A Case Study of Ehsan Chappal Store (ECS)

Course: Marketing Management (Assignment).

Course Instructor: Dr. Adnan Pitafi.
Student: Hasan Shoukat.

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 Summary

Ehsan Chappal Store (Pvt) Limited, a prominent Retailer known as ECS, started its
operations way back in 1954, from the famous Anarkali Bazar of Lahore. With the
launch of one single store, the product soon became the talk of the town for its
comfortable, durable and stylish Chappals. It was started with foot wear by Ehsan
Rab siddiqui. Now, Ehsan Chappal Store (Pvt) ltd. Owns multiplw brands of ladies
and girl’s footwear, bags and accessories. Now, it is transformed to ECS. All these
brands are available at ECS stores located at most convenient locations in most
major cities of Pakistan. ECS stores display largest variety of ladies footwear and
accessories available at any single outlet.

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Table of Contents
Introduction .................................................................................................................................................. 5
History ....................................................................................................................................................... 5
Start-Up ..................................................................................................................................................... 6
Financing ................................................................................................................................................... 6
Vision......................................................................................................................................................... 6
Mission ...................................................................................................................................................... 6
Product Line .................................................................................................................................................. 8
Hierarchy ....................................................................................................................................................... 9
Current Brach locations ................................................................................................................................ 9
Marketing Analysis ...................................................................................................................................... 11
Customers (Target Market/Segmentation) ............................................................................................ 11
Competitors ............................................................................................................................................ 11
Marketing Mix : ........................................................................................................................................... 11
Products .................................................................................................................................................. 11
USP .......................................................................................................................................................... 11
Place Distribution Channels .................................................................................................................... 11
Pricing...................................................................................................................................................... 12
Promotion ............................................................................................................................................... 12
SWOT Analysis............................................................................................................................................. 13
Strength .................................................................................................................................................. 13
Weaknesses ............................................................................................................................................ 13
Opportunities .......................................................................................................................................... 13
Threats .................................................................................................................................................... 14
PEST Analysis ............................................................................................................................................... 14
Political Factors ....................................................................................................................................... 14
Economic Environment ........................................................................................................................... 15
Social Environment ................................................................................................................................ 15
Technological Environments ................................................................................................................... 16
Human Resource Management Policies for ECS ......................................................................................... 16
Functions of HR department:.................................................................................................................. 16
Recruitment ............................................................................................................................................ 17
Selection.................................................................................................................................................. 17

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 Retention ................................................................................................................................................ 17
Retrenchment (Firing) ............................................................................................................................. 17
Problems and Possible Solutions ................................................................................................................ 19
Problems ................................................................................................................................................. 19
Possible Solutions ................................................................................................................................... 19
Bibliography ................................................................................................................................................ 21

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Introduction
History
Ehsan Chappal Store (Pvt) Limited, a prominent Retailer known as ECS, started its
operations way back in 1954, from the famous Anarkali Bazar of Lahore. With the
launch of one single store, the product soon became the talk of the town for its
comfortable, durable and stylish Chappals.
The journey did not stop there. It seemed that Ehsan Chappal Store was made for
bigger things, even if that meant starting small. The business progressed well with
a considerable increase in the market demand. Low cost product with good quality
has always been a basic need for masses, therefore, working hand in hand with this
ideology pushed Ehsan chappal Store way beyond the borders of a Bazar. And
then, there was no looking back.
It was only one shop first and soon became a raging success for its excellent
quality and designing. Since then we have been expanding operations in the fields
of manufacturing.
With an exceptional footprint in KPK, North-Central- South Punjab and Urban
Sindh, ECS today, remains true to its core by providing extra value for money to
the fourth generation of its valued customers.
Today, we take pride in being one of the oldest footwear retailers having achieved
remarkable growth over the last six decades and contributing significantly to retail
industry. We have a long tradition of serving our valued customers to their
complete satisfaction through efficient management and excellent workmanship,
which we continue to maintain with our untiring efforts.
In an era of advanced technologies and new techniques, we continuously strive for
innovation and enhanced efficiency. As we look to the years ahead, we renew our
pledge to remain committed to excellence, keep abreast of changes and
innovations, adopt better management and techniques and successfully overcome
all challenges before us.

