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Project proposal

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a proposal of research about customer satisfaction and brand loyality of two different brands

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Project proposal

  1. 1. RESEARCH PROPOSAL A study on Comparison of Brand loyalty and Customer satisfaction of BATA & SERVIS Shoes MUHAMMAD ASGHAR MBA EXECUTIVE | MC130400790 | VIRTUAL UNIVERSITY OF PAKISTAN | DATED: 19TH NOVEMBER, 2015 TABLE OF CONTENTS 1
  2. 2. Chapter No 1 1.1 Introduction of the project 3-5 1.2 Background 6-12 1.3 Objectives 13 1.4 Significance 13-14 Chapter No 02 Concept Review 15 Chapter No 03 Competitor Analysis 16 Chapter No 04: 4.0 Methodology 4.1 Data Collection Sources 17 4.2 Data collection Tools/Instruments 17 4.3 Subjects/Participants 17 4.4 Field Work/Data Collection 17 4.5 Data Processing & Analysis 18 Bibliography 18 CHAPTER NO 01 INTRODUCTION 2
  3. 3. There are numerous studies which show that increased customer satisfaction results in improved loyalty of the customers with the brand. The customers which are satisfied with the products and services of the company are not price sensitive and they also don’t easily get attracted towards the competitor’s offerings. The satisfied customers always show significant interest in buying additional products which are offered by the organization and it also help a countless transaction in order to ensure the success of the newly launched brands of the firm in the long run. The customer satisfaction leads to brand loyalty which impacts the profitability of the organizational positively. The business firms which are successful in retaining more than 5% of its customers can easily increase their profitability by 25% to 125%. In the modern world, customer satisfaction is the most important requirements for the businesses and without satisfied and happy customers, there is no guarantee of organizational survival, therefore, it is essential for the firms to modify their business strategies in order to make their target customers happy. The most important consideration is that customer satisfaction results in brand loyalty which will create a broad impact on the overall business results for the organization. One of the major tasks nowadays for the organizations operating in the restaurant and service industries is to provide and maintain the satisfaction of their customers and ensure their brand loyalty. In today’s global market, a brand’s marketing strategy must go head‐to‐head, not only with regional or national brands, but also with international competitors’ marketing strategies. This adds an entirely new dimension to a company’s marketing strategy when it comes to identifying, attracting, and retaining a market. This paper examines the concept of brand loyalty and customer satisfaction discusses the various issues connected with brand loyalty and customer satisfaction, discusses cross‐cultural views on brand loyalty and customer satisfaction regarding to BATA & SERVICE shoes throughout the world, and illustrates the proliferation of brand loyalty and customer satisfaction across international frontiers. The project is basically the comparative study of BATA & SERVICE shoes brand loyalty and customer satisfaction here is brief introduction of both SERVICE & BATA 3
  4. 4. 1: Service group operate in two sectors 1) Service sale corporation Pvt. Ltd. (Marketing) 2) Service Industry Limited (Manufacturing) Products of servis are shoes Tires, Tubes and rubber products. Today service is largest footwear exporter of Pakistan and won FPCCI trophy for best export performance sex times Service offer a new product range twice in a year at the start of the summer and winter seasons. Servis industry limited is a public limited company of Pakistan. It is the largest manufacturer of footwear, tires and tubes and has been largest exporter of the country for the last 10 years The company employs are more than 6000 in its facilities located in Gujrat, Muridke, Karachi,Lahore and Faisalabad. Its products quality and innovation for both domestic and international clients In addition Servis Sales Corporation has also developed brand partnership with leading national and international footwear brands including Nike, Claks, CAT, Hush Puppies, Pierre, Cardin and Urban Sole Shoes Brands are Don Carlos Cheetah Calza Liza Skooz Toz 2 Bata Ltd.established in 189 by Thomas Bata. The company is headed by third era of the Bata family with operations in 68 nations. Bata owns more than 4700 retail stores and 46 operations office. 4
