SummerI

nter
nshi
pRepor
t
On
“
CUSTOMERRELATI
ONSHI
PMANAGEMENTBYREDCHI
EF”

SUBMI
TTEDTO:
STEP-HBTIKanpur
Fort
hepar
ti
alf
ulf
il
lmentoft
herequi
rementof

Mast
eri
nBusi
nessAdmi
nist
rat
ion
(
MBA:
-2017-
2019)

UNDERTHESUPERVI
SIONOF:
Ms.SMITADRON
(
STEP-HBTI
,Kanpur
)

SUBMI
TTEDBY:
EKTASACHAN
(
MBASECONDYEAR)
Rol
lNo:1718170016

SCI
ENCEANDTECHNOLOGYENTREPRENEURS’
PARK
HARCOURTBUTLERTECHNOLOGI
CALI
NSTI
TUTE,
NAWABGANJ
Kanpur
-208002
 ACKNOWLEDGEMENT

Fi
rstofal
l
,It
hank"
Almi
ght
yGod"f
orgi
vi
ngmest
rengt
handabi
l
ityt
ocompl
etet
he

st
udysuccessf
ull
yandmaket
hisr
epor
tont
ime.

Iam especi
all
ygr
atef
ult
oMr
s.SMI
TADRONf
orherv
aluabl
egui
dancegi
vent
hroughout

t
hispr
oject

Iwoul
dli
ket
oexpr
essmyspeci
alt
hankst
omypar
ent
s,f
ri
endsandal
lot
herwel
l
-

wi
sher
swhohav
ehel
pedmeal
oti
nthepr
epar
ati
onoft
hisr
epor
t

THANKI
NGYOU
Ekt
aSachan
ekt
asachan1998@gmai
l
.com
 Decl
arat
ionCer
ti
fi
cat
ebySt
udent

I
,her
ebydecl
aret
hatt
hesummeri
nter
nshi
ppr
ojectwor
kti
tl
ed“
Cust
omerRel
ati
onshi
p
management”
,isor
igi
nalt
othebestofmyknowl
edgeandhasnotbeenpubl
i
shed
el
sewher
e.Thi
sisf
ort
hepur
poseofpar
ti
alf
ulf
il
lmentofHBTIr
equi
rement
sfort
he
awar
doft
het
it
leofMASTEROFBUSI
NESSADMI
NISTRATI
ON,
onl
y.

PLACE:
-KanpurNagar
Dat
e:-_
___
___
___
___
___
___ Si
gnat
ureoft
hest
udent
:-_
___
___
___
___
___
___
 PREFACE

Apr
ofessi
onalcour
sei
n(Mast
erofBusi
nessAdmi
nist
rat
ion)i
sincompl
eteunl
esst
he
t
heor
eti
calknowl
edgeacqui
redi
nthecl
assr
oom i
sbackedupbypr
act
icalexposur
e,as
t
heor
iesal
onedonotgi
vet
heper
fect
iont
oanydi
sci
pli
ne.Thegapbet
weent
heor
y&
pr
act
icedbr
idgedbyt
her
esear
chr
epor
t,whi
chhasbeenani
ntegr
alpar
toft
hesy
ll
abus.

Iwasassi
gnedapr
oject“
Cust
omerRel
ati
onshi
pManagement
”thi
srepor
tist
her
esul
t
oft
hewor
kdonedur
ingt
het
rai
ningper
iod.

Ihav
etr
iedmyl
evelbestt
obeasasy
stemat
icaspossi
bleandt
oav
oidanysor
tof
bi
ases.
 CONTENTS

Chapt
erNo. Par
ti
cul
ars

1. I
NTRODUCTI
ON

Companypr
ofi
le
I
ndust
rypr
ofi
le
2. OBJECTI
VES,
SCOPEANDLI
MITATI
ONSOFTHESTUDY

Object
iveoft
hestudy
Scopeofthestudy
Li
mi t
ati
onofthestudy

3.
MANUFACTURI
NGPROCESS

ShoesandShoemaki ng
ShoeMaki ngProcess
Cli
ckingorCutti
ngDepar
tment
Closi
ngorMachi ni
ngDepar
tment
RawMat erial
s
Design
Qualit
ycontrol

4. CONSUMERBEHAVI
OUR

ConsumerDecisi
onSty
les
Customerl
oyal
ty
Customerci
ti
zenshi
pbehavi
or
5. RESEARCHMETHODOLOGY

Resear
chDesign
Datacol
lect
ion
Sampli
ngdesign
 Sampl
esi
ze
Sampl
ear
ea
6. DATAANALYSI
SANDI
NTERPRETATI
ON

Anal
ysi
soft
hedat
a

7. RESULTSANDDI
SCUSSI
ONS

FI
NDINGS
SUGGESTI
ONS
CONCLUSI
ON

8. ANNEXURE
9.
BI
BLI
OGRAPHY
 I
NTRODUCTI
ONOFREDCHI
EFSHOES

Red 
Chi
ef 
i
sthebr
andofGhar
iIndust
ri
esPv
t.Lt
d.(
Foot
wear&Leat
herdi
vi
sion)-oneof
t
he l
eadi
ng manuf
act
urer
soff
oot
weari
nIndi
a.The Companyi
sa par
tofGhar
i
I
ndust
ri
esPv
tLt
dgr
oup,
hav
ingannualgr
oupt
urnov
erofar
oundUS$200mi
l
li
on.Thi
s
companyi
sal
somanuf
act
uri
ngdet
ergentundert
hebr
andname"
Ghar
i"whi
chi
sawel
l
est
abl
i
shedbr
andandt
rendset
teri
nit
srespect
ivei
ndust
ry.
 

Foot
wearr
angeof
 RSPLLt
d. 
wasl
aunchedundert
hebr
andname 
RedChi
ef 
i
n1997t
o
meett
hegr
owi
ngdemandf
orbr
andedhi
ghqual
i
tyl
eat
herf
oot
wearatanaf
for
dabl
e
pr
ice.St
art
ingwi
thahandf
ulofempl
oyeesi
n1997,RedChi
efnowhasawor
kfor
ceof
mor
ethan350dedi
cat
edempl
oyees.
 Thecompanyhasr
ecor
dedani
mpr
essi
vegr
owt
h
t
hrough i
ts ent
husi
ast
ic and hi
ghl
y mot
ivat
ed mar
ket
ing t
eam and an ef
fi
cient
di
str
ibut
ionnet
wor
kcov
eri
ngnear
lyt
hewhol
eofnor
th&westI
ndi
a.Forf
utur
egr
owt
h
t
hecompanyi
snowal
lsett
oexpl
oreov
erseasmar
ket
.

Leay
anGl
obalPv
t.Lt
d,t
hef
astgr
owi
ngpar
tofRSPL,i
sar
espect
ednamei
nleat
her
i
ndust
rysi
nce 1995.I
t’
san assembl
age ofpot
ent
ialmanuf
act
uri
ng uni
tswi
th an
unbeat
enexper
ienceof16y
ear
s.RSPLLi
mit
edst
art
edi
tspr
imar
ybusi
nesswi
tha
si
ngl
epr
oduct
ionuni
twi
thi
tsownFMCGsoapBr
and-GHARIi
nthey
ear1988.Wi
thi
ts
i
nnov
ati
veandhar
dwor
kingat
tempt
s,GHARIbecameal
eadi
ngFMCGbr
andi
nIndi
a.

Thef
oot
wearr
angeofLeay
anGl
obalPv
t.Lt
dwasl
aunchedundert
hebr
andnameRED
CHI
EFi
n1997t
omeetgr
owi
ngdemandf
orbr
andedhi
ghqual
i
tyl
eat
herf
oot
wear
.The
companyi
sacompl
etel
eat
herandf
oot
wearmanuf
act
urerwi
thi
tsownt
anner
yandf
ive
manuf
act
uri
ngpl
ant
s.Thi
srecogni
ti
oni
sinspi
ri
ngt
het
eam t
oincr
easei
tspr
oduct
ion
capaci
tyandf
ulf
il
lthegr
owi
ngneedsofconsumer
s.
Thecompanyhasal
sot
akent
hef
ashi
oni
ndust
rybyst
orm wi
tht
hei
rvent
urei
nthe
appar
elandaccessor
ysect
or.Wear
enow of
fer
ingsol
uti
onst
oal
lmen'
sfashi
onand
l
i
fest
yler
equi
rement
s.Notonl
yar
ewedi
ver
sif
ied,wear
eof
fer
ingdesi
gnswhi
char
e
uni
queandst
andoutf
rom t
hoseofourcompet
it
ors;butweal
sost
anduni
tedi
nour
pr
omi
seofdel
i
ver
ingnot
hingbutt
hebest
.

Websi
te
ht
tp:
//www.
redchi
ef.
in

Headquar
ter
s
Kanpur-I
ndi
a(U.
P.)

YearFounded
1995

CompanyTy
pe
Publ
i
cCompany

Si
ze
5001-
10,
000empl
oyees
 I
ndi
anShoeMar
ket

TheI
ndi
anf
oot
wearmar
keti
sest
imat
edt
obewor
thUSD3.
94bi
l
li
onandi
sgr
owi
ngat
acompoundedannual
rat
eof15%t
obewor
thUSD6.
89bi
l
li
onby2015.
Thegl
obal
foot
wearmar
ketsi
zei
sest
imat
edt
obeUSD181.
9bi
l
li
ongr
owi
ngataCAGR
ofnear
ly5%.
Indi
aist
hewor
ld’
ssecondl
argestf
oot
wearpr
oduci
ngcount
ry,secondt
o
Chi
naandt
het
hir
dlar
gestmar
ket
.

Ev
ent
hought
hepercapi
tashoeconsumpt
ioni
nIndi
ahasgoneupf
rom 1.
4shoesa
y
eari
n2004t
o2.
5shoespery
eari
n2012,i
tisst
il
lmuchbel
owt
heav
eragepercapi
ta
i
ncomeshoeconsumpt
ionoff
ive,i
ndev
elopedcount
ri
esI
ndi
aisamaj
orsuppl
i
erof
medi
um-andl
ow pr
icedFoot
wear
. Sev
eralf
oot
wearmaj
orssour
cepar
tsoft
hei
r
pr
oduct
ionandpur
chasef
rom I
ndi
a.Fur
ther
,reput
edgl
obalbr
andssuchas Fl
orshei
m,
Nunn Bush,St
acy Adams,Gabor
,Cl
arks,Reebok,Ecco, Dei
chmann,El
efant
en ,
St
Michael
s,Hasl
ey,
Sal
amanderandCol
ehaanar
emanuf
act
uredunderl
i
censedi
nIndi
a.
I
ndi
ahasaboomi
nggar
mentandshoemar
ket
.Inv
ari
ousci
ti
est
her
e,new shoppi
ng
mal
l
shav
espr
unguponeaf
teranot
herandsel
l
erscompet
etoexhi
bitl
atestpr
oduct
s
whi
l
econsumer
sexhi
biteagerdemandf
orbr
andpr
oduct
s.Manybr
andsexpandt
hei
r
busi
nessest
hroughf
ranchi
sedoper
ati
on,par
ti
cul
arl
ygar
mentandshoebr
ands.By
2012,f
ranchi
sedoper
ati
oni
sexpect
edt
ohi
t6%i
ngr
owt
hrat
e,amount
ingt
oUSD17
bi
l
li
oni
ntot
alv
alue.Thi
smeanst
hatt
hismar
ketwi
l
lcr
eat
esubst
ant
ialoppor
tuni
ti
es
r
elat
edt
ofr
anchi
sedoper
ati
on.

I
ndi
aiswi
tnessi
ngar
api
dgr
owt
hini
tsr
etai
l
,at
tr
act
ingmanyi
nter
nat
ional
brands,
most
ofwhi
chcomef
rom Eur
opeandUSA.Af
terTommyHi
l
figeropenedupst
orei
nIndi
a
r
ecent
ly,i
tisr
epor
tedt
hatEspr
iti
stoent
ert
hismar
keti
nsummer2005.Accor
dingt
o
CYPal
,pr
esi
dentofI
ndi
aFr
anchi
seAssoci
ati
on,hal
foft
her
etai
lact
ivi
ti
esi
nUSAi
s
conduct
edi
nthef
orm off
ranchi
sedoper
ati
onwhi
l
eonl
y2% oft
her
etai
lact
ivi
ti
esi
n
I
ndi
aisassoci
atedwi
thf
ranchi
sedoper
ati
on.Howev
er,f
ranchi
sedoper
ati
onhasbeen
r
api
dlygr
owi
ngi
nIndi
aatt
heannual
growt
hrat
eof30-
40%,
especi
all
y4or5y
ear
sago.

Accor
dingt
oPal
,resear
chi
ndi
cat
est
hatt
hesuccessr
atef
orf
ranchi
sedoper
ati
oni
s
ashi
ghas90%whi
l
ethatf
ornon-
fr
anchi
sedoper
ati
oni
sasl
owas10%.Maj
orpl
ayer
s
ar
e openi
ng mor
e st
ores t
o capt
uret
he gr
owi
ng consumermar
ket
.Fur
ther
,an
i
ncr
easi
ngnumberofpl
ayer
sar
edel
vi
ngi
ntoTi
erI
IandTi
erI
IIci
ti
esaswel
last
he
gr
owi
ngr
ural
mar
kett
otapgr
owi
ngoppor
tuni
ty.Accor
dingt
omedi
arepor
ts,t
henon-
met
romar
ketaccount
sfornear
ly55%oft
heov
eral
lfoot
weari
ndust
ry.

Accor
dingt
oForBeSt
yli
sh.
com,anonl
i
nef
oot
wearr
etai
l
er,
37% oft
het
raf
fi
ccomes
f
rom ur
banar
eas,whi
l
eanequalnumber
comesf
rom t
ownswi
thapopul
ati
onofl
ess
t
hanhal
fami
l
li
on.
*
Recent
ly,Reebokannouncedt
hati
twoul
dmakeaone-
dol
l
arshoef
orI
ndi
a.Thi
swi
l
l
enabl
ethem t
ocapt
uret
hel
argel
yunt
appedr
ural
mar
ket
.

Onl
i
neshoeshoppi
ng i
sa si
gni
fi
cantsegmentt
hati
sfastemer
ging i
nter
msof
f
oot
wearsal
es.Accor
dingt
orepor
ts,
itaccount
sforabout
8%oft
heov
eral
li
ndust
ryand
i
sexpect
ed t
oreachabout20% by2015.Ret
ail
ersneed t
olocal
i
set
hei
rpr
oduct
of
fer
ingst
ocat
ert
ovar
yingconsumerdemands.I
tther
efor
ebecomesi
mper
ati
vet
o
under
standt
argetconsumerdemands.St
ylesandcol
our
svar
yfr
om r
egi
ont
oregi
on.
Br
ightcol
our
smaybedemandi
nnor
ther
nIndi
a
Whi
l
ewhi
teandmut
edcol
our
ssel
lwel
linsout
hIndi
a.I
nfact
,toov
ercomet
his,some
l
argeRet
ail
ersl
i
keNi
keandReebokar
eof
fer
ingcust
omi
singopt
ionssuchassel
ect
ing
t
hedesi
gn,
Col
our
s,et
c.ont
hei
rwebsi
tes.
Accor
dingt
oanASSOCHAM sur
vey
,womenar
eingener
almor
econcer
nedaboutt
he
st
yleand
Looksanddonotmi
ndbuy
ingf
rom t
hel
ocalmar
ket
.Ont
heot
herhand,menar
e
concer
nedAboutt
hequal
i
tyandpr
iceoft
hepr
oductandpr
eferbr
andedshoes.
Gr
owi
ng compet
it
ion wi
l
lsee i
nnov
ati
on become key t
o di
ff
erent
iat
ing bet
ween
pr
oduct
sint
he
Mar
ketandgai
ningconsumer
s.Pl
ayer
sar
einnov
ati
ngar
oundmat
eri
als,desi
gn,et
cin
or
dert
oimpar
tvar
yingat
tri
but
est
othef
oot
wear
-l
ikei
nsol
est
hatcanmodul
atet
he
heatr
eleased,
sol
est
owhi
chv
ary
ingwei
ghtmaybeat
tachedt
ovar
ythest
ami
naoft
he
wor
kout
,et
c.Ni
kehasl
aunchedanewl
i
ne,Ni
keFl
ykni
t.Theshoehasasockat
tached
wi
thi
n.Fur
ther
,thewar
pandwef
toft
heshoe’
stext
uri
sedkni
topensupt
hepossi
bil
i
ty
f
ori
nter
est
ingcol
ourcombi
nat
ions.

