CONTENTS

1. Executive Summary

3. Literature Review

4. Research Methodology

5. Woodland Shoes ‘Company Profile

6. Competitor’s Profile

 Mirza Tanners

 M & B Footwear

 Reebok

 Nike

 Franco leone

 Adidas

 Marco Ricci

7. Data Analysis

 Analysis of data collected by various dealers

 Analysis of data collected by customers

8. Suggestions

9. Conclusion

10. Annexure

1
11. Bibliography

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.

 What is the market share of different products in market?

 Which is the most selling Brand?

 Measuring Customer Satisfaction

 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.

2
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.

3
LITERATURE REVIEW

4
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

5
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

6
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

7
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

8
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

9
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

10
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 &
Region SSI Household
Medium Scale

11
 Tamil Nadu 64 31 7
Delhi & up North 4 8 2
Agra, Kanpur 9 34 14
Calcutta 1 3 19
Bangalore 6 3 4
Mumbai 3 11
Others 13 10 3

Region-wise share of total estimated capacities is as follows:

Non- Leather Non

Leather Leather
Region leather Shoe Leather
Shoes Sandals
Shoes Uppers Sandals
Percentage
Tamil Nadu 26 5 54 1 0
Delhi & up North 10 77 4 1 60
Agra, Kanpur 45 0 32 62 0
Calcutta 12 0 2 3 0
Bangalore 3 3 4 0 0
Mumbai 4 2 1 32 0
Others 0 13 3 1 40
Total 100 100 100 100 100

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

12
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.

13
OBJECTIVES OF THE STUDY

14
 OBJECTIVES OF THE STUDY

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.

15
RESEARCH METHODOLOGY

16
 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 un-

structured questions to get into the depth of the problem area.

17
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.

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.

18
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.

19
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.

20
 COMPANY PROFILE

A E R O GROUP OF COMPANIES
(WOODLAND)

21
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.

22
 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

23
 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.

24
Aero

CENTRAL
SERVICES

OVERSEAS
DOMESTIC EXPORTS
OPERATIONS OPERATIONS

25
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

26
 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.

27
28
Domestic operations

Tanneries: Two captive tanneries at Madras & Jallandhar specialty heavy

(bovine) leathers, oil pull-ups, nubuc, glazed cow, white leather for

Reebok sports shoes.

Retailing: Woodland concept Retail shoe & apparel Stores.

Textile: 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.

29
WOODLAND DISTRIBUTION

Started in 1992 WOODLAND SHOES have created a niche for itself with the up-

market 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.

30
COMPANY PROFILE – AERO SHOES’ NEW DELHI

‘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.

31
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. The 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.

32
Our address is: PRIYANKA

GANGOH

Karol Bagh,

New Delhi – 110 005 (INDIA)

Tel No.: 0091 – 11 – 51546474 / 25782900

Fax No.: 0091 – 11 – 25755200

E-mail: aeroshoe@del3.vsnl.net.in

Supplier : AERO SHOES

Gurdwara Road, Karol Bagh,

New Delhi – 110005, INDIA.

Established (Year) : 1956

Management : Partnership Firm (Mr. Avtar

Singh & Mr. Harkirat Singh)

Turnover per annum : US $ 50 Million.

Export Percentage : 20%

Product line : Footwear for exports

33
 Footwear for the domestic

Market.

Set up :

Unit No. of Factory Production Product Machinery

Name Employee Size Capacity Strength

Aero 131 10000 30000 P.M. Ladies Imported

Club-I Sqft. shoes &

boots
Aero 150 50000 30000 P.M. Joggers & Imported

Club-II Sqft. Sport shoes

Goodluck 125 10000 25000 P.M. Children Imported

Enterprises Sqft. shoes/sandal

Casual 135 12000 30000 P.M. Casual Imported

Footwear Sqft. shoes

34
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 Country Approx. Business (In

US$)
Andre, Quelle, Casino & France 2000000

Auchan
Gap, Todd Welsh USA 1500000
Baur-Versand Germany 1050000
JD Williams, Wrangler UK 2000000

Brand Owned

 “WOODLAND”

35
  “WOODS”

 “WOODSTEP”

Registration of Brands (Country)

 NEW ZEALAND

 SINGAPORE

 DUBAI

 MAURITIAUS

36
COMPETITORS

PROFILE

37
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.

