Presentation on Woodland Shoes
PROJECT REPORT ON Woodland Shoes
SUBMITTED TO PROF. KAVITA SHETTY SUBMITTED BY Sr. No 1. 2. 3. 4. 5.
Name Deepak Barve Paresh Jadhav Teertha Kajeva Mansi Nautiyal Vicky Upadhye
MBA Retail Retail Retail Retail Core
ROLL NO. 08 23 38 40 166
AS PER DEPARTMENT OF BUSINESS MANAGEMENT DR. D.Y. PATIL INSTITUTE OF MANAGEMENT STUDIES C.B.D. BELAPUR SECTOR 4, NAVI MUMBAI
CERTIFICATE
This is to certify that the requirement for the project synopsis entitled “Woodland Shoes” successfully completed during the academic year 2008-09 by the following students (FY.MBA: 4C)
Sr. No
Name
MBA
ROLL NO.
1.
Deepak Barve
Retail
08
2.
Paresh Jadhav
Retail
23
3.
Teertha Kajeva
Retail
38
4.
Mansi Nautiyal
Retail
40
5.
Vicky Upadhye
Core
166
Head of Department (PROF. KRISHNA SHETTY)
Internal guide (PROF. KAVITA SHETTY)
ACKNOWLEDGEMENT
It gives us a great pleasure while submitting this project on the topic “WOODLAND SHOES” We thank Prof. KAVITA SHETTY for guiding us throughout this project work. And we also thank her for motivating us in different ways and enabling us. She has been the tremendous helping hand in completing this difficult task had an easy or any time access to such knowledgeable and guiding spirit. We feel there is ample scope of improvement upon the work of this nature and shall be thankful if any suggestion is offered for its improvement. We express our deep gratitude towards our family members, who helped us in giving a final shape and structure to this project work. We are also thankful to all those seen and unseen hands, which have been of direct or indirect help in completion of this project work.
Last but not the least we are also thankful to our colleagues who has helped us a lot to complete our project successfully, without their support and helping hand this project wouldn’t have been so fruitful.
CONTENTS
History of the company Introduction Features of the product
Types and price of product
Questionnaire Market survey. Demand and supply analysis Future plan of the company Technology used and services provided to the customers
International performance of the product
Competitors of the product
SWOT analysis. Suggestions Conclusion
HISTORY OF THE COMPANY
1960: Aero club started as a small manufacturing unit in Delhi. They were among the first to export shoes to the U.S.S.R
1962: They ventured into retailing with an outlet at a prime location in Delhi.
1972: They set up the first fully mechanized modern shoe factory in India (with German Machinery) to augment existing capacities, in view of the growing export demand.
1992: The Company launched Woodland brand and acquired winter boot factory in Quebec, Canada to cater to the Canadian and U.S. Markets.
1994: Commissioned manufacturing plant for Reebok for export to U.S.A.
1997: Commissioned manufacturing unit for apparels, adding to the range of Woodland products.
2002: Woodland becomes a national leader in premium category shoes, apparels and accessories. Started sourcing operations from South East Asian Countries. Opened offices in China and Hong Kong, facilitating the heavy domestic demand for new products and development.
2007: Total No. of exclusive showrooms targeted to touch the two hundred mark.
INTRODUCTION Indian shoe market is one of the most dynamic markets in the world. Although there are different valuations about the Indian Shoe Market. It is estimated to be worth around Rs 11000 crores. The market is traditionally price driven and dominated by the unorganized sector. What does woodland stands for? The answer is simple the spirit of adventure, of course. The advertising has been created specifically to communicate this spirit to everyone. And to encourage them to keep exploring and keep discovering. Woodland not only believes in making the best quality products but also creating outstanding communication ideas. It’s no wonder then that Woodland advertisement have been widely recognized in India and abroad. Woodland is an Indian Brand and they have done it with Indian Footwear. In a market dominated by sports and leather shoes Woodland created a category for itself. Woodland never wanted to be an ordinary shoe so till now this brand is concentrating on the premium end (above Rs 1500 shoes) of 2000 crore casual shoe segment. Woodland targets the up market segment and is positioning itself as a rugged high quality premium casual shoe. It can be called as SUV of Indian shoes. The ads are catchy and tempting. The logo of Woodland was a status symbol during the nineties. The brand is excellent in quality and styling. The brand carefully presented itself as an outdoor trekking kind of shoe which captured the imagination of Indian youth True to its price, the brand delivered its promise on quality which ensured that the brand is perceived as a value for money brand. Woodland has extended itself to accessories and apparels. Earlier Woodland tried its hand in the formal shoe category with the brand Woods but it did not make much impact in that market.
