Internship ReportMeasuring & Managing the Factors behind Customer Satisfaction: A Study of Apex Adelchi Footwear Limited

Exam Roll: 080070Internship Report on

Measuring & Managing the Factors behind Customer Satisfaction: A Study of Apex Adelchi Footwear Limited

Prepared For

Chairman

Internship Placement CommitteePrepared By

Exam Roll: 080070

Class ID: 777

4th year, 8th semester

Batch No. 17th, BBA Program

Academic Session: 2007-08

Institute of Business Administration (IBA-JU)

Jahangirnagar University, Savar, Dhaka-1342

Date of Submission: 14 May, 2012May 14, 2012

Chairman

Internship Placement Committee

Institute of Business Administration

Jahangirnagar University

Savar, Dhaka - 1342.

Sub: Submission of Internship Report.

Dear Sir

I have successfully completed my internship program in Apex Adelchi Footwear Ltd. During this period of three months I have got some unique opportunities to go through some fruitful job experiences. Those experiences enabled me to bridge the gap between classroom learning and real life situations to a great extent.

Now as a mandatory part of this internship program, I am submitting my internship report entitled Measuring & Managing the Factors behind Customer Satisfaction: A Study of Apex Adelchi Footwear Limited. I have tried to put in my best effort for this report and enjoyed working on this report. I will be pleased to be available if any further explanation is required.Thanking you.

Yours sincerely,

Exam Roll No. 080070

Registration No. 26037

Class ID: 777

4th Year, 8th Semester

17th Batch

Institute of Business Administration

Jahangirnagar University

Savar, Dhaka.

Acknowledgement

This report is the outcome of the contributions and sincere cooperation of different persons. I could not possibly thank all of those marvelous people who have contributed something of them directly or indirectly in preparing this report successfully. They are off course some very special people who cannot go without mention. It gives me immense thank them for their cordial cooperation and encouragement.

First of all, I would like to express my gratitude to the almighty.

I express my heartiest gratitude to Mr. Alamgir Hossen, Lecturer, Institute of Business Administration, Jahangirnagar University for his valuable guidance, scholarly direction, and unconditional support during my tenure of the study. I have learned a great deal from him. His counseling made me more sincere and responsible.

My honest admiration goes to Mr. Khandker Swanan Shahriar, General Manager (Marketing) of Apex Adelchi Footwear Limited, for his precious time, endurance and hints in preparing the report.

I would like to express my sense of special gratitude and appreciation to Ms. Yashna Chowdhury, Executive Brand Manager (Marketing), Apex Adelchi Footwear Limited, for her heartiest supervision and cooperation.

Finally, my heartiest appreciation goes to the other personnel of Gallerie Apex and various stuffs of different outlets of Gallerie Apex associated with my activities as they give me their valuable time and data about that organization.

Table of contentsSl. No.TitlePage No.

Executive Summaryix

Introduction

1.1Overview1

1.2Problem Definition1-2

1.3Research Objectives2

1.4Methodology

1.4.1Selection of Sample2

1.4.2Data Gathering Method2

1.4.3Data Gathering Instrument3

1.4.4Data Collection Time3

1.4.5Data Analysis3

1.4.6Basic Research Design3

The Organization

2.1Historical Background4

2.1.1Company Profile4

2.1.2Board of Directors5

2.1.3Associate Companies5

2.2Vision, Mission & Values6

2.3SWOT Analysis7

2.4Gallerie Apex7

2.5Operating Functions of Gallerie Apex

2.5.1Human Resource Division8

2.5.2Product Development and Market Consultant9

2.5.3Sales Department10

2.5.4Marketing department10

2.5.5Management & Information System11

2.5.6Supply Chain & Merchandising Procurement Department11

2.5.7In-process Quality Control12

2.5.8Producer & Practice of Product Pricing12

2.5.9Store Display of Gallerie Apex12

Job Description

3.1Nature of the Job13

3.2Specific Responsibilities of the Job13

3.3Observations13-14

Findings & Interpretations

4.1Customer Satisfaction15

4.2Customer Satisfaction Factors of Gallarie Apex16

4.3Survey Findings

4.3.1Respondent Profile

4.3.1.1Gender16

4.3.1.2Age17

4.3.1.3Monthly Household Income18

4.3.2Comparison with Other Branded Shoes

4.3.2.11st & 2nd Choice of Customers18

4.3.2.2Purchase Behavior of Last 3 months19

4.3.2.3Price vs. Quality20

4.3.3Factors & Reasons behind Customer Satisfaction

4.3.3.1Importance of the Factors21

4.3.3.2Forming Opinions about GAPX22

4.3.3.3First Association with GAPX22

4.3.3.4Comparison of GAPX Stores with Other Shoe Stores23

4.3.3.5Satisfaction of Footwear Needs from GAPX24

4.4Summary of the Findings25-26

Recommendations & Conclusion

5.1Some Possible Strategies to Improve Customer Satisfaction27

5.2Recommendations27-28

5.3Conclusion28

References29

Appendices

6.1Questionnairei-iii

List of Tables

Sl. No.TitlePage No.

01.Gender based categorization16

02.Age based categorization17

03.Income based categorization18

04.Name of 3 Footwear Companies18

05.Purchase Behavior19

06.Price vs. Quality of GAPX20

07.Importance of Factors20-21

08.Forming Opinions21

09.First Association with GAPX22

10.Comparison of GAPX Stores with Other Shoe Stores23

11.Satisfaction of footwear needs from GAPX24

List of Figures

Sl. No.TitlePage No.

