Sachin

A
SUMMER TRAINING REPORT

Conducted At

LIBERTY SHOES LTD.
On
STUDY OF NEW PRODUCT DEVELOPMENT

In the partial fulfillment of requirement for the award of degree of
BACHELOR OF BUSINESS ADMINISTRATION
To
Kurukshetra university, kurukshetra
(2014-2015)
SUBMITTED TO: SUBMITTED BY:
Miss. Nisha Gupta Name : Kajal Tomar
Project Training Incharge Class: B.B.A. V Sem.
Roll No. 7448
Uni. Roll No. __________

I.B. POST GRADUATE COLLEGE, PANIPAT

2

Students Declaration

I hereby declare that the Project Report entitled NEW PRODUCT DEVELOPMENT of
Liberty Shoes Ltd. Submitted by me in partial fulfillment of the requirements for the Bachelor
in Business Administration is my original work and that it has not previously formed the basis
for the award of Bachelor Degree.

Date KAJAL TOMAR

3

ACKNOWLEDGEMENT
Completing a task is never a one man effort. It is often the result of valuable contributors
of individuals in a direct or indirect manner ,which in shaping and achieving an objective .
Here we cant resist the temptation of expressing our thanks to those who have contributed
greatly accomplishing this task.
We express our gratitude to Mr. G.S SAINI, GM (HR) for allowing us to under go summer
internship in LIBERTY SHOES . Ltd. (Kutail). I would also like to acknowledge to my
sincere gratitude to and my project guide Asst. prof. Miss Nisha Gupta, Project Training
Incharge for helping me in this project.
I would not have completed this journey without the help, guidance and support of certain people
who acted as guides and friends along the way. I would like to express my deepest and sincere
thanks to my guide Mr. Amit arora (Marketing Manager) for their invaluable guidance and
help. The project could not be completed without their support and guidance. I am also thankful
to my family members specially all my friends who acted as a continuous source of inspiration
and motivated me throughout the duration of the project helping me a lot in completing this
project.

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EXECUTIVE SUMMARY

The objective of the project was STUDY ON NEW PRODUCT DEVELPOMENT OF
LIBERTY SHOES. The objective of this study was to analyze distribution channel of Liberty
Footwear with respect to the performance, sales effort and sales service.
Liberty Group started its operations in 1944 and today has an annual turnover of Rs.400 crore.
Beginning from a single store in Karnal, HI.B.na, manufacturing 4 pair of shoes a day in 1944,
to over 375 exclusive stores, 150 distributors & a retail base of over 6000 multi-brand outlets
and production of over 60,000 pairs a day in 6 factories at Karnal, Liberty puram, Gharaunda,
Roorke, Ponta sahib & Dehradun today, Liberty has indeed come a long way.
As the company was old and it was yet to be marketed to a large number of customers, it was
essential to know the feedback of customers in order to formulate effective marketing
Distribution channel and sales strategies in future and improve the quality of service to achieve
better consumer satisfaction.
The site visits and comparing made us possible to measure the satisfaction of consumer by
identifying the attributes, which gave consumer-varying degrees of satisfaction.
Questionnaire based on company format some attributes like requirement of customer and sales
services offered by company were identified as critical (motivational) factors for providing
satisfaction to consumers, while other factors like excisable deposit center, delivery was time to
time and also intimation regaining before the delivery of product. But absence of such hygienic
factors definitely results in a dissatisfied consumer. These hygienic factors could result in selling
but their absence can certainly unseal the product offering.
For this a questionnaire was prepared which gave a vague idea about the Dealer who were really
interested and wanted to know about various new opportunities in the industry sector. Go
through questionnaire in different area and customer of LIBERTY. The study was undertaken for
during two months. The researchers were given first 15 days for collection of data and scanning
the data. The questionnaire contains various aspects like there. Address, to know the product
quality of LIBERTY, delivery on time, technical fault and better relationship with LIBERTY in
future.

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INDEX
Certificate
Declaration
Acknowledgement
Executive summary
TABLE OF CONTENTS

CHAPTER-I: AIM & ESTABLISHMENT 09-25
OF THE COMPANY
INDIAN FOOTWEAR INDUSTY
POSITION AND DEVELOPMENT
LIBERTY PRODUCT
MISSION
CHAPTER-II: POLICY OF COMPANY 26-30
BOARD OF DIRECTORS
MANUFACTURING
DISTRIBUTION NETWORK
CHAPTER-III: ORGANIZATION STRUCTURE 31-36
OF THE COMPANY
Organisation structure of the company
Departments & functions of each department
Organisational chart of the company
Key Executives

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CHAPTER-IV: WORK EXPERIENCE 37-42
Work experience
Focus of the problems
Objective of the study
Swot analysis

CHAPTER-V: PROJECT 43-71
PRODUCT PLANNING
NEW PRODUCT DEVELOPMENT
WHY DO NEW PRODUCT FAIL ?
SHOE PROCESS
POLYVINYL CHLORIDE
ETHYLENE VINYL ACETATE
DIP & POLYURETHANE

CHAPTER-VI: EXPERIENCE GAINED AND 72-83
PROBLEM FACED
Experience gained & problem faced
What did you learn
Research Methodology
Data Analysis
Questionnaire

7

CHAPTER-VII: 84-92

CONCLUSION,
SUMMARY
FINDINGS
RECOMMENDATIONS

8

CHAPTER-I
1. Establishment of the company
2. Position in Industry
3. Mission of the company
4. Types of products

9

Establishment of Liberty company
Liberty Background Information
Liberty Group started its operations in 1944 and today has an annual turnover of Rs. 400
crore. Beginning from a single store in Karnal, HI.B.na, manufacturing 4 pair of shoes a day
in 1944, to over 375 exclusive stores, 150 distributors & a retail base of over 6000 multi-
brand outlets and production of over 60,000 pairs a day in 6 factories at Karnal, Liberty
puram, Gharaunda, Roorke, Ponta sahib & Dehradun today, Liberty has indeed come a long
way.
75 % of the total production is put into the domestic markets while 25 % is exported. Today
Liberty has a satisfied client base spanning 20 countries besides India, including some of the
most quality conscious and the leaders of fashion and design.
Whether it is the quality conscious Germany to which Liberty is the largest exporter of
shoes, or the haven of the best leather internationally the trendsetter Spain, or the country
that is the foremost in styles - Italy, or the Mecca of haute couture - France, or the top of
merchandising US, each one has a common factor Liberty exports to all these countries
and many more. The international arena has wide acceptance for Libertys trend setting
designs and latest technologically advanced products

10

Liberty has well equipped state of the art design centres which are constantly engaged in
designing and developing latest trend setting footwear for the young, fashion conscious
consumers in India and abroad. On an average 4000 new styles are developed every year out
of which roughly 1200 styles are selected and introduced in the market in two seasons
spring/summer and fall/winter.

I ndian Footwear I ndustry A Status Note
The footwear sector is a very significant segment of the leather industry in India; rather it is the
engine of growth for the entire Indian leather industry.
India is the second largest global producer of footwear after China, accounting for 13% of global
footwear production of 16 billion pairs. India produces 2065 million pairs of different categories
of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million pairs and
non-leather footwear - 1056 million pairs). India exports about 115 million pairs. Thus, nearly
95% of its production goes to meet its own domestic demand.
The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in
Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat,
Faridabad, Pune, Kolkata, Calicut and Ernakulam. About 1.10 million are engaged in the foot
wearmanufacturingindustry.
. Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies,
Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other
materials.

11

Besides, major brands are sourced from India, MNC brands are
sold in India and Indian brands sold in India.

MNC Brands Sold
in India
Indian Brands sold
in India
Aldo, Bally, Clarks, Ecco, Florshiem,
Ferragammo, Hush Puppies, Lee
cooper, Lloyd, Marks & Spencer,
Nike, Nine West,
New Balance, Reebok, Rockport,
Stacy Adams, Tods, Geox , Louis
Vuitton

Red Tape, Bata, Liberty,
Khadims, Lakhani, Metro,
Action
US Retail giant Wal-Mart has also begun sourcing footwear from India since the last two years.
The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of
capacities on modern lines with state-of-the-art machinery. To further assist this process, the
Government has permitted 100% Foreign Direct Investment through the automatic route for the
footwear sector.
Conducive Investment climate towards attracting overseas investments and increasing cost
competitiveness.
The Government of India is setting up dedicated Footwear Complex and Footwear Components
Part where footwear clusters are located.
There has been active interest in collaborating with Indian Footwear companies from European
countries like Italy, Spain and Portugal.

