiqui in

1953. The idea was to give customers good value for money. Soon it became famous for

a wide range of comfortable and durable ladies chappals (sandals and slippers). In a few

years the name Ehsan Chappal Store became a synonym for fairly-priced comfortable and

durable ladies sandals.

Product line

Party

Bridal shoes

Autumn/winter

Casual

24

Market Product Price Promotion Distribution

1. ECS usually

follows first-in

strategy

2. Caters single

market i.e. ladies

fashion shoes and

is operating

nationally.

3. Concentrate on

key markets when

demand increases.

1. Positions multiple

brands, like Elements, e

circles and WSC for

different niches.

2. Finds new uses for

products basic

materials.

3. Is a competing brand

as they are the only one

to launch various

brands under its name.

4. No customization

regarding designs.

5. They innovate and

keep on modifying in

order to offer better

quality shoes to their

customers.

1. Follows

skimming price

strategy for

their brands i.e.

WSC, elements

and e circles.

2. Establishes

pricing

strategies

themselves.

1. Extensive

use of

outdoor

media i.e.

billboards and

web-ads

2.

Advertising

strategy just

adopted to

create

awareness of

ECS among

target market.

1. Direct

distribution

strategy is

being focused

by the ECS.

2. Adding

retail functions

to control

distribution

channels.

Competitor Strategy – ECSCompetitor Strategy – ECS

25

Milli ShoesMilli Shoes

Milli shoes is manufacturing a wide range of ladies, gents and children shoes plus are

also offering briefcases, wallets, handbags and belts. They have also introduced a vast

range of imported shoes and executive class of parties wear shoes with a brand name of

“Royal Milli”. Milli is also established with a sophisticated design department equipped

with latest computers and quality control center supervised by highly professional and

qualified staff ensuring quality products to customers.

Product line

Party

Bridal shoes

Autumn/winter

Casual

26

Competitor Strategy – Milli ShoesCompetitor Strategy – Milli Shoes

Market Product Price Promotion Distribution

1. Operating in

total market.

2. Follow the

leader strategy.

3. Average

commitment in

term of

priorities and

resources.

4. Flexible to

market demand

5. are exporting

shoes also to

various

countries.

1. Positioning a

single brand

2. Focus on

new users of the

product

3. competing

brand

4. Focus on

new uses of

product’s basic

material

5. Offering

multiple and

standard

products

6. Focusing on

modification in

the products.

7. Extend its

market in

imported shoes

8.Milli’s brand

is under

positioned and

lots of people

doesn’t know

about it.

1. adopt

skimming price

strategy when

launching new

designs and

products

2. Adopts

preemptive

pricing for run

of the mill

designs.

1. support

personal selling

2. use

"Outdoor"

advertisement

to promote its

products

1. Direct

distribution to

end users

2. Distributing

in restricted

regions.

3. Unlike others

ECS is adding

owned sales’

points to control

distribution

channels.

27

Major moves of CompetitorsMajor moves of Competitors

ECS launched three brands under its name i.e. WSC, e circles and elements

Stylo adding franchises and expanding its segments i.e. sports segment is being

catered by them now.

Major Entrant in the Ladies Fashion Shoe Major Entrant in the Ladies Fashion Shoe

MarketMarket

Major entrant after the launch of soul collection is Bata’s Shu-8

28

Company AnalysisCompany Analysis

SERVIS GROUPSERVIS GROUP

IntroductionIntroduction

Servis Group is Pakistan’s largest footwear manufacturer and exporter. It also has

interests in retailing – its sister company Service Sales Corporation is the country’s

largest retailer and wholesaler of footwear. The Group has diversified interests in

Textiles, Rubber products including tyres, defense industry products, pharmaceutical

retailing and now also in ladies footwear.

The Group was set up in 1958 and today has sales of more than Rs. 6 billion (US $ 100

million). The Servis Group employs 7000 people in its various companies.

Group of Companies

Service Industries Limited

Service Sales Corporation (Pvt.) Limited

Dar Es-Salam Textile Mills

Servaid Pharmacy (Pvt.) Limited

Shoe Planet (Pvt.) Limited

Soul Collections

With more than 300 retail outlets and 13 wholesale depots, Service Sales Corporation

(Pvt.) Limited is the leading retail company in Pakistan with annual sales of Rs. 3 billion.