  5. 5. Bata Pakistan started the business in Batapur from 1942. The registered office is in Lahore and the factories are in Mraka Multan road Lahore and the liaison office in Kalochi Bypass Karachi. Bata is also listed in Karachi and Lahore stock Bata Pakistan is serving its esteemed clients through a soil retail system comprising of more than 400 retail outlets. 467 enlisted wholesale merchants, 13 wholesales terminals, 28 wholesale wholesalers and 41 DSP wholesale establishments across the nation Being multinational organization BATA Pakistan has assumed a key part in the budgetary advancement of Pakistan. It has presented refined innovation and business ability to the nation and gave immediate and roundabout work to something like 10,000 individuals. Along sideits internationally to meet the requests of its esteemed clients As the corporate social obligation is vital piece of each business and Bata Pakistan fulfills its CSR by belittling different organizations and likewise join in rehabilitation of public opinion throughout the common debacles In addition Bata Pakistan is likewise working a worldwide program under the name of Bata children program, which means to make a brighter future for the youngster of the group in which we work .Under this system Bata Pakistan courage and upholds under privileged youngsters by giving shoes, gifts and likewise organizing distinct solid exercise for them which include values in their lives 5
  6. 6. BACKGROUND Servis Industries Limited Trading name Servis Group Type Public limited company Founded Lahore, Pakistan (1941) Headquarters Gulberg, Lahore, Pakistan Number of locations 3 Area served Worldwide Key people Ahmad Saeed (CEO) Products Rubber Services Servis Shoes Servis Tyres Number of employees 600+ Website servicegroup.com Servis Industries Limited (SIL) (or Servis Group) is a public limited company and a group of companies with its head-office in Lahore, Pakistan. Company's factories are located in the Gujrat city and Muridke. Company was established in 1941 with small business productions. Company is now producing only rubber materials. Servis Shoes is a shoe manufacturing company and Servis Tyres is a tire manufacturing company working under the SIL. Ahmad Saeed is the current chairman and director of the Servis Industries. Servis (or Servis Shoes) is a global footwear manufacturer and retailer with its acting head office in Gulberg, Lahore, Pakistan. The brand is working under the Servis Industries Limited (SIL). It was 6
  7. 7. established in January 1928 in Gulberg which was later shifted to Gujrat. Servis has seven brands which are Calza, Cheetah, Don Carlos, Liza, Skooz, Soul and Toz. Type Private company Industry Retail and Manufacturing Founded Zlín, Austria-Hungary (1894) Founder Tomáš Baťa Headquarters Lausanne, Switzerland Area served Worldwide Products Footwear, Clothing and Fashion accessory Owner Bata Family Slogan I love my shoes! Website www.bata.com Foundation The T. & A. Baťa Shoe Company was founded in 1894 in Zlín, Moravia, (then the Austro- Hungarian Empire, today the Czech Republic) by Tomáš Baťa his brother Antonín and his sister Anna, whose family had been cobblers for generations. The company employed 10 full-time employees with a fixed work schedule and a regular weekly wage, a rare find in its time. Tomáš, Antonín and their sister Anna Baťa In the summer of 1895, Tomáš found himself facing financial difficulties, and debts abounded. To overcome these serious setbacks, Tomáš decided to sew shoes from canvas instead of leather. This type of shoe became very popular and helped the company grow to 50 employees. Four years later, Bata installed its first steam-driven machines, beginning a period of rapid modernization. In 1904 Tomáš Baťa introduced mechanized production techniques that allowed the Bata Shoe Company to become one of the first mass producers of shoes in Europe. Its first mass product, the “Batovky,” was a leather and textile shoe for working people that was notable for its simplicity, style, light weight and affordable price. Its success helped fuel the company’s growth and, by 1912, Bata was employing 600 full-time workers, plus another several hundred who worked out of their homes in neighbouring villages. World War I 7
  8. 8. In 1914, with the outbreak of World War I, the company had a significant development due to military orders. From 1914 to 1918 the number of Baťa’s employees increased ten times. The company opened its own stores in Zlín, Prague, Liberec, Vienna and Pilsen, among other towns. In the global economic slump that followed World War I, the newly created country of Czechoslovakia was particularly hard hit. With its currency devalued by 75%, demand for products dropped, production was cut back, and unemployment was at an all-time high. Tomáš Baťa responded to the crisis by cutting the price of Bata shoes in half. The company’s workers agreed to a temporary 40 percent reduction in wages; in turn, Bata provided food, clothing, and other necessities at half-price. He also introduced one of the first profit sharing initiatives transforming all employees into associates with a shared interest in the company's success (today's equivalent of performance-based incentives and stock options). Shoemaker to the world Consumer response to the price drop was dramatic. While most competitors were forced to close because of the crisis in demand between 1923 and 1925, Bata was expanding as demand for the inexpensive shoes grew rapidly. The Bata Shoe Company increased production and hired more workers. Zlín became a veritable factory town, a "Bataville" covering several hectares. On the site were grouped tanneries, a brickyard, a chemical factory, a mechanical equipment plant and repair shop, workshops for the production of rubber, a paper pulp and cardboard factory (for production of packaging), a fabric factory (for lining for shoes and socks), a