01.Gender17

02.Age17

03.Monthly Household Income18

04.1st & 2nd Choice of Customers19

05.Shoes Purchased by Respondents in Last 3 months19

06.Price vs. Quality20

07.Importance of the Factors21

08.Forming Opinions about GAPX22

09.First Association with GAPX22

10.Comparison of GAPX Stores with Other Shoe Stores24

11.Satisfaction of Footwear Needs from GAPX25

Executive SummaryToday business world becomes more competitive. If a business fails to fulfill the consumers demand then it is driven out from the market. Thats why consumer demand is the most challenging task for a business to fulfill. To fulfill it, business has to analyze its consumers demand time to time. The researcher has done the same job- Judgment of Consumer characteristics to know their expectations to satisfy their needs. Here one of the leading local branded footwear company APEX ADELCHI FOOTWEAR LIMITED has been picked to judge its consumer satisfaction.

Consumer satisfaction are the factor by which the seller can understand who have really accepted the product. It is the level of their comfort and satisfaction of using a product. This report will help determine the factors behind satisfaction of the consumers who wear GAPX footwear.

The research is based on the data collected by personal interview with the consumers. A ranking questionnaire with few open-ended questions has been designed for that purpose. The sampling unit covers 720 people combining both male and female from different walks of the Dhaka Metropolitan City. As the size of population is unknown, convenient sampling is done. The research covers only Dhaka city and no hypothesis has been made.

This report will help to those who are willing to prepare a report on related topics. This will help the people to know about their own expectations and demands from GAPX. The learners will be able to use this as their reference curriculum. This will help new companies or entrepreneurs to launch a new footwear brand in Bangladesh.Chapter 1

Introduction 1.1 Overview

Attitude is a concept of psychology and it means persons overall evaluation for any concept or object. It is the approach which creates the intention towards the object to behave in good or bad way. Consumer attitude and behavior are the factors by which the seller can understand who have really accepted the product. It is the level of their comfort and satisfaction of using a product. This survey will help determine the attitude of consumers towards foot wears.

The purpose for doing this report will be to know the factors behind consumers satisfaction for foot wears. The reason also will include making an attempt to help those who are willing to prepare a report on related topics in future. The credit will also go to the researcher/s and the entrepreneur/s who have laid the groundwork for the research.

The environment will include both the general and the operating environments. Technology and economics will play vital roles in this business. The report will be helpful to understand customers psychology regarding purchasing foot wears.

1.2 Problem Definition

The research study is about Measuring & Managing the Factors behind Customer Satisfaction: A Study of Apex Adelchi Footwear Limited. Information will be gathered by collecting primary data. Additional background information is needed from the company details.

The statement of the problem is divided into two categories. They are:

a) Broad statement of the problem:

The broad statement of the problem is identifying the factors from an appropriate perspective. The appropriate perspective of the problem is originated from the rapid changed attitude of the consumers shopping behavior and foot wear sense. To exist in such a competitive environment, profit seeking organizations should identify the consumers attitude towards buying designer foot wears. .

b) Specific components of the problem:

The key or specific component of the problem is to measure and manage the factors according to customers satisfaction. The attitude is identified by conducting a survey with ranking questionnaire among the potential consumers of foot wear through asking them a specified number of questions. Finally, analysis and interpretation of the gathered data was made to reach a well-reasoned conclusion that will show the factors behind customers satisfaction of Gallerie Apex foot wear.

1.3 Research Objectives

The report will have a broad objective and some specific objectives.

Broad objective:

To measure and manage the factors behind consumers satisfaction of buying branded foot wearsSpecific objectives:

To categorize the consumers by their demographic characteristics (Gender, Age, Income)

To make the comparison of buying behavior of consumers between the leading Bangladeshi footwear companies products

To find out the factors and reasons behind customers opinions for GAPX footwear

To provide a brief overview of Apex Adelchi Footwear Limited (mission, vision, value, associate companies) and Gallerie Apex (HR department, sales & marketing department, production & quality control department, MIS department)

1.4 Methodology

1.4.1 Selection of Sample

The residents (both male and female) of Dhaka city is the source of the data. Sample is necessary to collect data. The sample size is 720. The entire sample is randomly selected.

1.4.2 Data Gathering MethodPrimary method is used to collect the data. The information is gathered from the 720 respondents from different major locations of Dhaka city.

1.4.3 Data Gathering InstrumentA structured questionnaire of ranking scale (ranking chart) is used to collect the information from the respondents.

1.4.4 Data Collection Time

The data is gathered by the researcher/s. It took 3 months (90 days) just to collect data. The researcher/s had little observation to the respondents.

1.4.5 Data Analysis

The data is collected through a survey ranking questionnaire. To analyze the collected data, there have been used some statistical tools (Microsoft Office Excel Table) and graphical representation (Microsoft Office Excel Chart) to find out different types of analytical results and interpretations.

And to know the company overview better, sources were explored for primary information and data. But hardly any updated data could be found. In the absence of updated information and data dependency on secondary has been inevitable. Data has been collected by interviewing the responsible officers and from some documents & statements printed by the Apex Adelchi Footwear Limited, the annual reports of AAFL and the website of AAFL. Still wherever possible primary data has been tried to use.

1.4.6 Basic Research Design

The respondents will give their answers by checking how much better or how much worse with the statements and what is most important or what is least important in the list. Some open ended questions will be also asked. It will be a descriptive research. The information will be collected by asking questions to some residents (both male and female) of Dhaka city. Objective answers can be obtained. The survey question will be worded in easy way so that every respondent can understand it.