The Company has established some of Pakistan’s leading footwear brands including

DON CARLOS, CHEETAH, SKOOZ, TOZ and LIZA and has exclusive distribution

agreements with CATERPILLAR, NIKE and LEVI’S.

As part of the growth strategy, they have expanded their businesses to include Servaid

Pharmacy, Shoe Planet and Service Communications.

29

Vision Statement Vision Statement

Be the fastest growing company in every market we enter

Mission Statement Mission Statement

SSC will:

Maximize value for its shareholders and business associates.

Ensure product innovation and a buying experience that consistently exceeds

customer’s expectations.

Become a 10 billion rupee company by 2012 through leveraging its brands,

distribution and retailing strengths.

Leverage technology to gain competitive advantage.

Strive to provide an environment where employees will be developed, rewarded

and provided with greater opportunities.

Continue to improve the quality of life of its employees and their families.

30

Soul CollectionsSoul Collections

Servis Sales Corporation after realizing the growth in the market of ladies footwear

decided to start a separate business unit with the name of “SOUL COLLECTIONS”. Soul

is operating as separate entity in hand made ladies footwear.

Soul has opened its first shop in Liberty three months ago. After the success and hard

work of its enthusiastic team Soul is now opening four new shops in Pindi, Link Road

Lahore, Shoe Plannet LHR and Shoe Plannet KHI.

The main focus of the organization is to provide quality product to its customers. There

core competence is the comfort they are providing. Their innovation, day and night

efforts of the team regarding product development is enabling Soul to attract and increase

the number of customers. These capabilities have also allowed them to strive against the

oldest competitors like Ehsan Chappal store and Stylo shoes.

Soul Collections is all about fusing the exotic and colorful local aesthetics with

international shoe standards. The design range at Soul Collections is not restricted to a

particular segment of the Pakistani consumers, both in its versatility and its affordability

Currently there are 15 employees that are working in the Soul office. The departments

include:

Merchandising Department

Planning and Distribution

Warehouse

Product Development

IT Department

Merchandising Department Merchandising Department

The merchandising department is basically responsible for sourcing of the product,

selection and development of vendors. At the initial stage samples are selected by the

merchandizing team and quality, price, designs and other related issues are considered.

After the selection of product a contract (that is pre- designed by the head office) is

signed by both parties and a purchase order is issued to the vendor. Once the order is

placed then this department is responsible for the follow up of orders.

31

Planning and Distribution Planning and Distribution

As obvious from the name this department is responsible for planning and distribution of

product.

The planning personnel’s are responsible for:

Forecasting of demand and providing the merchandizing department about

purchasing.

Estimation and continuous evaluation of budget so that it should not exceed the

planned and approved limit.

Switching and swapping of products from one shop to other.

Keeping proper information about the slow and hot selling articles.

Keep an open eye on inventory so there should be less or very few chances of

stock outs.

The distribution personnel’s are responsible for the:

To distribute the products according to requirement of each shop

Basically the implementation of the planning is the responsibility of distribution.

Warehouse Warehouse

The responsibilities of warehouse department include:

To receive deliveries from vendors and arrange them

To check the quality of product

To generate GRN (Goods receiving note) to vendors. The vendors are then paid

on the basis of this GRN

To keep track of claims that has been resend to vendors for repairing.

32

Product Development Product Development

The responsibilities of the product development department include:

To interact with vendors during the whole product development process in order

to

o Get maximum benefit and to remove the chances of errors at the designing

stage

o To come up with creative and innovative designs

o To provide right input at each step and to develop the vendors

To work on improving the quality, comfort and standard of the product

IT Department IT Department

To live, learn and work successfully in an increasingly complex and information-rich

society, organizations must be able to use technology effectively. Within an effective

setting, technology can enable organizations to become more efficient and competitive.

As technology is becoming the core to success for any organization Soul has also focused

to adopt as much technology as possible in its operations in order to minimize the

chances of human error and improve the output.

