market analysis of footwear industry in india with ref to lakhani

TABLE OF CONTENTS

EXECUTIVE SUMMARY 9

INTRODUCTION 10-16

COMPANY PROFILE 17-31

PRODUCT RANGE 32-42

MARKETING : BASIC FUNDAMENTALS 43-45

CONSUMER BEHAVIOUR 46-52

PROBLEM FINDINGS 53-59

OBJECTIVE RESEARCH 60-62

LIMITATIONS 63-65

RESEARCH METHODOLOGY 66-69

DATA ANALYSIS 70-77

RATE THE CHARACTERISTICS OF LAKHANI 78-84

- Advertising 85-90

- Lakhani Retail Revolution Limited 91

SWOT ANALYSIS 92-93

LEARNING 94-95

MARKETING SEGMENTATION 96-

105

NEWS & CASES 106-107

LAKHANI LATEST ACHIEVEMENTS 108-

112

FINDINGS 113-114

RECOMMENDATIONS 115-116

CONCLUSION

BIBLIOGRAPHY

APPENDIX

1

EXECUTIVE SUMMARY

Footwear market is estimated at 550 million pairs, of which 450 million pairs are

in the form of casual footwear, such India’s total as ethnic footwear, rubber and

leather slippers, sandals etc, but not boots and shoes. Leather footwear has a

sizeable share, and production is estimated to be at 200 million pairs, including for

exports. The footwear market is expected to grow at 8-10%, based on recent

trends. In value terms, the sector represents a market of US$ 2.17 billion, of which

exports account for approximately 35%.

2

INDIAN FOOTWEAR INDUSTRY

Until recently, a major part of the demand was met by the unorganized, informal,

small sector. Branded shoes, produced by large Indian producers, multinationals

producing in India and imports, account for only less than 20% of the entire

market. The branded footwear market is estimated to be 100 million pairs, made up

of 5 million pairs of sports and athletic shoes and nearly 95 million pairs of shoes

and boots. The segment is dominated by men’s footwear, and there are not more

than three women’s brands known nationally.

Women’s footwear purchases are mostly in the casual footwear market, ruled by

unbranded goods. Formal footwear expenditure (in 1997) by the upper segment of

urban women (2.8 million households in the SECA/B class) was estimated to be

less than US$ 8.69mn, which is less than 1% of the total market size. However,

ladies brands in footwear are now on the rise, with several new players focusing

on the formal dress needs of the working women.The largest players in footwear

are Lakhani Shoes, an Indian brand that has performed exceedingly well in shoes

with leather as well as non-leather soles, and

Bata, the international brand present in India for close to 100 years, which has a

24% market share. Lakhani, with a production of 10.5 million pairs, claims to

enjoy a market share of 36% in the leather footwear segment and

22 % in the non-leather sole segment. Exports constitute 30% of Lakhani’s sales.

Both Bata and Lakhani have launched international brands in India through tie-ups:

3

Bata with Hush Puppies, Lakhani with Burberry’s.An interesting feature of the

market is the presence of several international players in the informal and sport

shoes segment, which has a total market of only 5 million pairs. The major MNC

players are Reebok, Adidas and Nike. Italian brands Lotto and Fila have franchise

tie-ups in India, although the brand is not aggressively promoted. Reebok, with a

premium positioning, sells 0.2 million pairs in the domestic market in 1999, posted

breakeven revenues of US$ 15.21million, and is adding a chain of sport

goods and fitness stores to complement its premium Rockport brand.Adidas is

aiming to become the leader in the sports footwear and sports wear market, which

is estimated to be at US$ 217.3million. The company uses the manufacturing set

up of an Indian company, Lakhani, to manufacture the Adidas range in India. Nike

Shoes purchases its products from a contract supplier, and sells through select Bata

showrooms and a few departmental stores. Other international brands like

Woodland, Lumberjack and even Bally have set up shop in India with production

or assembly facilities.

Indian leather industry is the core strength of the Indian footwear industry. It is the

engine of growth for the entire Indian leather industry and India is the second

largest global producer of footwear after China.

Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks,

Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and

Colehaan are manufactured under license in India. Besides, many global retail

chains seeking quality products at competitive prices are actively sourcing

footwear from India.

4

While leather shoes and uppers are produced in medium to large-scale units, the

sandals and chappals are produced in the household and cottage sector. The

industry is poised for adopting the modern and state-of-the-art technology to suit

the exacting international requirements and standards. India produces more of

gent’s footwear while the world’s major production is in ladies footwear. In the

case of chapels and sandals, use of non-leather material is prevalent in the

domestic market.

Leather footwear exported from India are dress shoes, casuals, moccasins, sport

shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear exported from

India are Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other

materials.

With changing lifestyles and increasing affluence, domestic demand for footwear

is projected to grow at a faster rate than has been seen. There are already many

new domestic brands of footwear and many foreign brands such as Nike, Adidas,

Puma, Reebok, Florsheim, Rockport, etc. have also been able to enter the market.

The footwear sector has matured from the level of manual footwear manufacturing

methods to automated footwear manufacturing systems. Many units are equipped

with In-house Design Studios incorporating state-of-the-art CAD systems having

3D Shoe Design packages that are intuitive and easy to use. Many Indian footwear

factories have also acquired the ISO 9000, ISO 14000 as well as the SA 8000

certifications. Excellent facilities for Physical and Chemical testing exist with the

laboratories having tie-ups with leading international agencies like SATRA, UK

and PFI, Germany.

5

One of the major factors for success in niche international fashion markets is the

ability to cater them with the latest designs, and in accordance with the latest

trends. India, has gained international prominence in the area of Colours & Leather

Texture forecasting through its outstanding success in MODEUROP. Design and

Retail information is regularly made available to footwear manufacturers to help

them suitably address the season's requirement.

The Indian Footwear Industry is gearing up to leverage its strengths towards

maximizing benefits.

Strength of India in the footwear sector originates from its command on reliable

supply of resources in the form of raw hides and skins, quality finished leather,

large installed capacities for production of finished leather & footwear, large

human capital with expertise and technology base, skilled manpower and relatively

low cost labor, proven strength to produce footwear for global brand leaders and

acquired technology competence, particularly for mid and high priced footwear

segments. Resource strength of India in the form of materials and skilled

manpower is a comparative advantage for the country.

In a Nutshell

There are nearly 4000 units engaged in manufacturing footwear in India. The

industry is dominated by small scale units with the total production of 55%. The

total turnover of the footwear industry including leather and non-leather footwear

is estimated at Rs.8500-9500 crore (Euro 551.3-1723.1 Million) including

Rs.1200-1400 crore (Euro 217.6-253.9 Million) in the household segment.

6

India's share in global leather footwear imports is around 1.4% Major Competitors

in the export market for leather footwear are China (14%), Spain (6%) and Italy

(21%).

The footwear industry exist both in the traditional and modern sector. While the

traditional sector is spread throughout the country with pockets of concentration

catering largely to the domestic market, the modern sector is largely confined to

select centres like Chennai, Ambur, Ranipet, Agra, Kanpur and Delhi with most of

their production for export.

Assembly line production is organized, and about 90% of the workforces in the

mechanized sector in South India consist of women. In fact, this sector has opened

up plenty of employment opportunities for women who have no previous

experience. They are trained to perform a particular function in the factory itself.

