Documente Academic
Documente Profesional
Documente Cultură
E-Marketing
E-Marketing
Group no. 3
Servis Shoes
12/12/2014
E-Marketing
Table of Contents
INTRODUCTION OF SERVIS SHOES.....................................................................................................4
History.....................................................................................................................................................5
VISION.....................................................................................................................................................6
MISSION..................................................................................................................................................6
Ownership & Hierarchy...........................................................................................................................7
Goals and Objectives...................................................................................................................................7
Current Company Strategy......................................................................................................................8
Marketing Implications............................................................................................................................8
Description of Product.................................................................................................................................9
Core Product............................................................................................................................................9
Benefit of the Product............................................................................................................................10
Highly Comfortable...........................................................................................................................10
Funky and fascinating look................................................................................................................10
Top Quality Leather...........................................................................................................................11
Brands for Sports persons..................................................................................................................11
Durable..............................................................................................................................................11
Competitive comparison...........................................................................................................................11
Need Fulfillment....................................................................................................................................12
Company’s current website analysis..........................................................................................................13
Gap finding............................................................................................................................................17
.................................................................................................................................................................. 18
Market definition and attractiveness........................................................................................................19
Industry overview..................................................................................................................................19
Industry growth trends:.........................................................................................................................19
PEST ANALYSIS...........................................................................................................................................20
Political..................................................................................................................................................20
Economic...............................................................................................................................................20
Social.....................................................................................................................................................21
Technological.........................................................................................................................................21
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Servis Shoes in one of the leading brands of Pakistan in the category of footwear and is the
biggest retailer of the country in terms of revenue. It is working with 400 plus stores all over
Pakistan and its history goes back when there was only a single store. Now the company has
achieved a growth level of presence in international markets of Europe, Middle East etc.
Playing in different retail services, category of shoes is run under the name of Servis brand.
Furthermore, there are some other famous sub-brands developed by Servis Shoes such as Don
Carlos, Cheetah, Calza, Liza, Toz, and Skooz. It is also working with some international shoe
chains like Nike, Cat, and ECCO as distribution partner in Pakistan.
Due to handsome investment in its Product Development Department, Servis has innovation as
its key competitiveness now. It is benefiting from its strategic relationships with international
chains also.
Company operated stores, factory outlets, and agency are different formats of company’s retail
business.
Servis thinks that people of Pakistan are the soul of their business and each and every happy
moment delivered to people of Pakistan by them is their success. They claim that their
commitment to innovation and quality is providing delight and quality products to customers and
at the end generating happiness among them.
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History
More than 50 years ago, the story of Servis began with a partnership among three friends and
energetic fresh graduates of college named Ch. Nazar Muhammad (Late), Ch. Muhammad
Hussain (Late) and Ch. Muhammad Saeed. They started their business in 1941 from the small
scale manufacturing of sports goods and hand bags in Lahore. Within a short time they achieved
a good manufacturer name in all over India.
Expanding their business, they installed a manufacturing facility in 1954 in Lahore and shifted
their management office from Lahore to Gujrat. In the same year unit started producing various
type of footwear and this is how they entered in the category of shoes. In 1959, the group
established a marketing firm for proper marketing of their products named “Servis Sales
Corporation (Pvt) Ltd”. From the very first day friendly, caring and respecting culture was
supported which can favor all three ends of triangle i.e. Company, Employees, and Customers.
Today as a result of continuous struggle, Service Industries Limited has its own identity as a
manufacturing company which is producing quality products in categories of shoes, tyres, tubes
and rubber products. Whereas Service Sales Corporation is a different company all-together as a
retailing business and provides products in categories of shoes and pharmacy. Servis Shoes is a
strategic business unit of Servis Sales Corporation and is the leading footwear retailing brand of
Pakistan.
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VISION
To become a Global, World class and Diversified Company which leverages its brands and its
people.
MISSION
To be a result oriented and profitable Company by consistently improving market share,
quality, diversity, availability, presentation, reliability and customer acceptance.
To keep abreast with modern technology and designs to optimize production and enhance
brand image.
To set up highly ethical business standards and be a good corporate citizen, contributing
towards the development of the national economy and assisting charitable causes.
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Shahid
Hussian
CEO
M. Akram
Butt
Advisor
Continue to improve the quality of life of its employees and their families.
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Servis Shoes’ major goals include market share growth. Servis Shoes is largest footwear retailer
in Pakistan and wants to build further on its success. The market share growth of the brand is
focused on leveraging its brand and its highly competent employees.
