Comfort Shoes

By,

Udhaya Chandran S. B
Rakesh G. R
 Comfort Shoes
AGENDA
 Overview of Indian Footwear Industry
 Vision
 Mission
 Objective
 STEP Analysis
 Strategy
 Organisation
 Action plan & KPIs
 Financial Analysis
 Comfort Shoes
Overview of Indian Footwear Industry

 India ranks second among footwear producing

countries next to China
 Industry is labor intensive
 Huge domestic market which is untapped
 Opportunity to cater to world markets

Source : Positive Outlook for footwear and leather industry - Highlights of CII Study
 Comfort Shoes
Overview of Indian Footwear Industry

Employment Skills required Export Growth (in Million USD)

2,000

1475
1,500
7% 1%

1,000
92%
537
500
315
Unskilled & semi skilled Technical
40
Managerial 0
1977-78 1987-88 1997-98 2007-08

Source : Positive Outlook for footwear and leather industry - Highlights of CII Study
 Comfort Shoes

Vision :
To be the market leader for
Shoe industry in South India .
 Comfort Shoes

Mission :
Delight the customers by
offering the quality products at
affordable cost
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Objective :
 50% of our customers should return within
6 months for an additional purchase
 To create and sustain annual profit by 15%
 Increase Range of Products
 To create a strong brand identity in South
India to achieve Market share by 35%
 Comfort Shoes
Location
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Facts about Chennai
 Gateway of South
India
 Educational Hub –
1389 schools & 1504
colleges
 More than 9 major IT
companies listed in
Fortune 500 companies
has a branch
 More than 50% of
total leather export is
from Chennai

Source : Wikipedia – Facts about Chennai

 Comfort Shoes
STEP Analysis
Political Economic
• Ranks 4th for ease of doing business • Exports 50% of leather products*
across India# • Good Road, ports & rail systems to
• Chennai was ranked the second for connect to major cities
trading across borders# • $100 billion economy by 2025*
• #Source – Doing business database – • Source - http://www.amritt.com
Apr 2006 (Appendix 111)

Social Technological
• 5th largest city in terms of population • Low cost of production
– 8.2 Million • Cheap Labor
• Major tourist attraction place • Abundant raw material
(Gateway of South India) • Source - Positive Outlook for
• Source - http://www.citehr.com/ footwear and leather industry:
Highlights CII Study
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Strategy :
 Collaboration with schools & SMEs
 Premium Coupons & Discounts to customers who buy
products within 6 months
 Provide consumers with technical knowledge on the
proper fit and style of athletic foot wears
Access to special vendor discounts including Nike,
Reebok, Fila, Adidas etc.
 Comfort Shoes
Organisation Structure

Manager

Procurement Marketing
Executive Executive

Sales
Storekeeper Cashier Executives
 Implemetation plan for 2011
SI.No Actions Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Get Licence & approach
1
bank for loans
Find a right Location
2
& sign the contract
3 Equipments & Offi ce setup
4 Hiring Staff
5 Induction & training to Staffs
6 Advertising
7 Sign the contract for Dealership
8 Procurement
9 Opening day of Business
10 Target Setting

11 Review Mechanism
KPI's:
1. Get Licence & Loan to be sanctioned for 0,12 Mio Euro by 15.01.2011
2. Location to be found in Chennai and lease contract to be signed by 31.01.2011
3. All interior design, Office setup & furnitures to be furnished by 30.03.2011
4. Conduct Interview & recruit 12 Staffs to be hired by 30.04.2011
5. 2 week induction training with related product information & company objectives to staffs by
15.05.2011. Performance evaluation through tests (minimum 60% to pass) by 30.05.2011
6. To advertise in 2 local newspaper (daily once), 1 local TV channel (daily) & Bulk SMS (5000
SMS/week) for May & June
6. From July to Dec, advertise in 2 local newspaper (monthly once), 1 local TV channel (weekly
once) & Bulk SMS (3000 SMS/week)
7. 2 Dealership contract with local manufacturers & 3 with branded to be signed by 30.05.2011
8. Inventory & procurement of all items before 15.06.2011
9. Inaguration by famous South Indian film star by 28.06.2011
10. Set target for sales team to achieve sales target of min.3000 pairs/month by 15.07.2011
11. Review planned performance(3000 pairs/month) vs actual every month.
 Implemetation plan for 2012
SI.No Actions Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1 Business Alliances
2 Salary review for Employees
3 Sales promotion
4 Launch new products

5 Market research
Find a second Location &
6
sign the contract
7 Offi ce & Equipment setup
8 Review Mechanism

KPI's:
1. Tie up with 2 SMEs to provide industrial safety shoes & 10 schools to sell school shoes
& 5 sport clubs to sell shoes by 28.02.2012
2. Salary review for employees based on company performance & targets achieved
with rating scale of 1-5 (1-max & 5-min) by 30.03.2012
3. Special promotional offers for school & college (10% discount) - beginning of academic year in
March & April
4. Introduce new products like shoe polishes, brushes, wallets & purses by 30.06.2012
5. Conduct Market surveys & research to find a new location in Bangalore
for 2nd shop by 30.08.2012
6. Location to be found in Bangalore and lease contract to be signed by 31.10.2012
7. All interior design, Office setup & furnitures to be furnished by 30.11.2012
8. Review planned performance(4200 Pairs /month) vs actual every month
& change strategy if it is not within targets
 Implemetation plan for 2013
SI.No Actions Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1 Hiring & Induction

2 Inagurate facilities in Bangalore

3 Salary review for Employees
4 Sales promotion
5 Website development
6 Introduce leather products

7 Online catalogs
8 Review Mechanism

KPI's:

1. Hire 10 staffs for new location in Bangalore & induction training for new staffs by 28.02.2013
2. Open 2nd shop in Bangalore by 15.02.2013
3. Salary review for employees based on company performance & targets achieved
with rating scale of 1-5 (1-max & 5-min) by 30.03.2013
4. Print 1000 flyers & distribute across Bangalore & Chennai by 30.04.2013
5. Website to be launched by 30.04.2012
6. Introduce new leather accessories like jackets & bags in both locations by 30.06.2013
7. Online Product catologues (for online purchase) to be made available by 30.07.2010
8. Review planned performance(5000 pairs / month) vs actual every month & change strategy if
it is not within targets
Comfort Shoes
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 Thank You

Questions ?