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Prepared by
Group 7
Marketing Strategy of Khadimsrsquo
Group 7
Telecom sector
Marketing Strategy of Khadimrsquos
Contents1INTRODUCTION3
2 SUMMARY OF THE INDUSTRYhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip4
3The Marketing Mix of Khadimsrsquo6
a)Product 6
b)Pricing7
c) Promotion8
d)Place(Distribution)11
4Brand Positioning14
5Consumers 15
6Competition and Challenges16
7Milestones17
8 ACHIVEMENTS18
9Conclusion19
Telecom sector
Marketing Strategy of Khadimrsquos
1INTRODUCTION
A name now synonymous with the shoes that India walks in Khadims made giant strides into the world of footwear in the year 1965 when Mr Satya Prasad Roy Burman took over a small shop in Chitpur and turned it to a major brand
Khadim India Limited operates as a footwear retailer in India under the brand Khadimrsquos It also engages in the manufacture and sale of footwear The company operates approximately 620 retail outlets in 22 states It also operates two retail stores under the brand lsquoKhadimrsquos Egarorsquo which offer garments footwear jewellery gold and groceries The company was formerly known as SN Footwear Industries Private Limited and changed its name to Khadim Chain Stores Private Limited in 1998 Later it changed its name to Khadim Chain Stores Limited in June 2005 and to Khadim India Limited in August 2005 The company is based in Kolkata India Khadims journey into Gold Jewellery business dates to January 07 2005 opening its first Gold Jewellery retail unit in its own lifestyle large format retail store at Kanchrapara 50 km from Kolkata with the name of SONA KHAZANA It was the first jewellery brand to bring Hallmark Jewellery in 24 Parganas (N) District It has four such stores
In 2004Khadims forayed into the business of superstores by launching 30000 sq ft Khadims Khazana at Kanchrapara Located at about 60 Kms from Kolkata and easily accessible from 24 Parganas (N) Nadia and Hoogly the idea behind this endeavor was to introduce one stop shopping experience to the people residing in the suburbs The sprawling four-storied centrally air-conditioned superstore has different sections like apparels cosmetics jewellery footwear homefurnishing and grocery It also offers Khadims footwear the flagship brand and Sona Khazana finely crafted hallmarked gold jewellery from Khadims
Telecom sector
Marketing Strategy of Khadimrsquos
2SUMMARY OF THE INDUSTRY
RETAIL
India has topped the AT Kearneyrsquos annual Global Retail Development Index (GRDI) for the thirdconsecutive year maintaining its position as the most attractive market for retail investmentThe Indian retail market -- one of Indias fastest growing industries -- is expected to grow fromUS$ 350 billion to US$ 427 billion by 2010 According to Euromonitor International the IndianRetail market will grow in value terms by a total of 396 per cent between 2006 and 2011averaging growth of almost 7 per cent a yearModern retail accounts for about 4 per cent of the total retail market in India This share isexpected to increase to about 15 -20 per cent with the entry of a number of corporates into thesegment Modern retail formats have grown by 25-30 per cent in India in the last year and couldbe worth US$ 175-200 billion by 2016
Retail space
Retailers in India are the most aggressive in Asia in expanding their businesses thus creating ahuge demand for real estate Their preferred means of expansion is to increase the number ofoutlets in a city and also expand to other regions revealed the Jones Lang LaSalle third annualRetailer Sentiment Survey-AsiaDriven by changing lifestyles strong income growth and favourable demographic patterns Indianretail is expanding at a rapid pace The country may have 600 new shopping centres by 2010 Mallspace from a meagre one million square feet in 2002 is expected to touch 40 million square feetby end-2007 and an estimated 60 million square feet by end-2008
Size of the Indian Retail Sector
The Indian retail sector is estimated to have a market size of about $ 180 billion but theorganized sector represents only 2 share of this market Currently Indian retail distribution iscompletely fragmented with about 12 million players The majority of these are very small playersoperating from small shops (below 50 square feet in size) and handcarts These retail outlets arespread across the country in over 5000 towns and 600000 villages Most of the organized
Telecom sector
Marketing Strategy of Khadimrsquos
retailing in the country has just started recently and has been concentrated mainly in the metrocities India is the last large Asian economy to liberalize its retail sector In Thailand more than40 of all consumer goods are sold through the super markets and departmental stores A similarphenomenon has swept through all other Asian countries Organized retailing in India has a hugescope because of the vast market and the growing consciousness of the consumer about productquality and services
Telecom sector
Marketing Strategy of Khadimrsquos
Footwear Industry
Footwear is a necessity to every person and at the same time is now a lifestyle as also aperformance enhancement product and is thus a segment with vast potential The India footwearmarket is estimated to be worth Rs 137500 Million and constitutes just about one percent ofIndian retail India is the second largest footwear producer in the world after China About 378 percent of Footwear retail is the organized segent which qualifies it as the second most organized retail category in India next only to WatchesThe footwear market can be segmented into a number of categories PremiumHigh-end Mediumpriced low priced and plastic slippersleather strapped one Again organized footwear retail has anumber of segments like sports footwear semi-formalcasual footwear and formalwear and utilityfootwear In terms of number of units sold in 2005-06 Casual comprises more than 50 percent ofthe organized branded footwear market in India followed by masseconomy range at about 20and Sportsactive wear and Premium leather footwear at 7-10 percent eachThe booming Indian economy offers the prospect of higher disposable incomes and a change inconsumer preferences leading to a probable increase in per capita footwear ownership Even asIndias share of the global footwear trade has been insignificant with a share of less than 3 itcould soon change due to a migration in installed capacities from developed to developingcountries on account of high wages and environmental issues In the 2006 Union Budget the rateof excise duty on footwear with an MRP between Rs 250 and Rs 750 was reduced from 16 to8 which has helped footwear manufacturers address competition from the unorganized sectorand imports The imposition of an anti-dumping duty by the European Union on imports of certainfootwear categories from China and Vietnam created an opportunity for Indian exportersThe Indian footwear industry has witnessed a metamorphosed growth with the advent of newretail brands and formats in the Indian markets The Industry has grown by leaps and bounds inthe last decade with the introduction of new technologies and inflow of investments The Industryboth at manufacturing and marketing sides continues to be fragmented into multiple regions Thisis largely because of the large size of the country resulting in local preferences due to theeconomic social and seasonal factors and absence of a proper distribution network
Telecom sector
Marketing Strategy of Khadimrsquos
3 The Marketing Mix of Khadimsrsquo
a)Product Khadimsrsquo offers a wide variety of products to its customers It is the 3rd largest footwear retailer in India in terms of organized footwear retailing
Provides menwomenkids footwear
variety of footwear including ladies gents amp children slippers and sandals school shoes sport shoes hawai chappals and belly shoes
Subrands-ProPedroSchooldays(kids)softtouch(women) TurkProLazard(men)
Leather accessories like belts ladies handbags etc
Other Business Division- Khadimrsquos Sona Khazana for jewellery 2222 carat gold certified by Hallmark Centre (Bureau of India Standards) Wide range of gold jewellery to offer starting from solid gold meena work jewellery with precious stone and kundan to name a few
LFRSUPERSTORE apparels cosmetics jewellery footwear homefurnishing and grocery It also offers Khadims footwear the flagship brand and Sona Khazana finely crafted hallmarked gold jewellery from Khadims
Telecom sector
Marketing Strategy of Khadimrsquos
b)Pricing
A comparison of pricing strategies of three brands available in market of eastern India
BATA SHREE LEATHERS KHADIMrsquoS
PRICE RANGE
Rs 89- 5499 Rs 79-799 Rs 200-2000
DURABILTY Higher Medium Less DESIGNS Less Medium Higher QUALITY OF LEATHER
Pure Not pure leather Pure(Pakka)
COLOUR OF THE PRODUCTS
Less Variety(BlackWhite amp Brown)
Less Variety(BlackWhite amp Brown)
Variety of Colors
It offers competitive and affordable prices over the entire range of products
Telecom sector
Marketing Strategy of Khadimrsquos
c) PromotionKhadims aims to establish itself as a close second to Bata in the market It advertises heavily in print media sponsors events The company addressed the psychological block with aggressive advertising merchandising and promotional activities Aggressive marketing has ensured high brand recall amongst customers
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
d)Place(Distribution)
Supply chain managementSupply chain management involves planning merchandizing sourcing standardizationvendor management production logistics quality control pilferage control replacement andreplenishment It provides us flexibility to adapt to changing patterns in consumer behaviour andour ability to add value at various stepslevels In particular it enhances our ability to undertakein-house manufacturing designing and development of contemporary footwear
