Servis Final Compliation

8/2/2019 Servis Final Compliation

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Acknowledgement:This report would not have been completed without the help of some key individuals. First and

foremost we would like to thank Allah Almighty for bestowing upon us his mercy. Then we

would like to acknowledge Dr. Siddique for providing us with an opportunity to undertake such a

project. Furthermore, this report would not have been possible without Mr. Amjad Jamshaid who


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set up the appointment with us at servis mega store .he took out time for us from his hectic

schedule. Lastly, all of us would like to thank our parents who supported us in completing this

report and providing transportation for us.


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Table of contents:

Title Page no.

Mission and vision statement 4

Executive summary 5Organization background 6-7

Servis products 8

Marketing intermediaries 9

Competitors history 10-11

Financial results 12

External environment

Markets Competitive Economic Demographics Political and legal Technological

13-16

Appointment briefing 17-20

Swot analysis 21-23

Demographic +Marketing situation (4ps) 24-26

Relaunching of toz 27

Future marketing situation

-4 pcs

-marketing strategies

28-35

Recommendations & conclusion 36


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MISSION STATEMENT

VISION STATEMENT

To be the result oriented and profitable companyimproving market share, quality, diversity, availability,presentation, reliability, and customers acceptance.

To emerge as the growth oriented concern ensuringoptimum return and value addition to its shareholders.

To ensure cost consciousness in decision making andoperations without compromising the commitment toquality.

To create an efficient resource management andconducive business environment.

To keep abreast with modern technology and design tooptimize production and enhance brand image to attaininternational recognition for the companys product.

To be a market leader providing quality footwear tyre and tube and allied products. Tostrive for excellence and global recognition by continuous improvement, innovation.

Dedication and growth.


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Executive Summary

Servis TOZ is a hypothetical re launch of PEDSHOOZ in which the brand in terms of new

product boost attributes, design and holistic approach. The existing approach of Toz lackedsubstance and required a much needed boost up.

The plan covers all the aspects of the new approach in terms of the marketing mix and new

developments in the products.

The main goals to achieve with this re launch are to increase market share, reposition the

companys and differentiate itself from its competitors.

It plans to do this by, changing its product attributes and targeting them especially for children

feet, which is a first time approach for any Pakistani company. The new features include that the

new soles are slip proof and encourage foot growth.

We recommend this plan to be implemented by a person who has knowledge of the marketing

field and understands that such an approach in the Pakistani approach is novel.


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Organization background

The story of Servis begins with a group of friends - young, energetic, fresh from college - who

established Service Industries more than 50 years ago..

These young men, named Ch. Nazar Muhammad (Late), Ch. Muhammad Husain (Late) bothfrom Gujarat district and Ch. Muhammad Saeed (Late) from Gujranwala District, started

business in 1941 at a small scale in Lahore. At that time, they were only manufacturing handbagsand some other sports goods. Within years their business flourished remarkably and they were

supplying their products to every corner of India at the time of Partition.

Chaudhry Nazar Mohammad

Mohammad Husain Chaudhry

In 1954, they installed a shoe manufacturing plant at industrial area Gulberg, Lahore. Thisstarted production in the same year. The industry started manufacturing various types of shoes.

Later management shifted the factory from Lahore to Gujarat. Service Sales Corporation (Pvt.)

Ltd.the Groups marketing company was established in 1959. Humility, fairness, and respect

were the values close to the heart of these founders and it were these values that led tophenomenal success of the Group over the years.

Today, the production side of the company has flourished into Service Industries Limited (SIL)

which has world-class shoes, tyres, tubes, and rubber production facilities in Gujarat and

Muridke. SIL is also the leading exporter of footwear. Service Sales Corporation (Pvt.) Ltd.(SSC) is today Pakistans leading footwear retailer which is also diversifying into other

businesses.


