Service Project

RESEARCH PROJECT ON SERVIS SHOES INDUSTRY
AN OVER VIEW
S
ervice Group is well known for its consumer
products and its contribution to the diversified
industrial growth of the country. The group has
its headquarters at Lahore, factories located at
Gujrat and Muridke. It operates two modern shoe
factories. The Gujrat factory was setup in 1964 and
Muridke factory commenced production in 1989. The
two factories are producing the following products:
 All categories of leather footwear and sports

shoes.
 Canvas shoes of Men, Women and Children.
 Rubber Sandals and Sleepers.
 Safety shoes and Footwear for defense force.
 Bicycle tiers and tubes.
 Car tires and tubes.
 Motorcycle tires and tubes.
The company’s brand “SERVIS” is a house hold name

in Paksitan. The company is also the largest exporter
of footwear from Pakistan and has maintained its
No.1
1
UNIVERSITY OF THE PUNJAB, GUJRANWALA CAMPUS
Position in exports and has won FPCCI trophy for

best export performance six times. The factories have
a workforce of over 5000 employees.
Service footwear are available throughout Pakistan at

fixed price through a chain of 258 retail stores
and 15 wholesale depots run by Servis Sales
Corporation Lahore (Pvt.) Ltd. Its staff provides
excellent service to the consumer at these stores. In
addition to company’s own retail stores, thousands of
shoe dealers/stockiest are selling Service shoes in the
country.
Service has been a trendsetter in footwear fashion in

Paksitan. It introduced colorful joggers for the first
time in Pakistan in early eighties. Its cheetah brand
shoes are very popular for sports as well as for casual
wear. ‘Don Carlos’ brand shoes reflect latest
fashion trend in formal and casual wear. Product
innovation has been as important part of Company’s
Marketing Strategy.
New products range is offered twice a year, at the
beginning of summer and winter seasons.
2
BRIEF HISTORY OF THE

ORGANIZATION
I
1941, three young friends like CH.
n the year
Nazar Mohammed,Ch.Mohammad
Hussain from Gujrat district and Mr.
Mohammad Saeed from Gujranwala District,
fresh college graduates started business art a small
scale at Lahore. Within years their business
flourished and they were making business in every
corner to India at the time of partition. Although the
company suffered losses on account of outstanding
payments for the supplies made on the other side of
border yet the company had to search for new
markets. The directors of the company were not
discouraged and thy continued their honest efforts
and worked with dedication and with the help of
ALLAH the business expanded. At this stage they
had to search new site for installation for their
installation of the factories in Gujrat.
In this connection the first step was taken and

Hillal Tanneries was built in Gujrat, which started
functioning in year 1954. Ten years later the shoe
factory i.e. Service Industries Limited, G.T. Road,
Gujrat followed by a Textile Mill was also built in
Gujrat.
3
This was in addition to the shoe factory, the company
had already in Lahore. This organization was then
built in most organized and scientific manner opening
its own wholesale outlets and their retail shops all
over the country enabling the consumers to buy
shoes at fixed prices, which was contrary to the trade
practices at that
Time in the country. This was appreciated by the
Consumers. The company then started to enter in the
Export market realizing that the country was in need

of
Foreign Exchange.
The exports were made on quality and delivery at the

right time basis which increased every year and the
same trend continued. The Govt. appreciated the
efforts for the first time in 1968 and awarded
Services Industries President export Trophy Class-1 in
the same year.
largest exporter
Since then the company is the
of foot wear in Pakistan. The company was
again awarded the pride of performance Trophy by
the Pakistan Chamber of Commerce and Industries in
1977 and is continuing to get FPCC Export trophy.
Their auto tier and tube unit was also set up in the
year 1988.
4
SERVICE GROUP OF
INDUSTRIES
Service group of industries consists of following
companies:
 Service Industries Ltd. (SIL)
 Shoe Factory Gujrat.
 Shoe Factory Muridke.
 Tier and Tube Project Gujrat
 RAG Division Muridke.
 Dare-Salaam Textile Mills Limited.
 The Hilal Tanneries Ltd.
 Prestige Industries (Pvt.) Ltd.
5
 Service Export Corporation (Pvt.) Ltd.
 Service Sales Corporation Lahore Pvt. Ltd.
SERVICE INDUSTRIES PRIVATE

LIMITED
COMPANY INFORMATION
BOARD OF DIRECTORS
 Ch. Ahmed Saeed (Chairman)
 Mr. Shahid Hussain (Chief

Executive)
 Mr. Ijaz Butt
 Mr. Mohammad Akram
 Mr. Zahid Hussain
6
 Mr. Shahid H. Kardar
 Mr. Riaz Ahmed
 Mr. Asif Jamil (Rep. of NIT)
 Mr. Fiaz Ahmed Longi (Rep. of NIT)
COMPANY SECRETARY
 Mr. Sultan Anwar
BANKERS
 Habib Bank LTD.
 Standard Chartered Bank.
 United Bank LTD.
 Muslim Commercial Bank LTD.
 Union Bank Limited.
 Faysal Bank Limited
AUDITORS
 S.M Masood & Company
Chartered Accountants
7
REGISTERED ACCOUNTANTS
Service House, 2-Main Gulberg, Lahore-54662