The estimated annual footwear production capacity in 1999 is nearly 1736 million

pairs (776 million pairs of leather footwear and 960 million pairs of non-leather

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

RegionLeather

Shoes

Non-leather Shoes

Leather Shoe

Uppers

Leather Sandals

Non Leather Sandals

PercentageTamil Nadu 26 5 54 1 0

Delhi & up North 10 77 4 1 60

Agra, Kanpur 45 0 32 62 0Calcutta 12 0 2 3 0

Bangalore 3 3 4 0 0Mumbai 4 2 1 32 0Others 0 13 3 1 40Total 100 100 100 100 100

7

Shoes manufactured in India wear brand names like Florsheim, Gabor, Clarks,

Salamander and St. Micheal’s. As part of its effort to play a lead role in the global

trade, the Indian leather industry is focusing on key deliverables of innovative

design, consistently superior quality and unfailing delivery schedules. India in

itself has a huge domestic market, which is largely untapped.The Indian footwear

industry is provided with institutional infrastructure support through premier

institutions like

Central Leather Research Institute, Chennai, Footwear Design & Development

Institute, Noida, National Institute of Fashion Technology, New Delhi, etc in the

areas of technological development, design and product development and human

resource development

8

MAJOR PLAYERS

Comparison of key ratios with the companies of comparable size in the same

industry group*.

Major players or the competitors of the lakhani shoes ltd.

9

Corporate Philosophy

Steeped in a philosophy that has at its core innovation, technology and

advancement, we at Lakhani, pride ourselves over and above everything else on

our healthy and heart-felt respect for the human ethos, which projects itself in the

expectancy and excitement with which one greets the arrival of the new combined

with a sincere and deep regard for the old, which is appreciative of and adopts at

every stage the unique balance between modernization and tradition.

Lakhani as a brand is constantly evolving to keep pace with the changing trends,

styles, beliefs, and aspirations of people while maintaining the sanctity of certain

traditions like workmanship and good value.

Our Credo

To ensure that the method we use is the latest technology the world over. To

follow the highest standards of honest workmanship in whatever we make. To

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Walk the extra mile to ensure customer satisfaction worldwide. To remain a true

cosmopolitan to the spirit. To remain a great corporation to associate with, to work

for.

11

Technology

Better methods. Better tools. Better technology. Enhanced productivity. Finest

quality. Greater customer satisfaction. Lakhani has a lot of firsts to its credit.

It has introduced a new material called TPU (Thermo Plastic Urethane), for high

quality footwear, into the country. This material has better properties than PVC or

TPR (conventional materials used for footwear).

Lakhani has also been instrumental in introducing EVA (Ethyl Vinyl Acetate),

which is a direct injection molding used for making sole for the first time in Asia.

This technology uses very light material & the footwear is made with the direct

injection system.

Lakhani also pioneered the PU (Poly Urethane) Technology in India for the

footwear industry.

12

Besides these Thermo Plastic Elastomer has been developed for the first time in

India at Lakhani. A CAD/CAM design center is in place at Lakhani. The Sympatex

waterproof technology in footwear was pioneered by also Lakhani. Lakhani is also

the first company to market PPE products for safety purpose

Manufacturing Excellence

We call them Humantech Centers. When people visit us they see them as centers

of Excellence for manufacturing shoes where technology works in perfect tandem

with human creativity. Lakhani has Humantech centers at four locations in India,

the latest being the Uttaranchal project which was launched recently to boost the

production of world-class footwear. This Greenfield plant near Dehradun will

increase the company's existing production capacity of 18 million units’ pa by

200,000 units

13

The locations of the four are Humantech Centers:

GHARAUNDA, HARYANA (APPROX. 95 K.M. FROM DELHI)

Gharaunda is the first plant of its kind in this part of Asia that is equipped with

Desma machines for PU Direct Injection Moulding. Using PUF technology and

Computer Aided Systems this vertically integrated plant produces Industrial Safety

Shoes that are made to European standards. Sympatex TEX booties as well as

ordinary booties are also made here. Beside these Gharaunda has a design center

where an ambitious team of young designers working in tandem with experienced

technologists.

Lakhani puram, Haryana (102 k.m. from Delhi)

About 14 km from Karnal this Humantech center, spread across 50 acres of

landscaped greens, has 16 lines for Cement Last Construction footwear, 15 lines

for Direct Injection Mounded footwear and 3 lines for EVA Direct Injection

footwear. It is a manufacturing base for slippers and sandals that put the Chinese

sheet slippers to shade, teenager's shoes with very light

PVC soles as well as leather soles, shoes for both sexes as well as booties for

ladies.

14

Karnal, Haryana (124 k.m. from Delhi)

Lakhani’s first manufacturing center caters essentially to the domestic market and

produces Cement Last Construction as well as leather sole footwear for both men

and women

Dehradun in, Uttaranchal

This new Humantech center makes Cement Last Construction footwear as well as

the comfort range of sandals for ladies. It will soon also produce sports shoes for

the likes of Reebok and Nike as well as for the domestic market.

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Product Range

Lakhani has created a repertoire of 10 well developed brands, each one of which

has been painstakingly nurtured to cater to its specified target group. Care has been

taken to create a specific identity for each brand and to provide the latest

international designs.

Today, the new range from Lakhani is all about style, design, and comfort. The

range imbibes the spirit of fun and is trendy to the core. There is a product for

every season and occasion.

Force 10 has long perceived to be the flagship brand of Lakhani, Force 10, today is

Synonymous with value for money fashion sports shoes. It is a symbol of family

force of Lakhani which has 10 members. Targeted at the age Group of 13-28 year

old boys and men, Force 10 produces over 600,000 pairs annually. Available in the

range of Rs. 350 to Rs. 1250, Force 10 looks with

“Life at a force of 10”

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Coolers are the brand of men’s sandals and slip-ons. These sandals cater to the age

group of 21-45 years and are a stylish and comfortable accompaniment to any

apparel. The range is amongst the most sought after during the summer months and

over 1,000,000 sandals are produced every year. In the price range of Rs. 295 to

Rs. 899, Coolers are indeed

“Cool comfortable sandals”

Foot fun has been created as an exclusive brand for children in the age group of 1

to 12 years. Children have their own peculiar requirements so far as footwear is

concerned. The Lakhani Foot fun addresses all concerns of style, comfort, fitting as

well as gives special emphasis to the flexibility of the footwear. Bright and vibrant

colors are to the USP of the range and the maintenance proof products add value

for the children and parents alike.

17

The products in this category include sandals, infant and toddler range of unisex

shoes, sports shoes, and school shoes. The range is available in the price range at

Rs. 135.00 to Rs. 395.00 and sells over 2,400,000 pairs annually. It conforms to the

tag line.