The careful branding has helped the brand to garner about 40% of the premium casual shoe market. But this market is witnessing lots of competition with global brands flexing its muscle in India. Woodland is a household brand with over 200 exclusive stores across the Indian Sub-continent in addition to a distribution network covering over a thousand stores across the country.
FEATURES OF THE PRODUCT Quality worth the money spent on : Price of woodland shoes starts from Rs 1000 onwards. These shoes are very beautifully designed and fashionable. These shoes are available for around Rs 1450 and the purchase is worth of quality.
Very trendy and fashionable: If you are ready to spend around Rs 2,000/- or above Woodland offers you a wide variety of trendy and fashionable shoes. You could be sure to acquire stone & pearl worked sandals best suited to your occasion and kid’s shoes are also available in different colures like red, velvety-brown, white, blue etc. but they are priced high.
Long and durable: Woodland shoes are really meant for longevity. They are classically manufactured for the toughest meanders. Due to its longevity and durability woodland shoes are preferred by those who don’t believe in frequent changing of shoes.
Padded Layers to provide comfort: Woodland shoes also provide the customers with padded layers in the shoes in order to provide much more comfort than other shoes.
Fabric lined for soothing experience: In some of there models woodland shoes also provide fabric linings for soothing experience to there customers. This is a unique feature of there shoes.
Incredible range: Woodland shoes also provide incredible range of shoes to there customers so, that they can have a variety of choice.
TYPES AND PRICE OF THE PRODUCT
Formal shoes:Woodland has a wide variety of formal shoes starting from Rs. 1445 onwards. These shoes are light in weight, comfortable and attractive.
Price : 2495.00
Casual shoes:Woodlands casual shoes are more in demand among the youths. They provide good quality, comfort and classic look to their customers. These shoes are available for Rs.1145 onwards. Shoes are available in full size from 1 to 13.
ShopID :2742
Rs.2395
Athletic shoes:These shoes are beautifully designed and they provide ankle coverage, lightweight and durability to their customers. Shoes are available for Rs.1545 onwards.
ShopID :7738 Rs.2795
Velvette shoes:These shoes are more in demand by the ladies as these shoes are beautifully designed with Velcro closure and elastic back. These shoes are available for Rs. 1645 onwards.
Price : 2850.00
Trekking shoes:Trekking shoes are the most known shoes in the market. These shoes have excellent foot grip. They also provide good cushioning and deep treaded sole for all terrains, dust, mud, ice, water. These shoes are available for Rs 1595 onwards
ShopID :3647 Rs.2695
Narrow edge shoes:Narrow edge shoes are very in now days. These are easy pointy shoes made out of swed leather, which looks accurate at normal distance. They are not as difficult to walk in as it looks. These shoes are available for Rs. 1945 onwards.
ShopID :7736 Rs.2795
Sandals:These sandals are stylish in design with fantastic colours option, well padded soles and great grip. The company uses smooth and exotic leather for making of this shoe. They are available for Rs. 1495 onwards.
ShopID :6667 Rs.2195
Baby shoes:Woodland also has a good variety of baby shoes. They provide Multi coloured kid’s shoes with attractive looks. These shoes are very comfortable with a soft fabric lining sole. These shoes are available for Rs. 995 onwards.
RS: 1195.00
FUTURE PLAN OF THE COMPANY WOODLAND SPENDING BIG TO EXPAND IN INDIA
They are planning to invest about Rs 10 crore (Rs 100 million) to set up three new plants and to double there production capacity to 20000 shoes per day in Uttaranchal to cater to the increased demand,"
The company currently has a production capacity of 9000 pairs of shoes per day. The new units, likely to be ready by 2008-end, would take its capacity to 10,000-12,000 pairs. "They are well-placed to achieve a turnover of Rs 200 crore (Rs 2 billion) in the current fiscal and are anticipating a top line of Rs 350 crore (Rs 3.5 billion) in the next two years,"
The company plans to open 60 to 70 new retail stores by 2008 to strengthen its presence in the country. The new stores would come up in metros and Tier-I cities and would take the total number of exclusive Woodland stores to 195.
"About 50 per cent of the stores are owned by the company and 50 per cent are based on the franchise model. They would follow the same model for there new stores, where around 50 per cent of the stores would be owned by the company,
The company is now planning to invest up to Rs 200 crore in the next 12 months on their expansion plans.