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The Board and Management comprises of:

ChairmanMr. Ahmad Javed CEO

Mr. Omar Saeed

Board of Directors Mr. Arif Saeed Mr. Omar Saeed Mr. Ahmad Javed Mr. M. Ijaz Butt Mr. Hassan Javed Mr. Ahmad Shahid Hussain Mr. Hamid Hussain Mr. Riaz Ahmed Mr. Manzoor Ahmed

Group Executive Committee Mr. Arif Saeed Mr. Omar Saeed Mr. Hassan Javed Management Team

Mr. Ghulam Muhammad (GM SIL Gujrat Factory) Mr. Adnan Wasal (GM SIL Muridke Factory) Mr. Jawwad Faisal (Chief Commercial Officer) Mr. Sohail Chaudhry (GM Domestic Sales) Mr. Muhammad Usman Amjad (Chief Financial Officer) Mr. Hassan Ehsan (Head of Exports) Mr. Hyder Chaudry (Head of Human Resource)


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PRODUCTS

Leather Shoes

Sports Shoes

Canvas Shoes

Rubber Sandals

Rubber Slippers

Safety Shoes

Footwear for Defense Forces

Tyres and Tubes for Bicycles, Motor Bikes and Cars

Servis Shoes BrandsDon Carlos

Cheetah

Calza

Liza

Toz

Skooz

Soul


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MARKETING INTERMEDIARIES:

Marketing intermediaries include wholesalers, vendors, franchises and retailors. servis has 2

factories in Gujrat, however they do not suffice for its needs as not only do the factories produce

for servis itself but also for other companies. To fulfill its requirements it also imports from

China and Srilanka and contacts out to approximately 35 vendors in Faisalabad and Lahore.

Most of Servis outlets are company owned run by trained management. It has 450 retailers and

400+ wholesalers.


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Competitor history

Bata

BATA is a multinational company and has played a vital roll in the economic progress of

Pakistan. It has transferred sophisticated technology and business skills to the country and

provides direct and indirect employment to about 10,000 people. Bata also supports a large

number of local manufacturers by buying raw materials from them.

Bata has always been the market leader and in order to maintain its leadership it has invested

millions of rupees in updating its systems and equipment during the last few years. This will

enable the company to expand, modernize and develop its operations and in the process provide

additional employment opportunities.Bata the market leader is well equipped to cater the customers demands and to meet future

challenges.

Brands- BATA has many brands including :

Bubblegummers is the leading children's footwear brand in Latin America and hasdevelopment an extensive presence in Asia and in Europe. Bubblegummers offers good

quality, comfortable, funny and colourful shoes for the 0 to 9 olds that assure the healthy

growth of a child's foot.

Marie Claire shoes are for women with an active lifestyle who seek contemporarymodern styles, Marie Claire shoe stores successfully opened in Latin America and Asia.

Bata Brands is the trademark owner of Marie Claire for shoes worldwide (except in Japan

and Korea).

The Weinbrenner line is made up of leather shoes and boots, low, mid and high cut. Cutsor design are dictated by fashion, but well constructed.

Power embodies diversity with ranges in running, training, court, basketball, football and

Outdoor that combines function with creativity.To enhance the different categories there

is also a range of young, casual and trendy collection of shoes. The range that has

technical features and functions to boast the Power image is the badminton and court

collections.


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Comfort will be an important feature in design and assembly of all the comfit shoes. Many of the

Desirable and characteristics such as double stitching, molded and massage insole, latex foam

insole, soft textile or cambrelle lining will be used to emphasize the brand image of both comfort

and style

EBH ( English boot house )

EBH offers one of the best collections of shoes you will ever see. EBH boasts over 55 years of

shared shoe industry experience with its founders, leading consumer-driven footwear company inthe country, and the leader in technically advanced comfort footwear.

CATEGORIES OF EBH

- Accessories- Leather Goods- Branded shoes

Children

- Men- Clothing- Women

+ Bridal Collections

+ Ladies Casual Shoes

+ Ladies Sandals

+ Ladies Slippers

+Ladies Shoes


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Financial results

Balance sheet

As at December 31st

, 2010

Equity and liabilitiesShare capital and reserves

Share capitalReserves

Noncurrent liabilities

Long term financial secured

Liabilities against assets subject to finance lease

Long term depositsDeferred liabilities

Current liabilities

Trade and other payablesInterest and markup accrued

Short term borrowings secured

Current portion of:Long term financing secured

Liabilities against assets subject to finance lease

Provision for taxation

Contingencies and commitments

2010

120,2881,579,538

1,699,826

214,263

26262

880

225,641

467,046

1,033,217

40,362

1119143

78,762

10,07094,433

4,542,859

2009

120,2881,401,796

1,522,084

142,073

36,344

740

152,767

331,924

787,250

15,703

703,174

60,000

8,962222,271

3,651,368


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External environment

MarketsServis is considered a market leader in the shoe industry. It fuctions primarily in Pakistanhowever it has explored markets outside Pakistan and is slowly establishing in Kenya as the

locals there have the same tastes as Pakistanis. It did expand to Dubai and Saudia Arabia

however it ended its operations due to failure and returned to Pakistan.