Tot
alr
evenueoff
oot
weari
ndust
ryi
nindi
a

TheI
ndi
anf
oot
weari
ndust
ryhasdev
elopedsubst
ant
ial
li
nksi
nthegl
obal
product
ion
net
wor
k.

But
,thi
sindust
ryi
sst
il
ldomi
nat
edbyf
ir
mst
hatcat
erl
argel
ytot
hedomest
icmar
ket
t
hrought
hear
ti
sanalpr
oduct
ionsy
stem.Speci
fi
cfoot
wearcent
resandsect
ionsof
f
ir
msi
ntr
adi
ti
onalf
oot
wearcl
ust
ershav
eest
abl
i
shedst
rongr
elat
ionswi
tht
heexpor
t
mar
ket
.St
il
l,t
her
ear
eonl
yfewf
ir
ms(
e.g.
,Lot
usFoot
wearLt
d.,ApacheFoot
wearLt
d.
Et
c.)t
hatar
e di
rect
lyi
nvol
ved i
nthe gl
obalpr
oduct
ion chai
n ofmul
ti
nat
ional
cor
por
ati
on(
MNC)i
nthespor
tsf
oot
wearcat
egor
y..
Apar
tfr
om TATA,
nol
argedomest
ic
cor
por
atef
ir
m i
sinv
olv
ed i
nthef
oot
wearpr
oduct
ion nei
therf
orexpor
tori
nthe
domest
icmar
ket
.

Themar
ket
ingsy
stem ofexpor
tanddomest
icmar
ket
scanbeapt
lycompar
edi
nthe
Theor
eti
calf
ramewor
koft
ransact
ioncosteconomi
cs(
Tesf
om et
.al
,2003)
.Thekey
el
ement
soft
hisf
ramewor
kar
eassetspeci
fi
cit
y,uncer
tai
ntyandf
requency
.Int
hisl
ow
t
echnol
ogyi
ndust
ryent
rybar
ri
eri
slowandassetspeci
fi
cit
yisl
argel
yrel
atedt
omar
ket
i
nfor
mat
ion.I
nexpor
tmar
ket
,themar
ketr
esear
chi
slar
gel
yunder
takenbyi
mpor
ter
s
(
whol
esal
ers,
ret
ailchai
nst
ores,
depar
tment
alst
oreset
c.)
.Int
heabsenceofor
gani
zed
mar
ketr
esear
chbywhol
esal
ers(
alongwi
thl
ow dev
elopmentofr
etai
lchai
nst
ores)
di
rectent
ryi
ntodomest
icmar
ketr
equi
ressubst
ant
ial
resour
ces.

Second,gr
eat
eruncer
tai
ntyexi
stsi
nthedomest
icmar
keti
nthesenseofmar
ket
v
olat
il
it
y–l
ackofi
nfor
mat
iononev
olv
ingf
ashi
onr
equi
rement
,demandi
npar
ti
cul
ar
mar
ketandl
essav
ail
abi
l
ityofassur
ancei
nst
rument
s(l
ett
erofcr
edi
t,agent
s,qual
i
ty
i
nspect
ionet
c.)
.

Thi
rd,i
mpor
ter
spl
acer
elat
ivel
ylar
geror
der
sinspeci
fi
cfr
equency(
seasons)wher
eas
domest
icwhol
esal
ersor
deri
nsmal
lbat
chesandatl
essr
egul
arf
requency
.Int
his
scenar
io,t
hesi
zeofmar
ket
,ty
peandqual
i
tyofpr
oductt
obemanuf
act
uredbr
oadl
y
det
ermi
nest
hechoi
ceofpr
oduct
iont
echnol
ogyi
ndi
ff
erentmar
ketsegment
s.Howev
er,
t
hepr
ocessoft
echnol
ogyadopt
ionandt
echni
calchanget
her
eini
sinf
luencedbyt
he
exi
sti
ngi
nst
it
uti
onswi
thi
tsspeci
fi
cincent
iveanddi
sincent
ivest
ruct
ureswhi
char
e
embeddedi
nthecul
tur
e(cast
especi
fi
cit
yoft
radi
ti
onalf
oot
wearpr
oduct
ion)andot
her
i
nst
it
uti
onst
hatar
eHi
stor
icalr
eal
i
ties(
You,1995)
.Thesi
zedi
str
ibut
ionoff
ir
msand
changesi
niti
stheout
comeof
atei
nter
playoft
hesev
ari
ousf
act
orsandi
nst
it
uti
ons.
Thi
sst
udyi
sor
gani
zedi
nthef
oll
owi
ngf
ashi
on.Fi
rst
,wedi
scusst
hef
oot
weari
ndust
ry
i
nIndi
aint
hegl
obalcont
ext
.Second,wepr
esentt
hreecasest
udi
est
ogetacompl
ete
pi
ctur
eoft
hecompl
exi
tyanddy
nami
sm oft
hisi
ndust
ry.Last
,wepi
npoi
nti
ssuest
hat
hav
eimpl
i
cat
ionont
heempl
oymentsi
zedi
str
ibut
ionoff
ir
ms.Mostoft
heexpor
ti
ng
f
ir
msconcent
rat
eonmen’
sandwomen’
sfoot
wearandonl
yfewofTheyspeci
ali
zei
n
chi
l
drenf
oot
wear
.Chi
l
drenf
oot
wearr
equi
resl
argerv
ari
ati
oni
nsi
ze,
col
orandst
ri
ngent
nor
msofdi
ff
erentchemi
cal
sused.Mostoft
her
aw mat
eri
alsar
esour
cedf
rom l
ocal
mer
chant
sandonl
yinf
ew casesl
eat
herandot
heraccessor
iesar
eimpor
ted.I
nlar
ge
expor
tuni
tspr
oduct
iongoesonal
mostt
hroughoutt
hey
earbuthowev
ert
hepeak
per
iodl
astf
orsi
xmont
hsasf
oot
wearsuppl
i
edgof
orsummerandaut
umnseason.

The l
eat
heri
ndust
ryi
s one oft
he ol
destt
radi
ti
onali
ndust
ri
es.I
thas sev
eral
component
sli
ket
anni
ng,f
oot
wear& l
eat
herpr
oduct
sincl
udi
nggar
ment
s. Moder
n
l
eat
heri
ndust
rybeganwi
thBr
it
ishgov
ernment
sdi
rectencour
agement
s.Fi
rstmoder
n
t
anni
ngwasest
abl
i
shedi
n1857(
Kumar
,1997)
.
Thef
ir
stmoder
nfoot
weari
ndust
rywasst
art
edi
n1887.Howev
er,
thef
oot
weari
ndust
ry
wasl
argel
ybasedont
radi
ti
onalar
ti
sanmode.I
nthei
ndust
ri
alpol
i
cyof1967,t
he
l
eat
heri
ndust
ryi
ncl
udi
ngf
oot
wearwasr
eser
vedf
orsmal
lscal
esect
or.

I
nlat
e1970sandear
ly1980s,
100percentexpor
t-
ori
ent
edf
oot
weari
ndust
ri
esi
nlar
ger
scal
ewer
epr
omot
edandt
hatAl
l
owedl
argerscal
eindust
ri
est
ogetest
abl
i
shedaf
resh.

Rapi
dgr
owt
hinhi
ghandmedi
um-
endshoemar
ket

Or
gani
zedr
etai
lscal
einI
ndi
aonl
yoccur
srecent
ly.Accor
dingt
oPal
,Bat
aisoneoft
he
f
ir
stbr
andst
oimpl
ementf
ranchi
sedoper
ati
onandcur
rent
ly,al
mostal
lspor
tsshoe
br
ands,i
ncl
udi
ngPuma,Adi
dasandNi
ke,ar
eoper
atedi
nthi
smode.I
ndi
anhi
gh-
end
spor
tsshoeandgar
mentmar
keti
sexpect
edt
oachi
eve20%gr
owt
hrat
ethi
syear
.

Asi
ndi
cat
edbySushi
lDungar
wal
,execut
ivepr
esi
dentofTheLof
t(f
orer
unneri
nbr
and
shoest
ores)
,cur
rentmar
keti
sshi
ft
ingf
rom l
ow-
pri
ceshoest
omedi
um andhi
gh-
end
pr
oduct
s,t
husat
tract
ingal
otoff
orei
gnshoebr
andst
oopenst
oresi
nIndi
a.Recent
ly,
Cl
arksopenedi
tsexcl
usi
veshoest
orei
nIndi
aandot
herbr
andssuchasLot
to,Mar
co
Ri
cci
,Val
i
s and Tommy Hi
l
figerhav
e achi
eved out
standi
ng per
for
mance.Lof
tis
oper
ati
ngmor
ethan130I
ndi
anandi
nter
nat
ionalpr
est
igi
ousshoebr
ands,becomi
nga
pl
atf
ormf
ormosti
nter
nat
ional
brandst
oent
erI
ndi
anmar
ket
.

Mosti
nter
nat
ionalshoebr
andsent
erI
ndi
anmar
kett
hroughdi
ff
erentr
etai
lchannel
s,
i
ncl
udi
ng excl
usi
ve st
ores and st
ores deal
i
ng i
n mul
ti
ple br
ands.Accor
ding t
o
Dungar
wal
,Cl
arkshasi
tsexcl
usi
vest
oreandhasf
ormul
atedi
tsmar
ket
ingst
rat
egy
;
TommyHi
l
figeral
sol
aunchesser
iesshoest
hroughi
tsexcl
usi
vest
ore.Ot
herbr
ands
suchasEckomayal
somar
kett
hei
rpr
oduct
sthr
ought
wot
ypesofst
ores.Asi
ndi
cat
ed
byDungar
wal
,Indi
anhi
ghqual
i
tyshoemar
ketpr
omi
sesgr
eatpot
ent
ial
.Indi
ahasa
popul
ati
onofonebi
l
li
on.I
fev
eryI
ndi
anbuy
sapai
rofUSD15.
5shoes,t
hismakesa
hugemar
ket
.Hebel
i
evest
housandsofshoest
oreswi
l
lbeopenedi
nIndi
aint
henext5-
10y
ear
s.

Topt
enf
oot
wearconsumpt
ional
lov
ert
hewor
ld

Spor
tsshoemar
keti
sal
soexper
ienci
ngaboomi
nggr
owt
h.Manyi
nter
nat
ionalbr
ands
suchasPuma,Adi
dasandNi
kear
epl
anni
ngt
oexpandmar
keti
nIndi
a.Hol
ding47%
mar
ketshar
einI
ndi
anhi
gh-
endspor
tsshoemar
ket
,Pumaal
readyhasabout130st
ores
t
her
eandi
spl
anni
ngt
oopenanew st
oreev
eryweekt
oful
l
ycov
erl
argeandsmal
l
ci
ti
esi
nIndi
a.I
ndi
aisal
sot
hel
argestmar
ketf
orAdi
dasi
nSout
heastAsi
a.Thi
sbr
and
hasopened80f
ranchi
sedst
oresi
nvar
iousr
egi
onsi
nIndi
a.I
tal
i
anbr
andUni
tedCol
our
s
ofBenet
tont
hathasmai
ntai
nedal
ow-
keyat
ti
tudei
npasty
ear
sispl
anni
ngt
oexpand
i
tsmar
keti
nIndi
aandwi
l
lupdat
eandexpandt
hei
rexi
sti
ngst
ores.

SWOTanal
ysi
sofI
ndi
anf
oot
weari
ndust
ry

STRENGTHS

1.Exi
stenceofmor
ethansuf
fi
cientpr
oduct
ivecapaci
tyi
ntanni
ng
2.Easyav
ail
abi
l
ityofl
owcostofl
abour

3.Exposur
etoexpor
tmar
ket
s
4.Management
swi
thbusi
nessbackgr
oundbecomequal
i
tyandenv
ironmentconsci
ous.

5.Pr
esenceofqual
i
fiedl
eat
hert
echnol
ogi
stsi
nthef
iel
d.
6.Comf
ort
abl
eav
ail
abi
l
ityofr
awmat
eri
alsandot
heri
nput
s.Massi
vei
nst
it
uti
onal
suppor
tfort
echni
cal
ser
vices,
desi
gni
ng,
manpowerdev
elopmentandmar
ket
ing

WEAKNESSES

1.Low l
evelofmoder
nizat
ionandupgr
adat
ionoft
echnol
ogy
,andt
hei
ntegr
ati
onof
dev
elopedt
echnol
ogyi
sver
ysl
ow.
2.Lowl
evel
ofl
abourpr
oduct
ivi
tyduet
oinadequat
efor
mal
trai
ning/unski
l
ledl
abour
.
Hor
izont
algr
owt
hoft
anner
ies
3.Lessnumberofor
gani
sedpr
oductmanuf
act
urer
s.
4.Lackofmoder
nfi
nishi
ngf
aci
l
iti
esf
orl
eat
her
.Hi
ghl
yunhy
gieni
cenv
ironment
5.Unawar
enessofi
nter
nat
ionalst
andar
dsbymanypl
ayer
sasmaxi
mum numberof
l
eat
heri
ndust
ri
esar
eSMEs.Di
ff
icul
ti
esi
naccessi
ngt
otest
ing,
desi
gni
ngandt
echni
cal
ser
vices
6.Env
ironment
alpr
obl
ems.Nonav
ail
abi
l
ityofqual
i
tyf
oot
wearcomponent
sLackof
f
reshi
nvest
menti
nthesect
or
7.Uneconomi
cal
sizeofmanuf
act
uri
nguni
ts.
8.Compet
it
ionamonguni
tsv
yingf
orexpor
tor
der
sleadi
ngt
ounder
cut
ti
ng.Li
tt
lebr
and
i
mage
9.Poorl
abourpr
oduct
ivi
ty.
10.Lackofawar
enessaboutconsi
stenti
npl
antt
rai
ningandr
etr
aini
ng-I
nconsi
stent
qual
i
tyhi
ghr
eject
ionr
ateLowmachi
neandmat
eri
alpr
oduct
ivi
ty.
11.Lackofqual
i
tyj
obwor
kuni
tsDel
ayeddel
i
ver
iesandWeaksuppor
tinf
ra-st
ruct
ure
f
orexpor
ts

OPPORTUNI
TIES

1.Abundantscopet
osuppl
yfi
nishedl
eat
hert
omul
ti
nat
ional
sset
ti
ngupshopi
nIndi
a
2.Gr
owi
ngf
ashi
onconsci
ousnessgl
obal
l
y.
3.Useofi
nfor
mat
iont
echnol
ogyanddeci
sionsuppor
tsof
twar
etohel
pel
i
minat
ethe
l
engt
hoft
hepr
oduct
ioncy
clef
ordi
ff
erentpr
oduct
s
4.Pr
oductdi
ver
sif
icat
ion-Ther
eisl
otofscopef
ordi
ver
sif
icat
ioni
ntoot
herpr
oduct
s,
namel
y,l
eat
hergar
ment
s,goodset
c.
5.Gr
owi
ngi
nter
nat
ional
anddomest
icmar
ket
s.
6.Exposur
etonewermar
ket
sthr
oughFai
rs/BSMs
7.Ret
aincust
omer
sthr
oughqual
i
tysuppl
i
esandt
imel
ydel
i
ver
ies
8.Ai
mtopr
esentt
hecust
omerwi
thnew desi
gns,i
nfr
ast
ruct
ure,count
ry&company
pr
ofi
l
es.
9.Useofmoder
ntechnol
ogy
10.Exhi
bitst
rengt
hs i
n manuf
act
uri
ng,f
orexampl
e,st
rengt
hs i
n cl
assi
c shoe
manuf
act
uri
ng,
handcr
aft
inget
c.
11.De-
reser
vat
ionoft
hef
oot
wearsect
or.