The IT department at Soul is responsible for:

Maintenance of hardware and software

Train employees for the newly installed retail management software

Administration of all systems(computers) related tasks

To coordinate with software providers regarding any problem in the operation of

the software

To take care of all settings and problems regarding LAN (Local Area Network)

connections

33

Soul Collection’s Objectives Soul Collection’s Objectives

The core objective of “Soul” is “to provide optimum level of support and care that

they have committed to provide through their highly skilled and motivated team of

professionals.”

Goals in Soul are:

Measurable

Specific

Time framed for accomplishment

Multiple ObjectivesMultiple Objectives

Soul is at the position in high competitive market in Footwear sector so it is more

emphasizing on strategic objectives, which are as following:

o Bigger market share

o Higher product quality.

o Lower cost relative to key competitors.

o Broader or more attractive product line.

o A strong reputation with customers.

o Superior customer services.

o Recognition as a leader in technology and/or product innovation.

o Expanded growth opportunities.

34

Corporate level objectivesCorporate level objectives

Code of business Principles

Soul feels its responsibility towards maintaining proper business principles and business

ethics. It has documented procedures explaining business principles which are based on

trust, honest and best practices. It inculcates a culture where each employee feels its

responsibility to follow these business principles which are laid down in the best interest

of the employees, the organization and the environment.

Strategic Planning

That set of managerial decisions and actions that determine the long run performances of

an organization. Strategic plans are designed and structured by Coo and GM.

Soul using following procedure to reach at planning:

SWOT

What are strength, weaknesses, opportunities and threats?

Strategic Position with regards to operations

Operations ability to work with different products experience, skills and capacity

Competitors profiles and offerings, SWOT

Consumer profile, Segmentation strategy, Product Strategy and Risk profile .SWOT of

competitor’s offerings and profile.

35

Business Level Strategy

As part of its business strategy, Soul plans to establish itself as a leader, and increase the

overall market size through broader coverage of all income groups due to its

affordability. Soul’s superior products, high quality of service, and customer support will

enable it to not only capture market share from existing players, but also acquire the so

far untapped market.

Soul seeks to determine how it will compete, its strategy is to:

Offering customers innovative designs.

Variety of products which are designed differently for different customers.

Low prices to win the market.

High quality services.

36

Soul Collections Current Soul Collections Current

Strategies Strategies

Pricing Strategies Pricing Strategies

Souls’ pricing strategy is competitive and they also focus on psychological

pricing strategy with certain shoe prices that are a little less than round

number creating a psychological impact e.g. Rs. 295, Rs.995 etc.

Prices ranges are different for different shoes like for party footwear price

ranges are from Rs. 1100 – 2500, for bridal and fancy footwear price ranges

from Rs. 2500 and above, professional shoes range from Rs. 500 – Rs. 2000,

and for casual wear prices start from Rs. 195 onwards.

Placement StrategiesPlacement Strategies

o Outlets:

Liberty Market, Lahore

Link Road, Lahore

Shoe Planet, MM Alam Road, Lahore

Bank Road, Rawalpindi

Shoe Planet, Tariq Road, Karachi

o Distribution

Soul collections follow direct distribution to the end user strategy. As

Soul is sourcing manufacturing of shoes so they are more focused to

enhance other areas of the value chain of which distribution is one

area.

37

ProductProduct

Ladies footwear and accessories

o Chappal

o Slipper

o Sandals

o closed

38

Positioning Positioning

Soul Collections is a Pakistani ladies footwear brand that aims to provide a one stop

shopping facility regarding quality footwear and accessories. Soul Collections is not just

about selling quality footwear, it wants to be identified with providing the ultimate

shopping experience to our customers.

PromotionPromotion

Promotion is typically done in order to create awareness among its customers

about the name SOUL collections and tries to persuade customers from their

ads but still needs to focus more and improve their promotion strategies.

Soul is advertising through print media such as newspapers, magazines,

billboards and also running TVC’s on national channels as well as local

cables channels

Other than that Soul’s team visits various school and colleges as part of their

promotional strategy.