“Non Stop Fun”

Fortune comprises of men’s formal and casual shoes in Leather from the House of

Lakhani. These shoes, meant for today’s students and executives in the age group

of 18-45, combines the latest trends in formal wear abroad in to the most formal

footwear. It is a sign of good luck, a symbol of being prosperous. The Fortune

collection produces 600,000 pairs of shoes every year. In the price range of Rs. 850

– 1495, these shoes promise,

“It takes some men places”

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A symbol of light weight footwear, it gives a feeling of floating in air. It is the

most important brand of Lakhani as it covers all segments, varieties, colours,

designs and price ranges. It is a mass brand of the company. Gliders cater to the

specific need of normal, semi-formal footwear as well as beachwear for the age

group of 2-45 years. This range has something or the other to cater to the

requirements of children, young men and women. Over 45, 00,000 pairs of Gliders

footwear are produced each year in the price range of Rs. 125 to Rs. 1795. Gliders

conform to the adage:

“Some things are just right”

19

Senorita is a brand that caters to the high design and fashion styling amongst

young women. Bringing out the flair of each style, Senorita invites young women

in the age group of 14-26 to be comfortable as well as look the most delicately

brought out the latest designs for this brand. Over 4, 50,000 pairs are produced in

this range in the price category of Rs. 495 to Rs. 995. Senorita invites women to

retain their youthfulness, vibrancy and energy through its tag-line

“Hey woman, stay girl”

Geo Sport exclusive professional sports shoes for 14-38 year olds; Geo Sport is

targeted at budding and professional sportspersons. The shoes cater to niche of

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professional sportswear, 15,000 pairs of shoes are created every year in the price

range of Rs. 895 - Rs. 1695. Geo Sport is important to serious player

“Because winning matters”

Warrior a range of safety shoes for institution sales and workers of the age group

21- 45 years comprise Warrior, because of its solid sturdy looks, Warrior is also

becoming quite a rage with the young boys and men. The product line is available

from Rs. 685-1195 and sells 4, 00,000 pairs annually.

Windsor provides casual and formal shoes for the young executives in the age

group of 21 to 40 years. This brand caters to the need for power dressing for the

21

young executives and allows the busy executive to make a statement in power

dressing, which is as much at ease in the boardroom as in the cocktail lounge.

The idea is to be comfortable wearing these attractive leather formal shoes over

long periods every day, in keeping with the hectic lifestyles today. Over 750,000

pairs of Windsor are produced annually in the price range of Rs. 895 to Rs. 1999.

Windsor truly believes

“What’s life without a little comfort?”

Tiptopp caters to providing comfortable and fashionable women’s slip-ons and

sandals. This range is synonymous with comfort, durability and neat styling.

Targeted at ladies in the age group of 24-40 years, this range sells 7, 50,000 pairs

annually. Available in the price range of Rs. 325 to Rs. 550.

MARKETING: - BASIC FUNDAMENTALS

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MARKETING

Marketing is a social and managerial process by which individuals and groups

obtain what they need and want through creating, offering, and exchanging

products of value with others.

“Philip Kotler”

This definition of marketing rests on some core concepts. These are – needs wants

demands, products (Goods, Services and Ideas), values, cost, satisfaction,

exchange, transaction, relationship, and networks, markets, and marketers.

Marketing is a process of exchanging products of value with others with giving

each of them maximum benefit. Marketing concept is a business philosophy that

makes waves during 1950’s. The marketing concept holds the key to achieving

organizational goals consists of being more effective than competitors in

integrating marketing activities toward determining and satisfying the needs and

wants of target markets

The marketing concept has been expressed in man colorful ways.

“Meeting needs profitably.”

“Find wants and fills them.”

“Love the customer, not the product.”

“Have it your way.”

“You’re the boss.”

“Putting people first.”

“Partners for profit.”

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INTEGRATED MARKETING

When all company’s department work together to serve the customer’s interest, the

result is integrated marketing. Integrated marketing works on two levels. First, the

various marketing functions like sales force, advertising, product management,

marketing research and so on to work

Together. Second marketing must be well coordinated with other company

departments. Marketing does not work when it is merely department. It works only

when all employees appreciate their impact on customer satisfaction.

SOCIETAL MARKETING

The societal marketing concept holds that the organization’s task is to determine

the needs, wants, and interests of target markets and to deliver the desired

satisfaction more effectively and efficiently than competitors in a way that

preserves or enhances the consumer’s and the society’s well being.

The societal marketing concept calls upon marketers to build social and ethical

considerations into their marketing practices. They must balance and juggle the

often conflicting criteria of company profits, consumer wants satisfaction and

public interest.

CONSUMER BEHAVIOUR

24

Now consider the purchase of a quart of orange juice. You purchase this product

when you do your grocery shopping once per week. You have a favorite brand of

orange juice and usually do your grocery shopping at the same store. When you

buy orange juice, you always go to the same place in the store to pick it up, and

25

Consumer Buying Behavior

The decision processes and acts of final household consumers associated

with evaluating, buying, consuming, and discarding products for personal

consumption.

Consider the purchase of an automobile. You generally will not consider

different options until some event triggers a need, such as a problem

needing potentially expensive repair. Once this need has put you “on the

market”, you begin to ask your friends for recommendations regarding

dealerships and car models. After visiting several dealerships, you test

drive several models and finally decide on a particular model. After picking

up your new car, you have doubts on the way home, wondering if you can

afford the monthly payments, but then begin to wonder if instead you

should have purchased a more expensive but potentially more reliable

model. Over the next five years, the car has several unexpected

breakdowns that lead you to want to purchase a different brand, but you

have been very happy with the services of the local dealership and decide

to again purchase your next car there.

In this particular case, the following generic model of consumer decision-

making appears to hold:

========> Need recognition

=========> Information search

==========> Evaluation of alternatives

==========> Purchase decision

==========> Post purchase behavior

never notice what other brands are on the shelf or what the prices of other brands

are. How is it that the generic model above works differently in this second

scenario? Why does it work differently? Why would we generally need the

ministrations of a sales person in the sale of a car, but we generally do not need the

help of a salesperson in the purchase of orange juice?

How can the marketer of orange juice get a consumer like you to exert more effort

into information search or to consider alternative products? How is it that the

marketer of your brand got you to ignore alternative competing brands? What is

the involvement of salespeople in sales promotions that might be associated with

products such as orange juice?

Consumer behavior researchers are not so interested in studying the validity of the

above generic model, but are more interested in various factors that influence how

such a model might work and what are the factors, which influenced consumer-

buying behavior.

INFLUENCES ON THE GENERIC MODEL

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External

Group

- e.g., cultural, family, reference group influence Environmental / situational

- e.g., time of day, temperature and humidity, etc.

Internal

Lifestyle, personality, decision-making process, motivation etc.

GROUP INFLUENCES ON CONSUMER BEHAVIOR

Culture

The set of basic values, beliefs, norms, and associated behaviors that are learned by

a member of society.

Note that culture is something that is learned and that it has a relatively long lasting

effect on the behaviors of an individual. As an example of cultural influences,

consider how the salesperson in an automobile showroom in the U.S. must react to

different couples that are considering the purchase of a car. In some subculture, the

husband will play a dominant role in the purchase decision; in others, the wife will

play a more dominant role.

Social Class

A group of individuals with similar social rank, based on such factors are

occupation, education, and wealth.

Reference Groups

Groups, often temporary, that affects a person’s values, attitude, or behaviors.

E.g., your behaviors around colleagues at work or friends at school are probably

different from your behaviors around your parents, no matter your age or stage in

the family cycle.

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Opinion leader

A person within a reference group who exerts influence on others because of

special skills, knowledge, personality, etc.

Family

A group of people related by blood, marriage, or other socially approved

relationship.

INTERNAL INFLUENCES ON CONSUMER BEHAVIOR

Personality

A person’s distinguishes psychological characteristics that lead to relatively

consistent and lasting responses to stimuli in the environment.

We are each unique as individuals, and we each respond differently as consumers.

For example, some people are “optimizers” who will keep shopping until they are

certain that they have found the best price for a particular item, while other people

are “satisfiers” who will stop shopping when they believe that they have found

something that is “good enough. “If you are a salesperson in a retail shoe store,

how might you work differently with these two personalities?

