1.1 Introduction

Founded in 1959, Pallas is a household name in Malaysia as far as footwear is concerned. The name

Pallas is plastered in every town across the country. Affordability is not Pallas' only forte. Designers at

Pallas ensure that the styles keep up with changing trends. With each new design, quality, durability and

comfort are not sacrificed. Our philosophy is to offer an extensive range of footwear for the whole

family, combining leading-edge fashion with exceptional value for money! Easy Comfort. That’s our

commitment to you.

Our collection covers everything a family could want. We have an amazing selection of men’s, women’s,

teen’s and children’s shoes, highlighting the latest trends for the season along with everyday essentials.

Our shoes, slippers, sandals and sports varieties come in different colors and sizes to cater for the

current trendy men, women, teens and children. For men and women, we have a wide range from chic

casual to comfort and stylish sandals. For teen’s and children's shoes, you need look no further as we

stock one of the largest range of comfort shoes for teens and kids. With helpful advice available, you will

be able to find the perfect fit, and when it comes to going back to school, our collection has every style

you could wish for.

Through our own labels we have developed great ranges of shoes for all ages with a focus on style,

quality and value. We also have an impressive range of branded products, from famous labels including

PALLAS, JAZZ, REJAM to crossovers with international labels like WARNER BROTHERS and DISNEY

MICKEY.

1.2 Problem Statement and Issues

Pallas shoes is very well known among school student in Malaysia, and have over 96 stores across

Malaysia including Sabah and Sarawak. The problem that this brand had, is their product only will be

bought during school season, as if they only sell school shoes, whereby they also sells casual shoes as

well, under the name Jazz, same as the white and black school shoes. Since Pallas Jazz is a canvas shoes,

this brand had many competitors throughout overseas, most likely a well-known shoes company such as

Vans and DC shoes. So, people prefer to wear international brand over local brand. The main issues for

this products is, people always assume that this brand is only for school student, because of its origin as

a school shoes.

2.1 Product Name

Pallas Jazz “Lo Cut Shoe Lace”

2.2 Product Classification

Provide school shoes and casual shoes at affordable price range.

2.3 Product Characteristics

• Type – Shoes, Packaging – Rectangle Shoe Box,

• Pricing Range – RM 38.99 to RM 43.99 unit per sale

2.4 Product Range

• School shoes – Black and White

• Casual – Blue, orange, purple, red, peach, light green, dark purple, light brown, grey, forest

green, French blue, dark brown, dark blue

2.5 Distribution

Pallas use direct and indirection distribution. Pallas distribute directly its product throughout all of their

stores in Malaysia, all 96 of them. Pallas also sells their product indirectly, by using another party to sell

their goods, such as an independent shoes store or local shoes store that want to make profit by selling

the brand. Pallas also use an e-retailer to sell their product, which can be find in wowtowee(dot)com.

2.6 Product Life Cycle

Most of sales that Pallas gain, during every early years, when student get back to school, which is an

annual event for Pallas that is “Back to School with Pallas”

2.7 The Brand

PALLAS was introduced early 1978, recognized as a distinctive mark of quality and comfort. Having the

comfort of the consumers at the top of their agenda, Pallas footwear are designed and developed

around its aptly chosen tagline of "Pallas…..Easy Comfort", i.e. “comfort that are easily affordable”. True

to its tagline of “easy comfort”, Pallas range of footwear is known for its easy style and wearing comfort.

Each pair of Pallas footwear is well researched and designed to provide maximum comfort for prolonged

wearing. There are few type of shoes, which is Jazz casual, Jazz School, Rejam and Freetime. Jazz casual

is for fun, colourful, casual shoes for young active, fun loving adult!! "comfort" and "easy" shoes that is

truly value for money!! Jazz School is specially researched & designed to bring all days comfort for

student!! Rejam is a performance shoes that designed for Sepak Takraw professionals with its

technology FLEX, DR10, VGrip!! Last but not least is “Freetime” stylish slippers and sandals that comforts

your feet!!