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Start-Up
It was started with foot wear by Ehsan Rab siddiqui. Now, Ehsan Chappal Store
(Pvt) ltd. Owns multiplw brands of ladies and girl’s footwear, bags and
accessories. Now, it is transformed to ECS. All these brands are available at ECS
stores located at most convenient locations in most major cities of Pakistan. ECS
stores display largest variety of ladies footwear and accessories available at any
single outlet.
A large family-owned chain of ladies footwear and accessories retail outlets. “For
latest in ladies footwear” is their slogan The Company is involved in imports of
raw materials, shoes and bags, manufacturing retailing, wholesale and exports.
Now, management is looking forward to improve import and export. For this, new
contacts are being made and visits to potential buyers and suppliers are being
undertaken systematically. All the products are sold under the brand name of ECS.
This brand, its logo, and the name Ehsan Chappal Store are the property of Ehsan
Chappal Store (Pvt) ltd.

Financing
Since ECS started long time ago in Antalkali Bazar Lahore as the single store for
shoes, at that time the capital that was required was not huge and that capital was
arranged by owner by Ehsan Rab Siddiqui its own but as the setup was increasing
from day it all began then certainly there was need for finance for further
production. ECS made all financing from its reytained earnings and then it went
for all other branches to setup. So Capital at beginning that was belonged to
owners.

Vision
To be a top class national retail company, owning and managing lifestyle brands
that are most preferred in their categories, having international presence.

Mission

 To commit ourselves to honoring the trust of all stakeholders. To pride

ourselves in showing respect and care for all.

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

 To consistently delight our customers with innovative designs, premium

product quality and a gratifying shopping experience every time.


 To diversify our brand and product portfolios catering to the changing

lifestyles.


 To foresee and adapt to technological advances, market dynamics and

customers’ needs.


 To expand our market share by increasing customer reach optimizing all

available channels and cultivating new markets.

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Product Line

Product line

Party

Bridal
shoes

Autumn/w
inter shoes

Casual
Shoes

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Hierarchy
 Mr. Ehsan Rab Siddiqui (Chairman)

 Mr. Imran Siddiqui (Director)

 Mr. Salman Siddiqui (Director)

 Mr. Usman Siddiqui (Director)

Current Brach locations

Branches of ECS are as follows:
Anarkali, Lahore
27 Bano Bazar, Anarkali, Lahore
Ph.042 37314 357-58

Liberty Market, Lahore

23 Commercial Zone, liberty Market,
Gulberg, Lahore
Ph. 042 35756723-24

Defence Lahore
177 Y Block, DHA Lahore
Ph. 042 35897267-68

Township, Lahore
53 B Peco Road, township, Lahore
Ph. 042 35125621-22

Saddar, Rawalpindi
26 Zarkon plaza, Murree Road, Saddar, Rawalpindi
Ph. 051 5111880-81
F 10 Markaz,Islamabad
Pak plaza, double road, near umer farooq masjid, Islamabad
Ph. 051 2215827-28

F7 Markaz, Islamabad

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AnB centre, 13-v behind PSO pump,
Jinnah super market, F7 Markaz Islamabad.
Ph. 051-2651882-83

Peoples Colony, Faisalabad

336 B, Peoples Colony I,Satyana Road,
Ph. 041 8716038-39

Sussan Road, Faisalabad

s-9(Adj. bank islami) block no. 1,
Madina Town, sussan Road Faisalabad
Ph. 041-8716058-59

Satellite Town, Gujranwala

755B, Rex Cinema road, Satellite Town Market,
Gujranwala
Ph. 055 3730721

A-486 Allama Shabbir Ahmed Usmani Rd, Karachi

Block 3 Gulshan-e-Iqbal, Karachi, Karachi City, Sindh
Ph: (021) 34173751

Auto Bhan Rd, Hyderabad

Latifabad No 3 Hyderabad, Sindh
Ph : (042) 35751990

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Marketing Analysis
Customers (Target Market/Segmentation)
Through surveys, as a mode of primary research, we found that almost 99% of
ECS customers are female. An ECS manger told that they segment their customer
on the income basis; they choose to open outlets in those areas of any city where
they hope to encounter maximum customers from only upper-middle class and
upper class females. And most of them belong to the upper-middle and upper class
families of the city. And due to ECS’s trendy and fashionable products, customers
are usually of age between 16 to 40 years.
Competitors
As such the only competitor against ECS in the market right now is Stylo. Stylo
started its operations later than ECS but got immense success in a shorter period of
time. It has more outlet branches in the country than ECS. Other competitors are
BATA, Servis, Borjan etc.