Lifestyle and Psychographics

Lifestyle is a pattern of living expressed through a person’s activities, interests, and

opinions.

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Psychographics is a technique for measuring personality and lifestyles to

developing lifestyle classifications.

Motivation: multiple motives

Consumers usually have multiple motives for particular behaviors. These can be a

combination of:

Manifest

Known to the person and freely admitted

Latent

Unknown to the person or the person

Involvement has to do with an individual’s

Intensity of interest in a product and the

Importance of the product for that person

The purchase of a car is much more risky than the purchase of a quart of orange

juice, and therefore presents a higher involvement situation. This modifies the way

that the generic model works.

As involvement increases, consumers have greater motivation to comprehend and

elaborate on information salient to the purchase.

TYPES OF CONSUME PROBLEM-SOLVING PROCESSES

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Routine problem

Used when buying frequently purchased, low cost items

Used when little search/decision effort is needed

E.g., buying a quart of orange juice once per week

Limited problem solving

Used when products are occasionally purchased

Used when information is needed about an unfamiliar product in a familiar product

category

Extended problem solving

Used when product is unfamiliar, expensive, or infrequently purchased

E.g., buying a new car once every five years

POST-PURCHASE CONSUMER BEHAVIOR

Satisfaction

After the sale, the buyer will likely feel either satisfied or dissatisfied. If the buyer

believes that he received more in the exchange than what was paid, he might feel

satisfied. If he believes that he received less in the exchange than what was paid,

then he might feel dissatisfied. Dissatisfied buyers are not likely to return as

customers and are not likely to send friends,

relatives and acquaintances. They are also more likely to be unhappy or even

abusive when the product requires post-sale servicing, as when an automobile

needs warranty maintenance.

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PROBLEM FINDINGS

Introduction

We started our business in Karnal (Haryana) way back in 1944. We made a

beginning as a small retailer sourcing shoes from small local manufacturers. In

1948, we started manufacturing our own footwear.

However, Lakhani as a brand name came into existence in 1954. We catered

mostly in domestic market in neighboring areas like Haryana, Himachal Pradesh,

Punjab and some parts of Pakistan till 1964. Thereafter, export market caught our

fancy and by 1968, we completely switched onto exports. And till 1983, we were

100% exported oriented unit in terms of sales. In 1983, we turned our attention

towards domestic market again. We introduced a new technology of PU

(Polyurethane) based sole shoes in the Indian market as we were exporting these

kinds of shoes to our international customers. At the same time, the second

generation of our family also entered the business.

Target Market

the premium segment does not offer volumes. The market up there is very small

and there are too many players in fray. Therefore, in order to grow by gaining in

volumes, we have moved towards catering to the middle and upper-middle class

segments, which offer a far higher off-take of footwear.

Our advertising and promotion strategy over the years has consistently aimed at

positioning Lakhani as a complete family footwear brand. Initially, we focused on

the upper class segment as our core target market. Later on, we shifted our

attention towards the middle and upper-middle class segment also.

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Positioning

Till few months back, the customers perceived Lakhani as a comfortable, durable

and great value for money brand. We are trying to enhance that perception by

positioning Lakhani as a more vibrant and contemporary brand too. The new

positioning does not mean that we are moving away from the comfort, durability

and value planks. Those will always be there associated with Lakhani. So Lakhani

as an umbrella brand has become more fashionable in tune with the changed

market needs now.

Range offered by Lakhani

In 1991, we took a stock of the long-term view of our business and marketing

strategy. Thereafter, the Lakhani product range was divided into number of

categories with their own sub-branding under the umbrella Lakhani brand .'Force

10', fashionable sports shoes (not performance sports shoes) was the first sub-brand

launched by us. We have 'Fortune' for men's Formal and 'Windsor' for executive

range mostly for the people who are on the move. So we have three ranges in men's

shoe category. We have 'Coolers' which is a sandal for both men and women. For

women, we have 'Senorita' for more fashion conscious women and 'Tip-Top' for

married women who looks for more comfort. Then we have 'Gliders' which caters

to the entire family from 4-years to 50-years plus. It is positioned as a young brand.

In Gliders, we have three categories - Glider C for children, Glider P for teenagers

and Gliders A for adults. We also have 'Foot Fun' for children and 'Prefect' which

is children's school shoe. We also have 'Warrior' which is a shoe for industrial

applications with a safety benefit used primarily in factories and army. Besides

these 10 sub-brands, we also have a brand called A-Ha which is a hawai chappal,

catering to the lower class segment market. But A-Ha is not a sub-brand of

Lakhani as we do not cover it under our branding.

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Market Share of Lakhani

In terms of number of pairs, it is very difficult to analyze because 75% of the

industry is in the unorganized sector. But according to certain Govt. agencies,

India produces about 1.1 billion pairs of footwear’s. In value terms, the industry

size should be around Rs.8,000 crore including exports. In the organized sector, we

are second to Bata with a turnover of about 350 crores.

How Lakhani is Different

I would say the brand personality of Lakhani is different from other brands like

Lakhani, Action etc. Unlike others, we are catering to the entire family.

Bata is the only other company which offers the complete family range of footwear

like us. Other players are catering to certain niche markets only such as Lakhani is

more into rural segment or Action which is more into teenagers and kids only. So

Lakhani is catering to a very large segment of the market through its wide range of

sub-brands whereas others are single brand entities.

Role of Advertising

We strongly believe that advertising for a brand is the fuel for the growth of the

company. See, consumers react to the advertising which results in a demand for a

brand translating into sales for the company. Thanks to our Advertising

consistently over the years, Lakhani has been perceived as a brand which is young,

modern and offering new and international range of footwear’s. But in the last two

years or so, we felt that ads irrespective of the TV, press or outdoor mediums were

not adding any value so we toned down our ad spend.

Effect of Less Advertising

33

Yes certainly, low visibility does affect the brand's share in the consumer's mind.

But business was low and we tuned down the advertising to a minimal level.

However, we took stock of the situation and as business has improved, we have

again upped our ad budget. This financial year we plan to spend around Rs.12

crore on our advertising. We have changed our ad strategy also by opting for

advertising in the peak seasons only instead of advertising through out the year.

Even our advertising creative’s have also undergone major change. Our ad

campaign has become more youthful and catchy communicating the new

fashionable appeal of Lakhani brand in a more effective manner.

Brand Loyalty

We fare very well on the loyalty parameter among the customers, however, as I

said earlier, in the last few years brand loyalty among Indian consumers has eroded

and foreign brands/products are perceived to be better than Indian products/brands.

But our experience shows that customers are now realizing that among the

footwear products/brands Lakhani is still the best brand in the country and Lakhani

customer loyalty is further improving.

Channels

34

Well, we sell through 350 exclusive Lakhani showrooms and more than 4000 multi

brand stores spread all over India. But the retail stores are neither owned nor

managed by us.

Future Plans

I think Indian consumer is now more aware of international trends and shopping

standards as our markets are becoming an important part of the global market.

Being associated with exports for last more than 40 years, we have an advantage of

providing international quality products to Indian consumers and in terms of

technology and styling, we are not behindnternational trends. However, we do not

provide international shopping experience to Indian consumers and therefore in the

last 3-4 years, we have made conscious efforts to upgrade the standards of our

retail outlets and we shall continue to do so to make the shopping enjoyable for the

Indian consumers. Moreover we shall continue providing the latest high quality

products to Indian consumers at affordable prices, which are not only comfortable

but durable too.