Logistics and distribution networkDistribution and logistics network comprises of three distribution centers ie Kolkata Delhiand Chennai comprising of seven warehouses five in Kolkata and one each in Delhi and ChennaiDistribution and logistics set up is well networked and allows to fulfill the store requisitionwithin a shortest period of time from generation and receipt of order which has helped us tooptimize in-store availability of merchandise and minimize transportation costs Strongdistribution and logistics network has enabled us to minimize the requirement of a dedicatedstorage space at every store and instead undertake periodical replenishment of depleted stockThis provides assistance in maintaining an optimum working capital level and therebyminimizing carrying costAn experienced management team which is complemented by a committed workforceOur management team comprises of talented professionals who are highly experienced in footwearand retail sector This has assisted in effective management of the business
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
Contents1INTRODUCTION3
2 SUMMARY OF THE INDUSTRYhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip4
3The Marketing Mix of Khadimsrsquo6
a)Product 6
b)Pricing7
c) Promotion8
d)Place(Distribution)11
4Brand Positioning14
5Consumers 15
6Competition and Challenges16
7Milestones17
8 ACHIVEMENTS18
9Conclusion19
Telecom sector
Marketing Strategy of Khadimrsquos
1INTRODUCTION
A name now synonymous with the shoes that India walks in Khadims made giant strides into the world of footwear in the year 1965 when Mr Satya Prasad Roy Burman took over a small shop in Chitpur and turned it to a major brand
Khadim India Limited operates as a footwear retailer in India under the brand Khadimrsquos It also engages in the manufacture and sale of footwear The company operates approximately 620 retail outlets in 22 states It also operates two retail stores under the brand lsquoKhadimrsquos Egarorsquo which offer garments footwear jewellery gold and groceries The company was formerly known as SN Footwear Industries Private Limited and changed its name to Khadim Chain Stores Private Limited in 1998 Later it changed its name to Khadim Chain Stores Limited in June 2005 and to Khadim India Limited in August 2005 The company is based in Kolkata India Khadims journey into Gold Jewellery business dates to January 07 2005 opening its first Gold Jewellery retail unit in its own lifestyle large format retail store at Kanchrapara 50 km from Kolkata with the name of SONA KHAZANA It was the first jewellery brand to bring Hallmark Jewellery in 24 Parganas (N) District It has four such stores
In 2004Khadims forayed into the business of superstores by launching 30000 sq ft Khadims Khazana at Kanchrapara Located at about 60 Kms from Kolkata and easily accessible from 24 Parganas (N) Nadia and Hoogly the idea behind this endeavor was to introduce one stop shopping experience to the people residing in the suburbs The sprawling four-storied centrally air-conditioned superstore has different sections like apparels cosmetics jewellery footwear homefurnishing and grocery It also offers Khadims footwear the flagship brand and Sona Khazana finely crafted hallmarked gold jewellery from Khadims
Telecom sector
Marketing Strategy of Khadimrsquos
2SUMMARY OF THE INDUSTRY
RETAIL
India has topped the AT Kearneyrsquos annual Global Retail Development Index (GRDI) for the thirdconsecutive year maintaining its position as the most attractive market for retail investmentThe Indian retail market -- one of Indias fastest growing industries -- is expected to grow fromUS$ 350 billion to US$ 427 billion by 2010 According to Euromonitor International the IndianRetail market will grow in value terms by a total of 396 per cent between 2006 and 2011averaging growth of almost 7 per cent a yearModern retail accounts for about 4 per cent of the total retail market in India This share isexpected to increase to about 15 -20 per cent with the entry of a number of corporates into thesegment Modern retail formats have grown by 25-30 per cent in India in the last year and couldbe worth US$ 175-200 billion by 2016
Retail space
Retailers in India are the most aggressive in Asia in expanding their businesses thus creating ahuge demand for real estate Their preferred means of expansion is to increase the number ofoutlets in a city and also expand to other regions revealed the Jones Lang LaSalle third annualRetailer Sentiment Survey-AsiaDriven by changing lifestyles strong income growth and favourable demographic patterns Indianretail is expanding at a rapid pace The country may have 600 new shopping centres by 2010 Mallspace from a meagre one million square feet in 2002 is expected to touch 40 million square feetby end-2007 and an estimated 60 million square feet by end-2008
Size of the Indian Retail Sector
The Indian retail sector is estimated to have a market size of about $ 180 billion but theorganized sector represents only 2 share of this market Currently Indian retail distribution iscompletely fragmented with about 12 million players The majority of these are very small playersoperating from small shops (below 50 square feet in size) and handcarts These retail outlets arespread across the country in over 5000 towns and 600000 villages Most of the organized
Telecom sector
Marketing Strategy of Khadimrsquos
retailing in the country has just started recently and has been concentrated mainly in the metrocities India is the last large Asian economy to liberalize its retail sector In Thailand more than40 of all consumer goods are sold through the super markets and departmental stores A similarphenomenon has swept through all other Asian countries Organized retailing in India has a hugescope because of the vast market and the growing consciousness of the consumer about productquality and services
Telecom sector
Marketing Strategy of Khadimrsquos
Footwear Industry
Footwear is a necessity to every person and at the same time is now a lifestyle as also aperformance enhancement product and is thus a segment with vast potential The India footwearmarket is estimated to be worth Rs 137500 Million and constitutes just about one percent ofIndian retail India is the second largest footwear producer in the world after China About 378 percent of Footwear retail is the organized segent which qualifies it as the second most organized retail category in India next only to WatchesThe footwear market can be segmented into a number of categories PremiumHigh-end Mediumpriced low priced and plastic slippersleather strapped one Again organized footwear retail has anumber of segments like sports footwear semi-formalcasual footwear and formalwear and utilityfootwear In terms of number of units sold in 2005-06 Casual comprises more than 50 percent ofthe organized branded footwear market in India followed by masseconomy range at about 20and Sportsactive wear and Premium leather footwear at 7-10 percent eachThe booming Indian economy offers the prospect of higher disposable incomes and a change inconsumer preferences leading to a probable increase in per capita footwear ownership Even asIndias share of the global footwear trade has been insignificant with a share of less than 3 itcould soon change due to a migration in installed capacities from developed to developingcountries on account of high wages and environmental issues In the 2006 Union Budget the rateof excise duty on footwear with an MRP between Rs 250 and Rs 750 was reduced from 16 to8 which has helped footwear manufacturers address competition from the unorganized sectorand imports The imposition of an anti-dumping duty by the European Union on imports of certainfootwear categories from China and Vietnam created an opportunity for Indian exportersThe Indian footwear industry has witnessed a metamorphosed growth with the advent of newretail brands and formats in the Indian markets The Industry has grown by leaps and bounds inthe last decade with the introduction of new technologies and inflow of investments The Industryboth at manufacturing and marketing sides continues to be fragmented into multiple regions Thisis largely because of the large size of the country resulting in local preferences due to theeconomic social and seasonal factors and absence of a proper distribution network
Telecom sector
Marketing Strategy of Khadimrsquos
3 The Marketing Mix of Khadimsrsquo
a)Product Khadimsrsquo offers a wide variety of products to its customers It is the 3rd largest footwear retailer in India in terms of organized footwear retailing
Provides menwomenkids footwear
variety of footwear including ladies gents amp children slippers and sandals school shoes sport shoes hawai chappals and belly shoes
Subrands-ProPedroSchooldays(kids)softtouch(women) TurkProLazard(men)
Leather accessories like belts ladies handbags etc
Other Business Division- Khadimrsquos Sona Khazana for jewellery 2222 carat gold certified by Hallmark Centre (Bureau of India Standards) Wide range of gold jewellery to offer starting from solid gold meena work jewellery with precious stone and kundan to name a few
LFRSUPERSTORE apparels cosmetics jewellery footwear homefurnishing and grocery It also offers Khadims footwear the flagship brand and Sona Khazana finely crafted hallmarked gold jewellery from Khadims
Telecom sector
Marketing Strategy of Khadimrsquos
b)Pricing
A comparison of pricing strategies of three brands available in market of eastern India
BATA SHREE LEATHERS KHADIMrsquoS
PRICE RANGE