39

SWOT AnalysisSWOT Analysis

STRENGTHS:

Informal Decision Making

Financial Resources

Back of Strong Corporate group

SSC

Use of latest technology

Existing knowledge if retail

network (Servis group)

Weaknesses:

Lack of Industry data

New and unknown brand

Sales oriented rather than market

orientation

New in ladies fancy footwear

Dealing with uneducated cottage

industry (Suppliers)

Opportunities

Growing market 12 Billion/ yr

Setting up a wide retail network

Very few brands in the market

(Brand building)

To go multinational

Threats:

Strong competition (old brands 35

yr old)

China cheap production

International brands catering to the

target market

Dealing with uneducated vendors

Unreliable lead times

40

Internal Factor Analysis – IFEInternal Factor Analysis – IFE

FFACTORACTOR

WWEIGHEIGH

TT

RRATEATE

(1-4)(1-4)

TTOTAOTA

LL

SSTRENGTHSTRENGTHS      

Informal Decision Making 0.1 4 0.4

Financial Resources 0.07 3 0.21

Back of Strong Corporate group SSC 0.1 4 0.4

Use of latest technology 0.07 3 0.21

Existing knowledge of retail network

(Servis group) 0.07 3 0.21

Customer service 0.07 4 0.28

Good Quality (durability, comfort, ) 0.03 3 0.09

WWEAKNESSEAKNESS  

Lack of Industry data 0.1 3 0.3

New and unknown brand 0.08 2 0.16

Sales oriented rather than market

orientation 0.05 1 0.05

New in ladies fancy footwear 0.1 3 0.3

Dealing with uneducated cottage

industry (Suppliers) 0.08 2 0.16

Limited colors 0.08 1 0.08

 Total 1.00 2.85

41

External Factor Analysis – EFEExternal Factor Analysis – EFE

FFACTORACTOR

WWEIGHEIGH

TT

RRATEATE

TTOTALOTAL(1 – 4)(1 – 4)

OOPPORTUNITIESPPORTUNITIES::

Growing market 12 Billion/ yr 0.10 3 0.3

Setting up a wide retail network 0.15 4 0.6

Very few brands in the market

(Brand building) 0.15 4 0.6

To go multinational 0.03 3 0.3

Serve multi-markets 0.07 3 0.21

TTHREATHREAT::

Strong competition (old brands 35

yr old) 0.10 1 0.1

China cheap production 0.15 1 0.15

International brands catering to the

target market 0.05 2 0.1

Dealing with uneducated vendors 0.05 3 0.15

Unreliable lead times 0.15 1 0.15

 Total 1.00   2.66

42

GE MatrixGE Matrix M

ark

et A

ttra

ctiv

enes

s

4

3

2

1

Medium Attractiveness

Average Competitive

Position

4 3 2 1

Business Strength

After analyzing the SWOT and plotting the external factors and internal factors on the

GE matrix, Soul falls in the category of cash cow. The category shows that the industry

attractiveness is medium as industry growth rate and the GDP are the same that is 7%. In

this industry Soul is an average firm but it is due to the fact that it is new in the industry.

In 8 months it has captured 1% share in this highly fragmented market.

43

Customer Analysis Customer Analysis

Customer ProfileCustomer Profile

The customers that Soul is targeting are the urban females may it be professional or

non-professional females who are style and fashion conscious. These ladies not only

want style and fashion but along with this they also want comfort and good quality

shoes.

Customer DemographicsCustomer Demographics

The age of our targeted female’s market varies between 18 years to 35years. This

variable shows that these females are young, single or married having one or two

kids. The targeted segment is educated, one who has at least done matriculation. They

have a good fashion sense and can differentiate between good and bad quality

products. The minimum income level of the targeted audience is thirty thousand. Soul

is targeting the segment of the upper middle and upper class.

Psychographic SegmentationPsychographic Segmentation

The psychographics gives an insight of the activities, interests and opinions of our

target audience. The target audience is quite trendy, stylish and liberal. they like to

hang out, party and like to socialize. They want to keep pace with on going

modernization and want to adopt the latest fashion trends but at the same time they

follow traditional styles according to the event. Females are demanding rapid change

in designs as fashion is changing quite frequently.