THREATS

1.
Ent
ryofmul
ti
nat
ional
sindomest
icmar
ket
2.St
if
fcompet
it
ionf
rom ot
hercount
ri
es.(
Theper
for
manceofgl
obalcompet
it
orsi
n
l
eat
herandl
eat
herpr
oduct
sindi
cat
est
hatt
her
ear
eatl
east5count
ri
esv
iz,Chi
na,
I
ndonesi
a,Thai
l
and,
Viet
nam andBr
azi
l
,whi
char
emor
ecompet
it
ivet
hanI
ndi
a.)
3.
Non-t
ari
ffbar
ri
ers-Dev
elopi
ngcount
ri
esar
eresor
ti
ngt
omor
eandmor
enon–t
ari
ff
bar
ri
ersi
ndi
rect
ly.
4.I
mpr
ovi
ngqual
i
tyt
oadaptt
hest
ri
cteri
nter
nat
ional
standar
ds.
5.Fastchangi
ngf
ashi
ont
rendsar
edi
ff
icul
ttoadaptf
ort
heI
ndi
an

Funct
ion
Thenameoft
heshowr
oom wi
thspor
tfoot
wearhav
ingnew t
echnol
ogy
,appar
elsand
v
ari
ousaccessor
iesofmen,womenandki
dsi
sSel
ectpl
anet
.Theshowr
oom desi
gnof
anenv
ironmentt
hroughv
isualcommuni
cat
ions,l
i
ght
ings,col
our
s,scentt
ost
imul
ate
cust
romer
spr
ecept
ualandemot
ionalr
esponsesandul
ti
mat
elyt
oaf
fectt
hierpur
chase
behav
iour
.
o l
i
ght
ing-
 hi
ghl
i
ghtmer
chandi
se.
 st
ruct
urespaceandcapt
ureamood.
 ener
gyef
fi
eci
entl
i
ght
ing
 downpl
ayf
eat
ures
o col
our
-
 war
m col
our
sandact
iver
esponses.
 cool
col
our
shav
eapeacef
ul,
gent
leef
fect
.
 cul
tur
all
ybonded
 o musi
c-
 cont
rolt
het
hepaceofst
oret
raf
fi
c,cr
eat
eani
mageandat
tractordi
rect
consumerat
tent
ion
Empl
oyees ar
e engaged i
nthi
s shopwr
oom wher
eis 1 gener
almanager
,1 sal
es
manager
,1account
ant
,2mar
ket
ingar
epr
esent
.al
lst
affi
swel
lbehav
ed,
hel
pfulandco-
oper
ati
ve

Pr
oduct&Ser
vices

Shosei
ndust
ryi
sengagedi
nthebusi
nessof
sanal
s,shoes pr
ovi
de t
oit
s cust
omer
sin
I
ndi
a
Thepr
oduct
soft
hecompanyar
e:
•Mai
nPr
oduct
s
 shoes

 sandal
s

 mensspor
twearshoes

 Babyshoes

 babysandal
s

Or
gani
zat
ional
str
uct
ure
Anyoper
ati
ngor
gani
zat
ionshoul
dhav
eit
sownst
ruct
urei
nor
dert
ooper
ateef
fi
cient
ly.
Foran or
gani
zat
ion,t
he or
gani
zat
ionalst
ruct
urei
sa hi
erar
chyofpeopl
e and i
ts
f
unct
ions.

The or
gani
zat
ionalst
ruct
ure of an or
gani
zat
ion t
ell
syou t
he char
act
er of an
or
gani
zat
ionandt
hev
aluesi
tbel
i
evesi
n.Ther
efor
e,wheny
oudobusi
nesswi
than
or
gani
zat
ionorget
ti
ngi
ntoanewj
obi
nanor
gani
zat
ion,
iti
sal
way
sagr
eati
deat
oget
t
oknowandunder
standt
hei
ror
gani
zat
ional
str
uct
ure.

Dependi
ngont
heor
gani
zat
ionalv
aluesandt
henat
ureoft
hebusi
ness,or
gani
zat
ions
t
endt
oadoptoneoft
hef
oll
owi
ngst
ruct
uresf
ormanagementpur
poses.

Al
thought
heor
gani
zat
ionf
oll
owsapar
ti
cul
arst
ruct
ure,t
her
ecanbedepar
tment
sand
t
eamsf
oll
owi
ngsomeot
heror
gani
zat
ional
str
uct
urei
nexcept
ional
cases.

Somet
imes,some or
gani
zat
ions may f
oll
ow a combi
nat
ion of t
he f
oll
owi
ng
or
gani
zat
ional
str
uct
uresaswel
l
.
Or
gan
iza
ti
ona
lSt
ruc
tur
eTy
pes
Funct
ional
Str
uct
ure
Theor
gani
zat
ioni
sdi
vi
dedi
ntosegment
sbasedont
hef
unct
ionswhenmanagi
ng.Thi
s
al
l
owst
heor
gani
zat
iont
oenhancet
heef
fi
cienci
esoft
hesef
unct
ionalgr
oups.Asan
exampl
e,t
akeasof
twar
ecompany
.

Sof
twar
eengi
neer
swi
l
lonl
yst
afft
heent
ir
esof
twar
edev
elopmentdepar
tment
.Thi
s
way
,managementoft
hisf
unct
ional
groupbecomeseasyandef
fect
ive.

Funct
ionalst
ruct
uresappeart
obesuccessf
uli
nlar
geor
gani
zat
iont
hatpr
oduceshi
gh
v
olumesofpr
oduct
satl
ow cost
s.Thel
ow costcanbeachi
evedbysuchcompani
es
duet
otheef
fi
cienci
eswi
thi
nfunct
ional
groups.

I
naddi
ti
ont
osuchadv
ant
ages,t
her
ecanbedi
sadv
ant
agef
rom anor
gani
zat
ional
per
spect
ivei
fthecommuni
cat
ionbet
weent
hef
unct
ionalgr
oupsi
snotef
fect
ive.I
nthi
s
case,or
gani
zat
ionmayf
indi
tdi
ff
icul
ttoachi
evesomeor
gani
zat
ionalobj
ect
ivesatt
he
end.
Di
vi
sional
Str
uct
ure

Theset
ypesofor
gani
zat
ionsdi
vi
det
hef
unct
ional
areasoft
heor
gani
zat
iont
odi
vi
sions.
Eachdi
vi
sioni
sequi
ppedwi
thi
tsownr
esour
cesi
nor
dert
ofunct
ioni
ndependent
ly.
Ther
ecanbemanybasest
odef
inedi
vi
sions.

Di
vi
si
onscanbedef
inedbasedont
hegeogr
aphi
calbasi
s,pr
oduct
s/ser
vicesbasi
s,or
anyot
hermeasur
ement
.

Asanexampl
e,t
akeacompanysuchasGener
alEl
ect
ri
c’
s.I
tcanhav
emi
crowav
e
di
vi
sion,t
urbi
nedi
vi
si
on,et
c.,andt
hesedi
vi
sionshav
ethei
rownmar
ket
ingt
eams,
f
inancet
eams,et
c.I
nthatsense,eachdi
vi
sioncanbeconsi
der
edasami
cro-
company
wi
tht
hemai
nor
gani
zat
ion.
Pol
i
tical
Env
ironment

Pol
i
ticalenv
ironmenti
stheout
comeofacombi
nat
ionofv
ari
ousi
deol
ogi
esadv
ocat
ed
bydi
ff
erentpol
i
tical
par
ti
es.
Fact
orsconnect
edwi
tht
heact
ivi
ti
esoft
hegov
ernmentar
eincl
udedi
nit
,e.
g.,t
het
ype
ofgov
ernment(
singl
e-par
tygov
ernmentormul
ti
-par
tygov
ernment
),t
heat
ti
tudeoft
he
gov
ernmentt
owar
dsdi
ff
erenti
ndust
ri
es,
progr
essi
npassi
ngdi
ff
erentl
aws.
Thepl
atf
ormsoft
hepol
i
ticalpar
ti
es,
thet
endencyoft
heappl
i
cant
sfordi
ff
erentpost
s,
ef
for
tsbyv
ari
ousgr
oupst
ogetef
fect
ivesuppor
tfort
hemsel
ves,et
c.Ev
erypol
i
tical
par
tyhasadi
ff
erentat
ti
tudet
owar
dsbusi
nesscommuni
ty.
Al
i
vingexampl
eoft
hiscanbeseendur
ingel
ect
ionsi
ntheshapeoff
luct
uat
ionsi
nthe
shar
emar
ket
.Iti
squi
tepossi
blet
hatt
hemer
epossi
bil
i
tyofapar
ti
cul
arpol
i
ticalpar
ty
comi
ngi
ntopowercanmaket
hepr
icesofshar
eri
seskyhi
gh.I
tist
rueconv
ersel
ywhen
t
hepossi
bil
i
tyofsomeot
herpol
i
ticalpar
tycomi
ngi
ntopowermaybr
ingt
hepr
iceof
shar
esr
eal
l
ynose-
div
ing.
I
tcl
ear
lyshowst
hatt
heat
ti
tudeoft
hef
ir
stpol
i
ticalpar
tyt
owar
dsbusi
nessi
sposi
ti
ve
whi
chget
sref
lect
edi
ntheposi
ti
veef
fectont
heshar
emar
ket
.Ont
heot
herhand,t
he
negat
iveat
ti
tudeoft
hesecondpol
i
ticalpar
tyt
owar
dsbusi
nessi
sref
lect
edi
nthenose-
di
vi
ngofpr
icesofshar
esi
ntheshar
emar
ketmer
elyont
hepossi
bil
i
tyofi
tscomi
ngt
o
power
.

Thef
oll
owi
ngar
esomeoft
heexampl
esoft
hei
mpactoft
hepol
i
ticalenv
ironmenton
busi
ness:
(
i)I
n 1977,t
he Janat
a Gov
ernmentadopt
ed a st
ri
ngentat
ti
tude t
owar
ds t
he
mul
ti
nat
ionalcompani
es.Asar
esul
toft
hisat
ti
tude,t
hemul
ti
nat
ionalcompani
esl
i
ke
t
heI
BM andt
heCoca-
Col
ahadt
oignor
eIndi
a.
(
ii
)Thenew gov
ernmentencour
agedt
hemul
ti
nat
ionalcompani
esf
ori
nvest
menti
n
I
ndi
a.Thi
sledt
otheopeni
ngoft
hedoor
soft
heI
ndi
anmar
ketf
ort
hemul
ti
nat
ional
compani
es.Consequent
ly,
theCoca-
Col
aent
eredt
heI
ndi
anmar
ketonceagai
n.
(
ii
i)I
twasonl
ybecauseoft
hepol
i
ticali
nter
estt
hatHy
der
abadcamet
obeknownas
Cy
berbadI
not
herwor
ds;i
tcamet
ober
ecogni
zedast
hecent
reofI
nfor
mat
ion
Technol
ogy(
IT)
.Asar
esul
t,manyI
Tcompani
escamet
obeest
abl
i
shedt
her
e.

Someaspect
sofpol
i
tical
env
ironment
:

 Pr
esentpol
i
tical
syst
em.
 Const
it
uti
onoft
hecount
ry
 Pr
ofi
l
eofpol
i
tical
leader
s.
 For
eignpol
i
cyofgov
ernment
 Val
uesandi
deol
ogyofpol
i
tical
par
ti
es
 Gov
ernmenti
nter
vent
ioni
nbusi
ness

Af
fectofPol
i
tical
env
ironmenton
 Var
iousgov
ernmentschemeshel
psmanuf
act
uri
nguni
tsi
nor
dert
othei
rgr
owt
h
anddev
elopment
 MAKEI
NINDI
Ahel
psmanyf
oot
wearcompani
esi
nor
dert
ocompet
ethewi
th
f
orei
gncompani
es
 Manyt
axat
ionbenef
it
sbygov
ernmentofI
ndi
a.
 Apar
tfr
om ot
hermanuf
act
uri
ngi
ndust
ri
est
hegov
ernmental
sopr
ovi
desexpor
t
benef
it
sto sev
eraloff
oot
wearcompani
esi
n or
dert
o capt
urei
nter
nat
ional
mar
ket
swhi
chactasi
ncr
easei
nexpor
tear
nings.

Economi
cenv
ironment
Economi
cenv
ironmentconsi
stsoff
act
orsl
i
kegr
ossdomest
icpr
oduct
,incomel
evelat
nat
ionall
evelandpercapi
tal
evel
,pr
ofi
tear
ningr
ate,
product
ivi
tyandempl
oymentr
ate,
i
ndust
ri
al,
fiscal
pol
i
cyofgov
ernmentet
c.
The Economi
c env
ironmentf
act
ors hav
eimmedi
ate and di
recti
mpacton t
he
busi
nessman so busi
nessman mustscan t
he economi
c env
ironmentand t
ake
i
mmedi
ateact
ionst
odeal
wit
htheseenv
ironment
s.
Economi
c env
ironmentmay putconst
rai
nts and may of
feroppor
tuni
ti
es t
othe
busi
nessman.Thecommonf
act
orst
hataf
fectt
heI
ndi
aneconomi
cenv
ironmentar
e:

 Banki
ngsect
orsr
efor
m hasl
edt
omanyat
tr
act
iveschemesofDeposi
tsand
l
endi
ngmoney
.Thebanksar
eof
fer
ingl
oansatv
erynomi
nalr
ateofi
nter
estand
wi
thmi
nimum f
ormal
i
tiest
obecompl
eted
 Recentchangesi
nfi
scalpol
i
cyofourcount
ryhav
eencour
agedNRI
sandf
orei
gn
i
nvest
orst
oinv
esti
nIndi
a.
 Lot
sofeconomi
cref
ormsar
etaki
ngpl
acei
nleasi
ngandf
inanci
ali
nst
it
uti
ons.

Someaspect
sofeconomi
cenv
ironment
:
1. Rol
eofpr
ivat
eandpubl
i
csect
or
2. Rat
eofgr
owt
hofGDP,
GNP,
percapi
tai
ncome.
3. Rat
eofsav
ingsandi
nvest
ment
.
4. Bal
anceoft
rade.
5. Bal
anceofpay
ment
6. Tr
anspor
tandcommuni
cat
ionsy
stem.
7. I
nter
nat
ional
debt
.
Af
fectofeconomi
cenv
ironmenton

Cl
i
entDependence

I
fa si
ngl
ecl
i
entmakesup mor
ethan hal
fofy
ouri
ncome,y
ou ar
emor
eofan
i
ndependentcont
ract
ort
hanabusi
nessowner
.Di
ver
sif
yingt
hecl
i
entbasei
svi
talt
o
gr
owi
ngabusi
ness,buti
tcanbedi
ff
icul
t–especi
all
ywhent
hecl
i
enti
nquest
ionpay
s
wel
landont
ime.Formanysmal
lbusi
nesses,
hav
ingacl
i
entwi
l
li
ngt
opayont
imef
ora
pr
oductorser
vicei
sagodsend.
Unf
ort
unat
ely
,thi
scanr
esul
tinal
ongert
erm handi
capbecause,ev
eni
fyouhav
e
empl
oyeesandsoon,y
oumaybest
il
lact
ingasasub-
cont
ract
orf
oral
argerbusi
ness.
Thi
sar
rangemental
l
owst
hecl
i
entt
oav
oidt
her
isksofaddi
ngpay
rol
linanar
eawher
e
t
hewor
kmaydr
yupatanyt
ime.Al
loft
hatr
iski
str
ansf
err
edf
rom t
hecompanyt
oyou
andy
ourempl
oyees.Thi
scanwor
koutf
inepr
ovi
dedt
haty
ourmai
ncl
i
ent
shav
ea
consi
stentneed f
ory
ourpr
oductorser
vice.Howev
er,i
tisgener
all
ybet
terf
ora
busi
nesst
ohav
eadi
ver
sif
iedcl
i
entbaset
opi
ckupt
hesl
ackwhenanysi
ngl
ecl
i
ent
qui
tspay
ing.

MoneyManagement
Hav
ingenoughcasht
ocov
ert
hebi
l
lsi
samustf
oranybusi
ness,buti
tisal
soamust
f
orev
eryi
ndi
vi
dual
.Whet
heri
tisy
ourbusi
nessory
ourl
i
fe,onewi
l
lli
kel
yemer
geas
acapi
taldr
aint
hatput
spr
essur
eont
heot
her
.Inor
dert
oheadof
fthi
spr
obl
em,smal
l
busi
nessesowner
smustei
therbeheav
il
ycapi
tal
i
zedorbeabl
etopi
ckupext
rai
ncome
t
oshor
eupcashr
eser
veswhenneeded.Thi
siswhymanysmal
lbusi
nessesst
artout
wi
tht
hef
ounder
swor
kingaj
obandbui
l
dingabusi
nesssi
mul
taneousl
y.Whi
l
ethi
sspl
i
t
f
ocuscanmakei
tdi
ff
icul
ttogr
ow abusi
ness,r
unni
ngoutofcashmakesgr
owi
nga
busi
nessi
mpossi
ble.
Moneymanagementbecomesev
enmor
eimpor
tantwhencashi
sfl
owi
ngi
ntot
he
busi
nessandt
otheowner
.Al
thoughhandl
i
ngbusi
nessaccount
ingandt
axesmaybe
wi
thi
nthecapabi
l
iti
esofmostbusi
nessowner
s,pr
ofessi
onal
hel
pisusual
l
yagoodi
dea.
Thecompl
exi
tyofabusi
ness'
booksgoupwi
theachcl
i
entandempl
oyee,
soget
ti
ngan
assi
stont
hebookkeepi
ngcanpr
eventi
tfr
om becomi
ngar
easonnott
oexpand.
.