Rs 89- 5499 Rs 79-799 Rs 200-2000
DURABILTY Higher Medium Less DESIGNS Less Medium Higher QUALITY OF LEATHER
Pure Not pure leather Pure(Pakka)
COLOUR OF THE PRODUCTS
Less Variety(BlackWhite amp Brown)
Less Variety(BlackWhite amp Brown)
Variety of Colors
It offers competitive and affordable prices over the entire range of products
Telecom sector
Marketing Strategy of Khadimrsquos
c) PromotionKhadims aims to establish itself as a close second to Bata in the market It advertises heavily in print media sponsors events The company addressed the psychological block with aggressive advertising merchandising and promotional activities Aggressive marketing has ensured high brand recall amongst customers
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
d)Place(Distribution)
Supply chain managementSupply chain management involves planning merchandizing sourcing standardizationvendor management production logistics quality control pilferage control replacement andreplenishment It provides us flexibility to adapt to changing patterns in consumer behaviour andour ability to add value at various stepslevels In particular it enhances our ability to undertakein-house manufacturing designing and development of contemporary footwear
Logistics and distribution networkDistribution and logistics network comprises of three distribution centers ie Kolkata Delhiand Chennai comprising of seven warehouses five in Kolkata and one each in Delhi and ChennaiDistribution and logistics set up is well networked and allows to fulfill the store requisitionwithin a shortest period of time from generation and receipt of order which has helped us tooptimize in-store availability of merchandise and minimize transportation costs Strongdistribution and logistics network has enabled us to minimize the requirement of a dedicatedstorage space at every store and instead undertake periodical replenishment of depleted stockThis provides assistance in maintaining an optimum working capital level and therebyminimizing carrying costAn experienced management team which is complemented by a committed workforceOur management team comprises of talented professionals who are highly experienced in footwearand retail sector This has assisted in effective management of the business
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
1INTRODUCTION
A name now synonymous with the shoes that India walks in Khadims made giant strides into the world of footwear in the year 1965 when Mr Satya Prasad Roy Burman took over a small shop in Chitpur and turned it to a major brand
Khadim India Limited operates as a footwear retailer in India under the brand Khadimrsquos It also engages in the manufacture and sale of footwear The company operates approximately 620 retail outlets in 22 states It also operates two retail stores under the brand lsquoKhadimrsquos Egarorsquo which offer garments footwear jewellery gold and groceries The company was formerly known as SN Footwear Industries Private Limited and changed its name to Khadim Chain Stores Private Limited in 1998 Later it changed its name to Khadim Chain Stores Limited in June 2005 and to Khadim India Limited in August 2005 The company is based in Kolkata India Khadims journey into Gold Jewellery business dates to January 07 2005 opening its first Gold Jewellery retail unit in its own lifestyle large format retail store at Kanchrapara 50 km from Kolkata with the name of SONA KHAZANA It was the first jewellery brand to bring Hallmark Jewellery in 24 Parganas (N) District It has four such stores
In 2004Khadims forayed into the business of superstores by launching 30000 sq ft Khadims Khazana at Kanchrapara Located at about 60 Kms from Kolkata and easily accessible from 24 Parganas (N) Nadia and Hoogly the idea behind this endeavor was to introduce one stop shopping experience to the people residing in the suburbs The sprawling four-storied centrally air-conditioned superstore has different sections like apparels cosmetics jewellery footwear homefurnishing and grocery It also offers Khadims footwear the flagship brand and Sona Khazana finely crafted hallmarked gold jewellery from Khadims
Telecom sector
Marketing Strategy of Khadimrsquos
2SUMMARY OF THE INDUSTRY
RETAIL
India has topped the AT Kearneyrsquos annual Global Retail Development Index (GRDI) for the thirdconsecutive year maintaining its position as the most attractive market for retail investmentThe Indian retail market -- one of Indias fastest growing industries -- is expected to grow fromUS$ 350 billion to US$ 427 billion by 2010 According to Euromonitor International the IndianRetail market will grow in value terms by a total of 396 per cent between 2006 and 2011averaging growth of almost 7 per cent a yearModern retail accounts for about 4 per cent of the total retail market in India This share isexpected to increase to about 15 -20 per cent with the entry of a number of corporates into thesegment Modern retail formats have grown by 25-30 per cent in India in the last year and couldbe worth US$ 175-200 billion by 2016
Retail space
Retailers in India are the most aggressive in Asia in expanding their businesses thus creating ahuge demand for real estate Their preferred means of expansion is to increase the number ofoutlets in a city and also expand to other regions revealed the Jones Lang LaSalle third annualRetailer Sentiment Survey-AsiaDriven by changing lifestyles strong income growth and favourable demographic patterns Indianretail is expanding at a rapid pace The country may have 600 new shopping centres by 2010 Mallspace from a meagre one million square feet in 2002 is expected to touch 40 million square feetby end-2007 and an estimated 60 million square feet by end-2008
Size of the Indian Retail Sector
The Indian retail sector is estimated to have a market size of about $ 180 billion but theorganized sector represents only 2 share of this market Currently Indian retail distribution iscompletely fragmented with about 12 million players The majority of these are very small playersoperating from small shops (below 50 square feet in size) and handcarts These retail outlets arespread across the country in over 5000 towns and 600000 villages Most of the organized
Telecom sector
Marketing Strategy of Khadimrsquos
retailing in the country has just started recently and has been concentrated mainly in the metrocities India is the last large Asian economy to liberalize its retail sector In Thailand more than40 of all consumer goods are sold through the super markets and departmental stores A similarphenomenon has swept through all other Asian countries Organized retailing in India has a hugescope because of the vast market and the growing consciousness of the consumer about productquality and services
Telecom sector
Marketing Strategy of Khadimrsquos
Footwear Industry
Footwear is a necessity to every person and at the same time is now a lifestyle as also aperformance enhancement product and is thus a segment with vast potential The India footwearmarket is estimated to be worth Rs 137500 Million and constitutes just about one percent ofIndian retail India is the second largest footwear producer in the world after China About 378 percent of Footwear retail is the organized segent which qualifies it as the second most organized retail category in India next only to WatchesThe footwear market can be segmented into a number of categories PremiumHigh-end Mediumpriced low priced and plastic slippersleather strapped one Again organized footwear retail has anumber of segments like sports footwear semi-formalcasual footwear and formalwear and utilityfootwear In terms of number of units sold in 2005-06 Casual comprises more than 50 percent ofthe organized branded footwear market in India followed by masseconomy range at about 20and Sportsactive wear and Premium leather footwear at 7-10 percent eachThe booming Indian economy offers the prospect of higher disposable incomes and a change inconsumer preferences leading to a probable increase in per capita footwear ownership Even asIndias share of the global footwear trade has been insignificant with a share of less than 3 itcould soon change due to a migration in installed capacities from developed to developingcountries on account of high wages and environmental issues In the 2006 Union Budget the rateof excise duty on footwear with an MRP between Rs 250 and Rs 750 was reduced from 16 to8 which has helped footwear manufacturers address competition from the unorganized sectorand imports The imposition of an anti-dumping duty by the European Union on imports of certainfootwear categories from China and Vietnam created an opportunity for Indian exportersThe Indian footwear industry has witnessed a metamorphosed growth with the advent of newretail brands and formats in the Indian markets The Industry has grown by leaps and bounds inthe last decade with the introduction of new technologies and inflow of investments The Industryboth at manufacturing and marketing sides continues to be fragmented into multiple regions Thisis largely because of the large size of the country resulting in local preferences due to theeconomic social and seasonal factors and absence of a proper distribution network
Telecom sector
Marketing Strategy of Khadimrsquos
3 The Marketing Mix of Khadimsrsquo
a)Product Khadimsrsquo offers a wide variety of products to its customers It is the 3rd largest footwear retailer in India in terms of organized footwear retailing
Provides menwomenkids footwear
variety of footwear including ladies gents amp children slippers and sandals school shoes sport shoes hawai chappals and belly shoes
Subrands-ProPedroSchooldays(kids)softtouch(women) TurkProLazard(men)