Marketing Mix :
Products
ECS products include all sort of ladies footwear. Sandals, Slippers, heels, thongs,
flip-flops, moccasins, dress shoes, bridal and now also kid’s shoes and ladies
purses. Most of the shoes are made in their local factory by their own skilled
craftsmen. The rest are either sourced from Karachi or imported from Thailand. In
addition to shoes now proudly display an extensive range of ladies handbags and
shoulder bags. They sell exclusive designers footwear under the following
 ECS element children shoes brands
 e-cirlces, Ladies handbags under the brand
 ECS effects
USP
Unique selling preposition of ECS is still ladies footwear. Although, they have
increased their product line. But, their first priority is ladies footwear like, sandals,
heels, shoes etc. Because they started their business from selling ladies shoes and
also become famous for that.
Place Distribution Channels
The first outlet was opened in the then newly-constructed BanoBazar in Lahore’s
famous market Anarkali in 1953. The idea was to give the customers good value
for money. Soon it became famous for its wide range of comfortable and durable
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ladies chappals (sandals and slippers). The success followed slowly but surely. In a
few years, the name Ehsan Chappal Store (ECS) became a synonym for fairly-
priced comfortable and durable ladies sandals. Not only chappals but every kind of
ladies footwear is on its display. For over five decades, it has been a bustling place
ever-crowded with ladies of Lahore trying to find the best match for their feet from
a wide range of designs. In 1997 a new branch was opened in Liberty Market, most
posh market in the city of Lahore. Liberty Market in now the largest and most posh
market in the city and Ehsan chappal Store was an instant success there.
Afterwards, ECS entered to different markets in different cities of Punjab. And
then moved forward to the all major cities of Pakistan. They targeted posh areas
where upper-middle class and upper class females were cusrtomers.
Pricing
ECS concerned person told that ECS being confident of it strategies and its product
do not fall into competitive pricing. No doubt ECS keep on announcing different
discount and cuts in prices to attract more customers. But it sets price level using
cost as bases. Price = cost + margin. Different types of price cuts that are offered to
members of ECS are discussed in promotion activities.

Promotion
ECS has always spent vigorously in such campaigns. They have designed their
own transport trucks with very attractive banners of their brand to serve as an
advertising agent. In girl’s college, they advertise a lot by pasting permanent
stickers of their logos and colors on the benches and rood. Furthermore, they also
hold stalls in girl’s college of their latest shoes variety to promote their products
into population
They also promotes ECS through different activities in Kinnaird College and
Home Economics College. They advertise in fashion magazines as well, like FAQ,
etc. They get a good response from many fashion institutes who see this brand in
fashion magazines. Over the period of time, they have changed their logo so many
times. Just like Pepsi Co, were willing to spent that huge sum just to ensure that
their customer was not swept away by the Coca-Cola, where the later was hosting
the Olympics Games at the home-town, Atlanta, Georgia. USA. However, now
ECS thinks that they have come-up with stable brand logo this time. At the time of

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new outlets, special invitation cards, flyers and offers are sent to thousands of
existing customers.

SWOT Analysis
Strength
 ECS Brand-Image in the eyes of customers, it is top of all brands present in
the market. When questioned that what brand comes to your mind when it
comes to buy shoes; majority of them replied, ECS.
 Excellent Range in Product Lines- a well-structured product line and range.
 Quality
 Promotional Offers- XS ECS- this is playing a vital role in their business
these days. As there is no membership fee and everyone is invited to join
this circle, more and more members are joining this, affecting sales of the
company in quite a positive manner.
 Large number of collaborators- there is a considerable big number of
collaborators who are motivating the sales of ECS by one way or another.
 Effective advertising Campaigns – campaigns in girl’s colleges have always
brought fruitful results for the company.
 Competitive Pricing
 Motivated Workforce, staff is highly motivated. They are regularly
appraised and are rewarded often on their performance. They work on
commission base system.
Weaknesses
 No clearly defined marketing strategy – though they are working
successfully in the market but still there is any clearly defined or
preplanned marketing strategy for ECS.
 Lesser number of Outlet – as compared to its competitors.
 Lack of managerial staff.
Opportunities
 New developing Local societies and cities.
 Internationally-held Fashion Shows – ECS as participated in few
internationally held fashion shows and have gained honor in them. The
company got many orders from these shows.