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Footwear I mports Global Trend:
Major I mporting Countries of Footwear (Leather and Non-Leather)
(Value in Million US$)
Country 2006 2007 2008 2009 2010
USA 19835.93 20039.13 20104.41 17904.13 21530.97
Germany 5591.77 5966.99 6529.33 6037.73 6814.89
France 4778.07 5473.04 5714.00 5379.78 5802.18
UK 4950.49 5281.55 5213.00 4772.59 5529.01
Italy 4047.37 4529.77 4810.25 4484.10 4928.22
Hong Kong 4984.59 4881.67 4944.40 3974.30 4676.06
Japan 3509.83 3750.04 4112.99 4077.58 4468.16
Russia 1121.68 2067.82 2843.81 2149.42 3768.80
Spain 2036.21 2388.74 2917.97 2464.34 2816.83
Netherlands 1978.33 2297.95 2570.86 2481.35 2752.38
Belgium 2057.39 2543.04 2892.62 2554.50 2554.59
Canada 1507.21 1677.05 1748.04 1645.09 1869.25
Source: ITC, Geneva

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Major Exporting Countries of Footwear (Leather and Non-Leather)
(Value in Million US$)
Country 2006 2007 2008 2009 2010
China 21014.63 24181.69 28115.96 26571.20 33665.11
Italy 8246.51 9712.94 10218.75 8189.14 8754.52
Hong Kong 5692.82 5639.64 5666.05 4502.49 5243.74

Belgium 2960.28 3375.63 3680.80 3464.10 3716.77
Germany 2607.89 2999.19 3611.90 3194.69 3443.61
Spain 2147.74 2440.47 2670.35 2487.12 2449.73
Indonesia 1514.63 1567.05 1828.44 1688.35 2428.72
Netherlands 1577.03 1811.96 2240.70 2235.80 2412.14
France 1535.21 1840.51 2015.13 1800.70 1969.58
Portugal 1465.11 1695.88 1797.00 1552.74 1719.67
India 1236.91 1489.35 1534.32 1507.59 1732.04

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15

The Indian Footwear Industry - Position and Development: Indian
Footwear Industry exists both in the traditional and modern sector. The traditional sector is main
lydominated by the small scale units, which accounts for nearly 55% of total production of
Indian Footwear Industry. Whereas, the modern sector is characterized by the large scale
manufacturers, who are more organized and focused towards serving the Industry with large
installed capacities, latest technology base and skilled manpower. Our Industry has expected to
reach a total turnover in leather and non-leather footwear at Rs. 8500-9500Crores including Rs.
1200-1400 Crores in the household segment in year 2010-11. Over of aperiod of time, Indian
Footwear Industry has adopted the systems of automated foot wear manufacturing by replacing
the manual footwear manufacturing methods. Most of the organised manufacturers are now
equipped with In-house Design Studios in corporating state-of-the-art facilities having latest
technologies. Liberty, ahead of many others, has also acquired ISO 9000, ISO 14000 as well as
SA 8000 certifications for its facilities and processes.
Footwear Industry has emerged as an important sector not only in India but at globallyas well.
India has been the second largest global producer of footwear after China, accounting for nearly
13% of global footwear production of 16 billion pairs. India produces 2065 million pairs of
different categories of footwear (leather footwear - 909million pairs, leather shoe uppers -100
million pairs and non-leather footwear - 1056million pairs). India exports about 115 million
pairs. Thus, nearly 95% of its production goes to meet its own domestic demand. During the year
2008-09, export of Foo twear(Leather, Footwear Components and Non-Leather Footwear) has
increased to Rs. 7053.80Crores from previous years' export of Rs. 5996.21 Crores, registering a
compounded annua lgrowth of 13.91%. Footwear segment has always been the major contributor
of the leather products exports from India, which is also evident from the following
categorisation of export made during the year 2008-09:
Opportunities/Threats. Risk and Concern: Being an established household
brand name, Liberty has always catered to the needs of its customers updating the latest
trends and fashion to maintain its presence in the market. Liberty has constantly been evolving to
keep pace with the changing trends, styles, beliefs and aspirations of customers while
maintaining the sanctity of certain traditions like workmanship and good value for money.

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As footwear retailing in India remain focused on Men's shoes only, there exists aplethora
of opportunities in the ladies' and kids' footwear segment with no organizedretailing
chain having a national presence in either of these categories. Considering thepresent
situation of footwear retailing as an opportunity, Liberty has been focusing on
manufacturing of footwear for entire family to target the untapped segment in foot wear.
With changing lifestyle and increasing affluence, Liberty has considered the domestic
demand of footwear to grow at a faster rate than has been seen in past.

Retail Optimism
Retail Industry has always been considered as one of the sectors, which is on the vergeof
escalation towards a well organized Industry in our economy. With a contribution of an
over whelming 14% to the national GDP and employing 7% of the total workforce in the
country, the retail industry is definitely one of the pillars of the Indian economy.
According to one of the estimates, retail sector is expected to grow almost three times
from its current levels to Rs. 29,70,000 Crores by 2015 leading India to the top 5 retail
markets in the world. The organized retailing is expected to grow to Rs. 50.000 Crores
and account for 12-15% of retail sales by 2015.
Liberty is optimistic for the benefits available from the development of the presentretail
conditions and the ongoing swing from unorganized retailing to organized. With
improved retail and supply chain infrastructure, the consumers would also be benefited
due to the availability of more product offerings and efficient services by Liberty.
Such developments in retail sector have also attracted many international giants like
Walmart, Carrefour, Tesco and Metro to foray into India's retail sector due to impact of
the progress of liberalization and globalization in our economy. Keeping the over all
economic development and interest of the consumers, Government of India has also
started contemplating the Foreign Direct Investment (FDI) in the retail trade, which will
ultimately help the manufacturer / retailers to deal with their end consumers in organized
manner. FDI in retail sector would assist Liberty to reinforce its brand strength, increase
its own retail presence and set up the dedicated teams to deal with modern retailers.
It has been contended that FDI in retail sector would create monopoly of big retailers,
which would adversely hit the suppliers due to reduced price offering under big buying.

17

Liberty, being backed by experience of more than 50 years in footwear industry with an
ation wide presence and better quality standards, is confident of overriding the apparent
risk. Liberty facilitates the availability of its products through its Pan-India distribution
network and exclusive showrooms, which helps in curtailing the competition risk due to
growing numbers of players.
Internal Control System and its Adequacy: Liberty has an adequate system of
internal controls involving authorization levels, supervision, checks, procedures through
documented guidelines, which provide that all Company's transactions are authorized,
recorded and reported correctly. Liberty also places its upmost importance on the
effective internal audit systems.
The CEO/CFO certification provided elsewhere in the Annual Report discusses the
adequacy of internal control systems and procedures followed by the Company.
Financial Performance: The highlights of the financial performance of the
Company during the year ended 31st March, 2010 have been stated in the Directors'
Report for the year ended 31st March, 2010, which appears separately in the Annual
Report. Brief details of the performance of the Company during the year under
consideration are given as under:
Capital Structure: During the year, there has been no change in the Capital Structure
of the Company and Paid up Capital of the Company was Rs. 1704 Lacs as on
31stMarch, 2010. The previous change in the capital structure of the Company was made
in year2006.
Reserves and Surplus: The Company's reserves and surplus increased from Rs.
10529.99 Lacs to Rs. 11450.30 Lacs in 2009-10. Free reserves accounted for 99.97% of
the total reserves as on 31st March, 2010.
Gross Block: Liberty's Gross Block increased by Rs. 480.28 Lacs to Rs. 13653.25Lacs
in 2009-10. The increase was mainly on account of normal capital expenditure require
that plants.
Investments: Liberty's investments stood at Rs. 1750.19 Lacs (previous year Rs.
2033.99 Lacs) in 2009-10 as Liberty has divested its stake in its Joint Venture i.e. Foot