FounderDependence

I
fyougethi
tbyacar
,isy
ourbusi
nessst
il
lpr
oduci
ngi
ncomet
henextday
?Abusi
ness
t
hatcan'
toper
atewi
thouti
tsf
ounderi
sabusi
nesswi
thadeadl
i
ne.Manybusi
nesses
suf
ferf
rom f
ounderdependence,andt
hisdependencei
sof
tencausedbyt
hef
ounder
bei
ngunabl
etol
etgoofcer
tai
ndeci
sionsandr
esponsi
bil
i
tiesast
hebusi
nessgr
ows.
Meet
ingt
hischal
l
engei
seasyi
ntheor
y–abusi
nessownermer
elyhast
ogi
veov
er
mor
econt
rolt
othei
rempl
oyeesorpar
tner
s.I
npr
act
ice,
howev
er,
thi
sisabi
gst
umbl
i
ng
bl
ockf
orf
ounder
sbecausei
tusual
l
yinv
olv
escompr
omi
sing(
atl
easti
nit
ial
l
y)ont
he
qual
i
tyofwor
kbei
ngdoneunt
ilt
heper
sondoi
ngt
hewor
klear
nst
her
opes.

Bal
anci
ngQual
i
tyandGr
owt
h

Ev
enwhenabusi
nessi
snotf
ounderdependent
,ther
ecomesat
imewhent
hei
ssue
f
rom gr
owt
hseemst
omat
chorev
enout
wei
ght
hebenef
it
s.Whet
heraser
viceora
pr
oduct
,atsomepoi
ntabusi
nessmustsacr
if
icei
nor
dert
oscal
e–t
hismaymeannot
bei
ngabl
etoper
sonal
l
ymanageev
erycl
i
entr
elat
ionshi
pornoti
nspect
ingev
erywi
dget
.

Soci
o-cul
tur
alenv
ironment
Busi
nessor
igi
nat
esanddev
elopsi
nsoci
ety
.Ther
efor
e,t
heef
fectofv
ari
oussoci
al
f
act
orsonbusi
nessi
sbutnat
ural
.
Soci
alf
act
orsi
ncl
udecust
oms,f
ashi
ons,t
radi
ti
ons,wi
shes,hopes,l
evelofeducat
ion,
popul
ati
on,st
andar
dofl
i
vingoft
hepeopl
e,r
eli
giousv
alues,di
str
ibut
ionofi
ncome,
cor
rupt
ion,
fami
l
yset
-up,
consumer
s’consci
ousness,
etc.
Al
lsoci
alf
act
orsi
nfl
uencebusi
nessi
n somewayort
heot
her
.Forexampl
e,t
he
pr
oduct
ionoft
hingsshoul
dbeaccor
dingt
othef
ashi
on.Si
mil
arl
y,r
eli
giousv
aluesal
so
i
nfl
uencebusi
ness.Forexampl
e,somey
ear
sagot
hemanuf
act
urer
sofVanaspat
iGhee
usedt
oimpor
tani
mal
fatf
ormanuf
act
uri
ngghee.
Ont
hebasi
soft
hest
rongpubl
i
cpr
otest
s,t
hegov
ernmentcancel
l
edt
hei
mpor
tli
cense
oft
hesemanuf
act
urer
s.Si
mil
arl
y,wi
tht
henewst
hatsomepopul
arcol
ddr
inkscont
ain
pest
ici
deel
ement
s,peopl
epr
otest
edagai
nsti
tandmi
nimi
zedt
heconsumpt
ionof
t
hesecol
ddr
inks.
Someaspect
sofsoci
alenv
ironment
:
 Qual
i
tyofl
i
fe.
 I
mpor
tanceorpl
aceofwomeni
nwor
kpl
ace.

 Bi
rt
handdeat
hrat
es.

 Li
ter
acyr
ates.

 Consumpt
ionhabi
ts.

 Popul
ati
on

 Cust
omsandhabi
tsofpeopl
e.

Af
fectofsoci
alenv
ironmenton
 Consumpt
ionofmor
esandal
spr
oductt
hant
heshoes.
 Consumpt
ionofspor
tsf
oot
weart
hant
hef
ormal
one.
 Hi
ghi
ndemandf
orki
dsf
oot
wearpr
oduct
s.
 Cust
omeremphasi
smor
eonl
ooksoft
hepr
oductt
hant
hedur
abi
l
ityoft
he
pr
oduct
.
 I
ncr
easei
nconsumpt
ionoff
oot
wearpr
oduct
sperper
son.

Technol
ogi
cal
Env
ironment
Technol
ogi
calenv
ironmenti
ncl
udest
hedi
scov
eryofnewmet
hodsandi
mpl
ement
sfor
t
hepr
oduct
ionofgoodsandser
vices.Technol
ogi
calchangesmakeav
ail
abl
ebet
ter
met
hodsofpr
oduct
ionandt
hatmakest
heopt
imum useoft
her
awmat
eri
alpossi
ble.
Thet
echnol
ogi
calchangesof
ferbot
hthepossi
bil
i
tiesandt
hreat
sforbusi
ness.I
ncase
acompanyunder
standst
heset
hingswel
lint
imei
tcanachi
evei
tsobj
ect
ive,
other
wise
t
hev
eryexi
stenceoft
hecompanyi
sthr
eat
ened.
Forexampl
e,i
tbecomesat
echnol
ogi
calchangef
ort
heaut
omobi
l
eindust
ryt
opr
oduce
v
ehi
cl
eswhi
chconsumel
esspet
rol
inv
iewoft
heev
eri
ncr
easi
ngpr
icesofpet
rol
.
Onl
ythatcompanywi
l
lbeabl
etosur
viv
ewhi
chcanmov
ewi
tht
hechangest
aki
ngpl
ace
i
n t
he env
ironment
. Ther
efor
e, t
he compani
es shoul
d const
ant
ly wat
ch t
he
t
echnol
ogi
cal
changessot
hatt
heyar
eabl
etoex
ploi
tthebusi
nessoppor
tuni
ti
es.

Thef
oll
owi
ngar
etheexampl
esofi
mpactoft
echnol
ogi
cal
env
ironmentonbusi
ness:

(
i)Wi
tht
headv
entoft
elev
isi
oni
nthemar
ket
,theci
nemaandt
her
adi
oindust
rywer
e
adv
ersel
yaf
fect
ed.
(
ii
)Wi
tht
hear
ri
valoft
hePhot
ost
atmachi
nesi
nthemar
ket
,thecar
bonpaperi
ndust
ry
suf
fer
edaset
back.
(
ii
i)Wi
tht
heent
ryofsy
nthet
ict
hreadi
nthemar
ket
,thecot
toncl
othi
ndust
rywasbadl
y
af
fect
ed.
(
iv)Thedi
git
alwat
cheshav
eal
mostel
i
minat
edt
hemar
ketoft
het
radi
ti
onal
wat
ches
Ther
ecentt
echnol
ogi
cal
changesofI
ndi
anmar
ketar
e:
 Di
git
alwat
cheshav
eki
l
ledt
hebusi
nessoft
radi
ti
onal
wat
ches
 Col
orT.
V.hascl
osedt
hebusi
nessofbl
ackandwhi
teT.
V.
 Ar
ti
fi
ci
alf
abr
ichast
akent
hemar
ketoft
radi
ti
onal
cot
tonandf
abr
ics
 Shi
fti
ndemandf
rom v
acuum t
ubest
otr
ansi
stor
s
 Fr
om t
ypewr
it
ert
owor
ldpr
ocessor
s
 Phot
ocopi
ermachi
nescl
osedt
hecar
bonpaperbusi
ness
 Fr
om st
eam l
ocomot
ivesi
tsdi
esel
andel
ect
ri
cengi
nes

Someaspect
sofTechnol
ogi
cal
Env
ironment
:

1. Var
iousi
nnov
ati
onsandi
nvent
ions
2. Sci
ent
if
ici
mpr
ovement
s
3. Dev
elopment
sinI
Tsect
or
4. I
mpor
tandexpor
toft
echnol
ogy
5. Technol
ogi
cal
adv
ancesi
ncomput
ers
Af
fectofTechnol
ogi
cal
env
ironmenton

 Use ofmachi
ne made f
abr
icat
ion ofshoes and sandal
srat
hert
han t
he
handmade
 Useofpr
int
ingmachi
nesi
nor
dert
opr
intonREXI
NESandPUasear
li
erpr
int
ing
wasdonewi
tht
hehands
 Useofnewt
ypemachi
ner
iesf
orsol
emaki
ngoff
oot
wearpr
oduct
s
 Mi
xedt
ypeofpr
oduct
ioni
sadapt
ivet
hant
hel
abourt
echni
queofpr
oduct
ion
 Useofnewt
echnoi
nor
dert
ocompet
einmar
ket

Legal
Env
ironment

Legalenv
ironmentconst
it
utes t
he l
aws and v
ari
ous l
egi
slat
ions passed i
nthe
par
li
ament
.The busi
nessman cannotov
erl
ook t
he l
egi
slat
ion because he has t
o
per
for
m al
lhi
sbusi
nesst
ransact
ionswi
thi
nthef
ramewor
koft
hesel
egi
slat
ionsorl
egal
env
ironment
ManyAct
sar
epassedf
rom t
imet
oti
mei
nor
dert
ocont
rolandr
egul
atebusi
ness
act
ivi
ti
es.
Thesum t
otalofal
ltheseAct
scr
eat
esl
egalr
egul
ator
yenv
ironment
.Act
sar
emossy
passedt
oregul
atesuchbusi
nessact
ivi
ti
esassal
e-pur
chase,
indust
ri
aldi
sput
es,
labour
,
r
egul
ati
ngpar
tner
shi
pbusi
ness,
regul
ati
ngcompanybusi
ness,
for
eignexchange,
etc.

I
nIndi
a,t
hef
oll
owi
ngAct
shav
ebeenpassedi
nconnect
ionwi
tht
heabov
ebusi
ness
act
ivi
ti
es:

(
i) Sal
eofGoodsAct
(
ii
) I
ndust
ri
alDi
sput
esAct
(
ii
i) Mi
nimum WagesAct
(
iv) I
ndi
anPar
tner
shi
pAct
(
v) Compani
esAct
(
vi) Tr
ademar
kAct
(
vii
) Essent
ial
Commodi
ti
esAct
(
vii
i
) ConsumerPr
otect
ionAct
(
ix) St
andar
dsofWei
ght
sandMeasur
esAct
.
Al
ltheseAct
sinf
luencebusi
nessdeci
sions.

Thef
oll
owi
ngar
etheexampl
esoft
hei
mpactoft
hel
egalr
egul
ator
yenv
ironmenton
busi
ness:
(
i)Byr
emov
ingcont
rolont
hecapi
talmar
ket
,ahugeamountofcapi
talwascol
l
ect
edby
i
ssui
ngv
ari
ousnewi
ssuesi
nthepr
imar
ymar
ket
.
(
ii
)Wi
thi
ntr
oduct
ion ofr
elaxat
ion i
n For
eign Di
rectI
nvest
ment(
FDI
)and For
eign
Exchange,manymul
ti
nat
ionalcompani
esent
eredt
heI
ndi
anmar
ket
.Consequent
ly,
t
her
ehasbeenat
remendousi
ncr
easei
nthef
orei
gnexchanger
eser
vesi
nthecount
ry

Someaspect
sofl
egal
env
ironmentar
e:

 Var
iousl
awsandl
egi
slat
iveact
s.
 Legal
pol
i
ciesr
elat
edt
oli
censi
ng
 Legal
pol
i
ciesr
elat
edt
ofor
eignt
rade
 St
atut
orywar
ningsessent
ial
tobepr
int
edonl
abel
 Lawst
okeepacheckonadv
ert
isement
s
 For
eignexchanger
egul
ati
onandmanagementact

TheManuf
act
uri
ngPr
ocess

Shoesar
eoneoft
hosepr
oduct
sthatweweardai
l
yandi
sanecessi
ty.Al
thought
hisi
s
anecessi
ty,nooneev
erseemst
oev
erwonderhowt
heshoest
hatev
ery
onewear
sar
e
pr
oduced.Wel
lint
hemanuf
act
uri
ngpr
ocesst
her
ear
emanyst
eps,
par
tsofashoeand
aswel
lasmat
eri
als.
 Ther
ear
emanydi
ff
erentmat
eri
alsf
orshoes.Ther
ear
ecer
tai
n
onesf
orspor
tshoes,dr
essshoes,boot
s,sandal
sandmor
e.Somemat
eri
alsar
eused
t
omaket
hef
oot
wearcomf
ort
abl
e,t
obeabl
etopr
otectf
rom i
njur
ies,
ort
omakei
tlook
v
eryexqui
sit
e. 

Somemat
eri
alsi
ncl
ude:

 Fabr
ic
 Pl
ast
ic
 Rubber
 Foams
 Met
all
i
c
 Wood
 Leat
her

Shoemaki
ngcanori
sconsi
der
edat
radi
ti
onalhandi
craf
tpr
ofessi
on.Ther
ear
emany
par
tst
oashoesuchast
hesol
e,i
nsol
e,out
sol
e,mi
dsol
e,heel
,andv
amporupper
. 
Mor
e
t
han 200 oper
ati
onsar
erequi
red f
ormaki
ng a pai
rofshoes.Howev
er,wi
tht
he
dev
elopmentofmoder
nmachi
nes,apai
rofshoescanbemadei
nver
ylesst
imeas
eachst
epi
nit
smanuf
act
uri
ngi
sgener
all
yper
for
medbyasepar
atef
oot
wearmaki
ng
machi
ne.
  
Ther
e ar
e al
so manydepar
tment
swhen i
tcomest
o manuf
act
uri
ng t
he
pr
oductsuchascl
i
ckorcut
ti
ngdepar
tmentt
hatdeal
swi
tht
het
oppar
toft
heshoeand
usel
eat
herorot
hermat
eri
alst
ocutoutv
ari
ousshapest
hatwi
l
lev
ent
ual
l
yfort
heupper
.
I
tis 
thef
ir
stpr
ocessi
nthemaki
ngofapai
rofshoes.Leat
heri
susual
l
yusedi
nthi
s
depar
tmentwher
ethel
eat
heri
scar
eful
l
ysel
ect
edandt
hecl
i
ckerwi
l
lpr
oceedt
ocutt
he
shape oft
he upper
,byhand,f
rom t
he hi
gh qual
i
tyhi
des.Thi
sis a ski
l
led and
speci
ali
st 
j
obbecauseanyf
lawsi
nthel
eat
hermustbewor
kedar
ound,
andasl
eat
heri
s
v
eryexpensi
veanywast
emustal
sobekeptt
oami
nimum.Af
tert
hispr
ocess 
ther
eis
t
hecl
osi
ngormachi
ningdepar
tmentwhi
chdeal
swi
thsewi
ngal
lthecomponent
s
t
oget
herandaswel
laddi
ngt
heey
elet
swher
etheshoel
aceswoul
dcomef
rom.Nexti
s
t
hel
ast
ingandmaki
ngdepar
tmentwhi
chdeal
swi
thmol
dingt
hef
ini
shedupper
sint
oa
shapeoft
hef
ootandaswel
lasaddi
ngt
hepl
ast
icshapest
hatst
imul
atest
hef
oot
shape.I
nthatdepar
tmentt
heyaddal
lthesol
est
oitaswel
l
.Thent
her
eist
hef
ini
shi
ng
depar
tmentwhi
chmai
nlydeal
swi
tht
ri
mmi
ngheel
s,pol
i
shi
ngandbuf
fi
ngsol
es,
maki
ng
sur
ethatt
heedgei
swaxed,
wat
erpr
oof
,st
ainedandpol
i
shed,
addi
ngf
ini
shi
ngt
ouches
andt
henf
inal
l
ymaki
ngi
tfi
nished.
Themostcommonmet
hodsofmanuf
act
uri
ngat
hlet
icshoeout
sol
esar
egi
venandhow
eachmet
hodcani
nfl
uencet
heexami
nat
ionoff
oot
weari
mpr
essi
onev
idence.Sev
eral
pr
ocessesf
ormanuf
act
uri
ngat
hlet
icshoeout
sol
esar
edescr
ibed.Si
gni
fi
cantf
act
orsof
each pr
ocess t
hatar
erel
evantt
othe exami
nat
ion off
oot
weari
mpr
essi
ons ar
e
expl
ained. Some manuf
act
uri
ng pr
ocesses r
esul
t i
n di
sti
ngui
shi
ng r
andom
char
act
eri
sti
cswhi
chcanassi
sti
nthei
dent
if
icat
ionofashoesol
e,ev
enwhennew.
These char
act
eri
sti
cs,t
oget
herwi
tht
he t
radi
ti
onal
l
y obser
ved wearpat
ter
ns and
r
andom cut
sont
heshoeout
sol
es,enabl
etheexami
nerast
rongerbasi
sforexper
t
opi
nion.

