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(Woodland Project)

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Comparative Analysis Of Various Branded Footwear in Delhi /NCR At Woodland


Submitted by PRAGALBH SHARMA Roll No. 35084079 MBA III SEM (2008-2010)

Under the guidance of Ms. ANUBHA Faculty of



S.No Particulars………………………………………………………….
1. 2. 2. 3. 4. 5. 6. Acknowledgement………………………………………………………. Certificate………………………………………………………………….. Executive Summary…………………………………………………….. Literature Review…………………………………………..…………… Research Methodology………………………………………………… Woodland Shoes ‘Company Profile’………………………………. Competitor’s Profile……………………………………………………. • • • • • • • 7. • • 8. 9. 10. 11. Mirza Tanners………………………………………………………… M & B Footwear……………………………………………………… Reebok…………………………………………………………………. Nike……………………………………………………………………… Franco leone………………..………………………………………… Adidas………………..…………………………………………………. Marco Ricci………………..…………………………………………..

Page No.
3 4 5 6 12 15 24 25 26 28 28 29 29 30 31 32 40 43 44 45 50

Data Analysis……………………………………………………………… Analysis of data collected by various dealers……………… Analysis of data collected by customers…………………….

Suggestions……………………………………………………………….. Conclusion………………………………………………………………….. Annexure……………………………………………………………………. Bibliography………………………………………………………………..


_______________________________________________________________________ _

A Market Research is a wonderful learning experience; an economy lay open in front of us. We meet so many people, and it constantly amazed us how positively most of these people react and how eager they are to help us to arrive at conclusions. I take this opportunity to express my sincere thanks and deep gratitude to all the people who extended their sincere and whole-hearted co-operation and helped me during entire course of the project. I express my sincere thanks to Mr. Lokesh Chatterji (Senior Sales Executive) for giving me this project and without whose expert guidance; it would not have been possible to accomplish the project. His timely advice and suggestions at various stages of the project helped in bringing out this report in the present form. It also gave me an opportunity to apply classroom knowledge in the practice field, which will further harness my skills in the field of Marketing. The cooperation extended AERO CLUB, and Mr. Manish Mishra (GM- Sales and Marketing), in familiarizing of the specific insights related to the Footwear Industry and what strategies they have opted for. Last but not the least, Special thanks to all the Dealers of footwear whose support were extremely valuable and facilitated the successful execution of this project.



CERTIFICATE _______________________________________________

This is to certify that this project report under the topic “Comparative Analysis Of Various Branded Footwear In Delhi / NCR” is accomplished under my guidance. This report is to be submitted in partial fulfillment for the award of the degree of Master of Business Administration.

Date: Place:

Guided By: Ms. Anubha


Executive summary
The project assigned was a market research in Delhi and NCR market. The objective of the research was “COMPARATIVE ANALYSIS OF VARIOUS BRANDED FOOTWEAR IN DELHI AND NCR”. The project was crucial for both the researcher and the company. Researcher had an opportunity to meet with both dealers and customers. For company the outcome is meant to provide a new guideline to operate in one of the biggest market in India & design new strategies to expand their presence. The objective of the study was defined as under.  To study the market share of different products in market?  To find out the most selling Brand?  To Measure Customer Satisfaction  To Provide the company immediate solutions to their problems  To Appraise existing dealers of new schemes and promoting sales.  To Identify untapped dealer and market that can keep Woodland brand in their store.  To Identify critical features in choosing a branded shoe. For the aforesaid two questionnaires were designed. The questionnaire used for the study had a judicial mix of structured and un-structured questions to get into the depth of the problem area. A sample of 43 dealers and 100 customers from different part of Delhi were taken. A detailed analysis of all the problems and various growth opportunities are attached in the report. Company has an option to expand both horizontally and vertically as it


can not only increase its presence through untapped dealers but increase its sale by providing its complete range to their existing dealers.


Literature Review


Research Dilemma: Competitive Analysis of Shoe industry in Delhi & NCR Literature Review India is the second largest producer of footwear in the world, after China. The industry comprises of a very large unbranded segment and a small but increasingly crowded branded segment. The textile/garment and leather/shoes industries were two of the main industries of the Albanian economy during the 1960-1990 period. These industries were state-owned enterprises and they operated in the context of a socialist economy. Production included a wide range of products of the value-added chain such as fiber and leather and even final products. Domestic products supplied the consumption demand. Exports were managed by a single governmental agency. After 1990, these enterprises went through a privatization process. A significant part of them didn’t change their destination. Activities concentrated on production under outward processing regime of clothes and footwear uppers, which comprise the majority of the country’s exports. Imports satisfy the consumption needs for textiles and garments. The leather industry, supported by the increasing number of bovines, has experienced a growing level of exports of semi-final products. National trademarks are missing and relations with suppliers and marketing channels are poor, except for re-exported products, which are marketed by investors and foreign dealers.