Behavioral SegmentationBehavioral Segmentation

The major benefits that customers seek are good quality and comfort. The target

market is females who are prone to frequent shopping. Their buying of shoes can be

on impulse basis as well they buy shoes on various occasions like wedding, EID,

basant and other festivals. Target audiences of shoes are informed audience who

know what type of shoes are in fashion and where kind of shoes are available. A

44

survey on consumer behavior of the targeted audience towards shoe shopping showed

that females tend to buy shoes very frequently.

Important changes taking place in SegmentImportant changes taking place in Segment

If we take a glimpse of past regarding the buying behavior of shoes, limited colors were

available in the market and even females were unaware of the fact that they will respond

positively towards variety of colors that match with their clothes. But with the passage of

time this need was realized and firms started providing variety of colors which was

appreciated

Previously design of high heels was not available in low heels or flat shoes but now firms

are providing a single design in variety of heels or flat shoes. This is a very recent trend.

Market Served by Soul in the overall Shoe Industry

P1 P2 P3

M1

M2

M3

M1 = Gents P1 = Fashion shoes

M2 = Ladies P2 = Athletic shoes

M3 = Kids P3 = Orthopedic shoes

45

Market Served by Soul in the Fashion ShoeMarket Served by Soul in the Fashion Shoe

IndustryIndustry

P1 P2 P3

M1

M2

M3

M1 = Gents P1 = Casual

M2 = Ladies P2 = Semi-formal

M3 = Kids P3 = Formal

While defining the market served in the overall shoe industry, Soul is only catering to the

ladies fashion shoe industry. The ladies fashion shoes is further categorized into three

areas i.e. casual, semi-formal and formal shoes and Soul is serving all these three

categories in the ladies shoe market. So in shoe industry soul focuses in single market

strategy whereas in ladies fashion shoes they have adopted the market specialization

strategy.

46

Defining Soul’s Market BoundariesDefining Soul’s Market Boundaries

Soul’s Market boundary can be defined as it is catering to handmade shoes in the ladies

fashion shoe market.

47

Orthopedic Shoe

Athletic Shoe

Work Shoe

Fashion Shoe

Gents

Ladies

Kids

Hand made

Semi machine made

Machine made

Technology (How)

Customer Function/usage(What)

Customer groups(Who)

Marketing Plan – Senora Marketing Plan – Senora

Collections Collections

Identifying the Segment of this ProductIdentifying the Segment of this ProductThe segment which Soul has targeted for “Senora Collections” is the young urban female

married or single, professional or non-professional with an income level of above thirty

thousand. The target segment for this product is the same that Soul Collections was

earlier targeting. The main reason for the same target audience is that the new product

will be an augmented product for the same audience. Senora would be something that

will fulfill their latent demand which previously was not being fulfilled.

The target customer’s decision of buying our product is influenced by influencers which

are usually family or friends

Segment - Urban Females of Lahore  

Lahore population Total 8,896,000female population of Lahore 52% 4625920market Size female (urban) 40% 1850368lower and middle class urban female 70% 1295258upper middle and upper class female 30% 555110

Identify the Strategic Group you want to Join Identify the Strategic Group you want to Join In the ladies fashion shoe market, strategic groups can be broadly categorized

geographically. Geographical categorization refers to the number of outlets that each

company has in different regions. The strategic groups in ladies fashion shoe industry can

be defined as

1. Ladies shoe regional 2. Ladies shoes national

Ladies shoes national group comprises only of Stylo. Stylo is the only brand that has

adopted the strategy to go national in the country

48

Ladies shoe regional comprises of ECS, Milli, Soul Collections and other shoe retailers.

Their shoe shop outlets are confined in one city only. Particularly ECS, Milli and Soul

have located their outlets in Lahore city.

The Soul Collections is in national ladies shoe category but the Senora Collections will

be initially launched regionally. But the target of this product line is be available

nationally.

49

Marketing Mix Marketing Mix

ProductProduct

NameA soul collection is launching its new brand named as Señora collections which is

Spanish word meaning ‘a lady’. As target market is females that why this name has been

chosen.