Social and cultural environment:Def: Social or Social environment of business means all factors which affects business socially.

Every business works in a society, so societies ' different factors like family, educationalinstitutions and religion affects business.

For every business, society matters a lot as their target market is also in that society. Social

environment mainly consists of Family, educational institutions and religion. Servis as a shoe

market target men, women and kids in a society. Shoes are the basic needs for every family.

Servis has divided its target market as family needs e.g. in a family if there are school going

children then they need school shoes of different colors (back and white mainly, or if there are

teenagers who are usually party animals want some funky and party wears,servis provides that

category too or there are singles/parents living in a family then they have variety of their shoes

too (women and men) for different occasions.

Thus, it fulfills Pakistans need for a shoe store which caters to everyone in the family.

If we take above example of school going children then servis as a shoe brand targets students as

well which includes all kind of students from kinder garden till college going students.

Like Family and Educational institutes, religion also effects business socially as some people are

really attached to their religion. As servis is a Pakistani Shoe company and the religion in

Pakistan is Islam, they should keep in their minds while making product that the material they

are using is halal. E.g. they cant use any animals skin that is haram in our religion.


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Cultural environment:Culture is the environment that surrounds you at work all of the time. Culture is a powerful

element that shapes your work enjoyment, your work relationships, and your work processes.

But, culture is something that you cannot actually see, except through its physical manifestations

in your work place. Culture is made up of the values, beliefs, underlying assumptions, attitudes,

and behaviors shared by a group of people. Culture is the behavior that results when a group

arrives at a set of - generally unspoken and unwritten - rules for working together. An

organizations culture is made up of all of the life experiences each employee brings to the

organization. Culture is especially influenced by the organizations founder, executives, and

other managerial staff because of their role in decision making and strategic direction.

Servis is very keen on its corporate environment as it focuses on every employee to be trained to

ensure a standard service among all the stores.

Political-Legal environment:

Political Environment:No matter how attractive the economic prospects of a particular country or region are, doing

business there might prove to be financially unsuccessful if the host government imposes heavy

financial penalties on a company or if unanticipated events in the political arena lead to the lossof income-generating assets. The political environment in which the firm operates (or plan to

operate) will have a significant impact on a company's international marketing activities. The

greater the level of involvement in a foreign markets, the greater the need to monitor the politicalclimate of the countries business is conducted. Changes in government often result in changes in

policy and attitudes towards foreign business. E.g. servis is a Pakistani company and as the

economical conditions of Pakistan is not very good then the company may suffer from politicalsituations while trading their products internationally.

Servis has accepted Pakistans politically unstable environment and hasnt allowed it to influence

it directly. As it caters to all income groups it has been able to diversify its risk.


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Legal Environment:The legal environment is derived partly from the political climate in a country and has threedistinct dimensions to it:

The domestic laws of each of your foreign market The domestic laws of your home country International law in general

Domestic laws govern marketing within a country, e.g. the physical attributes of a product willbe influenced by laws (designed to protect consumers) relating to the purity, safety or

performance of the product. Domestic laws might also constrain marketers in the areas of

product packaging, marking and labeling.

Buyers and sellers are at times also subject to international law, which may be defined asthat body of rules which regulates relationships between countries or other internationallegal persons.

TechnologicalEnvironment:Technology can be defined as the method or technique for converting inputs to outputs inaccomplishing a specific task. Thus, the terms 'method' and 'technique' refer not only to the

knowledge but also to the skills and the means for accomplishing a task. Technologicalinnovation, then, refers to the increase in knowledge, the improvement in skills, or the discovery

of a new or improved means that extends people's ability to achieve a given task. Changes in the

technological environment have had some of the most dramatic effects on business. A companymay be thoroughly committed to a particular type of technology, and may have made major

investments in equipment and training only to see a new, more innovative and cost-effective

technology emerge. Technology becomes obsolete very quickly and getting replaced by newmodels. E.g. Sevis as a shoe company uses machinery while making products so they should

keep in their minds that with new innovations they have to change their technological

instruments. By technology a company can update their business. Furthermore, changes in thetechnological can affect cost (efficient production, lowers the unit costs of production), quality(introduce new and better features), and result in new innovations.

