Servis Shoes

Umer Shoaib PirzadaRoll No: 35

Comsats Institute of Information Technology Internship Report

Servis Sales Corporation

Presented to: Mr. Ilyas Janjua

Controller Examination, CIIT. &

Mr. Fahim Akbar Mian,Manager HR (SSC)

TABLE OF CONTENTS

1) PREFACE

Internship Report MBA 1

2) ACKNOWLEDGEMENT

3) EXECUTIVE SUMMERY

4) INTRODUCTION AND HISTORY

5) VISION AND MISSION STATEMENT

6) Internship Departments

7) Factory Outlets Department

8) Corporate Sales Department

9) Supply chain Department

10) Whole Sale Department

11) Marketing Department

12) BCG Matrix

13) SWOT Analysis

14) Recommendations

PREFACE


It is the requirement of the MBA course Comsats Institute of Information Technology Sahiwal

campus that all students of MBA have to spend two months in any organization to get practical

exposure and to get familiarized with the ways to live in the organizational environment which

is dramatically different from the educational environment. That two months period called

“Internship Period “, if spent properly and sincerely, enables the students to be more confident,

more knowledgeable, more responsible and, above all, more committed to its work in the

practical field. I have also been assigned to do internship of six weeks period in Servis Sales

Corporation, which is a Pakistani local company and have 60 years experience in the market.

This internship period in Servis Sales Corporation has enabled me to understand the

practical scenario and sharpen our decision making power and utilizing the resources

in an effective manner, so that by using our resources, how we can maximize our

profit.

In preparing this internship report, I have put all of my best efforts and tried my level

best to get maximum knowledge about SSC. Despite of my all the coherent efforts, I

do believe that there will always be a room for improvement in the efforts of learner

like me.

Umer Shoaib Pirzada


ACKNOWLEDGEMENT

The whole praise is to almighty ALLAH, creator of this universe. Who made us the super

creature with great knowledge and who able me to accomplish this work. I feel great pleasure

in expressing my deepest appreciation and heartiest gratitude to my Teachers of Comsats and

to the staff of Servis Sales Corporation for their guidance and great help during the internship

period.

I would like to express my deepest affection for my parents and friends who prayed for my

success and encouraged me during this internship period. I appreciate and acknowledge the

patience, understanding and love provided by employees of SSC.

A token of special thanks to the following people who had been very friendly, co-operated with

me throughout my internship period in Servis Sales Corporation and made it possible for me to

learn and gather all the information needed for my internship report with as much detail as I

could. These are the people who in spite of their busy scheduling took time out to explain to

me the procedures and mechanics of work in the organization. My internship report would not

have been possible without friendly and helpful attitude of following people.

Mr. Fahim Akbar Mian Manager HR

Mr. Younas Business Manager FOL

Mr. Usman Barkat Merchandise Planner Supply chain

Mr. Mudassar Ikram Category Analyst FOL

Mr. Attique-Ur-Rehman Senior Manager Corporate Sales

Mr. Asim Majeed Asst. Manager Corporate Sales

Mr. Rashid Rafqiue Corporate Sales Officer

Mr. Adnan Akhtar Category Manager Whole sale


Executive Summary

Servis Group is Pakistan's largest footwear manufacturer and exporter. It also has interests in

retailing. Its Group Company, SSC Private Limited, is the country's largest retailer and

wholesaler of footwear.

The Group was set up in 1958 and today has sales of more than PKR 9 billion.

The Company runs its footwear retail business under Servis brand as Servis Shoe Stores. It

has further established some of the most loved footwear brands including Don Carlos,

Cheetah, Calza, Liza, Toz, and Skooz. It also has distribution alliances with leading

international brands in footwear including NIKE, CAT and exclusive franchise of ECCO in

Pakistan.

SSC a part of Servis Group Which has a rich heritage spanning over half a century and is

today regarded as one of the most respected corporate citizens. The Group invests actively in

CSR initiatives and projects – nationally as well as abroad.

SSC is respected for its innovation footwear designs which are a result of its considerable

invest in merchandising and product development departments. This has proven to be a

driving engine for the business that has produced millions of satisfied customers. The

Company has strategic relationships with Group companies which offer world class footwear

manufacturing facilities in Pakistan.