Chapter 2

The Organization 2.1 Historical BackgroundApex Adelchi Footwear Limited (AAFL) is a leading export-oriented leather footwear manufacturer in Bangladesh. (Yashna) It is the largest exporter of leather footwear from Bangladesh. (Yashna) Currently holding the second position, the company is also one of the fastest growing footwear companies in the local market. (Yashna) Despite the effects of global economic turmoil and scarcity of raw hide due to natural disasters, the company has performed well in the last couple of years. (Yashna) Bangladesh is major shoe retailer in Western Europe, North America and Japan. (Yashna) AAFL was incorporated on January 04, 1990. In the same year it went into commercial production with an installed capacity of 1000 pairs per day and 350 employees. (Yashna) Today the company is producing 15000 pairs of shoes per day, employing over 7,500 people in two factories. (Yashna)

Apex Adelchi has quickly established itself as one of the most recognizable brands in the footwear market of Bangladesh. (Yashna) Apex Adelchi accounts for 45% of the total footwear exports from Bangladesh. (Yashna) With 6% of market share in local market, they are behind only to Bata Shoe, which holds 22% of market share. (Yashna) Because of their superior quality compared to that of Bata, Apex Adelchis products have given the local market a very good alternative to Bata. (Yashna) Although the company remains a predominantly export-oriented company, they have also taken the local market very seriously, which may prove to be decisive in the long run. (Yashna)

AAFL Company has exported more than 3.6 million pairs of shoes to Europe, Japan and USA per annum. (Yashna) Their earning was more than 4,000 million Euros from export. (Yashna) They have concentrated mainly on the export market. (Yashna) These export market comprises them more than 90% of their sales. (Yashna) They also have a growing local market for their products. (Yashna) Their local products were sold through a chain of retail shoe outlets in Bangladesh by the name of Gallerie Apex. (Yashna)

2.1.1 Company Profile

Name of the Company: Apex Adelchi Footwear Limited.

Date of Commencement of Business as Apex Footwear Limited: January 4 1990.

Name Change to Apex Adelchi Footwear Limited: December 27, 2006.

Type of Company: Public Limited Company

(data collected from apexadelchi.com, 2010)

2.1.2 BOARD OF DIRECTORS

Syed Manzur Elahi :Chairman

Syed Nasim Manzur :Managing Director

Syed Gias Hussain :Deputy Managing Director (CFO)

Munize Manzur Khasru :Director

Syed Gias Hussain :Director

Niaz Ahmed Choudhury :Director

Adelchi Sergio :Director

Abdul Momen Bhuiyan : Executive Director

A.A. Mosaddeque :Executive Director

Dilip Kajuri :Financial Controller

S.M. Shahjahan :Company Secretary

Pradip Kanti Saha :General Manager

Atiqul Islam :General Manager (Leather)

Syed Md. Mustaque :General Manager (Factory)

Md. Mominul Ahsan : Head of Human Resources

(data collected from apexadelchi.com, 2010)

2.1.3 Associates Companies

Apex Tannery Limited

Adelchi Footwear Bangladesh Limited

Apex Pharma Limited

Grey Advertising Bangladesh Limited

Quantum Marketing Research BD Limited

Mutual Trust Bank limited

Pioneer Insurance Company Limited

Gallerie Apex

(data collected from apexadelchi.com, 2010)

2.2 Vision, Mission & Values

2.2.1 Vision

AAFL is committed to productivity and quality growth to attain its objective of being a leading footwear manufacturer of Asia through its vision of Honest Growth. (Yashna)2.2.2 Mission

To achieve the vision of honest growth, AAFL has set their missions---

To ensure sustainable growth

To be a vendor of choice for our customers

To create value for our shareholders

To be proactively compliant with global best practices & standards

To be a responsible corporate citizen

(data collected from Yashna)

2.2.3 Values

With the appliance of vision and mission goal, AAFL is very much committed to their core values which are the USP for their product success in the local market. (Yashna) AAFLs values are---

2.2.3.1 Respect for People

Demonstrate respect by developing our people and helping them to achieve high performance standards by treat all people with dignity.

2.2.3.2 Integrity

Honesty - Walk the talk.

2.2.3.3 Sense of Urgency

Strive for speed and simplicity in everything we do.

2.2.3.4 Empowerment

Encourage and reward of self-confidence and initiative required accountability.

(data collected from Yashna)

2.3 SWOT Analysis of Apex Adelchi Footwear Limited 2.3.1 Strengths

AAFL has advanced machines and skilled manpower which make it possible to produce high quality footwear. As a SBU of Apex group, it also has good financial backup. As a partner company of Adelchi, Apex gets product designs from them which make it possible for them to follow Italian fashion trend. They have renowned brand image in the footwear market. (Yashna)

2.3.2 Weakness

AAFLs product price is comparatively high. On the other hand, their ladies and kids footwear brands are not that much strong. Furthermore, they have to depend on foreign suppliers for raw materials and design support. (Yashna)

2.3.3 Opportunities

The quality of the leather available in Bangladesh is really very good. Furthermore, here labor cost is low which makes it possible to produce the products more cheaply. On the other hand, young generation is now more fashion oriented and brand conscious. (Yashna)

2.3.4 Threats

Consumers are now more prices sensitive day by day. Furthermore, most of the raw materials are not locally available. Beside this, leather price is increasing day by day due to high demand. Production is also hampering due to electricity crisis. (Yashna)