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  Launch of the Chronicles, this show-catalog would be a totally different idea
in the company’s market in this business. Therefore after thoughtful
planning, launch of it could bring fruits for the company.
 Economic Environment – steady encouraging rate of inflation in the country,
population growth trend in urban areas and increase in per capita income;
brings more and more customers in the ECS’s segment, this of course is
good for the company.
Threats
 Emergence of cheap China products, this could be a threat to ECS, since
China is well known for its similar but low priced products worldwide.
Therefore if it enters the market customers of ECS could switch towards
it.
 Stylo’s innovative marketing and promotional activities.

PEST Analysis

Political Factors
The political arena affects the industries of any country. If the political
environment is stable then it is beneficial for any industry. Unfortunately in
Pakistan, political environment was not sustainable which causes a bad effect on
almost all the industries. ECS has established a reputable image in the eyes of the
country and government, co they do not face any special political pressures.
Government of Pakistan exempted special taxes of 10% - 15% on leather shoes
imported that was a promoting action for shoes industry in preceding years. Raw
materials used in ECS shoes are mostly leather, artificial leather, synthetic and

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textile canvas, PVC. The import duty on all these raw materials is 15%. There are
some environmental issues regarding shoes industry that is ban on import of raw
material toluene, The chemical toluene is addictive. Due to this reason, the sticking
chemicals like Lee-tax, Diamond and MEK are mostly being imported and if it is
manufactured in Pakistan, then toluene is smuggled.
Economic Environment
Most considerable point for any industry is the economic condition of the country.
If a country is economically strong then there are chances of growth in each sector.
Pakistan is a developing country and progressing continuously. The economic
condition is much better now as compare to the past years. In the past foreign
companies were afraid to invest in Pakistan but now situation is totally change
.Economic environment tend to change according to government policies and
regulation. There is no such strong effect of economic environment on ECS
considering the fact that government is incapable to impose stabilization in
Pakistan.

Social Environment
Social trends and the demographics are the key elements that are in consideration
to do business in any country. Each country has different culture and trend basing
on their norms and values. In fashion shoes industry trends are changing day by
day rapidly and if you don’t keep up your pace with this rapid transition you will
lack behind. Now a day’s people are becoming more stylish, fashion oriented and
status conscious so they prefer and demand for shoes which fulfill their personality
needs. People today want good quality products in return of the money that they
spend. People like to socialize. As imported and internationally renowned brands
are assumed to be prestige to use, people are more likely to go for some best
known products. in their outfits. Some years back, very neutral colors like black,
brown, white and fawn were used for ladies shoes and were considered as a match
for outfits of all colors. But this trend is by gone now and ladies are more prone to
buy matching shoes. Because of this demand from the ladies, almost all firms are
manufacturing shoes of all variety of colors. Now, shoes are being manufactured in
various shades of blue, green, pink and other colors are easily found. Another
increased trend is of providing shoes according to various occasions like
valentines, basant; weddings etc, for example on valentines, shoes in various
shades of red are provided and displayed. In the same way, in wedding season
golden, copper, silver and reds are provided because of their huge demand. As

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weather in months, so in such weather you need more stylish chappals. Strong
media support towards brands is influencing people decisions shoes.
Technological Environments

Technology is the best weapon to win the war of competition in these days. Those
who have outdated technology are out of the competition. In shoes industry majority
of companies are manufacturing handmade shoes for competitive edge. In Pakistani
shoes industry usage of technology is very low because people prefer to buy
handmade shoes. The budget allocation for research and development in shoe
industry of Pakistan is maximum 5%. Due to low usage of technology in this industry
technological change rate is 0%. A big reason for not involving technology is that in
ladies fashion shoes industry, the designs change rapidly and with this fast pace,
machines cannot be changed. But technology plays a great role in sole cutting and
pressing. ECS has already these types of machines for processing. Machines are used
in Pakistan as well as abroad for sole cutting and pressing. Earlier sole cutting and
pressing was manually done but now machines are available on which mass sole
cutting and pressing is done. As far as the uppers of shoes are concerned, they are
embellished and sequenced by labor. ECS also focus on technological aspect to
make its production fast and accurate.

