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TABLE OF CONTENTS
EXECUTIVE SUMMARY 9
INTRODUCTION 10-16
COMPANY PROFILE 17-31
PRODUCT RANGE 32-42
MARKETING : BASIC FUNDAMENTALS 43-45
CONSUMER BEHAVIOUR 46-52
PROBLEM FINDINGS 53-59
OBJECTIVE RESEARCH 60-62
LIMITATIONS 63-65
RESEARCH METHODOLOGY 66-69
DATA ANALYSIS 70-77
RATE THE CHARACTERISTICS OF LAKHANI 78-84
- Advertising 85-90
- Lakhani Retail Revolution Limited 91
SWOT ANALYSIS 92-93
LEARNING 94-95
MARKETING SEGMENTATION 96-
105
NEWS & CASES 106-107
LAKHANI LATEST ACHIEVEMENTS 108-
112
FINDINGS 113-114
RECOMMENDATIONS 115-116
CONCLUSION
BIBLIOGRAPHY
APPENDIX
1
EXECUTIVE SUMMARY
Footwear market is estimated at 550 million pairs, of which 450 million pairs are
in the form of casual footwear, such India’s total as ethnic footwear, rubber and
leather slippers, sandals etc, but not boots and shoes. Leather footwear has a
sizeable share, and production is estimated to be at 200 million pairs, including for
exports. The footwear market is expected to grow at 8-10%, based on recent
trends. In value terms, the sector represents a market of US$ 2.17 billion, of which
exports account for approximately 35%.
2
INDIAN FOOTWEAR INDUSTRY
Until recently, a major part of the demand was met by the unorganized, informal,
small sector. Branded shoes, produced by large Indian producers, multinationals
producing in India and imports, account for only less than 20% of the entire
market. The branded footwear market is estimated to be 100 million pairs, made up
of 5 million pairs of sports and athletic shoes and nearly 95 million pairs of shoes
and boots. The segment is dominated by men’s footwear, and there are not more
than three women’s brands known nationally.
Women’s footwear purchases are mostly in the casual footwear market, ruled by
unbranded goods. Formal footwear expenditure (in 1997) by the upper segment of
urban women (2.8 million households in the SECA/B class) was estimated to be
less than US$ 8.69mn, which is less than 1% of the total market size. However,
ladies brands in footwear are now on the rise, with several new players focusing
on the formal dress needs of the working women.The largest players in footwear
are Lakhani Shoes, an Indian brand that has performed exceedingly well in shoes
with leather as well as non-leather soles, and
Bata, the international brand present in India for close to 100 years, which has a
24% market share. Lakhani, with a production of 10.5 million pairs, claims to
enjoy a market share of 36% in the leather footwear segment and
22 % in the non-leather sole segment. Exports constitute 30% of Lakhani’s sales.
Both Bata and Lakhani have launched international brands in India through tie-ups:
3
Bata with Hush Puppies, Lakhani with Burberry’s.An interesting feature of the
market is the presence of several international players in the informal and sport
shoes segment, which has a total market of only 5 million pairs. The major MNC
players are Reebok, Adidas and Nike. Italian brands Lotto and Fila have franchise
tie-ups in India, although the brand is not aggressively promoted. Reebok, with a
premium positioning, sells 0.2 million pairs in the domestic market in 1999, posted
breakeven revenues of US$ 15.21million, and is adding a chain of sport
goods and fitness stores to complement its premium Rockport brand.Adidas is
aiming to become the leader in the sports footwear and sports wear market, which
is estimated to be at US$ 217.3million. The company uses the manufacturing set
up of an Indian company, Lakhani, to manufacture the Adidas range in India. Nike
Shoes purchases its products from a contract supplier, and sells through select Bata
showrooms and a few departmental stores. Other international brands like
Woodland, Lumberjack and even Bally have set up shop in India with production
or assembly facilities.
Indian leather industry is the core strength of the Indian footwear industry. It is the
engine of growth for the entire Indian leather industry and India is the second
largest global producer of footwear after China.
Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks,
Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and
Colehaan are manufactured under license in India. Besides, many global retail
chains seeking quality products at competitive prices are actively sourcing
footwear from India.
4
While leather shoes and uppers are produced in medium to large-scale units, the
sandals and chappals are produced in the household and cottage sector. The
industry is poised for adopting the modern and state-of-the-art technology to suit
the exacting international requirements and standards. India produces more of
gent’s footwear while the world’s major production is in ladies footwear. In the
case of chapels and sandals, use of non-leather material is prevalent in the
domestic market.
Leather footwear exported from India are dress shoes, casuals, moccasins, sport
shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear exported from
India are Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other
materials.
With changing lifestyles and increasing affluence, domestic demand for footwear
is projected to grow at a faster rate than has been seen. There are already many
new domestic brands of footwear and many foreign brands such as Nike, Adidas,
Puma, Reebok, Florsheim, Rockport, etc. have also been able to enter the market.
The footwear sector has matured from the level of manual footwear manufacturing
methods to automated footwear manufacturing systems. Many units are equipped
with In-house Design Studios incorporating state-of-the-art CAD systems having
3D Shoe Design packages that are intuitive and easy to use. Many Indian footwear
factories have also acquired the ISO 9000, ISO 14000 as well as the SA 8000
certifications. Excellent facilities for Physical and Chemical testing exist with the
laboratories having tie-ups with leading international agencies like SATRA, UK
and PFI, Germany.
5
One of the major factors for success in niche international fashion markets is the
ability to cater them with the latest designs, and in accordance with the latest
trends. India, has gained international prominence in the area of Colours & Leather
Texture forecasting through its outstanding success in MODEUROP. Design and
Retail information is regularly made available to footwear manufacturers to help
them suitably address the season's requirement.
The Indian Footwear Industry is gearing up to leverage its strengths towards
maximizing benefits.
Strength of India in the footwear sector originates from its command on reliable
supply of resources in the form of raw hides and skins, quality finished leather,
large installed capacities for production of finished leather & footwear, large
human capital with expertise and technology base, skilled manpower and relatively
low cost labor, proven strength to produce footwear for global brand leaders and
acquired technology competence, particularly for mid and high priced footwear
segments. Resource strength of India in the form of materials and skilled
manpower is a comparative advantage for the country.
In a Nutshell
There are nearly 4000 units engaged in manufacturing footwear in India. The
industry is dominated by small scale units with the total production of 55%. The
total turnover of the footwear industry including leather and non-leather footwear
is estimated at Rs.8500-9500 crore (Euro 551.3-1723.1 Million) including
Rs.1200-1400 crore (Euro 217.6-253.9 Million) in the household segment.
6
India's share in global leather footwear imports is around 1.4% Major Competitors
in the export market for leather footwear are China (14%), Spain (6%) and Italy
(21%).
The footwear industry exist both in the traditional and modern sector. While the
traditional sector is spread throughout the country with pockets of concentration
catering largely to the domestic market, the modern sector is largely confined to
select centres like Chennai, Ambur, Ranipet, Agra, Kanpur and Delhi with most of
their production for export.
Assembly line production is organized, and about 90% of the workforces in the
mechanized sector in South India consist of women. In fact, this sector has opened
up plenty of employment opportunities for women who have no previous
experience. They are trained to perform a particular function in the factory itself.