Only recently has servis made its database computerized which should have been done long

before and this technological shift would make it more efficient.


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DEMOGRAPHIC ENVIRONMENTThe demographic environment includes the study of human population in terms of size, location,

age, sex race, occupation and other statistical information.Servic target both male and female andprovides benefits to them by manufacturing innovative designs. They also target all incomegroups including rural and urban areas.servic has 30 outlets in Karachi

There are 67 Mega stores of service which basically cater to upper class while other outlets

including 36 factory outlets (FOL) cater lower and middle class.

ECONOMIC ENVIRONMENT

Every business needs to be cautions of its economic environment and servis is no exception. InPakistan robust economic growth, favorable economic policies and increase in key economic

indicators have all supported growth within the banking sector.

Service main strengths helps it to survive as it provides products for all income brackets. In 2010

it was awarded by Germany for being first Pakistani company to give an MNC tough

competition.


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Questionnaire- Servis pvt limited :

Mr. Amjad Jamshaid(Assistant District Manager)granted us an appointment on Wednesday 26-

10-2011. We met at the Servic head store located next to sanaullah store. The interview lasted for

approx 40 minutes where each group member took turns to ask questions. We had planned an

questionnaire and used it as a guideline to ask questions. Mr.Amjad Jamshaid was thoroughly

explanatory and answered each question with patience. All the group members felt that the

experience was pleasant and took our learning curve higher.

Situation analysis -

How long has the company been involved in this business?______________________________________________________________________________

______________________________________________________________________________

What sort of product group or industry group does your company fall under?____________________________________________________________________________________________________________________________________________________________

Which geographical location of the globe or the country is a predominant market for yourcompany?

______________________________________________________________________________

______________________________________________________________________________

What is preventing Servis from exploring markets outside Pakistan?____________________________________________________________________________________________________________________________________________________________

______________________________________________________________________________

What segment of your business needs to be enhanced in the coming future?______________________________________________________________________________

______________________________________________________________________________

What is the greatest profit making aspect of your company?______________________________________________________________________________

______________________________________________________________________________

Who do you see as your major competitors?______________________________________________________________________________

_____________________________________________________________________________

State any 3 points that make you stand apart from your competitors.


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______________________________________________________________________________

____________________________________________________________________________________________________________________________________

What goals have you set for your business for the next 5 years? (Opportunities)____________________________________________________________________________________________________________________________________________________________

______________________________________________________________________________

Servis is a vast empire. Why not concentrate on one industry and become its marketleaders?

______________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________

______________________________________________________________________________

What can be the worst situation for your business in the coming year? (Threats)______________________________________________________________________________

______________________________________________________________________________

Every business has key strength (core competency)what is Serviss strength?______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

Likewise every business has a weaknesswhat is Serviss weakness?______________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________

xAre you planning to route your business into new products or customer groups?____________________________________________________________________________________________________________________________________________________________

What are your plans to reward your long term customers?____________________________________________________________________________________________________________________________________________________________

What has been the timeframe of marketing strategies that have been undertaken in thepast?


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______________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________

Did you measure the success of each of those efforts?Yes, for all of themNo, for none of them

For a few of them

What are the factors determining the success of the marketing strategies?No. of first time buyers

No. of prospective customers contacted

No. of repeat buyers

Other ________________________________________

Did you administer any brand awareness survey among customers in the past?Yes

No

How would you describe your branding strategy?______________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________

If servis was a person what personality would you give it? (Confident, bold,sophisticated, modest for eg)______________________________________________________________________________

______________________________________________________________________________

Describe the customer segment you are catering to (refer to the demographics table)______________________________________________________________________________

______________________________________________________________________________

Do you think your customers are becoming more brand aware with your variouspromotional strategies?

YesNo (if not, why) ________________________________________________

MostlyRarely


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Do you think you are providing services according to the needs and demands of thecustomer?