Objective of research

35

My project objective was to analyze customer’s satisfaction level about Lakhani’s

various products. My project topic was “Market potential and customer

perception about Lakhani shoes”.

A questionnaire was developed as the key research instrument. Questions related to

all aspect of company and product like quality, price, value for price, performance

etc was covered.

Approximately 100 customers were surveyed of Delhi for their opinion and

response about lakhani shoes. Secondary data from company’s brochure, website,

and journals were also taken. Dealers of Karnal and Kurukshtra were also

interviewed to get their opinion about lakhani shoes Ltd.

Major findings include that although company holds a very good reputation in the

market, it failed to satisfy customers on many aspects. Company is leveraging its

brand equity in the market. Although the company offers very good product quality

but slightly on a higher price, And designs of footwear are not up to the mark.

Company is facing stiff competition from Action, woodland, Relexo, Lakhani and

foreign brands like Reebok, Adidas, Nike, Bata, Red tape, Red chief and Lee

cooper. Apart from that company can indulge in promotional activities in rural

areas where market potential is really good.

Scope of the study

36

Area: Different areas of Delhi had been covered during the study.

Time: The study had been done between the last week of April and the

first week of June of 2004.

Limitations

Every project comes with a new challenge. And what is a challenge without

difficulties. I also faced many difficulties while doing the project. And those

situations gave me a learning, which would help me throughout my life.

1. I had to study the choice criteria to decide upon a branded shoe and accordingly

prepare the competitive update, i.e. Lakhani shoes VS other companies. I have got

25 days to complete the study. So, the time period was not such to have a

comprehensive analysis.

2. Due to paucity of time, the sample size taken was small (100).

3. The sample may not give true picture about the entire population.

4. The result may have been influenced by the composition of the sample and use of

non-probabilistic sampling technique.

5. The duration of the project was entirely the summer period. The scorching heat of

Delhi Summer made my fieldwork physically demanding. The people were

37

generally very busy and so, it was really very difficult to get time from them to fill-

up the questionnaires. Also, they were very reluctant to provide information which

was very necessary for the purpose of the study. And those situations gave me a

learning, which would help me throughout my life.

6. I had to study the choice criteria to decide upon a branded shoe and accordingly

prepare the competitive update, i.e. Lakhani shoes VS other companies. I have got

25 days to complete the study. So, the time period was not such to have a

comprehensive analysis.

7. Due to paucity of time, the sample size taken was small (100).

8. The sample may not give true picture about the entire population.

9. The result may have been influenced by the composition of the sample and use of

non-probabilistic sampling technique.

10.The duration of the project was entirely the summer period. The scorching heat of

Delhi Summer made my fieldwork physically demanding.

11.The people were generally very busy and so, it was really very difficult to get time

from them to fill-up the questionnaires. Also, they were very reluctant to provide

information which was very necessary for the purpose of the study.

RESEARCH METHODOLOGY

38

MARKET RESEARCH METHODOLOGY

The methodology adopted for this market research is explained below:

Defining the research problem & objective

Developing the research plan for collecting information

Implementing the research plan- collecting & analyzing data

Interpreting & reporting the findings

The research methodology adopted was Descriptive in nature. The cross-sectional

study has been used here. Information has been collected from a given sample of

population only once. Also, the cross-sectional study is single in nature, because

only one sample of respondents is drawn from the target population.

Data Collection

We have used a formal questionnaire to collect data. The survey had been done in

two methods: telephonic interviewing and personal interviewing. Telephonic

39

interviewing was traditional in nature and in-home personal interviewing was

done.

Questionnaire

We have used a questionnaire for data collection. The questionnaire consists of

questions that are judicious mix of both close-ended and open-ended questions. As

the study was to study the choice criteria to decide upon a company for shoe

purchase and accordingly prepare the competitive update, i.e. Lakhani Vs others,

hence open-ended questions were necessary to get the inner information. Still, we

made it as simple as possible.

Sampling Technique

The sampling technique used was a mix of Convenient. That is, we used no

probability sampling technique in which we chose a sample of convenient

elements.

Sample Design

Sample Size: 400

Execution: The approach as straight forward in the Shoe store. I approached the

customers directly and requested them to fill the questionnaire.

40

DATA ANALYSIS & FINDINGS

RESULT ANALYSIS

The result obtained and data analysis is based on the questions framed in the

questionnaire. These questions are related to the attributes, characteristics and

performances of Lakhani shoes. Following are the questions used in deriving the

customer satisfaction level.

Q1: What were the reasons for selecting Lakhani?

Q2: Rating of overall attributes of the Lakhani like

Appearance

Look

Color

Quality

Usage

Q3: Rating of various characteristics of Lakhani shoe like

Price

Durability

Reliability

Efficiency

Performance

Dealers behavior

41

Q4: Are the customer satisfied with the efficiency?

Q5: Are the customer satisfied with after sales services?

Thus keeping all the above attributes in mind a sample of 400 customers was

selected and then intervened personally. The result has been analyzed and

tabulated from the next page.

Reasons for selecting Lakhani.

In the questionnaire it was asked to the customer for what reasons they have

purchased Lakhani .The reasons may include price, reputed company, quality,

utility, design. With the following graph we can obtain the results.

Qua

lity

Util

ity

Rep

utat

e...

Des

ign

Pric

e

0

5

10

15

20

25

30

35

4039

25

19

9 8

42

Thus it has been observed that most of the customer’s have purchased Lakhani

because of better quality. The percentage of customer bought Lakhani because of

better quality is39%.Utility is at the second priority among the customer surveyed

with 25%.The percentage of customers who purchases Lakhani because of reputed

company is19%.Price has been given least priority with 8% only .Thus the

efficiency is the main criteria for the selection of Lakhani.

Customer opinion about the overall attributes of the Lakhani

With this question I come to know about customer’s opinion regarding various

attributes of the tractor like appearance, color, quality and usage.

1. APPEARANCE

The appearance of the shoe is based on the two derivates that is interesting and

boring .The customers are required to give their opinion on these derivates

whether the appearance is interesting or boring. This can be derived from the

following graph

Appearance is very interesting while 40%finds it fairly interesting. Only 7%&3%

of customers finds it very boring and fairly boring respectively .Only 3%of the

customers finds it neither boring nor interesting .So it can be concluded that almost

all of the customers are satisfied with the appearance of the shoes.

2. COLOUR COMBINATION

With the help of this attribute we can analyze whether the customer are satisfied

with the color of Lakhani shoes produced by the company. Are they satisfied with

the color combination of the shoe they have purchased? This attribute is based

43

upon two criteria i.e. suitable and unsuitable. This can be analyzed with the help of

the histogram. Suitable and unsuitable.

Ve

ry s

uit

ab

le

Fa

irly

su

ita

ble

Ne

ith

er

Fa

irly

un

su

ita

ble

Ve

ry u

ns

uit

ab

le

0

5

10

15

20

25

30

35

40

33

37

1310

7

44

Very interesting47%

Fairly interesting40%

Neither3%

Fairly boring3%

Very boring7%

From the above histogram we conclude that majority of customers are satisfied

with the color combination of their shoe.33% of customers found

it very suitable whereas 37% of customer found it fairly suitable.13%of the

customer found it neither suitable nor unsuitable.10% found it fairly unsuitable and

7% found it very unsuitable.