2.8 Brand Image and Implication

Pallas has been in the market for a long time, almost all Malaysian will know this brand, since everyone

is familiar with the shoes, because it is such a memorial brand to be remembered, some of the user

were using they were at school age, and pass it to their children. It is a brand that can be passed through

generation after generation, it can also be called in these as a “throwback”. The quality of the brand is

very good, and it is very affordable, even though they have many competitors, but a loyal customer

would still buy the brand.

2.9 Strength and Weakness

Strength Weaknesses

• An established brand and has been in

business over 30 years (38 years)

• Wide range of color and sizes

• Cheap compare to its competitors

• People assumes this brand is only for

school student

• Hasn't been able to penetrate emerging

markets

2.10 Advantage and Disadvantages

Advantages Disadvantages

• Can be used anywhere and anytime,

durable, flexible, comfort

• Not selling to all outlet

2.11 Unique Selling Proposition

• Local Made

• Affordability

• Fun & Style

• Canvas Shoes

• Wide Color Range

• Durable

• Flexible

• Comfort

2.12 Promotional History and Advertising Schedule

Pallas Jazz has been in the industry for many years, the business is increasing every years. They have

created many events throughout the years. Since the company enter the world of social media which is

Facebook, their marketing plan starting to rising up. They start to make online competition such as

submitting picture of people with their beloved mother for celebrating mother’s day and also picture of

their favorite teacher for celebrating teacher’s day. Pallas also made a school visit event and any other

event such as sports event, and they normally do it in Penang, because it is from their base company.

For an annual promotion usually, during starting school season, which is “Back to School with Pallas”.

They have promoting this event throughout Facebook and Banners and Poster around Shopping

Complex. They also have promoting one their other brand which the casual Pallas Jazz, which is as not

popular as the normal Pallas Jazz school shoes, which is not all stores have it, and need to purchase it

online.

2.13 Positioning statement

For the casual shoe lover. Pallas Jazz offer comfort shoes, with a lot of varieties in colors, which is locally

made and it can afford by any class range.

3.1 Company Overview

Pallas offer services by selling their own shoe brand which locally made in Malaysia. Their major brand

would be their school shoes, which is their highest profit came from. At the same time, they also sells

casual shoes, sepak takraw shoes and also slippers.

3.2 Business Description

This company is in sector of consumer discretionary which is an industry that sells apparel & textile

product. Their sub-industry is selling footwear which is Pallas.

3.3 Company History

Southern Rubber Works Sdn. Bhd. Was founded in 1959. The Company’s line of business includes the

wholesale distribution of footwear. PALLAS was introduced early 1978, recognized as a distinctive mark

of quality and comfort.

3.4 Key People

• Group Chief Executive Officer – Ho Kok Loon

• Pallas Brand Executive - Eppie Lee

• Brand Development Manager - Katherine Lim

3.5 Location and Subsidiaries

Pallas

Southern Rubber Works Sdn Bhd

178 Lebuh Pantai

10300 Georgetown

Penang, Malaysia

3.6 Brands, Major Products and Services

Pallas ( Jazz school, jazz casual, rejam, freetime)

• Jazz school - Specially reaserched & designed to bring all days comfort for student

• Jazz casual - fun, colourful, casual shoes for young active, fun loving adult

• Rejam - performance shoes that designed for Sepak Takraw professionals with its technology

FLEX, DR10, VGrip

• Freetime - stylish slippers and sandals that comforts your feet

3.7 Corporate Vision

To provide maximum comfort for prolonged wearing.

