Saturday, 24 September 2016

MARKETING REPORT

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:-

Collecting and analyzing information according to the physical location of the customer or other data source. Geographic segmentation is often used in marketing, since companies selling products and services would like to know where their products are being sold in order to increase advertising and sales efforts there.

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.

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