3. QUALITY

The quality of the shoe can be determined on the bases of the two derivates i.e.

good and bad. The customers are asked to give their opinion whether the Lakhani’s

quality is good or bad. This can be analyzed with the help of the following pie

chart.

Very good33%

Fairly good37%

Neither14%

Fairly bad10%

very bad6%

45

From the above graph it is concluded that maximum number of customer are

satisfied with the quality of their shoe. 70%of the customer found the quality of

their shoe, good in which 33%found the quality very good

Whereas 37% found quality fairly good.14%found quality neither bad nor

good.10%of the total customer found quality fairly bad nor 6%ofthe customers

found quality very bad.

Rate the characteristics of Lakhani

It was asked by the customer to rate the various characteristics of Lakhani on the

scale of satisfied, average and dissatisfied. The characteristics are as follows:

Price

Durability

Performance

Efficiency

Reliability

Dealer’s behavior

The above attributes are the main tools in analyzing the satisfaction level of the

customer .with the help of chart and the graphs I have shown what the

customers feel about shoe. In the upcoming pages each and every attribute is

evaluated with the help of graphs.

1. PRICE

Price is one of the main element of marketing, one always keep in mind about the

price while purchasing the product. In the same way the

46

company should also keep in mind the price of that product and quote the price of

the product in such a way so that the customer easily accept it. With the help of the

following we can find whether Lakhani has succeeded its customer with its price

tag

Satisfied40%

Average13%

Dissatis-fied47%

From the above graph we can see that only 40% of the customers are fully satisfied

with the price of the tractor while 13% find it average. Majority of Customer i.e.

47% are not satisfied with the price. The majority of

Customers are dissatisfied because the customers are mainly from rural markets

and they find it quite hard to spend such an amount on the shoe. So it is difficult

for them to afford the heavy prices of the shoe.

47

2. DURABILITY

Durability of the shoe can be analyzed on the bases of the three derivates i.e.

satisfied ,average and dissatisfied .with the help of the following graph we can find

out whether the customer are satisfied with the durability of the shoe or not.

Sa

tisfie

d

Av

era

ge

Dis

sa

tisfie

d

0

10

20

30

40

50

60

70

8076

13 11

From the above graph we conclude that 76% customers are find the durability of the shoe

satisfactory while13% customer finds the durability average .Only 11% customers are

dissatisfied with durability.

48

3. RELIABILITY

Reliability of the shoe should also be determined while analyzing the satisfaction

level of the customer. This is also based on three derivatives as the above attributes

are .with the help of the following graph we can find out whether the customers

find

Lakhani

reliable

or not.

From

the above graph we may conclude that 60%of the customer find the Reliability of

the shoe satisfactory while 25% of the customer find the reliability of the shoe

average. Only 15% of the customers are dissatisfied with reliability of the shoe.

4. EFFECIENCY

49

Satisfied60%

Average25%

Dissatisfied15%

One of the characteristics of the any durable product is its efficiency so is in a shoe

.It was asked to the customers whether the shoes are efficient or not Efficient In this

case also it can be analyzed on the bases of three derivatives i.e. satisfied, average

and dissatisfied. With the help of the following graph we can find out what

customer say about its efficiency.

From the above graph we may conclude that 48% customer find the efficiency of

the shoe satisfactory while 37% find it average. Only 15% customers are

dissatisfied with the efficiency.

5. PERFORMANCE

Performance of the shoe should also be measured while analyzing the satisfaction

level o the customer .With the help of the following graph we may find out

whether the customers are satisfied with Lakhani’s performance or not.

50

Satisfied48%

Average37%

Dissatisfied15%

From the above

graph we may conclude that majority of the customer are satisfied with the

performance of the shoe. The percentage of the satisfied

customer is 52%.38% customer found performance average whereas only 10% of

the customers are dissatisfied with the performance

6. DEALER`S BEHAVIOUR

One of the main components while determining satisfaction level is dealer’s

behavior .Whether the dealer is maintaining proper relation or not. From the

following graph we can find out whether retailers are satisfied with the dealer or

not

51

Satisfied Average dissatisfied0

10

20

30

40

50

6052

38

10

20%

10%

70%

Satisfied

Average

Dissatisfied

From the above graph we may conclude that majority of the retailers are

dissatisfied with the dealers behaviour.20% retailers find the behavior satisfactory.

while10% finds it average but 70% of the retailers are dissatisfied with the dealer’s

behavior.

ADVERTISING

Print CampaignLakhani has tried to project itself as a brand of style. They made

print campaigns with powerful one liners targeting each segment. For example

in the first print campaign shown above they have targeted the youth in the age

group of 14-24. They have targeted the youth in that phase of life in which they

are undecided about where their life is heading, where their careers are headed

and where they

52

In the second print campaign they have used stylish models such as Nethra

Ranganathan to represent style and fashion. They have targeted the urban Indian

woman who is style and fashion conscious. They have also cited the importance of

the correct kind of footwear.

Lakhani has targeted various segments like the school college going youth, the

working mothers, the stylish urban woman and children. In the above print

campaigns they have targeted children and the stylish office going male. They have

portrayed the child as having her own identity. They have also portrayed the urban

Indian working male as stylish and a winner in all he does. They have very

beautifully used the psychographics of the segments.

In each of their print advertisements they have portrayed Lakhani as a brand used

by individuals having a separate identity, whether it be the identity of a child or an

urban Indian youth. Punch lines like ‘Competition, Winning Edge, I have it all’,

‘Peer pressure? Boys? Every Step I take is very much me’ or ‘Daddy’s eyes,

Mummy’s nose, My shoes are just my own’.

ADVERTISING & PROMOTION

The marketing division takes aggressive promotional exercise throughout the year.

Special marketing communication mix are devised for special occasions like

Diwali, Id, Christmas etc. company promotes its products by adding value to the

lifestyle and a part of the ambitions. It aims at satisfying consumer’s esteem and

self-actualization needs so that consumer can

53

Relate themselves with the company. However, for promotion of its product, the

main instrument of the company is its “SHOWROOM POLICY”. This policy aims

at reaching more and more customers through Lakhani showroom

54

55

What is a customer?

A customer is the most important person ever in this office…….in

person or by mail.

A customer is not dependent on us ……… we are dependent on

him.

A customer is not an interruption of our work…… he is the purpose

of it. We are not doing a favor by serving him……. He is doing us a

favor by giving us the opportunity to do so.

A customer is not someone to argue or match wins with. Nobody

ever wins an argument with a customer.

A customer is a person who brings us his wants. It is our job to

handle them profitably to him and to ourselves.

Lakhani Retail Revolutions Limited

In the elite shopping avenues of fashion capitals "Revolutions" has begun its walk.

The fashion accessory and footwear stores have begun operations in Chennai,

Bangalore , Mumbai, Kolkatta, Hyderabad, Indore, Lucknow, Delhi & NCR and

Pune with upcoming Revolutions Stores in Noida, Chandigarh and

Ahmedabad.These are company managed and owned outlets where the emphasis is

to deliver high fashion to the customers backed by quality service making it a

delightful shopping experience

56

SWOT ANALYSIS

STRENGTH

Established brand name.

Wide Dealers network.

Bondage between company and employees.

Customer’s faith.

Leaders in quality

Economies of scale

Infrastructure

WEAKNESS

After sales service like replacement of shoe is very poor.