Foot
wear
 canbedef
inedasgar
ment
sthatar
ewor
nont
hef
eet
.Ther
emai
npur
posei
s
pr
otect
ingone'
sfeet
.Ofl
ate,
foot
wearhasbecomeani
mpor
tantcomponentof
 f
ashi
on
accessor
ies.Al
though,t
hei
rbasi
cpur
poser
emai
nst
hatofpr
otect
ion,ador
nmentor
def
ini
ngst
ylest
atementhasbecomet
hei
raddi
ti
onalandasi
gni
fi
cantf
unct
ion.Ther
e
ar
e many t
ypes off
oot
wear
- 
shoes,
 
boot
s, 
sandal
s,sl
i
pper
s et
c.They ar
efur
ther
cat
egor
izedi
ntomanymor
ety
pes.

Shoes and Shoe maki

ng

Shoes ar
e f
urt
herdi
vi
ded i
nto many cat
egor
ies
such as at
hlet
icshoesal
soknownas 
sneaker
s,
gal
oshes,hi
gh heel
s,St
il
ett
oheel
s,ki
tt
enheel
s,l
ace-
upshoes,
high- Tops,l
oaf
ers,Mar
y Janes,pl
atf
orm
shoes,school shoesandmanyot
her
s.Shoemaki
ng
can be consi
der
ed a t
radi
ti
onal handi
craf
t
pr
ofessi
on. Howev
er,
nowi
thasbeenl
argel
ytaken
ov
erbyi
ndust
ri
almanuf
act
ureoff
oot
wear
.Av
ari
etyofmat
eri
alsar
eusedf
ormaki
ng
shoes-l
eat
her
 f
abr
ics,pl
ast
ic,r
ubber
, 
fabr
ics,wood,
 
jut
efabr
ics,andmet
al.Mor
ethan
200oper
ati
onsar
erequi
redf
ormaki
ngapai
rofshoes.Howev
er,
wit
hthedev
elopment
ofmoder
nmachi
nes,apai
rofshoescanbemadei
nver
ylesst
imeaseachst
epi
nit
s
manuf
act
uri
ngi
sgener
all
yper
for
medbyasepar
ate 
foot
wearmaki
ngmachi
ne.
 

Par
tsofaShoe
Ashoeconsi
stsofsol
e,i
nsol
e,out
sol
e,mi
dsol
e,heel
,andv
amp(
upper
).Theyar
ethe
basi
cpar
tsofashoet
hatar
emost
lyi
ncl
udedi
nal
lty
pesof
fshoes.Ot
herpar
tsofa
shoear
eli
ning,t
ongue,quar
ter
,wel
tandbackst
ay.Thesepar
tsar
eincl
udedaspert
he
desi
gn of t
he shoes.

Sol
e: 
Theext
eri
or bot
tom par
tofa shoe i
sthe
sol
e.

I
nsol
e: 
Thei
nter
iorbot
tom ofashoe,whi
chsi
tsdi
rect
lybeneat
hthef
oot
,isi
tsi
nsol
e.
Theycanber
emov
abl
eandr
epl
aceabl
etoo.I
nsomeoft
heshoes,ext
rai
nsol
esar
e
of
tenaddedf
orcomf
ort
,heal
thorot
herr
easons,
suchast
ocont
rol
theshape,
moi
stur
e,
orsmel
loft
heshoe.

Out
sol
e: 
Iti
sthatl
ayeroft
heshoet
hati
sindi
rectcont
actwi
tht
hegr
ound.Thesecan
bemadeofv
ari
ousmat
eri
alsl
i
kel
eat
her
,nat
uralorsy
nthet
icr
ubberet
c.Of
tent
heheel
oft
hesol
eismadef
rom r
ubberf
ordur
abi
l
ityandt
ract
ionandt
hef
ronti
smadeof
l
eat
herf
orst
yle.
 Speci
alpur
poseshoes 
oft
enhav
eref
inedmodi
fi
cat
ions,f
orexampl
e,
at
hlet
ic cl
eat
s hav
e spi
kes embedded i
nthe out
sol
eto gr
ipt
he gr
ound,dance
shoes 
hav
emuchsof
terorhar
dersol
es.
 

Mi
dsol
e: 
Thel
ayert
hatl
i
esbet
weent
heout
sol
eandt
hei
nsol
eforshockabsor
pti
oni
s
t
hemi
dsol
e.Somespeci
alshoes,l
i
ker
unni
ngshoeshav
eot
hermat
eri
alsf
orshock
absor
pti
on,t
hatusual
l
yli
ebeneat
htheheelwher
eoneput
sthemostpr
essur
edown.
Mat
eri
alsusedf
ormi
dsol
esdependont
heshoemanuf
act
urer
s.Someshoescanbe
madeev
enwi
thoutami
dsol
e. 

Heel
:
 Ther
earpar
tatt
hebot
tom ofashoei
stheheel
.Itsuppor
tst
heheel
soft
hef
eet
.
Heel
sofashoear
eof
tenmadef
rom t
hesamemat
eri
alast
hesol
eoft
heshoe.I
tcan
behi
ghf
orf
ashi
onpur
poseorf
ormaki
ngaper
sonl
ookt
all
er.Theyar
eal
sof
latf
or
comf
ortandpr
act
ical
use.
 

Vamp,
orupper
: 
Theupperpar
tofashoet
hathel
psi
nhol
dingt
heshoeont
othef
ooti
s
t
hev
amporsi
mpl
ycal
l
edt
heupper
.Thi
spar
tisof
tenembel
l
ishedorgi
vendi
ff
erent
st
ylest
omakeshoesat
tract
ive.
 

ShoeMaki
ngPr
ocess

Af
oot
wearcompanyhasmai
nlyf
ourdepar
tment
sinwhi
chapr
ogr
essi
ver
out
eis
f
oll
owed f
orpr
oduci
ng f
ini
shed shoes.Thesear
e-Cl
i
cki
ng orCut
ti
ng Depar
tment
,
Cl
osi
ngorMachi
ningDepar
tment
,Last
ing&Maki
ngDepar
tment
,Fi
nishi
ngDepar
tment
andt
heShoeRoom.

Cl
i
cki
ngorCut
ti
ng Depar
tment
I
nthi
sdepar
tment
,thet
oppar
toft
heshoeort
he"
upper
"ismade.Thecl
i
cki
ng
oper
ati
vei
sgi
venski
nsofl
eat
her
,most
lycowl
eat
herbutnotr
est
ri
ctedt
othi
sty
peof
l
eat
her
.Usi
ngmet
alst
ri
pkni
ves,t
hewor
kercut
soutpi
ecesofv
ari
ousshapest
hatwi
l
l
t
aket
hef
orm of"
upper
s".Thi
soper
ati
onneedsahi
ghl
evelofski
l
last
heexpensi
ve
l
eat
herhast
obewast
edatt
hemi
nimum l
evelpossi
ble.Leat
hermayal
sohav
evar
ious
def
ect
sont
hesur
facesuchasbar
bedwi
rescr
atcheswhi
chneedst
obeav
oided,so
t
hatt
heyar
enotusedf
ort
heupper
s.

Cl
osi
ngorMachi
ningDepar
tment

Her
ethecomponent pi
ecesar
esewnt
oget
herby
hi
ghl
y ski
l
led machi
nist
ssoast
opr
oduce
t
he compl
eted upper
.Thewor
kisdi
vi
dedi
n
st
ages.I
near
lyst
ages,t
hepi
ecesar
esewnt
oget
heront
hef
latmachi
ne.I
nthel
ater
st
ages,when t
he upperi
sno l
ongerf
latand hasbecome t
hree-
dimensi
onal
,the
machi
necal
l
edpostmachi
nei
sused.Thesewi
ngsur
faceoft
hemachi
nei
sel
evat
edon
apostt
o enabl
etheoper
ati
vet
o sew t
het
hreedi
mensi
onalupper
.Var
iousedge
t
reat
ment
sar
eal
sodoneont
othel
eat
herf
orgi
vi
nganat
tr
act
ivel
ookt
othef
ini
shed
upper
.Att
hisst
ageonl
y,t
heey
elet
sar
eal
soi
nser
tedi
nor
dert
oaccommodat
ethe
l
acesi
nthef
ini
shedshoes.
Last
ing&Maki
ngDepar
tment

Thecompl
etedupper
sar
emol
dedi
ntoashapeoff
ootwi
tht
hehel
pofa"
Last
".Lasti
s
apl
ast
icshapet
hatsi
mul
atest
hef
ootshape.I
tisl
aterr
emov
edf
rom t
hef
ini
shedshoe
t
obeusedf
urt
heri
nmaki
ngot
hershoes.Fi
rst
ly,ani
nsol
etot
hebot
tom oft
hel
asti
s
at
tached.I
tisonl
yat
empor
aryat
tachment
.Somet
imes,
most
lywhenwel
tedshoesar
e
manuf
act
ured,t
hei
nsol
ehasar
ibat
tachedt
oit
sunderedge.Theupperi
sst
ret
ched
andmol
dedov
ert
hel
astandat
tachedt
othei
nsol
eri
b.Af
tert
hepr
ocedur
ecompl
etes,
a"
last
edshoe"i
sobt
ained.Now,
thewel
t-ast
ri
pofl
eat
herorpl
ast
ic-i
ssewnont
othe
shoet
hrought
her
ib.Theupperandal
lthesur
plusmat
eri
ali
str
immedof
ftheseam.
Thesol
eist
henat
tachedt
othewel
tandbot
har
est
it
chedt
oget
her
.Theheeli
sthen
at
tachedwhi
chcompl
etest
he"
maki
ng"oft
heshoe.
 

Thatwast
hepr
ocessf
orheel
edshoes.Whenaf
latshoei
sint
hemaki
ng,t
her
ear
e
consi
der
abl
yfeweroper
ati
ons.Thei
nsol
esi
nthi
scasei
sfl
atandwhent
heupper
sar
e
'
l
ast
ed'
,t
heyar
egl
ueddownt
othesur
faceoft
hei
nnersi
deoft
hei
nsol
e.Thepar
toft
he
upper
,thati
sgl
ueddown,i
sthenr
oughedwi
thawi
rebr
usht
otakeof
fthesmoot
h
f
ini
shoft
hel
eat
her
.Thi
sisdonebecauser
oughsur
faceabsor
bsgl
uet
ogi
veast
ronger
bond.Thesol
esar
eusual
l
ycut
,fi
nishedandpr
epar
edasasepar
atecomponentsot
hat
whent
heyar
egl
uedt
othel
ast
edupper
,ther
esul
tisacompl
eteandf
ini
shedshoe.
Sol
escan al
so bepr
e-mol
ded asa separ
atecomponentoutofv
ari
oussy
nthet
ic
mat
eri
alsandagai
ngl
uedt
othel
ast
eduppert
ocompl
etet
heshoe.

Fi
nishi
ngDepar
tmentandt
heShoeRoom

Thef
ini
shi
ngofashoedependsont
hemat
eri
alusedf
ormaki
ngi
t.I
fmadeofl
eat
her
,
t
hesol
eedgeandheelar
etr
immedandbuf
fedt
ogi
veasmoot
hfi
nish.Togi
vet
hem an
at
tr
act
ivef
ini
shandt
oensur
ethatt
heedgei
swat
erpr
oof
,theyar
est
ained,pol
i
shed
andwaxed.Thebot
tom oft
hesol
eisof
tenl
i
ght
lybuf
fed,st
ainedandpol
i
shedand
di
ff
erentt
ypesofpat
ter
nsar
emar
kedont
hesur
facet
ogi
vei
tacr
aftf
ini
shedl
ook.A
"
fi
nishedshoe"hasnowbeenmade.
Forshoer
oom oper
ati
on,
ani
nter
nalsocki
sfi
tt
edi
ntoshoewhi
chcanbeofanyl
engt
h-
f
ull
,hal
forquar
ter
.Theyusual
l
yhav
ethemanuf
act
urer
sdet
ail
sorabr
andname
wher
everappl
i
cabl
e.Dependi
ngont
hemat
eri
alsusedf
ort
heupper
s,t
heyar
ethen
cl
eaned,pol
i
shedandspr
ayed.Lacesandanyt
agst
hatmi
ghthav
etobeat
tachedt
o
t
heshoes,suchasshoecar
einst
ruct
ions,ar
eal
soat
tached.Theshoes,atl
ast
,get
packagedi
nboxes.

RAW MATERI
ALS
Runni
ngshoesar
emadef
rom acombi
nat
ionofmat
eri
als.Thesol
ehast
hreel
ayer
s:
i
nsol
e,mi
dsol
e,andout
sol
e.Thei
nsol
eisat
hinl
ayerofman-
made 
ethy
lene 
vi
nyl
acet
ate(
EVA)
.The component
s oft
he mi
dsol
e,whi
ch pr
ovi
des t
he bul
k oft
he
cushi
oni
ng, wi
l
l v
ary among manuf
act
urer
s. Gener
all
y i
t consi
sts
of
 pol
yur
ethane 
sur
roundi
ng anot
her mat
eri
al such as gel or l
i
qui
d si
l
icone,
or
 pol
yur
ethanef
oam 
giv
enaspeci
albr
andnamebyt
hemanuf
act
urer
.Insomecases
t
hepol
yur
ethanemaysur
roundcapsul
esofcompr
essedai
r.Out
sol
esar
eusual
l
ymade
ofcar
bonr
ubber
,whi
chi
shar
d,orbl
ownr
ubber
,asof
tert
ype,al
thoughmanuf
act
urer
s
useanassor
tmentofmat
eri
alst
opr
oducedi
ff
erentt
ext
uresont
heout
sol
e.

Ther
estoft
hecov
eri
ngi
susual
l
yasy
nthet
icmat
eri
alsuchasar
ti
fi
cial
suedeorany
lon
weav
ewi
thpl
ast
icsl
absorboar
dssuppor
ti
ngt
heshape.Ther
emaybeal
eat
herov
erl
ay
orny
lonov
erl
aywi
thl
eat
herat
tachment
s.Cl
othi
susual
l
yli
mit
edt
othel
acesf
it
ted
t
hroughpl
ast
icey
elet
s,andnai
l
shav
egi
venwayt
oanadhesi
veknownascement
l
ast
ingt
hatbondst
hev
ari
ouscomponent
stoget
her
.

DESI
NG

Thel
ast15y
ear
shav
ewi
tnessedgr
eatchangesi
nthedesi
gnoft
her
unni
ngshoe,
whi
chnowcomesi
nal
lst
ylesandcol
ors.Cont
empor
aryshoedesi
gner
sfocusont
he
anat
omyandt
hemov
ementoft
hef
oot
.Usi
ngv
ideocamer
asandcomput
ers,t
hey
anal
yzesuchf
act
orsasl
i
mbmov
ement
,theef
fectofdi
ff
erentt
err
ainsoni
mpact
,and
f
ootposi
ti
on on i
mpact
.Runner
s ar
elabel
ed 
predat
ors 
i
fthei
rfeetr
olli
nwar
d
or
 separ
ator
s i
fthei
rfeetr
oll
tot
heout
side.Al
ongwi
thpr
essur
epoi
nts,
 
fri
cti
on 
pat
ter
ns,
andf
orceofi
mpact
,thi
sinf
ormat
ioni
sfedi
ntocomput
erswhi
chcal
cul
atehowbestt
o
accommodat
ethesecondi
ti
ons.Desi
gner
snextt
estanddev
eloppr
otot
ypesbasedon
t
hei
rst
udi
esofj
ogger
sandpr
ofessi
onalr
unner
s,r
eady
ingaf
inaldesi
gnf
ormass
pr
oduct
ion.

Ar
unni
ngshoemayhav
easmanyas20par
tst
oit
,andt
hecomponent
sli
stedbel
ow
ar
ethemostbasi
c.Theshoehast
womai
npar
ts:t
heupper
,whi
chcov
erst
het
opand
si
desoft
hef
oot
,andt
hebot
tom par
t,whi
chmakescont
actwi
tht
hesur
face.