The sales growth target has always been its major strategic objectives. On the basis of sales
growth target, achievement of success is measured. The company focuses on bottom line growth
as well and before it focused only on top line growth. The performance appraisals and
compensation and benefits of employees are dependent on achievement on sales growth target.
Those plans are devised keeping in mind the target achievement of sales growth.
Marketing Implications
To provide quality products at its 400 plus stores and 33 factory outlets, SSC’s distribution
channels gather its resources from one of the five following manufacturing units in Pakistan:
Gujrat,
Muridke,
Karachi,
Lahore and
Faisalabad.
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Servis Shoes are also available at “Shoe planet” this is one of the big stores in Pakistan and it
has to most brands to sell and is one of those leading brands in Pakistan having their mega stores
all over the country. Shoe Planet’s store houses renowned footwear brands that supply to all
customer needs for the final shopping experience.
United Kingdom.
Kenya,
Greece,
Dubai,
Germany,
Saudi Arabia,
Belgium,
France,
Italy,
Servis Shoes are also available at well named super stores like Carrefour, K.M and Hyper Star.
DESCRIPTION OF PRODUCT
Core Product
The Company rounds its footwear retail business under ‘Servis’ brand. It has also established
certain most adored footwear brands including:
Don Carlos
Cheetah
Calza
Liza
Skooz
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Toz
In addition, strategic partnership with international brands has always been an in interest of
Servis, and it has relationships with following in this regard;
Ecco
Clarks
Hush Puppies
Pierre Cardin
Nike
Urbansole
CAT
Following Characteristics and Features of Servis Shoes gives customers an overall good pre &
post purchase experience
Highly Comfortable
The basic thing about decision making process when it is especially about shoes is its comfort
ability. And SSC keeps this as high priority while designing their shoes.
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Durable
Servis shoes are durable and can resist the hectic environment of Pakistan in a sense of weather
and road conditions.
COMPETITIVE COMPARISON
Bata being the most direct competitor was giving the tough time to servis shoes but story has
changed now. The new players is the shoes market of Pakistan like
Stylo
Borjaan
Metro
English shoes
ECS
have captured immense market share
by attracting youth by introducing
colorful range of shoes which gives
them a distinct look on wedding and
party events. It is the main area where
Servis Shoes lags behind. These other
market players are also offering
different types of product range including casual wear, party wears, shoes range for
formal outlook etc.
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We also witnessed some of the changes in the promotional strategies of Servis Shoes in recent
years and it also understands this gap and is trying to reduce it by bringing in variety of colors in
the product range.
Need Fulfillment
Servis Shoes has number of features and qualities which attract the customers and create an
interest to purchase such as
styles
flexibility, durability
comfortable
Cost of product
If we talk about segment based targeting, following are the categories in which Servis Shoes is
serving different groups of customers:
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The URL of Service Shoes is www.servis.com. The home page of website has a decent look and
highlights by the company’s specific color “Red”. Pictures of Servis shoes for men, women &
children with current company’s tag line of “KHASS COLLECTION AAM PRICES” motivates
the visitor to go for in detail search of getting knowledge of product range along with prices.
There are different pages for specified men, women & ids collection. Visitors can also find
location of the nearest store by its website.
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The most important and facilitating factor of website is its Shoes Finder.
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Out of whole 87.9%visitors are from Pakistan. Following search key words send traffic to Servis
Shoes website:
Servis 21.53%
SSC 6.13%
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30.00%
25.00%
20.00%
15.00% 31.33%
5.00%
6.13% 5.80%
0.00%
Don Carlos Shoes Servis Servis shoes SSC Servis shoes
Pakistan
Following are the site which people visit immediately before this site:
Google.com.pk 36.5%
Google.com 9.5%
Furthermore, total 48 sites are linked with Servis Shoes’ website & the search with similar names
includes
Servik.com
Servin.com
Sersis.com
Tervis.com
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Gap finding
The major gap in the website of Servis Shoes is that it does not offer online shopping on its
website for the customers. The option for online purchase is inevitable to remain competitive.
This will let the company to greatly improve their product availability and their coverage.
On the other hand, shoe companies like Stylo do offer the services of online shopping as shown
in the picture:
Option for
Online
Shopping
The page layout and customer interface may also be affected by the usage of motion graphics.
The choice of whether or not to use motion graphics may rest on the target market for the
website. Motion graphics may be anticipated or at least superior received with an entertainment-
oriented website. However, a website targets spectators with a more serious or formal interest
(such as business, community, or government) might find animations needless and disrupting if
only for entertainment or beautification purposes. This doesn't mean that additional serious
content couldn't be improved with animated or video presentations that are pertinent to the
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content. In either case, motion graphic strategy may make the variance between more operative
visuals or distracting visuals.