shoe-shine factory, a power plant and a farming activities to cover both food and energy needs... Horizontal and vertical integration. Workers, "Batamen", and their families had at their disposal all the necessary everyday life services: housing, shops, schools, hospital, etc. International growth Tomáš Baťa Lockheed 10 Electra executive aircraft operated before the Second World War by Bata in Europe Bata also began to build towns and factories outside of Czechoslovakia (Poland, Latvia, Romania, Switzerland, France) and to diversify into such industries as tanning (1915), the energy industry (1917), agriculture (1917), forest farming (1918), newspaper publishing (1918), brick manufacturing (1918), wood processing (1919), the rubber industry (1923), the construction industry (1924), railway and air transport (1924), book publishing (1926), the film industry (1927), food processing (1927), chemical production (1928), tyre manufacturing (1930), insurance (1930), textile production (1931), motor transport (1930), sea transport (1932), and 8
  9. 9. coal mining (1932). Airplane manufacturing (1934), synthetic fibre production (1935), and river transport (1938). In 1923 the company boasted 112 branches. In 1924 Tomáš Baťa displayed his business acumen by figuring out how much turnover he needed to make with his annual plan, weekly plans and daily plans. Baťa utilized four types of wages – fixed rate, individual order based rate, collective task rate and profit contribution rate. He also set what became known as Baťa prices – numbers ending with a nine rather than with a whole number. His business skyrocketed. Soon Baťa found himself the fourth richest person in Czechoslovakia. From 1926 to 1928 the business blossomed as productivity rose 75 percent and the number of employees increased by 35 percent. In 1927 production lines were installed, and the company had its own hospital. By the end of 1928, the company’s head factory was composed of 30 buildings. Then the entrepreneur created educational organizations such as the Baťa School of Work and introduced the five-day work week. In 1930 he established a stunning shoe museum that maps shoe production from the earliest times to the contemporary age throughout the world. By 1931 there were factories in Germany, England, the Netherlands, Poland and in other countries. In 1932, at the age of 56, Tomáš Baťa died in a plane crash during take off under bad weather conditions at Zlín Airport. Control of the company was passed to his half-brother, Jan, and his son, Thomas John Bata, who would go on to lead the company for much of the twentieth century guided by their father’s moral testament: the Bata Shoe company was to be treated not as a source of private wealth, but as a public trust, a means of improving living standards within the community and providing customers with good value for their money. Promise was made to pursue the entrepreneurial, social and humanitarian ideals of their father. The Baťa company was apparently the first big enterprise to systematically utilise aircraft for company purposes, including rapid transport of lesser personnel on business like delivery of maintenance men and spares to a location where needed, originating the practice of business flying. Jan Antonín Baťa At the time of Tomáš's death, the Bata company employed 16,560 people, maintained 1,645 shops and 25 enterprises. Jan Baťa, following the plans laid down by Tomáš Baťa before his death, expanded the company more than six times its original size throughout Czechoslovakia and the world. Plants in Britain, the Netherlands, Yugoslavia, Brazil, Kenya, Canada and the United States, followed in the decade. In India, Batanagar was settled near Calcutta and accounted from the late 1930s nearly 7500 Batamen. The Bata model fitted anywhere, creating, for example, canteens for vegetarians in India. In exchange, the demands on workers were as strong as in Europe: "Be courageous. The best in the world is not good enough for us. Loyalty gives us prosperity & happiness. Work is a moral necessity!" Bata India was incorporated as Bata Shoe Company Pvt. Ltd in 1931 and went on to become Bata India Ltd. in 1973. Batanagar factory is the first Indian shoe manufacturing unit to receive the ISO 9001 certification in 1993 As of 1934, the firm owned 300 stores in North America, a thousand in Asia, more than 4,000 in Europe. In 1938, the Group employed just over 65,000 people worldwide, including 36% outside Czechoslovakia and had stakes in the tanning, agriculture, newspaper publishing, railway and air transport, textile production, coal mining and aviation realms. 9