SSC Retail Business currently comprises Company Operated Stores, Agencies, and Factory

Outlets. The business is now eyeing Large Format Stores and Franchise Stores as its future

growth engines.


Servis Group employs close to 8000 people in its following Group Companies:

Service Industries Limited

SSC Private Limited

Shoe Planet

Soul Collections

Servaid Pharmacy

Above all are separate entities and work their own. Like there are three two outlets yet of Shoe

Planet in Lahore and Karachi where there are imported brands with Servis shoes are available.

Shoe Planet is a really a big outlet.

Soul collection is dealing in ladies shoes and same like Stylo. There is a wide range of ladies

shoes is available all the time on Soul Collection and Soul collection has their own network.

Servaid Pharmacy as the name mention is dealing in Pharmacy and has a good name in the

field of Pharmacy and this is now a growing business of Servis.


Introduction

Walking on the roadside, running on a track, climbing the rocks, going for a formal meeting or

simply shopping on weekend, one thing is an imperative for you. That’s footwear. Nothing

compares to a pair of shoes that are trendy and comfortable, and this is where Servis comes

in. Making its debut in 1964 in the footwear industry of Pakistan, Servis today has become the

most sought after name in the shoe industry.

Servis Sales Corporation is the flagship company of the group with headquarters location in

Lahore. Servis started its operations with a small factory in Gujrat and established its second

factory at Muridke Seikhupura Road in 1987. Today Servis is the largest footwear exporter of

the country.

Winner of FPCCI trophy for best export performance six times, product innovation is the most

important element in company’s marketing strategy and that is what makes Servis, a shoe

company par excellence.

Popular Servis brands include Cheetah, Don Carlos, Calza, Liza, Skooz, Toz, Servis and

more. Servis offers a new product range twice a year at the beginning of summer and winter

seasons.

Servis enjoys a rich history of excellent performance. You can bank on Servis for your

requirements. Unshakeable trust, unmatched products, superb quality and an amazing ability

to satisfy the ever increasing needs of its clients are some of the qualities that make Servis

your unbeatable partner.


Vision Statement

Be the fastest growing company in every market we enter.

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 it’s employees and their families.


Departments

The following are the departments where I worked as an internee and experienced a good

time with the Servis employees.

Factory outlets Department

Corporate Sales Department

Supply Chain Department

Whole Sale Department

Schedule

I divide my 6 weeks according to letter plan given by HR Manager, and spent two weeks

in Factory Outlets Department with Mr. Mudassar Ikram who is supply chain analyst then two

weeks in corporate sales department with Mr. Rashid Rafique who is Corporate Sales Officer

then two days in Supply chain (Retail) with Mr. Usman Barkat (Senior Merchandise Planner)

and Mr. Qaiss Aslam(Merchandise Planner) and then finally two weeks in Whole Sale

Department with Mr. Adnan Akhtar(Category Manager) and Awais(Category Analyst).


Factory Outlets Department

Hierarchy of Factory Outlets Department:

There are 33 factory outlets in all over the Pakistan.

Servis Sales Corporation which is working under Servis industries Private Limited is doing its

business in retail which is further divides in FOL and A pair.

According to management FOL is very small part of their business however retail is big Giant.

FOL strategy is very simple. FOL strategy is to sale the rejected material of factories special

low price articles, dead articles which are not giving sale on the shops and also some A pair

articles which are specially prepared on order from Local venders. I understood from this that

the main purpose of FOL is to help out the company and save from losses which may be

company have to bear because of rejection without existing of FOL.

Reference: Mr. Younas (Business Manager)


Business Manager

Mr. Younas

Supply Chain Analyst

Mr. Mudassar Ikram

Supply Chain Analyst

Mr. Ghulam Muhammad

Servis Sales Corporation has 6 sources from where it takes delivery of shoes.

There are two Servis Factories.

1. Service Industries Limited Gujrat

2. Service Industries Limited Muridke

There are 3 LPO’s (Local Purchase offices) which is now known as Sourcing Office.