The production of leather/shoes industry has increased during the 1999-2001 period (see Table 1). Its portion in the processing industry stands at 10% and along with the employment contribution (14%) it comprises one of the most economically and socially important sectors. Investments and the number of firms in this industry have been experiencing an increasing trend despite fluctuations. Their volume in 3 the economy and processing industry has changed, especially in relation to investments, as a result of the increasing volume of investments in other industries such as metallurgy, metal processing and food processing. High quality production of footwear uppers destined for re-export in European high quality markets dominates


this industry. The trade balance of this industry is positive as a result of the high export value. In the recent years the volume of re-exports in this industry’s total exports has averaged 83%. Source: ACIT, General Directorate of Customs, WTO Agreement Leather surfaces, also known as shoe uppers, make up the dominant part of total leather/shoes industry exports (55%). These semi-final re-exported products intensively employ handiwork. Their destination is almost exclusively Italy (99% of exports). Raw hides (class 41) also occupy a significant part (14.5%) of this industry’s total exports. Their destination is usually Italy, Turkey or Greece. Processed hides of bovine (especially bull hides) are the most important ones among hides’ exports as raw material. This is possible because of low processing costs in Albania, as a result of violations of environmental legislation. They consist of domestic processed hides or imported processed hides under outward processing regime. The leather industry utilizes a byproduct of slaughterhouses and transforms the raw materials into various types of leather and manufactured end products. The leather production-consumption chain has three processing stages, each requiring different combinations of material inputs, labour and capital. The first stage is the recovery of raw materials, that has direct links with animal production activities; hides and skins are recovered from dairy, draught animals or animals from slaughter houses. Leather tanning and finishing is the second stage that involves relatively capital-intensive operations while the third stage, which is the production of leather products, is a more labour intensive activity. These three processing stages are linked to key commercial components of the chain, the marketing of intermediate inputs, components and end products, and trade and consumption. Inputs to the chain without which the chain cannot operate under competitive basis are: qualified labour, design and art centers, component production, access to chemicals, technical and administrative support institutions, research and development, training as well as a set of adequate policies. The leather industry depends on the availability of raw materials, which in turn is regulated by the animal population, the off-take ratio and the weight per hide and skin recovered. Between 1994 and 1996, 75% of the bovine herd was located in


developing countries, which produce 56% of hides on a numerical basis and 43% of the world hide output by weight Competitiveness in the production of footwear At the beginning of the 90s, the two most fundamental determinants of

competitiveness in footwear production were considered to be, production costs and the differential impact of trade barriers. At that time other, less quantifiable factors that influence competitiveness were considered to be the following: technological developments; proximity to major markets and the role of quick response; requirements for high quality production; access to technology and management, design and marketing skills; the increasing importance of offshore, joint venture and contract production and some more country–specific factors such as political and infrastructure constraints and the availability of raw materials and components(Landell Mills 1990). The significance of several of the above factors for the next five years has been subject to revisions. At a recent conference, it was predicted that factors (different from shoemaking technology) to make shoes better, quicker or more productively than before will be driving the footwear industry in the new millennium (SATRA Conference, Hong Kong, April 2000). The importance of trade barriers and quotas may also diminish with China’s admission to the WTO. Trade barriers and existing quotas in the EU and the United states would fall and the possibility for China to negotiate worldwide reductions on import duties would be open. The global supply chain of footwear which developed in the last decade and which is replacing the traditional pattern of integrated shoemaking (leather processing, tanning, finishing and shoe manufacturing in many developed countries) has been an agent for the transfer of designs, the introduction of modern management practices, quick response, and technology and quality improvement to producing developing countries participating in outsourcing, and has provided the producer countries with indirect access to major markets. Competitiveness in the production stages of the chain has been addressed, in many instances, through the promotion of collective efficiency by enterprises operating


within clusters and industrial districts as discussed in other sections of the paper The design and managing of different types of marketing and distribution global chains represent the challenge of the present decade to stay competitive in a fast changing world.

Regional share in World Leather Footwear exports

Indian Footwear Industry The Footwear Industry is a significant segment of the Leather Industry in India. India ranks second among the footwear producing countries next to China. The industry is labour intensive and is concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated in large scale units, the sandals and Chappals are produced in the household and cottage sector. India produces more of gents’ footwear while the world’s major production is in ladies footwear. In the case of Chappals and sandals, use of non-leather material is prevalent in the domestic market. The major production centers India are Chennai, Ranipet, Ambur in Tamil Nadu, , Mumbai in Maharashtra, Kanpur in U.P. , Jalandhar in Punjab, Agra and Delhi.


The following table indicates concentration of units in various parts of the country: Large & Medium Scale 64 4 9 1 6 3 13

Region Tamil Nadu Delhi & up North Agra, Kanpur Calcutta Bangalore Mumbai Others

SSI 31 8 34 3 3 11 10

Household 7 2 14 19 4 3

Region-wise share of total estimated capacities is as follows: Nonleather Shoes 5 77 0 0 3 2 13 100 Leather Shoe Uppers 54 4 32 2 4 1 3 100 Non Leather Sandals 0 60 0 0 0 0 40 100

Region Percentage Tamil Nadu Delhi & up North Agra, Kanpur Calcutta Bangalore Mumbai Others Total

Leather Shoes 26 10 45 12 3 4 0 100

Leather Sandals 1 1 62 3 0 32 1 100

Shoes manufactured in India wear brand names like Red tape, ID, Lee Cooper, Florsheim, Gabor, Clarks, Salamander and St. Micheal’s. As part of its effort to play a lead role in the global trade, the Indian leather industry is focusing on key deliverables of innovative design, consistently superior quality and unfailing delivery schedules.


