1

A Study of Shoe
Market in India










Presented By:
Abhishake Dixit - 11P063
Animesh - 11P066
Deepak Ratiram Patil - 11P072
Eshan Gupta - 11P074
G Laxmi Lavanya -11P075
Sandeep Kumar G - 11P1



2

EXECUTIVE SUMMARY

This project takes a look at some of the major players in the Shoe industry like Nike, Puma, Bata and a minor local
market and also a multi-brand outlet. It aims at scanning these shoe markets and interpreting their key characteristics.
It then sets out to analyse the commonalities and differences among the markets which are being studied and the
reasons thereof. It also dwells on the analysis of the customer profiles of these markets.
The report begins with a brief overview of the Shoe industry in India. This is followed by introduction about the
companies Nike, Bata and Puma. It then focuses on the characteristics of these markets like products, sales strategies,
customer profiles, inventory management, market value, market segmentation and market rivalry. Then it states the
comparison between the different markets being studied.
It then gives analysis on the consumer preferences in the shoe market. The customer base is analysed and various
segments are pointed out. Various factors and criteria have been taken into consideration while segmenting the
market. We have tried to ascertain why customers buy a particular kind of shoes, how they choose and what factors
matter most in their decision-making.

















3

Contents
1.RESEARCH OBJECTIVE .................................................................................................................................................... 5
2. RESEARCH METHODOLOGY ...................................................................................................................................... 5
3. SAMPLING PLAN ........................................................................................................................................................ 5
4. DATA SOURCES.......................................................................................................................................................... 5
5. DATA PROCESSING METHODOLOGY ......................................................................................................................... 5
6. INTRODUCTION ......................................................................................................................................................... 6
6.1 History of Footwear ................................................................................................................................................ 6
6.2 Indian Footwear Industry ........................................................................................................................................ 6
6.3 Target Segmentation: ............................................................................................................................................. 7
Table 6.3 .................................................................................................................................................................... 8
Table 6.4 .................................................................................................................................................................... 9
Table 6.5 .................................................................................................................................................................... 9
Table 6.6 .................................................................................................................................................................... 9
Table 6.7 .................................................................................................................................................................. 10
7. SWOT ANALYSIS ...................................................................................................................................................... 11
8. MARKET SCANNING AND INTERPRETATION ........................................................................................................... 13
8.1.Segmentation : ...................................................................................................................................................... 13
Figure 8.1 ................................................................................................................................................................ 13
9. CHARACTERISTICS OBSERVED: ................................................................................................................................ 14
9.1. Discount Store (Puma): ........................................................................................................................................ 14
Table 9.1 .................................................................................................................................................................. 14
9.2. Factory Outlet (Nike): ........................................................................................................................................... 16
Table 9.2 .................................................................................................................................................................. 16
9.3. Exclusive Outlet (Bata): ........................................................................................................................................ 18
Table 9.3 .................................................................................................................................................................. 18
9.4. Local Market (Sadar Bazaar) ................................................................................................................................ 20
Table 9.4 .................................................................................................................................................................. 20
9.5. MBO: .................................................................................................................................................................... 21
Table 9.5 .................................................................................................................................................................. 21
Table 9.6 .................................................................................................................................................................. 21
10. CUSTOMER SURVEY ANALYSIS ............................................................................................................................ 22
Figure 10.1 .............................................................................................................................................................. 22
10.1.Important Parameters while selecting a footwear product ............................................................................... 23
Figure 10.2 .............................................................................................................................................................. 23
10.2.Important parameters while selecting footwear stores : ................................................................................... 24
Figure 10.3 .............................................................................................................................................................. 24
4

Figure 10.4 .............................................................................................................................................................. 25
Figure 10.5 .............................................................................................................................................................. 26
11. Key Learnings ...................................................................................................................................................... 27
12. CUSTOMER QUESTIONNAIRE .............................................................................................................................. 28
13. OUTLET MANAGERs QUESTIONNAIRE ............................................................................................................... 30
14. References .......................................................................................................................................................... 31






































5




1.RESEARCH OBJECTIVE
The objectives of this study are
To conduct a detailed study of the shoe markets
To analyse the key characteristics of the shoe markets studied
To study the commonalities and differences among the markets visited and the reasons behind the same
To understand the customer profiles, preferences and considerations in these markets