OverviewWhen looking at the fashion shoe industry of Pakistan at a glance, it’s quite obvious that

the shoe retailers order shoes keeping in view the seasonal changes in demand like open

shoes for summers, pumps or close for the winters and the party wears. But what they

At the start of every season all major cloth shops have this information about what

type of cloth, designs and what color schemes will be offered by them to their

customers in the upcoming seasons. Soul collection will go for collaboration with

renowned cloth houses and will offer shoes i.e. formal, semi-formal and casual

shoes that exactly go with cloths bought from these cloth houses. The selection

and design of shoes for a particular season will be done keeping in view the colors

and designs that will be offered in that season and various cloth fabrics will also

be used in shoes to match cloths bought. The design and style of the footwear will

change because the demand of this product is seasonal.

Other than that soul will offer its customers with some accessories like belts,

jewelry items and hand bags made out of the same cloth and design that is of

shoes.

Benefits Customers are offered with total solution

Previously females used to take cloths to a number of shoe shops and match colors

accordingly. Now they will know that Soul collection is offering all that they want

and wish for - matching shoes and accessories that go with the style and fashion of

the particular season.

50

Providing Place and Time Utility

The idea of making the accessories and footwear matching and in line with the latest

trends of the clothing will give the savvy and fashion conscious females place and

time utility there by providing a one stop shop.

Up-to-date fashion style

As Soul Collections will be collaborating with the clothing brand and clothing house,

so the company will easily get to know what styles, trends and colors that will be in

vogue for the particular or coming season. It will provide an edge to Soul Collections

as they will be designing their shoes accordingly with the demand of the season.

Time saving

Earlier females used to be going to different places for buying the matching

accessories and shoes. They had to explore the market to get the best of accessory and

shoes matching. Many of the times it so happens that they don’t find the accurate

accessory and shoe that matches best with their attire. All this activity is very time

consuming. Providing the necessary items of matching under on roof will hugely save

females time because Soul will engage itself in “exploring the market” activity which

earlier the females were doing.

Easy choice /selection

Keeping in view the variety of apparel that will be offered in the coming season, Soul

Collections will be designing shoes accordingly. The color combinations of the

upcoming fabrics will be very critical to the designing of footwear and the shoes will

be designed either matching with the attire or in contrasting colors there by giving

variety of choice to our target customers.

Features Different fabrics used in shoes Variety in collection Matching and contrasting color scheme in every design

Product Line Casual Party Semi-formal Bridal

Promotional StrategyPromotional Strategy

51

The promotional activities will be conducted to create awareness in such a way that

people believe that Soul has the ultimate solution to their highly stylized need for shoes

and accessories to match the cloths they are buying. These Souls fashion shoes, bags,

belts and jewelry items are the best option to go with clothes they have purchased.

Every cloth house will add Soul’s matching shoes and accessories in their catalogues and

have models worn those shoes with the brands clothing posters

ATL and BTL activities

Billboards at attractive locations like in Liberty market, DHA, Cavalry Bridge,

Ferozpur Road, jail Road and link road.

TVC on channels that are mostly watched by target market like

o Indus

o Hum

o Geo entertainment

o ARY

o TV one

o The music

o AAG

o Mtv

Radio Ad

o 106.2 Hum FM

o FM 101

o FM 103

o FM 91

o FM 89

o FM 100

52

Positioning Strategy Positioning Strategy

The positioning strategy for Senora Collections is attribute based strategy. Positioning

strategy is developed in such a way to emphasize on unique and distinctive benefit.

Senora‘s customer are the people who believe that Soul collection is a place where they

can meet their fashion needs and are assured of the fact that whatever they are looking for

available on the outlet.

Senora Collections offer an array of shoes and accessories which is designed in line with

the upcoming cloths colors, fabric and design which an innovative one stop shop solution

suited to the style needs of today’s women not catered by any competitor before.

Tag line

One stop – style shop

PlacementPlacementInitially Lahore will be a focus and Señora collections will be placed at regular outlets of

Soul collections as people are aware of them and are already located at convenient and

attractive places.