Research Methodology


METHODOLOGY Research Design
Exploratory Research has been done as an initial study to find out various facets of the Marketing Research problem, such as the possible factors that may be responsible for dissatisfaction. I consulted Customers and various dealers. This was followed by Descriptive Research whereby personal interviews were conducted with customers Data Collection The primary data has been collected by administering a structured questionnaire to the customers & dealers. The questionnaire was undisguised in the sense that questions would directly refer to the objective of the study. Questionnaire Design The questionnaire used for the study had a judicial mix of structured and unstructured questions to get into the depth of the problem area. Management Decision Problem: 1) What measures should the company take to attain a greater satisfaction level amongst customers? 2) What measures should company take to increase its market presence and market share? Marketing Research Problem: Identification of Market Share of Woodland and other major brands of footwear in Delhi and NCR, and understand the strategies of competitors of Woodland. Specific Objectives: On the basis of Research Problem, following objectives have been identified:  What is the market share of different products in market?  Which is the most selling Brand?  Which price range is most preferred by the customer?  Measuring Customer Satisfaction  Identification of problems of Woodland Shoes


 Providing the company immediate solutions to their problems  Apprising existing dealers of new schemes and promoting sales.  Identifying untapped dealer and market that can keep Woodland brand in their store.  Identifying critical features in choosing a branded shoe. Sample Design

Target Population
    Elements: Individuals who buy branded footwear and MBO’s. Sampling Unit: Shops & Individuals. Extent: The residents & dealers New Delhi, Delhi & NCR. Time: Third week of May- Second week of July

Sampling Frame: The database of dealers who keep multiple branded footwear in their stores. Sampling Technique: The sampling would be without replacement i.e. once an element is selected for inclusion in sample; it is removed from the sampling frame. The sampling technique used will be convenient sampling. Sample Size: Sample size was of 43 Dealers and 100 Customers keeping the paucity of time and resources in mind. Statistical Tool: I have used various statistical tools as well as taken help of SPSS software & Microsoft Excel to arrive into concrete results.




Brief history
 In 1960 Started as a small shoe manufacturing company.  In 1962 acquired first retail outlet in prime location in New Delhi.  In 1965 First export of complete shoes from India.  In 1968 first fully mechanized (German) shoe plant installed.

 In 1970 Beginning of Russian exports on regular Basis.  In 1972 First leather tannery in Madras(Chennai). In 1978 huge expansion in shoe upper manufacturing capacities to cater to growing Russian market.

 In 1980 Second leather tannery in Jalandhar.  In 1984 First Indian company to set up trading office in USSR.  In 1986 expanded retail shoe stores in Delhi.  In 1988 First protocol with the government of USSR. Large scale expansion in leather Industry in former USSR.  In 1990 First turn-key contract for US $ 78 million signed with USSR. Government for setting up leather complex in Kazakhistan had to be abandoned due to force - manure conditions: collapse of USSR.  In 1992 Launched (own production) shoes for Indian domestic market for the first time.

 In 1992 Expanded complete shoe manufacturing facilities to meet the growing demand of “woodland” shoes.


 In 1993 Launched “woodland” brand and finalized distribution network. Set up a subsidiary company in Canada and acquired a shoe manufacturing factory in Quebec to serve North American market. Finalized “Reebok” manufacturing collaboration.  In 1993 Introduced “woodland” apparels set up manufacturing facilities.  In 1994 Continuous expansion of “woodland” concept stores. In 1994 Reebok manufacturing plant commissioned for export to USA

 In 1995 Developed concept for “woodland” concept stores with a UK based Design Company.  In 2000 Robust presence in the premium retail market, With 100 exclusive stores, 50 distributors and 3500 retailers operating in the domestic market worth rs.100 crores, with exports division contributing additionally to the tune of rs.20 crores.










Central services       Corporate strategies Finance & banking Audits, accounting Taxation, excise (vat.) Personnel, staff welfare Technical : electrical, mechanical, machinery

Maintenance, spares etc.      Product development – shoes & apparels Public relations & government liaison Stores (components, materials) Shipping (export & imports) Real estates management

Overseas operations Canada : large winter boots factory in Quebec qty. High quality uppers from aero, New Delhi Lasting / finishing in Quebec using American lasts / soles / fittings Marketing in USA / Canada (specialty in winter boots and Woodland type casual shoes.) Volume 2000 - 100k pairs.

sourcing operations from south east Hongkong

Asia Representation: to serve European exports; Germany, France, Italy

Woodland Premium brand up market casual shoe. Oil pull up leather, trp soles & in – built comfort engineering introduced to Indian market for the first time by “woodland”.   Target audience young 14-40 years Well knit distribution system, own concept stores, franchise, independent retailers (shop - n - shop) type.


Full advertising and promotional support in print and audio media, national / metro channel, Star tv, M tv, BBC, Sahara tv, Sony tv & Zee tv. Point of sales merchandise & standardised window display system. Training & education of floor level sales personnel.

 

Domestic operations


Two captive tanneries at Madras & Jallandhar specialty heavy (bovine) leathers, oil pull-ups, nubuc, glazed cow, white leather for Reebok sports shoes.