YesNo

Sometimes

What is the reason for some customers not choosing your brands?______________________________________________________________________________

______________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________

Have you segregated and found your most valuable customers?YesNo

What forms of promotional activities have been most successful for your company? E.g. -word of mouth advertising, posters, billboards, public relations, Internet marketing andadvertising, offline advertising, and other marketing programs.

______________________________________________________________________________

______________________________________________________________________________

What pricing strategy does Servis employ?____________________________________________________________________________________________________________________________________________________________

Identify your marketing intermediaries- which ones are the most valuable to you?(Wholesalers, franchises, retailers, agents)


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SWOT of Servis:

Strengths: Servis brand itself is a strength

Quality, pricing strategy of shows and variety in shoes are greatest strengths of servis Servis captures the whole family-men, women and kids. Servis focus on every class of the society-upper class, middle class and lower class Servis own its own factories one in Gujarat and other is in Faisalabad Servis is competing a multinational company-Bata (Canadian company) Servis admin is sincere with their employees; they give good training skills and benefits

to them.

Servis provides good discount in every occasion of year like Eids, summer, winter andschool season.

Servis apart from retailing sector have open up a pharmacy sector which provides all kindof medical services to hospitals.

Servis provide benefits to their loyal customers too like offering loyalty cards and greeton occasions through mails and special discounts.

Its two main brands-don corlos and liza are a huge strength for it.Weaknesses: Servis has not been able to provide its services at international level. They started their

business in Dubai and Saudi Arabia but they had to wind up soon.

Servis usually has trouble from suppliers, the raw materials are not supplied at time. Manual work in factories took more control, technological changes( new machineries) infactories came in 2009 . There are only two factories of servis in whole Pakistan. They cannot build more because

of economical problems in country.

Due to the problems in supplying area, sometimes the manufacturing of shoes is affectedand the company imports from China and Indonesia.

Promotional sector is also very weak, customers barely see the advertisements of sevis.


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Threats: Bata as a multinational company can be a threat to servis though nowadays its strength

for servis but if Bata gets more stronger than it will b a threat.

As servis has many brands like Toz,Liza,don carlos etc; the competitor of each brand isdifferent like fitrite, EBH, Aerosoft etc so servis has threats by each of its brand

competitor.

Opportunities: Don carlos and Liza-brands of servis give servis a lot of profit, they have an opportunity

to extend these brands internationally.

For Servis, Bata making its shops next to it can be a threat but according to servis theytake it as a opportunity by making an environment of shoe market so that it become easy

for customers to reach them in short period of time.

They also take advantages of seasons like summer, winter etc by turning them into theiroccasions like Eids and school season in which they give discounts and customers get

delighted and shop more which increases their turnover rate.

In rural areas the market measure is very low so servis took it as an opportunity andstarted their market in those areas.

The turnover rate of servis increased by 35% from last year they have an opportunity toincrease it more


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Swot of toz

Strengths:1.Toz-a brand by Servis has its own core competencies/strengths that are :

It brings kids a colorful world packed full of fun and adventure. Cool designs and great styles makes the brand, coolest shoes that a boy or girl could

have.

2.Toz pricing range is very economical for every class of our Pakistani society.

3.It has a huge variety of kids shoes like sandals, joggers and slippers for both male and female

Weaknesses:1.Toz doesnt give much profit to Servis as its income rate is very less.

2.It does not have a very good quality collection.

3.The diversity of shoes doesnt give as much profit as they should so its a major weakness for

Servis.

4.The advertisement sector of Toz is nil, they dont use TV or internet as their medium for ads.

Threats:1.The main threat of Toz is bubblegummer shoes of Bata as they have more customers range

and their turnover rate is also greater than Toz.

2.Aerosoft which was the part of Servis has started a section for kids and its getting popular day

by day. Apart from Bubblegummers, Toz has a total new competitor as well which is not a good

sign for Servis.

Opportunities:1.As the durability and quality effects Toz profit a lot, they have an opportunity to make it better

so that new customers get fascinated by them.

2. Batas brand bubblegummers have its own shop to attract their target market i.e. kids, Toz

also have an enormous chance to make a platform just for kids variety in it.