Phone No: 5751990-96
Fax No. 5710593,05712109,5711827
SHARE REGISTRAR
Soft Link (Pvt.) Limited
Wings Arcade, 1-K (Commercial) model town,
Lahore.
Phone No: 5839180-82
Fax No: 5837061
FACTORIES
 G.T Road Gujrat.
 Muridke-Sheikhupura Road, Muridke.
8
Source: Company’s Annual Report.
COMPANY’S MISSION
M
ission statement of a
company states that
how a company sees itself.
Mission of Service Industries Limited, is
to Satisfy its customers by providing
quality & reasonable priced footwear’s
and other products throughout the
country, and to satisfy its employees
through good management.
9
COMPANY’S OBJECTIVES
 Our products should meet the

customer expectations.
 Our basic concern is to satisfy

customer.
 Our aim is to provide good job opportunities and
satisfaction to people.
 We should respect our competitors.
 Employees are as important as external

customers.
10
 Teamwork and cooperation area more important
than individual action.
 Never be satisfied with the level of quality,

always strive for continuous improvement.
 No compromise on quality.
SERVIS SHOES INDUSTRY
TARGER MARKET
 At the beginning, target market of SIL for
footwear was gents of all classes.
 But it is also focusing on children and

ladies.
 So, we can say that target market of SIL

for footwear is the whole country.
11
 Some foreign countries are also target

market of SIL for footwear.
 Normally, the target market of servis is the

middle income and high income people of
country.
BRAND DECISION
Branding decision is one of the important decisions.
SIL has branded its products by the name of
‘servis’.the company has introduced another brand
name of ‘Prestige’ in the year 1985.
These two brands are used to differentiate in the
target market. ‘Servis’is a high priced brand while
‘prestige’ is low priced brand.
STYLE AND DESIGNS DECISION

Some companies stand out for design distinctiveness.
SiL is also one of them because it has its own styles
and designs. In SIL the styles and designs are made,
with the help of local purchase officers who are
responsible for making new designs.
PRICE DECISION
In servis industry Ltd the prices are set independently

with partial consideration of BATA. It has only one
price throughout the country. Company has some ‘B’
12
pair shops in the country, which sell the shoes at
lower prices. The ‘B’ pair shops only deal in outdated
and rejected shoes of the company.
DISTRIBUTION DECISION
There are generally three channels of distribution
which are adopted by SSC
 Producer___________________Buyer
 Producer_______Retailer_________Buyer
 Producer____Wholeseller____Retailer___Buye
r
There are 15 wholesale shops and 258 retail shops of servis throughout
the country. Besides these there are thousands private stockiest in
country.
ORGANIZATION SETUP
T
o achieve gigantic results, business should be in
a complete organized structure. In other words
we can say that there should exist a complete
coordination between employer and employee both a
horizontal and vertical level. More especially we say
that a company should be so organized that every
one in the company has a thorough
knowledge of who is to do what and who
13
is responsible of what. There should not be any

confusion and complication among authority and
responsibility.
Service Industries (Pvt.) Ltd. Just only performs

the manufacturing activities at Gujrat and Muridke,
whereas selling activities are performed through
Service sales Corporation, which is also a member of
Service Group of Industries. Service Sales Corporation
has its 258 retail outlets in whole of the country for
selling activities of service group on industries and
every person has complete knowledge about his/her
duties and responsibilities. Therefore we can say that
service group of industries has strong organization
setup which is key element of its success.
Managing Director
Retail Manager
Wholesale Manager
Export Manager
Production Manager
Finance Manager
Personnel Manager
14
DIRECTOR ACCOUNT
& FINANCE
Finance /Export /Import

Account Deptt.
Deptt.
Manager Accounts Manager finance

exports
Asstt. Manager Assistant Assistant

Account
Exports Imports
Asstt. Manager
Account
Account
Assistant
Data Entry
Operator
Computer
Operator 15
Office Assistant
SERVIS SHOE INDUSTRY (PVT.) LTD.

List of shoes verities provided by servis are
given below
16
SHOES
SHOES
Liza
Liza
Don Carlos
Don Carlos
Toz
Toz
Skooz
Skooz
Calza
Calza
Cheetah
Cheetah
17
Liza shoes are most famous among ladies. There are 108 designs in
it. It minimum pries is 250 and maximum price is 750.
18
19
20
There are 56 designs in it including Maccassions. Its minimum

price is 750 and maximum price is 1700.
21
22
Toz refers to child shoes. In it 2_5 range is called youth range,

7_10 range is called child range and 11_12 range is called boy
range. Its price is between 150 to 450.
23
24
25
26
Skooz refers to school shoes, normally their new variety come

after 14th august each year.
27
Calza is the top article among servis shoes. There are different
categories in it like
o Calza 26
o Calza +6
o Calza 6
o Calza 7
28
29
Cheetah is also very famous brand of servis. There are 35 designs

in it. Its price is between 700 to 1595.
30
COMPETITORS
On the basis of business size and volume, major competitor of SSC
is Bata. Others include Milli, Starlet, Hush Pappies, English shoes,
Roots but they are to be considered small scale.
Bata started its business in 1984. The Company’s headquarters

are officially located in Toronto under the leadership of
Thomas J Bata. Bata operates 63 companies in various
industries but footwear remains the core business with 60
million pairs sold per year in more than 30 countries. There
are 20 wholesale shops and 414 retail shops of Bata in
Pakistan.
BATA
BATA
SHOES
SHOES
Bubblegummers
Bubble gummers
Power
Power
Marie Claire
Marie Claire
North Star
North Star
31
Bubble gummers are the leading children’s footwear brand in