Leather accessories like belts ladies handbags etc
Other Business Division- Khadimrsquos Sona Khazana for jewellery 2222 carat gold certified by Hallmark Centre (Bureau of India Standards) Wide range of gold jewellery to offer starting from solid gold meena work jewellery with precious stone and kundan to name a few
LFRSUPERSTORE apparels cosmetics jewellery footwear homefurnishing and grocery It also offers Khadims footwear the flagship brand and Sona Khazana finely crafted hallmarked gold jewellery from Khadims
Telecom sector
Marketing Strategy of Khadimrsquos
b)Pricing
A comparison of pricing strategies of three brands available in market of eastern India
BATA SHREE LEATHERS KHADIMrsquoS
PRICE RANGE
Rs 89- 5499 Rs 79-799 Rs 200-2000
DURABILTY Higher Medium Less DESIGNS Less Medium Higher QUALITY OF LEATHER
Pure Not pure leather Pure(Pakka)
COLOUR OF THE PRODUCTS
Less Variety(BlackWhite amp Brown)
Less Variety(BlackWhite amp Brown)
Variety of Colors
It offers competitive and affordable prices over the entire range of products
Telecom sector
Marketing Strategy of Khadimrsquos
c) PromotionKhadims aims to establish itself as a close second to Bata in the market It advertises heavily in print media sponsors events The company addressed the psychological block with aggressive advertising merchandising and promotional activities Aggressive marketing has ensured high brand recall amongst customers
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
d)Place(Distribution)
Supply chain managementSupply chain management involves planning merchandizing sourcing standardizationvendor management production logistics quality control pilferage control replacement andreplenishment It provides us flexibility to adapt to changing patterns in consumer behaviour andour ability to add value at various stepslevels In particular it enhances our ability to undertakein-house manufacturing designing and development of contemporary footwear
Logistics and distribution networkDistribution and logistics network comprises of three distribution centers ie Kolkata Delhiand Chennai comprising of seven warehouses five in Kolkata and one each in Delhi and ChennaiDistribution and logistics set up is well networked and allows to fulfill the store requisitionwithin a shortest period of time from generation and receipt of order which has helped us tooptimize in-store availability of merchandise and minimize transportation costs Strongdistribution and logistics network has enabled us to minimize the requirement of a dedicatedstorage space at every store and instead undertake periodical replenishment of depleted stockThis provides assistance in maintaining an optimum working capital level and therebyminimizing carrying costAn experienced management team which is complemented by a committed workforceOur management team comprises of talented professionals who are highly experienced in footwearand retail sector This has assisted in effective management of the business
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
2SUMMARY OF THE INDUSTRY
RETAIL
India has topped the AT Kearneyrsquos annual Global Retail Development Index (GRDI) for the thirdconsecutive year maintaining its position as the most attractive market for retail investmentThe Indian retail market -- one of Indias fastest growing industries -- is expected to grow fromUS$ 350 billion to US$ 427 billion by 2010 According to Euromonitor International the IndianRetail market will grow in value terms by a total of 396 per cent between 2006 and 2011averaging growth of almost 7 per cent a yearModern retail accounts for about 4 per cent of the total retail market in India This share isexpected to increase to about 15 -20 per cent with the entry of a number of corporates into thesegment Modern retail formats have grown by 25-30 per cent in India in the last year and couldbe worth US$ 175-200 billion by 2016
Retail space
Retailers in India are the most aggressive in Asia in expanding their businesses thus creating ahuge demand for real estate Their preferred means of expansion is to increase the number ofoutlets in a city and also expand to other regions revealed the Jones Lang LaSalle third annualRetailer Sentiment Survey-AsiaDriven by changing lifestyles strong income growth and favourable demographic patterns Indianretail is expanding at a rapid pace The country may have 600 new shopping centres by 2010 Mallspace from a meagre one million square feet in 2002 is expected to touch 40 million square feetby end-2007 and an estimated 60 million square feet by end-2008
Size of the Indian Retail Sector
The Indian retail sector is estimated to have a market size of about $ 180 billion but theorganized sector represents only 2 share of this market Currently Indian retail distribution iscompletely fragmented with about 12 million players The majority of these are very small playersoperating from small shops (below 50 square feet in size) and handcarts These retail outlets arespread across the country in over 5000 towns and 600000 villages Most of the organized
Telecom sector
Marketing Strategy of Khadimrsquos
retailing in the country has just started recently and has been concentrated mainly in the metrocities India is the last large Asian economy to liberalize its retail sector In Thailand more than40 of all consumer goods are sold through the super markets and departmental stores A similarphenomenon has swept through all other Asian countries Organized retailing in India has a hugescope because of the vast market and the growing consciousness of the consumer about productquality and services
Telecom sector
Marketing Strategy of Khadimrsquos
Footwear Industry
Footwear is a necessity to every person and at the same time is now a lifestyle as also aperformance enhancement product and is thus a segment with vast potential The India footwearmarket is estimated to be worth Rs 137500 Million and constitutes just about one percent ofIndian retail India is the second largest footwear producer in the world after China About 378 percent of Footwear retail is the organized segent which qualifies it as the second most organized retail category in India next only to WatchesThe footwear market can be segmented into a number of categories PremiumHigh-end Mediumpriced low priced and plastic slippersleather strapped one Again organized footwear retail has anumber of segments like sports footwear semi-formalcasual footwear and formalwear and utilityfootwear In terms of number of units sold in 2005-06 Casual comprises more than 50 percent ofthe organized branded footwear market in India followed by masseconomy range at about 20and Sportsactive wear and Premium leather footwear at 7-10 percent eachThe booming Indian economy offers the prospect of higher disposable incomes and a change inconsumer preferences leading to a probable increase in per capita footwear ownership Even asIndias share of the global footwear trade has been insignificant with a share of less than 3 itcould soon change due to a migration in installed capacities from developed to developingcountries on account of high wages and environmental issues In the 2006 Union Budget the rateof excise duty on footwear with an MRP between Rs 250 and Rs 750 was reduced from 16 to8 which has helped footwear manufacturers address competition from the unorganized sectorand imports The imposition of an anti-dumping duty by the European Union on imports of certainfootwear categories from China and Vietnam created an opportunity for Indian exportersThe Indian footwear industry has witnessed a metamorphosed growth with the advent of newretail brands and formats in the Indian markets The Industry has grown by leaps and bounds inthe last decade with the introduction of new technologies and inflow of investments The Industryboth at manufacturing and marketing sides continues to be fragmented into multiple regions Thisis largely because of the large size of the country resulting in local preferences due to theeconomic social and seasonal factors and absence of a proper distribution network
Telecom sector
Marketing Strategy of Khadimrsquos
3 The Marketing Mix of Khadimsrsquo
a)Product Khadimsrsquo offers a wide variety of products to its customers It is the 3rd largest footwear retailer in India in terms of organized footwear retailing
Provides menwomenkids footwear
variety of footwear including ladies gents amp children slippers and sandals school shoes sport shoes hawai chappals and belly shoes
Subrands-ProPedroSchooldays(kids)softtouch(women) TurkProLazard(men)
Leather accessories like belts ladies handbags etc
Other Business Division- Khadimrsquos Sona Khazana for jewellery 2222 carat gold certified by Hallmark Centre (Bureau of India Standards) Wide range of gold jewellery to offer starting from solid gold meena work jewellery with precious stone and kundan to name a few
LFRSUPERSTORE apparels cosmetics jewellery footwear homefurnishing and grocery It also offers Khadims footwear the flagship brand and Sona Khazana finely crafted hallmarked gold jewellery from Khadims
Telecom sector
Marketing Strategy of Khadimrsquos
b)Pricing
A comparison of pricing strategies of three brands available in market of eastern India
BATA SHREE LEATHERS KHADIMrsquoS
PRICE RANGE
Rs 89- 5499 Rs 79-799 Rs 200-2000
DURABILTY Higher Medium Less DESIGNS Less Medium Higher QUALITY OF LEATHER
Pure Not pure leather Pure(Pakka)
COLOUR OF THE PRODUCTS
Less Variety(BlackWhite amp Brown)
Less Variety(BlackWhite amp Brown)
Variety of Colors
It offers competitive and affordable prices over the entire range of products
Telecom sector
Marketing Strategy of Khadimrsquos