2.4 Gallerie ApexGallerie Apex is the local manufacturing and retail wing of Apex Adelchi Footwear Limited (AAFL). (Yashna) While AAFL has predominantly earned both critical and commercial fame through export of high quality leather footwear in the international arena, Gallerie Apex has sought to adeptly make use of that expertise to provide high quality, fashionable footwear to the Bangladeshi consumers. (Yashna) With over 140 own retail outlets and 150 authorized resellers, Gallerie Apex ensures nationwide coverage of its diverse range of footwear for its consumers. (Yashna)Through its eight in-house brands, namely Venturini, Apex Mens, Sprint, Lotto, Moochie, Nino Rossi, Sandra Rosa, Revive and Twinkler, Gallerie Apex carries a huge selection of shoes and sandals, ensuring that each of our valued customer finds the footwear that is just right for them. (Yashna) Gallerie Apex has recently launched genuine Disney branded footwear through its stores to cater to the kids segment. (Yashna)Product category of Gallerie Apex (Yashna)MENWOMENCHILDRENOTHERS

Casual shoe

Dress shoe

SandalBoot

Long boot

SandalShoe

Sandal

School shoeShocks

Shoe care product

Others

2.5 Operating functions of Gallerie ApexOperating functions of Gallerie Apex (GAPX) is more effective according to the vision of this company. Whole process of GAPX operates a functional team on the demand of whole marketing process. These departments are shown as below:

Human Resource Division

Product Development & Market Consultant

Sales Department

Marketing Department

MIS Department

Supply Chain Department

Merchandising Department

Accounts Section

(data collected from Shahriar)

2.5.1 Human Resource DivisionThis division always monitors the facilities of employees and to check problems. There are some activities that HR department also do for the employees of Gallerie Apex like:

Human Resource Planning

Recruitment and selection

Compensation and Benefit

Accommodation

Health and safety

Employee and worker relation

Training and development

Motivation

Maintenance

(data collected from Shahriar)

Every manager and employees of every company wants a healthy and safe work environment. This environment is one of the more challenging areas for HR department. This department of Gallerie Apex provides maximum safety and healthy environment under their activities. (Shahriar)

2.5.2 Product Development and Market Consultant This product development team starts a new merchandising wing of Gallerie Apex. This section called Design Studio. (Shahriar) This is the new innovation of product development, creates new design of shoes for new generation and analyzes the market in a short time. (Shahriar) In design studio the swing machine is for the upper stretching of leather & scaling machine makes the leather thin. (Shahriar) Leather quality is very good & it imports from Pakistan, Italy & Apex own tannery. (Shahriar) Through this studio the research can done very frequently & positive way. Behind this activity design studio operates some other works for Gallerie Apex like:

Design & Technical Support

To standardize the component of product

Try to decrease the price of product

Market Trend Analysis

Find out the competitors

Short Time research

To collect the best quality shoe component

To check the quality of finished goods

Delivering

(data collected from Shahriar)

2.5.3 Sales DepartmentAlways keeps monitoring the sale condition of all galleries. Assistant General Manager of Sales and Manager of Sales always monitor the new suitable market place which can be profitable business for Gallerie Apex. (Shahriar) Under this sales department there have strong monitoring team called Area Sales Executive. (Shahriar) They are working at zonal basis like Dhaka North, Dhaka Central, Dhaka South, Chittagong, Sylhet, Rajshahi and Khulna.

2.5.4 Marketing DepartmentAccording to marketing concept, this department of Gallerie Apex holds the key to achieve its organizational goal consists of the company being more effective than other competitors in skill, delivering and communicating superior customer value to its chosen target market. Marketing department evaluate the present footwear market condition.(Shahriar) Marketing team also research how Apex brand can be established through utilize 4Ps concept in the market.(Shahriar) Gallerie Apex has a reputation in market place, so marketing department should take some initial steps for the modification or more development of this present image. There are some works those marketing departments always do:

2.5.4.1 Training and Development

Provides training for store manager, for sales man, for Area Sales Executive (ASE).

2.5.4.2 Merchandise Analysis

Marketing department analyzes the merchandise procedure. Marketing department also checks the market demand of some selected articles, monitors the sale review, checks the best sale of product, which article should be more running. (Shahriar)

2.5.4.3 Merchandise Action

If there any problem come to mind about in store merchandising, then marketing department takes initiative of that step. (Shahriar)

2.5.4.4 Market Research

Marketing Department also works about the research of footwear market. If there any scopes that can be applied for the development of product and market, this department also investigate that. Brand Development, a brand is an art of corner store of marketing. It is a name, term, sign and symbol or combination of them intended to identify the goods or services of one seller and to differentiate them from those of competitors. Marketing department also works to enlarge this brand. Corporate Branding, This marketing department of Gallerie Apex also works about corporate branding policy. (Shahriar)

2.5.5 Management and Information System (MIS)It is a set of interrelated components that collect, process, store and distribute information to support decision making. There have some role of MIS which is necessary for all business and this department of Gallerie Apex also works in this point:

Improved communication system

Data management and faster decision making

Online data access

Systematic management and information

(data collected from Shahriar)

MIS department of Gallerie Apex is much established according to their job work. This department collects sale report on entire galleries and input the database which should be daily, weekly and monthly basis. This department input the data of daily sale information like,

Actual sale amount

Number of sold pair goods.