  10. 10. Bata-villes Company policy initiated under Tomáš Baťa was to set up villages around the factories for the workers and to supply schools and welfare. These villages include Batadorp in the Netherlands, Baťovany (present-day Partizánske) and Svit in Slovakia, Baťov (now Bahňák, part of Otrokovice) in the Czech Republic, Borovo-Bata (now Borovo Naselje, part of Vukovar in Croatia then in the Kingdom of Yugoslavia), Bata Park in Möhlin, Switzerland, Bataville in Lorraine, France, Batawa in Canada, East Tilbury in Essex, England, Batapur in Pakistan and Batanagar and Bataganj in India. There was also a factory in Belcamp, Maryland, USA, northeast of Baltimore on U.S. Route 40 in Harford County. The British "Bata-ville" in East Tilbury inspired the documentary film Bata-ville: We Are Not Afraid of the Future. World War II Just before the German occupation of Czechoslovakia, Baťa helped re-post his Jewish employees to branches of his firm all over the world. Germany occupied the remaining part of pre-war Czechoslovakia on 15 March 1939; Jan Antonín Baťa then spent a short time in jail but was then able to leave the country with his family. Jan Antonín Baťa stayed in America from 1939–1940, but when the USA entered the war, he felt it would be safer for his co-workers and their families back in occupied Czechoslovakia if he left the United States. He was put on British and US black lists for doing business with the Axis powers, and in 1941 he emigrated to Brazil. After the war ended, the Czechoslovak authorities tried Baťa as a traitor, saying he had failed to support the anti-Nazi resistance. In 1947 he was sentenced in absentia to 15 years in prison. The company's Czechoslovak assets were also seized by the state – several months before the Communists came to power. He tried to save as much as possible of the business, submitting to the plans of Germany as well as financially supporting the Czechoslovak Government-in-Exile led by Edvard Beneš. In occupied Europe a Bata shoe factory was connected to the concentration camp Auschwitz- Birkenau The first slave labour efforts in Auschwitz involved the Bata shoe factory. In 1942 a small camp was established to support the Bata shoe factory at Chełmek with Jewish slave labourers Post-war Bata International Centre 1965-2004 Tomáš's son Thomas manager of the buying department of the English Bata Company was unable to return until after the war. He was sent to Canada by his uncle Jan, to become the Vice President of the Bata Import and Export Company of Canada, which was founded in a company town named Batawa, opened in 1939. Foreign subsidiaries were separated from the mother company, and ownership of plants in Bohemia and Moravia was transferred to another member of the family. 10
  11. 11. After World War II, governments in Czechoslovakia, East Germany, Poland and Yugoslavia confiscated and nationalized Bata factories, stripping Bata of its Eastern European assets. From its new base in Canada, the company gradually rebuilt itself, expanding into new markets throughout Asia, the Middle East, Africa and Latin America. Rather than organizing these new operations in a highly centralized structure, Bata established a confederation of autonomous units that could be more responsive to new markets in developing countries. In 1964, the Bata Shoe Organisation moved their headquarters to Toronto, Canada — and in 1965 moved again, into an ultra-modern building, the Bata International Centre. The building, located on Wynford Drive, in suburban North York was designed by architect John B. Parkin. Bata became official sponsor of 1986 FIFA World Cup held in Mexico. Bata also sponsored 2014 Electronic Sports World Cup.[11] Czechoslovakia after 1989 After the Velvet Revolution in November 1989, Thomas J. Baťa arrived as soon as December 1989. The Czechoslovak government offered him the opportunity to invest in the ailing government-owned Svit shoe company. Since companies nationalised before 1948 were not returned to their original owners, the state continued to own Svit and privatised it during voucher privatisation in Czechoslovakia. Svit's failure to compete in the free market led to decline, and in 2000 Svit went bankrupt. Present After the global economic changes of the 1990s, the company closed a number of its manufacturing factories in developed countries and focused on expanding retail business. Bata moved out of Canada in several steps. In 2000, it closed its Batawa factory. In 2001, it closed its Bata retail stores, retaining its "Athletes World" retail chain. In 2004, the Bata headquarters were moved to Lausanne, Switzerland and leadership was transferred to Thomas G. Bata, grandson of Tomáš Baťa. The Bata headquarters building in Toronto was vacated and eventually demolished to much controversy. In 2007, the Athletes World chain was sold, ending Bata retail operations in Canada As of 2013, Bata maintains the headquarters for its "Power" brand of footwear in Toronto. The Bata Shoe Museum, founded by Sonja Bata, and operated by a charitable foundation, is also located in Toronto. Although no longer chairman of the company, the elder Mr. Bata remained active in its operations and carried business cards listing his title as “chief shoe salesman.” In 2008, Thomas John Bata died at Sunnybrook Health Sciences Centre in Toronto at the age of 93. Bata estimates that it serves more than 1 million customers per day, employing over 30,000 people operates more than 5,000 retail stores, manages 27 production facilities and a retail presence in over 90 countries mostly in Asia, Europe and Australia. Bata has a strong presence in countries like India where it has been in existence since 1931. Bata India has five factories and two tanneries. The Mokameh Ghat tannery in Bihar (1952) is the second largest in Asia. 11