The website of Servis is lagging behind in terms of dynamic interface and does not create
interactive appeal whereas the website of Bata is much more attractive and dynamic.
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Industry overview
This sector has pivotal importance in terms of providing and creating jobs, earning of foreign
exchange with the help of exports and fulfilling the local consumption requirements. Footwear is
one such industry which has increased its exports at large extent since 2003.
Karachi is the biggest shoe market of the country, the biggest cluster of shoe manufacturing
factories in Pakistan and head offices are located in Lahore and Faisalabad. Not only local
brands, outlets of many renowned international footwear brands have also come to the scene like
Hush Puppies, Pierre Cardin and Logo. Many of these top international brands are being
manufactured by leading local companies of Pakistan under license.
Industry analysts say that Pakistan has always failed to successfully develop brands, no matter
what the industry. The footwear industry includes some very fine brands like Servis, Brogan,
Starlet, English Boot House (EBH), Stylo and Urban sole.
There is a growing perception that the increasing cost of doing business in Pakistan is eroding
the competitiveness of the footwear industry in Pakistan. Thus in the rapidly changing global
economic environment, there is an urgent need to strengthen the competitiveness of the footwear
industry
The total market size of footwear industry of Pakistan was around Rs.130 billion in the fiscal
year 2013. In the past three years the revenue growth trend of the industry has been 8, 9 or 11%.
Out of the total market size of 130 billion rupees, share of Servis shoes was about 12% which
means that total revenue of the company was around Rs.15.6 billion in 2013.
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PEST ANALYSIS
Political
The power crisis is a major concern nowadays as it can lead to a rise in the cost of
production.
According to the regulations of World Trade Organization and policies of the government
concerning duties on import are not adequate enough because China is also dumping its
products in Pakistan which includes shoes. The investors of shoe industry are hesitant in
terms of investment due to such kind of agreements.
A positive thing in this regard is government’s attempt of developing the “industry safety
regulations” which is an effort in support of this industry as it provides protection to
make it much safer and stable.
The formalities in import and export are not much complex as the dealers can import
shoes to Pakistan and activate sales of their products by fulfillment of formalities which
are part of the law.
Economic
The rising prices of the energy as well as inputs causes rise in production cost which
impacts the projected amount of production in industries as well as exports.
Influence of International Competition: Impact of international Competition: Flow of
footwear products from China as well as Korea.
The economic condition of our country is not so good because of rising rate of inflation
each day. According to the State Bank of Pakistan it is 7.7% [ CITATION Ali14 \l 1033 ] . The
currency value of Pakistani rupee has decreased at an equal rate to inflation and that has
lowered buying power of customers.
It leads to rising cost and decrease in return for a company. A high interest rate in
Pakistan is a huge issue for the industry in running smoothly. Although labor costs in
Pakistan are low and the insignificant labor laws present a big opportunity for this
industry.
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Social
General public is getting more and more conscious about health thus more concerned
about works-outs and sports. Females are also increasingly attracted to exercise and
games nowadays. So the major players in the industry are coming up even with a range
female sports shoes. The awareness about footwear industry in rural areas in an issue.
The media is playing a supportive role in influencing the decision making of people.
People buy shoes most of the times on special occasions such as marriage, Eid as well
during different seasons like winter or summer while the variety of shoes differs on each
occasion.
People have become more and more concerned about fashion, status and style thus
demanding footwear which helps to realize the needs of their personality. They aspire for
quality footwear in return of cash that they spend. Because the famous international
brands are known to be prestigious so the people want to use them if they have the money
to spend. Now females have increased tendency for buying the shoes which match their
clothes.
Technological
Most of the players in the industry produce shoes which are hand made for the purpose of
competitive advantage. The use of technology is lower as customers tend to go for shoes
which are handmade. Also the allocated budget for R&D is low in Pakistani footwear
industry. So the technology change rate is negligible.
The technology has a big role just in the cutting and pressing of sole through machines.
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May suppliers are available in different cities of Pakistan. They are reasonably great in number
in comparison to their customers. As the amount of suppliers is high so buyers have a lot of
choice. So the buyers contain a lot of power as they can work with the particular
suppliers that they want to according to their choice.
The products in the industry are more or less similar. As the footwear industry does not
differ too much with regards to quality or design because most of the market players
contain similar suppliers so even if a company asks suppliers to protect the designs, the
suppliers can offer those similar designs with a minor difference to other companies.
So the bargaining power of buyers is quite high due to numerous options available to
them without much switching cost. They can switch to other brands which provide lower
price and same or better quality.