3.8 Corporate Mission

There is no information

3.9 Company’s Current Promotional Strategy

• April, 2011 – PWTC (Malaysia International Shoe Festival 2011), spin & win

• May, 2011 – Han Jiang Hall Penang (Lion Dance)

• June, 2011 – Ipoh, Starwalk

• September, 2011 – Penang Times Square, Starwalk

• September, 2011 – Autocity Juru Penang (Lion Dance Competition)

• November, 2011 – Kembali ke sekolah, Happy Shoes

• November, 2012 – Kembali ke sekolah dengan smart pal

• March, 2013 – Back to school contest

• June, 2013 – Ipoh, Starwalk

• July 2013 – Collaboration with Disney Mickey shoe design for kids

• September, 2013 – Penang, Starwalk, A walk of remember

• December, 2013 – Collab with CineAD for free movie ticket at GSC

• December, 2013 – Kembali ke sekolah dengan pallas hero

• February, 2014 – Pallas authorized online dealer with wow2wee[dot]com

• May, 2014 – Share your precious moment with your mom contest

• June, 2014 - Express your love to your father in this father day contest

• June, 2014 – Penang, Go green with pallas, tree planting project

• July, 2014 – Ramadan food sharing contest

• September, 2014 – Penang, Starwalk

• November,2014 – kembali ke sekolah dengan pallas creator

• December, 2014 – shoe sponsorship for student

• Januari, 2015 – tree planting project

• April, 2015 – tree planting project

• May, 2015 – happy mother’s day everlasting love photo contest

• May, 2015 – happy teacher’s day “wefie” contest

• May, 2015 – tree planting project

• June, 2015 – father’s day, Super Dad completion

• August, 2015 – Merdeka, best wishes to Malaysia contest

• September, 2015 – Penang, Starwalk

• September, 2015 – Penang, Lantern making

• December, 2015 – Back to school with pallas, dare to dream

3.10 Product Sales’ History

Product sales of this brand is privacy.

3.11 Current Marketing Objective

Selling more casual shoes, by came out new range of color which is the latest is the “retro” color.

An annual event, promote their school shoes every in the end and the beginning of the year

3.12 Media Expenditure

• Starwalk - Discover the joy and history as you walk along town. A collaboration with Star

newspaper

• Tree planting project – help to preserve tree in Penang

• Back to school – annual event on every year to promote Pallas school shoes

4.1 Consumers’ Characteristics

4.1.1 Current Consumers’ Characteristics

• Age 7 – 30 years

• Gender : Both Male and Female

• Students and adults, from families to group of youngsters

• Allowance of the student could be RM300 –RM700

• Salary of the adult are RM900 – RM3000

• Come from varieties of races and ethnics whether local or foreigner

• Malaysia

4.1.2 Psychographics - Identify “current” psychographics situation;

• Same perception towards local product, that the product are not good enough

• Mostly learn from peers and experience.

• Motivation & needs: the product cheaper than any other brand

• Attitude & Personality: skaters and casual look.

• Lifestyle: student and don’t care about brand

4.2 – Stakeholders’ Characteristics

4.2.1 Primary

Currently, there is no information about the main internal stakeholders in the media that can be find to

support this topic.

4.2.2 Secondary

Currently, there is no information about the main internal stakeholders in the media that can be find to

support this topic.

5.1 The Industry

5.1.1 Definition

It is axiomatic to say globally, the footwear industry has an expanding market. World population

increases, living standards rise, so does the demand for footwear.

5.1.2 Shape of the industry

The global footwear market has seen wide-ranging trends across totally different geographic regions like

North America, Europe, Asia Pacific, and rest of the globe. The worldwide footwear market is driven by

factors like growing demand for brand new style of footwear and growing awareness concerning healthy

and active life style. Increasing population, propensity of individuals to pay additional and rising stores

have additionally attributed to the growing demand for footwear across the world market. Also, there

are sure restraints that are slowing down the expansion of the world footwear market. Increasing

environmental considerations and inflation of raw material are the most factors that are acting as

restraints for the world footwear market. However, there's a good chance within the footwear market

like changing consumers' fashion and fashion trends, rising role of e-commerce and increasing new

brands within the market that may enhance the demand of footwear market within the coming years.