Retailing: Textile:

Woodland concept Retail shoe & apparel Stores. Captive plant to Manufacture fine synthetic fur fabric for shoe lining, stuffed toys & other applications. High technical Japanese & Italian machinery equipped knitting plan. Manufacturing up market knitted garments in cotton, acrylic & wool.


Started in 1992 WOODLAND SHOES have created a niche for itself with the upmarket discerning clientele. In a recent study of India’s top brands in the consumer & service industry, “WOODLAND” shoes have been rated number two next to Bata, who by their sheer size & longevity had a first recall value. WOODLAND shoes with a small turn over of Rs.7.7 Million in 1992 have crossed Rs.1000 Million Mark during the fiscal year 1999-2000 and is poised for steady growth of nearly 20% every year. On the marketing strategy WOODLAND has been segmented in two broad categories. Whole Sale Distribution Retailing through WOODLAND concept stores.

 


‘Aero Shoes’ is part of the closely held ‘Aero Group of Companies’ which are into the business of Life Style Products for over forty years. The Group with about 2000 employees located at its various offices all over India. Every manufacturing units is well equipped and mechanized plant, having very good infrastructure, top of the line machines like CERIM, CHENGFUNG, FALAN, etc. and each facility has its own specialty e.g. one of our factory is solely engaged for making BOAT SHOES (Winter as well as Summer). Another one big unit is devoted for producing Rubber & EVA Jogger (Men & Women) shoes. This unit has own rubber moulding plant which gives the frequent supply of different kind of soles. There is one unit, which is producing high fashion ladies shoes/sandals/boots (M/c made and hand made both). Two units are engaged for stuck on ladies and gents shoes. One unit is exclusively producing shoes for children. The company has a tannery each at Jallandhar & Madras which meet most of the requirement of upper leather except the type of leather which is not manufactured by them which is procured from outside sources including overseas. The company has current consolidated annual production capacity of 1.5 million pair shoes. Full facilities for TPR/Leather sole manufacturing exist in-house. Although, a good number of soles are sourced from European companies to keep us with the seasonal/specific market trends. The footwear are manufactured for Ladies, Gents and Children range in all age groups. In addition to exports to Europe & Middle East countries the domestic sale of our ‘WOODLAND” brand footwear are through 150 exclusive show rooms and over 2000 other prestigious stores all over India. total annual sales amount to approx. 50 million US Dollars. We are regular supplier to some of the leading brands in Europe/USA like JELA SCHUH, BAUR-VERSAND, KARSTADT – Germany, GROUPE ANDRE, CARREFOUR, AUCHAN, SIPLEC – France, GAP, TODD WELSH – U.S.A., COMBINED TRADING (BREVITT) – U.K., HUSH PUPPIES – Singapore, etc. The


Our address is:

Aero Shoes Gurdwara Road, Karol Bagh, New Delhi – 110005 (INDIA) Contact No.: 9868414059,9810402915 Fax No.: E-mail: 0091–11–25755200 [email protected]



AERO SHOES Gurdwara Road, Karol Bagh, New Delhi – 110005, INDIA.

Established (Year) Management Turnover per annum Export Percentage Product line

: : : : :

1956 Partnership Firm (Mr. Avtar Singh & Mr. Harkirat Singh) US $ 50 Million. 20% Footwear for exports Footwear for the domestic Market.

Set up


Unit Name Aero Club-I Aero Club-II Goodluck Enterprises Casual Footwear



Factory Size 10000 Sqft. 50000 Sqft. 10000 Sqft. 12000 Sqft.

Production Capacity 30000 P.M. 30000 P.M. 25000 P.M. 30000 P.M.

Product Strength Ladies shoes & boots Joggers &

Machinery Imported Imported Imported Imported

Employee 131 150 125 135

Sport shoes Children shoes/sandal Casual shoes


Fully mechanized imported conveyer in each factory.
Tannery : We have our own tanneries 1) Jallandhar (Punjab) 2) Chennai (Having capacity – 0.5 million sq.ft. per month) Sole Plant : We have our own sole plants for TPR/EVA/Tunit/Leather soles.

Social Audit By


Carrefour, France / GAP ,USA.

Countries & approx. business

Main Buyer’s Name Andre, Quelle, Casino & Auchan Gap, Todd Welsh Baur-Versand JD Williams, Wrangler

Country France USA Germany UK

Approx. US$) 2000000 1500000 1050000 2000000




  


   


Competitors Profile


Major Competitors: The Research finding states that major competitors of Woodland shoes are     Red Tape (Mirza Tanners) ID Shoes ( M.B Footwears) Lee Cooper Shoes ( M B Footwears) Franco Leone

Adidas, Reebok and Nike are not the direct competitors of brand as their positioning is as a sports shoe while woodland is known as stylish casual footwear brand.