c) PromotionKhadims aims to establish itself as a close second to Bata in the market It advertises heavily in print media sponsors events The company addressed the psychological block with aggressive advertising merchandising and promotional activities Aggressive marketing has ensured high brand recall amongst customers
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
d)Place(Distribution)
Supply chain managementSupply chain management involves planning merchandizing sourcing standardizationvendor management production logistics quality control pilferage control replacement andreplenishment It provides us flexibility to adapt to changing patterns in consumer behaviour andour ability to add value at various stepslevels In particular it enhances our ability to undertakein-house manufacturing designing and development of contemporary footwear
Logistics and distribution networkDistribution and logistics network comprises of three distribution centers ie Kolkata Delhiand Chennai comprising of seven warehouses five in Kolkata and one each in Delhi and ChennaiDistribution and logistics set up is well networked and allows to fulfill the store requisitionwithin a shortest period of time from generation and receipt of order which has helped us tooptimize in-store availability of merchandise and minimize transportation costs Strongdistribution and logistics network has enabled us to minimize the requirement of a dedicatedstorage space at every store and instead undertake periodical replenishment of depleted stockThis provides assistance in maintaining an optimum working capital level and therebyminimizing carrying costAn experienced management team which is complemented by a committed workforceOur management team comprises of talented professionals who are highly experienced in footwearand retail sector This has assisted in effective management of the business
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
retailing in the country has just started recently and has been concentrated mainly in the metrocities India is the last large Asian economy to liberalize its retail sector In Thailand more than40 of all consumer goods are sold through the super markets and departmental stores A similarphenomenon has swept through all other Asian countries Organized retailing in India has a hugescope because of the vast market and the growing consciousness of the consumer about productquality and services
Telecom sector
Marketing Strategy of Khadimrsquos
Footwear Industry
Footwear is a necessity to every person and at the same time is now a lifestyle as also aperformance enhancement product and is thus a segment with vast potential The India footwearmarket is estimated to be worth Rs 137500 Million and constitutes just about one percent ofIndian retail India is the second largest footwear producer in the world after China About 378 percent of Footwear retail is the organized segent which qualifies it as the second most organized retail category in India next only to WatchesThe footwear market can be segmented into a number of categories PremiumHigh-end Mediumpriced low priced and plastic slippersleather strapped one Again organized footwear retail has anumber of segments like sports footwear semi-formalcasual footwear and formalwear and utilityfootwear In terms of number of units sold in 2005-06 Casual comprises more than 50 percent ofthe organized branded footwear market in India followed by masseconomy range at about 20and Sportsactive wear and Premium leather footwear at 7-10 percent eachThe booming Indian economy offers the prospect of higher disposable incomes and a change inconsumer preferences leading to a probable increase in per capita footwear ownership Even asIndias share of the global footwear trade has been insignificant with a share of less than 3 itcould soon change due to a migration in installed capacities from developed to developingcountries on account of high wages and environmental issues In the 2006 Union Budget the rateof excise duty on footwear with an MRP between Rs 250 and Rs 750 was reduced from 16 to8 which has helped footwear manufacturers address competition from the unorganized sectorand imports The imposition of an anti-dumping duty by the European Union on imports of certainfootwear categories from China and Vietnam created an opportunity for Indian exportersThe Indian footwear industry has witnessed a metamorphosed growth with the advent of newretail brands and formats in the Indian markets The Industry has grown by leaps and bounds inthe last decade with the introduction of new technologies and inflow of investments The Industryboth at manufacturing and marketing sides continues to be fragmented into multiple regions Thisis largely because of the large size of the country resulting in local preferences due to theeconomic social and seasonal factors and absence of a proper distribution network
Telecom sector
Marketing Strategy of Khadimrsquos
3 The Marketing Mix of Khadimsrsquo
a)Product Khadimsrsquo offers a wide variety of products to its customers It is the 3rd largest footwear retailer in India in terms of organized footwear retailing
Provides menwomenkids footwear
variety of footwear including ladies gents amp children slippers and sandals school shoes sport shoes hawai chappals and belly shoes
Subrands-ProPedroSchooldays(kids)softtouch(women) TurkProLazard(men)
Leather accessories like belts ladies handbags etc
Other Business Division- Khadimrsquos Sona Khazana for jewellery 2222 carat gold certified by Hallmark Centre (Bureau of India Standards) Wide range of gold jewellery to offer starting from solid gold meena work jewellery with precious stone and kundan to name a few
LFRSUPERSTORE apparels cosmetics jewellery footwear homefurnishing and grocery It also offers Khadims footwear the flagship brand and Sona Khazana finely crafted hallmarked gold jewellery from Khadims
Telecom sector
Marketing Strategy of Khadimrsquos
b)Pricing
A comparison of pricing strategies of three brands available in market of eastern India
BATA SHREE LEATHERS KHADIMrsquoS
PRICE RANGE
Rs 89- 5499 Rs 79-799 Rs 200-2000
DURABILTY Higher Medium Less DESIGNS Less Medium Higher QUALITY OF LEATHER
Pure Not pure leather Pure(Pakka)
COLOUR OF THE PRODUCTS
Less Variety(BlackWhite amp Brown)
Less Variety(BlackWhite amp Brown)
Variety of Colors
It offers competitive and affordable prices over the entire range of products
Telecom sector
Marketing Strategy of Khadimrsquos
c) PromotionKhadims aims to establish itself as a close second to Bata in the market It advertises heavily in print media sponsors events The company addressed the psychological block with aggressive advertising merchandising and promotional activities Aggressive marketing has ensured high brand recall amongst customers
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
d)Place(Distribution)
Supply chain managementSupply chain management involves planning merchandizing sourcing standardizationvendor management production logistics quality control pilferage control replacement andreplenishment It provides us flexibility to adapt to changing patterns in consumer behaviour andour ability to add value at various stepslevels In particular it enhances our ability to undertakein-house manufacturing designing and development of contemporary footwear
Logistics and distribution networkDistribution and logistics network comprises of three distribution centers ie Kolkata Delhiand Chennai comprising of seven warehouses five in Kolkata and one each in Delhi and ChennaiDistribution and logistics set up is well networked and allows to fulfill the store requisitionwithin a shortest period of time from generation and receipt of order which has helped us tooptimize in-store availability of merchandise and minimize transportation costs Strongdistribution and logistics network has enabled us to minimize the requirement of a dedicatedstorage space at every store and instead undertake periodical replenishment of depleted stockThis provides assistance in maintaining an optimum working capital level and therebyminimizing carrying costAn experienced management team which is complemented by a committed workforceOur management team comprises of talented professionals who are highly experienced in footwearand retail sector This has assisted in effective management of the business
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
Footwear Industry
Footwear is a necessity to every person and at the same time is now a lifestyle as also aperformance enhancement product and is thus a segment with vast potential The India footwearmarket is estimated to be worth Rs 137500 Million and constitutes just about one percent ofIndian retail India is the second largest footwear producer in the world after China About 378 percent of Footwear retail is the organized segent which qualifies it as the second most organized retail category in India next only to WatchesThe footwear market can be segmented into a number of categories PremiumHigh-end Mediumpriced low priced and plastic slippersleather strapped one Again organized footwear retail has anumber of segments like sports footwear semi-formalcasual footwear and formalwear and utilityfootwear In terms of number of units sold in 2005-06 Casual comprises more than 50 percent ofthe organized branded footwear market in India followed by masseconomy range at about 20and Sportsactive wear and Premium leather footwear at 7-10 percent eachThe booming Indian economy offers the prospect of higher disposable incomes and a change inconsumer preferences leading to a probable increase in per capita footwear ownership Even asIndias share of the global footwear trade has been insignificant with a share of less than 3 itcould soon change due to a migration in installed capacities from developed to developingcountries on account of high wages and environmental issues In the 2006 Union Budget the rateof excise duty on footwear with an MRP between Rs 250 and Rs 750 was reduced from 16 to8 which has helped footwear manufacturers address competition from the unorganized sectorand imports The imposition of an anti-dumping duty by the European Union on imports of certainfootwear categories from China and Vietnam created an opportunity for Indian exportersThe Indian footwear industry has witnessed a metamorphosed growth with the advent of newretail brands and formats in the Indian markets The Industry has grown by leaps and bounds inthe last decade with the introduction of new technologies and inflow of investments The Industryboth at manufacturing and marketing sides continues to be fragmented into multiple regions Thisis largely because of the large size of the country resulting in local preferences due to theeconomic social and seasonal factors and absence of a proper distribution network