Latin America and have developed an extensive presence in
Asia and in Europe. Bubble gummers offers quality,
comfortable, funny and colorful shoes for the 0 to 9 old that
assure the healthy growth of a child's foot.
Power embodies diversity with ranges in running, training,

court, basketball, football and Outdoor that combine
functionality with creativity. International pro-skaters
signature shoes designed to meet the demanding needs of
skateboarding are developed under the Power-Skate line.
Power is sold across 5 continents via Bata retail stores and
distributors’ networks.
32
Marie Claire shoes are for women with an active lifestyle who
seek contemporary modern styles. Marie Claire shoe stores
successfully opened in Latin America and Asia.
Bata Brands is the trademark owner of Marie Claire for shoes
worldwide (except in Japan and Korea).
33
34
35
PRESENT SHARE AND STATUS

SSC has got following percentage of market share.
COMPANY PERCANTAGE
SERVIS 5%
BATA 6%
OTHERS 89%
This is the current scenario of Pakistan’s shoe industry. This is

basis for our research project. “Why Servis market share is
lower as compare to Bata and how can we increase its share”
36
RESEARCH WORK
As per direction of our respected teacher we started our
research project by the help of authority letter provided
by him. We started our research project with full
attention and by the will of Allah we succeeded in
achieving our goal. We tried our best to get maximum
desired results. During research we followed fully
ethical behavior. Our respected teacher assigned us
topic “Why local firms are far behind the foreign
companies”.
Under this topic we selected SERVIS shoe industry

which is a local shoe company. Its main competitor is
BATA which is a multinational company. In this project
we are going to discuss the reasons due to which Servis
is far behind Bata. Here we also recommend some
suggestions for the improvement of Servis shoe
industry.
During research we follow following steps:
37
REPORT
WRITING OBSERVATION
PRILIMENARY
DEDUCTION DATA
COLLECTION
DATA ANALYSIS, PROBLEM

INTERPRETATION DEFINITOION
RESEARCH THEORATICAL
DESIGN FRAM WORK
HYPOTHESIS
38
39
OBSERVATION
Observation is the first step of our research project. During observation

we sense what’s the effect of Bata and other shoes companies on the sale
volume of Servis Shoes Company (SSC). For this purpose we deeply
study the annual report of SSC and we also conducted many
unstructured interviews from people and shop managers of both Servis
and Bata to know the clear picture of SSC. After this we able to find
40
four different types of problems that is facing by the SSC. These are as
follow
 Already existing problem

 Situation requiring improvement
 Conceptual problems
 Empirical answers
ALREADY EXISTING PROBLEM

We observe that management and outlets of Servis shoe industry is facing
problem of decreasing number of customers day by day. Company’s annual
report also shows that company net profit ratio is decreasing as compare to
previous years.
YEARS NET PROFIT(%)

1999 1.58
2000 1.55
2001 2.91
2002 1.84
2003 0.34
41
3.5
3
2.5
2
1.5
1
0.5
0
1999 2000 2001 2002 2003
NET PROFIT
SITUATION REQUIRING IMPROVEMENT

We also observe that servis market share as compare to Bata and other shoe
manufacturers are low. Newspapers also show that servis share value is less
than Bata. People are not very much interested to invest in servis. This is the
situation that management wants to improve.
COMPANY PERCANTAGE
SERVIS 5%
BATA 6%
OTHERS 89%
Here the purpose of our research studies to find out the ways to increase the
market share of SSC.
42
CONCEPTUAL PROBLEMS
During interviewing with people we observe that there is wrong concept
among people that “Servis always charge very huge price even more than its
quality” this is the wrong concept which company wants to solve.
EMPIRICAL ANSWERS
Servis current market share is 5% and company wants to improve it. We are
going to conduct research on servis and at the end our research report will
depict what strategies the company should adopt to increase its marker
share.
43
PRELIMINARY DATA COLLECTION
As the preliminary data gathering is concerned, firstly we visited the

Servis and Bata outlets frequently and then Servis head office and collected
some information about the Company which we already discussed above.
Shop managers of both Servis and Bata also told us about articles and prices
of shoes with which they are dealing. The details of which is as follow:
SERVIS SHOES RATES AND DESIGNS
44
Category DESIGNS PRICE(MAX) PRICE(MIN) PRICE(AVG)

SPORTS 35 1595 700 1100
LADIES 108 750 250 500
MUCCASION 56 1700 750 1250
CHILDREN 115 450 150 200
SANDALS(GENTS) 41 1095 325 445
LEATHER CHAPELS
GENTS 54 550 150 300

PVC- 4 76 55 65
LADIES
PVC- 7 105 69 90
GENTS
BATA SHOES RATES AND DESIGNS

SPORTS 14 1150 250 550
LADIES 110 750 155 290
MUCCASION 20 1000 400 550
CHILDREN 200 350 150 280
SANDALS(GENTS) 19 475 300 350
45
LEATHER CHAPELS

GENTS 33 450 139 275
PVC- 10 89 59 75
LADIES
PVC- 7 109 99 105
GENTS
We also get a lot of information from inter net. After due verification, we
have come to know that Servis shoe industry has some problems like
declining customer ratio etc. After collecting necessary data we developed

two short questionnaires. The purpose of two questionnaires is to check
Internal consistency and to derive real factors involving contributing in

problem. First questionnaire consists upon general questions about shoe
industry through which we able to find independent, moderating and
intervening variables involved in real problem. Second questionnaire only
consists upon questions relating to Servis Company and we use it just for
data analysis.
46
47
PROBLEM DEFINITION
A formal research process should not start until a problem is identified

Problem means the difference between the actual and desired state. It is
extremely important to define the research problem carefully because it is
the only thing, which tells the purpose of research and also tells how to
design the research.
The management of the Servis observed that they are facing the crises of
declining customer ratio due to their competitor i.e. Bata and other shoe
manufacturers. After studying the material and the going through the
documents and sales record we found that it is true that the customer ratio is
decreasing gradually from last couple of years.
RESEARCH OBJECTIVE
48
Following are the objectives of our study
 To find out the customers’ behavior about the Company

