THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT,

AHMEDABAD.

Report submission

ON

CRM

A new business Initiative

The shoe Care business

SUBMITTED TO: -

Madam. Mukta Rae

SUBMITTED BY: -

Pratik Negi

Avinash Singh

Akash goswami

Jigar joshi

Sunil kumar

Harsh patel

Karan patel

Project report

ON

the business line selected

And

Innovations that we as a Group

Would like to bring in

The business.

SHOE CARE INDUSTRY:

The secondary findings from various sources

Introduction:

The shoe care market includes a wide range of individual products which are used by consumers to

clean, polish, care for, change the color of, make more comfortable, or otherwise extend the life of

various forms of footwear, including shoes and boots made from leather, suede or synthetic

materials, as well as training/sports/casual footwear.

Segmentation:

The three main categories of shoe care products are as follows:

(a) Chemical products: Comprising polishes of various types (pastes, liquids, creams etc), desalters,

color changers/dyes, soaps and shampoos, deodorizers

(b) Insoles: Comprising inserts to improve the fit or comfort of footwear, to provide an anti-slip action

(c) Accessories: Comprising shapers, laces, brushes, dusters.

Demand for shoe polish products has been stagnant, one reason being a switch from formal leather

shoes to other non maintenance material shoes, another being reduced interest on the part of

consumers in the appearance of their shoes. Overall demand is relatively insensitive to price, and

because the products are an infrequent purchase, and the items are comparatively low-priced,

consumers tend not to shop around or be sensitive to differences in price between retail outlets.

• The range of applied shoe care and shoe polish products available within India

• Consumer demand

• Brand loyalty and advertising in the market for shoe polish products

• the size and structure of the market for shoe polish products markets

• Competition and industry pricing.

[The market for applied shoe care and shoe polish products is small in comparison with many other

consumer products and one on which there is limited published information available.]

Proper functions that have to be performed for shoe care

• Remove Grass stains, Grease, Oil, Food, Tar, Dust, Paint

• Bring Shine

• Restore Gloss

• Improve the life of the footwear by nourishing the material

Secondary Research from internet+ blogs + SSI:

1.The various Shoe type material available in the market are

• Leather

• Canvass

• Smooth leather

• Suede

• Nubuck

• Nylon mesh

2. The various footwear available in the markets are:

• Maujri

• Athletic

• Skets

• Sandals

• Floaters

• Casual wear

• Slippers

• Sportswear

• Outdoor

• Hiking and trekking

• Formal wear

3. Broadly in India there are 2 types of shoe care:

• Wax polish

• Liquid polish

4. Leather industry is shifting to the non leather industry which is keeping in with the current trends

and fashions. They are maintenance free and require no shoe care.

5. Occasion when people shop most often: (In order of preference)

• Diwali and Id

• Discounts season

• They are April-March (Because of the market trends)

• Sep-Dec is the other peak season due to the festival season

• January and June are off-season

• Semi planned purchase

7. Key drivers for choice of footwear:

• Road Shops – the fashion trends and synchronism with their apparels and comfort ability.

• Branded Shops – Comfort ability and then fashion trends.

Observations:

Some crucial observation in addition

1. There were few, if any, generally perceived quality differences: a tin of black polish, for example,

would not be thought of as having any particularly high or low quality but merely as being useful in

cleaning black shoes.

2. What most of the students look out for is time convenience and are not price conscious as it is an

infrequent purchase

3. They do not lay a major stress on the packaging but the handling and designing

4. Girls do not find any need and requirement to polish their sandals but usually do just use a cloth or

home remedies

5. A very striking observation that has been made is that although that the shoe market is increasing

the shoe care market has been stagnant

What’s our business proposal for Ahmedabad which include CRM & CSR BOTH

Name of the business -- [ PAKSH – AJ ] shoe maintenance

Geographical presence -- Ahmedabad ( Gujarat)

Covered market -- 4 classes of society

Segment of market -- all 6 zones of Ahmedabad

Workers and labor force -- cobblers of all area and rag pickers ( 6 management head)

Compensation and wages -- according to standards set and plus CSR help.

Task defined and business proposal

{ Shoes + floaters + sleepers + etc } Target Market.

What is paksh—aj ?

