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University of Central Punjab

Final Retail Project Report

Submitted To: Prof. AHSAN UMAR

Submitted BY: Sultan Naeem dar Ammar ali naqvi Umair arshad Qasim ali

Qasim zia Naseem-ul-hassan Bilal Hassan Saira javed

Company Profile:
Service Sales Corporation (Pvt.) Ltd. (SSC) is todays Pakistans leading footwear retailer which is also diversifying into other businesses. Servis Group is one of the most respected corporate citizens of the country and has a rich heritage spanning over half a century. Today the Group is Pakistan's largest footwear manufacturer and exporter with interests in wholesale and retail sectors. With a growing portfolio of brands and a nationwide network that touches millions of lives everyday, Servis is one of the foremost brands in the country. The Group is the largest footwear manufacturer, retailer, and exporter operating in the country and has overall sales of more than PKR 12 billion.

History:
Ch. Nazar Muhammad (Late), Ch. Muhammad Hussain (Late) from Gujrat district and Ch. Muhammad Saeed (Late) from Gujranwala District started this business in 1941 at a small scale in Lahore. At that time, they were only manufacturing handbags and 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.

In 1954, they installed a shoe manufacturing plant at industrial area Gulberg, Lahore. The industry started manufacturing various types of shoes. Later management shifted the factory from Lahore to Gujrat. Service Sales Corporation (Pvt.) Ltd. was established in 1959. Humility, fairness, and respect were the values close to the heart of this business founders and it were these values that led to phenomenal 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 Gujrat and Muridke.

Brands:
The following are the brands under the umbrella of Servis group:

Brand Partnership
Servis is proud to be associated with leading international and national footwear brands including Nike, Hush Puppies, Pierre Cardin, Urban sole, CAT and Ecco. These brands are placed under the head of SHOE PLANET a special and Pakistans first multi- brand mega shoe store. The availability of these brands at our retail stores provides more choice to our
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customers and we see great opportunities going forward with the wave of brand partnerships.

Companys Objectives:
Following are the basic objectives of Service Shoes: 1. Generating economic activity 2. Maximizing shares holders value 3. Increasing sales and profitability

Companys Retail strategy:


Market segmentation:
Being a family store service shoes caters to masses and these masses are divided demographically based on income level. For every segment a retail solution has designed keeping in mind the requirements of particular segment. The following are segments and retail solutions that are identified and designed on the basis of income levels: C category customers: This is the first category of customer and fall in the middle lower income group and for this segment of market a retail channel with the name of service factory outlet is designed.

Service Factory outlets: This specific channel is designed to cater the needs of C
category customers. In these outlets rejected, B pair and export left over products are placed. Now B category customers also come to these stores for shopping.

Service A Pair: these are regular stores of service shoes and these stores are also
designed to cater the needs of C and B category customers.

Service Mega Store: mainly situated in posh areas and is designed on almost 4500
square foot for A class customers. Example: Service Mega Store in MM Alam Road

Shoe Planet: This retail solution is not run with the name of Service and caters to A
A+ customer. Service shoes cater to masses ranging from C-B class customers mainly and A and A+ customers to some extent with a different retail solution.

Retail Format:
Service shoes, depending upon the category of customers, follows different retail format for every retail outlet. Retail format for service factory outlet is totally different from the format of Service mega store based on the expectations, and experience of customers. Value, product quality and variety are considered in appropriate ratios by keeping in mind the category of customers while selecting a retail format. Therefore the way of prices, way of displays, number of designs in display and style differ in every retail channel. In retail format the overall merchandising and product assortment strategy also differs. For example certain items are tend to display in every retail outlet for every category of customers and certain items are restrict to certain channels only as they do not fit in the requirements of other category.

Competitive Advantage:

1. Strong brand name is one of the strongest competitive advantages to Service Shoes to compete in the market. Service Shoes is in the market for more than 50 years. 2. Value added services and high end quality is another competitive advantage that satisfies the customers and creates brand loyalty. 3. Accessibility and availability: this is the second major competitive advantage of Service Shoes. Service Shoes is currently operating 500 regular stores nationally and there are 1500 dealers of Service Shoes in Pakistan.

Customer Buying Behavior 1. Search stage:


Accessibility and Visibility: 500 outlets nation wide ensures and enhance visibility and accessibility of their outlets and call for action promotional campaigns create brand awareness among the masses. On the other hand, annually feasibility analysis is designed on the basis of growth strategy in which every year 20 new locations are proposed to open new stores. While selecting a location customer convenience is considered firstly and therefore certain standards are followed to analyze the location potential. In order to make the accessibility easier for the customers always prime locations are chosen. Brand Awareness:

To make their positioning strong in the minds of customers service shoes spend 1020% of their budget on marketing expenditures. ATL advertisements include TV ads, radio, newspapers ads.

2. Visit Stage:
Managing Customers expectations and good shopping experience: Service shoes tend to fulfill generic needs of customers regarding his/her shopping experience at their retail outlet. These generic needs are as follows: 3. 4. 5. 6. Acknowledgement Clean environment Availability of the product required Hospitality

Service Shoes has designed certain standards to meet customers expectations and tend to follow these standards to fulfill the above mentioned needs of customers. The employees are given training for implementing these points in a proper manner. Mystery Shopping: the concept of mystery shopping is follow to evaluate the retail store regarding the level of customer service and management of customer expectations as per the standards developed by the organization. Every retail store and its employees are rated in this mystery shopping by a third party person in order to gather fair results. Store Layout: Store layout is designed as per the requirements of retail channel and category of customers. Similarly, product assortment is done keeping in mind the market segment to which store is catering and prices are displayed accordingly.