Sold pair of shoes

(data collected from Shahriar)

2.5.6 Supply Chain & Merchandising Procurement Department

Supply chain department distributes product in whole galleries all over the country. After issuing the purchase order & manufacturing of product, supply chain work begins. (Shahriar) First product goes to Central Distribution Centre (CDC) with bills, delivery Chelan & VAT paper. (Shariar) Product comes from factory, source and import. At CDC they check the products quality, box, article no, with Quality Control report and after that official formalities they receive product. (Shahriar) At the time of Bill submission, they attach supply invoice or, Chalan. (Shahriar) Supply Chain Department has some responsibilities also. They have to consider what kind of product will go which galleries and it depends on volume of sale, customer category & position of market & sales. (Shahriar) According to this procedure, there are two basic sources of production can provide the finished products:

Shafipur Shoe Limited (own factory)

Supply sources

(data collected from Shahriar)

2.5.7 In-Process Quality Control

The quality control process of Gallerie Apex is very much effective. To check the quality of finished goods it has a specification sheet to know the total information about finished product. (Shahriar) This sheet has the serial number, color, material of goods & price. (Shahriar) At 5th level of Gallerie Apex, Quality Control room is worked by the Quality Control officer of Design studio. The system is to check the 20% of product in a lot. (Shahriar) 2.5.8 Producer & practice of product pricing

At the time of selecting price of product it should be careful that, gross margin must be minimum 40 %. (Shahriar) Buying price will always be fixed. In terms of adding VAT, amount will be 15% and it will be included in the final retail price. To analyze the total cost sheet some necessary work has to be done. (Shahriar) After calculating VAT on retail price of product, total cost (unit based) can add. Profit margin is based on amount of retail price. Cost of material, information comes from own factory Shafipur Shoe Limited. (Shahriar) There are two types of cost should be considered; Own Cost & Supply Cost. (Shahriar) According to supply cost there can be made another cost sheet include all cost of supply source. In order to make a price of product all department head discuss about design, durability, looks of product, customers choice & finally they fixed the price of product. Executive director is the head of this team. (Shahriar)

2.5.9 Store Display of Gallerie Apex

Gallerie Apex always plays a different style to attract the potential customer. Visual Merchandising is very important part in store to attract the customer Store Display gives an idea about the product feature such as variety, quality and size, color, design and trends. (Shahriar) This display reminds the customers about their need and they attract to buy this product. It is an act of putting things for view or on view. I visited some galleries to take this display idea and I found some rules of display. This display can be dividing into 2 types. They are:

Interior Display

Exterior Display

According to Branding system of GAPX, there are generally 5 brands always common on Gallerie Apex:

Chapter 3

Job Description 3.1 Nature of the job

My internship commenced on the date of my joining which was on February 01, 2011. My posting was at their Register Office, House # 6, Road # 137, Dhaka -1212. I have worked in the Marketing division of Apex Adelchi Footwear Limited. During my internship period, I had been giving my work report to Yashna Chowdhury (Executive Brand Manager of Marketing of AAFL) what everyday I did.

3.2 Specific Responsibilities of the Job

During my internship period, my responsibility was to research the market of footwear to record the required data in a spreadsheet about customer expectations, their demands, their opinions, their satisfaction level, their recommendations about Gallerie Apex footwears and later analyze the whole data of spreadsheet and prepare a final report for Apex Adelchi Footwear Limited and finally give them a presentation about the whole market research process.

3.3 Observations

At the period of my internship in Gallerie Apex, I visited some galleries. Gallerie Wari is one of them. It denotes the whole activities that have to be done in each store of the Gallerie Apex. These are about---

Product Knowledge

Sales Conduct

POS (Point of Sale)

Process of sales communication

Procedure of Goods receiving/Dispatch

Cash Memo

Sales Report (Daily)

Sales Report (Weekly)

Sales Report (monthly)

Accounting

Store Billing

After Sales Service

Visual Merchandising

Gallerie Wari is one of the A category shop of Gallerie Apex. Its total space is 1800sft and 5 employees are working there including 1 shop manager, 3 salesmen & 1 shop cleaner. Customer response is very much positive. This gallerie has verities collection of shoes for men, ladies and kids.

According to Mens shoes, there are three products brand like Venturini, Apex and Sprint are common and Ladies sandals like Moochie, Sandra Rosa, Nino Rossi and Apex are common. Mens shoes size starts from 39 - 44 and sandal size starts from 35 - 41.There have different row to display particular brand product like shoes, sandals, socks, kids sandals etc. Price of Mens shoes starts from 1250Tk - 5500Tk, sandals 650Tk - 1950Tk and Ladies sandals 450Tk - 3000Tk, Comfort socks 150Tk - 250Tk. Price of Leather Goods is 600Tk. Point of Sale (POS) is some information about selling goods that have to fill by manager at selling period. These are ---

1. Article code 7. Quantity

2. Name 8. Balance

3. Color 9. Unit price

4. Size 10. Discount (%)

5. Pair 11. Total discount amount

6. Price 12. Final amount

I observed the sales communication between customer and sales person. How a sales person help a customer for purchasing a pair of shoes. A sales person gives information very politely about selected products feature, leather quality, durability and components of manufacturing.Chapter 4

Findings & Interpretations 4.1 Customer Satisfaction

The Customers are in the mainstream of sales oriented services. The success of such companies largely depends on the satisfaction of the customers .The buyers are happy if the product and/or the services meet their expectations. If their requirements do not meet the expectations the buyers become discontented, they are delighted when the performance fulfils their requirements.