2. RESEARCH METHODOLOGY
Research Methodology: Exploratory Method

3. SAMPLING PLAN
Sample Method: Simple Random Sampling
Sample Size: 140
Sample Unit: General public of different age groups, different genders and different professions

4. DATA SOURCES
Primary Data - Questionnaire, Interview
Secondary Data - Internet, Company Website

5. DATA PROCESSING METHODOLOGY
Prepared the questionnaire for consumers of shoe markets after identifying the market segments, consumer
profiles to be studies
Floated the consumer questionnaire to collect the data
Interviewed outlet managers, sales people, customers
Once the primary data was collected through questionnaire , it was then edited, tabulated, categorised and
analysed
Gathered information from the internet and other secondary sources
Highlighted the key interpretations and learning out of this project




6

6. INTRODUCTION
6.1 History of Footwear
Footwear is estimated to have started its long history of human use during the Ice Age, nearly 5
million years ago. Unkind weather conditions are said to have created the necessity for footwear.
Other evidences show that footwear came to use at the end of the Palaeolithic Period, at about the same time the early
humans learned the art of leather tanning. Early pieces of footwear were made of wrappings, usually made of leather
or dried grasses. Later on pieces were developed from a novel piece of leather which is bound by a piece of strong
leather thongs. Sandals, which are the first crafted footwear, are the successors to these wrappings.
In Egyptian funeral chambers, paintings show the different stages in the preparation of leather and footwear. The images
also show that in Egypt, footwear depicted power and class. Egyptian sandals were crafted using straw, papyrus, or palm
fiber. Later on, Egyptian women adorned their footwear with precious stones and jewels.

Material evidences showed that the Greeks loved and took good care of their feet by using different footwear for
different activities. Greek women began wearing sandals to signify their social class. Their footwear signified beauty,
elegance, refinement, and extravagance.

Romans, on the other hand, created durable leather thongs so their legions can travel to places on foot. It is also believed
that foot fetishes began with the Romans when Senator Lucius Vitellus frequently kissed the shoe of his mistress which
was hidden in his tunic. In Rome, footwear also exhibited social class.

But in all of these early civilizations, footwear indicated social status. Footwear consists of garments that are worn over
the feet. They are worn mainly for protection and hygiene, but also for fashion and adornment. Footwear items come
from a wide range of materials including leather, rubber, canvass, wood and plastic. But early pieces were made from
available materials like straw, leather, cowhide, and grasses. When footwear is assembled, the main components are
adhesives, cushion, counter fort, heel, hook, insole, laces, sole, steel shank, tack, toe puff, tread, and welt. Generally,
footwear is classified into: boots, industrial footwear, shoes, and sandals.
The shoes market, like most other product markets has diverse segmentations. First, by material of construction: (a)
leather, (b) rubber, (c) PVC, (d) canvas, and (e) multi-product shoes. Second, by consumer variation: (a) men's,
(b) women's, (c) boys', (d) girls', and (e) baby shoes. Third, by usage pattern: (a) formal shoes, (b) casual and
informal shoes, (c) slippers for in-house use, (d) military shoes, and (e) sports shoes. Fourth, by types of shoes: (a)
military or police boots, (b) formal dress, closed and pump shoes, (c) sandles, (d) hawai chappals and (e) slippers.
Fifth, by price range: (a) high-end over Rs 1500 per pair going beyond Rs 3000 per pair; (b) medium priced
shoes between Rs 250 to Rs 1500 per pair, and (c) low-priced shoes below Rs 250 per pair. Plastic chappals or
leather strapped rubber sole chappals could be priced as low as Rs 20 a pair. Women's footwear sector is a fancy
segment with infinite designs, colors and attributes.

6.2 Indian Footwear Industry

With a large population of over 1140 mn, India has a large shoe demand. The total size of the market is estimated at
over a billion and a half pairs. While a large number of people buy two to five pairs each, some even ten, the bulk of
the people do not buy even one. With only one more pair per capita, the demand will expand by a staggering 1000 mn
pairs. It is a norm which is not hard to conceive. The per capita demand which was less than a pair in 2000-01 is
expected to increase to 1.5 by 2009-10 having crossed 1.2 pairs in 2003-04. The price range is so dispersed that a
predominant majority can buy an additional pair a year. In fact, the life cycle of several types of shoes is not as long as
one year, but others have a life cycle which exceeds one year.

