MARKETING
REPORT
ORO
Shoes
“COMFORT AND CLASS FOR EVERYONE “
OVERVIEW
Names of company:-
Oro shoe
Focus on:-
Footwear for men and women
Target market:-
Men and women both mostly youth and middle age groups
Nature of business:-
To provide casual and formal shoes
Introduction about
company:-
Oro shoe started its operation in 2014. The main purpose of
this company is to provide customers a comfort level so they could feel free to
walk easy in their busy routine. Fashion would never be complete without a
well-designed pair of shoes. Your marketer designer introduce a number of
designers’ collections for men and women
Mission:-
·
To
help people look good and feel well.
·
To
provide customers satisfaction.
·
To
attract and retain the best people.
·
To
remain the most respected Footwear Company.
Competitors:-
All footwear in the markets
SWOT ANALYSIS
Definition:-
“SWOT Analysis is a useful technique for understanding
your Strengths and Weaknesses, and for identifying both the Opportunities open
to you and the Threats you face.”
Strengths
and weaknesses are often internal to your organization, while opportunities and
threats generally relate to external factors. For this reason, SWOT is
sometimes called Internal-External Analysis.
Managing the
marketing function begins with a complete analysis of the organization’s
situation. The market should conduct a SWOT analysis.
The SWOT
analysis is the observation over an organization of its
► Strength
►
Weakness
►
Opportunities
►Threat
The SWOT
analysis of ORO shoes company is given below:-
Strength:-
1.
Have control on environment:-
ORO Shoe Company has an
intention of creating a profitable sale environment in them
2.
Good services:-
ORO Shoe company has a
good n better services them other companies to give their customers
3.
Flexibility:-
It is a flexible
department store. It is available everywhere in the city. It can perform its
business activities both in much or less space
4.
Market research:-
ORO Shoe Company has a
authority of doing market research about other companies market position, ups
and downs of prices, need and wants of the customer. By seeing this all we can
make important marketing decision.
5.
Supply of goods according to new
fashion:-
ORO Shoe Company serves
the product according to the customers demand n according to the new style and
fashion
Weakness:-
1.
Delay in decision making:-
The successful decision making is the one who has the authority of taking
decision by consulting with other members. Sometime long term discussion and
arguing make the decision time consuming.
2.
Lack of advertising:-
Advertisement provided by ORO Shoe Company is not sufficient to hold more
customers. The net information does not meet to our need.
Opportunities:-
1.
Good will:-
Oro Shoe Company has
created a good will among the customer by providing better service a comfort
level.
2.
Direct communication:-
It maintains direct
communication with customers by Facebook, twitter, social media, print media
and electronic media.
3.
Creating relationship:-
It create direct relationship with
customer by good promotion, placing, advertising
Threats:-
1.
Competitors:-
Powerful international
and national brands which are operating in the market are the competitors of
ORO Shoe Company.
2.
Price rate: -
According to the changes
to the demand authority has to less the price
rate of community. It issues loss of the company.
FINANCIAL RESULTS:
The financial results of the Company
are as under: Rs.
('000)
Profit before taxation
1,887,916
Less: Provision for taxation:
Current
522,880
Prior years
10,970
Deferred
14,654 548,504
Profit after tax
1,339,412
To this must be added:
Unappropriated profit brought forward from
last year
757,564
Experience Adjustments - Employee
Benefits
5,012
Profit available for appropriations
2,101,988
To this the following must be deducted:
Final dividend 2013:
Rs. 35.00 per
share 264,600
Interim dividend 2014
Rs. 43.00 per share 325,080
Transfer to general reserve
490,000 1,079,680
Leaving an Unappropriated profit to be carried
forward to next year 1,022,308
BALANCE SHEET
AS AT 31
DECEMBER 20
Note 2014
(Rupees in ’000)
ASSETS:
NON-CURRENT ASSETS:
Property, plant and equipment:
6 1,392,241
Intangibles 7 4,929
Long term investments
8 38,000
Long term deposits and prepayments
9 46,487
1,481,657
CURRENT ASSETS:
Stores and spare parts
10 77
Stock in trade 11 2,729,707
Trade debts – unsecured
12 503,726
Advances – unsecured
13 60,596
Deposits, short term prepayments and
Other receivables
14 589,113
Interest accrued
3,927
Short term investment
15 1,130,000
Tax refunds due from Government
16 508,597
Cash and bank balances
17 383,689
5,909,432
TOTAL ASSETS:
7,391,089
EQUITY AND LIABILITY:
SHARE CAPITAL AND
RESERVES:
Authorized share capital
18.1 100,000
Issued, subscribed and paid up capital 18.2 75,600
Reserves:
Capital reserve
19 483
Revenue reserves 20 5,179,308
5,179,791
5,255,391
NON-CURRENT LIABILITIES:
Long term deposits
21 38,000
Deferred liability - employee benefits
22 53,135
Deferred taxation 23 66,976
158,111
CURRENT LIABILITIES:
Trade and other payables
24 1,454,707
Short term borrowings
25 -
Provision for taxation
522,880
1,977,587
CONTINGENCIES AND COMMITMENTS:
26
TOTAL EQUITY AND
LIABILITIES
7,391,089
The annexed
notes from 1 to 46 form an integral part of these financial statements.