P – Prompt service

A-- Anytime

K – Knowledge of your product

S – Serviceable

H—humble

A -- Anywhere

J—just in time

Areas covered according to the Ahmedabad geography

Lower middle class Upper middle class Middle class Niche class

maninagar

SG highway & satellite

CG road and

N-pura

Chandkheda &

D.cabin

Area – opposite the river

Vadaj +

area

132 ring

road +

area

Key salient points

1. Every area will have a governing head by any one of we team mates.

2. Personalized approach and catering needs of every area.

3. No grievances ( tagging in Mumbai dabbawala style )

4. Employing and catering to all rag pickers and cobblers.

What business lines we cater to

a> Shoe repair

b> AMC

c> Shoe maintenance

d> Jibs and heels + laces

e> Gluing stitching and nailing in

f> Base and customized shoe production.

Mode of operation

Every strategic location will have 6 vending vans

Every strategic location will have 5 place of repair with 15 hours of operations

Every cobbler will be tried to hook into the hub.

Every area will have a rag pickers as collection agents ( paid basis) for DTD collection.

Real time repairs will be done at repair places.

Every place will have a complete supervisor back up

Grievance team sitting up for any customer complaint.

Level of workforce

7 team heads for every area

3 Area coordinator (For every area)

Collection agents + cobblers

Customer care unit

1 TL + 15 call center executives

DIRECTOR

Supply Chain (central

Head)

7 team heads for Every area

Main factory where all the repairs And

Maintenance work would be carried out

Charges & customer payments

Footwear charges {annual maintenance contract}

o Footwear MRP – [ > 50] – [ no AMC] o 50 – 300 [ no AMC ] We provide 1 time solution to the o 300- 1000 [ 5 rs – a month] Shoe problems o 1000- 3000 [ 10 rs – a month ] o 3000 – 10000 [ 20 rs – a month ]

Single time damages -- On the Spot payment Real time Repairs – On the Spot Payment Freight Charges – only for special footwear repairs (those require factory repairs) CSR and CRM Used

Rag picker used as collection agents 1 TL and 15 call center executives C- DBASE – customer data base maintenance and ( oracle database used for record storage) Using promotional message and sign boards for advertising Local TV and slip ins used for promotion We believe in WOM [ word of mouth publicity] – so customer is the god. Customer feedback and regular customer checks and asking customers for AMC pitching. Asking customers for continuous feedback and including customer in spreading the news.

**- this is just an overview of the business line and the proposal that we will be pitching in for the new business line. But the overall draft of the business needs a much more concrete research that needs to be

done and plus major factors that will be considered for the outlining the business and major facts that have to be scrutinized before placing it in perfections

Factors that need to be checked very minutely For laying the foundation of the business

Supply chain needs to be checked Adding people to the line who think of welfare first Asking people that this is a business for the people from the people Developing target customer base Scrutinizing and placing customer base ( call center and infra for the same) Placing infra for the SSI ( small scale industry – setup ) Infra and vehicle for the supply chain Collaborating various agents for integrating the cobblers Integrating the rag pickers and asking ( AMC for help) Developing a PAGH- rakha bazaar kind of step up Developing links with raw material supplies ( backward integration) Developing a forwards integration – for various customer base

Revenue model proposed

Defining a revenue model for our business will help us to:

1. Stay focused on a niche/middle class and a target audience

2. Give you a foundation for your product or service development plans

3. Provide a foundation for our marketing plans

4. Begin a line of credit or get a loan

5. Raise capital through initial phase and later through networks.

Our business revenue models can be broadly classified into two types.

1. Revenue from conventional b2c and c2c [if we include networking in later stages] business models. b2b [future innovations when the company reaches its peak] 2. Revenue from customer and revenue from agents if getting involved.

HEREBY We have prepared the Excel tabulation for the proposed business revenue model in

the attached file with the document

QUESTIONAIRE For primary research

Questioners for the opening of a

Revolutionary service at your door step

SHOE care in Ahmedabad and future trends

Hello sir/madam,

We are currently conducting a survey on strategies for shoe care in

Ahmedabad and future trends; on the behalf of your given information we can

understand and analyze that what strategies should be taken to make people

aware for shoe care and would help us to analyze the market needs and

demands. Therefore we request you to spare some of your precious time to

answer the following questions.