 To find how can we increase the number of customers
 To find whether the quality of products is improved or
not
 To know the opinion of customers about prices, quality,

designs, attitude of salesmen, complains response,
competitors and advertisement of the Company products.
 To know whether the customers are satisfied with the

products or not
 To know whether the price matches the quality of
products or not etc.
49
50
THEORETICAL FRAMEWORK
A theoretical framework discusses the interrelationship among the variables
that are deemed to be integral to the dynamic of the situation being
investigated. A theoretical framework is a conceptual model how this theory
can make the relationship among the several factors that have been identified
as important to the problem. In short words we can say theoretical
framework identified and labeled the variables clearly.
VARIABLES
A variable is any thing that can take on differing or varying values. The
values can differ at varies time for the same object or person, or the same
time different objects or persons.
The identification of key variables is very important in every research study.
In this project we find following different types of variables,
 Dependent variable
 Independent variable
51
 Moderating variable
 Intervening variable
DEPENDENT VARIABLE
A dependent variable is the variable of primary interest to the researcher.
Dependent variable is the main variable that lends itself as a variable issue
for investigation. Through the analysis of the dependent variable it is
possible to find answer of the solution to the problem.
In this study the dependent variable is “Declining market share of Servis
due to competitors” it depends upon certain other variables.
INDEPENDENT VARIABLE
An independent variable is one that influences dependent variables, either in
positive or negative way. That is, when the independent variable is present
the dependent variable is also present, and with the each unit of increase in
the independent variable, there is an increase or decrease in the dependent
variable also. In this study there are many independent variables. Some of
which are as follows
 Price
 Quality
 Access To Outlets
52
 Advertisement
 Special incentives
 Discount
 Attitude of salesmen
 Fashion
 Attractive Designs
MODERATING VARIABLE
The moderating variable is one that has strong contingent effect on the
independent variable and dependent variable relationship. The moderating
variable modifies the originally expected relationship between the

independent and dependent variables. In this topic, the moderating variable
are
 Complains Response
 Comfort ability
 Cut Price Sales
 On line Purchase
53
INTERACTION OF VARIABLES
INTERVENING VARIABLE
PRICE Desire to
promote
QUALITY & local
industry
ACCESS TO OUTLETS
ADVERTISMENT &
SPECIAL INCENTIVES CUSTOMER
RATIO
DISCOUNT &
ATTITUDE OF
SALESMEN
DEPENDENT VARIABLE
FASHION
REQUIREMENT
&
INDEPENDENT MODERATING VARIABLES

VARIABLES COMPALAINS
RESPONSE COMFORTABILITY
54
CUT ON LINE
PRICE PURCHAS
SALES E
55
GENERATION OF HYPOTHESIS
A formal statement/proposition is generated which may be approved or

disapproved.
Hypothesis is logically conjectured relationship between two or more
variables expressing the form of testable statements. By testing the
hypothesis and confirming the conjectured relationship, it is expressed as
that the solution can be found to correct the problem encountered.
Here we develop these Hypotheses between dependent and
independent variables
Ho: There is no relationship between Price and Customer

Ratio
HA: The Price affects the Customer ratio
Ho: There is no relationship between the Quality of shoes and

Customer ratio
HA: Better the Quality more the Customer ratio
Ho: There is no relationship between Easy Access and

Customer ratio
HA: People will go to the nearer shoe shop.
56
Ho: Advertisement does not Affect the Customer ratio
HA: More the Advertisement more the Customer ratio
Ho: Special incentives do not attract the people towards

Company
HA: Special incentives attract the people very much
Ho: Discount does not play role to increase customer ratio.

HA: Discount attracts the people very much.
Ho : There is no relationship between salesmen attitude and Customer

ratio.
HA : There is relationship between salesmen attitude and Customer
ratio.
Ho : Shoes according to fashion are not necessary to increase sale.

HA : Fashion plays vital role to increase sale volume.
Ho : Attractive designs are not necessary to rise customer ratio.

HA : Designs attract are necessary to rise customer ratio.
57
58
RESEARCH DESIGN
“Research design is a plan and structure of investigation to obtain

answers to research questions. It is overall scheme and program of
research of research which includes an outline of what the investigator
will do from developing hypothesis to final analysis of data”.
In research design we decide about following things:
 Purpose of study
 Type of investigation
 Study setting (environment)
 Unit of analysis
 Time horizon
 Data collection methods
 Sampling design
 Measurement of measures
Purpose of Study
The purpose of our study is to describe the factors and variables and their
effects and the result there of: the nature of the study is Descriptive, so
descriptive research methods use in this study.
Type of investigation
59
While research project we conducted two types of investigation:
 Causal Study
 Non Causal Study
Causal Study
Here we are able to find what is the effect of independent and moderating
variables as discussed above on dependent variable. i.e.
What is the effect of fix pricing on servis sale volumes.
Non Causal Study

During study we are also able to know the relationship among different
variables as discussed above. We also able to know what factors are strongly
involved in decreasing sale volume of SSC as compare to Bata.
Study Setting (Environment)

Study setting means environment under which we conduct research study.
We conducted our project in non contrived environment as we visited
outlets and company head office at normal working hours. We also meet
different customers at Servis outlets and collected information from them in
natural and normal environment. We also fill questioners from customers at
outlets not at their houses because we are focusing on non contrived
environment.
Unit of analysis
60
As per nature of our project our unit of analysis is individuals. We met
individual customers and collected information from them about SSC.
During our survey on Servis and Bata outlets we also met individual
managers for colleting information about customers’ demands.
Time horizon
Our research project is based upon Cross-Sectional study. As we collected
information over a period of three and half months. This study is also called
one shot study.
Data Collection Methods

