Wollo University

Kombolcha Institute of technology

College of Engineering

School of Textile, Fashion, Garment and Leather engineering

Department of leather engineering [footwear stream]

Project Title: Improving merchandise procedure of footwear industry in

Ethiopia

Prepared by:

Name

1.GetachewKetema

2.Asnake Niguse

3.Menberu Adugna

4.Asfaw Agazh
Introduction

Footwear sector has its draw backs due to some invaluable facilities and tremendous prospect.
This sector has the potentiality of earning a lot of foreign exchange after the fulfillment of local
demand. But the sector needs careful handling as well as proper directions and guidelines to
heading towards the foreign market to deserve the best among the Shoe exporting countries.

A project work titled “STUDIES ON THE MERCHANDISING PROCEDURE OF

FOOTWEAR INDUSTRIES ethiopis is selected as for a dissertation for the partial fulfillment
of the requirements for the Bachelor of Science in Footwear Technology.

But our research focused on merchandise of Kombolcha small hande made shoe factorey .

With the partial fulfillment of my study part, the thesis is to survey the merchandising procedure
of small hand made footwear factories, market trend, present condition of local and overseas
market of Shoe of kombolcha which represents the present condition of this sector.

As a student of Footwear engineering it is much more important to know about the merchandise
and its procedure. It is high time for necessary steps which should be taken to expand the market
demand.

This shoe factory is begin on the collection of individualy and worked on their knoldege and
exiperance but their merchandise skill is very small so that not more competitive in market
segmention and market trendes.They work sandal shoe by using different leathers .

the raw materials leather use this factory is different jacket leathers not use specific tannery

Now it is the high time we started taking action to improve their merchandizing strategies to
make leather products come from the tannery and connected with tannery and also more
attractive to the komolcha as well as ethiopia market. The objective of this study is to explore the
current merchandizing strategies for local market and to find some way forward to improve it to
increase the annual income of this factory from this resourceful sector
Background of the study

Kombolcha (fatuma and their friends shoe factory) a sizeable amount of selling for the company
every day using leather in local markets. As a part of these Merchandising is one of the most
important part. Merchandiser plays an important role for leather and footwear sector business.
Endowed with a strong stream of local supply of quality hides and skins and a large, skilled, and
low-wage work force, Ethiopia has all the potentials to increase export earnings and
employment in the leather sector.
the response to segmentation, guidelines for the development of products and services, and their
associated positioning to meet the evolving needs of the target segments. Finally, the product
positioning provides the foundation for the rest of the marketing strategy and the processes,
resource allocation decisions and other activities of the firm.because this factory have not their
own shopes and the worker is not more skilled about merchandise and market trendes.

segmentation for marketing as a strategy that divides a target market into smaller groups of
consumers by categorizing these groups according to common attributes. After segmentation,
targeted groups are analyzed and a marketing mix for each group is implemented. Firms identify
opportunities and needs by segmenting the market. This allows firms to focus on specific needs,
to Especially for small firms, it is therefore an important tool to exist. Similarly, the gain to
consumers is that they can find offerings that better satisfy their needs.

From all these background information, segmentation as integral part of marketing strategy
process deserves studying the existing practices in this regard. better allocate their resources and
to improve marketing mix for each subset.

Because this factory is very small and automized or maximized but first study the merchandising
procedures after that the factory is developed

This study is important for ours and the factory because for ours develop our business konoledge
for preparing for after graduation and creat new finding work or enterpernship.for the factory our
study factory is ,the name fatuma and their friends shoe factory is very small and their market is
mini market so,our target is develop this market trends by using customer satisfication and
developing good merchandising connection with other company and local customers by opening
the shop.
Objectives

the general objective of the study is to investigate the existing of fatuma and their friends shoe
market segmentation practices of producers and to identify associated challenges.

Specific objectives of the study are:

 To investigate the existing market segmentation practices among the shoe producers;
 To evaluate the application of conventionally recognized market segmentation criteria,
bases and process in current practices of shoe producers;
 To investigate the existence of differences in market segmentation practices among
micro, small and medium producers;
 To increase their local connetion of customers
 To increase more connection with Ethiopian footwear company
 To identify the key challenges facing producers in market segmentation practices of shoe
producers and forward recommendations.

Significance of the Study

this study would help all stakeholders including but not limited to shoe producers and
management of the cooperative to understand best the status of their market segmentation
practices and related issues. in this regard. Furthermore, by identifying gaps and challenges
observed in this respect, the output of this study would spearhead ways for improving the
practices of producers in segmenting their market in order to be more competent and maintain
enhanced position in shoe production and marketing. In addition to these, the findings of this
study would initiate and can be used as platform by any concerned parties including the
government for further decision making and policy and strategy formulation and designing
development support.

the study will contribute to academics in availing the document for further reference as the topic
has not been adequately dealt locally. We may be interested in carrying out further and in-depth
research on the segmentation practices or other related issues or the sub-sector in general, can
make use of the result of this study.
Scope of the project

The scope of the study is limited to leather shoe producers organized in Kombolcha, namely
fatuma and their friends shoe producer.

Problem statement

The general(basic ) problem of fatmua and their friends shoe producer

 unable to get reasonable price

 unable to ensure quality
 Lack of infrastructure
 Not Use eco- friendly alternate materials, processing systems

 Minmuem promotion and merchandising efforts on items

 Have not Co-ordinate & Co-operate that means not have enogh amerchandiser
 Have notKnowledge about the field
 Not Arrange for market intelligence its dissemination and market development
 Does not Keep stable competitive prices make prompt delivery on schedule e.t.c.

All above studies showed that fatuma and their friends shoes markets are not filled with
customer satisifaction, Since understanding of what consumers‟ choices and why they prefer
is important for shoes manufacturers, wholesalers and retailers, it will lead to more accurate
merchandise mix and marketing programs.

So that our target is identified the above problems of this shoe producer and skilled the
worker for theuse of merchandise connection with customer and Ethiopian footwear
company.
Methodology of the study

This part of the research deals with over all approach of the research. And it includes source of
data, data collection tools and data analysis method that the study were used.

Sources of data and Data collection tools

The study used both primary and secondary data collecting tools. The primary data collection
instrument in this research was semi-structured questionnaires,

However, the quastionary may have disadvantages as a result of unwillingness of respondents to

provide information, inability of respondents to provide information and influence of the
questioning process.

Almost ,to solve the problems we use the quastionarie by arranging the following questions

 What are the existing market segmentations practices of fatuma and their friends shoe
producers?
 Do producers apply conventional bases, criteria and process in segmenting the shoe
market?
 How producers rate the profit performance level of their current market segments?
 What are the major challenges of producers in segmenting footwear market and
implementation?
 Are there any differences among the micro, small and medium shoe producer groups in
their segmentation and implementation practices?
Materials,equipments