Aswewor
kourwayar
oundt
heshoecl
ockwi
se,
star
ti
ngatt
hef
rontont
heupperpar
tis
t
hef
eat
herl
i
ne,
whi
chf
ormst
heedgewher
ethemudguar
d(ort
oeguar
d)t
ipmeet
sthe
bot
tom oft
heshoe.Nexti
sthev
amp,
usual
l
yasi
ngl
epi
eceofmat
eri
alt
hatgi
vesshape
t
otheshoeandf
ormst
het
oebox.Thev
ampal
sohasat
tachment
ssuchast
het
hroat
,
whi
chcont
ainst
heey
est
ayandl
aci
ngsect
ion.Beneat
hthel
aci
ngsect
ioni
sthet
ongue,
pr
otect
ingt
hef
ootf
rom di
rectcont
actwi
tht
hel
aces.Al
soat
tachedt
othev
ampal
ong
t
hesi
desoft
heshoear
erei
nfor
cement
s.I
fsewnont
heout
sideoft
heshoet
hese
r
einf
orcement
s ar
e cal
l
ed a 
saddl
e;
 i
fsewn on t
he i
nsi
de,t
heyar
e cal
l
ed an 
arch
bandage.
 Fur
thert
owar
ds t
he back oft
he shoe i
sthe col
l
ar,whi
ch usual
l
y has
an 
Achi
l
lest
endon 
prot
ect
oratt
het
opbackoft
heshoe.Thef
oxi
ngshapest
her
earend
oft
heshoe.Under
neat
hiti
sapl
ast
iccupt
hatsuppor
tst
heheel
,theheel
count
er.

Thebot
tom hast
hreemai
npar
ts,out
sol
e,mi
dsol
e,andwedge.Theout
sol
epr
ovi
des
t
ract
ionandabsor
bsshock.Themi
dsol
eisdesi
gnedspeci
fi
cal
l
yforshockabsor
pti
on,
andt
hewedgesuppor
tst
heheel
.Locat
edi
nsi
det
heshoe,t
hei
nsol
eal
socont
ainst
he
ar
chsuppor
t(somet
imescal
l
edt
he 
archcooki
e).
THEMANUFACTURI
NGPROCESS

Shoemaki
ng i
sal
abor
-i
ntensi
ve pr
ocess,and t
he costofpr
oduci
ng t
he many
component
soft
her
unni
ngshoer
efl
ect
stheski
l
ledl
abornecessar
y.Eachphaseof
pr
oduct
ionr
equi
respr
eci
sionandski
l
ls,
andt
aki
ngshor
tcut
stor
educecost
scanr
esul
t
i
nani
nfer
iorshoe.Somer
unni
ngshoes(
knownas 
sli
plast
edshoes)
 hav
enoi
nsol
e
boar
d.I
nst
ead,t
hesi
ngl
e-l
ayerupperi
swr
appedar
oundbot
hthet
opandt
hebot
tom
por
ti
onsoft
hef
oot
.Mostr
unni
ngshoes,howev
er,consi
stofani
nsol
eboar
dthati
s
cement
edt
otheupperwi
thcement
.Thi
ssect
ionwi
l
lfocusoncement
-l
ast
edshoes.

Thef
ir
stst
epi
nrunni
ngshoemanuf
act
urei
nvol
vesdi
ecut
ti
ngt
heshoepar
tsi
ncooki
e
cut
terf
ashi
on.Next
,thepi
ecest
hatwi
l
lfor
mtheupperpar
toft
heshoear
est
it
chedor
cement
edt
oget
her
.Att
hispoi
nt,
theupperl
ooksnotl
i
keashoebutl
i
kear
oundhat
;the
ext
ramat
eri
ali
scal
l
edt
he 
l
ast
ingmar
gin.
 Af
tert
heupperi
sheat
edandf
it
tedar
ounda
pl
ast
icmol
dcal
l
eda 
l
ast
, 
thei
nsol
e,mi
dsol
e,andout
sol
ear
ecement
edt
otheupper
.
Shi
ppi
ngandst
ampi
ngt
hef
abr
ic

 1Fi
rst
,pr
epar
edr
oll
sofsy
nthet
icmat
eri
alandr
oll
sofdy
ed,
spl
i
t,andsuede
l
eat
her(
usedaspar
toft
hef
oxi
ng)ar
esentt
othef
act
ory
.

 2Next
,di
emachi
nesst
ampt
heshoeshapes,
whi
char
ethencutouti
ncooki
e
cut
terf
ashi
onwi
thv
ari
ousmar
kingst
ogui
det
her
estoft
heassembl
y.Af
ter
bei
ngbundl
edandl
abel
ed,
thesepi
ecesar
esentt
oanot
herpar
toft
hef
act
ory
wher
ethey
'l
lbest
it
ched.

Assembl
i
ngt
heupperandt
hei
nsol
e

 3Thepi
ecest
hatwi
l
lfor
mtheupperpar
toft
heshoear
est
it
chedorcement
ed
t
oget
herandt
hel
acehol
espunchedout
.Thesepi
ecesi
ncl
udet
hef
eat
her
li
ne,
t
hev
amp,
themudguar
d,t
het
hroat(
wit
hey
est
ayandl
aci
ngsect
ion)
,thet
ongue,
r
einf
orcement
ssuchast
hesaddl
eorar
chbandage,t
hecol
l
ar(
wit
hAchi
l
les
t
endonpr
otect
or)
,thef
oxi
ng,andt
hel
ogo.Att
hispoi
nt,t
heupperl
ooksnotl
i
ke
ashoebutl
i
kear
oundhat
,becauset
her
eisext
ramat
eri
al—cal
l
edt
he 
l
ast
ing
mar
gin 
—thatwi
l
lbef
oldedunder
neat
htheshoewheni
tget
scement
edt
othe
sol
e.
 4Next
,thei
nsol
eisst
it
chedt
othesi
desoft
heupper
.St
if
feni
ngagent
sar
ethen
addedt
otheheel
regi
onandt
oebox,
andani
nsol
eboar
disi
nser
ted.
Compl
etedr
unni
ngshoesar
equal
i
tyt
est
edusi
ngpr
ocedur
esdev
elopedbyt
heShoe
andAl
l
iedTr
adesResear
chAssoci
ati
on.Def
ect
sthatar
echeckedf
ori
ncl
udepoor
l
ast
ing,
incompl
etecementbondi
ng,
andst
it
chi
nger
ror
s.

At
tachi
ngt
heupperandbot
tom 
par
ts

 5Thecompl
etedupperi
sheat
edandf
it
tedar
oundal
ast
,apl
ast
icmol
dthat
f
ormst
hef
inalshapeoft
heshoe.Anaut
omat
icl
ast
ingmachi
net
henpul
l
sthe
upperdownov
ert
hel
ast
.Fi
nal
l
y,acementnozzl
eappl
i
escementbet
weent
he
upperandi
nsol
eboar
d,andt
hemachi
nepr
essest
het
wopi
ecest
oget
hert
o
bondt
hem.Theuppernowhast
heexactshapeoft
hef
ini
shedshoe.
 6Pr
e-st
ampedandcut
outf
ormsoft
hemi
dsol
eandout
sol
eorwedgear
elay
ered
andcement
edt
otheupper
.Fi
rst
,theout
sol
eandmi
dsol
ear
eal
i
gnedand
bondedt
oget
her
.Next
,theout
sol
eandmi
dsol
ear
eal
i
gnedwi
tht
heupperand
pl
acedov
eraheat
ert
oreact
ivat
ethecement
.Ast
hecementcool
s,t
heupper
andbot
tom ar
ejoi
ned.
 7Theshoei
sremov
edf
rom t
hel
astandi
nspect
ed.Anyexcesscementi
s
scr
apedof
f.
Qual
i
tycont
rol
Manuf
act
urer
scant
estt
hei
rmat
eri
alsusi
ngpr
ocedur
esdev
elopedbyt
heShoeand
Al
l
iedTr
adesResear
chAssoci
ati
on(
SATRA)
,whi
chpr
ovi
desdev
icesdesi
gnedt
otest
eachel
ementoft
heshoe.Oncet
heshoei
scompl
ete,ani
nspect
oratt
hef
act
ory
checksf
ordef
ect
ssuchaspoorl
ast
ing,i
ncompl
etecementbondi
ng,andst
it
chi
ng
er
ror
s.Becauser
unni
ngcancauseanumberofi
njur
iest
othef
ootaswel
last
otendons
andl
i
gament
sint
hel
eg,anot
hert
esti
scur
rent
lybei
ngdev
elopedt
oev
aluat
eashoe'
s
shockabsor
pti
onpr
oper
ti
es.

THEFUTURE

I
nthenearf
utur
e,exper
tspr
edi
ctr
efi
nement
sofcur
rentdesi
gnsandmanuf
act
uri
ng
pr
ocessesr
athert
hanr
adi
calbr
eakt
hroughs.Wi
thi
nthenextt
eny
ear
s,at
hlet
icshoe
si
zi
ng shoul
d becomest
andar
d wor
ldwi
de.Desi
gner
swi
l
lcont
inuet
o seekl
i
ght
er
wei
ghtmat
eri
alst
hatpr
ovi
debet
tersuppor
tandst
abi
l
itywi
thf
urt
heruseofgel
sandai
r
sy
stems.
 El
ect
roni
c component
s wi
l
lal
so be bui
l
tint
othe r
unni
ng shoe,so t
hat
i
nfor
mat
ionaboutphy
sicalchar
act
eri
sti
csanddev
elopment
scanbemeasur
edwi
tha
mi
crochi
pandl
aterdownl
oadedi
ntoacomput
er.Anot
herf
eat
uret
hati
sal
ready
begi
nni
ngt
o appeari
sthebat
ter
y-oper
atedl
i
ght
ingsy
stemst
o accommodat
ethe
ev
eni
ngj
ogger
.Asconsumer
scont
inuet
ospendmi
l
li
onsf
ort
hecomf
ortofr
unni
ng
shoes,
manuf
act
urer
soft
heor
dinar
yshoewi
l
lcont
inuet
ocompet
efort
hesedol
l
arsby
appl
yi
ngr
unni
ngshoedesi
gnpr
inci
plest
oev
ery
dayshoes
I
NTRODUCTI
ONOFCUSTOMERRELATI
ONSHI
PMANAGEMENT

The bi
ggestmanagementchal
l
enge i
nthe new mi
l
lenni
um ofl
i
ber
ali
zat
ion and
gl
obal
i
zat
ionf
orabusi
nessi
stoser
veandmai
ntai
ngoodr
elat
ionshi
pwi
tht
heki
ng
– 
thecust
omer
. 
Int
hepastpr
oducer
stookt
hei
rcust
omer
sforgr
ant
ed,
becauseatt
hat
t
imet
hecust
omer
swer
enotdemandi
ng norhad al
ter
nat
ivesour
ceofsuppl
yor
suppl
i
ers.Butt
oday t
her
eisar
adi
calt
ransf
ormat
ion.The changi
ng busi
ness
env
ironmenti
schar
act
eri
zedbyeconomi
cli
ber
ali
zat
ion,i
ncr
easi
ngcompet
it
ion,hi
gh
consumerchoi
ce,demandi
ng cust
omer
,mor
e emphasi
s on qual
i
ty and v
alue of
pur
chaseet
c.

Al
lthesechangeshav
emadet
oday
’spr
oducershi
ftf
rom t
radi
ti
onalmar
ket
ingt
o
moder
nmar
ket
ing.Moder
nmar
ket
ingcal
l
sformor
ethandev
elopi
ngapr
oduct
,pr
ici
ng
i
t,pr
omot
ingi
tandmaki
ngi
taccessi
blet
otar
getcust
omer
.Itdemandsbui
l
dingt
rust
,a
bi
ndi
ngf
orceandv
alueaddedr
elat
ionshi
pwi
tht
hecust
omer
s.

Thepr
ocessofdev
elopi
ngacooper
ati
veandcol
l
abor
ati
ver
elat
ionshi
pbet
weent
he
buy
erand sel
l
eri
scal
l
ed cust
omerr
elat
ionshi
p managementshor
tl
ycal
l
ed CRM.
Accor
dingt
oAshokadut
theadofCi
tiBank“
thei
deaofCRM i
stoknowt
hei
ndi
vi
dual
cust
omeri
nti
mat
ely
,sot
hatt
hecompanyhasacust
omi
zedpr
oductr
eadyf
orhi
m ev
en
bef
oreheasksf
ori
t.
”

Cust
omer
-r
elat
ionshi
p management
 (
CRM)i
sanappr
oacht
o manageacompany
's
i
nter
act
ionwi
thcur
rentandpot
ent
ial
 
cust
omer
s.I
tuses 
dat
aanal
ysi
s aboutcust
omer
s'
hi
stor
ywi
thacompanyt
oimpr
ovebusi
nessr
elat
ionshi
pswi
thcust
omer
s,speci
fi
cal
l
y
f
ocusi
ngon 
cust
omerr
etent
ion 
andul
ti
mat
elydr
ivi
ng 
sal
es 
growt
h.

One i
mpor
tant aspect of t
he CRM appr
oach i
sthe sy
stems of CRM t
hat
compi
l
e dat
a f
rom ar
angeofdi
ff
erentcommuni
cat
ionchannel
s,i
ncl
udi
ngacompany
's
websi
te,
tel
ephone,
emai
l
,li
vechat
,mar
ket
ingmat
eri
alsandmor
erecent
ly,
soci
almedi
a.
Thr
ought
heCRM appr
oachandt
hesy
stemsusedt
ofaci
l
itat
eit
,busi
nessesl
ear
nmor
e
aboutt
hei
rtar
getaudi
encesandhowt
obestcat
ert
othei
rneeds.
Sof
twar
ehi
stor
y

Theconceptofcust
omer
-r
elat
ionshi
pmanagementst
art
edi
ntheear
ly1970s,when
cust
omersat
isf
act
ionwasev
aluat
edusi
ngannualsur
vey
sorbyf
ront
-l
ineaski
ng.
 At
t
hatt
ime,busi
nesseshadt
orel
yon 
standal
onemai
nfr
amesy
stems 
toaut
omat
esal
es,
butt
heext
entoft
echnol
ogyal
l
owedt
hem t
ocat
egor
izecust
omer
sin 
spr
eadsheet
s and
l
i
sts.I
n1982,Kat
eandRober
tD.Kest
nbaum i
ntr
oducedt
heconceptof
 Dat
abase
mar
ket
ing,
namel
yappl
yi
ngst
ati
sti
cal
met
hodst
oanal
yzeandgat
hercust
omerdat
a. 
By
1986,
 
Pat Sul
l
ivan 
and 
Mike Muhney
 rel
eased a cust
omer ev
aluat
ion sy
stem
cal
l
ed 
ACT!
 based on t
he pr
inci
ple of di
git
alr
olodex,whi
ch of
fer
ed a cont
act
managementser
vicef
ort
hef
ir
stt
ime.
Thet
rendwasf
oll
owedbynumer
ousdev
eloper
str
yingt
omaxi
mizel
eads'pot
ent
ial
,
i
ncl
udi
ng 
Tom Si
ebel
,who desi
gnedt
hef
ir
stCRM pr
oduct
 Si
ebelSy
stems 
i
n1993.
Nev
ert
hel
ess,cust
omerr
elat
ionshi
pmanagementpopul
ari
zedi
n1997,duet
othewor
k
ofSi
ebel
,
 Gar
tner
,and 
IBM.Bet
ween 1997 and 2000,l
eadi
ng CRM pr
oduct
s wer
e
enr
iched wi
th 
ent
erpr
ise r
esour
ce pl
anni
ng 
funct
ions,and shi
ppi
ng and mar
ket
ing
capabi
l
iti
es.
 Si
ebeli
ntr
oducedt
hef
ir
stmobi
l
eCRM appcal
l
edSi
ebelSal
esHandhel
din
1999.Thei
deaofacl
oud-
host
edandmov
eabl
ecust
omerbaseswassoonadopt
edby
ot
herl
eadi
ngpr
ovi
der
satt
het
ime,
incl
udi
ng 
Peopl
eSof
t,
 Or
acl
e,andSAP.
Thef
ir
stopen-
sour
ceCRM sy
stem wasdev
elopedby
 SugarCRM 
i
n2004.Dur
ingt
his
per
iod,
CRM wasr
api
dlymi
grat
ingt
ocl
oud,
asar
esul
tofwhi
chi
tbecameaccessi
blet
o
sol
eent
repr
eneur
sandsmal
lteams.Thi
sincr
easei
naccessi
bil
i
tygener
atedahuge
[
4]
wav
eofpr
icer
educt
ion.  
Around2009,dev
eloper
sbeganconsi
der
ingt
heopt
ionst
o
pr
ofi
tfr
om soci
almedi
a'
smoment
um,anddesi
gnedt
ool
stohel
pcompani
esbecome
accessi
bleonal
luser
s'f
avor
it
enet
wor
ks.Manyst
art
upsatt
het
imebenef
it
edf
rom t
his
t
rend t
o pr
ovi
de excl
usi
vel
y 
soci
alCRM 
sol
uti
ons,i
ncl
udi
ng 
Base 
and 
Nut
shel
l
. 
The
samey
ear
,Gar
tneror
gani
zedandhel
dthef
ir
stCust
omerRel
ati
onshi
pManagement
Summi
t,andsummar
izedt
hef
eat
uressy
stemsshoul
dof
fert
obecl
assi
fi
edasCRM
sol
uti
ons.
 I
n2013and2014,
mostoft
hepopul
arCRM pr
oduct
swer
eli
nkedt
obusi
ness
i
ntel
l
igence sy
stems and communi
cat
ion sof
twar
e t
o i
mpr
ove cor
por
ate
communi
cat
ionandend-
user
s'exper
ience.Thel
eadi
ngt
rendi
stor
epl
acest
andar
dized
CRM sol
uti
onswi
thi
ndust
ry-
speci
fi
cones,ort
omaket
hem cust
omi
zabl
eenought
o
meett
heneedsofev
erybusi
ness.
I
n Nov
ember2016,
 
For
rest
er 
rel
eased a r
epor
twher
eit"
ident
if
ied t
he ni
ne most
si
gni
fi
cantCRM sui
tesf
rom ei
ghtpr
omi
nentv
endor
s,"amongt
hem compani
essuch
as 
Inf
or,
 
Micr
osof
t,andNetSui
te.
TYPES

St
rat
egi
c
St
rat
egi
cCRM i
sfocusedupont
hedev
elopmentofacust
omer
-cent
ri
cbusi
nesscul
tur
e.