(Disclaimer: Information which is providing by you will not be utilized by any

means and will be kept discreet)

{ Demographic information }

Name- _______________________________________

AREA – ( Ahmedabad )_________________________

Age:

15 – 20

20 – 25

25 – 30

30 – 35

35 – Above

Gender: Male Female

Occupation:

Service

Business

Housewife

Student

Others

Income:

10000- 15000

15000-20000

20000-25000

25000-30000

30000- above.

Telephone no. (residence ________________),(office_______________),

(Mobile____________________)

Email ID (_______________@____________________)

1> do you care for the footwear that you use daily or specifically?

Ans. 1. YES ( ) (please tick your Preferences)

2 No ( )

3. Sometime ( )

If yes what category of vehicle you use (please tick your Preferences)

1. Party wear shoes/sandals ( )

2. Daily use ( )

3. Multi use footwear ( )

4. Only Branded ( )

5. Both branded as well as unbranded ( )

6. I care for them at any cost ( )

2>. Where do you use your precious footwear?

Ans :-- 1> Personal use/ office use ( )

2> party use ( )

3> anywhere ( )

4> other please specify ______________________

3>—what is your preferred location in your area for footwear purchase?

Sol—

A________________________

B________________________

C________________________

D________________________

4>. Tell me do agree with the statement one (1) or statement (2)

Statement 1 – You must care for your footwear

Statement 2 – its only waste of time but sometimes it is useful to mend the high priced

footwear.

Response:

A> Agree with the first

B> Agree with the second

C> No opinion

5>. Brand which you know?

Ans: please write

___________________

___________________

___________________

___________________

___________________

___________________

IF any sub-brands or local preferred shops please specify

_________________

_________________

_________________

why( please specify)

________________________________________________________________

6>. Are you aware of the best places of footwear repair and maintenance in your area?

Ans: -- please tick

1. Yes ( )

2. No ( )

IF yes where do you go for a the repair

o high class repair ( )

o local cobbler ( )

o showroom ( )

o anywhere else ( please specify_______________________________)

7> Are you a user/consumer of branded footwear? If any please specify?

Ans :-- 1> yes ( ) please specify _________________

2> No ( )

8>. Type of footwear used or proffered by you?

Ans: -- please tick

1. shoes ( )

2. sandals ( )

3. chappals ( )

4. high heels ( )

5. boots ( )

6. stilettos ( )

7. leather footwear( )

8. OTHERS please specify ( ___________________ )

9>. When you buy the footwear it must be?

Ans : Please rank on a scale of 1 to 5 (1 being the lowest and 5 the highest)

1. Value for money _____

2. Looks must be there _____

3. Comfort _____

4. low in budget _____

5. Spare availability _____

6. Overall satisfaction _____

7. Other please specify ( _____________________ )

10>. On what norms would you like to replace your current footwear with branded one?

Ans Please tick on the available options

1 2 3 4

# Price ( ) ( ) ( ) ( )

# Environment and trend ( ) ( ) ( ) ( )

# Saves money ( ) ( ) ( ) ( )

# Serve my needs while commuting ( ) ( ) ( ) ( )

# Satisfaction from product ( ) ( ) ( ) ( )

# Quality of footwear used most often ( ) ( ) ( ) ( )

11>How much money you spend to maintain your footwear in a year if you k now please tell a rough

figure or else monthly estimate?

Sol—A> monthly Rs________________

B> yearly Rs_________________

Any comments

____________________________________________________________________________

____________________________________________________________________________

12>. What type of marketing strategy would be best for making penetration in this segment?

Ans :

Strongly agree

Agree

Can’t say

Disagree

Advertisement is the only possible way.

Educating people about the availability of such service

Co branding/and collaboration with stores+ brands + local footwear manufacturer

compensating with prices and charges

13>. Thanks for your feedback? Would you like to comment something on the ―PAKSH-AJ shoe

maintenance and repair services coming in your area?

Ans ____________________________________________________________________________

____________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Thanks: -- For the cooperation and time that you have spent with us, it will

certainly guide us in our overall understanding of the project, and will certainly show

us the best path out, for the completion of the project, your inputs are highly

honored.

Submitted by

Pratik Negi

Avinash Singh

Akash goswami

Jigar joshi

Sunil kumar

Harsh patel

Karan patel

A

PAKSH-AJ

Initiative

Soon knocking

Your door