FOOTWEAR INDIA LTD.

Group 14
Group participants
1. Alok Kumar - 066
2. Rishabh Kumar - 060
3. Priyanshi Singh - 084
4. Hunny - 042
5. Nishi Kumari Singh - 046
6. Sanjana Dubey - 051
7. Chandresh Kumar - 068
 SUMMARY
◦ Significant downward movement of company.

◦ Loss 20% Market share In between 1990 to 2005

◦ Footwear India Pvt ltd was the market leader, with 40% market share (2005 – 06) 5 Factories and 2
tanneries in the 4 zones.

◦ Competitors were:-
◦ Unorganized small scale – 20% market share.
◦ Nike, Rebook and Adidas – 30% market share.
◦ Footwear India ltd – 40% market share.
◦ Liberty and Paragon – 10% market share.
 PRODUCTS

◦ Varity of products :-
◦ Shoes.
◦ Sandals.
◦ Chappals.
◦ Sports shoes and Sports sandals.
◦ Accessories :-
◦ Shoes polish.
◦ Socks.
◦ School bag.
◦ leather belt.
◦ t-shirt.
◦ Trousers.
 DISTRIBUTION CHANNEL SYSTEM

◦ Aim to make product available across India.

◦ Company had adopted VMS strategy.

◦ 1. Corporate VMS,
◦ Both production and distribution under company ownership (distribution network B).
◦ 2. Contractual VMS,
◦ Company owned stores and Franchise retailers (distribution network A).
 DISTRIBUTION NETWORK A

◦ 60% sales came from this network.

◦ Consist of 1500 retail stores.

◦ Company owned retail stores

◦ Franchise store (150) – in rural market.

◦ Had agreement of to sell only company products.

CLASSIFICATION OF COMPANY OWNED RETAIL STORE.

◦ Main store.

◦ Commercial store.

◦ Family store.

◦ Discount store.
 DISTRIBUTION NETWORK B

◦ 40% sales came from this network.

◦ Built for wholesaler and independent retailers(dealers).

◦ Were independent traders, purchased merchandise from

company's wholesale depots.

◦ In rural areas and market in major cities and towns.

◦ Allowed to sell footwear product of all brands.

 ORGANIZATION STRUCTURE

◦ Store manager report to regional manager.

 RECRUITMENT OF SALESPEOPLE

◦ Company hire a person who have minimum qualification of 12 th qualified.

◦ They hire them on temporary basis for 6 to 12 months.
◦ Company takes product and selling skill test and interview.
◦ 30 days of job training.
◦ Company provides a commission of 2.25% of retail store sale.
◦ Salary scale 3000 - 15000
 CONCLUSION

◦ Consistently decreasing sales.

◦ Gradually increasing expenditure.
◦ Company had depended on distribution network A.
◦ Loss making since Two years.
◦ 8% – 10% of contribution of accessories in sales but have 30% of profit margins.
◦ proper training to sales person.
◦ Loss 20% market share.
◦ Nike, Rebook and Adidas acquire 30% market share In short span of time.
 QUESTION

◦ If you were Rakesh Tandon, what suggestion would you give and why?
Increase the sale of Accessories.
Strengthen distribution network B, sale should increase.
1. Is shopkeeper getting the product on time or not?
2. Whether the shopkeeper showing our product or not?
3. Look after that shopkeeper keep our products in prime area.
Increase sale of other footwear brand in Distribution network A.
More promotion is needed because foreign brand acquire 30% market share in short span of time.
Increase top line and bottom line both.
Open own store or franchise store in rural area.
Sell shoes with socks.