CompanyProfile Mirza Tanners is into business of manufacturing and selling shoes. The company is one of the largest shoe manufacturers in the world. The company is a government recognized export house. The company is largest exporter of shoes from India. The company exports its shoes, which are sold by leading shoe manufacturers globally. The company also sells its shoes under brand name of Red Tape, Ozark and Oak Ridge. The company won two exports awards during the year from Council of Leather exports. Last year only the company forayed into domestic market. The company sells 60% of its produce to international big players in footwear industry and rest under its own brand name. Mirza Tanners Ltd., having its Regd office at Kanpur, was incorporated as a Pvt. Ltd. Company under the Companies Act, 1956 on 5th July, 1979 and converted into a Public Ltd. Company in 1994. The Company started its business as a Tannery, producing Leather and at present it is a fully integrated Manufacturing Company producing complete shoes to the tune of 5000 pairs per day and comprising of the following factories :i. ii. A Tannery at Magarwara, Unnao with a capacity to produce 80 Lac Sq. ft. of Finished Leather per annum. A Shoe-Upper & Leather goods factory at Juhi, Kanpur with a capacity to produce 5 Lac pairs of Shoe-uppers and Leather goods valuing approx. Rs.100 lacs per annum. iii. A Shoe factory at Magarwara, Unnao with a capacity to produce 4.5 Lacs Gents Leather Shoes per annum.



A Shoe factory at Sahjani, Unnao with a capacity to produce 10.5 Lac ShoeUppers and Finished Shoes per annum, equipped with sufficient machinery to make around 7 Lac pairs of Shoe-Soles out of PVC/TPR.

Mirza Tanners Ltd. is a major supplier of shoes to reputed names in Europe like BataItaly, France, Switzerland, Deichmann, Germany & Florsheim Australia, and in U.K. to Olovers, Asda, Barrats Shoefayre, Shoe City, Streads & Simpson. It has Joint Venture Company in U.K. and South Africa. The company is selling branded shoes in the name of Red Tape & Oakridge.

M & B Footwear
With 21 years of in-depth experience in the Indian market,

M&B Footwear is

perhaps the only company that has access to more than 600 premium shoe outlets and departmental stores throughout India. Over the years, the organisation has painstakingly built an extensive network of distributors covering every major city in the the shoes are sold through country. exclusive distributors for the region. M&B Footwear recently has spread its operations in the UAE and Bangladesh, where In its expansion plans, M&B footwear is looking for strategic partners in Nepal & Sri Lanka in order to expand its market reach.

The genesis of i-D goes back to 1989, the college days of Mr.I.D.S.Musafir, when he had to submit a project report at the end of his Footwear Design & Technology course from Southfields College, U.K. For this project, he required a Brand name & after much deliberation he picked up the initials of his name i.e. I.D. as the brand name shoes under of the shoes brand name for of i-D in his the project Indian footwear report. market. Since then it was always there at the back of his mind to launch a signature line of The ranges of I-D shoes were launched in India in November 2002. Franchise Store: In September, 02, M&B Footwear (P) Ltd got into an agreement with the Lee Cooper apparel licensee in India, M/s Indus Clothing Company, to open joint franchise stores for the complete range of apparels and shoes to be sold under


one roof. This joint effort was made in order to enhance the image of the Lee Cooper brand in the minds of the consumers, and also to showcase the complete range of products offered by the brand name under one roof. The first two franchise stores were opened simultaneously in two of the major shopping centers of Delhi i.e. Connaught Place and Greater Kailash. Judging from the success of these franchise stores M&B Footwear (P) Ltd intends to open more of the same in other metros and mini-metros of India. The main ventures are highlighted below:   Taj Shoes – Retailing. Lee Cooper – Original European Shoes.

Taj Shoes Founded in 1979 by the late Mr. J.D. Singh Musafir, Taj Shoes was the first Indian company to sign up an Italian collaboration for the sale of footwear in the country. The unveiling of its eponymous flagship store in New Delhi marked the arrival of international footwear fashion in India. Within a short span of time, Taj emerged as a premium shoe brand for discerning men and women in the domestic market. By 1992, the brand was available in all major cities throughout India. Taj Shoes is the retail platform of M&B Footwear, through which it launches & test markets all its brands. Lee Cooper Having established a firm foothold in the domestic retail segment, M&B Footwear signed an exclusive license deal with Lee Cooper Licensing Limited of UK for manufacturing and marketing shoes under the internationally renowned Lee Cooper brand name in India. Positioned as "Original European Shoes since 1908" , the brand is aimed at trendy males in the age group 18 to 35. The personality of the brand is that of a street smart guy who keeps in step with international fashion trends. The Lee Cooper range offers a wide variety of styles from Derby's, Boat Shoes, and Bump toes to Goodyear Welted, Sports Basics and sandals. Since its launch, the brand has become the market leader in the casual footwear segment in India, and is sold through more than 600 premium retail outlets across the country.

Reebok India Company 29

RIC has a presence in the footwear and apparel segments through its sports and fitness Reebok brand, premium Rockport brand and Greg Norman Golf Collection. Reebok, RIC’s mainstay brand, has a strong market presence in both sports footwear and apparel, a segment that has witnessed a steady growth in the past 3-4 years. Reebok has capitalised on this market growth by substantially increasing its distribution reach in the past two years, resulting in a healthy growth in its apparel and footwear sales. ICRA expects RIC’s sales growth in future to be driven by an expansion of the market size and increased penetration of its existing brands. In 2002, Reebok International identified India as a leading supplier of Greg Norman collections for worldwide sourcing, which has resulted in additional income stream through commission on exports for RIC. Operating income of RIC has shown a significant improvement for the year ended December 2002 as a result of both increased domestic sales and commission on exports. The operating income has continued to register growth in the current year. The company has been able to efficiently manage its working capital, resulting in a decline in debt levels. The resultant reduction in interest cost, besides the improved scale of operations had led to an improvement in profitability and coverage indicators for the year ended December 2002. With increase in sales volumes, the profits for the current year are expected to be higher than the previous year. RIC had accumulated losses from the initial years of its operations, resulting in high gearing levels in the past. The decline in accumulated losses due to accretion of profits, as also a decline in debt levels have resulted in a significant improvement in gearing levels. This trend is likely to sustain in the medium term.