Some of the highest players in the world footwear market are Nike, Adidas, Ascis, Puma, VF Corp,

Skechers and New Balance among others. At present, among the highest players in the world footwear

market, Nike is that the leading footwear company followed by Adidas and Ascis. Nike and Adidas have

the foremost range of stores, sturdy marketing, and huge client base globally. Asics and puma are

fashionable in the European market where as VF Corporation. Skechers, and New Balance are American

corporations with sturdy presence in the American footwear market.

The footwear market has been divided into three segments: by varieties of footwear, by consumer

group, and by geography. Further, the by varieties of footwear include athletic footwear and non-

athletic footwear. The report additionally offers competitive analysis regarding sub-segment of athletic

footwear and non-athletic footwear. Athletic footwear section offers merchandise of four classes that

include insert shoes, sports shoes, hiking shoes and backpacking boots. Sports shoes are expected to

own the most important market in terms of volume globally from 2014 to 2020. In terms useful Insert

shoes is expected to own the most important market globally throughout the forecast amount. Non-

Athletic footwear section additional includes three categories that are casual footwear, fashion

footwear and formal footwear. Casual footwear is predicted to own the most important market globally

both in terms useful and volume from 2014 to 2020.

5.1.3 Development of the industry

Until the half of the nineteenth century, practically all garments and shoes were made by individual

tailors and cobblers operating either alone or with one or two apprentices or journeymen. The goal of

each apprentice tailor was to find out the way to create a whole garment as presently as doable. The

output of a tailor or garment-worker was sometimes restricted to specific women’s, men’s, or children’s

garments; the skilled worker sought-after to find out the maximum amount as doable from a specialized

master craftsman. A similar apprentice-journeyman system prevailed within the footwear trade, within

which all cobbler craftsmen were male.

The advent of the stitching machine enlarged craftsmen’s retailers and converted them to factories. In

several factories staff in hand their machines and carried them from manufactory to manufactory

whenever they modified jobs. Needle workers lugging their machines on their backs were a typical sight

on the downtown side streets of New York City, the garment-manufacturing capital of the world at the

flip of the twentieth century. Taking advantage of the low capital investment per employee, several

wear entrepreneurs began to farm out their cut clothes to be stitched reception. The bundle brigades—

men, women, and youngsters trudging through the streets lugging bundles of cut or finished clothes to

and from their flats within the side tenements—replaced the sewing-machine carriers of previous years.

Most attire factories at this point were as thronged, poorly lit, airless, and insanitary because the home

workshops. The term manufactory was coined for such factories and residential workshops at the start

of the twentieth century, once staff within the attire industries began forming unions to urge higher pay

and dealing conditions. The International Ladies’ Garment Workers’ Union, organized in 1900, and

therefore the Amalgamated wear staff of America, shaped in 1914, became pioneer unions in mass-

production industries within the US furthermore because the largest garment unions within the world.

5.2 The Market place

5.2.1 Current Condition of the Market place

Right now, the current condition of the market place is in a very stable position. With the current annual

events been held and promotion throughout social media. Pallas is stronger in every each year. Been

collaborating a lot with other companies, make people want to know more about this product. And of

course, the people who keep on supporting the brand throughout social media show how consumers

love the brand so much.

5.2.2 Changes in Market place.

Positive Negative

• Provide a long lasting comfort shoes

• Favorite school shoes brand among

students

• Not all shoes display on website, are

sold in the store

6.1 Direct Competitors

Bata, North Star

Both Bata and North Star are one of the most common school shoes brand in Malaysia that have been

competed with Pallas for a long time

6.2 Indirect Competitors

Vans, DC Shoes

Vans and DC shoes are both most famous skate shoes in the world, although Pallas is not a skate shoes,

the competitors and Pallas had something in common which is, them both are Canvas shoes. Even the

design are almost identical, since both product are also a casual shoes same as Pallas.