The estimated annual footwear production capacity in 1999 is nearly 1736 million
pairs (776 million pairs of leather footwear and 960 million pairs of non-leather
footwear).Region-wise share of total estimated capacities is as follows:
RegionLeather
Shoes
Non-leather Shoes
Leather Shoe
Uppers
Leather Sandals
Non Leather Sandals
PercentageTamil Nadu 26 5 54 1 0
Delhi & up North 10 77 4 1 60
Agra, Kanpur 45 0 32 62 0Calcutta 12 0 2 3 0
Bangalore 3 3 4 0 0Mumbai 4 2 1 32 0Others 0 13 3 1 40Total 100 100 100 100 100
7
Shoes manufactured in India wear brand names like Florsheim, Gabor, Clarks,
Salamander and St. Micheal’s. As part of its effort to play a lead role in the global
trade, the Indian leather industry is focusing on key deliverables of innovative
design, consistently superior quality and unfailing delivery schedules. India in
itself has a huge domestic market, which is largely untapped.The Indian footwear
industry is provided with institutional infrastructure support through premier
institutions like
Central Leather Research Institute, Chennai, Footwear Design & Development
Institute, Noida, National Institute of Fashion Technology, New Delhi, etc in the
areas of technological development, design and product development and human
resource development
8
MAJOR PLAYERS
Comparison of key ratios with the companies of comparable size in the same
industry group*.
Major players or the competitors of the lakhani shoes ltd.
9
Corporate Philosophy
Steeped in a philosophy that has at its core innovation, technology and
advancement, we at Lakhani, pride ourselves over and above everything else on
our healthy and heart-felt respect for the human ethos, which projects itself in the
expectancy and excitement with which one greets the arrival of the new combined
with a sincere and deep regard for the old, which is appreciative of and adopts at
every stage the unique balance between modernization and tradition.
Lakhani as a brand is constantly evolving to keep pace with the changing trends,
styles, beliefs, and aspirations of people while maintaining the sanctity of certain
traditions like workmanship and good value.
Our Credo
To ensure that the method we use is the latest technology the world over. To
follow the highest standards of honest workmanship in whatever we make. To
10
Walk the extra mile to ensure customer satisfaction worldwide. To remain a true
cosmopolitan to the spirit. To remain a great corporation to associate with, to work
for.
11
Technology
Better methods. Better tools. Better technology. Enhanced productivity. Finest
quality. Greater customer satisfaction. Lakhani has a lot of firsts to its credit.
It has introduced a new material called TPU (Thermo Plastic Urethane), for high
quality footwear, into the country. This material has better properties than PVC or
TPR (conventional materials used for footwear).
Lakhani has also been instrumental in introducing EVA (Ethyl Vinyl Acetate),
which is a direct injection molding used for making sole for the first time in Asia.
This technology uses very light material & the footwear is made with the direct
injection system.
Lakhani also pioneered the PU (Poly Urethane) Technology in India for the
footwear industry.
12
Besides these Thermo Plastic Elastomer has been developed for the first time in
India at Lakhani. A CAD/CAM design center is in place at Lakhani. The Sympatex
waterproof technology in footwear was pioneered by also Lakhani. Lakhani is also
the first company to market PPE products for safety purpose
Manufacturing Excellence
We call them Humantech Centers. When people visit us they see them as centers
of Excellence for manufacturing shoes where technology works in perfect tandem
with human creativity. Lakhani has Humantech centers at four locations in India,
the latest being the Uttaranchal project which was launched recently to boost the
production of world-class footwear. This Greenfield plant near Dehradun will
increase the company's existing production capacity of 18 million units’ pa by
200,000 units
13
The locations of the four are Humantech Centers:
GHARAUNDA, HARYANA (APPROX. 95 K.M. FROM DELHI)
Gharaunda is the first plant of its kind in this part of Asia that is equipped with
Desma machines for PU Direct Injection Moulding. Using PUF technology and
Computer Aided Systems this vertically integrated plant produces Industrial Safety
Shoes that are made to European standards. Sympatex TEX booties as well as
ordinary booties are also made here. Beside these Gharaunda has a design center
where an ambitious team of young designers working in tandem with experienced
technologists.
Lakhani puram, Haryana (102 k.m. from Delhi)
About 14 km from Karnal this Humantech center, spread across 50 acres of
landscaped greens, has 16 lines for Cement Last Construction footwear, 15 lines
for Direct Injection Mounded footwear and 3 lines for EVA Direct Injection
footwear. It is a manufacturing base for slippers and sandals that put the Chinese
sheet slippers to shade, teenager's shoes with very light
PVC soles as well as leather soles, shoes for both sexes as well as booties for
ladies.
14
Karnal, Haryana (124 k.m. from Delhi)
Lakhani’s first manufacturing center caters essentially to the domestic market and
produces Cement Last Construction as well as leather sole footwear for both men
and women
Dehradun in, Uttaranchal
This new Humantech center makes Cement Last Construction footwear as well as
the comfort range of sandals for ladies. It will soon also produce sports shoes for
the likes of Reebok and Nike as well as for the domestic market.
15
Product Range
Lakhani has created a repertoire of 10 well developed brands, each one of which
has been painstakingly nurtured to cater to its specified target group. Care has been
taken to create a specific identity for each brand and to provide the latest
international designs.
Today, the new range from Lakhani is all about style, design, and comfort. The
range imbibes the spirit of fun and is trendy to the core. There is a product for
every season and occasion.
Force 10 has long perceived to be the flagship brand of Lakhani, Force 10, today is
Synonymous with value for money fashion sports shoes. It is a symbol of family
force of Lakhani which has 10 members. Targeted at the age Group of 13-28 year
old boys and men, Force 10 produces over 600,000 pairs annually. Available in the
range of Rs. 350 to Rs. 1250, Force 10 looks with
“Life at a force of 10”
16
Coolers are the brand of men’s sandals and slip-ons. These sandals cater to the age
group of 21-45 years and are a stylish and comfortable accompaniment to any
apparel. The range is amongst the most sought after during the summer months and
over 1,000,000 sandals are produced every year. In the price range of Rs. 295 to
Rs. 899, Coolers are indeed
“Cool comfortable sandals”
Foot fun has been created as an exclusive brand for children in the age group of 1
to 12 years. Children have their own peculiar requirements so far as footwear is
concerned. The Lakhani Foot fun addresses all concerns of style, comfort, fitting as
well as gives special emphasis to the flexibility of the footwear. Bright and vibrant
colors are to the USP of the range and the maintenance proof products add value
for the children and parents alike.
17
The products in this category include sandals, infant and toddler range of unisex
shoes, sports shoes, and school shoes. The range is available in the price range at
Rs. 135.00 to Rs. 395.00 and sells over 2,400,000 pairs annually. It conforms to the
tag line.
“Non Stop Fun”
Fortune comprises of men’s formal and casual shoes in Leather from the House of
Lakhani. These shoes, meant for today’s students and executives in the age group
of 18-45, combines the latest trends in formal wear abroad in to the most formal
footwear. It is a sign of good luck, a symbol of being prosperous. The Fortune
collection produces 600,000 pairs of shoes every year. In the price range of Rs. 850
– 1495, these shoes promise,
“It takes some men places”
18
A symbol of light weight footwear, it gives a feeling of floating in air. It is the
most important brand of Lakhani as it covers all segments, varieties, colours,
designs and price ranges. It is a mass brand of the company. Gliders cater to the
specific need of normal, semi-formal footwear as well as beachwear for the age
group of 2-45 years. This range has something or the other to cater to the
requirements of children, young men and women. Over 45, 00,000 pairs of Gliders
footwear are produced each year in the price range of Rs. 125 to Rs. 1795. Gliders
conform to the adage:
“Some things are just right”
19
Senorita is a brand that caters to the high design and fashion styling amongst
young women. Bringing out the flair of each style, Senorita invites young women
in the age group of 14-26 to be comfortable as well as look the most delicately
brought out the latest designs for this brand. Over 4, 50,000 pairs are produced in
this range in the price category of Rs. 495 to Rs. 995. Senorita invites women to
retain their youthfulness, vibrancy and energy through its tag-line
“Hey woman, stay girl”
Geo Sport exclusive professional sports shoes for 14-38 year olds; Geo Sport is
targeted at budding and professional sportspersons. The shoes cater to niche of
20
professional sportswear, 15,000 pairs of shoes are created every year in the price
range of Rs. 895 - Rs. 1695. Geo Sport is important to serious player
“Because winning matters”
Warrior a range of safety shoes for institution sales and workers of the age group
21- 45 years comprise Warrior, because of its solid sturdy looks, Warrior is also
becoming quite a rage with the young boys and men. The product line is available
from Rs. 685-1195 and sells 4, 00,000 pairs annually.