They are aiming to open 75 more stores in the country. The plan is to also enhance the manufacturing capacity to cash in on the ongoing retail boom.
They are also planning to import the latest technology in a big way to set up 100 percent robotics based automated plant.
The company is also considering strategic tie-ups and outsourcing work to some partners in the southern states.
TECHNOLOGY USED The key raw material for shoes, leather, and a good part of Woodland’s soles are all made in-house. Hand-picked Italian hides are tanned and finished on Italian machinery. It is specially imported to the Group’s own tanneries to allow it to produce the same products available in the best design houses across the globe. The unique rugged, tough rubber soles are also produced using German Technology at its own manufacturing facilities in India. New projects on the anvil include high-class footwear with directly injected dual density soles with high-tech machines and robots from the Germany.
SERVICES PROVIDED TO THE CUSTOMERS
Warranty period:The Showrooms also offer warranty for the footwear ranging from 6 months to almost 1 ½ years depending upon the shoes price.
After sales services:Woodland showroom also provides their customers with a satisfactory after sales services. They give complementary gifts to the customers on a specified purchase made by them. It includes shoe polish, shoe shiner, belts and other accessories too.
Special discount offer:Woodland generally provides special discount offers to the customers which mostly includes 12% discount on the purchase made. They also give discounts on special occasions such as ganpati, diwali, dusshera.
Shoe mela:Woodland also conducts shoe mela at various cities where they sell there shoes at discounted rate. They have conducted shoe mela at Hyderabad, Chennai, Bangalore and many more. Online purchase:Woodland also provides a very convenient facility of online purchasing to their customers. Under this facility customers can purchase and pay online through internet.
INTERNATIONAL PERFORMANCE OF THE PRODUCT The desire to explore does not have any boundaries. Adventure does not come with any limits. Discovery does not have an end. These are as vast as the greatness of the outdoors. And it is this belief that has been continuously driving. Woodland forward in all its endeavors. It is this belief that has taken Woodland beyond India’s borders and into the forefront of global outdoor products. And it is these beliefs that will help Woodland push the frontiers of the style and quality to bring you only the best. With a number of showrooms already opened and opening in cities around the world, Woodland is truly becoming a global brand. Now, without losing focus on its Indian customer, the company has once again set its eyes back on the international market, this time through its powerful retail brand – Woodland. In the very near future, consumers around the world will be able to buy Woodland products available in cities beyond the Indian Sub-continent. Following are the countries in which woodland brand have established their market:
Canada
•
Large winter boots factory in Quebec Lasting / finishing in Quebec uses American lasts/ sole/ fitting – marketing in Canada. Specialty in winter boots and Woodland type casual shoes.
• •
China & Hong Kong Sourcing operations from South East Asia
Europe Servicing the German, French, Italian markets and prominent brands and wholesalers by the export wing of the group.
SWOT ANALYSIS
STRENGTHS: The strength of the company’s production with in its captive facilities allows Woodland to produce aesthetically designed, sturdy and durable shoes.
WEAKNESSES:Woodland is certainly not for people who desire to keep on changing their footwear frequently having been fed up with the same design. The athletic and leather shoes do start getting dented within a year. The price offered by woodland shoes is quite expensive. As they are more into formal shoes so youngsters are less attracted. Woodland has limited number of outlets.
OPPORTUNITIES: They can expand their market more by covering and focusing on developing areas such as Navi Mumbai. They also have a great scope to expand their market in sports footwear. They can also target higher middle class people by launching new range of shoes between Rs. 750 to Rs. 1000. As they mainly deal in leather shoes so, they can also enter into manufacturing of all seasons shoes especially water proof shoes. They should increase the number of production units to earn more profits.
THREATS: Woodland shoes face a big threat from organized as well as unorganized sector. In organized sector following are the brands:• Metro • Bata • Red tape • Liberty • Lee cooper. In unorganized sector following are the brands:• Trekking • Nicholas
REPORT ON MARKET ANALYSIS A survey was conducted to find out the demand & supply analysis, production analysis & market share captured by woodland shoes. CONDUCTED AREA: Mumbai Navi Mumbai
: Linking Road and Colaba. : Belapur, D.Y.Patil institute, Vashi and Panvel.
Sample Size
: 15 Retailers. : 40 Customers.