Customers post buying experiences, the opinion of friends, associates, marketer, competitor information and promises lead to the expectations. Marketer must be careful to set the right level of expectations. If they set expectations too low, they may satisfy those who buy but fail to attract enough buyers. In contrast, if they raise expectations too high, buyers are likely to be disappointed. Dissatisfaction can arise either from a decrease in product and service quality or from an increase in customer expectations. In either case, it presents an opportunity for companies that can deliver superior customer value and satisfaction

Today most successful companies have taken the strategy of are raising expectations and delivering performance to match. Such companies track their customers expectations, perceived company performance, and customer satisfaction. Highly satisfied customers produce several benefits for the company. Satisfied customers are fewer prices sensitive remain customers for a longer period and talk favorably to others about the company and its products and services

Although the customer centered firm seeks to deliver high customer satisfaction relative to its competitors, it does not attempt to maximize customer satisfaction. A company can always increase customer satisfaction by lowering its price and increasing its services, but it may result in lower profits. Thus, the purpose of marketing is to generate customer value profitably

Now, we have a very good idea regarding the importance of customer satisfaction. So, it is also important for the company to know about the satisfaction level of the customers. When any problem is identified, it becomes easier to solve the problem. The next part of this paper has focused on the Customer Satisfaction Factors of. It is done through a research survey to find out the customer satisfaction level of Gallarie Apex

4.2 Customer Satisfaction Factors of Gallarie Apex

Gallerie Apex is the local manufacturing and retail wing of Apex Adelchi Footwear Limited (AAFL). While AAFL has predominantly earned both critical and commercial fame through export of high quality leather footwear in the international arena, Gallerie Apex has sought to adeptly make use of that expertise to provide high quality, fashionable but premium footwear to the Bangladeshi consumers.

4.3 Survey Findings

In order to measure the satisfaction of the customers a series of questions were asked to the customers with the help of a questionnaire, the data from these questions are tabulated below.

For clear understanding, the overall satisfaction has been divided into satisfaction with the product and satisfaction with the after sales service. As already mentioned, the survey was conducted among nine hundred consumers; it was conducted in three way direct appointment, over telephone and with the help of email.

While asking total 23 closed end question to 720 consumers; In the basis of strongly agree to strongly disagree, from the total point and average point I can divide the customers into 3 categories of satisfied subscribers, moderate subscribers and not so satisfied subscribers.

In some areas customers are satisfied and in some area customers are not satisfied also there are some areas where subscribers are moderate in satisfaction. In below I will discuss all the questions related to customer satisfaction finding elaborately.

4.3.1 Respondent Profile

The respondent profile includes gender, age and monthly household income range of the respondents.

4.3.1.1 Gender

From the 720 spontaneous respondents, it is found that,

Table 01: Gender based categorization

MaleFemaleTotal

391329720

Figure 01

4.3.1.2 Age

From the 720 spontaneous respondents, it is found that,

Table 02: Age based categorization

Under 1818-2425-3435-4445-5455-64Above 65Total

451852851554253720

Figure 02

4.3.1.3 Monthly Household Income Range

From the 720 spontaneous respondents, it is found that,

Table 03: Income based categorization

Less than

2000020000 -3500035000 -4500045000 -6000060000 -7500075000 -100000Above

100000Total

71172155218551732720

Figure 03

4.3.2 Comparison with Other Branded Shoes

This comparison includes 1st & 2nd choice of customers, their purchase behavior of last 3 months, and price vs. quality comparison of GAPX & other brands.

4.3.2.1 1st & 2nd Choice of Customers

The question was asked like Name 3 Footwear Companies and the answer came like this,

Table 04: Name of 3 Footwear Companies

BataApexOthersTotal

44621658720

Figure 044.3.2.2 Purchase Behavior of Last 3 Months

The purchase behavior of respondents from GAPX and other branded shops are like this,

Table 05: Purchase Behavior

Total Paires of Shoes purchasedFrom ApexFrom othersTime visited GAPXTime visited Other storesTotal Respondents

23741114126031093324720

Figure 05

4.3.2.3 Price vs. Quality

Asking about GAPX product price in comparison of its quality the answer was like,

Table 06: Price vs. Quality of GAPX

ExpensiveFairLowDon't knowTotal

416279196720

Figure 06

4.3.3 Factors & Reasons behind Customer Satisfaction

This section includes 5 questions of which 2 are ranking questionnaire and our main stream to know what actually customers think about GAPX, what are their expectations from GAPX and whether they are satisfied with the GAPX service or not.

4.3.3.1 Importance of the Factors

There are 10 factors marked by the GAPX as the main reasons for visiting customers any footwear shop and purchase something from there. And in importance ranking, according to the consumers those are ---

Table 07: Importance of Factors

FactorsMostVeryImportantLessLeastTotal

a. Location3221661605220720

b. Design of the stores26910315411777720

c. Cleanliness & lighting of the store3109812512067720

d. Range of shoes 33212713610619720

e. Comfort of shoes646432920720

f. Quality of shoes648551700720

g. Value for the price5041536030720

h. Availability of the right size627682410720

i. Helpfulness of the store's staff3922457940720

j. Product knowledge of the staff3932398152720

Figure 07

4.3.3.2 Forming Opinions about GAPX

Then GAPX wants to know from their customers how they formed an opinion about GPAX at the beginning. They thought of some sources and the answer came like this,

Table 08: Forming Opinions

AdvertisingWord of MouthPersonal ExperienceNewspapers/MagazinesInternetTotal

771144614325720

Figure 08

4.3.3.3 First Association with GAPX

The question was about when customers think or hear the name GAPX, what is the 1st thing that comes in their mind. Though we expected to get single answer from respondents, but from a good number of respondents we get multiple answers for this question.