  12. 12. Bata brands Bata Store Wenceslas Square in Prague, the Czech Republic - 2005 • Bata (Baťa in the Czech Republic and Slovak Republic) • Bata Comfit (comfort shoes) • Ambassador (classic men's shoes) • North Star (urban Shoes) • Weinbrenner (premium outdoor shoes) • Marie Claire (women's shoes) • SunDrops (women's shoes) • Bubblegummers (children's shoes) • Baby Bubbles (children's shoes) • Safari (desert shoes) • Power (athletic shoes) • Hush Puppies (premium shoes) • Patapata (flip flops) • Toughees (school shoes) • Verlon (school shoes) • Teener (school shoes) • Footin (trendy shoes) • Bata Industrials (work & safety footwear) • SPARX (sport shoes) 12
  13. 13. OBJECTIVES a. To determine the brand loyalty & customer satisfaction of Bata shoes b. To determine the brand loyalty & customer satisfaction of Service shoes c. Compare the loyalty of Bata and service shoes SIGNIFICANCE There are numerous studies which show that increased customer satisfaction results in improved loyalty of the customers with the brand. The customers which are satisfied with the products and services of the company are not price sensitive and they also don’t easily get attracted towards the competitor’s offerings. The satisfied customers always show significant interest in buying additional products which are offered by the organization and it also help a countless transaction in order to ensure the success of the newly launched brands of the firm in the long run. The customer satisfaction leads to brand loyalty which impacts the profitability of the organizational positively. The business firms which are successful in retaining more than 5% of its customers can easily increase their profitability by 25% to 125%. In the modern world, customer satisfaction is the most important requirements for the businesses and without satisfied and happy customers, there is no guarantee of organizational survival, therefore, it is essential for the firms to modify their business strategies in order to make their target customers happy. The most important consideration is that customer satisfaction results in brand loyalty which will create a broad impact on the overall business results for the organization. One of the major tasks nowadays for the organizations operating in the restaurant and service industries is to provide and maintain the satisfaction of their customers and ensure their brand loyalty. In today’s global market, a brand’s marketing strategy must go head‐to‐head, not only with regional or national brands, but also with international competitors’ marketing strategies. This 13
  14. 14. adds an entirely new dimension to a company’s marketing strategy when it comes to identifying, attracting, and retaining a market. This paper examines the concept of brand loyalty and customer satisfaction discusses the various issues connected with brand loyalty and customer satisfaction, discusses cross‐cultural views on brand loyalty and customer satisfaction shoes throughout the world, and illustrates the proliferation of brand loyalty and customer satisfaction across international frontiers. This study will be a significant for two shoes maker organization BATA and SERVIS regarding their customer loyalty and customer satisfaction. This study will help Bata and servis about their products in detail and their customer satisfaction regarding to those products. It will also help the inner view of each company also both company position in the market and also it will help to better understand the functioning of the company. It will also help the strength & weakness of both companies. It will also help to revise the company policies regarding to marketing to retain the customer and to compete with competitors. This study will also beneficial to students and instructors to be well aware of brand loyalty and customer satisfaction of specific brand and what strategies should be taken to retain the customer to be loyal with that brand and what activates loses the customer It will also help for future research in that two specific companies for their customer to make loyal or to increase loyal customer. 14
  15. 15. CHAPTER NO 02 CONCEPTUAL REVIEW • Brand loyalty of Bata Shoes • Brand loyalty of Service Shoes • Customer Satisfaction Defining Brand Loyalty Elements of Brand Loyalty • Personal Service • Pricing • Value Added Services • Finance • Trust Impact of Brand equity • Customer Satisfaction • Customer Retention 15
  16. 16. CHAPTER NO 03 COMPETITOR ANALYSIS • Reliability • Assurance • Tangibles • Empathy Defining Brand Loyalty Elements of Brand Loyalty • Personal Service • Pricing • Value Added Services • Finance • Trust Impact of Brand equity • Customer Satisfaction • Customer Retention 16
  17. 17. CHAPTER NO 04 METHODOLOGY 4.1 DATA COLLECTION SOURCE PRIMARY SOURCE: Consumer SECONDRY SOURCE: Internet 4.2 DATA COLLECTION TOOLS/INSTRUMENTS Questionnaire 4.3 SUBJECTS/PARTICIPANTS What is the target population? Users old and young What sampling frame will be used? 100 17
  18. 18. What type of sampling technique will be used? Convenience 4.4 FIELDWORK/DATA COLLECTION Survey, Questionnaires, by hand and email 4.5 DATA PROCESSING & ANALYSIS Bar Graph, Frequency Table, and MS excel BIBLIOGRAPHY https://en.wikipedia.org/wiki/Encyclopedia 18

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