In our research study we collected data from following two sources:
Primary Sources
 PERSONAL OBSERVATION
 COMPANY ANNUAL REPORT
 MEETING WITH OUTLETS MANAGERS
61
Secondary Sources
 PERSONAL INTERVIEWS
 TALKING WITH MANAGEMENT
 QUESTIONNAIRE
QUESTIONNAIRE DESIGN
One of the most important methods for the purpose of data collection is
questionnaire design. A questionnaire is a formalized set of questions for
obtaining the required information from the respondents. It is also one of the
most critical stages in survey research process. A research survey is only as
good as the questions it asks. We made two questionnaires for this survey,
one is use for general public and other is use for only Servis shoes
customers. There are two types of the questions in our questionnaires.
A.OPEN ENDED QUESTIONS
Open-ended questions mean such a questions, which have no pre-existing

answers in which the respondent will have to answer but these are asked and
respondent gives answer in his own words.
B. CLOSE ENDED QUESTIONS
In close-ended questions the answers are pre-existing and

respondent give answers in the categories available.
62
In this research both the open-ended questions and the close-ended
questions were asked for collecting the information needed.
FEATURES OF OUR QUESTIONNAIRES

Following is the important features of our questionnaires:
 Our research questionnaire is self administered questionnaire and
we filled all questions from respondents in our present.
 Wording of questions is crystal clear and easily understandable for
all respondents.
 All the questions are single barred not double barred.
 No question was loaded question which hurt the feelings of
respondents.
 No question was recall dependent question in our questionnaire.
63
INTERVIEWS DESIGN
For this research study the data have also been collected through interviews.
There are mainly two types of interviews as well:
A. Structured Interviews
B. Unstructured Interviews
STRUCTURED INTERVIEWS
A structured interview means that in which the persons are carefully selected
for interview and a structured questionnaire is prepared to record the
response from the respondents.
UNSTRUCTURED INTERVIEWS
In kind of unstructured interviews, there is not any kind of interviews

prepared and no specific persons are selected for the interview.
In order to conduct this research study both kind of interviews have been
used for collecting information. From the very start unstructured interviews
were conducted from the customers and local shops mangers of SSC and
64
then we visited company head office in Lahore and conducted some
structured interviews of different staff members in order to collect some
additional information.
SAMPLING
SAMPLE DESIGN
When researcher prepares research design he should mention the
sampling design. The target markets for our research study are Gujranwala
city. There are four registered outlets, two cut price shops and one wholesale
depot of Servis in Gujranwala. These are situated in following places
 G.T Road Gujranwala
 Satellite Town Gujranwala
 Urdu Bazar Gujranwala
 College Road Gujranwala
 Saad Nagri Bazar Gujranwala
We selected all the markets randomly to collect the required information
from the respondents.
SAMPLE SIZE
The sample size for this research study was 300 respondents.
Respondents have been surveyed and investigated from each and
every marketing area. Approximately 94% people give response of our
questionnaires.
65
SAMPLING METHODS
Sampling is the technique for drawing the samples from the population for
statistical analysis in an integral part of the research process.
Following are the different techniques adopted to draw samples from

population in this project.
A. Probability Sampling
B. Non-probability Sampling
PROBABILITY SAMPLING
A sampling design which is based upon the concept of random selection. A
sampling technique where every member of population have known and
equal chances of selection. There are different types of probability sampling
but we choose among them area sampling as per the requirements of our
project.
AREA SAMPLING
For the searching of our variable of interest we fill our
questionnaire from those area where Servis shops are situated. We
collect information from following areas of Gujranwala city.
 G.T Road Gujranwala
 Satellite Town Gujranwala
66
 Urdu Bazar Gujranwala
 College Road Gujranwala
 Saad Nagri Bazar Gujranwala
 People colony Gujranwala
 Gujranwala Cant
NON-PROBABILITY SAMPLING
In non_prabability sampling there is not equal chance of selection of each
element of population. Under this head we select Quota sampling for
selection of variables of interest.
QUOTA SAMPLING
There are 4 registered outlets and 2 cut price shops of Servis in our city
and we fill 25 questionnaires from each shop for better searching of
factors contributing in the problem.
MEASUREMENT OF MEASURES
Measurement of the variables in the theoretical is an integral part of
research. For the purpose of measurement, all the variables must be first
operationally defined.
SCALE
A scale is a tool or mechanism by which individuals are distinguished on the
variables of interest to this study. Following are different types of scales:
67
a) Nominal Scale
b) Ordinal Scale
c) Interval Scale
d) Ratio Scale
a) NOMINAL SCALE
A nominal scale is one that allows a researcher to assign numbers to
certain categories or groups. In this scale the data is categorized into two
mutually exclusive and collectively exhaustive groups. Nominal scale gives
basic information about variables.
b) ORDINAL SCALE
An ordinal scale is not only categorized the variables in such a way
that it not only denotes qualitative difference among the various categories
but it also rank order the preference in some meaningful way. The
preference would be ranked and numbered. In ordinal scale we use median,
range, percentile ranking etc.
c) INTERVAL SCALE
Interval scale allows us to perform certain arithmetical operations on
the data and information collected from the respondents. By using the
interval scale, we can easily compare two things by their interval or distance.
It measures central tendency, mean, and measure of dispersion, standard
deviation and variance.
d) RATIO SCALE
68
Ratio scale starts form zero. Ratio scale has absolute rather than
relative measures. The measure of central tendency of the ratio scale could
be either the arithmetic mean or the geometric mean and the measure of
dispersion could be either the standard deviation or variance or the co-
efficient of the variance.
Mathematical and statistical Analysis
Types of Numerical Descriptive Statistics Test of