Currently, the shoe industry is nearly a Rs 140 bn market, with the organised sector accounting for nearly Rs 35 bn. In
terms of exports, India accounts for a measly 2.56% of the global market compared to China's 22% (USD 30 bn).
7

The average price realisation of India shoes is already higher than Chinese shoes due to better designs and quality
provided by the Indian manufacturers.

The Indian market for footwear includes all producers of non-cleated, rubber and plastic footwear designed in style or for
use. The industry is a collection of smaller, segmented, yet often overlapping markets, defined by both the price and the
purpose of the shoes.

For instance, there are mini-markets for shoes designed for each of many sports and other purposes: basketball, running,
walking, tennis, and casual wear. The greatest overlap between these categories is between performance shoes and casual
wear. Therefore, there is some degree of overlap between most segments. The industry is dominated by a few large
firms, while the majority of other players have less than 5% market share.

These firms fight for market share through non-price competition, on strategies such as strengthening brand image and
increasing product proliferation. The success of each firm is greatly dependent upon its marketing campaigns. The brand
image of the major firms is created by extensive marketing campaigns and celebrity endorsements. Consumers associate
themselves with a particular brand and tend to stick with the brand with which they are comfortable. Entry to the industry
is difficult as brand loyalties are high.

Standing on the threshold of a retail revolution and witnessing a fast changing retail landscape, the Indian footwear
market is set to experience the phenomenal growth in coming years. In past few years too, the market has seen robust
growth.

Following are highlights of the Indian footwear Industry (as compiled by ET)

India is the second largest producer of footwear in the world after China
India accounts for 15% of the global footwear industry
Estimated size of the footwear market in India stands at Rs 16,000 crore
Unorganised players account for almost 65% of the market
Bata claims a market share of 25-30% in the branded market
India produces 2065 million pairs of footwear each year
Leather shoes 909 million
Leather shoe uppers - 100 million
Non- Leather footwear- 1056 million

It must be noted that while ET has mentioned that leather shoes produced in India stand at 909 million pairs, data
released by CSO shows that only 2.5 million pairs were produced in India during financial year 2010-11. This may mean
that CSO statistics are under-estimates.

6.3 Target Segmentation:

Geographic:
City:
More focus on metro cities because people believe in trying innovative, new and better products.

Demographic:
Gender: Male and Female both.
Age: Various age groups are targeted by the industry.
Income: Here industry needs to find out that how much expenses are incurred by the people regarding their footwear.


8

Psychographic:
It depend on the requirement of the consumer that which particular segment they need to approach for the products
available in the market by the different players. E.g.: A Professional goes for purchasing for Formal Shoes, Student goes
for Casual Footwear.

Behavioural:
It mostly depends on the Quality, Offers and Service provided by the different players of industry.
It also includes non user, potential user and first time user.

Footwear
Demand : Past & Future
Year mn pair
1990-91 360
1996-97 610
1997-99 655
1998-99 770
1999-00 850
2000-01 885
2001-02 950
2002-03 1035
2003-04 1085
2004-05 1160
2005-06 1235
2006-07 1320
2007-08 1420
2008-09 1530
2009-10 1650
2010-11 1765
2011-12 1880
2012-13 2000
2013-14 2130
2014-15 2265
2019-20 3000
Table 6.3





9

Leading Brands
Lotto, Adidas, Puma, North Star, Liberty, Reebok, Nike, Bata, Action, Phoenix, Casual, Woodland, Hang
Ten, Allen Cooper, Provogue, Relaxo
Market Growth Rates
1990-91-1996-97 9.2%
1996-97-2001-02 9.3%
2001-02-2006-07 6.8%
2006-07-2011-12 7.3%
2011-12-2019-20 6.0%
Sensitivity Coefficient
4.2%
Table 6.4

Market Structure
Market Segmentation
Segment Share (%)
Organised 18
Informal 82
Exports 33
Table 6.5

Product Variation
Type Share (%)
Casuals 65
Sports 12
Formals 15
Performance 5
Low priced 65
Mid-priced 28
High priced 12
Leather 30
Rubber/PVC 45
Canvas 25
Table 6.6