3. Karachi,

4. Lahore

5. Faisalabad.

And the last source is:

6. Imports.

Working of these LPO’s is to develop the vendors.

As Servis has 2 factories in Gujarat and Muridke which are full pack means these factories

produce fully according to their maximum capacity, but this production is not enough for Servis

retail so then Servis go towards outsource from their Sourcing offices which are in Lahore,

Karachi, and Faisalabad. The Supply chain Analyst according to their need place the order

after checking out all the needed factors like closing stock, demand and last fortnight sale and

the sourcing department make shoes from the local venders and then Supply chain analyst

allocate the dispatches according to their factory Outlets need.

In FOL there are 4 types of shoes.1 A-Pair

2 Rejections

3 Imports

4 Low Price Articles


The purpose of factory outlets is to promote the Retail (A pair) and grow customers and to sale

the rejection.

Target Customers.Basically Factory outs is working on rejection and special low price articles, so our targets are

low income people who cannot purchase imported brands and costly shoes.

Source of FOLFrom the production of the factories when there is some rejection(not 100%) means error up to

some extant occur in the pair then these articles go towards factory outlets then Factory outlet

sale these articles at low price, sometimes FOL have to face a problem like sometime there is

less rejection in the factories which do not fulfill the need of factory outlets then FOL makes

estimates and give orders to Sourcing offices according to their needs and sourcing offices

from the venders make articles according the production order of FOL.

Reference: Mr. Mudassar Ikram (Supply chain

analyst)

FranchisingThe interesting thing is that Servis does not give Franchise of FOL to Public.

All the 33 Factory outlets are SSC owned. But Servis is giving Franchises of Retail (A pair

articles).

DevelopmentServis retail shops are going to become online in coming days but now all the shops managers

send their data to Mantaq solutions who converts this data into soft copy.

Working of a Supply Chain Analyst


Mantak Solutions(Computer related company who is working for SSC)send the soft data to

supply chain analyst which they receive from outlets then supply chain analyst analyses this

data and make their estimates that how much they have need for their outlets and how much

they should give order and how much articles and for which outlets. Then they send Po

(production order).

Brands of FOL

The following are the brands of Factory outlets

Cheetah

Liza

Calza

Skooz

Toz

Don Carlos.

Categories and RangesThere are different categories and different ranges of sizes.

English size French size1) Men 6-10 39-452) Ladies 3-7 36-413) Youth 2-5 35-384) Boys 11-1 29-345) Girls 11-2 29-356) Child 4,5-10 20-23 , 24-28

The following are the sub categories of above categories.


1) Sports2) Shoes and Moccs3) Chappals4) Sandals5) Canvas6) EVA7) PVC8) Hawai

Reference: G.M Khan (Category Analyst)

Targets and Profit

FOL targets are 140% of previous year. Only FOL targets are 39 karores in 2008 of which round about 15 karores have achieved. 1st six month of the year is not so much running and profitable and maximum sale is related with the last six months.Promotional Strategy

The recent promotional activity which Servis has introduced is “Jeet Ka Shashka” A scheme for the end user, Cash prize through scratch card to every customer who consumes more than 500 RS.

Price Range

The FOL’s articles price is very economical and for low income people and FOL’s price ranger is less than 700-800 rupees.

Distribution Channel

SSC is very choosy about place and open their outlets after determining many aspects like population of the area , income of the people of that area , competitor in the area , location etc.

Product Development

FOl receive photographs or samples of articles from the LPO’s and then choose different articles which like most and then order for the production according to need.

Future Planning


Servis plans before the beginning of the year and the season. Like June is going on and

the Management is planning for Eid and winter.

In the retail shops Servis sales their A pair articles through the advertisement then near the

off season through sales then through reduction in prices and if some articles are

blocked(not sale) then company stop to the production and send these all articles from

retail to FOL and sale these articles on low prices in FOl and they plan like 5 years

planning, next year planning, this year planning, Event planning, seasonal planning etc,

and think about the coming event round about 6 months like now Eid is coming and we

have made all the plan about Eid because our 38% target sales come from Eid.Servis

divides the cities in different districts and this is their own setting for understanding,

following is the detail.