Nike, Inc. engages in the design, development, and marketing of footwear, apparel, equipment, and accessory products worldwide. The company produces athletic footwear products for specific athletic use and for casual or leisure purposes. It designs products for running, basketball, children’s cross training, outdoor activities, tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, hiking, and other athletic and recreational uses. Nike also sells sports apparel, as well as athletic bags and accessory items. The company sells equipments under the NIKE brand name, including sport balls, eyewear, skates, bats, gloves, and other equipment designed for sports activities. The company, through its subsidiaries, produces and sells swimwear, women’s sports bras, cycling apparel, maternity exercise wear, children’s clothing, school supplies, timepieces, and electronic media devices under the NIKE brand. It also sells


various plastic products, and plastic injected and metal products to other manufacturers. The company sells dress and casual footwear, apparel, and accessories for men and women under the brand names Cole Haan, g Series, and Bragano. It also manufactures and distributes ice skates, skate blades, in line roller skates, protective gear, hockey sticks, hockey jerseys, licensed apparel, and accessories under the Bauer and NIKE brand names. The company sells its products through a mix of independent distributors, licensees, and subsidiaries in approximately 120 countries worldwide. Nike was incorporated in 1968 and is headquartered in Beaverton, Orgeon.

Franco Leone Shoes
Franco Leone Shoes (P) Ltd. Is in the line of manufacturing high quality footwear for men and children for the last 50 years. Franco Leone produces shoes in more than 300 designs covering every age group and income category, from the priceconscious to the price-indifferent customer, from teenager to adult. Franco Leone Shoes (P) Ltd. has its own studio for design & development of footwear. Franco Leone uses state of the art Italian & German machine. Franco Leone has craved a name for itself in domestic and international market through its innovative designs and product quality. Franco Leone have a presence across India through distributors, showrooms and multi-brand stores. Franco Leone also exports its products to various countries (U.S.A., France, Germany etc.)


The foundation Adidas is registered as a company, named after its founder: 'Adi' from Adolf and 'Das' from Dassler Higher Driven by a desire to help all athletes committed to performance, adidas manufactures equipment for what some consider "fringe sports". Unconventional high jumper Dick Fosbury launches himself up and over in adidas footwear.


Globally, Marco Ricci is a young brand, but one created by professionals with long years of experience in the fashion industry. Its products therefore combine a vibrant, youthful attitude with sophistication and polish. Marco Ricci in India Marco Ricci stepped into India feet first. Its shoes and boots have taken the country by storm, from the time they were first shown at a launch conference for footwear professionals at the Taj, Mumbai, on February 15, 2003. Soon after the shoes came the launch of Marco Ricci belts, and then other leather accessories. It won't be long before Marco Ricci products for women enter the market, followed by Marco Ricci suits, sold at exclusive branded outlets. Marco Ricci shoes and accessories are imported, marketed and in some styles produced by ANZ Trading Corporation, Mumbai. They are currently sold nationwide at all outlets of Shoppers' Stop and footwear chains like Lords, Regal, and Metro, and at The Loft. Marco Ricci accessories are also available at select outlets across the country. Marco Ricci Shoes Marco Ricci aims at providing international quality to every footwear segment. There is something for everybody: casuals, semi-formals, formals and boots. Made from top grain, non-pigmented leather, we use state-of-the-art waxes and dyes to give the leather a rich, distinctive look. Supple construction, with extra-soft, shockabsorbing cushions inside, make for a supremely comfortable experience. The soles are of three kinds. Highly formal pumps have leather soles. Soles for semiformal shoes are made of thermoplastic rubber or TPR, the new international norm: light, flexible, slip-resistant, shock-absorbent, and strong. Casuals are made of ethyl vinyl acetate or EVA, which is lightweight, flexible and great for shock absorption.




Analysis of the data collected by various dealers of branded footwear
Most Available Brand in the Market






Findings   Out of the 43, MBO’s Lee Cooper is available at 32 Outlets in Delhi & NCR. Woodland is available at more than 25% outlets.

Most selling Brand in the market

Reebok Red Tape ID

Lee Cooper Woodland

Findings  Red tape is clear market leader. It is the most selling brand in the market. The market share of red tape is more than 45%.  On other hand Id shoes is least selling brand among the branded footwear.


Most Preferred Price range by the customers

1500-2500 below 1000


Findings  1000-1500 is the most preferred price range in branded among the customers according to the dealers  Very few people look out for branded footwear below 1000

Which brand provides the highest profit margin?

Findings  Lee Cooper and Franco Leone provide the highest profit margin to the dealers. The margin given to dealers by these brands is 28%  Woodland gives the lowest margin to dealers.


Pair of shoes sold in a month

below 5 10-15 15-30 30-50

5-100 100 and above

Findings  Out of the 43 MBO’s more than 65% of the MBO’s Sell More than 100 pair of shoes in a month

Maximum Share in total Sale


Adidas Reebok Red Tape

Lee Cooper


Findings  Red tape is clear market leader. It is the most selling brand in the market. The market share of red tape is more than 45%.