3.Toz have an opportunity to add something more in their brand for kids like additional things

(free socks or laces) to attract parents too. This can high their profit as their range of customers

will increase


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Target marketGEOGRAPHICS:

Region Subcontinent

City All major cities- Karachi, lahore, Islamabad

Rural and semi urban areas Both

Demographic

Age 3-12 years kids

Family size Babies,school going children,young single &married,older married

Gender Both males and females

Income Lower middle class(10,000-15,000),upper

middle class(50,000-100000)

Occupation School going children

Education School going children

Psychographic

Lifestyle Outdoor oriented

Personality Ambitious, comfortable

Behavioural

Occasions Special(eid & party wear)

Benefits Quality and variety in brand

User status First time user,regular user,loyal user

Usage rate Medium

Loyalty status Medium

Readiness stage Interested,intending to buy

Attitude towards product Positive


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Four pcsServis has a shoe for everyone in the family, offering us a wide range to work from, after lookingat each product we choose Toz which caters to the youngster of the family

ProductTozs target groups are children including both genders. It offers shoes for casual wearand formal occasions but not for school as Servis has created another brand solely for school

shoes called skooz. The shoes and slippers are trendy and attractive for the kids yet sturdy and

durable enough for parents. Thus, its target market also includes parents with children under the

age of 12.

Tozs tagline is fun never stops which reflects ideas of the target market it aims to attract. Kids

and the word fun are always associated with each other. Fun is also a word which a 4-9years oldchild can easily read and understand. Upon hearing this tagline parents can also easily identify

that the brand caters to children.

The brand name toz is derived from toys which are a childs favorite pastime; again the brand

name immediately allows a person to recognize that it offers kids shoes.

Price Tozs price bracket starts from PKR200 to PKR 1000 thus it mainly attracts middle

class income groups and yet the lower income can also afford Toz with their low priced shoes.

Promotions Servis has decided this year to aggressively promote its brands and Toz is noexception. The main forms of promotional activity used are TV adverts which are colorfully

designed to attract children. The other forms which they use to a lesser extent are the website

which offers the user to view an enlargement of the shoe and posters. Word of mouth is also

heavily relied on as servis had primarily built its reputation from it.

Placement (Distribution)- most of Servis outlets are company owned thus what it producesit also retails itself. Servis outlets are located both in the rural areas and the urban areas and are

easily accessible to the consumers.


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Positioning:

positioning means the process by which, marketers try to create an image or identity in the minds

of their target market for its brand.

When people think of servis the words affordable, satisfactory, accessible and durable comes to

their minds. In comparison to other shoe brands servis has positioned itself as a consistent

company offering goods which will last and be easy on the pocket. The sheer number of years it

has been around, evokes a trust that the new and upcoming brands cannot tackle.


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Relaunching of tozFuture marketing situation

NEW PRODUCT NAME:PEDSHOOZ

NEW TAGLINE:BEST FOR GROWING FEET


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Future marketing situationThe product's NEW marketing mix:

PRODUCT:What benefits must the product provide?

Pedshooz would offer utter comfort to the wearer, along with quality and durability. Theemphasis will now lie on the enabling children to walk or run in the shoes for long period of

time.

What features and attributes will we include to deliver those benefits?In order to provide a complete sense of comfort the new features in the shoes would include

especially designed soles carved out according to a childs foot and provide no hindrance for thegrowing feet. The shoes would have breathing holes in them to prevent sweat accumulation and

blisters.

What type of design and styling will we use?Newer and fresher designs would be incorporated in the shoes, especially for the limited edition

range.

What level of quality is required?

A high level of quality would be provide shifting emphasis from shoe design to shoe comfort

NEW BRAND NAME:PEDSHOOZ

The previous brand name was TOZ which was derived from the word toes but apart from this

deriviation there was nothing in the name which reflected the philosophy of the new features.

The new name pedshooz is derived from two words ped which means child in greek and

shooz which is a funky way of saying shoes. The greeks are said to be the originators of

science and philosophy which is the new element introduced in our products.


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New tagline-best for growing feet

The tagline implies that the product offers complete care and is

designed especially for the child itself- it denotes care, comfortand personalization. Also it it implies that Servis is the bestcompany that offers products for growing feet.