Windsor provides casual and formal shoes for the young executives in the age
group of 21 to 40 years. This brand caters to the need for power dressing for the
21
young executives and allows the busy executive to make a statement in power
dressing, which is as much at ease in the boardroom as in the cocktail lounge.
The idea is to be comfortable wearing these attractive leather formal shoes over
long periods every day, in keeping with the hectic lifestyles today. Over 750,000
pairs of Windsor are produced annually in the price range of Rs. 895 to Rs. 1999.
Windsor truly believes
“What’s life without a little comfort?”
Tiptopp caters to providing comfortable and fashionable women’s slip-ons and
sandals. This range is synonymous with comfort, durability and neat styling.
Targeted at ladies in the age group of 24-40 years, this range sells 7, 50,000 pairs
annually. Available in the price range of Rs. 325 to Rs. 550.
MARKETING: - BASIC FUNDAMENTALS
22
MARKETING
Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating, offering, and exchanging
products of value with others.
“Philip Kotler”
This definition of marketing rests on some core concepts. These are – needs wants
demands, products (Goods, Services and Ideas), values, cost, satisfaction,
exchange, transaction, relationship, and networks, markets, and marketers.
Marketing is a process of exchanging products of value with others with giving
each of them maximum benefit. Marketing concept is a business philosophy that
makes waves during 1950’s. The marketing concept holds the key to achieving
organizational goals consists of being more effective than competitors in
integrating marketing activities toward determining and satisfying the needs and
wants of target markets
The marketing concept has been expressed in man colorful ways.
“Meeting needs profitably.”
“Find wants and fills them.”
“Love the customer, not the product.”
“Have it your way.”
“You’re the boss.”
“Putting people first.”
“Partners for profit.”
23
INTEGRATED MARKETING
When all company’s department work together to serve the customer’s interest, the
result is integrated marketing. Integrated marketing works on two levels. First, the
various marketing functions like sales force, advertising, product management,
marketing research and so on to work
Together. Second marketing must be well coordinated with other company
departments. Marketing does not work when it is merely department. It works only
when all employees appreciate their impact on customer satisfaction.
SOCIETAL MARKETING
The societal marketing concept holds that the organization’s task is to determine
the needs, wants, and interests of target markets and to deliver the desired
satisfaction more effectively and efficiently than competitors in a way that
preserves or enhances the consumer’s and the society’s well being.
The societal marketing concept calls upon marketers to build social and ethical
considerations into their marketing practices. They must balance and juggle the
often conflicting criteria of company profits, consumer wants satisfaction and
public interest.
CONSUMER BEHAVIOUR
24
Now consider the purchase of a quart of orange juice. You purchase this product
when you do your grocery shopping once per week. You have a favorite brand of
orange juice and usually do your grocery shopping at the same store. When you
buy orange juice, you always go to the same place in the store to pick it up, and
25
Consumer Buying Behavior
The decision processes and acts of final household consumers associated
with evaluating, buying, consuming, and discarding products for personal
consumption.
Consider the purchase of an automobile. You generally will not consider
different options until some event triggers a need, such as a problem
needing potentially expensive repair. Once this need has put you “on the
market”, you begin to ask your friends for recommendations regarding
dealerships and car models. After visiting several dealerships, you test
drive several models and finally decide on a particular model. After picking
up your new car, you have doubts on the way home, wondering if you can
afford the monthly payments, but then begin to wonder if instead you
should have purchased a more expensive but potentially more reliable
model. Over the next five years, the car has several unexpected
breakdowns that lead you to want to purchase a different brand, but you
have been very happy with the services of the local dealership and decide
to again purchase your next car there.
In this particular case, the following generic model of consumer decision-
making appears to hold:
========> Need recognition
=========> Information search
==========> Evaluation of alternatives
==========> Purchase decision
==========> Post purchase behavior
never notice what other brands are on the shelf or what the prices of other brands
are. How is it that the generic model above works differently in this second
scenario? Why does it work differently? Why would we generally need the
ministrations of a sales person in the sale of a car, but we generally do not need the
help of a salesperson in the purchase of orange juice?
How can the marketer of orange juice get a consumer like you to exert more effort
into information search or to consider alternative products? How is it that the
marketer of your brand got you to ignore alternative competing brands? What is
the involvement of salespeople in sales promotions that might be associated with
products such as orange juice?
Consumer behavior researchers are not so interested in studying the validity of the
above generic model, but are more interested in various factors that influence how
such a model might work and what are the factors, which influenced consumer-
buying behavior.
INFLUENCES ON THE GENERIC MODEL
26
External
Group
- e.g., cultural, family, reference group influence Environmental / situational
- e.g., time of day, temperature and humidity, etc.
Internal
Lifestyle, personality, decision-making process, motivation etc.
GROUP INFLUENCES ON CONSUMER BEHAVIOR
Culture
The set of basic values, beliefs, norms, and associated behaviors that are learned by
a member of society.
Note that culture is something that is learned and that it has a relatively long lasting
effect on the behaviors of an individual. As an example of cultural influences,
consider how the salesperson in an automobile showroom in the U.S. must react to
different couples that are considering the purchase of a car. In some subculture, the
husband will play a dominant role in the purchase decision; in others, the wife will
play a more dominant role.
Social Class
A group of individuals with similar social rank, based on such factors are
occupation, education, and wealth.
Reference Groups
Groups, often temporary, that affects a person’s values, attitude, or behaviors.
E.g., your behaviors around colleagues at work or friends at school are probably
different from your behaviors around your parents, no matter your age or stage in
the family cycle.
27
Opinion leader
A person within a reference group who exerts influence on others because of
special skills, knowledge, personality, etc.
Family
A group of people related by blood, marriage, or other socially approved
relationship.
INTERNAL INFLUENCES ON CONSUMER BEHAVIOR
Personality
A person’s distinguishes psychological characteristics that lead to relatively
consistent and lasting responses to stimuli in the environment.
We are each unique as individuals, and we each respond differently as consumers.
For example, some people are “optimizers” who will keep shopping until they are
certain that they have found the best price for a particular item, while other people
are “satisfiers” who will stop shopping when they believe that they have found
something that is “good enough. “If you are a salesperson in a retail shoe store,
how might you work differently with these two personalities?
Lifestyle and Psychographics
Lifestyle is a pattern of living expressed through a person’s activities, interests, and
opinions.
28
Psychographics is a technique for measuring personality and lifestyles to
developing lifestyle classifications.