The trends have changed at a fast pace in terms of fashion so the buyer is not particularly
loyal and instead searches for superior designs as well as quality. The prices and quality
are quite comparable. Because of low switching cost and similarity of products
the final consumers do not incur a lot of cost if they switch brands.
The barriers for entry are medium because the current firms outsource and that makes
investment of capital reasonably low for the new entrants in market.
The new entrants in market should not spend heavy in order to fend off the existing
loyalties of the customers. They should in fact focus on their location of the retail shops,
quality as well as design.
The industry is a growing market because firms across this industry demonstrate good
revenue streams so this industry in a growth stage.
The solitary determining factor for the cost advantage is a promising location.
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No government policies exist as barrier to new competition. The duty on import is also
limited to few raw materials and those do not impact this industry directly.
However in Pakistani market Machine made shoes are substitute products as handmade
shoes are being produced currently in the market. Yet it will not be treated as a substitute
as people have to wear footwear, so it doesn’t matter except in rare cases.
STRENGTHS WEAKNESSES
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IFE/EFE EVALUATION
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ANALYSIS
As far as internal factors are concerned, IFE score of 2.8/4 depicts good position of Servis shoes
as it is deploying good strategies to patch up weaknesses with strengths. But they are not
responding to external events efficiently as their weighted score is 1.97/4 which is too low. In
order to tackle the external environment they need to deploy better strategies.
Target market
According to the Manager Consumer Insights and Services of Servis Shoes, an agreement has
been reached on classification of market into different tiers i.e. Bulk, Mass, Upper Medium,
Lower Medium and Upper Market for Men’s Footwear and four tiers for Women and YBGC
(youth, boys, girls, children) Market.
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All SEC groups are the target market of Servis shoes. 60% of males and 20-23% of females are
targeted by the company.
All types of people including students, athletes, professionals, children, housewives and working
class (blue collars) form the target market of Servis Shoes.
Geographic factors
Psychographic factors
Demographic factors
Geographic factors
The company has one CDC (central distribution center) which distributes shoes in the
following districts:
Peshawar
Islamabad
Rawalpindi
Jhelum
Gujarat
Gujranwala
Sialkot
Sargodha
Lahore
Faisalabad
Sahiwal
Multan
Bahawalpur
Sucker
Karachi
Psychographic factors
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Social Class: Middle Class (lower, middle, upper), Upper Class (lower, middle,
upper), Lower Class.
Demographic factors
Age: 5-19 years, 20-34 years, 35-49 years, 50-60 years, 60 and above
Gender: Male and Female
Our results of positioning analysis have yielded the following perceptions of consumers about
the brand:
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Comfortable shoes
Affordable prices
Trendy designs
Same product lines like shoes for children, athletes, casual and fancy
CURRENT POSITIONING
Through its positioning strategy, Servis Shoes focuses on positioning itself in the minds of
customers as a brand which is for all types of shoe customers. It tries to attract people from all
socio economic classes, people of all age groups and people of all kind of personalities, from
various lifestyles and values.
Tag line
“Servis shoes for everyone”
Jingle
Song used in its ad campaign, “Ferrari Ki Safari” became very popular and people have a high
recall for the song as well as the advertisement.
Current advertisement
The current advertisement of Servis that is being forecasted on television and radio is about the
winter collection “winter range”.
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Logo
The logo of Servis shoes is:
URL
The uniform resource locator of Servis shoes website is: www.servis.com
Packaging
Most used packaging of the shoes contains a white box with a red color lid.
According to the survey done to know the customer behavior about the online shopping we got
the following results:
Online Experience
When asked whether people had an experience of doing online shopping, we got the following
results. 55% respondents said yes and 45% said no. The following result shows that trend is
shifting people prefer online shopping too in comparison to brick and motor.
45% Yes
No
55%
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34%
Majority of the respondents said that they face some problem when shopping online. Bad
experience may lead to negativity. But 33% people said they do not face any problem in online
shopping.
Difficulty Faced
33%
Yes
No
67%
When asked that what kind of problem they faced, the issues which came up are: delay in
delivery, cheap quality of product and damaged product whereas 33% people said they didn’t
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face any problem. So while going online, the strategy should be to ensure long term relation with
customer and maintain good service in these areas and form a good impact of the company.