10

Strategic Alliances
Company Collaboration
Reebok India
Phoenix Overseas and Reebok
Inc., USA
Carona Puma
Drish Shoes
Manz Fortuna,
Germany Unico Leather
Florsheim
Model Leather Stanley & Hunt, UK
Montari Leather
International Shoe Mfg Corp.,
USA
Table 6.7




















11


7. SWOT ANALYSIS
STRENGTHS: -
Existence of more than sufficient productive capacity in tanning.
Easy availability of low cost of labour.
Exposure to export markets.
Managements with business background become quality and environment conscious.
Presence of qualified leather technologists in the field.
Comfortable availability of raw materials and other inputs.
Massive institutional support for technical services, designing, manpower development and marketing.
Exporter-friendly government policies.
Cheap Bank Finance
Exempt from Sales Tax
Exempt from Excise Duty
Tax incentives on machinery by Government.
Well-established linkages with buyers in EU and USA.

WEAKNESSES: -
Low level of modernisation and upgradation of technology, and the integration of developed technology is
very slow.
Low level of labour productivity due to inadequate formal training / unskilled labour.
Horizontal growth of tanneries.
Less number of organised product manufacturers.
Lack of modern finishing facilities for leather.
Highly unhygienic environment.
Unawareness of international standards by many players as maximum number of leather industries are SMEs.
Difficulties in accessing to testing, designing and technical services.
Environmental problems.
Non availability of quality footwear components
Lack of fresh investment in the sector.
Uneconomical size of manufacturing units.
Competition among units vying for export orders leading to undercutting.
Little brand image.
Poor labour productivity. Lack of awareness about consistent in
plant training and retraining- Inconsistent quality high rejection rate
Low machine and material productivity.
Lack of quality job work units
Delayed deliveries
Weak support infra- structure for exports
OPPORTUNITIES: -
Abundant scope to supply finished leather to multinationals setting up shop in India.
Growing fashion consciousness globally.
Use of information technology and decision support software to help eliminate the length of the production
cycle for different products
12

Product diversification - There is lot of scope for diversification into other products, namely, leather garments,
goods etc.
Growing international and domestic markets.
Exposure to newer markets through Fairs/ BSMs
Retain customers through quality supplies and timely deliveries
Aim to present the customer with new designs, infrastructure, country & company profiles.
Use of modern technology
Exhibit strengths in manufacturing, for example, strengths in classic shoe manufacturing, hand crafting etc.
De-reservation of the footwear sector.

THREATS: -
Entry of multinationals in domestic market.
Stiff competition from other countries.(The performance of global competitors in leather and leather products
indicates that there are at least 5 countries viz, China, Indonesia, Thailand, Vietnam and Brazil, which are
more competitive than India.)
Non- tariff barriers - Developing countries are resorting to more and more non tariff barriers indirectly.
Improving quality to adapt the stricter international standards.
Fast changing fashion trends are difficult to adapt for the Indian leather industries.
Limited scope for mobilising funds through private placements and public issues, as many businesses are
family-owned.
China It exports 80% of the total worlds footwear export. The labour is cheaper over there and the
production capacity is very high as compared to India.
INFLATION in India - The cost of the leather has gone up by 20% whereas the cost of the adhesives has
increased by 15% so even though the orders have increased the profit margin is still unstable. Usually the
profit margin for the manufacturing unit is about 25 to 30% but now due to the inflation, it has reduced to
10%.












13


8. MARKET SCANNING AND INTERPRETATION

8.1.Segmentation :

1. By Material on Construction


2. By Consumer Variation


3.By usage :


4.By Price Range


Figure 8.1











Rubber Leather Canvas PVC
Mens Womens Girls Boys Baby Shoes
Formals Casuals Slippers Sports Shoes
Low Priced (< Rs. 250) Medium Priced
(Rs. 250 - 1500)

High Priced
(> Rs.1500 )
14

9. CHARACTERISTICS OBSERVED:
9.1. Discount Store (Puma):
Product Base Lifestyle Products (Shoes, Clothing, Apparel)
Customer Focus Youth
Inventory Management Dynamic (Real Time)
Branding / Advertising (at outlet level) Promotion for registered customers through
SMS
Customer Feedback Mechanism Visitors Book / SMS
Consumer Category Middle / Upper Middle Class
Price Range Rs. 999 5499
Table 9.1