18

mart Retail (India) Ltd. In addition, Liberty has also subscribed to Zero % Fully
Convertible Debentures of Rs. 500.00 Lacs in its retail subsidiary during the year.
Total Income and Profits: Liberty's total income, comprising sales and other
income, increased from Rs. 24893.46 Lacs to 26684.94 Lacs in 2009-10. Profit before
tax, after making a provision for depreciation, increased from Rs. 728.68 Lacs to Rs.
932.15Lacs in 2009-10. The Company's net profit, after considering a tax provision of
Rs. 163.15Lacs (as against the previous year's Rs. 149.40 Lacs), MAT Credit Entitlement
of Rs. 141.65 Lacs (previous year's Rs. 119.38 Lacs) and a deferred tax asset of Rs. 56.55
Lacs(as against previous year's assets of Rs. 55.86 Lacs), stood at Rs. 967.21 Lacs in
2009-10(as against the previous year's Rs. 754.52 Lacs).
Interest and Financial Cost: Liberty's interest and financial costs stood at Rs.
899.19 Lacs in 200910 (previous year's Rs. 1256.41 Lacs), comprising interest on Term
Loans and working capital requirements. The saving in interest and financial costs was
due to reduction in working capital deployment and repayment of term loan.
Secured Loans: During the year under review, the Company availed Term Loan of
Rs. 46.94 Lacs (as against previous year's Rs. 25.00 Lacs). The outstanding amount of the
Term Loan as on 31st March, 2010 was Rs. 223.71 Lacs (as against previous year's Rs.
724.82Lacs)
The amount of working capital loan primarily secured through the Company's current
assets stood at Rs. 7280.61 Lacs compared to Rs. 7540.51 Lacs in the previous year.
Inventories: Inventories, comprising finished goods, raw materials, work in
processetc. as at 31st March, 2010, stood at Rs. 6971.40 Lacs (as against previous year's
Rs. 6727.25 Lacs).
The inventory-turnover ratio for the year ended 31st March, 2010 was 96 days as
against99 days in the previous year.
Sundry Debtors: Sundry Debtors, with an average realization period of 94 days stood
at Rs. 6845.15 Lacs in 2009-10 (as against the previous year's Rs. 7043.22 Lacs). Out of
the Sundry Debtors, Rs. 772.99 Lacs (as against the previous year's Rs. 1073.79 Lacs)
were due from overseas customers. The Company after considering the recovery process
has media provision of Rs. 315.58 Lacs (as against previous year's Rs. 355.21 Lacs) for

19

doubtful debts. During the year, the Company has also written off its book debts of Rs.
296.31 Lacs(as against previous year's Rs. 3.92 Lacs)
Loans and Advances: The Loans and Advances given by the Company included an
advance Income Tax (including Minimum Alternate Tax) of Rs. 151.94 Lacs in 2009-10
(as against the previous year's Rs. 88.91 Lacs), fringe benefit tax of Nil (as against the
previous year's Rs. 30.29 Lacs), export benefit receivables of Rs. 159.36 Lacs,,, (as
against the previous year's Rs. 95.72 Lacs) and prepaid expenses of Rs. 36.40 Lacs (as
against the previous year's Rs. 28.66 Lacs). The security amount of Rs. 1564.32 Lacs (as
against previous year's Rs. 1486.17 Lacs) continued to include an amount of Rs. 1375.00
Lacs (as against previous year's Rs. 1375.00 Lacs) paid under the agreements dated 31st
March, 2003 forsecuring franchise and exclusive license arrangements.
Current Liabilities: The Sundry Creditors of Rs. 3570.54 Lacs included Rs.
117.59Lacs towards capital goods (as against the previous year's Rs. 378.99 Lacs),
represented an amount of Rs. 426.92 Lacs (as against the previous year's Rs. 302.03
Lacs) due towards M/s. Liberty Enterprises, Liberty Group Marketing Division, Liberty
Footwear Co. under the terms of the respective agreements dated 31st March, 2003.

20

MI SSI ON
To set quality standard, as benchmark to be
overachieved every time..
To constantly be open to change in world of
technology and ideologies

VISION & VALUES

21

Our Vision and Values
Our Vision
Our vision is to develop Liberty Mutual Insurance Europe into an internationally recognised
premier provider of insurance products and services using broker distribution focused on
underwriting discipline and product innovation contributing positively to the Liberty Mutual
Group by consistently achieving underwriting profitability.
Our Core Values
During employment at Liberty, we expect our employees to share and exude our core values and
qualities which are to:
solicit and respect the opinion of others
apply common sense
be flexible to embrace changes
lead by example
work as a team
exhibit technical judgment
exhibit balanced personal judgment
seek to innovate in all aspects of the Company
work towards underwriting profitability, where applicable
comply with regulatory guidelines

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LI BERTY PRODUCT

LIBERTYBRANDS:
Liberty has created a repertoire of 11 well developed brands, each one of which has been
painstakingly nurtured to cater to its specified target group. Care has been taken to create a
specific identity for each brand and to provide the latest international and most fashionable
designs in the latest colours and materials in each category.

23

Libertys GLIDERS
caters to the specific need of informal, semi-formal footwear as well as beachwear for the age
group of 2- 45 years.

FOOTFUN has been created as an exclusive brand for children in the age group of 1 to 12
years.

FORCE 10: Long perceived to be the flagship brand of Liberty, Force 10, today is
synonymous with value for money fashion sports shoes.

FORTUNE comprises of mens formal and casual shoes in Leather from the House of
Liberty. These shoes, meant for todays students and executives in the age group of 18-45,
combines the latest trends in formal wear abroad in to the most formal footwear.

WINDSOR provides casual and formal shoes for the young executives in the age group of
21 to 40 years.

COOLERS are the brand of mens sandals and slip-ons. These sandals cater to the age

group of 21-45 years and are a stylish and comfortable accompaniment to any apparel.

SENORITA is a brand that caters to the high design and fashion styling amongst young
women. Bringing out the flair of each style, Senorita invites young women in the age group of
14-26 to be comfortable as well as look the most delicately and beautifully shoed.

24

TIPTOPP caters to providing comfortable and fashionable womens slip-ons and sandals.

WARRIOR: A range of safety shoes for institution sales and workers of the age group 21-
45 years comprise Warrior.

TOP BRANDS

25

CHAPTER-II:
POLICY OF COMPANY
MANUFACTURING
DISTRIBUTION NETWORK
ADVERTISEMENT OF THE COMPANY

26

Policy of the the liberty company

The Policies mentioned are applicable to libertyshoes.com:

Privacy refers to information that we at Liberty shoes Ltd. gather about you and its use
in the course of our business.
Liberty shoes collects personally identifying information only during contest and
sweepstakes. In addition, information is collected in certain portions of the site in which
guests specifically and knowingly provides such information along with content
submissions, community postings, suggestions, or voting. Liberty may use such
information for editorial and feedback purposes (to the extent that is explained when
guests provide the information). In the event Liberty plans to post any such information
on a site, guests are provided prior notification of such posting and can decline from
having such information posted.
Liberty reserves the right to change this policy at any time by notifying guests of the
existence of a new privacy policy. You can send mail with any further questions to us at:

27

Manufacturing
Liberty's manufacturing base includes six facilities spread across the numerous states, two in
Gharaunda and Liberty Puram (HI.B.na) where its primary and the largest manufacturing units
are situated, Paonta Sahib, (Himachal Pradesh) with two units and Roorkee (Uttarakhand). The
company has avoided locations in the conventional Indian shoe manufacturing locations such as
Agra, Kanpur, Noida, Chennai etc.

Distribution network

Marketing network

National

International

Office

13 2

Distribution

150 10

Exclusive showroom

350 10

Shoe stations

7000 500

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ADVERTISEMENT OF THE COMPANY

1. Advertisement:-

Advertising or as a common typographical error, advertising is a form of communications
for marketing and used to encourage or persuade an audience (viewers, readers or listeners;
sometimes a specific group) to continue or take some new action. Most commonly, the desired
result is to drive consumer behaviour with respect to a commercial offering, although political
and ideological advertising is also common. The purpose of advertising may also be to reassure
employees or shareholders that a company is viable or successful. Advertising messages are
usually paid for by sponsors and viewed via various traditional media including mass media such
as newspaper magazines, television commercial, radio advertisement, outdoor advertising or
direct mail; or new media such as blogs, websites or text messages.

2. Online advertising:
Online advertising is a form of promotion that uses the Internet and World Wide Web for
the expressed purpose of delivering marketing messages to attract customers. Online ads are
delivered by an ad server. Examples of online advertising include contextual ads that appear on
search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising,
online classified advertising, advertising networks and e-mail marketing, including e-mail spam.

4. Global advertising:

Advertising has gone through five major stages of development: domestic, export,
international, multi-national, and global. For global advertisers, there are four, potentially
competing, business objectives that must be balanced when developing worldwide advertising:
building a brand while speaking with one voice, developing economies of scale in the creative
process, maximising local effectiveness of ads, and increasing the companys speed of
implementation. Born from the evolutionary stages of global

29

CHAPTER-III
1. Organizational structure of the company
2. Departments & functions of each department
3. Organizational chart of the company
4. Key Personnel

30

ORGANISATION STRUCTURE OF THE COMPANY
An organizational structure consists of activities such as task allocation, coordination
and supervision, which are directed towards the achievement of organizational aims. It can
also be considered as the viewing glass or perspective through which individuals see their
organization and its environment. Organizations are a variant of clustered entities. An
organization can be structured in many different ways, depending on their objectives. The
structure of an organization will determine the modes in which it operates and performs.
Employees within the functional divisions of an organization tend to perform a
specialized set of tasks, for instance the engineering department would be staffed only with
software engineers. This leads to operational efficiencies within that group. However it could
also lead to a lack of communication between the functional groups within an organization,
making the organization slow and inflexible.
As a whole, a functional organization is best suited as a producer of standardized goods
and services at large volume and low cost. Coordination and specialization of tasks are
centralized in a functional structure, which makes producing a limited amount of products or
services efficient and predictable. Moreover, efficiencies can further be realized as functional
organizations integrate their activities vertically so that products are sold and distributed quickly
and at low cost.
[11]
For instance, a small business could make components used in production of
its products instead of buying them. This benefits the organization and employees faiths.
Organizational structure allows the expressed allocation of responsibilities for different
functions and processes to different entities such as the branch, department, workgroup and
individual.