Table 09: First Association with GAPX

FashionPriceQualityCustomer ServiceRange of shoesMultiple optionsTotal

1261792112712165720

Figure 09

4.3.3.4 Comparison of GAPX Stores with Other Shoe Stores

This is the other ranking question and the most important one because here GAPX wants to know the comparison of GAPX shops and products from any other shoe stores, whether it is branded or non-branded. The ranking started from 1 to 5 and the numbering was like this ---

1 = much worse

2 = worse

3 = same

4 = better

5 = much better

Table 10: Comparison of GAPX Stores with Other Shoe Stores

comparison of GAPX stores to other shoe storesmuch worseworsesamebettermuch betterTotal

a. up to date fashion shoes357830223372720

b. Comfortability of shoes324218837088720

c. quality3162247277103720

d. durability426934120464720

e. style and color4315829316660720

f. Style that goes with you3516926417775720

g. right size2248292251107720

h. Promptness of the service1123132360194720

i. friendliness of the salespeople1520130357198720

j. Product knowledge218168342190720

k. value for money1087315201107720

l. Advertising and communication53260205100102720

m. Display of shoes1635239310120720

n. maintenance of the store1527190350138720

o. Layout and design of the store1335175360137720

p. Posters and pictures displayed1548206342109720

q. Promotional offers4216030812090720

r. Wide assortment of accessories173536520895720

Figure 10

4.3.3.5 Satisfaction of Footwear needs from GAPX

The final question to ask was satisfactions the customers get from GAPX footwear and their services. I noticed an interesting matter here that customers choices are not constant. In my 3 months of survey period, I repeated visiting same galleries twice and found that the questions I asked the people visiting those galleries at the starting of my survey differ from the answers of at the ending of my survey. So the satisfaction level also changed of customers. But the chart says,

Table 11: Satisfaction of footwear needs from GAPX

AlwaysOftenSometimesRarelyNeverTotal

1832342503518720

Figure 11

So these are all the findings and interpretations I got from my whole 3 months of surveying customers of GAPX footwear.

4.4 Summary of the FindingsA) Actually dont know from when, but there is a belief in consumers mind that APEX foot wears are majorly males brand and their 54% customers are also male and other 46% are female.

B) APEX foot wears are more popular in young generation and middle-aged people. Their 40% customers age are from 25-34, 26% are from 18-24 and 21% are from 35-44.

C) APEX foot wears are one of the premium foot wears of Bangladesh. So their maximum customers are also from upper class. 30% customers monthly household income range is from 45000-60000, 24% are from 20000-35000 and 22% are from 35000-45000.

D) Customers choice of brand shoes says they are still not so convinced with new brands other than BATA. 65% customers 1st choice is BATA and 2nd choice is APEX and for 3rd choice various names appeared like BAY, JENNYS, Local shoes etc.

E) Though GAPX has more outlets in all over Bangladesh, customers visiting the GAPX outlets and purchasing shoes from there are less from other branded & local outlets, only 47%, while from other shops the percentage is 53.

F) For 58% customers of GAPX products are expensive than their quality and for 39% it is fair.

G) Our 1st ranking question that to know the major factors behind customers visiting a footwear outlet and purchasing products from there. And customers chose Quality, Comfort, Availability of right size, Value, Product knowledge of the salesperson and Location as the major factors.

H) Most of the customers form their opinions about GAPX products by having their personal experiences of shopping there. The percentage is 64, while 16% first came to know about it from others (words of mouth) and other 11% are from the advertisements of the media channels.

I) First association with GAPX means when we first utter the word GAPX in front of the customers, which feature/s come first in their minds. If we take the single answers, then 29% customers think of Quality, 25% of Price and 17% of Fashion. But if we notice carefully, we will see a big percentage of customers (23%) who chose multiple answers, majority of which is a combination of Price and Customer service.

J) Our most important ranking question to know the comparison factors between GAPX and other footwear brands & shops. According to the ranking, GAPX is mostly in front side for its outstanding customer service by the salespersons and the location, layout, design and maintenance of the outlets. But the quality, comfort level, durability, style, fashion. Color, size etc. of shoes are mostly similar to other branded or local shoes.

K) The final question to know the satisfaction level of customers of GAPX. 25% of customers are always satisfied, 32% of customers are often satisfied and 35% of customers are sometimes satisfied by GAPX when they needed to purchase any product from GAPX.

Chapter 5

Recommendations & Conclusion5.1 Some Possible Strategies to Improve Customer Satisfaction

Analyze the market in a regular basis and find out what customers need and want in the area where customer are not satisfied like price design advertising, and quality.

Gallery apex has to take necessary action to increase customer satisfaction by lowering their price, offer different design, speed up their service etc.

Communicate with the customer in easiest way like, most of the customer still watches TV and listen radio so they have to give advertisementin TV and radio & newspaper and in this way Gallery apex can increase customer satisfaction.

Offer various kind of package in their product so that their customer can match with their preference.Create strong Brand image by different promotional activities which catch people emotion and feelings so that subscribers will be very much loyal.

Offer various services with their product so that customers can enjoy various Services at a single device.

Fulfill corporate social responsibilities to create a good image in subscribers mind. By organizing different events, donating money, do something for the poor people; help the government to give education to the poor children.5.2 Recommendations

Though Customer Development Department and its field force are very well organized and active but I think they should give more importance about the following matters.

Importance on more visibilityMarketing team should give more importance on visibility. They should choose more colorful shelftalker, billboard etc. and display all the products more attractive ways so that shoppers can easily notice the product and feel encourage to buy the products.