The Brand:
- Puma AG Rudolf Dassler Sport, officially branded as PUMA, is a major German multinational company
that produces high-end athletic shoes, lifestyle footwear and other sportswear.
- Formed in 1924 by Adolf and Rudolf Dassler.
- Relationship between the two brothers deteriorated until the two agreed to split in 1948, forming two
separate entities, Adidas and Puma.
- Puma AG has approximately 9,204 employees and distributes its products in more than 80 countries.
- For the fiscal year 2003, the company had revenue of 1.274 billion.
- PUMA launched Phase IV of its long-term oriented business plan in 2006. In Phase IV, Company
Expansion, PUMA has the long-term mission of becoming the most desirable sport lifestyle company. As a
part of this strategy, it founded fully own subsidiaries in India and Dubai.
4PS OF PUMA
Pumas 4Ps comprise of the following approaches to pricing, distribution, advertising and promotion, and
customer service:
Price : As an established brand in sports lifestyle theme specifically, Puma is not necessarily competitive in
its pricing , but rather is determined by its own pricing strategy, keeping in view the profits targeted.
Place : Puma has only 4 discount stores in India , apart from the regular stores across all the major cities and
other places too depending on the demographics.
Promotion : Targeted advertising in print media is their major source of promotion. Also strategic locations
are selected for establishing the stores. But , not much emphasis is laid on the promotion externally, as they
count on their brand name and loyality of its customers.
Product : Focus only on lifestyle products for sports, in line with the trends followed by the youth.



15


KEY OBSERVATIONS

- After a product launch, the products first go to exclusive stores. Discount stores get the new products after
a lag of 2 to 4 weeks.
-Almost all companies have quarterly Launch of new product & end of season sales in July and January
-No discount is offered on basic models
- End of Season Sales in Jan and July. Maximum revenue is generated in winters.
- Inventory Forecasting and Analysis is done at the company level. Outlets mostly follow Dynamic stock
inventory system with real time updation.
- There is approximately an equal mix of both genders visiting the store.
- Customers are both quality as well as price conscious.
- Product Promotion is done by the brand to which the outlet is affiliated. There is no promotion at the outlet
level.
- Location of outlet is decided by the parent company by prior surveys and analysis. Outlet owners do not
have a choice of selecting a location.















16


9.2. Factory Outlet (Nike):
Product Base Sports (Shoes, Clothing, Apparel)
Customer Focus Youth
Inventory Management Dynamic (Real Time)
Branding / Advertising (at outlet level) Minimal
Customer Feedback Mechanism Visitors Book
Consumer Category Middle / Upper Middle Class
Price Range Rs. 1300 10799
Table 9.2

The Brand :
- Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the United States. The
company is headquartered near Beaverton, Oregon.
- It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports
equipment with revenue in excess of US$18.6 billion.
- It employs more than 30,000 people worldwide.
- The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Philip
Knight and officially became Nike, Inc. on May 30, 1978.
-The company takes its name from the Greek goddess of victory.
- Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike
Skateboarding and subsidiaries including Cole Haan, Hurley International, Umbro and Converse.
- Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008.[4] In addition to
manufacturing sportswear and equipment, the company operates retail stores under the Niketown name.
- Nike sponsors many high profile athletes and sports teams around the world, with the highly recognized
trademarks of "Just do it" and the Swoosh logo.

4PS OF NIKE
Nikes 4Ps comprised of the following approaches to pricing, distribution, advertising and promotion, and
customer service:
Pricing: Nikes pricing is designed to be competitive to the other fashion shoe retailers. The pricing is based
on the basis of premium segment as target customers. Nike as a brand commands high premium.
Place: Nike shoes are distributed to Multi Brand store front and the exclusive Nike stores across countries.
While this necessitates a second trip for the customer to come and pick up the shoes, it allows Nike to offer a
much wider selection than any of the competition.
Promotion: Location, targeted advertising in the newspaper and strategic alliances serves as the foundation
of Nike advertising and promotion effort. The athletes and other famous sports personalities are always
17

taken as brand ambassadors. They form the prime building blocks of their portion strategy. Nike is one of
the sponsor of the Indian Cricket Team since 2005.
Product: Nike sells sports shoes specifically. Its product history began with long distance running shoes in
1963. (Past 17 years: Air Jordan basketball shoes). Wide range of shoes are distributed.