Oper
ati
onal
The pr
imar
y goalofcust
omerr
elat
ionshi
p managementsy
stems i
stoi
ntegr
ate
and 
aut
omat
e sal
es,mar
ket
ing,and cust
omersuppor
t.Ther
efor
e,t
hese sy
stems
t
ypi
cal
l
yhav
eadashboar
dthatgi
vesanov
eral
lvi
ewoft
het
hreef
unct
ionsona 
singl
e
cust
omerv
iew,asi
ngl
epagef
oreach cust
omert
hatacompanymayhav
e.The
dashboar
dmaypr
ovi
decl
i
enti
nfor
mat
ion,pastsal
es,pr
evi
ousmar
ket
ingef
for
ts,and
mor
e,summar
izi
ng al
loft
he r
elat
ionshi
ps bet
ween t
he cust
omerand t
he f
ir
m.
Oper
ati
onal
CRM i
smadeupof3mai
ncomponent
s:

Sal
esf
orceaut
omat
ion,
mar
ket
ingaut
omat
ion,
andser
viceaut
omat
ion.

 Sal
esf
orceaut
omat
ion 
wor
kswi
thal
lst
agesi
nthesal
escy
cle,f
rom i
nit
ial
l
y
ent
eri
ngcont
acti
nfor
mat
iont
oconv
ert
ingapr
ospect
ivecl
i
enti
ntoanact
ual
cl
i
ent
. 
Iti
mpl
ement
s sal
es pr
omot
ion 
anal
ysi
s,aut
omat
es t
he t
racki
ng ofa
cl
i
ent
'saccounthi
stor
yforr
epeat
edsal
esorf
utur
esal
esandcoor
dinat
essal
es,
mar
ket
ing,
cal
lcent
ers,
andr
etai
lout
let
s.I
tpr
event
sdupl
i
cat
eef
for
tsbet
weena
sal
esper
sonandacust
omerandal
so aut
omat
ical
l
ytr
acksal
lcont
act
sand
f
oll
ow-
upsbet
weenbot
hpar
ti
es.
 Mar
ket
ingaut
omat
ion 
focusesoneasi
ngt
heov
eral
lmar
ket
ingpr
ocesst
omake
i
tmor
eef
fect
iveandef
fi
cient
.CRM t
ool
swi
thmar
ket
ingaut
omat
ioncapabi
l
iti
es
canaut
omat
erepeat
edt
asks,f
orexampl
e,sendi
ngoutaut
omat
edmar
ket
ing
emai
l
satcer
tai
nti
mest
ocust
omer
s,orpost
ingmar
ket
ingi
nfor
mat
iononsoci
al
medi
a.Thegoalwi
thmar
ket
ingaut
omat
ioni
stot
urnasal
esl
eadi
ntoaf
ull
cust
omer
.CRM sy
stems t
odayal
so wor
k on 
cust
omerengagement
 t
hrough
soci
almedi
a.
 Ser
vice aut
omat
ion i
sthe par
toft
he CRM sy
stem t
hatf
ocuses on di
rect
cust
omerser
vice t
echnol
ogy
.Thr
ough ser
vice aut
omat
ion,cust
omer
s ar
e
suppor
tedt
hroughmul
ti
plechannel
ssuchasphone,emai
l
,knowl
edgebases,
t
icket
ingpor
tal
s,FAQs,
andmor
e.
Anal
yti
cal
Ther
oleofanal
yti
calCRM sy
stemsi
stoanal
yzecust
omerdat
acol
l
ect
edt
hrough
mul
ti
plesour
cesandpr
esenti
tsot
hatbusi
nessmanager
scanmakemor
einf
ormed
deci
si
ons.Anal
yti
cal
CRM sy
stemsuset
echni
quessuchasdat
ami
ning,
cor
rel
ati
on,
and
pat
ter
nrecogni
ti
on t
o anal
yze t
he cust
omerdat
a.These anal
yti
cs hel
pimpr
ove
cust
omerser
vicebyf
indi
ngsmal
lpr
obl
emswhi
chcanbesol
ved,
per
haps,
bymar
ket
ing
t
odi
ff
erentpar
tsofaconsumeraudi
encedi
ff
erent
ly.
 Forexampl
e,t
hrought
heanal
ysi
s
ofacust
omerbase'
sbuy
ingbehav
ior
,acompanymi
ghtseet
hatt
hiscust
omerbase
hasnotbeenbuy
ingal
otofpr
oduct
srecent
ly.Af
terscanni
ngt
hrought
hisdat
a,t
he
companymi
ghtt
hinkt
omar
kett
othi
ssubsetofconsumer
sdi
ff
erent
ly,
inor
dert
obest
communi
cat
ehowt
hiscompany
'spr
oduct
smi
ghtbenef
itt
hisgr
oupspeci
fi
cal
l
y.

Col
l
abor
ati
ve
Thet
hir
dpr
imar
yai
m ofCRM sy
stemsi
stoi
ncor
por
ateext
ernalst
akehol
der
ssuchas
suppl
i
ers, v
endor
s, and di
str
ibut
ors, and shar
e cust
omer i
nfor
mat
ion acr
oss
gr
oups/
depar
tment
sandor
gani
zat
ions.Forexampl
e,f
eedbackcanbecol
l
ect
edf
rom
t
echni
calsuppor
tcal
l
s,whi
chcoul
dhel
ppr
ovi
dedi
rect
ionf
ormar
ket
ingpr
oduct
sand
ser
vicest
othatpar
ti
cul
arcust
omeri
nthef
utur
e.

Cust
omerdat
apl
atf
orm
A 
cust
omerdat
apl
atf
orm 
(CDP)i
sacomput
ersy
stem usedbymar
ket
ingdepar
tment
s
t
hatassembl
esdat
aabouti
ndi
vi
dualpeopl
efr
om v
ari
oussour
cesi
ntoonedat
abase,
wi
thwhi
chot
hersof
twar
esy
stemscani
nter
act
. 
AsofFebr
uar
y2017t
her
ewer
eabout
t
went
y compani
es sel
l
ing such sy
stems and r
evenue f
or t
hem was ar
ound
US$300 
mil
l
ion.

COMPONENTS

Themai
n component
sofCRM ar
ebui
l
ding and managi
ng cust
omerr
elat
ionshi
ps
t
hroughmar
ket
ing,obser
vingr
elat
ionshi
psast
heymat
uret
hroughdi
sti
nctphases,
managi
ngt
heser
elat
ionshi
psateachst
ageandr
ecogni
zi
ngt
hatt
hedi
str
ibut
ionof
v
alueofar
elat
ionshi
ptot
hef
ir
misnothomogenous.Whenbui
l
dingandmanagi
ng
cust
omerr
elat
ionshi
pst
hroughmar
ket
ing,f
ir
msmi
ghtbenef
itf
rom usi
ngav
ari
etyof
t
ool
stohel
por
gani
zat
ionaldesi
gn,i
ncent
iveschemes,cust
omerst
ruct
ures,andmor
e
t
oopt
imi
zet
her
eachofi
tsmar
ket
ingcampai
gns.Thr
ought
heacknowl
edgementoft
he
di
sti
nctphasesofCRM,
busi
nesseswi
l
lbeabl
etobenef
itf
rom seei
ngt
hei
nter
act
ionof
mul
ti
pler
elat
ionshi
psasconnect
edt
ransact
ions.Thef
inalf
act
orofCRM hi
ghl
i
ght
sthe
i
mpor
tanceofCRM t
hroughaccount
ingf
ort
hepr
ofi
tabi
l
ityofcust
omerr
elat
ionshi
ps.
Thr
oughst
udy
ingt
hepar
ti
cul
arspendi
nghabi
tsofcust
omer
s,af
ir
m maybeabl
eto
dedi
cat
edi
ff
erentr
esour
cesandamount
sofat
tent
iont
odi
ff
erentt
ypesofconsumer
s.

Rel
ati
onalI
ntel
l
igence,
orawar
enessoft
hev
ari
etyofr
elat
ionshi
psacust
omercanhav
e
wi
thaf
ir
m,i
sani
mpor
tantcomponentt
othemai
nphasesofCRM.Compani
esmaybe
goodatcapt
uri
ng 
demogr
aphi
cdat
a,suchasgender
,age,i
ncome,andeducat
ion,and
connect
ing t
hem wi
th pur
chasi
ng i
nfor
mat
ion t
o cat
egor
ize cust
omer
s
i
nto 
prof
it
abi
l
ity
 ti
ers,but t
hisi
s onl
ya f
ir
m's mechani
cal v
iew of cust
omer
[
19]
r
elat
ionshi
ps.  Thi
sther
efor
eisasi
gnt
hatf
ir
msbel
i
evet
hatcust
omer
sar
est
il
l
r
esour
cest
hatcanbeusedf
or 
up-
sel
l
 or
 cr
oss-
sel
l
 oppor
tuni
ti
es,r
athert
hanhumans
l
ooki
ngf
ori
nter
est
ingandper
sonal
i
zedi
nter
act
ions.

CRM sy
stemsi
ncl
ude:

 Dat
awar
ehouse 
technol
ogy
,usedt
oaggr
egat
etr
ansact
ioni
nfor
mat
ion,
tomer
ge
t
hei
nfor
mat
ionwi
thCRM pr
oduct
s,andt
opr
ovi
dekeyper
for
mancei
ndi
cat
ors.
 Oppor
tuni
tymanagement
 whi
chhel
pst
hecompanyt
omanageunpr
edi
ctabl
e
gr
owt
handdemand,
andi
mpl
ementagoodf
orecast
ingmodelt
oint
egr
atesal
es
hi
stor
ywi
thsal
espr
oject
ions.
 CRM sy
stems t
hatt
rack and measur
e mar
ket
ing campai
gns ov
ermul
ti
ple
net
wor
ks,
tracki
ngcust
omeranal
ysi
sbycust
omercl
i
cksandsal
es.
 SomeCRM sof
twar
eisav
ail
abl
easa 
sof
twar
easaser
vice 
(SaaS)
,del
i
ver
edv
ia
t
hei
nter
netandaccessedv
iaawebbr
owseri
nst
eadofbei
ngi
nst
all
edonal
ocal
comput
er.Busi
nessesusi
ngt
hesof
twar
edonotpur
chasei
t,butt
ypi
cal
l
ypaya
 r
ecur
ri
ngsubscr
ipt
ionf
eet
othesof
twar
evendor
.
 Forsmal
lbusi
nessesaCRM sy
stem mayconsi
stofacont
actmanagersy
stem
t
hati
ntegr
atesemai
l
s,document
s,j
obs,f
axes,andschedul
i
ngf
ori
ndi
vi
dual
account
s. 
CRM sy
stemsav
ail
abl
eforspeci
fi
cmar
ket
s(l
egal
,fi
nance)f
requent
ly
f
ocus on ev
ent management and r
elat
ionshi
p t
racki
ng as opposed t
o
f
inanci
al 
ret
urnoni
nvest
ment
 (
ROI
).
 CRM sy
stemsf
or 
e-Commer
ce,
focusedonmar
ket
ingaut
omat
iont
asks,
li
ke:
car
t
r
escue,
re-
engageuser
swi
themai
l
,per
sonal
i
zat
ion.
 Cust
omer
-cent
ri
crel
ati
onshi
pmanagement(
CCRM)i
sanascentsub-
disci
pli
ne
t
hatf
ocusesoncust
omerpr
efer
encesi
nst
eadofcust
omerl
ever
age.CCRM ai
ms
t
oaddv
aluebyengagi
ngcust
omer
sini
ndi
vi
dual
,i
nter
act
iver
elat
ionshi
ps.
 Sy
stems f
or non-
prof
it and member
shi
p-based or
gani
zat
ions hel
p t
rack
const
it
uent
s, f
undr
aisi
ng, sponsor
s' demogr
aphi
cs, member
shi
p l
evel
s,
member
shi
pdi
rect
ori
es,
vol
unt
eer
ingandcommuni
cat
ionwi
thi
ndi
vi
dual
s.

EFFECTONCUSTOMERSATI
SFACTI
ON

Cust
omersat
isf
act
ion 
hasi
mpor
tanti
mpl
i
cat
ionsf
ort
heeconomi
cper
for
manceof
f
ir
msbecausei
thast
heabi
l
ityt
oincr
easecust
omerl
oyal
tyandusagebehav
iorand
r
educe cust
omer compl
aint
s and t
he l
i
kel
i
hood of cust
omer def
ect
ion.
 The
i
mpl
ement
ati
onofaCRM appr
oachi
sli
kel
ytohav
eanef
fectoncust
omersat
isf
act
ion
andcust
omerknowl
edgef
orav
ari
etyofdi
ff
erentr
easons.

Fi
rst
ly,f
ir
msar
eabl
etocust
omi
zet
hei
rof
fer
ingsf
oreachcust
omer
. 
Byaccumul
ati
ng
i
nfor
mat
ionacr
osscust
omeri
nter
act
ionsandpr
ocessi
ngt
hisi
nfor
mat
iont
odi
scov
er
hi
ddenpat
ter
ns,CRM appl
i
cat
ionshel
pfi
rmscust
omi
zet
hei
rof
fer
ingst
osui
tthe
i
ndi
vi
dualt
ast
esoft
hei
rcust
omer
s. 
Thi
scust
omi
zat
ionenhancest
heper
cei
vedqual
i
ty
ofpr
oduct
sandser
vicesf
rom acust
omer
'sv
iewpoi
nt,
andbecauseper
cei
vedqual
i
tyi
s
adet
ermi
nantofcust
omersat
isf
act
ion,i
tfol
l
owst
hatCRM appl
i
cat
ionsi
ndi
rect
ly
af
fectcust
omersat
isf
act
ion.CRM appl
i
cat
ionsal
soenabl
efi
rmst
opr
ovi
det
imel
y,
accur
atepr
ocessi
ngofcust
omeror
der
sandr
equest
sandt
heongoi
ngmanagementof
cust
omeraccount
s. 
Forexampl
e,Pi
ccol
iandAppl
egat
edi
scusshowWy
ndham usesI
T
t
ool
sto del
i
vera consi
stentser
vice 
exper
ience 
acr
oss i
tsv
ari
ous pr
oper
ti
es t
oa
cust
omer
.Bot
h an i
mpr
oved abi
l
ityt
o cust
omi
zeand ar
educed v
ari
abi
l
ityoft
he
consumpt
ionexper
ienceenhanceper
cei
vedqual
i
ty,whi
chi
ntur
nposi
ti
vel
yaf
fect
s
cust
omer sat
isf
act
ion.
 Fur
ther
mor
e,CRM appl
i
cat
ions al
so hel
p f
ir
ms manage
cust
omerr
elat
ionshi
psmor
eef
fect
ivel
yacr
osst
hest
agesofr
elat
ionshi
pini
ti
ati
on,
mai
ntenance,
andt
ermi
nat
ion.