Motivation: multiple motives
Consumers usually have multiple motives for particular behaviors. These can be a
combination of:
Manifest
Known to the person and freely admitted
Latent
Unknown to the person or the person
Involvement has to do with an individual’s
Intensity of interest in a product and the
Importance of the product for that person
The purchase of a car is much more risky than the purchase of a quart of orange
juice, and therefore presents a higher involvement situation. This modifies the way
that the generic model works.
As involvement increases, consumers have greater motivation to comprehend and
elaborate on information salient to the purchase.
TYPES OF CONSUME PROBLEM-SOLVING PROCESSES
29
Routine problem
Used when buying frequently purchased, low cost items
Used when little search/decision effort is needed
E.g., buying a quart of orange juice once per week
Limited problem solving
Used when products are occasionally purchased
Used when information is needed about an unfamiliar product in a familiar product
category
Extended problem solving
Used when product is unfamiliar, expensive, or infrequently purchased
E.g., buying a new car once every five years
POST-PURCHASE CONSUMER BEHAVIOR
Satisfaction
After the sale, the buyer will likely feel either satisfied or dissatisfied. If the buyer
believes that he received more in the exchange than what was paid, he might feel
satisfied. If he believes that he received less in the exchange than what was paid,
then he might feel dissatisfied. Dissatisfied buyers are not likely to return as
customers and are not likely to send friends,
relatives and acquaintances. They are also more likely to be unhappy or even
abusive when the product requires post-sale servicing, as when an automobile
needs warranty maintenance.
30
PROBLEM FINDINGS
Introduction
We started our business in Karnal (Haryana) way back in 1944. We made a
beginning as a small retailer sourcing shoes from small local manufacturers. In
1948, we started manufacturing our own footwear.
However, Lakhani as a brand name came into existence in 1954. We catered
mostly in domestic market in neighboring areas like Haryana, Himachal Pradesh,
Punjab and some parts of Pakistan till 1964. Thereafter, export market caught our
fancy and by 1968, we completely switched onto exports. And till 1983, we were
100% exported oriented unit in terms of sales. In 1983, we turned our attention
towards domestic market again. We introduced a new technology of PU
(Polyurethane) based sole shoes in the Indian market as we were exporting these
kinds of shoes to our international customers. At the same time, the second
generation of our family also entered the business.
Target Market
the premium segment does not offer volumes. The market up there is very small
and there are too many players in fray. Therefore, in order to grow by gaining in
volumes, we have moved towards catering to the middle and upper-middle class
segments, which offer a far higher off-take of footwear.
Our advertising and promotion strategy over the years has consistently aimed at
positioning Lakhani as a complete family footwear brand. Initially, we focused on
the upper class segment as our core target market. Later on, we shifted our
attention towards the middle and upper-middle class segment also.
31
Positioning
Till few months back, the customers perceived Lakhani as a comfortable, durable
and great value for money brand. We are trying to enhance that perception by
positioning Lakhani as a more vibrant and contemporary brand too. The new
positioning does not mean that we are moving away from the comfort, durability
and value planks. Those will always be there associated with Lakhani. So Lakhani
as an umbrella brand has become more fashionable in tune with the changed
market needs now.
Range offered by Lakhani
In 1991, we took a stock of the long-term view of our business and marketing
strategy. Thereafter, the Lakhani product range was divided into number of
categories with their own sub-branding under the umbrella Lakhani brand .'Force
10', fashionable sports shoes (not performance sports shoes) was the first sub-brand
launched by us. We have 'Fortune' for men's Formal and 'Windsor' for executive
range mostly for the people who are on the move. So we have three ranges in men's
shoe category. We have 'Coolers' which is a sandal for both men and women. For
women, we have 'Senorita' for more fashion conscious women and 'Tip-Top' for
married women who looks for more comfort. Then we have 'Gliders' which caters
to the entire family from 4-years to 50-years plus. It is positioned as a young brand.
In Gliders, we have three categories - Glider C for children, Glider P for teenagers
and Gliders A for adults. We also have 'Foot Fun' for children and 'Prefect' which
is children's school shoe. We also have 'Warrior' which is a shoe for industrial
applications with a safety benefit used primarily in factories and army. Besides
these 10 sub-brands, we also have a brand called A-Ha which is a hawai chappal,
catering to the lower class segment market. But A-Ha is not a sub-brand of
Lakhani as we do not cover it under our branding.
32
Market Share of Lakhani
In terms of number of pairs, it is very difficult to analyze because 75% of the
industry is in the unorganized sector. But according to certain Govt. agencies,
India produces about 1.1 billion pairs of footwear’s. In value terms, the industry
size should be around Rs.8,000 crore including exports. In the organized sector, we
are second to Bata with a turnover of about 350 crores.
How Lakhani is Different
I would say the brand personality of Lakhani is different from other brands like
Lakhani, Action etc. Unlike others, we are catering to the entire family.
Bata is the only other company which offers the complete family range of footwear
like us. Other players are catering to certain niche markets only such as Lakhani is
more into rural segment or Action which is more into teenagers and kids only. So
Lakhani is catering to a very large segment of the market through its wide range of
sub-brands whereas others are single brand entities.
Role of Advertising
We strongly believe that advertising for a brand is the fuel for the growth of the
company. See, consumers react to the advertising which results in a demand for a
brand translating into sales for the company. Thanks to our Advertising
consistently over the years, Lakhani has been perceived as a brand which is young,
modern and offering new and international range of footwear’s. But in the last two
years or so, we felt that ads irrespective of the TV, press or outdoor mediums were
not adding any value so we toned down our ad spend.
Effect of Less Advertising
33
Yes certainly, low visibility does affect the brand's share in the consumer's mind.
But business was low and we tuned down the advertising to a minimal level.
However, we took stock of the situation and as business has improved, we have
again upped our ad budget. This financial year we plan to spend around Rs.12
crore on our advertising. We have changed our ad strategy also by opting for
advertising in the peak seasons only instead of advertising through out the year.
Even our advertising creative’s have also undergone major change. Our ad
campaign has become more youthful and catchy communicating the new
fashionable appeal of Lakhani brand in a more effective manner.
Brand Loyalty
We fare very well on the loyalty parameter among the customers, however, as I
said earlier, in the last few years brand loyalty among Indian consumers has eroded
and foreign brands/products are perceived to be better than Indian products/brands.
But our experience shows that customers are now realizing that among the
footwear products/brands Lakhani is still the best brand in the country and Lakhani
customer loyalty is further improving.
Channels
34
Well, we sell through 350 exclusive Lakhani showrooms and more than 4000 multi
brand stores spread all over India. But the retail stores are neither owned nor
managed by us.
Future Plans
I think Indian consumer is now more aware of international trends and shopping
standards as our markets are becoming an important part of the global market.
Being associated with exports for last more than 40 years, we have an advantage of
providing international quality products to Indian consumers and in terms of
technology and styling, we are not behindnternational trends. However, we do not
provide international shopping experience to Indian consumers and therefore in the
last 3-4 years, we have made conscious efforts to upgrade the standards of our
retail outlets and we shall continue to do so to make the shopping enjoyable for the
Indian consumers. Moreover we shall continue providing the latest high quality
products to Indian consumers at affordable prices, which are not only comfortable
but durable too.
Objective of research
35
My project objective was to analyze customer’s satisfaction level about Lakhani’s
various products. My project topic was “Market potential and customer
perception about Lakhani shoes”.
A questionnaire was developed as the key research instrument. Questions related to
all aspect of company and product like quality, price, value for price, performance
etc was covered.
Approximately 100 customers were surveyed of Delhi for their opinion and
response about lakhani shoes. Secondary data from company’s brochure, website,
and journals were also taken. Dealers of Karnal and Kurukshtra were also
interviewed to get their opinion about lakhani shoes Ltd.
