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7/31/2019 Finalllll(1)retailll

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Service Sales Corporation (Pvt.) Ltd. (SSC) is todays Pakistans leading footwearretailer which is also diversifying into other businesses.Servis Group is one of the mostrespected corporate citizens of the country and has a rich heritage spanning over half acentury. Today the Group is Pakistan's largest footwear manufacturer and exporter withinterests in wholesale and retail sectors. With a growing portfolio of brands and anationwide network that touches millions of lives everyday, Servis is one of the foremostbrands in the country.

The Group is the largest footwear manufacturer, retailer, and exporter operating in thecountry and has overall sales of more than PKR 12 billion.

History:

Ch. Nazar Muhammad (Late), Ch. Muhammad Hussain (Late) from Gujrat district andCh. Muhammad Saeed (Late) from Gujranwala District started this business in 1941 at

a small scale in Lahore. At that time, they were only manufacturing handbags and some

other sports goods. Within years their business flourished remarkably and they were

supplying their products to every corner of India at the time of Partition.


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In 1954, they installed a shoe manufacturing plant at industrial area Gulberg, Lahore.

The industry started manufacturing various types of shoes. Later management shifted

the factory from Lahore to Gujrat. Service Sales Corporation (Pvt.) Ltd. was established

in 1959. Humility, fairness, and respect were the values close to the heart of this

business founders and it were these values that led to phenomenal success of the

Group over the years.

Today, the production side of the company has flourished into Service Industries

Limited (SIL) which has world-class shoes, tyres, tubes, and rubber production facilities

in Gujrat and Muridke.

The following are the brands under the umbrella of Servis group:

Servis is proud to be associated with leading international and national footwear brands

including Nike, Hush Puppies, Pierre Cardin, Urban sole, CAT and Ecco. These brands

are placed under the head ofSHOE PLANETa special and Pakistans first multi- brand

mega shoe store.

The availability of these brands at our retail stores provides more choice to our


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customers and we see great opportunities going forward with the wave of brand

partnerships.

Following are the basic objectives of Service Shoes:

1. Generating economic activity

2. Maximizing shares holders value

3. Increasing sales and profitability

Market segmentation:

Being a family store service shoes caters to masses and these masses are divided

demographically based on income level. For every segment a retail solution has

designed keeping in mind the requirements of particular segment.

The following are segments and retail solutions that are identified and designed on thebasis of income levels:

C category customers: This is the first category of customer and fall in the middle

lower income group and for this segment of market a retail channel with the name of

service factory outlet is designed.


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Service Factory outlets: This specific channel is designed to cater the needs of Ccategory customers. In these outlets rejected, B pair and export left over products are

placed. Now B category customers also come to these stores for shopping.

Service A Pair: these are regular stores of service shoes and these stores are alsodesigned to cater the needs of C and B category customers.

Service Mega Store: mainly situated in posh areas and is designed on almost 4500square foot for A class customers. Example: Service Mega Store in MM Alam Road

Shoe Planet: This retail solution is not run with the name of Service and caters to AA+ customer.

Service shoes cater to masses ranging from C-B class customers mainly and A and A+

customers to some extent with a different retail solution.

Service shoes, depending upon the category of customers, follows different retail format

for every retail outlet. Retail format for service factory outlet is totally different from the

format of Service mega store based on the expectations, and experience of customers.

Value, product quality and variety are considered in appropriate ratios by keeping in

mind the category of customers while selecting a retail format. Therefore the way of

prices, way of displays, number of designs in display and style differ in every retail

channel. In retail format the overall merchandising and product assortment strategy also

differs.

For example certain items are tend to display in every retail outlet for every category ofcustomers and certain items are restrict to certain channels only as they do not fit in the

requirements of other category.


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1. Strong brand name is one of the strongest competitive advantages to Service

Shoes to compete in the market. Service Shoes is in the market for more than 50

years.

2. Value added services and high end quality is another competitive advantage

that satisfies the customers and creates brand loyalty.

3. Accessibility and availability: this is the second major competitive advantage

of Service Shoes. Service Shoes is currently operating 500 regular stores

nationally and there are 1500 dealers of Service Shoes in Pakistan.

Customer Buying Behavior

Accessibility and Visibility:

500 outlets nation wide ensures and enhance visibility and accessibility of their outlets

and call for action promotional campaigns create brand awareness among the masses.

On the other hand, annually feasibility analysis is designed on the basis of growth

strategy in which every year 20 new locations are proposed to open new stores.

While selecting a location customer convenience is considered firstly and thereforecertain standards are followed to analyze the location potential. In order to make the

accessibility easier for the customers always prime locations are chosen.

Brand Awareness:


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To make their positioning strong in the minds of customers service shoes spend 10-

20% of their budget on marketing expenditures. ATL advertisements include TV ads,

radio, newspapers ads.

Managing Customers expectations and goodshopping experience:

Service shoes tend to fulfill generic needs of customers regarding his/her shopping

experience at their retail outlet. These generic needs are as follows:

3. Acknowledgement

4. Clean environment

5. Availability of the product required

6. Hospitality

Service Shoes has designed certain standards to meet customers expectations and

tend to follow these standards to fulfill the above mentioned needs of customers. The

employees are given training for implementing these points in a proper manner.

Mystery Shopping: the concept of mystery shopping is follow to evaluate the retail

store regarding the level of customer service and management of customer

expectations as per the standards developed by the organization. Every retail store and

its employees are rated in this mystery shopping by a third party person in order to

gather fair results.

Store Layout:

Store layout is designed as per the requirements of retail channel and category of

customers. Similarly, product assortment is done keeping in mind the market segment

to which store is catering and prices are displayed accordingly.