Human Resource Management Policies for ECS

Since ECS is not a large organization like corporate company but it still keeps in
view the importance of HR. ECS manages the human resource of the organization
that is responsible to systematically reviewing human resource requirements to
ensure that required number of employees, with the required skills is available when
needed. They prefer the internal employees for the recruitment over the external
recruitment and a forecast for the supply of HR within the organization
They use skills inventory for middle management and they use replacement charts
for operational level employees
Functions of HR department:
- Recruitment
- Selection

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 - Retention
- Firing

Recruitment
ECS is a traditional organization and it has got very inflexible culture and it does not
believe in outsourcing its recruitment process. Moreover it does not use either the
electronic media or the print media advertise its vacancies. However exceptions and
they sometimes recruit peoples from educational institutions and other experienced
places.
And exceptionally they use university recruiting as for their external recruitment.
They are following the internal recruitment method and for this purpose they do job
posting
Selection
They select people on the basis of their qualification and skills in order to meet the
outcome of goals. They also strictly follow the EEO.
Steps involved in selection process are:
- Receiving the CVs

They only accept in person CVs, they do not entertain e-mails or via post
CVs.
- Background investigations

Like every other organization ECS also wishes to ensure that it hires
respectable and reputable employees for this reason it investigates the past
record of each and every employee before the final selection.

Retention
For retaining the employees they have introduced certain bonuses and incentives.
Such that they have provided some employee cards and their issues are resolved as
soon they incurred.
Retrenchment (Firing)
As we know that ECS is an emerging firm around us and they hire the person who
have the skills and ability to do work for a long time .They mainly fire people on the
serious reach of agreement, misconduct, punctuality and upon not achieving their

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given targets and once the management has decided to fire a person they give one
month prior notice to the respective employee and once the employee is fired can
never be hired again.

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Problems and Possible Solutions
Problems
 Lack of efficient staff.
 No participative management.
 Lack of co-ordination between departments
 Employees are not satisfied with salary package.
 International pressure groups.
 No proper planning for advertisement
 No marketing intelligence scheme
 No monitoring of sales representatives
 No plans to promote company.

 National pressure groups

And there are also some other political and legal problems which the
company is facing. The company is facing the above mentioned problems
but company is trying its best to overcome these problems by adopting
different strategies and making plans.

Possible Solutions
 The company is facing some problems. There are some suggestions to solve
these problems. By following these suggestions and recommendations
company can overcome these problems, can be strong, can expand its
business and can earn more profits.
 These are some suggestions :
 The organization is short term oriented and therefore, long term strategies
should be adopted.
 Promotional strategies should be made aggressive.

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 The organization can build its morale by selecting the educated employees.
Because it is the smart management that makes the difference in severe
competitive environment.
 They should cooperate with researcher especially students.
 Must select the young, energetic and qualified employees for management.
 Salaries package should be made attractive as it is the ultimate motivational
force.
 They can have an easy access to their agents as well as the customer.
 They should hire skilled people or workers by offering them promotional
facilities, different incentives and should provide the proper office where they
can work comfortably.
 They should cooperate with researcher especially students.
 Must select the young, energetic and qualified employees for management.
 Salaries package should be made attractive as it is the ultimate motivational
force.
 For the elimination of the distribution problem they should have the proper
transportation system and should build some distribution channel so that they
can have an easy access to their agents as well as the customer.
 They should hire the skilled software experts so that they can manage the
proper information system.
 Shift helps create value for the product.
 Emphasizing on the benefit that the product can provide through regular
usage.
 Greater perceived customer value, the greater the price a customer is willing
to pay.
 They should the sustainable in the long run.

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  They should maintain label and theme colors of the product.
 Product and product lines do not need to be changed.
 They should follow the Fashion Industry and design their product.
 They should biodegradable to further enforce its natural image.

Bibliography

http://www.ecsehsan.com/
http://she9.blogspot.com/2014/05/top-10-pakistani-shoes-brands-top-ten.html
http://www.web.pk/2013/top-girls-shoes-brands-in-pakistan/
http://stylehitz.com/ehsan-chappal-house-ecs-designs/
https://www.scribd.com/doc/78729511/ecs-shoes
https://www.scribd.com/doc/40307223/Pakistan-Shoe-Industry

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