Major findings include that although company holds a very good reputation in the
market, it failed to satisfy customers on many aspects. Company is leveraging its
brand equity in the market. Although the company offers very good product quality
but slightly on a higher price, And designs of footwear are not up to the mark.
Company is facing stiff competition from Action, woodland, Relexo, Lakhani and
foreign brands like Reebok, Adidas, Nike, Bata, Red tape, Red chief and Lee
cooper. Apart from that company can indulge in promotional activities in rural
areas where market potential is really good.
Scope of the study
36
Area: Different areas of Delhi had been covered during the study.
Time: The study had been done between the last week of April and the
first week of June of 2004.
Limitations
Every project comes with a new challenge. And what is a challenge without
difficulties. I also faced many difficulties while doing the project. And those
situations gave me a learning, which would help me throughout my life.
1. I had to study the choice criteria to decide upon a branded shoe and accordingly
prepare the competitive update, i.e. Lakhani shoes VS other companies. I have got
25 days to complete the study. So, the time period was not such to have a
comprehensive analysis.
2. Due to paucity of time, the sample size taken was small (100).
3. The sample may not give true picture about the entire population.
4. The result may have been influenced by the composition of the sample and use of
non-probabilistic sampling technique.
5. The duration of the project was entirely the summer period. The scorching heat of
Delhi Summer made my fieldwork physically demanding. The people were
37
generally very busy and so, it was really very difficult to get time from them to fill-
up the questionnaires. Also, they were very reluctant to provide information which
was very necessary for the purpose of the study. And those situations gave me a
learning, which would help me throughout my life.
6. I had to study the choice criteria to decide upon a branded shoe and accordingly
prepare the competitive update, i.e. Lakhani shoes VS other companies. I have got
25 days to complete the study. So, the time period was not such to have a
comprehensive analysis.
7. Due to paucity of time, the sample size taken was small (100).
8. The sample may not give true picture about the entire population.
9. The result may have been influenced by the composition of the sample and use of
non-probabilistic sampling technique.
10.The duration of the project was entirely the summer period. The scorching heat of
Delhi Summer made my fieldwork physically demanding.
11.The people were generally very busy and so, it was really very difficult to get time
from them to fill-up the questionnaires. Also, they were very reluctant to provide
information which was very necessary for the purpose of the study.
RESEARCH METHODOLOGY
38
MARKET RESEARCH METHODOLOGY
The methodology adopted for this market research is explained below:
Defining the research problem & objective
Developing the research plan for collecting information
Implementing the research plan- collecting & analyzing data
Interpreting & reporting the findings
The research methodology adopted was Descriptive in nature. The cross-sectional
study has been used here. Information has been collected from a given sample of
population only once. Also, the cross-sectional study is single in nature, because
only one sample of respondents is drawn from the target population.
Data Collection
We have used a formal questionnaire to collect data. The survey had been done in
two methods: telephonic interviewing and personal interviewing. Telephonic
39
interviewing was traditional in nature and in-home personal interviewing was
done.
Questionnaire
We have used a questionnaire for data collection. The questionnaire consists of
questions that are judicious mix of both close-ended and open-ended questions. As
the study was to study the choice criteria to decide upon a company for shoe
purchase and accordingly prepare the competitive update, i.e. Lakhani Vs others,
hence open-ended questions were necessary to get the inner information. Still, we
made it as simple as possible.
Sampling Technique
The sampling technique used was a mix of Convenient. That is, we used no
probability sampling technique in which we chose a sample of convenient
elements.
Sample Design
Sample Size: 400
Execution: The approach as straight forward in the Shoe store. I approached the
customers directly and requested them to fill the questionnaire.
40
DATA ANALYSIS & FINDINGS
RESULT ANALYSIS
The result obtained and data analysis is based on the questions framed in the
questionnaire. These questions are related to the attributes, characteristics and
performances of Lakhani shoes. Following are the questions used in deriving the
customer satisfaction level.
Q1: What were the reasons for selecting Lakhani?
Q2: Rating of overall attributes of the Lakhani like
Appearance
Look
Color
Quality
Usage
Q3: Rating of various characteristics of Lakhani shoe like
Price
Durability
Reliability
Efficiency
Performance
Dealers behavior
41
Q4: Are the customer satisfied with the efficiency?
Q5: Are the customer satisfied with after sales services?
Thus keeping all the above attributes in mind a sample of 400 customers was
selected and then intervened personally. The result has been analyzed and
tabulated from the next page.
Reasons for selecting Lakhani.
In the questionnaire it was asked to the customer for what reasons they have
purchased Lakhani .The reasons may include price, reputed company, quality,
utility, design. With the following graph we can obtain the results.
Qua
lity
Util
ity
Rep
utat
e...
Des
ign
Pric
e
0
5
10
15
20
25
30
35
4039
25
19
9 8
42
Thus it has been observed that most of the customer’s have purchased Lakhani
because of better quality. The percentage of customer bought Lakhani because of
better quality is39%.Utility is at the second priority among the customer surveyed
with 25%.The percentage of customers who purchases Lakhani because of reputed
company is19%.Price has been given least priority with 8% only .Thus the
efficiency is the main criteria for the selection of Lakhani.
Customer opinion about the overall attributes of the Lakhani
With this question I come to know about customer’s opinion regarding various
attributes of the tractor like appearance, color, quality and usage.
1. APPEARANCE
The appearance of the shoe is based on the two derivates that is interesting and
boring .The customers are required to give their opinion on these derivates
whether the appearance is interesting or boring. This can be derived from the
following graph
Appearance is very interesting while 40%finds it fairly interesting. Only 7%&3%
of customers finds it very boring and fairly boring respectively .Only 3%of the
customers finds it neither boring nor interesting .So it can be concluded that almost
all of the customers are satisfied with the appearance of the shoes.
2. COLOUR COMBINATION
With the help of this attribute we can analyze whether the customer are satisfied
with the color of Lakhani shoes produced by the company. Are they satisfied with
the color combination of the shoe they have purchased? This attribute is based
43
upon two criteria i.e. suitable and unsuitable. This can be analyzed with the help of
the histogram. Suitable and unsuitable.
Ve
ry s
uit
ab
le
Fa
irly
su
ita
ble
Ne
ith
er
Fa
irly
un
su
ita
ble
Ve
ry u
ns
uit
ab
le
0
5
10
15
20
25
30
35
40
33
37
1310
7
44
Very interesting47%
Fairly interesting40%
Neither3%
Fairly boring3%
Very boring7%
From the above histogram we conclude that majority of customers are satisfied
with the color combination of their shoe.33% of customers found
it very suitable whereas 37% of customer found it fairly suitable.13%of the
customer found it neither suitable nor unsuitable.10% found it fairly unsuitable and
7% found it very unsuitable.
3. QUALITY
The quality of the shoe can be determined on the bases of the two derivates i.e.
good and bad. The customers are asked to give their opinion whether the Lakhani’s
quality is good or bad. This can be analyzed with the help of the following pie
chart.
Very good33%
Fairly good37%
Neither14%
Fairly bad10%
very bad6%
45
From the above graph it is concluded that maximum number of customer are
satisfied with the quality of their shoe. 70%of the customer found the quality of
their shoe, good in which 33%found the quality very good
Whereas 37% found quality fairly good.14%found quality neither bad nor
good.10%of the total customer found quality fairly bad nor 6%ofthe customers
found quality very bad.