Reference: Business Manager

S.no Districts Number of FOL’s

1 Peshawar 2

2 Rawalpindi 3

3 Gujrawala 4

4 Gujrat 3

5 Sargodha 2

6 Lahore1 4

7 Lahore2 4

8 Faisalabad 4


9 Sahiwal 2

10 Multan 2

11 Sukkar 2

12 Karachi 2

All the Servis articles have different codes like Calza 350, Skooz 270, and Liza 429 etc. There

is no duplication chance in FOL and Retail shops. There are different slabs of different articles

like if article Calza 350 has become a dead item in retail shop then if company wants to sale

this article on FOL. then there is a slab of this article which tells that at which price to sale this

article. Servis outlets have above 80% articles available all the time. Servis like its competitor

‘BATA’ imports shoes from venders. The business manager and the team visit China and give

them order according to their need so in this way Servis imports. Now the question is … why

there is need of Imports? Because in Pakistan they have to bear much cost and also

Production is also not fulfilling the need. In FOL dept, there are only three main persons who

are working and giving business of billions to the company. One who watches factories, one

who watches LPO’s and one is the business manager who watches all the things and also

plans how to generate profit and make all the decisions.

Two years before when the name of Factory outlet was B pair shops at that time there was

some difference in shops, Company was not showing its interest in FOL and shops were old,

not decorated and not giving sales, but two years ago company changed its thought and gave

value to FOL like now our FOL shops are same like A pair shops, these are also renovated

and furnished and giving different schemes like now “Jeet ka Shashka”.


Targets set by Management himself by estimating their sale to check out last year

performance and by new opened shops. Like if target increases by 40% then 20% target from

old shops, 12% from new opened shops and the left target from sale or reduction.

Reference: Mudassar Ikram (Supply chain Analyst)

This is some facts and figures of last year.

Target sale Pairs. Last year Sale value(achieved

value)

Target Value for this year

Target Sale value(achieved

value)

888,374 184,998,548 240,713,900 280,572,013

In first row there are target sale pairs which the company assigns to sale minimum pairs. In

second column there is the value of target sale which the employees achieved on the base of

this value the company assign them RS. 240,713,900 target sale and they achieved more than

the target which is 280,572,013.

We can understand easily from the following graph.


Corporate Sales

This is the hierarchy of this department.


Country manager

Shahid Iqbal

Senior Manager

Attiq—ur-Rehman

Corporate Sales

Assosiates

Faisal Imtiaz

Asst. Manager

Asim Majeed

Corporate Sales

Assosiates

Mr Rashid

Today, Servis is fully geared to deliver the best to its corporate customers. Unshakeable trust,

unmatched products, superb quality and an amazing ability to satisfy the ever increasing

needs of its clients are some of the qualities that make Servis your unbeatable partner. No

matter how big the consignment is or how fast it has to be delivered, Servis is always there.

Servis enjoys a rich history of excellent performance. You can bank on Servis for your

requirements. From safety shoes to trendy sandals, from highly quality joggers to matchless

formal footwear nothing compares to Servis.

Popular Servis brands include Cheetah, Don Carlos, Calza, Liza, Skooz, Toz, Servis and

more. Servis offers a new product range twice a year at the beginning of summer and winter

seasons.

Corporate sale department is very small department as compare to Retail and wholesale but

here the working is interesting because the main reason is there is direct interaction with the

customer.

Product Range

All categories of leather footwear and sports shoes. Canvas shoes. Rubber sandals and slippers. Safety shoes. Gas masks

Products


1) Safety Shoes.

2) Law and Forces shoes for Army and Police.

3) Third one is all the simple shoes like Cheetah and Don Carlos etc.

Reference: Mr. Attique Ur Rehman

Price Range

Rs. 800 to1800 per pair.

Corporate sales department actually based on the concept of Customization. To change the

product or to make the product on the demand of their customer which fulfill the customer's

need? Safety shoes is a shoes which is actually for the safety of the employees of any

organization especially who are working on the sensitive places like People who works

electricity department, oil factory, sugar mills etc.