Telecom sector
Marketing Strategy of Khadimrsquos
3 The Marketing Mix of Khadimsrsquo
a)Product Khadimsrsquo offers a wide variety of products to its customers It is the 3rd largest footwear retailer in India in terms of organized footwear retailing
Provides menwomenkids footwear
variety of footwear including ladies gents amp children slippers and sandals school shoes sport shoes hawai chappals and belly shoes
Subrands-ProPedroSchooldays(kids)softtouch(women) TurkProLazard(men)
Leather accessories like belts ladies handbags etc
Other Business Division- Khadimrsquos Sona Khazana for jewellery 2222 carat gold certified by Hallmark Centre (Bureau of India Standards) Wide range of gold jewellery to offer starting from solid gold meena work jewellery with precious stone and kundan to name a few
LFRSUPERSTORE apparels cosmetics jewellery footwear homefurnishing and grocery It also offers Khadims footwear the flagship brand and Sona Khazana finely crafted hallmarked gold jewellery from Khadims
Telecom sector
Marketing Strategy of Khadimrsquos
b)Pricing
A comparison of pricing strategies of three brands available in market of eastern India
BATA SHREE LEATHERS KHADIMrsquoS
PRICE RANGE
Rs 89- 5499 Rs 79-799 Rs 200-2000
DURABILTY Higher Medium Less DESIGNS Less Medium Higher QUALITY OF LEATHER
Pure Not pure leather Pure(Pakka)
COLOUR OF THE PRODUCTS
Less Variety(BlackWhite amp Brown)
Less Variety(BlackWhite amp Brown)
Variety of Colors
It offers competitive and affordable prices over the entire range of products
Telecom sector
Marketing Strategy of Khadimrsquos
c) PromotionKhadims aims to establish itself as a close second to Bata in the market It advertises heavily in print media sponsors events The company addressed the psychological block with aggressive advertising merchandising and promotional activities Aggressive marketing has ensured high brand recall amongst customers
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
d)Place(Distribution)
Supply chain managementSupply chain management involves planning merchandizing sourcing standardizationvendor management production logistics quality control pilferage control replacement andreplenishment It provides us flexibility to adapt to changing patterns in consumer behaviour andour ability to add value at various stepslevels In particular it enhances our ability to undertakein-house manufacturing designing and development of contemporary footwear
Logistics and distribution networkDistribution and logistics network comprises of three distribution centers ie Kolkata Delhiand Chennai comprising of seven warehouses five in Kolkata and one each in Delhi and ChennaiDistribution and logistics set up is well networked and allows to fulfill the store requisitionwithin a shortest period of time from generation and receipt of order which has helped us tooptimize in-store availability of merchandise and minimize transportation costs Strongdistribution and logistics network has enabled us to minimize the requirement of a dedicatedstorage space at every store and instead undertake periodical replenishment of depleted stockThis provides assistance in maintaining an optimum working capital level and therebyminimizing carrying costAn experienced management team which is complemented by a committed workforceOur management team comprises of talented professionals who are highly experienced in footwearand retail sector This has assisted in effective management of the business
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
3 The Marketing Mix of Khadimsrsquo
a)Product Khadimsrsquo offers a wide variety of products to its customers It is the 3rd largest footwear retailer in India in terms of organized footwear retailing
Provides menwomenkids footwear
variety of footwear including ladies gents amp children slippers and sandals school shoes sport shoes hawai chappals and belly shoes
Subrands-ProPedroSchooldays(kids)softtouch(women) TurkProLazard(men)
Leather accessories like belts ladies handbags etc
Other Business Division- Khadimrsquos Sona Khazana for jewellery 2222 carat gold certified by Hallmark Centre (Bureau of India Standards) Wide range of gold jewellery to offer starting from solid gold meena work jewellery with precious stone and kundan to name a few
LFRSUPERSTORE apparels cosmetics jewellery footwear homefurnishing and grocery It also offers Khadims footwear the flagship brand and Sona Khazana finely crafted hallmarked gold jewellery from Khadims
Telecom sector
Marketing Strategy of Khadimrsquos
b)Pricing
A comparison of pricing strategies of three brands available in market of eastern India
BATA SHREE LEATHERS KHADIMrsquoS
PRICE RANGE
Rs 89- 5499 Rs 79-799 Rs 200-2000
DURABILTY Higher Medium Less DESIGNS Less Medium Higher QUALITY OF LEATHER
Pure Not pure leather Pure(Pakka)
COLOUR OF THE PRODUCTS
Less Variety(BlackWhite amp Brown)
Less Variety(BlackWhite amp Brown)
Variety of Colors
It offers competitive and affordable prices over the entire range of products
Telecom sector
Marketing Strategy of Khadimrsquos
c) PromotionKhadims aims to establish itself as a close second to Bata in the market It advertises heavily in print media sponsors events The company addressed the psychological block with aggressive advertising merchandising and promotional activities Aggressive marketing has ensured high brand recall amongst customers
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
d)Place(Distribution)
Supply chain managementSupply chain management involves planning merchandizing sourcing standardizationvendor management production logistics quality control pilferage control replacement andreplenishment It provides us flexibility to adapt to changing patterns in consumer behaviour andour ability to add value at various stepslevels In particular it enhances our ability to undertakein-house manufacturing designing and development of contemporary footwear
Logistics and distribution networkDistribution and logistics network comprises of three distribution centers ie Kolkata Delhiand Chennai comprising of seven warehouses five in Kolkata and one each in Delhi and ChennaiDistribution and logistics set up is well networked and allows to fulfill the store requisitionwithin a shortest period of time from generation and receipt of order which has helped us tooptimize in-store availability of merchandise and minimize transportation costs Strongdistribution and logistics network has enabled us to minimize the requirement of a dedicatedstorage space at every store and instead undertake periodical replenishment of depleted stockThis provides assistance in maintaining an optimum working capital level and therebyminimizing carrying costAn experienced management team which is complemented by a committed workforceOur management team comprises of talented professionals who are highly experienced in footwearand retail sector This has assisted in effective management of the business
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
b)Pricing
A comparison of pricing strategies of three brands available in market of eastern India
BATA SHREE LEATHERS KHADIMrsquoS
PRICE RANGE
Rs 89- 5499 Rs 79-799 Rs 200-2000
DURABILTY Higher Medium Less DESIGNS Less Medium Higher QUALITY OF LEATHER
Pure Not pure leather Pure(Pakka)
COLOUR OF THE PRODUCTS
Less Variety(BlackWhite amp Brown)
Less Variety(BlackWhite amp Brown)
Variety of Colors
It offers competitive and affordable prices over the entire range of products
Telecom sector
Marketing Strategy of Khadimrsquos
c) PromotionKhadims aims to establish itself as a close second to Bata in the market It advertises heavily in print media sponsors events The company addressed the psychological block with aggressive advertising merchandising and promotional activities Aggressive marketing has ensured high brand recall amongst customers
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
d)Place(Distribution)
Supply chain managementSupply chain management involves planning merchandizing sourcing standardizationvendor management production logistics quality control pilferage control replacement andreplenishment It provides us flexibility to adapt to changing patterns in consumer behaviour andour ability to add value at various stepslevels In particular it enhances our ability to undertakein-house manufacturing designing and development of contemporary footwear