KEY OBSERVATIONS:
- Time taken for newly launched products to reach a factory outlet store is 3-4 months
- Main product segment for Nike is sports shoes
- Promotion, branding of products is done at the company level and not at the outlet level.
- Year Long discounts.
- Customers are price conscious.
- Inventory Forecasting and analysis is done by the company. The outlets operate a dynamic, real time
Inventory Management System
- Location of the store is decided by the parent company by prior surveys and analysis.



















18


9.3. Exclusive Outlet (Bata):
Product Base Diverse (Formals, Casuals, Comfort, Sports)
Customer Focus Low end segments
Inventory Management Dynamic (Real Time)
Branding / Advertising (at outlet level) Major advertising through flyers,print media
and radio and also through electronic media
to some extent
Customer Feedback Mechanism Visitors Book
Consumer Category Lower Middle - Middle Class
Price Range Rs. 249-5499
Table 9.3

The Brand :
- Bata India is the largest retailer and leading manufacturer of footwear in India and is a part of the Bata
Shoe Organization.
- Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up initially as a small
operation in Konnagar (near Calcutta) in 1932. In January 1934, the foundation stone for the first building of
Batas operation - now called the Bata.
- In the years that followed, the overall site was doubled in area. This township is popularly known as
Batanagar. It was also the first manufacturing facility in the Indian shoe industry to receive the ISO: 9001
certification.
- The Company went public in 1973 when it changed its name to Bata India Limited.
-Bata India has established itself as Indias largest footwear retailer. Its retail network of over 1200 stores
gives it a reach that no other footwear company can match. The stores are present in good locations and can
be found in all the metros, mini-metros and towns.
- The Company also operates a large non retail distribution network through its urban wholesale division and
caters to millions of customers through over 30,000 dealers.
-The company manufactures footwear in five plants located in Batanagar, West Bengal; Faridabad,Haryana;
Bangalore, Karnataka; Patna, Bihar; and Hosur, Tamil Nadu.
- The company secures its leather supply from two tanneries in Mokamehghat, Bihar; and Batanagar, West
Bengal
KEY OBSERVATIONS:
- Products launched reach exclusive stores first. They, then move to discount stores, factory outlets and
MBOs.
- Customers are usually quality conscious and demand a greater variety of stock.
- Promotion, branding of products is done at the company level and not at the outlet level.
- There are usually no (or very little) discounts offered.
- Lesser in number than discount stores or factory outlets.
19

- In the early 1990s, Bata decided to embrace the high-end segments of the Indian shoe market as a part
of its target market. It launched quite a few brands with higher price tags. This move landed Bata in
trouble. This segment was not meant for Bata. In the first place, this segment was not sizable for a
company like Bata. Second, the segment did not gel with Batas distinctive competence. The segment
constituted a mere 5 to 10 per cent of the footwear market in India. It could not provide the volumes that
Bata was used to at the mass end and high volume was essential for Bata for having a healthy bottom
line. After learning the lesson the hard way, Bata did an about-turn from its adventure with high-end
segment and returned to the mass segment. The new strategy was to get back to the original customers at
the low end and keep that part of the market as its core focus.


























20



9.4. Local Market (Sadar Bazaar)
Product Base Diverse (Formals, Casuals, Comfort, Sports)
Customer Focus Price Conscious Customers
Inventory Management By the shop owner
Branding / Advertising (at outlet level) None
Customer Feedback Mechanism None
Consumer Category Low / Middle Income Class
Price Range 150 450
Table 9.4

Key Characteristics:
- Local brands
-No customer Loyalty
- Customers are extremely price sensitive with little focus on quality or durability.
- There is no (or very little) advertising by the shop owners.
- No discount is offered.
- No systematic planning or forecasting of Inventory
-Margins in the range of 15 to 20 %
- High inclination towards selling Ladies footwear.