Outlet locations

Liberty Market

Link Road, Lahore

Shoe Planet, MM Alam Road, Lahore

Collaboration

Collaboration is planned with the following renowned cloths shops of Lahore

Saleem Fabrics

Bareeze’

International Cloth Depot

Fiza

Aroshi

Banarsi Raheem Brothers from Karachi

Al-Fajr

53

Moon Banarsi

Collaborations with designers (like Khaadi, Hajra Hayat, Karma, Paisley, Maria B and

Deepak Perwani etc) are dependent on the customer response for above mentioned cloth

shops. If the response is overwhelming, then Soul Collections will enter the designer

Haute Couture market of Pakistan.

Pricing Pricing As the Senora Collections launched by Soul will be one of a kind idea of providing

footwear to match the upcoming trends of apparel. It will be the unique selling point for

Senora Collections. Another important thing for determining the price is that the

collaboration is with all the leading cloth retailers who are charging high price because of

their established name. All these aspects have to be considered while determining the

price of Senora Collection shoes and accessories. The best pricing here would be

Premium pricing as it will be a unique product offered to the ladies. Apart from this, it

is largely observed that ladies have always been crazy to go for exact matching and

unique items. So the premium pricing will best suit here.

Below table shows the approximate or average total cost and price of casual, fancy and

bridal shoes.

Variable CostsCasual Per

Pair RupeesParty Per Pair

RupeesBridal Per

Pair Rupees

Packaging Box 6 8 11Labor 25 55 85Raw material 100 250 400Transportation Cost 5 5 5Total Variable Cost 136 318 501Fixed Cost Per Pair 36 36 36Total Cost Per Pair 172 354 537Approx Price Rupees Minimum 500 1000 2000

54

Cost Structure Cost Structure The cost structure that soul needs to consider while determining the price largely includes

variable and fixed costs.

The fixed costs include

DSL 2000Utility 70000Rent 450000

On average Soul Collections stocks 15000 pairs of shoes on each shop. So the fixed cost

per pair would be approximately Rs 36

The approximate fixed and variable cost structure is shown below

Packaging StrategyPackaging StrategyPackaging for Senora collections ensures that shoes are kept in a secure box at the same

time look contemporary. It is to focus that Senora collections’ packaging have a definite

identity in the market in terms of shape and color and for this purpose new packaging is

suggested i.e.

Variable CostsCasual Per

Pair RupeesParty Per Pair

RupeesBridal Per

Pair Rupees

Packaging Box 6 8 11Labor 25 55 85Raw material 100 250 400Transportation Cost 5 5 5Total Variable Cost 136 318 501Fixed Cost Per Pair 36 36 36Total Cost Per Pair 172 354 537

55

Distribution strategyDistribution strategySoul collections follows selective distribution strategy as it explores potential areas that

are preferred by customers and opening its outlets at these locations to ensure availability.

For Senora collections distribution will initially be focused in Lahore region on soul’s

outlets that are already operating in various areas. It is a better option as target market is

now aware of Soul’s name

Profit and Loss Statements Profit and Loss Statements

Profit and Loss Statement Current Year1st Year 30%

increase2nd Year 35%

increase

Sales 150000000 195000000 263250000

COGS 37500000 48750000 65812500Gross Profit 112500000 146250000 197437500Expenses 56250000 73125000 98718750EBIT 56250000 73125000 98718750Taxes (15%) 8437500 10968750 14807813Net Income 47812500 62156250 83910938

56

Marketing OpportunitiesMarketing Opportunities

BuyersBuyersPotential customers are those who visit and are regular customer of cloth houses but do

not visit Soul collections. The target buyers are the female

Product and service development and Product and service development and innovation innovation

Proper platform for training sales persons i.e. train them on how to deal and

convince customers for buying a shoe. Other than that they should have fashion

knowledge and must be able to guide customers for purchasing shoes that go with

their styles.

Time between customer demand for a shoe and the time in which a sales person

brings that shoe has to be minimized to 1 min

Marketing ObjectivesMarketing Objectives

1. Assumptions Economic Assumptions

o The size of segment of urban females in Lahore is an approximation and estimation.