Rate the characteristics of Lakhani
It was asked by the customer to rate the various characteristics of Lakhani on the
scale of satisfied, average and dissatisfied. The characteristics are as follows:
Price
Durability
Performance
Efficiency
Reliability
Dealer’s behavior
The above attributes are the main tools in analyzing the satisfaction level of the
customer .with the help of chart and the graphs I have shown what the
customers feel about shoe. In the upcoming pages each and every attribute is
evaluated with the help of graphs.
1. PRICE
Price is one of the main element of marketing, one always keep in mind about the
price while purchasing the product. In the same way the
46
company should also keep in mind the price of that product and quote the price of
the product in such a way so that the customer easily accept it. With the help of the
following we can find whether Lakhani has succeeded its customer with its price
tag
Satisfied40%
Average13%
Dissatis-fied47%
From the above graph we can see that only 40% of the customers are fully satisfied
with the price of the tractor while 13% find it average. Majority of Customer i.e.
47% are not satisfied with the price. The majority of
Customers are dissatisfied because the customers are mainly from rural markets
and they find it quite hard to spend such an amount on the shoe. So it is difficult
for them to afford the heavy prices of the shoe.
47
2. DURABILITY
Durability of the shoe can be analyzed on the bases of the three derivates i.e.
satisfied ,average and dissatisfied .with the help of the following graph we can find
out whether the customer are satisfied with the durability of the shoe or not.
Sa
tisfie
d
Av
era
ge
Dis
sa
tisfie
d
0
10
20
30
40
50
60
70
8076
13 11
From the above graph we conclude that 76% customers are find the durability of the shoe
satisfactory while13% customer finds the durability average .Only 11% customers are
dissatisfied with durability.
48
3. RELIABILITY
Reliability of the shoe should also be determined while analyzing the satisfaction
level of the customer. This is also based on three derivatives as the above attributes
are .with the help of the following graph we can find out whether the customers
find
Lakhani
reliable
or not.
From
the above graph we may conclude that 60%of the customer find the Reliability of
the shoe satisfactory while 25% of the customer find the reliability of the shoe
average. Only 15% of the customers are dissatisfied with reliability of the shoe.
4. EFFECIENCY
49
Satisfied60%
Average25%
Dissatisfied15%
One of the characteristics of the any durable product is its efficiency so is in a shoe
.It was asked to the customers whether the shoes are efficient or not Efficient In this
case also it can be analyzed on the bases of three derivatives i.e. satisfied, average
and dissatisfied. With the help of the following graph we can find out what
customer say about its efficiency.
From the above graph we may conclude that 48% customer find the efficiency of
the shoe satisfactory while 37% find it average. Only 15% customers are
dissatisfied with the efficiency.
5. PERFORMANCE
Performance of the shoe should also be measured while analyzing the satisfaction
level o the customer .With the help of the following graph we may find out
whether the customers are satisfied with Lakhani’s performance or not.
50
Satisfied48%
Average37%
Dissatisfied15%
From the above
graph we may conclude that majority of the customer are satisfied with the
performance of the shoe. The percentage of the satisfied
customer is 52%.38% customer found performance average whereas only 10% of
the customers are dissatisfied with the performance
6. DEALER`S BEHAVIOUR
One of the main components while determining satisfaction level is dealer’s
behavior .Whether the dealer is maintaining proper relation or not. From the
following graph we can find out whether retailers are satisfied with the dealer or
not
51
Satisfied Average dissatisfied0
10
20
30
40
50
6052
38
10
20%
10%
70%
Satisfied
Average
Dissatisfied
From the above graph we may conclude that majority of the retailers are
dissatisfied with the dealers behaviour.20% retailers find the behavior satisfactory.
while10% finds it average but 70% of the retailers are dissatisfied with the dealer’s
behavior.
ADVERTISING
Print CampaignLakhani has tried to project itself as a brand of style. They made
print campaigns with powerful one liners targeting each segment. For example
in the first print campaign shown above they have targeted the youth in the age
group of 14-24. They have targeted the youth in that phase of life in which they
are undecided about where their life is heading, where their careers are headed
and where they
52
In the second print campaign they have used stylish models such as Nethra
Ranganathan to represent style and fashion. They have targeted the urban Indian
woman who is style and fashion conscious. They have also cited the importance of
the correct kind of footwear.
Lakhani has targeted various segments like the school college going youth, the
working mothers, the stylish urban woman and children. In the above print
campaigns they have targeted children and the stylish office going male. They have
portrayed the child as having her own identity. They have also portrayed the urban
Indian working male as stylish and a winner in all he does. They have very
beautifully used the psychographics of the segments.
In each of their print advertisements they have portrayed Lakhani as a brand used
by individuals having a separate identity, whether it be the identity of a child or an
urban Indian youth. Punch lines like ‘Competition, Winning Edge, I have it all’,
‘Peer pressure? Boys? Every Step I take is very much me’ or ‘Daddy’s eyes,
Mummy’s nose, My shoes are just my own’.
ADVERTISING & PROMOTION
The marketing division takes aggressive promotional exercise throughout the year.
Special marketing communication mix are devised for special occasions like
Diwali, Id, Christmas etc. company promotes its products by adding value to the
lifestyle and a part of the ambitions. It aims at satisfying consumer’s esteem and
self-actualization needs so that consumer can
53
Relate themselves with the company. However, for promotion of its product, the
main instrument of the company is its “SHOWROOM POLICY”. This policy aims
at reaching more and more customers through Lakhani showroom
54
55
What is a customer?
A customer is the most important person ever in this office…….in
person or by mail.
A customer is not dependent on us ……… we are dependent on
him.
A customer is not an interruption of our work…… he is the purpose
of it. We are not doing a favor by serving him……. He is doing us a
favor by giving us the opportunity to do so.
A customer is not someone to argue or match wins with. Nobody
ever wins an argument with a customer.
A customer is a person who brings us his wants. It is our job to
handle them profitably to him and to ourselves.
Lakhani Retail Revolutions Limited
In the elite shopping avenues of fashion capitals "Revolutions" has begun its walk.
The fashion accessory and footwear stores have begun operations in Chennai,
Bangalore , Mumbai, Kolkatta, Hyderabad, Indore, Lucknow, Delhi & NCR and
Pune with upcoming Revolutions Stores in Noida, Chandigarh and
Ahmedabad.These are company managed and owned outlets where the emphasis is
to deliver high fashion to the customers backed by quality service making it a
delightful shopping experience
56
SWOT ANALYSIS
STRENGTH
Established brand name.
Wide Dealers network.
Bondage between company and employees.
Customer’s faith.
Leaders in quality
Economies of scale
Infrastructure
WEAKNESS
After sales service like replacement of shoe is very poor.
Price of products offered is not satisfactory.
Company representative doesn’t visit dealers frequently.
Sustained growth rate
OPPURTUNITIES
Have the opportunity of grabbing the market share through launching of new
& wide range of products with new designs.
Wide market in low price shoes as most population is financially weak in
our country.
Existing successful products of company.
Increase sales by giving incentives to sales officers and dealers.
57
Develop market sensitive product line.
Globalization
THREATS
Cut throat Competition
Due to lack of good design of products and good after sales service the
company can lose their customer to other companies who provide good
quality of product and after sales service.
Competition for resources
New entries in the market
Unforeseen conditions
LEARNING
My summer training at Lakhani shoes was a great learning experience. I was given
a project on market research and sales. The project itself boasts me of a lot of
learning. I learnt how to deal with people, how to convince them to give time. I had
to give the impression that I was doing the project for academic purpose. So, it was
not actually of any help to the people. So, I had to adopt different techniques at
different places to get positive responses. Our strategy making skills were honed in
this manner. Moreover the scorching heat sometimes made it almost impossible to
carry out the fieldwork. Latter on we started looking out for the customers at the
evening, so that I can easily ask them to fill the questionnaire.