On other hand Adidas shoes is least selling brand among the branded foot wears

Discount offered by Dealers

15-30% 10-15% No


Findings  5-10% discount is the commonly offered discount by the dealers.  About 25% dealers don’t offer any discount to the customers

What Customer looks in his footwear?

Findings  Out of 43 dealers 38 dealers said that customers want comfort and design & style in his footwear.


Very few people expect durability and are worried about price range, while purchasing their footwear

Does woodland has variety according to needs of the customers?
No Idea



Findings  Near about 40% of dealers said woodland do not have the variety according to need of the customers.  Many dealers said Woodland does has the variety.

Price of product in the eyes of dealer’s
Excellent Good No Idea


Findings More than half of the dealers had said that, the price of the product of Woodland is Average.


More than 25% of the dealers had said that, the price of the product of Woodland is Good.

Comfort level in footwear of Woodland

No Idea




Findings  More than half of the dealers had said that, the comfort of Woodland is excellent.  25% of the dealers had said that, the comfort of Woodland is good.

Value for Money in footwear of Woodland

No Idea Excellent



Findings  40% of the dealers had said that, the value for money in Woodland is good.


More 20% of the dealers had said that, the value for money in Woodland is excellent.

After sales services in footwear of Woodland

Excellent Good No Idea


Findings  More than half of the dealers had said that, the after sales services of Woodland are Average.  Very few dealers have said that, the after sales services of Woodland are excellent.

Distribution network of Woodland

Excellent Good No Idea




40% of the dealers had said that, the distribution network Woodland is Average. 25% of the dealers had said that, the distribution network Woodland Good.

Availability of product in the eyes of dealers

Excellent Good No Idea


Findings  More than 50% of the dealers had said that, the availability of product in Woodland is Average.  20% of the dealers had said that, the availability of product in Woodland is good.

Innovation in Woodland

Excellent No Idea





In Case of Innovation More than 30% dealers said, it is average and same amount of dealers said it is good. Near about 25% dealers have no idea about innovation.


Analysis of the data collected by Customers
Percentage of people wearing branded & Non Branded Footwear

37% 63%

Branded Non Branded

Finding  Major chunk of population in Delhi and NCR is wearing Non-Branded footwear  Only 37% people wear Branded footwear

How many people in different age group are satisfied with the footwear they wear?


Under 18 18-24 25-31


32-38 0 Yes No Above 38


Finding  18 people between the age group 18-24 are satisfied and the same number of people are not satisfied the brand they wear.


In the age group 25-31more people are not satisfied with the brand they wear then the number of satisfied people.

From where you first came to know about the brand you wear?

Internet 5% 40% 33% Newspaper 22% Friend & Family Television

Finding  40% of the say they came to know about the brand via Newspaper and Magazines.  Only 5% came to know about the brand via Internet.

How many pair of shoes do you currently have?

30% 60%

One Many Two- Three


Finding Out of 100, 60 people are having two to three pairs of shoes.


Only 10% people have more than three pair of footwear.

With which Personality you associate the brand you use

10% 3% 5% 15% 30%



Hritik Roshan (Youthful) Amitabh Bachan(Evergreen) Amir Khan(Versatile) Sachin Tendular (Master) Salman Khan(Charming) Sanjay Dutt(Strong) Vijay Mallaya(Busines Tycoon)

Findings: A brand ambassador or brand icon represents a brand. He is certainly a motivational factor for purchase. In order to understand which is the most favorite icon the researcher tried to find it through the respondent. Sachin is certainly a brand icon for many. But it is great to know that Amitabh has not lost its charm till date. It is increasing day by day rather. As 22% of the respondent opted for Amitabh Bachan. As far far as buying a shoe is concerned other Cine stars Salman khan, Aamir khan and Sanjay Dutt are also popular among the people.


1. All Designs are not always available. 2. Woodland doesn’t has shoes to cater every segment. 3. Margins are lesser in comparison to other competitive brands. Many dealers are not keeping Woodland only because margins provided to them are not sufficient. Increase margins is said repeatedly by owner of Delco Shoes Lajpat Nagar. 4. “Distributor is Hopeless” said the owner of POSH SHOES. Many Dealers are not satisfied with the distributor. They want more distributors. 5. Woodland has a policy of providing heavy discounts in its own outlet. Many stores in Delhi/NCR remain on sale throughout the year which hampers Dealers Sale. 6. Woodland has ambiguous policy for dealers and its own outlet. Entire range is not made available to dealers. Even During the annual sale of Woodland Dealers are not considered and no incentive is provided to them to participate in sale. 7. The Designs of the Woodland are not in tune with their competitor. They are little higher on price front as well. 8. “ I do not feel like keeping Woodland shoe in my store because Brand Appeal is lacking” (owner, Gulati Shoes. Lajpat Nagar) Woodland should work on its brand image. Brand perception has come down in last few years. 9. Price of Woodland is higher in comparison to ID which is its close competitor. 10. Woodland’s advertisements and promotions are not at par with requirement.