Focuses on the product design

GAPX should focuses on there research & design. Sometime customers have complaints that Apex is not changing there designs and fashions.

Focus on their products delivery timingSometimes delivery cannot reach to the market on time. Thats why customer couldnt take the products from there reasonable shop.

Event based promotionGAPX can arrange special promotion indifferent events like Eid-ul-Fitr & Eid-ul-Adha, NewYear, Valentines Day, Pahela Baishakh, Christmas and other seasonal events. It is not that they have to make an expensive promotion. They can give consumer gift. Its help them to make better relation with customer

Arrangement of Special EventsGAPX can organize special events for the customer like gift coupon, in this event lucky winner can get special gift or special discount.

5.3 ConclusionApex Adelchi Footwear Limited is one of the leading footwear companies in Bangladesh. I have worked in the marketing department of Apex. During this time I got an opportunity to observe the overall activities ofmanaging the retail environment. This report has provided some interesting insight into what kind of service the customers are getting and what is their expectation from Apex. It also has analyzed the perceptions of sales man like how it has helped to build the relationship with Apex as well as increase the sales. As it can be seen the relationship with sales man has already strengthen now Apex should try to attract the customer who are not fully satisfied and bring them to the positive side of the road so that strong relationship with the customers should be maintained. Apex should also provide morevalue to itsloyal customers. Finally, I would say that this internship at Apex has increased my practical knowledge and experience aboutBusiness Administration and helped make my whole BBA education complete.References Annual Report (2010-2011) of AAFL

http://www.apexadelchi.com/apex_adelchi/

Yashna Chowdhury, Executive Brand Manager (Marketing), AAFL, Head Office, Gulshan-1, Dhaka-1212

Khandker Swanan Shahriar, General Manager (Marketing), AAFL, Head Office, Gulshan-1, Dhaka-1212

Philip Kotler & Gary Armstrong; Principles of Marketing; Pearson Prentice hall, 2007-08, 12th edition

Chapter 6

Appendices 6.1 QuestionnaireDate of Interview__________________Time of Interview__________________

Name of Store__________________Location of Store__________________

Store CategoryA1Store TypeShoppingMall1

B2StripMall2

C3Standalone3

Discount4

Section A

1. Please name three footwear companies1___________________________

2___________________________

3___________________________

2. How many pairs of shoes have you purchased in the last 3 months (self and others)?_______

3. How many times have you visited a GAPX store in the last 3 months?_______

4. How many times have you visited other shoe stores in the past 3 months?_______

5. How many pairs have you purchased from GAPX in the last 3 months (self and others)?

_______

6. How many pairs have you purchased from other shoes in the last 3 months (self and others)?

_______

7. Based on GAPX's Quality, do you think the prices are:

Expensive for the quality1

Fair and reasonable2

Low 3

Don't know4

8. Based on the quality of the shoes in these stores, do you think their prices are:

Expensive for the quality1

Fair and reasonable2

Low 3

Don't know

Section B

9. How important are the following factors in deciding which store you buy your footwear from?

Importance

LeastLessImportantVeryMost

a. Location of the store123 45

b. Layout and design of the stores123 45

c. Cleanliness and lighting of the store123 45

d. Range of shoes and sandals offered123 45

e. Comfort of shoes and sandals offered123 45

f. Quality of shoes and sandals offered123 45

g. Value for the price offered by the store123 45

h. Availability of the right size 123 45

i. Helpfulness of the store's staff123 45

j. Product knowledge of the store staff123 45

10. How did you form your opinion about GAPX?

Advertising1

Word of Mouth2

Personal Experience3

Newspapers / Magazines4

Internet5

Others (please mention)6. ______________

11. When you think of what GAPX does best, which of the following first comes to mind?

Fashion1

Price2

Quality3

Customer Service4

Range of shoes5

12. On a scale of 1 to 5 how do you find this shoe store compared to other shoe stores on the

following factors, where:1 = much worse2 = worse3=same

4 = better5 = much better

GAPX

aReflect up to date fashion shoes_______

bComfortability of shoes_______

cQuality of shoes_______

dShoes that are made to last_______

eSelection of merchandise (style and colors)_______

fStyles of shoes that you like_______

gHaving the right size of shoes that you want_______

hThe promptness of the service from salespeople_______

iThe friendliness of the service from the salespeople________

jThe product knowledge of the salespeople_______

kShoes worth the price you paid for (value for money)_______

lAdvertising and communication of GAPX_______

mDisplay of shoes in the store window _______

nThe cleanliness and maintenance of the store_______

oThe layout and design of the store_______

pThe posters and pictures displayed in the store_______

qThe promotional offers of GAPX_______

rWide assortment of accessories_______

13. Does GAPX satisfy all your footwear needs?Always1

Often2

Sometimes3

Rarely4

Never5

Respondent Information

1.Gender1.M2.F

2. Age GroupUnder 1818-2425-3435-4445-5455-64above 65

1234567

3. Monthly Household IncomeLess than 20000

20000 to 35000

35000 to 45000

45000 to 60,000

60000 to 75000

75000 to 100000

above 1000001

2

3

4

5

6

7

I would like to thank you for taking the time to answer our survey. On behalf of GAPX I would like

to present you with this gift as a token of our appreciation.

"I hereby certify that this interview was conducted according to the questionnaire and instructions

for this study and that the answers recorded are given to me by this respondent. I also realize that a

proportion of my work will be checked for verification"

____________________________________________________

Interviewer's Name Interviewer's Signature

Thank You for Co-operation