Scale operation Significance
Nominal Counting Frequency in category Chi-Square
scale %age………..Mode
Ordinal Rank ordering Median, Range, Rank order
scale Percentile Ranking Correlation
Internal Arithmetic Mean , T.test

scale operations on Standard Z.test
interval between Deviation,
numbers variance and
coefficient of
variation
Ratio Arithmetic Arithmetic mean, T.test
scale operations on Geometric mean, Z.test
actual quantities Coefficient of variance,
standard deviation
69
In this study, the nominal scale has been used and we used
percentages to see the response of respondents.
70
DATA ANALYSIS
We have collected scientific data from general people, outlets managers by

personnel interviews and questionnaires and also the literary survey (annual
report) of SSC. After that we have analyzed the data by using statistical tools
i.e. averages, percentages, correlation and proper graphical presentation of
data has been applied.
DATA ANALYSIS TECHNIQUE

We use following techniques for data analysis
 AVERAGES
 PERCENTAGES
 CHARTS AND GRAPHS
 CORRELATION
71
ANALYSIS OF DATA COLLECTED THROUGH

QUESTIONAIRE
Question 1: “Which company shoes do you like to wear mostly?
SCHEDULE
Views
Servis 28%
Bata 30%
Hush Pappies 5%
Others 37%
GRAPHICAL PRESENTATION
72
40%
35%
30%
25%
20% 37%
15% 28% 30%
10%
5%
5%
0%
Servis Bata Hush Others
pappies
INTERPRETATION
The field study about our research project shows that 28% of the
respondents use the shoes of Servis Company, 30% wear Bata’s shoes and
remaining 42% people wear the shoes of local companies. This is the current
market status of Gujranwala city and our purpose of study to find the ways
to increase the market share of SSC.
Question 2: “Do you like Servis shoes?”
SCHEDULE
Response
Always 42%
Sometime 58%
73
58%
60%
50% 42%
40%
30%
20%
10%
0%
Always Sometime
INTERPRETATION
After analyzing the data it has been found that among the Servis customers
42% are those who always prefer the Servis shoes and 58% are those who
only purchase Servis shoes at special occasions and not the regular user of
Servis products.
Question 3: “On which basis do you prefer Servis shoes?”
SCHEDULE
Basis of preference Percentage

Quality 40%
Brand 20%
Design 26%
74
Price 14%
40%
40%
30% 26%
20%
20%
14%
10%
0%
Quality Brand Design Price
INTERPRETATION
After taking the response from respondents, it has been found that 40%
people purchase Servis shoes due to its better quality, 26% people buy shoes
due to better designs, 20% people give preference to its products due to its
good image and very few people like 14% consider that high price means
high quality and buy Servis shoes due to price factor.
Question 4: "How much you satisfy with servis fix price

policy?”
SCHEDULE
Views Percentage
Strongly satisfy 8%
Satisfy 18%
75
Neither satisfy nor 23%

dissatisfy
Dissatisfy 36%
Strongly dissatisfy 15%
40%
strongly satisfy
30%
satisfy
20% Neither satisfy
nor dissatisfy
10% Dissatisfy
Strongly
0% dissatisfy
INTERPRETATION
The research shows that 26% customers of SSC are satisfy with its fix
price policy. 23% people are those who neither satisfy nor dissatisfy with fix
price policy 51% customers are against the fix price policy of SSC.
Question 5: "How much you agree with servis shoes quality?”

SCHEDULE
Views Percentage
Strongly agree 31%
Agree 37%
Neither Agree nor 17%
76
disagree
Disagree 15%
Strongly disagree 0%
40%
strongly agree
30%
agree
20%
neither agree not
disagree
10% diagree
0% strongly disagree
INTERPRETATION:
The research study has revealed that 68% people are agree with the
quality of shoes which are provided by the SSC. 17% people are those who
neither agree nor disagree with its quality. Only 15% people are dissatisfied
with Servis shoes quality.
Question 6: “Does the quality of servis shoes match with its

price?”
SCHEDULE
Views Always Sometime Never
77
Percentage 27% 51% 22%
60% 51%
50%
40%
27%
30% 22%
20%
10%
0%
Always Sometime Never
INTERPRETATION
Through our survey from general people we found that 27% people
are those who say that servis shoes price is always up to its quality, 51%
customers say that sometime shoes do not fulfill our expectations and only
22% respondents say that company always charge more than its price.
Question 7: “Does servis always fulfills the seasonal

requirements?”
SCHEDULE:
Response Yes No
78
Percentage 63% 37%
70% 63%
60%
50%
37%
40%
30%
20%
10%
0%
Yes No
INTERPRETATION:
We found that 63% people agree that company always fulfills the
seasonal requirements and only 43% are those who oppose it.
Question 8: “Do you think that Servis shoes designs as compare to

other shoes are?”
SCHEDULE
Views Percentage
79
Very Good 19%

Good 48%
Relative Bad 33%
50%
40%
Very Good
30%
Good
20% Relative Bad
10%
0%
INTERPRETATION:
Our survey reveals that 19% people consider Servis shoes designs best as
compare to others, 48% consider better and only 33% people say that its
designs are relative bad as compare to others.
Question 9: “Do you feel comfortable while wearing Servis shoes?”
SCHEDULE
Views Percentage
Always 46%
80
Sometime 41%
Never 13%
50%
40%
30%
20%
10%
0%
Always Some Never
time
Always Some time Never
INTERPRETATION
The results show that 46% agree on the fact that they always feel
comfort ability while wearing Servis shoes, 41% people say that they feel
comfort ability sometime not always but 13% people say that they never feel
easy while wearing Servis shoes.
Question 10:”Do you think that advertisement of Servis shoes always