The main source of the corporate sales business is Tenders. They observe every tender

specially bulk quantity tenders which give them a good business. There are two types of bids

in tenders one is Technical Bid other is Commercial bid.

Reference: Mr. Rashid Rafique

Mr. Attique who is the senior manager of corporate sales told me that the last year target of

corporate sales department was 100 million which they easily achieved and now we are

looking for 140 million minimum.

We can say that this is the smallest department of Servis Sales Corporation and we can easily

determine this thing from their targets as we had seen the Factory Outlet. But to run this

department seriously is really necessary because to stand in the market and not to give way to

the competitor, this is also a source of advertisement also up to some extant and company is

gaining a heavy profit from here.


Strength Servis has a main strength which makes the Servis superior than other footwear's

that is Direct Inject technology. Direct inject technology is a technology by which company

makes the shoes as a single piece, there is no any kind of stitches etc in these shoes, and this

technology is in the Gujrat factory not anywhere else. As we can see Servis has covered all

the major companies of Pakistan by mentioning this latest technology.

Reference: Faisal (Corporate Associate)

I also learned how to send faxes to customers and interact with them and which companies

are the customers of Servis, I have complete list of the customers and I mention some of the

customers below.

1) Adam Jee Insurance

2) Pakistan Air Force

3) Air port Security force

4) Chevron

5) Coca Cola

6) DHL Pakistan

7) Engro chemical Pakistan Limited

8) Attock Petroleum Limited

9) Atomic Energy Mineral center

10) Atlas Honda Limited

11) Fauji Fertilizer Company Limited

12) NLC

13) Multan Electric Supply Company

14) Millat Tractor Limited

15) Lahore electric supply company Limited

16) Indus Motors

17) Frontier Corps


18) FFC Ltd

19) Okara Army

20) Orient

21) Pak American Fertilizer

22) Pak Arab Fertilizer

23) Younas Textile Mills

24) U.E.T

25) Sindh Police

26) Rescue 1122

27) Rangers (Punjab) (Sindh)

28) PSO

29) Punjab Police

30) Peshawar Electric supply Company

31) Pakistan post Office

32) Pakistan Steel Mills Karachi

33) Pakistan Air force.

The above are some famous and major clients of corporate sales.

I also checked all the files of these companies their quotations, Invoices and Goods receiving

notes and make the filing of the new ones.

Process

First of all search of the customers from different sources like the main source is internet then newspaper, tenders etc.

Categorized these customers.

Then contact to these customers through phone and get the information.


Then senior manager Mr. Attique-ur-Rehman meets these customers.

Introduce the product to customers.

Then customize the shoe according to customer need. Like if they don’t want laces on the shoes then remove the laces, if they say that soul should be like this then soul must customize like that etc.

Receive the Query from customer. Check availability. Then give the quotation to customer


This is an example of an original Quotation which company sent to its customer Engro

Chemical-Pakistan-Ltd.


Then customer send purchase order to company.]

The following is an example of a Purchase order which customer, Engro chemical sent to the department.


Then corporate department give Production order to factory. Follow up the factory because time is the main factor in all the process. Then send a copy of GRN (Goods receive notes) to the factory and a copy to Logistic

department. GRN is that when the customer receives the product sign on the note and the delivery

person submit the copy to Logistic.


Document Process for SalesThere are two types of sales.

Direct Sales Tender SalesData/Listing Tender add/Information

Telephonic/Introduction Letter Collection of Tender Form

Query/Requirement Making of Earnest Money

Quotation and Samples/Catalogue Samples

Purchase Order from Customer Quotation

Production Order to Source Tender Participation

Confirmation of Production of required

Shoes

Convincing Visits

GRN/Supply Letter of Intent

Bilty Purchase Order

Invoice from Source Return of Earnest Money

Signed GRN from Logistics Security Deposit

Sales Tax Invoice from A/Cs for customer Production order to source

Payment Confirmation of Production for

Inspection call

Tax challan Inspection Approval

Inspection Certificate

GRN/Supply

Bilty

Invoice from Source

Signed GRN from Logistics

Sales Tax Invoice from Accounts Deptt.