Type Of Problem
17% 4% 26%
Delay In Delivery
Cheap Quality Of Product
Product Damage
Other
14% No Problem
39%
Refraining To Go Online
23%
77%
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According to the survey, respondent listed “risk of not getting what you paid for”, as the most
important factor. This also decreases ones interest in doing online shopping. See next:
The importance of more factors was asked from the respondents which include: payment
methods, credibility, design, customer friendly and security checks and the factor that came out
as most important in terms of risk is the security and privacy checks as shown below:
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20%
Multiple Payment Gateways
Credibility
Privacy and Security Checks
Design
Customer Friendly
26% 13%
39%
Yes
No
61%
When people were asked why don’t they do or will not prefer doing shoe shopping online they
complained about the shoe size and being afraid that shoe won’t be of good quality. But still a
large amount of people were in favor of doing online shoe shopping.
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OBJECTIVES
Following are the objectives of E-business plan for Servis shoes which we have made to mitigate
the many problems existing in the current Servis shoes brand
E MARKETING STRATEGY
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E-mail marketing
Blogging
Content sponsorship
Social media marketing
IMPLEMENTATION PLAN
To reinvigorate and renovate website design and interface we will hire best available IT
specialists who will incorporate virtual online store in the website. They will develop avatars to
match customers taste and preferences and will engage customers 24/7 for two-way
communication and customer’s feedback.
3D Pictures
People are concerned that they cannot touch the shoe while purchasing online so for that we can
add 3D pictures which can give the real picture of the shoe and give a better understanding.
To help customer we can provide them with avatar online whom they can make the shoe wear so
they can get a better idea how the shoe will look when they will wear them and we can provide
them help that with which clothe colors this shoe will look good.
Payment Mode
We can help customers in by providing them 2 to 3 payment modes like credit card transaction
or payment on delivery. This will increase trust and make the shopping way easier.
Customization
The factor of customization can increase both sales and traffic. We can offer our customers that
they can select any shoe and can get in any color they want.
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We can assure the customers of privacy and security of their information by using various
measures such as complex algorithms.
We will utilize social media marketing tools to increase awareness, usage, customer engagement
and boost sales of Servis shoes.
Facebook
Servis is already running a Facebook page but it is not generating as much traffic and sales boost
as it should be or at least as much as of competitors. Problems in current Facebook page are late
or no response to customers, lack of customers’ engagement through two way communication,
online selling, lack of information and interest building. We will overcome all these problems
through our specialized IT team professionals who will make sure customer engagement through
two way communication, online selling, customer feedback, continuously updating all the
information and building awareness of the customers.
Twitter
We will utilize twitter to create worldwide awareness of Servis shoes. Upon arrival of every
season of new shoes we will create immense hype and interest among customers through “hash-
tags” on twitter and will make Servis shoes countrywide trending.
E-mail marketing
Through our CRM software’s in brick and mortar and online selling portal we will gather
customers ID and contact number. With their permission, we will send them e-mails containing
latest updates of new arrivals and prices based upon they’re past selling behavior. If the customer
is a buyer of premium shoes we will send them premium shoes updates, if the customer is buying
sports or casual shoes we will send them relevant product and services updates.
Content sponsorship
We will contact with famous local websites to give us space such as olx.pk, rozee.pk, asani.pk,
fashion.pk etc. on exchange we will provide them our space for their content.
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Gathering information about the latest trends and competitors is necessary to stay competitive as
it helps to understand where market is heading and how we should respond to potential threat.
Blogging
Through blog we aim to create awareness among customers and engage them. We will get their
feedback about our products and services and will encourage them to write their reviews and
generate further ideas.
Monitoring reviewing and updating are inevitable for the success of any business. We will
constantly monitor all the progress and based on review analysis and feedback we will
continuously innovate and update our strategies.
EVALUATION PLAN
Return on investment will tell us that how much revenue we are generating compared to past. If
we are getting the ROI up to the set benchmark it means our e marketing plan is paying off.
Sales number
Number of sales will tell us how much our e marketing plan has caused to improved sales as
compared to past sales.
Customer feedback
Customer feedback is most important and it will tell us that whether our customers are satisfied
or dissatisfied without products and services. If they are more satisfied as compared to past it
means that e marketing plan is paying off
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Competitor response
The level of response competitors are making after our e marketing strategic planning can gauge
the measure of success. E.g. if competitors are showing signs of panic and sudden changes in
their strategies it means they are worried about our progress and trying to mitigate the challenge
we posed upon them which ultimately shows the success of our e marketing plan
Analytics will give us the numbers that whether our e marketing plan is generating any positive
results or not by showing the number of traffic our website is receiving and conversion rate
Clicks
Clicks measurement is inevitable as it will be stated as how and from where customers are going
to clicks and what are the most inbounds link that customer clicked, it will also tell us what are
the bounce rate etc.
Continuous modification and improvement based on research and feedback is necessary to stay
competitive in the red ocean marketing environment such as in shoes industry.
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