7. Purchase stage:
Professional Sales Call: Employees are well trained for attending the customers and making their shopping experience a convenient one. Following steps are followed by sales person while dealing with cusomers 1. Acknowledge: The employees are trained to acknowledge the customer firstly in a respectable manner.
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2. Judge the persons requirement: After acknowledgement sales person are advised to leave the customer to roam about in the store to have a holistic view of the products available. That is helpful for the customer to make up his/her mind about what to purchase. 3. Identify the need: After 2 minutes of waiting if the customer itself does not call the sales person. Salesperson should come to the customers and ask what he/she is looking for. Example: how can I help you sir? 4. Bring the required product along with at least one more similar product for trial: After knowing customer requirement sales person bring the specific product for trial along with one or more similar product. 5. Describe the products qualitative features Sales persons are trained to explain salient features of the product. Example: warranty, water proof, leather or plastic material etc 6. Suggestive selling: this technique is used by the employees once the customer has chosen one of the products to buy and is ready to pay for it. Before closing the deal the sales person are advised to use cross selling, up selling and impulse purchase techniques. Example: if the customer has bought black shoes, sales person will advise him/her to buy polish or socks as well.

7. Closing the deal: The sales person will make customers payment clear from the cash counter, will thank the customer for his/her visit and if possible will drop the products in his/her car.

Hassle free completion of transaction: The employees of the store are advised to acknowledge customer within first 3 minute of his/her entrance in the store. If all the employees are busy even then one of the employees should give him/her a call that the person will be attended within next 3 minutes.

Closing the deal: once the customer has agreed to purchase something from the store, the same sales person who was attending the customer, will make his/her payment clear form the cash counter. in order to ensure hassle free transaction, electronic billing named as E-cost by Microsoft MRS.

8. Own Stage:
Customer Service and customer feed back Service Recovery: Most of the time customers complaints are handled at the spot. Return policies and guidelines are developed by the organization to provide after sales services. Whereas, the store manager is also empowered to take certain actions in case of severe situations. Helpline service: this service is provided at mega stores currently. The purpose is to provide customer convenience to give feedback about the mismanagement or any other unethical issues done and created by the store management. Comment Card: a customer service comment card is placed on the stores for customers feedback and these are available both at big and regular stores. Email: a customer can also send email if he/she has any grievance about his/her shopping store in any of the service retail outlet. Return Policy: the product can be returned by the customer within 30-60 days of purchase along with the bill receipt. The product will be taken back, repair and changed if the issue lies at the end of company.

Companys Retail mix


1. Product Assortment and merchandising:
Products are placed on category basis and brand wise in the store. On the left side gents brands are assorted and on the right side ladies brands are placed.

2. Pricing Strategy:
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Being a family brand Service Shoes cater to masses and fall somewhere in mid level prices. Mainly cost based pricing is used to accumulate a products final price and following formula is used: Cost of the product+ profit margin +competition/market analysis.. Value based pricing is used for premium brand for example Don Carlos etc.

3. Selecting location for retail store: Trade Area:


The country is divided in three regions north, south and central. There are 6 districts in every region. A specific trade area has not been defined for opening a retail outlet. However, in order to apply penetration strategy opportunities for opening new stores are identifies wherever a new society emerges.

Most of the stores located in strip centers. The main purpose for choosing this location is to create customer convenience. Purchasing footwear is comparison shopping behavior of customer. And customer wants to devote considerable time and effort to analyze alternative in order to make right decision. In order to provide convenience to the customer strip centers are best option because in a strip centre alternative/ competing brands are in line and it is easier for customer to walk in and out from store to the other.

While selecting a site for opening a new store, traffic flow is analyzed in order to measure the sites attractiveness. And all the stores are rental stores. Otherwise in selection of a location for a new store certain parameters are analyzed including selling size, front of the store, stock room area of the store depending upon the retail channel specifications. As per the policies store area is preferred to be of minimum 1200 square foot. However, some stores are of only 300 square foot as well. And Service Mage Store is of 4500 square foot. Anchoring: service shoes prefer to be near to its competitors BATA because it helps in generating more traffic and foot fall area.

4. Store Lay out, design and Merchandising


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In store Facilities: Following are some of the in store facilities that are provided by Service stores to its customers 1. Electronic point of sale in order to ensure hassle free completion of transaction 2. Clean and convenient environment 3. Play areas for children 4. Credit card facility etc

5. Communication:
Following communication channels are used to create brand awareness, and to run promotional campaigns. For outside communication Above the line advertisement is done through television, Radio, newspaper and hoardings etc For in-store communication Visual merchandising is used. Promotions: Promotions are need based and designed accordingly. For example summer and winter sales, price rebates-10-50% discount, sales promotions etc CSR activities are also conducted. Servis has been a regular contributor to community welfare, charities, and causes. These activities include free shoes, sponsorships, donations, emergencies and disasters etc

6. People:
Sales person given time to time trainings for better quality customer services by training department and are rewarded with fringe benefits in order to motivate them

Service Profit Chain:


Customer Satisfaction:

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Service shoes is very effectively following the concept of service profit chain as they believe that employees are the biggest assets of the company and are important and only source of creating customer satisfaction and maximizing the companys profitability.

Employee satisfaction: Compensation and rewards: At store level, fixed plus variable salary package is given to employees. Quarterly sales incentives, mystery shopping incentive, incentives on annual target are given to the employees. Employee Motivation: Annual conference is held for sales staff and employees are also sent for overseas training for job enrichment purposes. Fringe Benefits: Hajj Package is given to the employees on lottery basis every year. Customer Satisfaction: Measuring that whether the sales person is satisfying the customer effectively or not, the concept of Mystery shopping is used. On the other hand, quarterly sales of each store are compared and frequency of complaints is also considered.

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