21

9.5. MBO:
Product Base Diverse (Formals, Casuals, Comfort, Sports)
Customer Focus Unbiased Customers
Inventory Management Distributors
Branding / Advertising (at outlet level) i)Product-level : By the respective companies
ii)Store-level : By the MBO Manager
Customer Feedback Mechanism Visitors Book
Consumer Category Middle / Upper Middle Class
Price Range Varies with brands
Table 9.5

Key Observations:
- More brands available but choices of product within those brands are limited.
- Freshly released stocks are available in MBOs after a time lag (after the primary sales at exclusive
stores).
- Inventory management is done at the outlet level and stock is procured from the distributor.
- Customers dont have specific brand preferences and are price conscious.
- Promotional activities focus on the outlet rather than on the brands.

Commonalities and Differences

Discount
Store (Puma)
Factory
Outlet
(Nike)
Exclusive
Store (Bata)
Local
Shopowner
(Sadar
Bazaar)
Multi Brand
Outlet (Planet
Sports)
Time Taken 2-4 Weeks 3-4 Months Immediate NA 4-8 Weeks
Customer Both Quality
and Price
Conscious
Price
Conscious
Quality and
variety
Conscious
Extremely
Price
Conscious
Primarily Price
Conscious
without brand
biases
Discounts End of Season
Sales
Throughout
the Year
Minimal None Very Little
Promotion By the parent
company
By the parent
company
By the
parent
company
No
advertising
Focussed on
Outlets rather
than on brands
Customer
Feedback
Visitors Book Visitors
Book
Visitors
Book
None Visitors Book
Inventory
Management
Dynamic
(Real Time)
Dynamic
(Real Time)
Dynamic
(Real Time)
Unsystematic Dynamic (Real
Time)
Target
Segment
Middle / upper
middle
Middle /
Upper
Middle
Lower
Middle /
Middle
Lower to
Lower
Middle
Middle to Upper
Middle
Table 9.6


22

10. CUSTOMER SURVEY ANALYSIS
The total sample size was 146 people. Following is the division according to age, gender, occupation and
income groups.
Age Group

<16 07

7 5%
16-24 83

83 57%
24-40 48

48 33%
40+ 08

8 5%

Gender

Male 121

121 83%
Female 25

25 17%

Occupation

Student 107

107 73%
Service 28

28 19%
Business 03

3 2%
Other 08

0 0%


8 5%


Family Income (Yearly)

Figure 10.1
< 3 Lakhs 23

23 16%
3-8 Lakhs 84

84 58%
>8 Lakhs 39

39 27%


23

10.1.Important Parameters while selecting a footwear product
60.27 % of the people surveyed felt that comfort was the most important criteria while choosing a
footwear product. This percentage increased to 73% in the age group 24-40.
83% people are style conscious when it comes to selecting footwear.
Amongst the people surveyed, 56% felt that brand name was an important consideration. This percentage
increased to 71 in the age group 24 40 & decreased to 12.5 in the age group 40 +
63 percent of the surveyed customers were price conscious whereas 71% wanted durable products.
Only a third of the people surveyed had discounts as the preferred criteria and this was approximately
uniform across all income groups. This shows that people prefer quality and durability to discounts.

PRICE STYLE COMFORT


BRAND NAME DURABILITY DISCOUNTS

1- Least Imp 5- Most Important
Figure 10.2






24

10.2.Important parameters while selecting footwear stores :


Proximity to Residence Varieties Offered Attentiveness of Sales Staff

Discounts Ambience

1- Least Important 5 Most Important
Figure 10.3

From the responses (depicted above in the graphical form), we can deduce that 31.5% people preferred
shopping for footwear in a store close to their place of residence. The percentage increased to 50 in case of
females.
83% of the people surveyed wanted to see a good variety in a footwear store.
62.3 people wanted an attentive and well informed sales staff.
Only 7.5 percent chose a footwear store because of its ambience.
Only 28 percent of the females give importance to discounts offered while selecting a footwear store. This
figure increases to 48 percent in case of males.






25


Figure 10.4

Despite the increasing expenditure on print and TV media, Word of mouth is still the major source of brand
promotion according to the opinion of half of the respondents surveyed.
Only 12 % of the people surveyed would go for an unbranded product even if it offers the same features as a
branded one. This increased to 50 percent in the age group 40+











26



Figure 10.5

Majority of the people surveyed purchase new footwear every 6-12 months.
Given similar products, majority of the people would not want to pay a substantial amount for purchasing
a particular brand.