Logistics and distribution networkDistribution and logistics network comprises of three distribution centers ie Kolkata Delhiand Chennai comprising of seven warehouses five in Kolkata and one each in Delhi and ChennaiDistribution and logistics set up is well networked and allows to fulfill the store requisitionwithin a shortest period of time from generation and receipt of order which has helped us tooptimize in-store availability of merchandise and minimize transportation costs Strongdistribution and logistics network has enabled us to minimize the requirement of a dedicatedstorage space at every store and instead undertake periodical replenishment of depleted stockThis provides assistance in maintaining an optimum working capital level and therebyminimizing carrying costAn experienced management team which is complemented by a committed workforceOur management team comprises of talented professionals who are highly experienced in footwearand retail sector This has assisted in effective management of the business
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
c) PromotionKhadims aims to establish itself as a close second to Bata in the market It advertises heavily in print media sponsors events The company addressed the psychological block with aggressive advertising merchandising and promotional activities Aggressive marketing has ensured high brand recall amongst customers
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
d)Place(Distribution)
Supply chain managementSupply chain management involves planning merchandizing sourcing standardizationvendor management production logistics quality control pilferage control replacement andreplenishment It provides us flexibility to adapt to changing patterns in consumer behaviour andour ability to add value at various stepslevels In particular it enhances our ability to undertakein-house manufacturing designing and development of contemporary footwear
Logistics and distribution networkDistribution and logistics network comprises of three distribution centers ie Kolkata Delhiand Chennai comprising of seven warehouses five in Kolkata and one each in Delhi and ChennaiDistribution and logistics set up is well networked and allows to fulfill the store requisitionwithin a shortest period of time from generation and receipt of order which has helped us tooptimize in-store availability of merchandise and minimize transportation costs Strongdistribution and logistics network has enabled us to minimize the requirement of a dedicatedstorage space at every store and instead undertake periodical replenishment of depleted stockThis provides assistance in maintaining an optimum working capital level and therebyminimizing carrying costAn experienced management team which is complemented by a committed workforceOur management team comprises of talented professionals who are highly experienced in footwearand retail sector This has assisted in effective management of the business
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
d)Place(Distribution)
Supply chain managementSupply chain management involves planning merchandizing sourcing standardizationvendor management production logistics quality control pilferage control replacement andreplenishment It provides us flexibility to adapt to changing patterns in consumer behaviour andour ability to add value at various stepslevels In particular it enhances our ability to undertakein-house manufacturing designing and development of contemporary footwear
Logistics and distribution networkDistribution and logistics network comprises of three distribution centers ie Kolkata Delhiand Chennai comprising of seven warehouses five in Kolkata and one each in Delhi and ChennaiDistribution and logistics set up is well networked and allows to fulfill the store requisitionwithin a shortest period of time from generation and receipt of order which has helped us tooptimize in-store availability of merchandise and minimize transportation costs Strongdistribution and logistics network has enabled us to minimize the requirement of a dedicatedstorage space at every store and instead undertake periodical replenishment of depleted stockThis provides assistance in maintaining an optimum working capital level and therebyminimizing carrying costAn experienced management team which is complemented by a committed workforceOur management team comprises of talented professionals who are highly experienced in footwearand retail sector This has assisted in effective management of the business
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
d)Place(Distribution)
Supply chain managementSupply chain management involves planning merchandizing sourcing standardizationvendor management production logistics quality control pilferage control replacement andreplenishment It provides us flexibility to adapt to changing patterns in consumer behaviour andour ability to add value at various stepslevels In particular it enhances our ability to undertakein-house manufacturing designing and development of contemporary footwear
Logistics and distribution networkDistribution and logistics network comprises of three distribution centers ie Kolkata Delhiand Chennai comprising of seven warehouses five in Kolkata and one each in Delhi and ChennaiDistribution and logistics set up is well networked and allows to fulfill the store requisitionwithin a shortest period of time from generation and receipt of order which has helped us tooptimize in-store availability of merchandise and minimize transportation costs Strongdistribution and logistics network has enabled us to minimize the requirement of a dedicatedstorage space at every store and instead undertake periodical replenishment of depleted stockThis provides assistance in maintaining an optimum working capital level and therebyminimizing carrying costAn experienced management team which is complemented by a committed workforceOur management team comprises of talented professionals who are highly experienced in footwearand retail sector This has assisted in effective management of the business
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
d)Place(Distribution)
Supply chain managementSupply chain management involves planning merchandizing sourcing standardizationvendor management production logistics quality control pilferage control replacement andreplenishment It provides us flexibility to adapt to changing patterns in consumer behaviour andour ability to add value at various stepslevels In particular it enhances our ability to undertakein-house manufacturing designing and development of contemporary footwear
Logistics and distribution networkDistribution and logistics network comprises of three distribution centers ie Kolkata Delhiand Chennai comprising of seven warehouses five in Kolkata and one each in Delhi and ChennaiDistribution and logistics set up is well networked and allows to fulfill the store requisitionwithin a shortest period of time from generation and receipt of order which has helped us tooptimize in-store availability of merchandise and minimize transportation costs Strongdistribution and logistics network has enabled us to minimize the requirement of a dedicatedstorage space at every store and instead undertake periodical replenishment of depleted stockThis provides assistance in maintaining an optimum working capital level and therebyminimizing carrying costAn experienced management team which is complemented by a committed workforceOur management team comprises of talented professionals who are highly experienced in footwearand retail sector This has assisted in effective management of the business
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
STRATEGYKhadims intend to pursue the following strategies in order to consolidate position as one of theleading operators in the footwear and lifestyle retail segments in IndiaGrowth strategy isbased on
Continue to expand retail operations with Flexible Expansion ProgramKhadims intends to further expand our retail footwear operations by leveraging existing sales anddistribution network and apply innovative retail marketing initiativesThey already have a substantial presence in Eastern and Southern marketsThey are now in theprocess of expanding our presence in the growing Western and Northern marketsStrategy in the lifestyle retail segment is to target initially the metros and big towns in WestBengal to expand our lifestyle brand ldquoKhadimrsquos Egarordquo As the brand ldquoKhadimrsquosrdquo is already verypopular and enjoys excellent brand equity in these locations we are confident to leverage thesame for our growth in this segment The same strategy can be replicated in Eastern India andsubsequently to other parts of the CountryThey also intend to increase our footwear brand and product visibility and sales and distributionnetwork through strategic stores and outlets that will enable to benefit from an increased storedensity through a lower capital outlay These smaller outlets will enable to offer our productaimed at the customer demography of the specific outlet and enable frequent renewal of ourinventory They intend to continue to develop our existing network of independent footwear outletsin various cities that sell our products through the appointment of additional distributors forvarious cities and towns
Expand In New RegionsAlthough Khadims have a pan India presence in the footwear segment still there are many regionswhere they have a huge potential to grow They now have to stretch our presence to these regionsalso They will focus on maintaining and reinforcing the image of existing exclusive brand outletsand also introduce footwear to new geographic areas and consumer sectors that are presentlyless familiar with the brand Khadims has an established network in eastsouth India and are rapidly consolidating network in western and northern India
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
Distribution Channels