31

DIVISION AND ITS FUNCTIONS OF EACH DIVISION

Sales department:-
The sales department can have fairly good idea about their employees, that they are
satisfied or not.

Marketing department:-
The marketing department can use the figure indicating that they are putting their
efforts to plan their marketing strategies to achieve their targets or not.

Personnel department:-
some customers have the complaints or facing problems regarding the job. So the personnel
department can use the information to make efforts to avoid such complaints.

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Managing Director
Board of Directors
Chairman
Plant
Incharge

Asst. Manager
(Procurement)

Asst. Manager
(Accounts)
Dy. Manager
(Marketing)

Asst. Manager
(Engr.)

1for Rest of
DELHI
2 for
DELHI
2 Executives 3 Executives
Executives
South west Region
North East Region
Delhi Project Manager
Delhi Retail Manager

ORGANIZATIONAL CHART OF THE COMPANY

Regional Sales Manager

33

K
A
O
P
T
E
S
Top Level
Middle Level
Lower Level

34

BOARD OF DI RECTORS

Executive Director & CEO Adesh Kumar Gupta
Executive Director
AdarshGupta
Shammi Bansal
Director Satish Kumar Goel
Executive Director Sunil Bansal
Director
AmitabhTaneja
PremChandGarg
RaghubarDayal
Vivek Bansal
1Vice President & CS Munish Kakra
Additional Director Adeesh Kumar Gupta
Director Ramesh Chandra Palhan
Additional Director Pushpinder Singh Grewal

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CHAPTER-IV
1. Work experience
2. Conceptualizations
3. Focus of the problems
4. Objective of the study

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WORK EXPERIENCE

SIGNIFICANCE OF THE STUDY:-
To learn about the organization work.
To get the knowledge about the Training & Development of employees.
This study will indicate the current Market Trends
To learn the professionalism in the organization
This study will indicate the strong points and weaker points of development with its
competitors.
This study will help in forecasting the future trends.
To get the knowledge about the employees & workers thinking.
To get the knowledge about profit through Brand marketing.

Conceptualization

As in the today scenario, globalization is increasing day by day. Thus it is necessary to know
about brand of product. The main concept of choosing this project is to familiarize with the
products and Brand name.

Focus of problem
Their main focus is on training and development, because with the help of training and
development they can easily attain their target. Training is a short term process utilizing and
systematic organised procedure by which we learn technical knowledge and skills for definite
purpose, training and development learn how to perform his present job satisfactory. Now
technological changes arise if we dont give them training on time they didnt do their work
properly.

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OBJECTIVE OF STUDY
The objectives of study are as follows:
To study the implications of an effective performance appraisal system on the
productivity of employees and measure satisfaction of the employees from the current
appraisal system.
To conduct a comparative analysis of the performance of Officers and Technical Staff
Associates for the years 2009-10 and 2010-11. And to identify training needs of Officers
and Technical Staff Associates in the organization based upon the results of performance
appraisal.

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SWOT ANALAYSI S OF LI BERTY SHOES LTD

STP
Segment
Full Market Coverage in Income
Target Group
Liberated Youth which prefers fashionable footwear
Positioning
Stylish Freedom for Movement
SWOT Analysis
Strength
1.Wide Reach with 150 distributors, 350 exclusive showrooms
and more than 6000 multi-brand outlets
2.HumanTech Centers i.e. Liberty is high in Research and
Development
3.Old Established Brand with huge popularity
4. Among the top 5 leather footwear Manufacturers in the world
5. Good advertising and branding through TVCs and print ads
6. Has popular sub-brands like Coolers, Force10, Senorita,
Gliders
Weakness
1.Has limited franchise presence as compared to some other
footwear brands

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2. Lacks global presence, which can be a huge potential segment
Opportunity
1. Has increased reach in Southern India but with more number of
franchisee stores has an opportunity to increase reach PAN India
2. In India, People now look towards buying footwear as a blend
of fashion and comfort, so now has an increasing market size
3. Global expansion would help in brand building and sales
Threats
1.Intense Competition form existing brands
2.Commoditization if fashion footwear not differentiated well
3.Constantly changing footwear technology and

Case study of implementation of TOC in Liberty Shoes
India is in the midst of a retail revolution. By 2015, it is set to become one of the top five retail
markets in the world. The country also is the second-largest global producer of footwear. While
international brands such as Gucci, Charles and Keith, Nike, and Adidas have made their
presence felt in higher-end markets, domestic companies largely cater to the mass and economy
markets.

Liberty Shoes is one of those companies. Since opening in 1954, it has become one of the five
largest footwear manufacturers in the world and is the only Indian leather shoe brand. It
maintains a global presence, doing business in more than 25 different countries, including
Russia, Italy, and France, as well as throughout the Middle East. Marketing at Liberty Shoes
includes a network of more than 70 distributors; 5,000 multi-brand outlets; and exclusive
retailers, consisting of 148 showrooms and 54 Liberty-branded retail outlets.

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Four years prior to undertaking a new distribution and replenishment solution, Libertys
sales were flat and profits were negligible. Market share was less than 2 percent, despite its
reputation as a top domestically produced Indian brand. Even though sales were stagnant,
the company introduced many products each season under the assumption that new
fashion lines would increase sales.

We at Liberty Shoes have been fashioning footwear, for well over 50 years now, for the
style- conscious people around the globe. Currently with an annual turnover exceeding
INR.600 crore (U.S. $150 million), we figure amongst the top 5 manufacturers of leather
footwear of the world producing more than 50,000 pairs a day using a capacity of more
than 3 lacs square feet of leather per month. Helping us dress up the feet of the fashion-
driven and quality-seeking customers in more than 25 countries, which includes major
international fashion destinations like France, Italy and Germany, is our worldwide
distribution network of 150 distributors, 400 exclusive showrooms and more than 6000
multi-brand outlets. Our committment to quality is also evidenced by our ISO 9001: 2000
certification

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CHAPTER-V
PROJECT
NEW PRODUCT DEVELOPMENT
WHY WE NEED NEW PRODUCT?
FACTOR INFLUENCE OF CHANNELS OF DISTRIBUTION
FUNCTION
IMPORTANCE
STREATEGY

42

.

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New product development
In business and engineering, new product development (NPD) is the complete process of bringing a new
product to market. A product is a set of benefits offered for exchange and can be tangible (that is,
something physical you can touch) or intangible (like a service, experience, or belief). There are two
parallel paths involved in the NPD process: one involves the idea generation, product design and detail
engineering; the other involves market research and marketing analysis. Companies typically see new
product development as the first stage in generating and commercializing new product within the overall
strategic process of product life cycle management used to maintain or grow their market share.

The eight stages

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(1) Generating New Product Ideas : New product ideas may come
from customers, dealers, in company sources including the market
research group & external research organization. Customers problems
are the most fertile ground for the generation of new product ideas. In a
variety of product, ranging from shampoos to computers, company
workforce, market research staff, R&D staff & salesmen are also sources
of new product ideas. Market research group are a particularly useful
sources. They conduct frequent studies on the consumers, products,
competition etc. These studies often reveal product gaps- gaps between
existing supply of products. Gravity techniques like brainstorming &
synectics are also used for product idea generation. In brainstorming, a
small group of people is encouraged to come up with ideas on a specified
problem.
In synectics, the real problems is initially kept away from the group & only a
broader framework is given to them. Sometimes new product ideas come out
just as a matter of happening.

(2) Idea Screening :
In this stage, various new products ideas are put under rigorous screening by
evaluation committees. Answers are sought like: It there a felt need for the new
product? It is an improvement over the new product? etc.

(3) Concept Testing :
Concept testing is different from market test / test marketing. What is tested at this
stage is the product concept itself, whether the prospective customers understand the
product ideas, whether they are receptive forwards the ideas; whether they actually
need a product. This exercise helps the firm to thrash out much of the
vagueness associated with the new product idea. Concept testing is of

45

special importance when a totally new product in contrast to a mee too product
is being planned for introduction.

(4) Market Analysis :
This stage is of vital importance because several important decisions regarding the
project are undertaken based on the analysis done at this stage. This stage will
decide whether from the financial & marketing point of view, the project is worth
proceeding with. Investment analysis & profitability analysis of the project under
difference assumptions are made at this stage.