Strength Weakness

• An established brand and has been in

business over 30 years (38 years)

• Wide range of color and sizes

• Cheap compare to its competitors

• People assumes this brand is only for

school student

• Hasn't been able to penetrate emerging

markets

Opportunity Threat

• New avenues of distribution

• Using social media activities to interact

more with consumers

• Large, big budgeted competitors

• Competitors create more convincing

shoes

8.1 Marketplace Research

At SOGO KL

School shoes is easy to sell especially during school season, differs to casual shoes

8.2 Market Observation

At Tesco Ampang

Even though there are not many people buying it, but can see people drop by and have a look

8.3 Online Survey

Write down all questions and answers in percentage value. Use pie/bar charts to illustrate the findings

Most of shoe user like casual and 2nd is sports

Most of them prefer well known shoes such as Nike and Vans.

The most importance aspect of these shoe user when they look for a new shoes is the Price

Most of them buy their shoes by going to the stores. This shows how buyers prefer to buy at the store,

which comes with many reason, most probably more secure, and can test it before buy.

85% says yes, another 15% says no, because either they are not from Malaysia or really never knew

about the shoes

The answers are 50/50, which is normal, to hear people says no, when it comes to this question,

because not all stores that sells pallas, sells the casual version.

The percentage on Yes, very convincing, because probably, this shoes are quite cheap, and remaining

percentage, most probably prefer branded shoes.

8.4 Interview

Friends of friend & Buyer

Normally, the people that know or used Pallas Jazz is a loyal buyer that have been use for ages, normally

they use it when they were a student, and they still buy the casual one, because the shoes is comfort

and nice for them to wear it.

8.5 Others

By interviewing the store worker itself from SOGO, the amount of people buying Pallas Jazz casual

shoes, is not many as expected, 8 pairs for 2 weeks on that month, but surprisingly, few of those are

bought from tourist or foreigner.

At Jusco Maluri At Tesco Ampang

Based on research through 3 different store, which is in SOGO, Jusco, Tesco, they all sell different type of

shoes. Most of shoes in SOGO are school shoes, and the casual ones outdated version, while in Jusco,

they sell school shoes and kids shoes. The only shop that have both casual and school shoes is in Tesco,

but for casual shoes, not all color that shows in website are in the store. The color are limited. I choose

these three store based on the website, which is one of the main stores in KL that they supplies this

shoes. Unfortunately, not all the shoes in the website sell in the stores.

9.1 OBJECTIVE

Local product is as good as the internationals, Pallas shoes is a long lasting shoes. Durable, comfort and

flexible. Can be used at any circumstances, includes dancing. Do not look down on local product, not all

famous products are as good as expected.

9.2 Proposed Primary Target Audience

Demographic Psychographic

• 13-30 years old , young adult

• Male and female

• Open to any race and ethnicity

• Urban and Suburban

• People who don’t really cares about brand

• People who want to feel the true

satisfaction of wearing a good shoes

• People who want to dance

9.3 - Big Idea and Advertising Strategy

The big idea is Jazz Dance, using the element on both music and dance to create a concept, that this

shoes have three element that needs when you are dancing, and that is durable, comfort and flexible.

Wanted to show how good is this shoes are, that you are no longer need to walk, but dance. Which with

a great tagline, Don’t Walk, Dance! The concept would be the world is your stage.

Visual for current strategies

http://www.bloomberg.com/profiles/companies/6934405Z:MK-southern-rubber-works-sdn-bhd

https://www.facebook.com/PallasMalaysia

https://www.pallas.com.my

Questionnaire

What type of shoes do you prefer?

• Sports

• Casual

• Works

• Boots

What is your favorite shoe brand(s)?

• Nike

• Puma

• Vans

• DC shoes

• Adidas

• New Balance

• Converse

• Saucony

• Pallas Jazz

What is your most important aspect when you look for a new shoes?

• Style

• Price

• Quality

• Durability

• Brand name

• Functionality

Where do you usually buy your shoes?

• Stores

• Online

Have you heard a shoe brand called Pallas?

If "Yes", you must recognize these brand as a school shoes, do you know they also sells casual shoes?

Would you buy it as your casual or any purpose shoes?

If you have never heard of Pallas shoes before this survey, do you have any interest to find out more

about this product?