Khadim has a pan India retail presence marked by owned outlets excusive dealers supported by other dealers spread across all states Khadimrsquos footwear products are sold through the following channels
Owned Retail outlets Khadim has its own footwear retail stores across the country All these stores maintain the same decor and interiors so that the customers have the same feel irrespective of the stores they are visiting The kind of stock depends on the location and the profile of the people in the particular location
Exclusive Dealers There are dedicated exclusive dealer outlets spread throughout the county An exclusive dealer procures its entire product requirement from Khadim and sells the same at the companyrsquos MRP Such outlets are in the name of lsquoKhadimsrsquo and are identical in terms of its look and feel as any of its owned outlets The exclusivity remains in the fact that these dealers have contractual obligation to sell exclusively Khadimrsquos product from the premises to which the contract relates and also to comply with the terms and conditions and policies of the company Under the exclusive dealership agreements the dealers operate the stores The expenditure of establishing the stores and holding the inventory is incurred by the dealers
Dealers like exclusive dealers these stores also deal mainly in Khadimrsquos footwear Such dealers procure their product requirements from Khadim directly
Multi-brand dealers These stores sell footwear of various brands and make along with Khadim products
Distributors Distributors are an integral part of Khadimrsquos supply chain Khadim directly supplies to many exclusive dealers and other dealers Distributors provide Khadim footwear to dealers and multi-brand stores at places where Khadim do not find it feasible to set up their own distribution channels due to factors like own demand However these distributors do not supply directly to customers through stores or outlets
IndustrialInstitutional Large industries and private or public institutions who need to buy footwear for their workers can approach Khadim directly for their requirement
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
4 Brand Positioning The presence of the Khadimrsquos brand across user segments has been growing steadily over theperiod of time The shift from the unorganized to the organized market is on the rise and thebrand Khadimrsquos has been a beneficiary of the same We have centered our brand building exerciseon the theme of emotional bonding which has created the foundation of the Khadimrsquos brand Overthe years Khadimrsquos has reinforced emotional connect between the consumer and the productthrough the following initiatives1048707 A distinctive positioning of the product for the growing middle-class around the lsquounbeatableprice valuersquo proposition1048707 A responsible extension to the virtues of lsquoauthenticityrsquo and lsquoaffordabilityrsquo extending frompositioning to product to store presentation leading to a credible recall1048707 A comprehensive exposure across the print outdoor and electronic media to capture consumerattention1048707 A prudent visibility at major entry and exit points of towns helping the brand identify with thefloating target population
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
5 Consumers Suman Roy Barman president Khadimsclaims we offer our customers the same quality that Bata offers at 60 per cent the prices We are for the middle class Our customers are the daily office goers students and any other daily user of footwear coming and going to his or her workplace Khadims is the only other footwear company in the country after Bata which offers products for all ages and all uses such as daily wear party wear sports formal office wear etc
The particular store concept being adopted by Khadims is to make it suitable to a semi-urban target audience with an ethnic quotient
Khadimsrsquo basically targets urban and semi-urban population by strategic location of stores in tier 2 and tier 3 townsThey have a very wide range of target customers Almost all people of any age are their target customers if looked product wise But their pricing strategy have a very great role in choosing their target customers The pricing is very normal in other words we can say cheap So it can be easily understood that their target customers are basically the people who actually belong to middle class or mostly saying the lower middle class of people If looked age wise children young matured and senior citizens are their target customers
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
6Competition and Challenges
The main competitor of Khadims in footwear is Sreeleather Because the price of Khadims is just a little higher than of Sreeleatherrsquos Bata is also there but in terms of pricing Bata is much ahead of Sreeleathers Their target customers are either of higher middle or higher income group of people whether Khadims mostly targets lower and middle income group Smaller and local companies trying to upscale their brand presence with marketing and by ensuring quality to the customer are posing stiff competition to khadimsrsquo
The company has finally decided that their legacy systms are not enough to grow bigger and also to combat smaller companies To achieve this the company has decided to go ahead with SAP implementationThis is also going to allow the board of directors to access real time information on the quantity of raw material bought at each location the price paid for it the credit offered for it the time it took to process it the time it took to reach the shelves of retailers the time it took to sell it the credit offered to the retailer and finally the addition to the bottomline from each location
In fact if the company organises a loyalty programme for its customers it can also determine where each shoe landed up and how long was it used for what purpose before a new one went from the Khadims factory to replace that shoe
However owing to its across the spectrum presence it has eroded its product position in the marketing department Looking closely it appears to be an OEM than a shoe maker Its high time they took a stand
Also an increasingly worrying situation for khadimsrsquo now is the problem of imitation Khadims who have mushroomed and are threatening to destroy the 70-year-old brand and goodwill in the customers hearts They are devising a special plan to counter this menace and will put it into operation soon
Khadims State-Of-the-art manufacturing facility at Kolkatas newly developed Industrial Estate has been in operation since June 2001 Every stage of product evolution - design stringent quality control round-the-clock production and the practice of the latest technology under expert designers have further increased the companys competition edge
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
7Milestones
2011 Opens 600th exclusive showroom
2010 Operations begin from the 100000 sqft Central Distribution Centre
Bantala
2009 Implementation of SAP ISO 9001 2008 certification from TUV NORD
2008 Opens 300th exclusive showroom
2004 ISO 9001 2000 certification for the manufacturing facility
2001 Started manufacturing of footwear amp accessories Integrated software
implemented to automate the entire organization
2000 South Indian operations begin through 4 exclusive retail outlets
1993 First retail outlet opens in Kolkata
1981 First corporate entity of the group was formed
1965 Khadims Brand acquired by Mr S P Roy Burman the present Chairman
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
8 ACHIVEMENTS
Khadims - Most Purchased Footwear Brand of Bengal during Puja As per recent revelations
of Puja Power a Brandwatch Bengal Series by Anandabazar Patrika in the Footwear
category Khadims has emerged as themost purchased brand during Festival Period 2010 in Kolkata
UA and both rural and urban markets in Rest of Bengal way ahead of other branded players
Khadims has emerged as the top footwear brand in West Bengal as revealed by Brandwatch
Bengal a detailed research report released by Anandabazar Patrika Group covering 4000 respondents
in urban Bengal and over 950 brands
Khadims has been ranked as the third most trusted footwear brand in India behind Bata and
Paragon as per the Brand Trust Report India Study 2011 It is ranked at 79 in East Zone and 237
overall in the All India Brand Trust Ranking of Top 300 brands of India across different sectors
The Brand Trust Report India Study 2011 is published by Trust Research Advisory (TRA) The book
is a result of a syndicated primary research on Brand Trust that generated 1000000 data points and
16000 unique brands from over 10000 hours of fieldwork conducted across 2310 corporate
respondents in 9 cities TRAs study partners in this research were Indian Statistical Institute (ISI) and
eNxt Financials a Tata Enterprise
Khadims has won the Most Admired Footwear Retailer From East
India award in the East India Retail Summit 2011 held at Oberoi Grand
Kolkata on 7 amp 8 January 2011
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
Telecom sector
Marketing Strategy of Khadimrsquos
9Conclusion
Khadimsrsquo has focused on quality and pricing and this has been its main unique selling
proposition
Demand for Khadims products has been relatively stable as inferred from the sales
figures over the past two years
Khadims has been perceived as a brand that is targeting middle aged adults however this
is set to change with the company launching newer products aimed at younger consumers
Khadims must be wary of intensifying competition from sreeleathers in its core market of
in and around Kolkata and smaller local manufacturing units
Duplicate and imitated products are a cause of great worry