After collecting the data and doing analysis through statistical tools following conclusions are made:  Brand equity of Woodland is not very impressive and it is perceived as mediocre range of brand in premium category footwear market (mainly B+ or B were perceived by respondents.)  Dealers of Woodland are worried of the ambiguous policies of Woodland. Dealers are not provided with complete range of Woodland products. They are not included in annual sale and other promotional scheme. The aforesaid is confined to their exclusive outlet.  Some of the dealers want distributors to be increased and want Company to listen to their valuable views and suggestion.  Woodland has limited presence in Delhi market. Many dealers who were earlier catering to the brand has stopped due to various reasons. New dealers who have opened their outlets in recent past have not been tapped.  In few areas Brand is omnipresent with almost all dealers where as few are still un-represented.  A few dealers have habit of providing discounts to customers. Discount is as big as 20% in some cases. This not only maligns company’s image in the eye of customers but also disturbs other dealers.  Woodland has a policy of providing heavy discounts in its own outlet. Many stores in Delhi/NCR remain on sale throughout the year, which hampers Dealers Sale.  Dealers outlet and market does not have proper glow sign posters and other promotional object. Window display of Woodland product is poor in many outlets.




Dealers Questionnaire
1. Which of the following brands are available at your showroom? □ Red tape □ Reebok □ Woodland □ Adidas □ Lee Cooper □ Franco Leone □ ID □ Nike

2. Which brand of shoes do you sell the most? □ Red tape □ Reebok □ Woodland □ Adidas □ Lee Cooper □ Franco Leone □ ID □ Nike

3. Which price range is most preferred by the customer? ○ Below 1000 ○ 4000 and above 4. Which brand of shoes provides higher profit margin? ○ Red tape ○ Reebok ○ Woodland ○ Adidas ○ Lee Cooper ○ Franco Leone ○ ID ○ Nike ○ 1000-1500 ○ 1500-2500 ○ 2500-4000

5. On an average how many pairs of shoes you sell in a month? ○ Below 5 ○ 30-50 ○ 5-10 ○ 50-100 ○ 10-15 ○ 100 and above ○ 15-30

6. Which of the following brands has maximum share in the total sales? ○ Red tape ○ Reebok ○ Woodland ○ Adidas ○ Lee Cooper ○ Franco Leone ○ ID ○ Nike

7. Do customers ask For Discount during Purchases? ○ Yes If Yes(How Much) ○ 5-10 % ○ 10-15 % ○ 15-30 % ○ No

8. Which of the following qualities customer look in while buying a pair of shoe? ○ Price ○ Durability ○ Design and Style ○ Comfort ○ Brand Name


9. Does Woodland has the variety and designs According to need of the customers? ○ Yes ○ No 10. What unique qualities do you find in the most selling footwear brand at your showroom? • • 11. Why you don’t sell Woodland Shoes at your Showroom? -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. 12. Rank Woodland shoes on the scale of 1-5 on following basis        Price of the product Comfort Value for money After Sales service Distribution Network Availability of Product Innovation ◘ Average ◘ Average ◘ Average ◘ Average ◘ Average ◘ Average ◘ Average ◘ Good ◘ Good ◘ Good ◘ Good ◘ Good ◘ Good ◘ Good ◘ ◘ Excellent Excellent

◘ Excellent ◘ ◘ ◘ ◘ Excellent Excellent Excellent Excellent

“Thanks for Your Valuable Time & Suggestion”


Customer’s Questionnaire
1. Which type of shoes do you wear? ○ Branded ○ Non-Branded 2. How many pair of shoes do you currently have? ○ One ○ Two- Three ○ Many

3. Which is your favorite Brand? ○ Red tape ○ Reebok ○ Woodland ○ Adidas ○ Lee Cooper ○ Franco Leone ○ ID ○ Nike

4. From where you first came to know about the brand you wear? ○ Newspaper ○ Internet 5. Are you satisfied with the shoes you wear? ○ Yes ○ No ○ Television ○ Friend or Family Member

If Yes,why __________________________________________________ 6. What features do you perceive in your footwear? Rank them as per your preference. □ Brand Name □ Design and Style □ Price □ Comfort ______ ______ ______ ______

7. How often do you buy your footwear? ○ Very Often ○ Often ○ Rarely

8. What do you think is the best time to purchase it? ○ New Arrival ○ During Festival Season


○ During Sales ○ As per need


How frequently do you visit Shopping Malls? ○ Every Weekend ○ Never ○ Once a Fortnight ○ Once a Month ○Occasionally

10. With which Personality you associate the brand you use? ○Hritik Roshan(Youthful) ○Amitabh (Evergreen) ○Sachin Tendular (Master) ○Dharmendara(Strong) ○Amir Khan (Versatile) ○Vijay Mallya(Business Tycoon)

○ Salman Khan (Charming) ○ Sanjay Dutt(Strong) 11. According to you. Which is the best Brand of shoes Available in the Indian Market? _____________ Reasons • •

“Thanks for Your Valuable Time & Suggestion”



 Marketing Management By “Philip Kotler”- 13th Edition

 A. Parasuraman , Dhruv Greval , R. Krishnan , “Marketing Research” , Biztantra Books .

 Boyd, Westfall, Stasch: Marketing Research - Seventh Edition

 Research Methodology: C.R.Kothari - Second Edition

 Company brochure

 www.Google.com

 www.wikepedia.com


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