attracts you?”
SCHEDULE
Views
Yes 59%
81
No 41%
60%
50%
40%
30%
20%
10%
0%
Yes No
INTERPRETATION
The above analysis shows that 59 % people say that Servis
advertisements always attract them but only 41% people say that company
advertisements are not always attractive.
Question 11: “Do you think that Servis shoes are mostly available for?”
SCHEDULE
Views Percentage
Children 26%
Women 20%
82
Men 54%
60%
54%
50%
40%
30%
26%
20% 20%
10%
0%
en
n
en
re
M
om
ld
hi
W
C
INTERPRETATION
The answer shows that mostly users of Servis products are men and
there is little charm for women and children in Servis. More than 50%
customers of Servis are men, women are 20% and children are 26%.
Question 12: “The attitude of Servis outlets employees is?”
SCHEDULE
Views
Very Good 26%
83
Good 39%
Satisfactory 33%
Bad 2%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Very Good Good Satisfactory Bad
INTERPRETATION
From the above data we analyze that mostly people say that attitude of
Servis outlets employees is good and they are satisfy from them but only 2%
people say that their attitude is not good.
Question 13: “Does servis shoes stockiest give attention to your

complains?”
SCHEDULE
Views
Always 10%
84
Sometime 28%
For once 42%
ignored 20%
50%
40%
30%
20% 42%
28%
10% 20%
10%
0%
Always Sometime For once Ignored
INTERPRETATION
The field study about our research project shows that 20% of the
respondents say that shops employees always ignore their complains,42%
say that only once their complains are considered and 38% are those who
say that mostly their complains are considered.
Question 14: “Are Servis shoes outlets offering you reasonable discount
on purchase?”
SCHEDULE
85
Views Percentage
Always 4%
Sometime 34%
No Discount 62%
70%
60% 62%
50%
40% 34%
30%
20%
10% 4%
0%
nt
e
s
ti m
ay
ou
lw
sc
e
A
di
So
o
N
INTERPRETATION
After collecting the data, we see that 62% people say that there is no
discount on Servis shoes, 34% say that mostly discount is offered and only
4% say that there is always discount on purchase of Servis shoes. out look of
fan is very important as deemed by 44 % and 30% consider it as important
but 26 % regarded it normal.
Question 15:”All designs of servis shoes are available you at any time?”
SCHEDULE
Views
86
Yes 59%
No 41%
59%
60%
50% 41%
40%
30%
20%
10%
0%
Yes No
INTERPRETATION
The above analysis shows that 59% people say that at any time they
are available all designs of Servis shoes and 41% say that mostly they are
not available all the designs at any time.
Question 16: ”Do you have easy excess to Servis shoes outlets?”
SCHEDULE
Views
87
Yes 73%
No 27%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes No
Yes No
INTERPRETATION
The above analysis shows that 73% people have easy excess to Servis
outlets and 27% people have not easy excess to Servis outlets.
Question 17:”Are Servis shoes outlets offer you cut price sale facility at
special occasions?”
SCHEDULE
Views
88
Yes 32%
No 68%
70%
60%
50%
40%
30%
20%
10%
0%
Yes No
INTERPRETATION
The above analysis shows that 68 % people say that Servis company
does not offer cut price sale facility at special occasions and 32% people say
that company offer that at special occasions.
89
FINDINGS AND CONCLUSION
90
After collecting the data, analysis is made and it has been found that the
main factors that are causing the decline in market share of Servis as
following:
 Most of the customers are not willing with Servis high fix price
policy and due to which they mostly purchase shoes of local and
chines companies like English shoes, Mili shoes, Star shoes etc.
 Mostly SSC does not provide discount on purchasing and due to this
reason its sale volume is decreasing.
 There are 52% women in our total population and there are few
designs in shoes for ladies and due to this there is little charm for
ladies in Servis. This is also a main reason for declining number of
customers of Servis.
 SSC returns the complained shoes within three weeks which is

lengthy period that creates the bad image of company in the mind of
customers.
 Servis prices are high as compare to Bata due to which people prefer
Bata shoes because both companies’ shoes have mostly same quality.
91
 At special occasions local shoes companies provide “cut price sale”

facility but SSC does not do so. This is also main reason for declining
number of customers of Servis.
 There are 414 outlets of Bata in Pakistan but servis has 258 due to less
number of outlets some people feel difficulty to reach to shops of

SSC.
 As compare to local and chines companies shoes Servis designs are

not very attractive due to which people do not prefer it mostly.
92
93
STRENGTHS
 It is largest shoes manufacturing company in

Pakistan.
 The distribution network of company is strong.
 Quality of shoes is very well.
 SSC has its own outlets throughout the country.
 Good image of company in the mind of

customers.
WEAKNESSES
 High price products as perceived by the

customers.
 No discount policy.
 Less verity for ladies.
94
OPPORTUNITIES
 There is room for SSC to open more outlets in

country.
 Company can produce low price products in order

to capture the lower class that can increase its
sale.
 Company can open its outlets in other countries.
THREATS
 SSC has threat from its domestic rivals like Bata.
 Inflation is also a fearful threat for SSC.
 Due to WTO more foreign companies can enter in

country and can become competitors of SSC.
95
96
SUGGESTIONS
There are always loopholes present in the working of organization,
otherwise it could be the model organization on the universe because the
man is the part of burning fuel of the organization who normally makes
many mistakes due to their there mismanagement and mishandling of
resources, companies cannot achieve their estimated targets. Following
are some of the suggestions and recommendations to increase the work
life and sale volume of SSC.
Prices should be reduced