Payment from Customer

Return of Performance


after Completion of Period

Supply Chain

Hierarchy of this Department


Yousaf Muneer

Qiass

AslamFahad

Sadaqat

Sheraz

Baig

M -

Usman

Sara

Tufail

Zaid Bin

ShahRu

GM (Abbas Ali Sherazi)

Senior Planning Manager

Planning ManagerPlanning ManagerPlanning Manager

Merchandise Planner

Supply Chain department.In actual Supply chain is about the planning and distribution of Retail. All stages involved,

directly or indirectly, in fulfilling a customer request. Including the manufacturers, suppliers,

transporters, warehouses, retailers, and customers. Within each company, the supply chain

includes all functions involved in fulfilling a customer request (product development, marketing

operations, distribution, finance, customer service. Customer is an integral part of the supply

chain. Includes movement of products from suppliers to manufacturers to distributors, but also

includes movement of information, funds, and products in both directions.

Probably more accurate to use the term “supply network” or “supply web”

Typical supply chain stages: customers, retailers, distributors, manufacturers, suppliers. All

stages may not be present in all supply chains.

Reference: (Mr. Qaiss Aslam)

3 Categories:

Men Ladies YBGC (Youth, Boys, Girls, Children)

Men category look after by Mr. AbuBakar, Ladies look after by Miss Samia Saleem and YBGC

look after by MR Usman Barkat.

Each category is divided in subcategories which are the responsibilities of the other members

mention in the hierarchy.

Subcategories are:

Men, Ladies, YBGCSupport Shoes

Shoe Moc

Chappal


Sandal

Canvas

Havai

PVC

EVA

Maximize overall value created. Supply chain value: difference between what the final products

is worth to the customer and the effort the supply chain expends in filling the customer’s

request. Value is correlated to supply chain profitability (difference between revenue generated

from the customer and the overall cost across the supply chain)

Supply Chain Planning Definition of a set of policies that govern short-term operations. Fixed by the supply configuration from previous phase. Starts with a forecast of demand in the coming year. Planning decisions: Which markets will be supplied from which locations Planned buildup of inventories Subcontracting, backup locations Inventory policies Timing and size of market promotions Must consider in planning decisions demand uncertainty, exchange rates, competition

over the time horizon Reference: (Usman Barkat)

FeedbackI spent only two days here in supply chain department and this was the cooperate of Mr.

Usman Barkat and Mr. Qaiss who guide me so well that I am able to know about the Supply

chain department only in two days.


Whole Sale

Wholesale Department

BrandsCheetah -------- Joggers

Don Carlos------ Formal/Casual Shoes

N-Dure--------- Casual Shoes

Maximus-------Formal Shoes


Company

Corporat

e

Retail Wholesal

e

Dealer Network

Retailer

Calza----------- Open Chappal

Liza------------ Ladies Slippers

Skooz---------- Men/Ladies/Youth/Boys/Girls/Children


Hierarchy of the Department


Country Head

4 RSM

Zaher-ud-Din Babar (North)

Azhar naeem(Central !)

Iftikhar hussain(Central 2)

Syed Urooj(South)

Operation

Manager

Senior Manager Planning&

Development

Category

Manager

Category Analyst

Depots are the channels from where whole sale department distributes or sales shoes to

dealers.

There are 13 Depots in all over the Pakistan.

There are round about 2000 registered and non registered dealers.

Every Depot has a big store behind the show room. Dealers come and make choice of their

own and place the order that this article we need in this quantity then if the stock is available at

the store then the store keeper dispatches otherwise make order to the wholesale department

and the wholesale department according the present and future need place the order towards

the factory.

Requirements to become a DealerTo become a dealer first of all the candidate has a place of his own and then he have to fill a

form and submit a non-refundable amount of RS. 500.

There are two types of dealers, one is registered and others are non-registered dealers.

Who pay the fees is registered and who do not unregistered.

Registered dealers have a benefit of discount and credit facility more than non-registered.

Reference: Mr. Awais (Category

manager)


Targets and achievementsLast year target of whole sale was 1.56 billion rupees.

The department achieves 1.61 billion.

ProcessWhole sale department receives APD from Depots 3 months ago.

On the basis of previous, sale, stock, demand etc send order for production.