38
 MIRZA TANNERS LIMITED

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. A Tannery at Magarwara, Unnao with a capacity to produce 80 Lac Sq. ft.

of Finished Leather per annum.

39
 ii. 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.

iv. A Shoe factory at Sahjani, Unnao with a capacity to produce 10.5 Lac Shoe-

Uppers 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

Bata-Italy, 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.

40
 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 country.

M&B Footwear recently has spread its operations in the UAE and Bangladesh,

where the shoes are sold through exclusive distributors for the region.

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 of shoes for his project report.

41
Since then it was always there at the back of his mind to launch a signature line of

shoes under the brand name of i-D in the Indian footwear market.

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.

42
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.

43
 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

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

44
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.

45
 NIKE

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,

46
licensees, and subsidiaries in approximately 120 countries worldwide. Nike

was incorporated in 1968 and is headquartered in Beaverton, Orgeon.

47
 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 price-

conscious 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.)

48
 Adidas

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.

49
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,

50
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, shock-

absorbing 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.

51
DATA ANALYSIS

52
Analysis of the data collected by various dealers of branded footwear

Most Available Brand in the Market

NIKE
REDTAPE

FRANCO
WOODLAND

ADIDAS

LEE

REEBOK

ID

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.

53
Most selling Brand in the market

Franco

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.

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Most Preferred Price range by the customers

1500-2500
below 1000

1000-1500

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

55
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.

56
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

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Maximum Share in total Sale

Franco

Adidas

Reebok

Red Tape

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 Adidas shoes is least selling brand among the branded foot

wears

58
Discount offered by Dealers

15-30%
10-15%

No

5-10%

Findings

 5-10% discount is the commonly offered discount by the dealers.

 About 25% dealers don’t offer any discount to the customers

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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

60
Does woodland has variety according to needs of the customers?

No Idea

no

yes

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.

61
Price of product in the eyes of dealer’s

Excellent
Good No Idea

Average

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.

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Comfort level in footwear of Woodland

No Idea

Average

Excellent

Good

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.

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Value for Money in footwear of Woodland

No Idea

Excellent

Average

Good

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.

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After sales services in footwear of Woodland

Excellent
Good
No Idea

Average

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.

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Distribution network of Woodland

Excellent
Good

No Idea

Average

Findings

 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.

66
Availability of product in the eyes of dealers

Excellent
Good

No Idea

Average

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.

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Innovation in Woodland

Excellent

No Idea

Good

Average

Findings

 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.

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Analysis of the data collected by Customers

Percentage of people wearing branded & Non Branded Footwear

Finding

 Major chunk of population in Delhi and NCR is wearing Non-Branded

footwear

 Only 37% people wear Branded footwear

69
How many people in different age group are satisfied with the footwear they

wear?

20

AGE
10

Under 18

18-24

25-31

32-38
Count

0 Above 38
Yes No

SATISFY

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.

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

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.

71
How many pair of shoes do you currently have?

Finding

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

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

72
With which Personality you associate the brand you use

73
FINDINGS

74
 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.

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SUGGESTIONS

76
 SUGGESTIONS

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.

77
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.

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CONCLUSION

79
 CONCLUSION

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.

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 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.