(5) Estimating the Demand for New Product :
Firms usually take up estimating the demand for the new product as a part of
business analysis / market analysis. There are 2 methods to estimate demand of

new products :-

(a) Substitution method
(b) End use method

In substitution method, the demand for the existing product is forecasted using standard forecasting
method. Based on that, an idea of the demand for the new product is gained. Analysis will show
which products & market are open for substitution by the new product. The estimated demand for the
existing product can serve as the maximum limit for the demand for the new product. In, end use
method, products that have an altogether new end use do come to the marketer once in a while. The
only way to assess the demand for such products is to define the end use of the new product & to
locate the potential customers for it. The aggregate of potential customers in each use category is
taken as the potential demand in that category. By adding the demand in the various use categories,
one can get an indication of the total potential demand for the new product. This is to be taken as

46

the upper limit of potential. In this method, the forecaster has to be particularly cautious in defining
the end use for the product.

(6) Actual Development of the Product :
In this stage, the firm develops the product as such. In the actual development,
production & marketing departments are actively involved besides R & D.

(7) Market Test :
Now, the new product has to be tried out in selected market segments. Market test is
essentially a risk control tool. It is experimental marketing at minimum cost & risk.
When firms decide on a full scale manufacturing & marketing of the product on the
basis of the results of the experiment, it helps avoid costly business errors.

(8) Test Marketing :
In test marketing, the new product, with the support of the chosen marketing mix is
actually launched & marketed in few selected cities / towns / territories. Test
marketing needs careful handling. Care is required in the first place in selecting the
test markets. Test marketing is also a time consuming process, it has to be carried
out for a fairly long duration in order to obtain a reliable indications. Eg. HUL
introduced organics, but failed.

(9) Commercialization :
At this stage, the company takes the decision to go in for large scale manufacturing
& marketing of the product. At this stage the company fully commits itself to
commercialize the new product with the required investment in manufacturing &
marketing.

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Why Do New Products Fail?

As important as it is to engage in continuous product development, many of these new products
will fail. New product failure rates have been recorded that are as high as eighty percent, and as
low as fifty percent. Which figure we believe is dependent upon how 'failure' and 'new product'
are defined. There also are many reasons why new products fail. This section defines what is
meant by the term 'failure' and summarizes the major reasons normally offered for why products
do fail.
Types of Product Failures
There are two common interpretations of what is meant by a 'new product failure.' Each
interpretation has implications for which product failure rates are more believable.
The Absolute Failure
The first type of failure is referred to as "the absolute" failure. This failure is one that does not
generate sufficient revenue to allow the firm to break even on its new product investment.
The Relative Failure
The less severe "relative" product failure generates sufficient product revenues to break even.
However, profit objectives are not achieved. In other words, this product makes money -- it just
does not make as much money as management hoped.
The instances of relative product failures probably are substantially higher than the numbers of
absolute failures. I suspect that the higher failure rates that have been reported in the literature

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refer to relative product failures. The number of absolute product failures probably is
substantially less.
The Causes of New Product Failure
An important question is why do new products fail? What are the causes of failure? Several
factors contribute to the high failure rates for new products in todays highly competitive
marketplace.
Lack of Relative Advantage
The first, and probably most important reason for failure, is simply that the new product does
nothing really new or unique for the consumer. This essentially means that the new product
possess little relative or differential advantage over existing products already on the market.
Inadequate Planning
Many products fail because the manufacturer did not do enough "homework." This is to say that
the new product planning process was somehow flawed. Generally, this means that the market
opportunity analysis (or MOA) was not conducted or missed some important information. For
example, Anheuser Busch's Dewey Stevens Wine Cooler failed due to poor planning. In the mid
1980s, Anheuser Busch, the world's leading beer manufacturer, launched Dewey Stevens Wine
Cooler with a poorly conceived and implemented promotion program that never targeted the
right audience for the product. In its promotional material, Dewey Stevens alternately tried to
appeal to woman, calorie counter consumers, and more sophisticated upscale consumers. The
varied positioning of Dewey Stevens created substantial confusion in the market concerning
Dewey Stevens image.
A second example is provided by the test market of Eli Cutter cigarettes discussed in
an earlier topic. Eli Cutter probably would have failed if it had been commercialized
due to its poorly conceived positioning strategy. The brand was positioned directly
against Marlboro, the leading brand in the market with a strong customer following.

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Better attention to marketing research and new product planning would have prevented taking
Eli Cutter to test market.
Poor Execution of Introduction
Poorly executed marketing programs, no matter how well they are conceived, also can result in
product failure. Poor execution entails an improperly conceived and poorly implemented
marketing mix. The product may have been promoted incorrectly, priced either too high or too
low, or distributed in inappropriate outlets. This is primarily a marketing failure.
Technical Problems During Introduction
Technical problems can also plague new product introductions leading to their failure. These
problems are problems with the basic functionality of the product that were not uncovered during
earlier functional testing and/or test marketing.
Poor Timing of Introduction
Poor timing of introduction can lead to failure. Introducing products during economic down-
turns or at about the same time as competitors are introducing similar products can severely limit
sales. Procter and Gamble introduced Encaprin in the mid 1980s as an extra strength pain
reliever. At introduction, Encaprin faced very intense competition both from Advil and Nuprin,
which also were recently introduced as arthritis pain relievers. Advil and Nuprin together had in
excess of a hundred million dollars in advertising budgets. The net effect was that Encaprin
could not break out of the promotional noise generated by these two brands.

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Shoe process:

1.Introduction:
The plant outlined in this proposal is just one of several dealing with the production of shoes.
However, this plant is unique, in that many types of materials may be used to produce a wide
variety of shoes including: PVC shoes, sandals, and slippers, genuine leather boots, high-heeled
shoes for women, dress shoes for men, as well as a wide variety of casual shoes for men and

51

women. The benefits of establishing a plant with the capability of producing such a wide variety
of sizes and styles are obvious, particularly from a marketing point of view. An equally
important benefit of operating such a plant is the fact that these shoes can be made from so many
different types of material including leather, synthetic leather, canvas, and nylon, as well as
PVC, PU, EVA, and rubber. The owner of such a plant can be sure he wills he able to keep up
with the demand generated around the world for a wide variety of shoes.
Of course the demand for shoes will never decline. Virtually, everyone in the world wears shoes
everyday of the year and as the worlds population and its standard of living increase, the
quantity of shoes sold in a given period of time will increase proportionately. All of this, in
conjunction with the fact that shoes inevitably wears out means that the demand for shoes will
continue to raise. This, of course, is no secret to the manufacturers of shoes in the Republic of
China, which have, for more than twenty years, been involved in improving the methods and
machinery used in producing shoes of all types. The endeavors of these companies have made
the Republic of China the number one exporter of shoes in the world. It is, therefore, only logical
that anyone wishing to make an investment in any country where the people desire to purchase
comfortable, attractive, durable, and inexpensive shoes, would want to take advantage of the
years of research done by the shoe makers in Taiwan and purchase the shoe making plant
outlined in this proposal.

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2.2ProcessDescription:
Since a single plant can produce so many types of shoes, it is not possible to go into a full
process description of every shoe. However, the process of making ladies shoes described below
outlines the basic steps involved in fabricating most kinds of shoes.

2.2.1 Material Preparation
2.2.1.1 Upper
2.2.1.1.1 Cutting
Sheets or strips of the materials used in making the upper of the shoe are cut into smaller
segments by an automatic cutting machine as illustrated in figure number 1.
The cutting die being used determines the size and shape of each segment. If leather is being
used, it is first split into the desired thickness.

2.2.1.1.2 Folding and Binding
before being sewn together, the edges of each segment are automatically folded and bound.
2.2.1.1.3 Stitching
The bound segments of material are then sewn together by a sewing machine to form the upper
of shoe, as illustrated in figure number 2.
2.2.1.1.4 Thermoplastic toe boxes, designed to provide support to the toe of the shoe, are made

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and inserted by a toe-puffing machine. At this point, the uppers are forwarded to the assembly
line for further processing.
2.2.1.2 Insole
2.2.1.2.1 The material used to make an insole is cut into the desired shape and size by the same
machinery used in cutting the uppers.
2.2.1.2.2 These segments of material are glued to the shank and shank-board. After gluing, the
mid sole is molded to fit the sole of the shoe, as illustrated in figure 3.