PROFIT AND LOSS
ACCOUNT:
FOR THE YEAR
ENDED 31 DECEMBER 2014
Note 2014
(Rupees
in ’000)
SALES
27 13,767,156
COST OF SALES
28 8,388,033
GROSS PROFIT 5,379,123
DISTRIBUTION
COST
29 2,604,190
ADMINISTRATIVE
EXPENSES
30 877,256
OTHER EXPENSES
31 141,672
3,623,118
OTHER
INCOME
32 163,316
OPERATING PROFIT
1,919,321
FINANCE COST
33 31,405
PROFIT BEFORE TAXATION
1,887,916
TAXATION
34 548,504
PROFIT AFTER TAXATION
1,339,412
OTHER
COMPREHENSIVE INCOME (not to be reclassified to profit and loss)
Experience Adjustment -
Employee Benefits (net of tax) 22 5,012
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR
1,344,424
EARNINGS PER SHARE - BASIC
AND DILUTED
36 Rs. 177.17
CASH FLOW STATEMENT
FOR THE YEAR
ENDED 31 DECEMBER 2014
Note 2014
(Rupees in
’000)
CASH GENERATED FROM OPERATIONS
Profit
before taxation
1,887,916
Non-cash adjustment to reconcile
profit before tax to net cash flows:
Depreciation
of property, plant & equipment
168,974
Impairment
2,352
Amortization
of intangible assets
3,211
Provision
for gratuity
9,347
(Gain)/Loss
on disposal of property, plant and equipment (51,931)
Income from
short term investments
(42,187)
Income from
long term investments (3,614)
Exchange
loss
1,550
Finance
cost 6,303
Provision
for trade and other debts (net)
2,383
(Reversal)/Provision
for slow moving and obsolete stock (net) (1,066)
Provision
for obsolescence - stores and spare parts
4,790
100,112 107,506
Operating profit before
working capital changes
1,988,028
Working capital
adjustments:
(Increase) /
decrease in current assets:
Stores and
spare parts (4,867)
Stock in
trade
(360,339)
Trade debts
- unsecured
(142,602)
Advances -
unsecured
(32,504)
Deposits,
short term prepayments and other receivables
16,318
(523,994)
Increase / (decrease)
in current liabilities:
Trade and
other payables 174,757
Cash
generated from operations
1,638,791
Finance
costs paid (6,303)
Tax
paid
(564,707)
Gratuity
paid
(3,156)
Interest
income received
49,489
(524,677)
(Increase)/decrease
in long term prepayments
(22,978)
Increase in
long term deposits (1) 1,001
Net cash generated from
operating activities A 1,091,135
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of
property, plant and equipment
6.1 (505,102)
Decrease/(increase)
in capital work in progress 6.2 50,526
Purchase of
intangible assets
7 (3,199)
Proceeds
from sale of property, plant and equipment 6.4 59,221
Decrease/(Increase)
in long term investments
1 (1,001)
Net cash
used in investing activities
B (398,553)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends
paid
(586,832)
Net cash
used in financing activities
C (586,832)
NET INCREASE IN CASH
AND CASH EQUIVALENTS
A+B+C 105,750
CASH AND CASH
EQUIVALENTS AT BEGINNING OF THE YEAR
1,407,939
CASH AND CASH
EQUIVALENTS AT END OF THE YEAR 37 1,513,689
STATEMENT OF CHANGES IN
EQUITY
FOR THE YEAR
ENDED 31 DECEMBER 2014
Share Capital General Unappropriated
Capital Reserve Profits Total
Rupees in ‘000
Balance as at 1 January 2014 75,600 483 3,667,000 757,564 4,500,647
Final
dividend for 2013 @ Rs. 35.00 per share - - - (264,600) (264,600)
Transfer to
general reserve for 2013 - - 490,000 (490,000) -
Interim
dividend for 2014 @ Rs. 43.00 per share
- - - (325,080) (325,080)
Total
comprehensive income for the year
- - - 1,344,424 1,344,424
Balance as at 31 December 2014 75,600 483 4,157,000 1,022,308 5,255,391
SALE FORECAST
Share price forecast
We make an
idea of next 12 month price targets for ORO Shoe Company. We come up with the future share price forecast that we
have a median target of 1,360, with a high estimate of 1,575 and a low estimate
of 1,148.