Professional Sales Call:

Employees are well trained for attending the customers and making their shoppingexperience a convenient one. Following steps are followed by sales person while

dealing with cusomers

1. Acknowledge:

The employees are trained to acknowledge the customer firstly in a respectable

manner.


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2. Judge the persons requirement:

After acknowledgement sales person are advised to leave the customer to roam

about in the store to have a holistic view of the products available. That is helpful

for the customer to make up his/her mind about what to purchase.

3. Identify the need:

After 2 minutes of waiting if the customer itself does not call the sales person.

Salesperson should come to the customers and ask what he/she is looking for.

Example: how can I help you sir?

4. Bring the required product along with at least one more similar product for

trial:

After knowing customer requirement sales person bring the specific product for

trial along with one or more similar product.

5. Describe the products qualitative features

Sales persons are trained to explain salient features of the product. Example:

warranty, water proof, leather or plastic material etc

6. Suggestive selling: this technique is used by the employees once the customer

has chosen one of the products to buy and is ready to pay for it. Before closing

the deal the sales person are advised to use cross selling, up selling and impulse

purchase techniques. Example: if the customer has bought black shoes, sales

person will advise him/her to buy polish or socks as well.

7. Closing the deal:

The sales person will make customers payment clear from the cash counter, will thank

the customer for his/her visit and if possible will drop the products in his/her car.

Hassle free completion of transaction:

The employees of the store are advised to acknowledge customer within first 3 minute

of his/her entrance in the store. If all the employees are busy even then one of the

employees should give him/her a call that the person will be attended within next 3

minutes.


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Closing the deal: once the customer has agreed to purchase something from the store,

the same sales person who was attending the customer, will make his/her payment

clear form the cash counter.

in order to ensure hassle free transaction, electronic billing named as E-cost by

Microsoft MRS.

Customer Service and customer feed back

Service Recovery:

Most of the time customers complaints are handled at the spot. Return policies and

guidelines are developed by the organization to provide after sales services. Whereas,

the store manager is also empowered to take certain actions in case of severesituations.

Helpline service: this service is provided at mega stores currently. The purpose is to

provide customer convenience to give feedback about the mismanagement or any other

unethical issues done and created by the store management.

Comment Card: a customer service comment card is placed on the stores for

customers feedback and these are available both at big and regular stores.

Email: a customer can also send email if he/she has any grievance about his/her

shopping store in any of the service retail outlet.

Return Policy: the product can be returned by the customer within 30-60 days of

purchase along with the bill receipt. The product will be taken back, repair and changed

if the issue lies at the end of company.

Products are placed on category basis and brand wise in the store.

On the left side gents brands are assorted and on the right side ladies brands are

placed.


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Being a family brand Service Shoes cater to masses and fall somewhere in mid level

prices. Mainly cost based pricing is used to accumulate a products final price and

following formula is used:

Cost of the product+ profit margin +competition/market analysis..

Value based pricing is used for premium brand for example Don Carlos etc.

Trade Area:

The country is divided in three regions north, south and central. There are 6 districts in

every region. A specific trade area has not been defined for opening a retail outlet.

However, in order to apply penetration strategy opportunities for opening new stores are

identifies wherever a new society emerges.

Most of the stores located in strip centers. The main purpose for choosing this location

is to create customer convenience. Purchasing footwear is comparison shopping

behavior of customer. And customer wants to devote considerable time and effort to

analyze alternative in order to make right decision. In order to provide convenience to

the customer strip centers are best option because in a strip centre alternative/

competing brands are in line and it is easier for customer to walk in and out from store

to the other.

While selecting a site for opening a new store, traffic flow is analyzed in order to

measure the sites attractiveness. And all the stores are rental stores.

Otherwise in selection of a location for a new store certain parameters are analyzed

including selling size, front of the store, stock room area of the store depending upon

the retail channel specifications.

As per the policies store area is preferred to be of minimum 1200 square foot. However,

some stores are of only 300 square foot as well. And Service Mage Store is of 4500square foot.

Anchoring:service shoes prefer to be near to its competitors BATA because it helps

in generating more traffic and foot fall area.


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In store Facilities:

Following are some of the in store facilities that are provided by Service stores to

its customers

1. Electronic point of sale in order to ensure hassle free completion oftransaction

2. Clean and convenient environment

3. Play areas for children

4. Credit card facility etc

Following communication channels are used to create brand awareness, and to run

promotional campaigns. For outside communication Above the line advertisement is

done through television, Radio, newspaper and hoardings etc

For in-store communication Visual merchandising is used.

Promotions:

Promotions are need based and designed accordingly. For example summer and winter

sales, price rebates-10-50% discount, sales promotions etc

CSR activities are also conducted.Servis has been a regular contributor to communitywelfare, charities, and causes. These activities include free shoes, sponsorships,

donations, emergencies and disasters etc

Sales person given time to time trainings for better quality customer services by training

department and are rewarded with fringe benefits in order to motivate them

Customer Satisfaction:


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Service shoes is very effectively following the concept of service profit chain as they

believe that employees are the biggest assets of the company and are important and

only source of creating customer satisfaction and maximizing the companys

profitability.

Employee satisfaction:

Compensation and rewards:

At store level, fixed plus variable salary package is given to employees. Quarterly sales

incentives, mystery shopping incentive, incentives on annual target are given to the

employees.

Employee Motivation:

Annual conference is held for sales staff and employees are also sent for overseas

training for job enrichment purposes.

Fringe Benefits:

Hajj Package is given to the employees on lottery basis every year.

Customer Satisfaction:

Measuring that whether the sales person is satisfying the customer effectively or not,the concept of Mystery shopping is used. On the other hand, quarterly sales of each

store are compared and frequency of complaints is also considered.

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