2.2.1.3 Sole and Heel
2.2.1.3.1.1 The soles and heels of shoes can be made from PVC or a wide variety of other
materials including leather, rubber, cork, and synthetic leather. Heels and soles made from
materials other than PVC are assembled from preformed materials as illustrated in figure 4. The
process of making PVC soles and heels described below is also the process, in its entirety, of
making the PVC sandals, slippers, and shoes mentioned in the introduction.
2.2.1.3.1.2 The appropriate quantities of coloring and forming agents are added to PVC and
mixed to a consistent texture.
(It should be noted that premixed materials are readily available on the open market.)
2.2.1.3.1.3 The PVC mixture is then fed into the holding tank of the direct injection-molding
machine.
2.2.1.3.1.4 The appropriate molds are attached to the machine.
2.2.1.3.1.5 The machine then automatically heats, mixes, and injects the PVC mixture into the
mold cavities.
2.2.1.3.1.6 After solidification has taken place, the molds are opened and the shoes or soles are
removed.
2.2.1.3.1.7 Both the heel and outsole re purchased from the outside source. The heel is cemented,
coated with heel lift, and then sealed with top lift, then sealed with top lift. Finally the heels are
cemented with the outsole as in figure 5.

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2.2.1.3.1.8 The shoes are visually examined for flaws, packed, and then stored or shipped.
2.2.1.3.1.9 The PVC soles are forwarded to the assembly area.
2.2.1.3.1.10 Production Lines:
2.2.1.3.1.11 Lasting: The insole in nailed to the last and the back part of the upper is molded into
shape by machine designed for that purpose. The completed upper is put into the last and lasted
by the lasting machine as in figure 6 and 7.
2.2.1.3.1.12 Forming: The sole is cemented to the upper by using high strength glue and heat-set
as in figure 8. The sole is pressed to ensure the seal with sole attaching machine.

2.2.1.3.1.13 Arrangement & Packing: The shoe is cooled and removed from the last as in figure
9. Then, the nails are imbedded in the heel with machine. Any thread or other waste material is
removed by a hot air blower. Foot patch is inserted into the shoe. The metal detector is used to
check for needles which protrude from the shoe during the manufacturing process. Finally the
shoe is cleaned and visually inspected for flaws or defects and packed into boxes.
2.2.1.3.1.14Finishing,InspectionandPacking .
Any thread or other waste material is removed by a hot air blower. Shoelaces and insoles are
inserted into the shoes. A metal detector is used to check for needles, which may have been
imbedded in the shoe during the manufacturing process. Finally the shoe is cleaned and the shoe
is cleaned and visually inspected for flaws or defects and packed in to boxes.

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3.Plant Description

3.1Productioncapacity:
The production capacity of a plant will vary depending on the number of machines used, the
allocation of manpower the overall production efficiency and the type of shoe being produced.
For example, a plant equipped with the machinery and equipment described in section 3.4,
utilizing the number of workers described in section 3.3, should be able to produce 2000 pairs of
ladies shoes per eight hours. However, inefficient operation of the plant could drop that figure to
as low as 1200 pairs for the same period of time.

3.3 Machinery and Equipment
No. Item Set
Machines for Insole Moulding division:
1
Insole moulding conveyor (18m long)
(include 1-9.6KW heating case,
1
2 Shank board skiving machine, 1
3 Shank riveting machine 1
4 Mid sole molding machine, and 1
5 Insole shaving machine) 1
Machines for sole injection molding division:
6 Chipping machine 1
7 Mixing & drying machine 1

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No. Item Set
8 Injection molding machine 2
Machines for Cutting Division:
9 Hydraulic cutting machine 3
Machines for Stitching Division:
10 Leather skiving machine 3
11 Edge folder for vamps & leathers 2
12 Edge binding machine 2
13 Flat bed single needle sewing machine 10
14 High post double needle sewing machine 10
15 High post single needle sewing machine 12
16 Trimming machine for inner lining & sole 2
17 Thermoplastic toe puff applying machine 1
Machines for Production Line Division:
18 Lasting conveyor (18m long)
(Including 19.6KW heating case and vulcanizing machine)
19 Forming conveyor 20m long 1

Including 1-2.4KW, 1-6.8KW, 1-9.6KW heating case and rapid cold forming
machine

20 Arrangement & packing conveyor (12m long) 1
21 Air nail tool 1

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No. Item Set
22 Back part molding machine 2
23 Front lasting machine 1
24 Rear rimming machine 1
25 Sole grinder machine 1
26 Sole attaching machine 1
27 Last slipping machine 1
28 Heal nailing machine 1
29 Packing machine 1
30 Air compressor 1

3.3.1MiscellaneousEquipment
3.3.1.1ShoeLasts
Approximately 1,200 pairs of aluminum or plastic lasts are needed for each production line.
3.3.1.2ToolingEquipment
Some hand tools will need to be purchased such as: tensile strength tester, hammers, pliers, are
measuringneedles,cuttingdies,holdpunches,andscissors.
3.3.1.3SpareParts

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Any spare parts needed during the first two years of operation will be supplied. This will account
forapproximately10%ofthetotalinvestment.

3.4 Manpower Required:
Job Classification Person
Staff 30
Operator 120
Total 150

A Office I Stitching division
B Raw material storage area J Hand vamping division
C Insole molding division K Semi finished product warehouse
D Injection molding area L Production Line Division Storage area
E Painting division M Products Warehouse
F Utility room (Compressor) N Quality control and factory office
G Maintenance room O Research and development lab
H Cutting division area P Parking lot

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Polyvinyl chloride
Polyvinyl chloride, commonly abbreviated PVC, is the third-most widely produced plastic, after
polyethylene and polypropylene. PVC is used in construction because it is more effective than
traditional materials such as copper, iron or wood in pipe and profile applications. It can be made
softer and more flexible by the addition of plasticizers, the most widely used being phthalates. In
this form, it is also used in clothing and upholstery, electrical cable insulation, inflatable products
and many applications in which it replaces rubber.
Pure polyvinyl chloride is a white, brittle solid. It is insoluble in alcohol, but slightly soluble in
tetrahydrofuran
PVC is used extensively in sewage pipe due to its low cost, chemical resistance and ease of
jointing

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High and low molecular weight phthalates
Phthalates can be divided into two groups: high and low molecular weight, with high molecular
weight phthalates now representing over 80 percent of European market for plasticisers. Low
molecular weight phthalates include those with 3-6 carbon atoms in their chemical backbone; the
most common types being Di(2-ethylhexyl) phthalate (DEHP), Di-butyl phthalate (DBP), Di-
isobutyl phthalate (DIBP) and Butyl benzyl phthalate (BBP). Because of possible health effects
of low phthalates in the environment, including Di(2-ethylhexyl) phthalate, there is movement to
replace them with safer alternatives in Canada, the European Union, and the United States. They
represent about 15% of the European market. High molecular weight phthalates include those
with 7-13 Carbon atoms in their chemical backbone, which gives them increased permanency
and durability. The most common types of high phthalates include di-isononyl phthalate (DINP)
and di-isodecyl phthalate (DIDP). The European market has been shifting in the last decade from
low to high phthalates, which today represent over 80% of all the phthalates currently being
produced in Europe.

Ethylene-vinyl acetate

Ethylene vinyl acetate (also known as EVA) is the copolymer of ethylene and vinyl acetate.
The weight percent vinyl acetate usually varies from 10 to 40%, with the remainder being
ethylene.
It is a polymer that approaches elastomeric materials in softness and flexibility, yet can be
processed like other thermoplastics. The material has good clarity and gloss, barrier properties,
low-temperature toughness, stress-crack resistance, hot-melt adhesive water proof properties, and

62

resistance to UV radiation. EVA has little or no odor and is competitive with rubber and vinyl
products in many electrical applications
Applications
Hot melt adhesives, hot glue sticks, top of the line soccer cleats, are usually made from EVA,
usually with additives like wax and resin. EVA is also used as a clinginess-enhancing additive in
plastic wraps.
EVA is also used in biomedical engineering applications as a drug delivery device. The polymer
is dissolved in an organic solvent (e.g., dichloromethane). Powdered drug and filler (typically an
inert sugar) are added to the liquid solution and rapidly mixed to obtain a homogeneous mixture.
The drug-filler-polymer mixture is then cast into a mold at 80 C and freeze dried until solid.
These devices are used in drug delivery research to slowly release a compound. While the
polymer is not biodegradable within the body, it is quite inert and causes little or no reaction
following implantation.
EVA is one of the materials popularly known as expanded rubber or foam rubber. EVA foam is
used as padding in equipment for various sports such as ski boots, bicycle saddles, hockey pads,
boxing and mixed martial arts gloves and helmets, wakeboard boots, waterski boots, fishing rods
and fishing reel handles. It is typically used as a shock absorber in sports shoes, for example. It is
used for the manufacture of floats for commercial fishing gear such as purse seine (seine fishing)
and gillnets. In addition, because of its buoyancy, EVA has made its way into non-traditional
products such as floating eyewear. It is also used in the photovoltaics industry as an
encapsulation material for silicon cells in the manufacture of photovoltaic modules. EVA
slippers and sandals are currently very popular because of their properties like light weight, easy
to mold, odorless, glossy finish, and cheaper compared to natural rubber. In fishing rods, it is
used to construct handles on the rod-butt end. EVA can be used as a substitute for cork in many
applications.
EVA emulsions are polyvinyl acetate (PVAc) copolymers based on vinyl acetate (VAM)
internally plastized with vinyl acetate ethylene (VAE). PVAc copolymer are adhesives used in