Servis shoes designs are better as compare to Bata but its as compare to Bata
if Servis does a little deduction in its prices then it can prices are high easily
capture the customer of Bata and can earn more profit by increasing sale
volume.
Discount and special incentives

Discount is an important tool to get the loyalty of customers. As Servis is
offering 20% discount on online purchasing, such a discount policy should
also be provided on direct purchasing because maximum population of our
country has little idea about online business.
Separate outlets for ladies Varity
97
There is little charm of Servis among ladies. Company can get maximum
attention of females if company open separate outlets only for ladies with
maximum Varity. In this way Servis can also get competitive edge on Bata
because Bata also has not Separate shops for ladies.
 Establishment of new outlets

There are only 258 registered outlets of Servis in Pakistan. Company
should open more outlets for the convenience of customers.
Frequent meetings with distributors

Company should do frequent meetings with distributors in order to get
knowledge about their problems and customers demands and needs.
Opening shops in big plazas

Servis should open its shops in big plazas like pace, Al_Marjan, Citi Center
etc because here the company can sell its expensive range easily.
Innovation in designs
As compare to local and chines shoes Servis designs are not very well. SSC
should make its designs as per the requirements of general public.
Early settlement of claims

SSC settles its shoe claims in three weeks which is a lengthy period. It
would be appropriate to give the authority of this settlement to shops
managers because customer’s satisfaction enhances the corporate image.
98
Establishment of sales promotion institutions

Servis Company should open sale promotion offices in big cities like
Lahore, Karachi, Multan, Rawalpindi, Gujranwala, Sargoda, Faisalabad etc.
these institutions will help to promote the sale volume of SSC.
Regular market surveys

Regular market surveys and targeted researches of different brands should
be undertaken, especially of articles with high sales. These surveys can not
only help the designers in new product designing but can also be invaluable
for to the planning department for prediction of future sale.
Encouragement of dealers
To encourage the dealers, a sort of competition should be started like the dealers who
give the maximum sales within minimum outstanding and is practically No.1 in
respective time period should be given gifts like motorcycle etc.
Exhibitions
Arrange events and exhibitions for the public, which tells the feature of
Servis Company and give them gifts.
Cut price sales

At special occasions like Eids company should conduct cut price sales in
order to attract maximum customers.
99
100
BIBLIOGRAPHY
During the research process, besides our practical research, we also

have consulted some books about our practical research for completion of
project in effective manner. A list of all references, which has been
consulted and the data has been derived from, are given as under:-
 Class Notes provided by Prof. Naveed Iqbal sb.
 Business Research Methods by “ William G. Zikmund”
 Research Methods For Business by “Uma Sakaran”
 Servis and Bata’s Annual reports.

 Field surveys through which data has been collected from different
types of questionnaires and different areas of Gujranwala city.
101
102
www.Servis.com
www.Bata.com.pk
www.Google.com
103

Service Project

Uploaded by

Copyright:

Available Formats

Service Project

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Service Project

Uploaded by

Copyright:

Available Formats

RESEARCH PROJECT ON SERVIS SHOES INDUSTRY

 All categories of leather footwear and sports

 Canvas shoes of Men, Women and Children.

 Rubber Sandals and Sleepers.

 Safety shoes and Footwear for defense force.

 Bicycle tiers and tubes.

 Car tires and tubes.

 Motorcycle tires and tubes.

The company’s brand “SERVIS” is a house hold name

Position in exports and has won FPCCI trophy for

Service footwear are available throughout Pakistan at

Service has been a trendsetter in footwear fashion in

BRIEF HISTORY OF THE

In this connection the first step was taken and

Export market realizing that the country was in need

The exports were made on quality and delivery at the

 Service Industries Ltd. (SIL)

 Shoe Factory Gujrat.

 Shoe Factory Muridke.

 Tier and Tube Project Gujrat

 RAG Division Muridke.

 Dare-Salaam Textile Mills Limited.

 The Hilal Tanneries Ltd.

 Prestige Industries (Pvt.) Ltd.

 Service Sales Corporation Lahore Pvt. Ltd.

SERVICE INDUSTRIES PRIVATE

 Mr. Shahid Hussain (Chief

 Mr. Ijaz Butt

 Mr. Mohammad Akram

 Mr. Zahid Hussain

 Mr. Riaz Ahmed

 Mr. Asif Jamil (Rep. of NIT)

 Mr. Fiaz Ahmed Longi (Rep. of NIT)

 Standard Chartered Bank.

 United Bank LTD.

 Muslim Commercial Bank LTD.

 Union Bank Limited.

 Faysal Bank Limited

Service House, 2-Main Gulberg, Lahore-54662

 Muridke-Sheikhupura Road, Muridke.

Source: Company’s Annual Report.

 Our products should meet the

 Our basic concern is to satisfy

 We should respect our competitors.

 Employees are as important as external

 Never be satisfied with the level of quality,

SERVIS SHOES INDUSTRY

 But it is also focusing on children and

 So, we can say that target market of SIL

 Some foreign countries are also target

 Normally, the target market of servis is the

STYLE AND DESIGNS DECISION

In servis industry Ltd the prices are set independently

is responsible of what. There should not be any

Service Industries (Pvt.) Ltd. Just only performs

Finance /Export /Import

Manager Accounts Manager finance

Asstt. Manager Assistant Assistant

SERVIS SHOE INDUSTRY (PVT.) LTD.