81
ANNEXURES

82
 Dealers Questionnaire

1. Which of the following brands are available at your showroom?

□ Red tape □ Woodland □ Lee Cooper □ ID

□ Reebok □ Adidas □ Franco Leone □ Nike

2. Which brand of shoes do you sell the most?

□ Red tape □ Woodland □ Lee Cooper □ ID

□ Reebok □ Adidas □ Franco Leone □ Nike

3. Which price range is most preferred by the customer?

○ Below 1000 ○ 1000-1500 ○ 1500-2500

○ 2500-4000

○ 4000 and above

4. Which brand of shoes provides higher profit margin?

○ Red tape ○ Woodland ○ Lee Cooper ○ ID

○ Reebok ○ Adidas ○ Franco Leone ○ Nike

83
5. On an average how many pairs of shoes you sell in a month?

○ Below 5 ○ 5-10 ○ 10-15 ○ 15-30

○ 30-50 ○ 50-100 ○ 100 and above

6. Which of the following brands has maximum share in the total sales?

○ Red tape ○ Woodland ○ Lee Cooper ○ ID

○ Reebok ○ Adidas ○ Franco Leone ○ Nike

7. Do customers ask For Discount during Purchases?

○ Yes ○ No

If Yes(How Much)

○ 5-10 % ○ 10-15 % ○ 15-30 %

8. Which of the following qualities customer look in while buying a pair of

shoe?

○ Price ○ Design and Style ○ Comfort ○ Brand Name

○ Durability

84
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 ◘ Average ◘ Good ◘

Excellent

 Comfort ◘ Average ◘ Good ◘ Excellent

 Value for money ◘ Average ◘ Good ◘ Excellent

 After Sales service ◘ Average ◘ Good ◘ Excellent

85
 Distribution Network ◘ Average ◘ Good ◘

Excellent

 Availability of Product ◘ Average ◘ Good ◘ Excellent

 Innovation ◘ Average ◘ Good ◘ Excellent

“Thanks for Your Valuable Time & Suggestion”

86
 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 ○ Woodland ○ Lee Cooper ○ ID

○ Reebok ○ Adidas ○ Franco Leone ○ Nike

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

○ Newspaper ○ Television ○ Friend or Family Member

○ Internet

5. Are you satisfied with the shoes you wear?

○ Yes ○ No

If Yes,why __________________________________________________

6. What features do you perceive in your footwear? Rank them as per your

preference.

87
 □ 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

9. How frequently do you visit Shopping Malls?

○ Every Weekend ○ Once a Fortnight○ Once a Month ○Occasionally

○ Never

10.With which Personality you associate the brand you use?

○Hritik Roshan(Youthful) ○Dharmendara(Strong)

○Amitabh (Evergreen) ○Amir Khan (Versatile)

○Sachin Tendular (Master) ○Vijay Mallya(Business Tycoon)

○ Salman Khan (Charming) ○ Sanjay Dutt(Strong)

88
11. According to you. Which is the best Brand of shoes Available in the Indian

Market?

_____________

Reasons

“Thanks for Your Valuable Time & Suggestion”

89
BIBLIOGRAPHY

90
 BIBLIOGRAPHY

Reference book

 Malhotra K. Naresh, “Marketing Research: An Applied Orientation”/Edition:

fourth/Publication/Pearson Education

 Marketing Management by Philip Kotler/Edition: 12th /Publication: Pearson

Education

 Retailing Management by Swapna Pradhan/Edition: 12th /Publication:CBS

publication.

 Food Processing Industry Offering Scope for New Investment, (1998),Industrial

Researcher.

 Government of India, (1993), Ministry of Food Processing in Industry,

 Food Processing Industries in India: Investment Opportunities—New Delhi.

 Entrepreneurs in an Imperfect Marketplace, Sage Publications, India.

 Prasad, B. (1994), “Competitiveness analysis of early product introduction and

technology insertion,” PED-Vol. 68-1,

 Musselwhilte, C. (1990), “Time-based innovation: the new competitive

advantage,” Training & Development Journal, January, p. 55

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Websites

 www.footwear.com
 www.google.com
 www.indianfootwear.com

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