63

packaging, textile, bookbinding for bonding plastic films, metal surfaces, coated paper, as
redispersible powder in plasters and cement renders
Vinyl acetate ethylene copolymer(VAE), is also used in coatings formulation of good quality
interior water-borne paints at 53% Primary dispersant
Hydrolysis of EVA gives ethylene vinyl alcohol (EVOH) copolymer.
EVA is used in the manufacture of the Adidas Jabulani football. EVA is used in orthotics, fire
safe cigarettes (FSC), surfboard and skim board traction pads, and for the manufacturing of some
artificial flowers. It is used as a cold flow improver for diesel fuel and a separater in HEPA
filters. EVA can easily be cut from sheets and molded to shape. It is also used to make
thermoplastic mouth guards that soften in boiling water for a user specific fit. It is also used for
impregnation of leather. Additional uses are in the making of nicotine transdermal patches since
the copolymer binds well with other agents to form gel like substances. EVA is also sometimes
used for making body bags.

Direct Injection Process (DIP) and Pouring Method for PU Soling
onto Footwear
Selection of Polyurethane
Consider the requirements which the application will demand of the PU with respect to chemical
and physical properties.
Based upon an understanding of what controls these properties select a few PU systems.
The properties of a PU are largely controlled by the chemical nature of the system and how it is
processed so it is prudent to consult specialist suppliers and processors at this stage.

64

Direct Injection Process (DIP) PU
The PU, in liquid form is Injected into the closed mold (holding the upper) at high pressure.
Thus we get the term Direct Injection Moulding
The PU hardens and permanently fuses into one piece with the upper. There is absolutely no
chance of separation.
Direct injection moulding or Direct Moulding points to the fact, that the soles are moulded
directly onto the upper without use of adhesives or stitching.
This is possible because of the dramatic speed at which monomers polymerise to form network
polyurethane, a process that is so rapid, that articles may be fabricated by injecting the reacting
monomers directly into a mould.
High Mixing speed of over 18000 RPM resulting in better grain structure and thus better
physical properties.

PU Direct Injection Process Moulding (DIP-PU) Machine
PU Pouring Technology
As the name suggest this technology uses the method of pouring the liquid mixture into an open
mould.

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PU Pouring Head
The basic principle involved in this technology is the mixing of two liquid chemicals, Polyol and
Isocyanate, using a mixing head and pouring the liquid mixture at low pressure into an Open
Type Aluminum Mould, thereby PU remains in open condition for sometime.
With P.U. pouring technology, there are two options:
One, where the mixing head is stationary, and the mould-holders move (Conveyor Type
Fabricated Mould Holders or Rotary Machine); these machines normally have 32, 40, 60, 90 or
100 stations, as per production required, and are costly options.
In the other type, called BANANA (thanks to the shape of mould-holders), the mixer is moved
manually, while the mould-holders/ moulds remain stationary; in such a case you could have 6,
12, 18, 24 and up to 32 stations / moulds and is a more economic option.
Type of PU Pouring Machine

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DIP Vs Pouring
Pouring Method
Possibility of blending Waste to lower cost but also result in lower quality
Possibility of blending solid additives (such as PU waste, cork, barium sulfate and many others)
with Polyol and Isocyanate within the mixing chamber
Liquid Mix remains in open condition resulting in lower quality
The basic principle involved in this technology is the mixing of two liquid chemicals, Polyol and
Isocyanate, using a mixing head and pouring the liquid mixture at low pressure into an Open Type Mould,
thereby PU remains in open condition for sometime.
Possibility of blending Waste to lower cost but also result in lower quality
Possibility of blending solid additives (such as PU waste, cork, barium sulfate and many others) with
Polyol and Isocyanate within the mixing chamber

67

LowPressureMixing
Mixing and Pouring is done at low pressure that result in poor results as compared to Direct Injection
Process, in particular bond strength is badly effected.
PU remains in open condition for sometime.

Use of Pouring Method in making parts
Pouring technology is suitable for making small PU Parts and is not recommended as a soling method for
footwear. This technology is generally used to manufacture soles to be used in footwear with stuck on
method.
Direct Injection Process (DIP-PU)

Sole Become integral Part of Upper
In case of Direct Injection Process, Sole becomes integral part of the upper, resulting in better bond
strength as compared to other soling methods like Pouring, Stuck On etc.

Better Grain Structure of PU
Due to higher mixing speed of over 18000 rpm as compared to pouring method, better grain structure is
obtained resulting into better physical and chemical properties.

Consistent Quality
Injection at high pressure into the close mould results in better flow of liquid into the mould that gives
better results due to least atmospheric contact and self curing of mixed liquid.
Injection moulding machines used into the production of shoes are highly controlled machines in respect
of temperature control, mixing pressure, mixing ratios etc. therefore better and consistent results are
obtained.

68

Others
In case of pouring method mould temperature can not be controlled due to its open condition and
result may vary from time to time.
In case of pouring method, upper is clamped down on mould after mould is filled with liquid is
already processing. Clamping down the upper on open mould containing liquid for soling is not
automatic and delay of few seconds would lead to variation in results.
In case of DIP, mould is closed with upper already clamped on mould and liquid is injected directly
onto the upper, the curing is its formation of PU is done in closed mould with upper. This gives better
consistency in results.
In case of pouring method, since moulds are in open condition, there are possibilities of foreign
particles like dust, etc. entering from the atmosphere into the sole liquid resulting in poor quality sole.
In view of the merits of DIP, FDDI has recommended this technology as
1. A proven and reliable technology for making shoes with PU sole.
2. Better technology for use in manufacturing shoes with PU Sole to be used by Police Personnel.
3. Based on merits of DIP, BPR&D has approved this technology and have recommended Various
Departments to purchase shoes made out of DIP-PU Sole
Comparison between Direct Injection PU and PU Pouring
Specification
PU direct soling
Direct Injection Process
PU pouring
Ejective power
The material pump and the
centrifugal force while the
SCREW is operating in
high-speed.
Weight (Gravity)

69

SCREW
R.P.M.
More than 18000r.p.m.
/minutes
5000~6000r.p.m.minutes normally
Material
Pressure
4-5kg /c 0 (Gravity)
Mold internal
With hermetical space, so
the material has pressure
itself.(The sole plate has
pressure)
With opening space (because the
mould is open), so the material only
has expansion pressure.
Position of the
injection
nozzle
In the side of the mold On the upper opening of the mold
Molecular
structure
Blending at high speed, so
the structure is denser.
Blending badly, so the structure is
loose.
Combination
The structure of the
molecular is very close, so
the infiltration is good; the
combination with other
components (upper
material) is good.
The structure of the molecular is
loose, so the infiltration is bad; the
combination with other components
is not good.

70

CHAPTER-VI
1. Experience gained & problem faced
2. What did you learn
3. Research Methodology
4. Data Analysis
5. Questionnaire

71

EXPERIENCES GAINED & PROBLEM FACED

1. what did you learn:- I have learnt various skills for Marketing. The supervisor tells us
various experience making fundamental thoughts.
Our team has successfully achieved the Marketing strategy and we done our job in a better way
with the skills and efforts made by us.
2.Universe:- We have select for sample in liberty . This organization is our universe and we
select sample on the base of our study.
3.Survey Population:-We select sample from main the liberty on 100 Customers

72

RESEARCH METHODOLOGY

The success of any study calls for the development of most efficient plan for gathering the
desired information. Therefore a properly defined research methodology is a prerequisite for
carrying out the successful research which in turn demands clear objectives.
Research is a Process of Systematic Study or Search for any particular topic, subject or area of
investigation, backed by the collection, compilation and presentation of relevant details or data.
It is careful search or inquiry into any subject which is an endeavor to discover or find out valuable facts
which would be useful for the further application or utilization.

Meaning of Research
The term research is composed of two wordsre and search which means to search again. Research is
conducted to search for new facts or to modify the existing facts. The obvious function of research is to
add new knowledge to the existing store as well as to remove the misconceptions and ignorance of
mankind. Thus, research is a process and means to acquire knowledge about any natural or human
phenomena. It is the pursuit of the truth with the help of study, observation, comparison and experiment.
Definition of Research
Research is the process of systematically obtaining accurate answers to significant and pertinent
questions by the use of the scientific method of gathering and implementing information.
By

73

Cloveran Balsely
Research is a method of studying, analyzing and conceptualizing social life in order to extend, modify,
correct and verify knowledge whether that knowledge aids in construction of theory or in practice of an
art
By P.V.Young
Type of Research
There are three type of research on the basis of purpose:-
1) Descriptive Research.
2) Exploratory Research.
3) Explanatory Research.