The survey was conducted in a woodland outlets, small retailers, big bazaar mall, students, relatives & amongst peer group. To conduct a survey two questionnaires prepared by group one for retailers & one for customers. The retailer’s questions are based on availability, durability, production, demand, supply, profits margin &their suggestions regarding product. The customer’s questions are based on availability, preferences, prices, variety, durability & their suggestions regarding product.
QUESTIONNAIRE FOR RETAILERS 1. HOW MANY CUSTOMERS YOU HAVE IN A DAY?
2. WHAT TYPES OF SHOES DO THEY PREFER?
3. WHAT IS THE PRICE RANGE OF YOUR PRODUCTS?
4. DO THEY ASK FOR OTHER BRANDS?
5. HOW MUCH UNITS YOU PURCHASE IN A MONTH?
6. HOW MUCH UNITS GET SOLD FROM THEM?
7. IS THE DEMAND FOR SHOES INCREASING, CONSTANT, OR FLUCTUATES?
8. WHAT ROLE DO YOU PLAY IN AFTER SALES?
9. According to you who is the main competitor of woodland? a) Organized market b) unorganized
10. What suggestions would you like to give for woodland?
QUESTIONNAIRE FOR CUSTOMERS
1. Do you ever visited woodland outlet? a) Yes
b) No
2. Is the ambience of the outlet is up to the mark? a) Yes
b) No
3. Do you feel woodland shoes are easily available in the market? a) Yes
b) No
4. Do you feel the prices offered by woodland shoes is according to their worth? a) Yes
b) No
5. Do you feel the prices are high? a) Yes
b) No
6. Do you feel it has good durability? a) Yes
b) No
7. Do you the advertising done by woodland is sufficient? a) Yes
b) No
8. Do you feel the variety offered by woodland is sufficient? a) Yes
b) No
9. If the choice given to you which brand you like to prefer? a)
woodland b) Lee cooper c) Bata d)
Metro e) M&B footwear f) local brands.
10. What suggestions would you like to give for woodland?
DEMAND & SUPPLY ANALYSIS
The prices of the woodland shoes are high & it is a luxurious product so the analysis gought from a survey is it has a seasonal demand. So the supply from the company is more in the festival seasons.
Demand & Supply of 2007-08
1200 1000 800
Demand
600 400 200 0
1
April to June
2
July to Sept
3
Oct to Dec
4
January to March
Supply
SALES GROWTH OF WOODLAND SHOES Woodland is an Indian company and is taking great efforts for their sales by adopting technologies from various countries like Japan, Europe, Germany. Following are the sales of woodland shoes from last five years which shows the same.
RETAILERS SURVEY RESULTS
The area selected for woodland shoes survey is Navi mumbai, western mumbai & central mumbai. The results we gought from a survey is the demand for woodland shoes is high in A class areas like Andheri & colaba while it is low in developing areas like navi mumbai . As woodland is taking great efforts to enhance their shares in market they have also entered into the ladies & kids footwear recently. This can be seen with the following diagrams:
Retailers survey result of Navi Mumbai
Retailers survey result of Mumbai
Customer satisfaction as per survey results The customer’s survey was conducted in D.Y.Patil institute, relatives, & peer group. The sample size of the survey was 40 peoples. According to customers woodland shoes are easily available in the market and they are satisfied with the quality & durability of the shoes. Although the customers are unhappy with the higher prices of woodland shoes. It is also found that the advertising done by woodland shoes is not sufficient according to the customers. This can be seen with the following diagram. Customer satisfaction survey chart
No. Of People
Customer preferences as per survey result
the results found in a survey regarding customers choice of brands are among 40 peoples 14 customers are with woodland, 9 with metro, 5with Bata, 4 with lee cooper, & 8 with other brands. These are the brands with high prices who considered as major competitors in organized sector. This can be seen with the following diagram.
SUGGESTIONS They should start manufacturing sports shoes as they can easily sustain in that market. Sports shoes have a good demand now days. They should increase the number of their outlets. At present they have only 200 outlets in the country They should the price of the product. The existing price of the product is very high and thus the middle class people can’t afford that product. They should come up with more variety of woman footwear as the prevailing designs are not up to the mark. They should work more upon their promotional efforts.
CONCLUSION Woodland has slowly but steadily carved it’s place in the world of shoes. They are well-known brand in men’s footwear. Because of many other big brands in the market woodland shoes should come up with new marketing strategy. They should opt for product development to sustain in the global market.
Elasticity of demand As woodland shoes are expensive people take it as luxurious goods, so the demand is relatively elastic. It can be predicted that an increase in income of the people can make the demand relatively inelastic.