High +48.8
% 1,575
Med +28.5
% 1,360
Low +8.5
% 1,148
MARKETING MIX
Definition:-
“Marketing is communicating the value of a product, services or brand to
customers for the purpose of promoting or selling that product, services or
brand.”
Explanation:-
Marketing mix is the set of controllable tactical marketing look-
product, price, place and promotion. The firm blends to produce the response it
wants in the target market. So 4p’s is the set of controllable tactical
marketing tools-
1. Product
2. Price
3. Place
4. Promotion
In the terms of Oro shoe Company the 4p’s
can be describe as:
Product:-
ORO Shoe Company we launch three types of products
1.
Male
product
2.
Female
product
Price:-
ORO Shoe Company is multiple shoe company. So the prices of
the products are fixed. We are sale shoes at three level of society.
|
High level price
|
5000-12000
|
|
Middle level price
|
2000-4500
|
|
Low level price
|
450-1500
|
Place:-
The head office of ORO Shoe Company is located at KARACHI
(PAKISTAN). But it shops are present all around the Pakistan i.e. Islamabad,
Lahore, Multan, Peshawar, Rawalpindi
Promotion:-
ORO Shoe Company
uses their promotion skill
in some tact’s that persuade their customer to buy the product.
·
They
do advertising for their new or developing product in the newspaper
and television.
·
They
do personal selling which turn their possible consumer in real consumer.
·
ORO
Shoe Company uses their sales
promotion tact by giving discount.
·
ORO Shoe Company maintains
a direct communication to the customer.
SEGMENTATION:-
Segmentation is on the basis of DEMOGRAPHIC,
PSYCHOGRAPHIC, and GEOGRAPHIC.
Demographic:-
It occurs when the market is
divided into groups on the basis of variables such as age, family size, family
life cycle, gender, income, religion, race, social class, nationality,
generation, education, and occupation. Demographic variables are the most
popular way to distinguish customer segments. One of the reasons that
demographic segmentation is so popular is that consumer desires, preferences,
and usage rates are often associated with demographic variables that are
relatively easy to quantify.
Demographic segmentation of ORO shoes:-
The target market for the oro shoes is all the
class of the society i.e. lowers, middle and upper. Though oro is minimizing
itself in selling footwear to lower segments, as Chinese products have taken
over the market completely. The in-house brands make it possible for oro to
cater to its upper and middle class segment. Oro cater to the needs of male,
female in equal proportion. The school shoes which oro sells are most prominent
and sell the most. All oro shoes reflect the new ideology like selling premium
brands like comfy and Martinaz. As for now ladies shoes are the main revenue
earner, contributing 40% of the company’s revenue. Followed by men shoes, and
sports shoes. The stores offer fresh collections that are visually stimulating.
Thus we can say presently their target customer base is the entire market
segmentation.
Psychographic:-
Psychographic segmentation, which is sometimes
called Lifestyle. This is measured by studying the activities, interests, and
opinions of customers. It considers how people spend their leisure, and which
external influences they are most responsive to and influenced by.
Psychographic is highly important to segmentation, because it identifies the
personal activities and targeted lifestyle the target subject endures, or the
image they are attempting to project. Mass Media has a
predominant influence and effect on Psychographic segmentation. Lifestyle
products may pertain to high involvement products and purchase decisions, to specialty
or luxury products and purchase decisions.
Psychographic Segmentation of ORO shoes:-
Oro
target group includes all the three sections of the society. They like the
brands because its aptly priced and has got a variety of products under its
name. 2. Oro offers quality products at reasonable rate which makes it clear
favorite among the mass. 3. Shoes for all seasons, age groups and gender.
Global Existence of Oro Shoes:-
Oro is
one of the world’s leading footwear retailers and manufacturers with operations
across 5 continents managed by 3 regional meaningful business units (MBUs). The
MBU approach provides quality resources and support in key areas to the
companies operating in similar markets such as product development, sourcing or
marketing support. Each MBU is entrepreneurial in nature, and can quickly adapt
to changes in the market place and seize potential growth opportunities. Oro’s
strength lies in its worldwide presence. While local companies are
self-governing, each one benefits from its link to the international
organization for back-office systems, product innovations and sourcing.
Geographic:-
Geographic Segmentation of ORO shoes:-
Oro products are made keeping in mind people and
their choices from different parts of Pakistan as it has positioned itself as a
truly Pakistani footwear brand which caters the needs of all Pakistanis all
across the country. Oro is present across the country through more than 700
stores. It has successfully placed itself as a Pakistani product. Stores are
well available throughout the country. It sells footwear according to the
season as well. They have specialized shoes for monsoon, summer, winter etc.
Oro stores are spread throughout the country.