Price of products offered is not satisfactory.

Company representative doesn’t visit dealers frequently.

Sustained growth rate

OPPURTUNITIES

Have the opportunity of grabbing the market share through launching of new

& wide range of products with new designs.

Wide market in low price shoes as most population is financially weak in

our country.

Existing successful products of company.

Increase sales by giving incentives to sales officers and dealers.

57

Develop market sensitive product line.

Globalization

THREATS

Cut throat Competition

Due to lack of good design of products and good after sales service the

company can lose their customer to other companies who provide good

quality of product and after sales service.

Competition for resources

New entries in the market

Unforeseen conditions

LEARNING

My summer training at Lakhani shoes was a great learning experience. I was given

a project on market research and sales. The project itself boasts me of a lot of

learning. I learnt how to deal with people, how to convince them to give time. I had

to give the impression that I was doing the project for academic purpose. So, it was

not actually of any help to the people. So, I had to adopt different techniques at

different places to get positive responses. Our strategy making skills were honed in

this manner. Moreover the scorching heat sometimes made it almost impossible to

carry out the fieldwork. Latter on we started looking out for the customers at the

evening, so that I can easily ask them to fill the questionnaire.

Another thing of great importance that I learnt during the course of the project is

patience. As a researcher, the company as well as the respondent was my customer.

I learnt that to deal with customers I need a great deal of patience. And it helps a

58

lot to have patience while interacting with others. It shows through professionalism

and makes a good impression.

Last but not the least, we have also learnt about the corporate culture. It was a great

experience. It was a fabulous experience interacting with all the employees of the

compa

MARKET SEGMENTATION

Men's Range

ENGLISH SYSTEM

English sizes are measured in inches. For e.g. size 8 would mean the foot measures

11 inches. Between two English sizes the difference in foot length is 1/3rd of an

inch.

FRENCH SYSTEM

59

French sizes are measured in centimeters. For e.g. size 8 would mean the foot

measures 27.91 cms. Between two French sizes the difference in foot length is

2/3rd of a centimeter.

CIS/MONDOPOINT SYSTEM

Midpoint sizes are measured in millimeters. For e.g. size 8 would mean the foot

measures 280 mm. Between two Midpoint sizes the difference in foot length is 10

millimeters.

AMERICAN SYSTEM

Add ½ sizes to English sizes to arrive at the American size. For e.g. English size 8

equals American size 8½

The table given below enables you to find out the length of your foot in inches,

centimeters or millimeters by tallying with the corresponding International sizes.

For e.g. English size 8 is equal to French size 42 & CIS size 280 which would

mean the foot measures 11 inches or 27.91 centimeters.

ENG INCHES FRENCH CMS. CIS MMS.

60

4 9 2/3 37 24.53 245 245

5 10 38 25.38 250 250

6 10 1/3 39-40 26.32 260 260

7 10 2/3 40-41 27.07 270 270

8 11 42 27.91 280 280

9 11 1/3 43 28.76 290 290

10 11 2/3 44-45 29.61 300 300

11 12 46 30.45 305 305

12 12 1/3 47 31.30 310 310

Women's Range

61

ENGLISH SYSTEM



inch.

FRENCH SYSTEM






measures 250 mm. Between two Midpoint sizes the difference in foot length is 10

millimeters.

AMERICAN SYSTEM

Add 1½ size to English sizes to arrive at the American size. For e.g. English size 5

equals American size 6½.

62




mean the foot measures 10 inches or 25.38 centimeters.


2 9 34 22.84 230 230

3 9 1/3 35-36 23.68 240 240

4 9 2/3 37 24.53 245 245

5 10 38 25.38 250 250

6 10 1/3 39-40 26.22 260 260

7 10 2/3 40-41 27.07 270 270

8 11 42 27.91 280 280

9 11 1/3 43 28.76 290 290

10 11 2/3 44-45 29.61 300 300

Teenager's Range

63

ENGLISH SYSTEM



inch.

FRENCH SYSTEM






measures 250 mm. Between two Mondopoint sizes the difference in foot length is

10 millimeter

Kid's Range

ENGLISH SYSTEM

64

English sizes are measured in inches. For e.g. size 10 would mean the foot

measures 7 1/3 inches. Between two English sizes the difference in foot length is

1/3rd of an inch.

FRENCH SYSTEM





Midpoint sizes are measured in millimeters. For e.g. size 10 would mean the

millimeters. foot measures 190 mm. Between two Midpoint sizes the difference in

foot length is 10.




mean the foot measures 7 1/3 inches or 18.61 centimeters.


6 6 23 15.22 150 150

7 6 1/3 24 16.07 160 160

8 6 2/3 25 16.92 170 170

9 7 26-27 17.76 180 180

65

10 7 1/3 28 18.61 190 190

11 7 2/3 29 19.45 195 195

12 8 30-31 20.30 200 200

13 8 1/3 32 21.15 210 210

1 8 2/3 33 22.00 220 220

News and Cases

Lakhani wants foreign link

Lakhani Retail Revolution, subsidiary of leading footwear manufacturer, Lakhani

Shoes, is looking for a foreign partner to expand locally and overseas.

Lakhani Shoes to set up subsidiary in Dubai

MUMBAI: Lakhani Shoes Ltd on Monday said that it would set up a wholly

owned subsidiary in Dubai for expanding the overseas presence of the company.

Pantaloon to step into footwear retailing with Lakhani

PANTALOON Retail (India) Ltd (PRIL) and Lakhani Shoes Ltd have entered into

a joint venture to set up a chain of stores for footwear retailing and other

accessories.

From shoes to ceramics: Lakhani moves on

From leather to ceramics -- is there a link? You wouldn't think so, but Adarsh

Gupta, executive director, Lakhani Group, believes that all manufacturing

66

activities are somewhat similar; since both ceramics and shoes cater to the lifestyle

segment there is a common thread, he says.

Lakhani has got into the production of ceramic sanitary ware with trial production

out last month. Rs 50 crore (Rs 500 million) in the next stage -- a lot will depend

on how the company markets its products and what is the kind of advertising it

wants to go in for.

These questions should be answered once the new business shapes up.

Lakhani White ware is being set up with an investment of Rs 50 crore,

expandable to more than Rs 100 crore in three years

Ceramic vitreous sanitary ware products are being manufactured in a 72,000

square meter-plus plant in Neemrana

The trial production at the plant commenced on September 14, 2005 and the

final products are expected to reach the market in the ongoing festive season

Lakhani has a targeted turnover of Rs 200 crore from the project in the fifth

year of commercial operations

According to estimates drawn up by Development Panel of Ceramics, the

demand for ceramic sanitary ware is approximately 1,60,000 tones per

annum, expected to rise to 2,58,000 tones by 2007

Pearl Academy, Lakhani Shoes tie up

PEARL Academy of Fashion and Lakhani Shoes today announced a joint

collaboration for design talent promotion and Continuum 2003 - the 10th

anniversary celebrations of Pearl Academy

LAKHANI LATEST ACHIEVMENTS

67

Lakhani gets the Amity Corporate Excellence Award

Amity International Business School has accorded a special honor to Lakhani

Shoes Ltd. for outshining the competition with their distinct vision, innovation,

competitiveness and sustenance.

Lakhani Shoes wins the 2005 – 2006 Export Awards

The Council for Leather Exports has presented the plaque for non leather footwear

exports as well as the brand promotion award for non leather footwear to Lakhani

Shoes Ltd.