New packaging:The current packaging of Servis is the normal packaging offered by most shoe stores i.e. shoes

are inserted within the shoe then wrapped in plastic and finally put in a cardbroad box. The new

packaging however would aim to differentiate itself from the other shoe stores by packaging its

shoes in pink boxes for girl shoes and blue boxes for boy shoes.

Price:Servis is offering

What factors influence the price?

How much in demand the product is determines the price of it and the purchasing power

customers. For pedshooz the lower and upper middleclass would be targeted.

What is the total cost of the product?

With the inclusion of new features in the product the overall cost would go up and in order to

cover the manufacturing costs the price would have to be increased slightly.

What prices are our competitors charging?

The competitors are charging between 3002000 minimum for children footwear

What are our customer's perceptions of value?

Pakistani people on the whole value quality and durability above shoe design and style as the aim

is to provide the child with footwear that would give them complete protection. The children on

the other hand are attracted by flashy designs, loud colors and etc. The challenge and aim here is

to find an ideal mix between quality and style. The childrens feet would be completed cared for

yet in a stylish manner- thus pleasing both child and parent.


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What are our pricing objectives?

To break-even maximize long-run profit increase market share discourage new entrants into the industry

What pricing strategies and tactics will we use?

Psychological pricing- unrounded price amounts give the illusion that the product is relatively

low priced in comparison to fully rounded figures such as 299 PKR. Pedshooz will use this

strategy I order to attract the customers.

Market skimming- for its limited edition range pedshooz would charge a premium as the range

would be targeted towards high users looking for something different for their children and

willing to pay for the different element.

Competitive pricing- currently Toz applies this strategy and after the launch pedshooz will

continue to use it as the shoe industry is a competitive industry with many options to choose

from, thus pedshooz cannot charge to high a price in fear of pricing itself out of the market.

Will we offer discounts or allowances?

Offers and discounts would be offered during the festive seasons such as eid and new years. A

loyalty card would be developed to offer discounted to long term customers with discount of 5%

which would increase as more points are added up on the card.
http://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Market_share


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Promotional activities: Who is our target audience?

The target market is children aged between 3-12 years old, ofschool going age and their parents who also `need to be

attracted to purchases.

What response are we seeking from our target audience?

We are seeking a shift in attitude of how parents buy shoes for their children rather than just

looking at style, after our promotional activities they will also look for the comfort of the child.

What message strategy will we use to reach our target audience?

To give out a holistic message that Servis is provided children footwear offering complete care

and comfort along with stylish designsjust one step behind making customized products. in as

many less words as possible.

What media strategy will we use?Mainating public realtions : Such as sponsoring school events . for example eid milan party,

school plays etc. this will create awreness among the children about pedshooz and the childrenin turn will force their parents to buy shoes from Servis.

Focusing more on T.V advertisement:Currently servis is not paying more attention onadvertisement so we came up with an idea that pedshooz should be advertised more so that more

children become aware of it. For this we can Advertise smartly by focusing more on cartoon

chanels such as disney , cartoon network, pogo, nickledon.

Internet advertising: Children nowadays have great access to the internet thus placing ads on

websites such as facebook, would help us target the children. As through these socialnetworkinng sites we can target at a particular age group. Especially games sites which are

frequently visited by children.


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What is our promotional budget?

The promotional budget would have to be increased in order to convey the message, by atleast

30%.

How will evaluate the effectiveness of our promotional efforts?

The effectiveness of the promotional efforts would be evaluated by

Trained employees asking customers for feedback Placing customer feedback forms in all outlets Correlating sales with promotion efforts Sending out a survey to all long term BnP customers Getting feedback directly from children in their schools

PlacementHow will we distribute our products?

Servishas two type of main distribution channels-

Servis stores Servis megastores- the limited edition would be placed in these stores in order to attract

the upper class buyers.

Will we market direct to end-users or will we use intermediaries?

Servis is the manufacturer of Toz Pedshooz and will directly provide its products to its outlets.

Through franchising servis can give other owners a chance to sell with the brand name Servis.

Servis can make more factories so that the supplying problems of shoes lessen down. Servis

mega stores are few in Pakistan, they should make some more so that their customers find morevariety in their brands.


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What types of outlets will we use?