27

11. Key Learnings

The key learnings from the scanning and interpretation of the shoe markets are:
Understanding of the shoe market in Indian context, it's history, lead market players, market structure, forecast,
demand analysis, swot analysis and it's target segmentation.
Analysis about the growth of Indian footwear market in the fast changing retail landscape.
Important characteristics of the several types of shoe markets, and their analysis.
Learnt about the marketing mix and marketing strategies of each market.
Understood how the important marketing parameters of, say a factory outlet are different from that of a exclusive
store and a multi-brand outlet.
Understood how a company has different strategies for sales, promotion, inventory management, depending on
whether it is selling the products in it's exclusive store or distributing them to multi-brand outlets.
Learning about the consumer preferences and considerations in shoe markets and the factors influencing them, by
the analysis of the data from the consumer survey conducted




























28

12. CUSTOMER QUESTIONNAIRE
Name :
Age Group *
<16
16-24
24-40
40+
Gender *
Male
Female
Occupation *
Student
Service
Business

Other:
Family Income (Yearly) *
< 3 Lakhs
3-8 Lakhs
>8 Lakhs
RRate : The following features that you consider while purchasing footwear
Comfort *
1 2 3 4 5
Unimportant Most important
Style *
1 2 3 4 5
Unimportant Most important
Brand Name *
1 2 3 4 5
Unimportant Most important
Price *
1 2 3 4 5
Unimportant Most important
Durability *
1 2 3 4 5
Unimportant Most important
Discounts *
1 2 3 4 5
Unimportant Most important
What is the average duration for which you use a pair of shoes?
<6 months
29

6months - 1 year
> 1 year
How much are you willing to pay for a pair of shoes that fit your requirement
<1000 Rs
1000 - 2500 Rs
2500-5000 Rs
5000 +
RRate the reasons for selecting a particular footwear store.
Proximity to residence *
1 2 3 4 5
Less Relevant Highly Relevant
Varieties offered *
1 2 3 4 5
Less Relevant Highly Relevant
Attentiveness of Sales Staff *
1 2 3 4 5
Less Relevant Highly Relevant
Discounts *
1 2 3 4 5
Less Relevant Highly Relevant
Ambience *
1 2 3 4 5
Less Relevant Highly Relevant
What is your usual source of information on footwear products?
Newspaper Advertisements
Magazines
Television ads
Posters / Banners
Word of Mouth
Given a Choice, which one of these would you prefer to buy
How often do you buy new footwear? *
Every Month
Once in 2 months
Once in 6 months
Once a Year
More than a year
Given the same features in two footwear products, how much extra money will you be willing to pay for the brand? *
Nil
<500 Rs.
500 to 1000 Rs.
1000 +
30

13. OUTLET MANAGERs QUESTIONNAIRE
How often are stocks bought?
Effect of End Of Quarter?
Effect of online billing?
Sector of consumer targeted?
Difference between multi brand and direct company store?
Difference between A+, B and Company Outlet Stores?
Revenue and Cash difference in Exclusive store and Non Exclusive outlet?
How do you manage the stock?
What you notice in consumer behaviour?
When and why you put a SALE?
Effect of season?
On which product are sale applied?
Strategy behind sales?
Strategy to deal with competition?
What steps are taken to advertise brands/shops?
How the consumer feedback is taken?
What is the quarterly target?
How is the track of consumer kept?
Why are multi brand outlets made by companies?









31

14. References

1.www.indiastats.com
2.www.bata.com
3. http://www.managementparadise.com/forums/marketing-management/
4. www.scribd.com%2Fdoc%2F14816327%2FCONSUMER-PREFERENCE-ABOUT-DIFFERENT-BRANDED-SPORTS-
SHOES-mba-major-project-report&h=BAQBlJPEd
5.http://footwearsinfoline.tripod.com/swotanalysis.htm
6. http://www.indianshoebazaar.com/ind_india.asp
7. http://www.slideshare.net/ResearchOnIndia/footwear-market-in-india-2010-sample
8. http://industrytracker.wordpress.com/2011/05/30/india-footwear-industry/