The Revolutions Fashion Week

The Fashion week has a new venue. At the Revolutions Stores across the country

the fashion week with a difference will unfold. In a unique offer some of the

Footwear that will be showcased for the first time in India.

Things getting back to normal at Lakhani

These have been trying times for all members of the Lakhani family. But it is

during times like these that our commitment to each other is proven. After all there

is so much that we have achieved target.

Pune in the grip of Revolutions

68

Revolutions Store, the flagship of Lakhani Retail Revolutions Ltd., sparked off a

new era in the country’s fashion scene while ushering in a novel trend in fashion

retailing opens a retail outlet in PUNE.

New Lakhani Polyurethane Plant coming up at Roorkee in Uttaranchal

Lakhani Shoes is ramping up capacity to meet the demands of Reebok and Nike in

the domestic market and Wal-Mart in the US market. Towards this end a new plant

is coming up at Roorkee in Uttaranchal.

Udyog Rattan Award for Mr. Adesh Gupta

Institute of Economic Studies presented Mr. Adarsh Gupta, CEO of Lakhani Shoes

Limited with the Udyog Rattan Award at a special function at the India Habitat

Centre, Lodhi Road, and New Delhi on the 10th.

Lakhani at Lakme Fashion Week, 2006

Lakhani GenNext Show

Lakhani Shoes will be the title sponsor for the “GenNext Show”, a unique concept

where six promising designers will showcase their collections at the inaugural.

Revolutions store opened at TDI Mall, Rajouri garden, New Delhi on

March 3, 2005

69

The latest Revolutions Store opened at TDI Mall, Rajouri Garden, and New Delhi

on March 3, 2006 with a spectacular range of new designs that includes the much-

coveted ‘F’ collection.

Lakhani –Turning Brand India into a Global Fashion Statement

Incorporation of Lakhani Foot Fashion (U.A.E.) L.L.C., 100% subsidiary

company at Dubai.

Revolutions Store opened at Shipra Mall, Ghaziabad on January 15,

2006

Revolutions store opens in Indore

The Revolutions Rage Continues Revolutions Store, the flagship of Lakhani Retail

Revolutions Ltd., sparked off a new era in the country’s fashion scene while

ushering in a novel trend in fashion remark.

Montage wins "Image Fashion Awards 2004"

It is only natural that a magazine that is all about fashion and style facilitates the

very best through awards. But it is also equally nerve wrecking to guess who the

winner would be. Such was the montage.

Lakhani Shoes to consider Bonus for shareholders!

The Board of Directors at Lakhani Shoes Limited meet on 18th July, 2005 to take

on record the Un-audited results of the 1st Quarter of June, 2005.

70

MAJOR FINDINGS

The survey conducted has put forth many interesting findings in the market. Some

of these are discussed as under:-

It has been observed that most of the customers were not aware with the

quality and features of the product.

New entrants in the market are pushing their product very aggressively.

There marketing campaigns are very much effective and attractive.

71

Customers usually add his shoe with his lifestyle as now they don’t want to

purchase one shoe for all the occasion.

Design of Lakhani’s product is not that much effective. People find that

other competitor’s design and color combination is quite impressive.

Most of the consumers were satisfied with the product’s raw material quality

and its performance as Lakhani’s shoes are known as a durable product.

Most of the retailers were not satisfied with the dealer’s behavior. They said

that company should give emphasis on developing and managing an

efficient and broad distribution system.

According to retailers, company does not understand the importance of

distribution system. Due to that retailers are turning towards other

companies for stock to sale.

According to survey, price does not matter much while making a purchase

decision.

On the utility front, Lakhani score high. It has a very good usability.

Consumers are very much satisfied with quality of the product.

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RECOMMENDATIONS

MAJOR RECOMMENDATIONS

The survey conducted has put forth many interesting findings in the market. On the

basis of these findings we can recommend following suggestions.

The market is, by and large, unaware about the features and quality of the

products of lakhani.

A special marketing campaign should be started in the unexplored regions

where company does not have its reach.

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Company can exercise separate product mix, marketing mix and a

differentiated marketing communication mix for the marketing campaign.

The company has the option of reducing the cost of production, so that the

price sensitive consumer can also be covered by the effective marketing

strategy.

Company should concentrate more on advertisements and sales promotions

through different media.

There is enough demand in rural areas for lakhani products. After

liberalization, standard of living and purchasing power of rural people is on

the rise. There s a great scope in rural market as compared to the urban

markets because major portion of urban market is already saturated. By

adopting an appropriate rural-marketing strategy, the lakhani shoe limited

can push up sales up to a great extant.

Company’s advertisements are not very attractive. Company should make

them more interesting and effective.

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CONCLUSION

This project is based on the study of “Customer perception and market potential

about “LAKHANI SHOES”. The market of Lakhani is prosperous & customer

perception about it is good. Major findings include that although company holds a

very good reputation in the market, it failed to satisfy customers on few aspects.

Although the company offers very good product quality but slightly on a higher

price, and few problems like unattractive designs, low customer preferences in

comparison with MNC’s like Nike, Reebok, bad color combination, effective

presence only in northern part of the country are few problems with the Lakhani.

Lack of good advertising & promotional Strategies has made Lakhani to fall little

low in the number game. The company should improve the technology and

designing process according to latest fashion and trends in the apparels market.

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Company is facing stiff competition from Action, Lakhani, Bata, Red Tape, Lee

cooper Red Chief, Nike, Adidas, Reebok. Apart from that company can indulge in

promotional activities in rural areas where market potential is really good.

BIBLIOGRAPHY

Marketing management –Kotler Philip

Statistical method-Gupta S.P

Research methodology-Kothari-C.R

Footwear Digest

Footwear and leather Fashion

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World footwear

Company’s Handouts & Bulletins.

www.lakhanishoes.com

www.google.com

APPENDIX

QUESTIONNAIRE

Questionnaire

(1)What is your age?

(15-25)

(25-40)

(40-55)

(Over 55)

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http://www.google.com/

http://www.escortsagri.com/

(2)Occupation?

Student

Professional

Service man

Business

Where do you buy your shoes?

(4) What type of footwear you prefer to buy?

Leather Shoe

Sports Shoes

Sandal

Chappal

Belly

(5) Which type of shoes you prefer to buy?

Branded

Local made

(6) If branded, which brand most appeal you?

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(7) Rank these Indian brands as per your perception?

Action

Adidas

Lee cooper

SSNike

Red tape

Reebok

Bata

Lakhani

Lakhani

Woodland

(8)Rating of overall attributes of the Lakhani like

Sates

. Average unsatis

Color satis. Average unsatis

Quality satis. Appearance satis.

Average unsatis.

Look Average unsatis

Usage Price satis. Average unsatis

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Durability satis. Average unsatis

Reliability satis. Average unsatis

Efficiency satis. Average unsatis

Performance satis. Average unsatis

(9) Which is the best brand in your view?

Leather _________________________

Sports __________________________

(10)What things you see before purchasing a shoe?

Price

Quality

Brand Name

Design

Previous Experience

(11)Have you ever use lakhani footwear?

(12) What are the main things you like about lakhani?

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market analysis of footwear industry in india with ref to lakhani

Documents

casual footwear market

branded footwear market

leather footwear segment

pairs of shoes

ethnic footwear

market share

market of us

lakhani shoes