In case of factories there are daily dispatches.

In case of Local, give allocation for one month.

In case of imports no involvement of Depots exists.

Whole sale department with their own will and demand send order in case of imports.

Then when the consignment comes distribute in the field total consignment through the depots

order and own forecasting.

Market SurveyThen on 17th July 2008 I went to market on two shops on a survey.

I visit Barkat Market shop and Y block market in Defense


I checked the new articles of Skooz which recently come from Local purchase these were

Skooz 328, 367, and 366. I checked their sales but that was nil because these were recently

coming articles.

I asked about the best article of the year. That was PB05 and PB01.

In ladies GL06 chappal was most selling item.

In Barkat average price of article was 1000 RS.

In Defense average price range was 2000 RS.

The following are the facts and figures of previous and this year in which we can see

last year sales pairs and last year sale value with this year sale pairs and this sale

value with total %age comparison of this year with previous year.Sale From Sale From Sale From Sale From 1St. Jan. 1St. Jan. 1St. Jan. 1St. Jan. Totally

Pairs Pairs Value Value % Ag. L.y T.y L.y T.y L.y

MenSports+Cheetah (PU) 300141 419197 210797446.6 307999764

146.11

Shoes/Moccs 415074 431445 326693004.3 354588600.8 108.54

Chappals 1031258 1250243 386070054 469946722.2 121.73

Sandals 55282 58346 33040474.72 35965185.39 108.85

Canvas 59028 56462 11494546.81 10433859.58 90.77


PVC 29343 15467 3192178 1828512 57.28

EVA 9737 19 1266008.5 1784 0.14

Hawai 20950 11721 1221945.62 782489.9773 64.04

Total Men 1920813 2242900 973775658.5 1181546918 121.34

Ladies

Sports 729 3556 366928 1173470.33 319.81

Shoes/Pumpies 115662 145603 36090763.93 47337804 131.16

Chappals 625783 851846 162301976 216246094.4 133.24

Sandals 24515 17920 7659129 5689143.732 74.28

Canvas 21794 20242 3374129.93 3020765.156 89.53

PVC 2 0 102 0 -

EVA 5935 55 541346.64 3764.836 0.70

Hawai 10179 7349 514914.78 456421.65 88.64

Total Ladies 804599 1046571 210849290.3 273927464.1 129.92

YouthSports+Cheetah (PU) 23141 32311 10103600.95 16314628.4

161.47

Shoes/Moccs 64984 80922 18229835 22521207.83 123.54

Chappals 50329 89397 16130815.38 29392149.26 182.21

Sandals 12807 11424 3248171 2889124 88.95

Canvas 5381 5011 682912.93 741006.9 108.51

PVC 0 0 0 0 #DIV/0!

EVA 2296 734 196659 61157 31.10

Hawai 0 0 0 0 #DIV/0!

Total Youth 158938 219799 48591994.26 71919273.39 148.01

Boys

Sports 20565 13040 8397632 5048984 60.12

Shoes/Moccs 64154 84955 17323900.11 22812658 131.68


Chappals 12395 13856 1721936.45 1939249.7 112.62

Sandals 12496 13632 2921710 3152247.91 107.89

Canvas 6680 9498 717637.75 1200236.07 167.25

PVC 0 0 0 0 #DIV/0!

EVA 1736 243 126303 17265 13.67

Hawai 0 0 0 0 #DIV/0!

Total Boys 118026 135224 31209119.31 34170640.68 109.49

Girls

Sports 2050 1171 954235 577896 60.56

Shoes/Pumpies 49477 65477 10716601 15435280 144.03

Chappals 3830 25467 807159 4261346 527.94

Sandals 1277 323 214718 58452 27.22

Canvas 0 0 0 0 #DIV/0!PVC 0 0 0 0 #DIV/0!EVA 0 0 0 0 #DIV/0!Hawai 0 0 0 0 #DIV/0!