Another thing of great importance that I learnt during the course of the project is
patience. As a researcher, the company as well as the respondent was my customer.
I learnt that to deal with customers I need a great deal of patience. And it helps a
58
lot to have patience while interacting with others. It shows through professionalism
and makes a good impression.
Last but not the least, we have also learnt about the corporate culture. It was a great
experience. It was a fabulous experience interacting with all the employees of the
compa
MARKET SEGMENTATION
Men's Range
ENGLISH SYSTEM
English sizes are measured in inches. For e.g. size 8 would mean the foot measures
11 inches. Between two English sizes the difference in foot length is 1/3rd of an
inch.
FRENCH SYSTEM
59
French sizes are measured in centimeters. For e.g. size 8 would mean the foot
measures 27.91 cms. Between two French sizes the difference in foot length is
2/3rd of a centimeter.
CIS/MONDOPOINT SYSTEM
Midpoint sizes are measured in millimeters. For e.g. size 8 would mean the foot
measures 280 mm. Between two Midpoint sizes the difference in foot length is 10
millimeters.
AMERICAN SYSTEM
Add ½ sizes to English sizes to arrive at the American size. For e.g. English size 8
equals American size 8½
The table given below enables you to find out the length of your foot in inches,
centimeters or millimeters by tallying with the corresponding International sizes.
For e.g. English size 8 is equal to French size 42 & CIS size 280 which would
mean the foot measures 11 inches or 27.91 centimeters.
ENG INCHES FRENCH CMS. CIS MMS.
60
4 9 2/3 37 24.53 245 245
5 10 38 25.38 250 250
6 10 1/3 39-40 26.32 260 260
7 10 2/3 40-41 27.07 270 270
8 11 42 27.91 280 280
9 11 1/3 43 28.76 290 290
10 11 2/3 44-45 29.61 300 300
11 12 46 30.45 305 305
12 12 1/3 47 31.30 310 310
Women's Range
61
ENGLISH SYSTEM
English sizes are measured in inches. For e.g. size 5 would mean the foot measures
10 inches. Between two English sizes the difference in foot length is 1/3rd of an
inch.
FRENCH SYSTEM
French sizes are measured in centimeters. For e.g. size 5 would mean the foot
measures 25.38 cms. Between two French sizes the difference in foot length is
2/3rd of a centimeter.
CIS/MONDOPOINT SYSTEM
Midpoint sizes are measured in millimeters. For e.g. size 5 would mean the foot
measures 250 mm. Between two Midpoint sizes the difference in foot length is 10
millimeters.
AMERICAN SYSTEM
Add 1½ size to English sizes to arrive at the American size. For e.g. English size 5
equals American size 6½.
62
The table given below enables you to find out the length of your foot in inches,
centimeters or millimeters by tallying with the corresponding International sizes.
For e.g. English size 5 is equal to French size 38 & CIS size 250 which would
mean the foot measures 10 inches or 25.38 centimeters.
ENG INCHES FRENCH CMS. CIS MMS.
2 9 34 22.84 230 230
3 9 1/3 35-36 23.68 240 240
4 9 2/3 37 24.53 245 245
5 10 38 25.38 250 250
6 10 1/3 39-40 26.22 260 260
7 10 2/3 40-41 27.07 270 270
8 11 42 27.91 280 280
9 11 1/3 43 28.76 290 290
10 11 2/3 44-45 29.61 300 300
Teenager's Range
63
ENGLISH SYSTEM
English sizes are measured in inches. For e.g. size 5 would mean the foot measures
10 inches. Between two English sizes the difference in foot length is 1/3rd of an
inch.
FRENCH SYSTEM
French sizes are measured in centimeters. For e.g. size 5 would mean the foot
measures 25.38 cms. Between two French sizes the difference in foot length is
2/3rd of a centimeter.
CIS/MONDOPOINT SYSTEM
Midpoint sizes are measured in millimeters. For e.g. size 5 would mean the foot
measures 250 mm. Between two Mondopoint sizes the difference in foot length is
10 millimeter
Kid's Range
ENGLISH SYSTEM
64
English sizes are measured in inches. For e.g. size 10 would mean the foot
measures 7 1/3 inches. Between two English sizes the difference in foot length is
1/3rd of an inch.
FRENCH SYSTEM
French sizes are measured in centimeters. For e.g. size 10 would mean the foot
measures 18.61 cms. Between two French sizes the difference in foot length is
2/3rd of a centimeter.
CIS/MONDOPOINT SYSTEM
Midpoint sizes are measured in millimeters. For e.g. size 10 would mean the
millimeters. foot measures 190 mm. Between two Midpoint sizes the difference in
foot length is 10.
The table given below enables you to find out the length of your foot in inches,
centimeters or millimeters by tallying with the corresponding International sizes.
For e.g. English size 10 is equal to French size 28 & CIS size 190 which would
mean the foot measures 7 1/3 inches or 18.61 centimeters.
ENG INCHES FRENCH CMS. CIS MMS.
6 6 23 15.22 150 150
7 6 1/3 24 16.07 160 160
8 6 2/3 25 16.92 170 170
9 7 26-27 17.76 180 180
65
10 7 1/3 28 18.61 190 190
11 7 2/3 29 19.45 195 195
12 8 30-31 20.30 200 200
13 8 1/3 32 21.15 210 210
1 8 2/3 33 22.00 220 220
News and Cases
Lakhani wants foreign link
Lakhani Retail Revolution, subsidiary of leading footwear manufacturer, Lakhani
Shoes, is looking for a foreign partner to expand locally and overseas.
Lakhani Shoes to set up subsidiary in Dubai
MUMBAI: Lakhani Shoes Ltd on Monday said that it would set up a wholly
owned subsidiary in Dubai for expanding the overseas presence of the company.
Pantaloon to step into footwear retailing with Lakhani
PANTALOON Retail (India) Ltd (PRIL) and Lakhani Shoes Ltd have entered into
a joint venture to set up a chain of stores for footwear retailing and other
accessories.
From shoes to ceramics: Lakhani moves on
From leather to ceramics -- is there a link? You wouldn't think so, but Adarsh
Gupta, executive director, Lakhani Group, believes that all manufacturing
66
activities are somewhat similar; since both ceramics and shoes cater to the lifestyle
segment there is a common thread, he says.
Lakhani has got into the production of ceramic sanitary ware with trial production
out last month. Rs 50 crore (Rs 500 million) in the next stage -- a lot will depend
on how the company markets its products and what is the kind of advertising it
wants to go in for.
These questions should be answered once the new business shapes up.
Lakhani White ware is being set up with an investment of Rs 50 crore,
expandable to more than Rs 100 crore in three years
Ceramic vitreous sanitary ware products are being manufactured in a 72,000
square meter-plus plant in Neemrana
The trial production at the plant commenced on September 14, 2005 and the
final products are expected to reach the market in the ongoing festive season
Lakhani has a targeted turnover of Rs 200 crore from the project in the fifth
year of commercial operations
According to estimates drawn up by Development Panel of Ceramics, the
demand for ceramic sanitary ware is approximately 1,60,000 tones per
annum, expected to rise to 2,58,000 tones by 2007
Pearl Academy, Lakhani Shoes tie up
PEARL Academy of Fashion and Lakhani Shoes today announced a joint
collaboration for design talent promotion and Continuum 2003 - the 10th
anniversary celebrations of Pearl Academy
LAKHANI LATEST ACHIEVMENTS
67
Lakhani gets the Amity Corporate Excellence Award
Amity International Business School has accorded a special honor to Lakhani
Shoes Ltd. for outshining the competition with their distinct vision, innovation,
competitiveness and sustenance.