Megastores which provide all of the partner and servis

brands are located in the posh areas of Pakistan like the

major cities- Karachi, Lahore, Islamabad

Top three locations:

Tariq Road Karachi

Bank Road Rawalpindi

Link Road Lahore

Line extensions : Creating a limited edition shoe collection-which would only be available for a berif period of time ( 3 months). the shoe range would be

separate for girls and boys. The boy shoes would be designed with the male cartoon characters

while girls with the female cartoon characters.

By designing this new line Servis would be differentiating itself from its compertiors who dont

offer an exclusive range for children in particular. Todayss children make their own purchase

decisions and thus different designs would attract them.

Parents who come under the category of early adopterswho are prepared to pay a higherprice to have the latest or best product in the market would be the target market for this range.

This range would be placed in all the Megastores along with the branches located in posh areas.

Price skimming price skimming would be used which involves setting a high price before other

competitors come into the market. This would be ideal for the launching of this range as parents

would want the shoes before others have them.

This product development strategy will help provide the current market with a new product type

helping increase market share.


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Brand extensionsExtending into a new line of socks along with the shoes. The

socks would reflect the funky and colourful look of the shoesand in addition provide excellance in quality and comfort.

Brandname- PedSocsExtending into a new line of arch support insoles which would prevent heel pain and the

deveopment of any shoe aliment.

The products positioning-Positioning has come to mean the process by which marketers try to create an image or identity

in the minds of their target market for its product, brand, or organization.

Re-positioning involves changing the identity of a product, relative to the identity of competing

products, in the collective minds of the target market.

Before (Toz)-Toz foucsed primarily on providing fun, colorful designs and attracting the children which were

its primary target market. Toz defines color, designs and fun. Its the brand for children who

want fun and adventure in their life with style.

Core competency-:

Colorful designs attracting the child itself being offered at a affordable price.

Key words describing position-

Colorful Fun Adventure Children
http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Product_(business)


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PEDSHOOZPEDSHOOZ focuses on providing comfort and care along

with designed shoes and catering to the upper class by

developing the new product range of limited edition

collection. The shoes now have added features in them such

as breathing holes to avoid sweating and especially designed

soles to prevent the child from slipping and allow the foot to form properly.

Key words describing position:

Comfort Care Funky


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CONCLUSION & RECOMMENDATIONS:

The relaunch of Toz as Pedshooz would give it acompetive advantage over its competitiors such as BATA who have failed to single out their core

compentency and tell their consumers what they are good at most. Although the implementation

of this plan requires heavy funding yet we as a group believe that in the long run the investment

would pay off. In addition, through intensive promotion activities more awarness would becreated about the brand, resulting in more sales.

Through this marketing plan Servis would be able to increase its market share and reposition

itself as an shoe provider who understands you. Through this approach it will be able to tapinto foreign markets whereas with its current approach it cannot.

However, care must be taken in terms of who is given the responsibility to lead and implementthis plan as it is a novel approach and requires marketing knowledge beforehand.

As Pedshooz now boasts of being the best it must now also live upto its expectations as Tozwas already fulfilling the customers expectation to deliver a high level of conformance quality

but Pedshooz must now deliver performance quality!

As stated earlier, Pedshooz would deliver high quality by the new features added to the shoes,they would not only differentiate themselves from their competitors but also increase their

existing brand image.

Servis on the whole, must increase the number of outlets all over Pakistan so that accessibility isincreased for its customers. At the moment, BATA has numerous outlets throughout the country

and the result is that consumers barely remember Servis.

Furthermore Servis must engage in more promotional activities to again remind the customers of

their existance. The quantity must not be focused on rather the quality and medium of

promotional activities. It must be noted that the right target market must be addressed which arecouples with children and children suffering from shoe aliements.

Rather then catering to different income groups they may consider divesting their other target

markets and focusing on a single group.

Lastly, servis must comply with the new technological changes happening in the world and use

them as at the moment their supply chain management is not uptodate and therefore they mustconsider hiring tech savvy employees who would improve the companys distribution network.

The Servis management must consider the following marketing plan for relaunching Toz asthrough the implementation of this plan the brand would undergo brand revitalization. Through

this plan Servis would gain market share and emerge as an marketleader.


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Servis Final Compliation

Documents

Transcript of Servis Final Compliation