Technological Assumptionso Raw materials especially fabric will be provided by the retail houses with

whom the collaboration is made.

o No R & D will be required as the trend forecast will be primarily done by

the retail cloth outlets

Socio-political Assumptionso Market is medium to attractive that’s why taxes are expected to rise in the

coming fiscal year

o Customers are highly conscious about their styles and are concerned about

aesthetic feel

o Customers are aware of the fashion needs

57

o The trend of matching and contrasting shoes and accessories with attire is

increasingly becoming popular

2. Primary Objectiveso Financial Objectives

The financial objectives of Soul Collections are to boost the sales

and increase it from the current level to 35% increase in the next

three years.

A 50% increase in current market share is expected in next three

years

o Entrepreneurial Objectives

i. Key success factors 1. Availability of matching shoes and accessories

2. For see the trends of colors and styles in the coming seasons

3. Attractive product presentation

4. Well-trained and experienced work force

5. Clear image in minds of target audience that Soul collections

has matching shoes and accessories as well as has widest range

of design in each category as clear market position conveys a

clear and consistent company image.

58

Three Years Marketing SMART Objectives of Three Years Marketing SMART Objectives of Senora CollectionsSenora Collections

The expected launch of the Senora Collections will be in autumn 2008. In August 2008, a

campaign will be held to create awareness of Senora so that people become fully aware

of this product before the peak season of Eid and weddings. The research done highlights

the potential outlets to target initially will be Saleem Fabrics, Bareeze’, International

Cloth Depot, Aroshi, for casual and party and Banarsi Raheem Brothers from Karachi,

Al-Fajr and Moon Banarsi for the bridals.

To sustain the competitive advantage that Soul Collections will have with the launch of

Senora Collections, entry barrier will be created by making a deal to stay with these retail

cloth houses to stay with Soul and not collaborating with any other firm at least for the

next three years

By the launch of Senora Collections, the target market share of at least 50% increase will

have to be achieved in the three years. This target is likely to be achieved as in one year

souls has already captured 1% of the market share by providing more or less the same

product its competitors are offering.

Soul 3 Year Market ShareAnnual Sales Industry Sales

Market Share %

% Increase in Share

Soul Current Year 150000000 12000000000 1  Soul Next Year 195000000 12840000000 1.5 50Soul Coming Year 263250000 13738800000 1.9 26.6

Targets of opportunity Initially in the first year the target will be the large retail cloth outlets but after the

over whelming response of customers, collaborations with the high end haute

couture Pakistani boutiques will be done.

Geographical expansion by launching Señora collections into other cities after

collaborating with potential cloth houses situated in area.

59

Schedule of Marketing PlanSchedule of Marketing Plan

AACTIVITIESCTIVITIES DDURATIONURATION

Research Pest & Porter Consumer behavior towards this

idea through questionnaires.

2 months

Analysis of Findings 2 -3 weeks

Detail marketing plan (informal discussion on Collaboration Idea)

3 - 4 weeks

Presentation marketing head 1 day

Approval 1 week

Implementation of plan 1 - 2 months

Promotional Activities 1 – 2 months

Launch August 2008

60

Appendices Appendices

Buying Preference

Target Audience facing problems while searching matching shoes

61

Yes87%

No13%

Yes

No

Preference for our Product

62

Yes92%

No8%

Yes

No

ReferencesReferences

www.millishoes.com

www.servis.com

www.styloshoes.com

www.ecsehsan.com

www.lahorebazar.com

www.google.com

www.quickmba.com/strategy/ matrix / ge -mckinsey/

www.valuebasedmana ge ment.net/methods_ ge _mckinsey.html

www.brs-inc.com/models/model17.asp

www.educationsupport.co.uk/downloads/rjh/BOSTON_CONSULTING_GROUP_MATRIX.pdf

www.perleybrook.umfk.maine.edu/slides/spring%202007/BUS411/BUS_411_day_12.ppt

http://www.answers.com/topic/lahore?cat=travel

http://www.world66.com/asia/southasia/pakistan/lahore/peoplehttp://en.wikipedia.org/wiki/Lahore

63