Lakhani Shoes wins the 2005 – 2006 Export Awards
The Council for Leather Exports has presented the plaque for non leather footwear
exports as well as the brand promotion award for non leather footwear to Lakhani
Shoes Ltd.
The Revolutions Fashion Week
The Fashion week has a new venue. At the Revolutions Stores across the country
the fashion week with a difference will unfold. In a unique offer some of the
Footwear that will be showcased for the first time in India.
Things getting back to normal at Lakhani
These have been trying times for all members of the Lakhani family. But it is
during times like these that our commitment to each other is proven. After all there
is so much that we have achieved target.
Pune in the grip of Revolutions
68
Revolutions Store, the flagship of Lakhani Retail Revolutions Ltd., sparked off a
new era in the country’s fashion scene while ushering in a novel trend in fashion
retailing opens a retail outlet in PUNE.
New Lakhani Polyurethane Plant coming up at Roorkee in Uttaranchal
Lakhani Shoes is ramping up capacity to meet the demands of Reebok and Nike in
the domestic market and Wal-Mart in the US market. Towards this end a new plant
is coming up at Roorkee in Uttaranchal.
Udyog Rattan Award for Mr. Adesh Gupta
Institute of Economic Studies presented Mr. Adarsh Gupta, CEO of Lakhani Shoes
Limited with the Udyog Rattan Award at a special function at the India Habitat
Centre, Lodhi Road, and New Delhi on the 10th.
Lakhani at Lakme Fashion Week, 2006
Lakhani GenNext Show
Lakhani Shoes will be the title sponsor for the “GenNext Show”, a unique concept
where six promising designers will showcase their collections at the inaugural.
Revolutions store opened at TDI Mall, Rajouri garden, New Delhi on
March 3, 2005
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The latest Revolutions Store opened at TDI Mall, Rajouri Garden, and New Delhi
on March 3, 2006 with a spectacular range of new designs that includes the much-
coveted ‘F’ collection.
Lakhani –Turning Brand India into a Global Fashion Statement
Incorporation of Lakhani Foot Fashion (U.A.E.) L.L.C., 100% subsidiary
company at Dubai.
Revolutions Store opened at Shipra Mall, Ghaziabad on January 15,
2006
Revolutions store opens in Indore
The Revolutions Rage Continues Revolutions Store, the flagship of Lakhani Retail
Revolutions Ltd., sparked off a new era in the country’s fashion scene while
ushering in a novel trend in fashion remark.
Montage wins "Image Fashion Awards 2004"
It is only natural that a magazine that is all about fashion and style facilitates the
very best through awards. But it is also equally nerve wrecking to guess who the
winner would be. Such was the montage.
Lakhani Shoes to consider Bonus for shareholders!
The Board of Directors at Lakhani Shoes Limited meet on 18th July, 2005 to take
on record the Un-audited results of the 1st Quarter of June, 2005.
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MAJOR FINDINGS
The survey conducted has put forth many interesting findings in the market. Some
of these are discussed as under:-
It has been observed that most of the customers were not aware with the
quality and features of the product.
New entrants in the market are pushing their product very aggressively.
There marketing campaigns are very much effective and attractive.
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Customers usually add his shoe with his lifestyle as now they don’t want to
purchase one shoe for all the occasion.
Design of Lakhani’s product is not that much effective. People find that
other competitor’s design and color combination is quite impressive.
Most of the consumers were satisfied with the product’s raw material quality
and its performance as Lakhani’s shoes are known as a durable product.
Most of the retailers were not satisfied with the dealer’s behavior. They said
that company should give emphasis on developing and managing an
efficient and broad distribution system.
According to retailers, company does not understand the importance of
distribution system. Due to that retailers are turning towards other
companies for stock to sale.
According to survey, price does not matter much while making a purchase
decision.
On the utility front, Lakhani score high. It has a very good usability.
Consumers are very much satisfied with quality of the product.
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RECOMMENDATIONS
MAJOR RECOMMENDATIONS
The survey conducted has put forth many interesting findings in the market. On the
basis of these findings we can recommend following suggestions.
The market is, by and large, unaware about the features and quality of the
products of lakhani.
A special marketing campaign should be started in the unexplored regions
where company does not have its reach.
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Company can exercise separate product mix, marketing mix and a
differentiated marketing communication mix for the marketing campaign.
The company has the option of reducing the cost of production, so that the
price sensitive consumer can also be covered by the effective marketing
strategy.
Company should concentrate more on advertisements and sales promotions
through different media.
There is enough demand in rural areas for lakhani products. After
liberalization, standard of living and purchasing power of rural people is on
the rise. There s a great scope in rural market as compared to the urban
markets because major portion of urban market is already saturated. By
adopting an appropriate rural-marketing strategy, the lakhani shoe limited
can push up sales up to a great extant.
Company’s advertisements are not very attractive. Company should make
them more interesting and effective.
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CONCLUSION
This project is based on the study of “Customer perception and market potential
about “LAKHANI SHOES”. The market of Lakhani is prosperous & customer
perception about it is good. Major findings include that although company holds a
very good reputation in the market, it failed to satisfy customers on few aspects.
Although the company offers very good product quality but slightly on a higher
price, and few problems like unattractive designs, low customer preferences in
comparison with MNC’s like Nike, Reebok, bad color combination, effective
presence only in northern part of the country are few problems with the Lakhani.
Lack of good advertising & promotional Strategies has made Lakhani to fall little
low in the number game. The company should improve the technology and
designing process according to latest fashion and trends in the apparels market.
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Company is facing stiff competition from Action, Lakhani, Bata, Red Tape, Lee
cooper Red Chief, Nike, Adidas, Reebok. Apart from that company can indulge in
promotional activities in rural areas where market potential is really good.
BIBLIOGRAPHY
Marketing management –Kotler Philip
Statistical method-Gupta S.P
Research methodology-Kothari-C.R
Footwear Digest
Footwear and leather Fashion
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World footwear
Company’s Handouts & Bulletins.
www.lakhanishoes.com
www.google.com
APPENDIX
QUESTIONNAIRE
Questionnaire
(1)What is your age?
(15-25)
(25-40)
(40-55)
(Over 55)
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(2)Occupation?
Student
Professional
Service man
Business
Where do you buy your shoes?
(4) What type of footwear you prefer to buy?
Leather Shoe
Sports Shoes
Sandal
Chappal
Belly
(5) Which type of shoes you prefer to buy?
Branded
Local made
(6) If branded, which brand most appeal you?
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(7) Rank these Indian brands as per your perception?
Action
Adidas
Lee cooper
SSNike
Red tape
Reebok
Bata
Lakhani
Lakhani
Woodland
(8)Rating of overall attributes of the Lakhani like
Sates
. Average unsatis
Color satis. Average unsatis
Quality satis. Appearance satis.
Average unsatis.
Look Average unsatis
Usage Price satis. Average unsatis
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Durability satis. Average unsatis
Reliability satis. Average unsatis
Efficiency satis. Average unsatis
Performance satis. Average unsatis
(9) Which is the best brand in your view?
Leather _________________________
Sports __________________________
(10)What things you see before purchasing a shoe?
Price
Quality
Brand Name
Design
Previous Experience
(11)Have you ever use lakhani footwear?
(12) What are the main things you like about lakhani?
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