1. Descriptive Research:-This kind of research merely describes and depicts the current state of
affairs of different variables. The researcher has no control over these variables. He only reports what has
happened and what is happening. E.g.:-Census in India

2. Exploratory Research: - This research attempts to gain better understanding of different
dimensions of the problem. It studies the subject about which either no information or a little information
is available. In this kind of research the assumption is that the researcher has little or no knowledge about
the problem or situation under the study. Exploratory studies are appropriate for some persistent

74

phenomena like sickness of an industry, deficiencies in education system, corruption prevailing in
government departments, rural poverty and so on.
3. Explanatory Research: - This kind of research explains the causes of social and economic
phenomena. Describing or exploring the nature of phenomena is one thing but explaining the cause for
the same is its explanatory aspect.
E.g.:- what is the cause for decline in productivity and profitability of a business, why and what are the

METHODS OF DATA COLLECTION
There are several ways of collecting the appropriate data, which differ considerably in context of
money, cost, time and other resources. They can be broadly divided in to two categories.
PRIMARY DATA:- It refers to information obtained firsthand by the researcher on the
variables of interest for the specific purpose of the study. This includes individuals, focus groups,
interviews, and observations, Panels etc.
SECONDARY DATA:- It refers to information gathered from sources already existing.
This includes Company records, web sites, Internet, various Publications etc.
During my study I used both the sources of data collection i.e. Primary & Secondary source of data. As
far as secondary data is concerned, it included company profile, company records, brochures, and various
publications, Internet etc.
Besides secondary data collections, primary sources like Interview and observations are used for
undertakings the study.

75

Data Interpretation
Brand availability

Action Liberty Bata Ralaxo Lakhani Others
45% 22% 13% 56% 55% 10%

BRAND AVAILABILITY
45%
22%
13%
56%
55%
10%
0%
10%
20%
30%
40%
50%
60%
A
c
t
i
o
n

L
i
b
e
r
t
y

B
a
t
a
R
e
l
a
x
o
L
a
k
h
a
n
i
O
t
h
e
r
s
BRANDS

76

Customer attended by shopkeeper

0-20 20-40 40-60 60-100 More than
2% 31% 30% 17% 20%

Customer attended by shopkeeper
2%
31%
30%
17%
20%
0%
5%
10%
15%
20%
25%
30%
35%
0-20 20-40 40-60 60-100 More
than Customer
Series1

77

Profitable brands

25% 15% 3% 21% 19% 20%

Profitable brands
25%
15%
3%
21%
19%
20%
0%
5%
10%
15%
20%
25%
30%
A
c
t
i
o
n

L
i
b
e
r
t
y

B
a
t
a

R
a
l
a
x
o

L
a
k
h
a
n
i

O
t
h
e
r
s

Brands

78

Complaints in brands

15% 7% 1% 6% 13% 58%

Complaints in brands
15%
7%
1%
6%
13%
58%
0%
20%
40%
60%
80%
A
c
t
i
o
n

L
i
b
e
r
t
y

B
a
t
a

R
a
l
a
x
o

L
a
k
h
a
n
i

O
t
h
e
r
s

Brands

79

Demand of customer for liberty

Shopkeeper % 10% 20% 30% 40% 50% No demand
Demand % 35% 28% 19% 5% 3% 10%

Demand of customer for liberty
10%
20%
30%
40%
50%
No demand
0%
5%
10%
15%
20%
25%
30%
35%
40%
1
0
%
2
0
%
3
0
%
4
0
%
5
0
%
N
o

d
e
m
a
n
d
Shopkeeper %
D
e
m
a
n
d

%

80

Customer brand loyalty

Shopkeeper% 10% 20% 30% 40% 50% No demand
loyalty % 55% 19% 7% 10% 3% 10%

Customer brand loyalty
10%
20%
30%
40%
50%
No demand
0%
10%
20%
30%
40%
50%
60%
1
0
%
2
0
%
3
0
%
4
0
%
5
0
%
N
o

d
e
m
a
n
d
Shopkeeper%
l
o
y
a
l
t
y

%

81

Availability of liberty product

Easiest Easy Neutral Difficult No availability
8% 12% 25% 15% 40%

Availability of liberty product
Easiest
Easy
Neutral
Difficult
No
availability
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
E
a
s
i
e
s
t

E
a
s
y
N
e
u
t
r
a
l
D
i
f
f
i
c
u
l
t

N
o

a
v
a
i
l
a
b
i
l
i
t
y

82

CHAPTER-VII

1. Conclusion
2. Summary
3. Finding
4. Recommendations

83

FINDINGS
Some of the majors findings of this project were as follows:

As you know in this competitive world we face more competition, so company should provide
reasonable and reliable product.
For beating the competitor company should provide more range and fashionable product.

1. MRP of all items that a company wanted to know were almost common at every retail outlets.
This information would really help the company in order to determine the Price of its commodity.

2. With the help of this project, Company found the strength of each showroom. Without knowing
the strength of each showroom in Chandigarh, Kurukshetra, Karnal, Panipat this project could
not be applied.

3. Last but not least, this project gave the very accurate information about the
Increase of the sale of EVA product.

84

CONCLUSION

From this analysis it is seen that the satisfaction level about the over-all service does not
depend on response time or price but depends on the level of satisfaction with quality. It is
therefore clear that the customers perception about service level depends on their perception
about quality.

It is also seen that satisfaction level with quality depends on the rejection rates
experienced by the customers. Therefore the company should make efforts to ensure that the
rejection level at the customer end is minimized. This will improve the customers perception
about quality as well as service level.

Since the period of response and price levels do not influence perception about service
level, it is adequate if the company maintains the present level but concentrate its effort in
reducing rejections experienced by the customer.

85

Summary

The objective of the project was to do Market Research and customer Satisfaction for LIBERTY
SHOE LTD Hard material for that we have to understand the customer needs, constraints,
response and emotions so that they can contribute their time for becoming Life advisors for the
company. The objective of this study was to analyze consumer satisfaction of hard material
splicing of LIBERTY Company with respect to the performance, sales effort and sales service.

As the company was old and it was yet to be marketed to a large number of customers, it was
essential to know the feedback of customers in order to formulate effective marketing and sales
strategies in future and improve the quality of service to achieve better consumer satisfaction.

The site visits and comparing made us possible to measure the satisfaction of consumer by
identifying the attributes, which gave consumer-varying degrees of satisfaction.

Questionnaire based on company format some attributes like requirement of customer and sales
services offered by company were identified as critical (motivational) factors for providing
satisfaction to consumers, while other factors like excisable deposit center, delivery was time to
time and also intimation regaining before the delivery of product. But absence of such hygienic
factors definitely results in a dissatisfied consumer. These hygienic factors could result in selling
but their absence can certainly unseal the product offering.

For this a questionnaire was prepared which gave a vague idea about the Dealer who were really
interested and wanted to know about various new opportunities in the industry sector. Go
through questionnaire in different area and customer of LIBERTY. The study was undertaken for
Kolkata region during two months. The researchers were given first 15 days for collection of
data and scanning the data.
The questionnaire contains various aspects like there. Address, to know the product quality of
LIBERTY, delivery on time, technical fault and better relationship with LIBERTY in future.

86

The second part of the study that consists of 40 days contains scanning the questionnaire and
taking appointments. After that usually meeting the persons and tell them about the company.
Most important part is analyzing the information

87

Annexure
QUESTIONAIRE FOR SHOPKEEPERS

1. What is the name of shop keeper?

2. What is the address of the shop keeper?

3. How many brand available in your shop?


4. How many Customer attended by you in a day?

0-20 20-40 40-60 60-100 More than

5. In which brands you get more margin?


6. In which brand have more Complaints?


7. How many customer demand for liberty product?

88

Shopkeeper % 10% 20% 30% 40% 50% No demand

8. How many Customer are brand loyal ?

10% 20% 30% 40% 50% No demand

9. Availability of liberty product

Easiest Easy Neutral Difficult No availability

10. Starting price of branded product?
50-100 100-150 150-200 200-250 250-300 More than

11. Any suggestion to increase the sale of liberty product (if any)
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

89

BI BLI OGRAPHY
REFERENCES

WEB
LIBERTY SHOES.COM
GOOGLE.COM
OTHER
MARKERTING MANAGEMENT BY- PHILIP KOTLER
PRINCIPAL OF MANAGEMENT BY-ASHOK JAIN

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