Total Girls 56634 92438 12692713 20332974 160.19

Childrens

Sports 14215 8298 5809420 3752059 64.59

Shoes/Moccs 52497 68175 10134248 14144786 139.57

Chappals 30172 43717 3577395.05 5433118.06 151.87

Sandals 24017 31772 4592122 6143467.64 133.78

Canvas 0 0 0 0 #DIV/0!PVC 0 0 0 0 #DIV/0!EVA 0 0 0 0 #DIV/0!Hawai 0 0 0 0 #DIV/0!

Total Children 120901 151962 24113185.05 29473430.7 122.23

Total B-Pairs 166 -2231 0 0 #DIV/0!

G/Total: 3180077 3886663 1301231960 1611370701 123.83


Marketing

Competitive AdvantageServis has competitive advantage on it product range, its brands name, and Price.

Customer Services


Servis provide Customer Services through give them warranty and guarantee on shoes.

Customer Relationship ManagementTo develop customer relationship management Servis provide Loyalty cards to their Loyal

customers. Every customer who consumes 1500 RS to purchase some article can become a

loyal customer and can get Loyalty card by filling a form and then after some process company

dispatches the card. Company also sends catalogues on customer’s addresses. One time

entry on every 500 consumed in the shop. Last year one person won a car who belongs to

from Jhelum then company advertise him through ads photographs and print media. Company

also provide after sale services.

Marketing StrategySSC use aggressive marketing and take advantage through give ads on TV channels, different

campaigns and promotional activities so their competitor is so far from them on this side.

AdvertisingThere is a team who plan that when there is need of advertisement and how to advertise or

running a campaign but there is no advertising agency of Servis so Servis use outsourcing

from different advertising agencies.

BCG Matrix


This was not difficult for me to find that where SSC falls in BCG matrix. SSC falls in Stars

situation because Stars generate large amount of cash because of their strong relative market

share, but also consume large amounts of cash because of their high growth rate; therefore

the cash in each direction approximately nets out. If a star can maintain its large market share,

it will become a cash cow when the market growth rate declines. The portfolio of a diversified

company always should have stars that will become the next cash cows and ensure future

cash generation.


SSC ?

Cash Cow Dog

SWOT Analysis

Following are the strengths, weaknesses, opportunities and threats which I personally observe

in the company.

Strengths:Largest footwear group in Pakistan

60 years experience

Old employees

Accessible to all income segments in country.

Geographical coverage

Variety of products

Image of durable shoes

Strong market share in sports and school shoes

Brand name like Cheetah, Don Carlos

Weaknesses:

Female market penetration is weak

Low aspiration value in high income group

Don Carlos communication seems to be static. Need to find ways to build on the strong equity

of the brand.

Weak corporate image of Servis group

Distribution network as compare to Bata is little bit weak.


Opportunities:

Penetration in the female segment

Creation of innovation and customized products

Further segmentation within sports segment

Improve shopping experience at retail outlets

Major portion of market untapped

Threats:

Stiff competition in the market from local and foreign brands

Aggressive marketing tactics by other shoe manufacturers.

Different market segments have been targeted by competition.

Unbranded small players competing against different brands of Servis


Recommendation

Servis sales corporations is weak in its competitors analysis, because when FOL or

Retail sets their articles prices they should be aware of competitors prices so I will

recommend that they should also study to their competitor that what are Bata’s strategy

like which campaign or pricing strategy Bata is going to launch.

MIS system is weak. So there should be such team who operate marketing information

system.

Prices are high of SERVIS articles because now in the market there are China shoes

and local companies, so now there is need to be reduce the prices.

Promotional activities are same which were 10 years ago, like a low quality ball with

every Skooz so there is need to change them in this modern Era.

Rewards and compensations are not satisfying to its employees, so there should be

such rewards and benefits that if employees achieve the targets then they should be

satisfied.

Servis should allow some degree of freedom in its policies and work procedures and

policies according to the environment and conditions of Pakistan without having to ask

for permission every time.

In the outlets of Servis there is no availability of all the articles that’s why positioning of

Servis in general customer is that there is no development in the shoes or the young

generation thinks that there is no funky shoes which will attract them so Servis should

make positioning in the mind of customer about their developed articles and fleets.

Budget of FOL is not enough, budget should be increase because FOL is targeting low

income people and giving a good business to company.


Servis Shoes

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