Cust
omerbenef
it
s

Wi
thCust
omerr
elat
ionshi
pmanagementsy
stemscust
omer
sar
eser
vedbet
teronday
t
odaypr
ocessandwi
thmor
erel
i
abl
einf
ormat
iont
hei
rdemandof
 sel
fser
vice 
fr
om
compani
eswi
l
ldecr
ease.I
fther
eisl
essneedt
oint
eractwi
tht
hecompanyf
ordi
ff
erent
pr
obl
ems,
 
cust
omersat
isf
act
ion 
l
eveli
ncr
eases.
 Thesecent
ralbenef
it
sofCRM wi
l
lbe
connect
edhy
pot
het
ical
l
ytot
het
hreeki
ndsofequi
tyt
hatar
erel
ati
onshi
p,v
alueand
br
and,
andi
ntheendt
o cust
omerequi
ty.

Ei
ghtbenef
it
swer
erecogni
zedt
opr
ovi
dev
aluedr
iver
s.

1.Enhancedabi
l
ityt
o t
arget
 pr
ofi
tabl
ecust
omer
s.
2.I
ntegr
atedassi
stanceacr
osschannel
s
3.Enhanced 
sal
esf
orce 
eff
ici
encyandef
fect
iveness
4.I
mpr
oved 
pri
ci
ng
5.Cust
omi
zedpr
oduct
sandser
vices
6.I
mpr
ovedcust
omerser
viceef
fi
ciencyandef
fect
iveness
7.I
ndi
vi
dual
i
zedmar
ket
ingmessagesal
socal
l
edcampai
gns
8.Connectcust
omer
sandal
lchannel
sonasi
ngl
epl
atf
orm.
 

I
n2012,
aft
err
evi
ewi
ngt
hepr
evi
ousst
udi
es,
someonesel
ect
edsomeoft
hosebenef
it
s
whi
char
emor
esi
gni
fi
canti
ncust
omer
'ssat
isf
act
ionandsummar
izedt
hem i
ntot
he
f
oll
owi
ngcases:

1. I
mpr
ovecust
omerser
vices:I
ngener
al,cust
omer
swoul
dhav
esomequest
ions,
concer
ns orr
equest
s.CRM ser
vices pr
ovi
de t
he abi
l
ityt
o a companyf
or
pr
oduci
ng,al
l
ocat
ingandmanagi
ngr
equest
sorsomet
hingmadebycust
omer
s.
Forexampl
e,
 cal
lcent
er 
sof
twar
e,whi
chhel
pst
oconnectacust
omert
othe
managerorper
sonwhocanbestassi
stt
hem wi
tht
hei
rexi
sti
ngpr
obl
em,i
sone
oft
heCRM abi
l
iti
est
hatcanbei
mpl
ement
edt
oincr
easeef
fi
ciency
.
2. I
ncr
eased per
sonal
i
zed ser
vice orone-
to-
one ser
vice:
 
Per
sonal
i
zing 
cust
omer
ser
viceorone-
to-
oneser
vicepr
ovi
descompani
est
oimpr
oveunder
standi
ngand
gai
ningknowl
edgeoft
hecust
omer
sandal
sot
ohav
ebet
terknowl
edgeabout
t
hei
rcust
omer
s'pr
efer
ences,
requi
rement
sanddemands.
3. Responsi
vet
o cust
omer
's needs:Cust
omer
s'si
tuat
ions and needs can be
under
stoodbyt
hef
ir
msf
ocusi
ngoncust
omerneedsandr
equi
rement
s.
4. Cust
omersegment
ati
on:I
nCRM,
 
segment
ati
on 
i
susedt
o cat
egor
ize 
cust
omer
s,
accor
dingt
osomesi
mil
ari
ty,
suchasi
ndust
ry,
joborsomeot
herchar
act
eri
sti
cs,
i
ntosi
mil
argr
oups.
 Al
thought
hesechar
act
eri
sti
cs,
canbeoneormor
eat
tr
ibut
es.
I
tcanbedef
inedasasubdi
vi
dingt
hecust
omer
sbasedonal
readyknowngood
di
scr
imi
nat
or.
5. I
mpr
ovecust
omi
zat
ionofmar
ket
ing:Meani
ngofcust
omi
zat
ionofmar
ket
ingi
s
t
hat
,thef
ir
m oror
gani
zat
ionadaptandchangei
tsser
vicesorpr
oduct
sbasedon
pr
esent
ingadi
ff
erentanduni
quepr
oductorser
vicesf
oreachcust
omer
.Wi
th
t
he pur
pose ofensur
ing t
hatcust
omerneeds and r
equi
rement
s ar
e met
Cust
omi
zat
ioni
susedbyt
heor
gani
zat
ion.Compani
escanputi
nvest
menti
n
i
nfor
mat
ionf
rom cust
omer
sandt
hencust
omi
zet
hei
rpr
oduct
sorser
vicest
o
mai
ntai
ncust
omeri
nter
est
s.
6. Mul
ti
channeli
ntegr
ati
on:
 
Mul
ti
channel
 
int
egr
ati
onshowst
hepoi
ntofcocr
eat
ion
ofcust
omerv
aluei
nCRM.Ont
heot
herhand,acompany
'sski
l
ltoper
for
m
mul
ti
channeli
ntegr
ati
onsuccessf
ull
yisheav
il
ydependentont
heor
gani
zat
ion'
s
abi
l
ityget
ti
ngt
oget
hercust
omeri
nfor
mat
ionf
rom al
lchannel
sandi
ncor
por
atei
t
wi
thot
herr
elat
edi
nfor
mat
ion.
7. Ti
mesav
ing:CRM wi
l
lletcompani
est
oint
eractwi
thcust
omer
smor
efr
equent
ly,
byper
sonal
i
zed message and communi
cat
ion waywhi
ch can be pr
oduced
r
api
dlyandmat
chedonat
imel
ybasi
s,andf
inal
l
ytheycanbet
terunder
stand
t
hei
rcust
omer
sandt
her
efor
elookf
orwar
dtot
hei
rneeds.
8. I
mpr
ove cust
omerknowl
edge:Fi
rms can make and i
mpr
ove pr
oduct
s and
ser
vices t
hrough t
he i
nfor
mat
ion f
rom t
racki
ng (
e.g. v
ia 
websi
te
t
racki
ng)
 cust
omer behav
iour
 t
o cust
omer t
ast
es and needs.
 CRM coul
d
cont
ri
but
etoacompet
it
iveadv
ant
agei
nimpr
ovi
ngf
ir
m'sabi
l
ityofcust
omer
i
nfor
mat
ion col
l
ect
ing t
o cust
omi
ze pr
oduct
s and ser
vices accor
ding t
o
cust
omerneeds.

Exampl
es

Resear
chhasf
ounda5% i
ncr
easei
ncust
omerr
etent
ionboost
sli
fet
imecust
omer
pr
ofi
tsby50%onav
erageacr
ossmul
ti
plei
ndust
ri
es,aswel
lasaboostofupt
o90%
wi
thi
nspeci
fi
cindust
ri
essuchasi
nsur
ance.
 Compani
est
hathav
emast
eredcust
omer
r
elat
ionshi
p st
rat
egi
es hav
e t
he most successf
ul CRM pr
ogr
ams. For
exampl
e,
 MBNA 
Eur
opehashada75%annual
prof
itgr
owt
hsi
nce1995.Thef
ir
m heav
il
y
i
nvest
sinscr
eeni
ngpot
ent
ialcar
dhol
der
s.Oncepr
opercl
i
ent
sar
eident
if
ied,t
hef
ir
m
r
etai
ns97% ofi
tspr
ofi
tabl
ecust
omer
s.Theyi
mpl
ementCRM bymar
ket
ingt
her
ight
pr
oduct
stot
her
ightcust
omer
s.Thef
ir
m'scust
omer
s'car
d usagei
s52% abov
e
i
ndust
rynor
m,andt
heav
erageexpendi
tur
eis30%mor
epert
ransact
ion.Al
so10%of
t
hei
raccounthol
der
saskf
ormor
einf
ormat
iononcr
oss-
sal
epr
oduct
s.

Amazon 
has al
so seen gr
eatsuccess t
hrough i
ts cust
omerpr
oposi
ti
on.The f
ir
m
i
mpl
ement
edper
sonalgr
eet
ings,col
l
abor
ati
vef
il
ter
ing,andmor
efort
hecust
omer
.
Theyal
sousedCRM t
rai
ningf
ort
heempl
oyeest
oseeupt
o80%ofcust
omer
srepeat
.
CUSTOMERPROFI
LE

Cust
omerorconsumerpr
ofi
l
esar
etheessenceoft
he 
dat
a t
hati
scol
l
ect
edal
ongsi
de
cor
e dat
a (
name, addr
ess, company
) and pr
ocessed t
hrough 
cust
omer
anal
yti
cs 
met
hods,essent
ial
l
yat
ype of
 pr
ofi
l
ing.A cust
omer i
s abst
ract
ed t
o
i
nfor
mat
ion t
hatsums up 
consumpt
ion 
habi
ts so f
arand 
proj
ect
sthem i
ntot
he
f
utur
e sot
hatt
heycanbegr
oupedf
ormar
ket
ingand 
adv
ert
isi
ng 
pur
poses.

I
mpr
ovi
ngCRM wi
thi
naf
ir
m

Consul
tant
s,such as 
Bai
n & Company
,ar
gue t
hati
tisi
mpor
tantf
orcompani
es
est
abl
i
shi
ngst
rongCRM sy
stemst
oimpr
ovet
hei
rrel
ati
onali
ntel
l
igence.
 Accor
dingt
o
t
hisar
gument
,acompanymustr
ecogni
zet
hatpeopl
ehav
emanydi
ff
erentt
ypesof
r
elat
ionshi
pswi
thdi
ff
erentbr
ands.Oner
esear
chst
udyanal
yzedr
elat
ionshi
psbet
ween
consumer
sinChi
na,Ger
many
,Spai
n,andt
heUni
tedSt
ates,wi
thov
er200br
andsi
n11
i
ndust
ri
esi
ncl
udi
ngai
rl
ines,car
sandmedi
a.Thi
sinf
ormat
ioni
sval
uabl
easi
tpr
ovi
des
demogr
aphi
c,behav
ior
al,and v
alue-
based cust
omersegment
ati
on.Theset
ypesof
r
elat
ionshi
pscanbebot
hposi
ti
veandnegat
ive.Somecust
omer
svi
ew t
hemsel
vesas
f
ri
endsoft
hebr
ands,whi
l
eot
her
sasenemi
es,andsomear
emi
xedwi
thal
ove-
hat
e
r
elat
ionshi
pwi
tht
hebr
and.Somer
elat
ionshi
psar
edi
stant
,int
imat
eorany
thi
ngi
n
bet
ween.

Anal
yzi
ngt
hei
nfor
mat
ion

Manager
smustunder
standt
hedi
ff
erentr
easonsf
ort
het
ypesofr
elat
ionshi
ps,and
pr
ovi
de t
he cust
omerwi
th whatt
heyar
elooki
ng f
or.Compani
es can 
col
l
ect
 t
his
i
nfor
mat
ion by usi
ng 
sur
vey
s,i
nter
views,and mor
e,wi
th cur
rentcust
omer
s.For
exampl
e,
 Fr
it
o-Lay
 conduct
edmany
 et
hnogr
aphi
c i
nter
viewswi
thcust
omer
stot
ryand
under
standt
her
elat
ionshi
pst
heywant
edwi
tht
hecompani
esandt
hebr
ands.They
f
oundt
hatmostcust
omer
swer
eadul
tswhousedt
hepr
oductt
ofeel
mor
epl
ayf
ul.They
mayhav
eenj
oyedt
hecompany
'sbr
ightor
angecol
or,
messi
nessandshape.
Compani
esmustal
soi
mpr
ovet
hei
rrel
ati
onali
ntel
l
igenceoft
hei
rCRM sy
stems.These
day
s,compani
esst
oreandr
ecei
vehugeamount
sofdat
athr
ough 
emai
l
s, 
chatsessi
ons,
phonecal
l
s,andmor
e. 
Manycompani
esdonotpr
oper
lymakeuseoft
hisgr
eatamount
ofdat
a,howev
er.Al
loft
hesear
esi
gnsofwhatt
ypesofr
elat
ionshi
pst
hecust
omer
want
swi
tht
hef
ir
m,andt
her
efor
ecompani
esmayconsi
deri
nvest
ingmor
eti
meand
[
19]
ef
for
tin bui
l
ding out t
hei
rrel
ati
onali
ntel
l
igence.  Compani
es can use 
mini
ng
t
echnol
ogi
esand 
websear
ches 
tounder
standr
elat
ionalsi
gnal
s. 
Soci
almedi
a suchas
Facebook,
Twi
tt
er,
 
blogs,
etc.i
sal
soav
eryi
mpor
tantf
act
ori
npi
cki
ngupandanal
yzi
ng
i
nfor
mat
ion.Under
standi
ngt
hecust
omerandcapt
uri
ngt
hisdat
aal
l
owscompani
est
o
conv
ertcust
omer
'ssi
gnal
sint
oinf
ormat
ionandknowl
edget
hatt
hef
ir
m canuset
o
under
standapot
ent
ial
cust
omer
'sdesi
redr
elat
ionswi
thabr
and.
I
tis al
so v
eryi
mpor
tantt
o anal
yze al
loft
hisi
nfor
mat
ion t
o det
ermi
ne whi
ch
r
elat
ionshi
pspr
ovet
hemostv
aluabl
e.Thi
shel
psconv
ertdat
aint
opr
ofi
tsf
ort
hef
ir
m.
St
rongerbondscont
ri
but
etobui
l
ding 
mar
ketshar
e.Bymanagi
ngdi
ff
erentpor
tfol
i
osf
or
di
ff
erentsegment
soft
hecust
omerbase,
thef
ir
m canachi
evest
rat
egi
cgoal
s.

Empl
oyeet
rai
ning

Manyf
ir
mshav
eal
soi
mpl
ement
edt
rai
ningpr
ogr
amst
oteachempl
oyeeshow t
o
r
ecogni
ze and ef
fect
ivel
y cr
eat
e st
rong cust
omer
-br
and r
elat
ionshi
ps. For
exampl
e,
 Dav
idson senti
ts empl
oyees on t
he r
oad wi
th cust
omer
s,who wer
e
mot
orcy
cleent
husi
ast
s,t
ohel
psol
i
dif
yrel
ati
onshi
ps.Ot
herempl
oyeeshav
eal
sobeen
t
rai
nedi
n soci
alpsy
chol
ogy
 andt
he 
soci
alsci
ences 
tohel
pbol
sterst
rongcust
omer
r
elat
ionshi
ps.
 Cust
omerser
vice 
repr
esent
ati
vesmustbeeducat
edt
oval
uecust
omer
r
elat
ionshi
ps,andt
rai
nedt
ounder
standexi
sti
ngcust
omerpr
ofi
l
es.Ev
ent
hef
inance
andl
egaldepar
tment
sshoul
dunder
standhowt
omanageandbui
l
drel
ati
onshi
pswi
th
cust
omer
s.
Appl
i
cat
ion

Appl
yi
ngnewt
echnol
ogi
eswhi
l
eusi
ngCRM sy
stemsr
equi
reschangesi
ninf
rast
ruct
ure
oft
heor
gani
zat
ionaswel
lasdepl
oymentofnew t
echnol
ogi
essuchasbusi
ness
r
ules,
 
dat
abases 
and 
i
nfor
mat
iont
echnol
ogy
I
NPRACTI
CE

Cal
lcent
ers

Cont
actcent
er 
CRM pr
ovi
der
sar
epopul
arf
orsmal
landmi
d-mar
ketbusi
nesses.These
sy
stemscodi
fyt
hei
nter
act
ionsbet
weencompanyandcust
omer
sbyusi
nganal
yti
cs
and 
keyper
for
mancei
ndi
cat
ors 
togi
vet
heuser
sinf
ormat
iononwher
etof
ocust
hei
r
mar
ket
ingandcust
omerser
vice.Thi
sal
l
owsagent
stohav
eaccesst
oacal
l
er'
shi
stor
y
t
opr
ovi
deper
sonal
i
zedcust
omercommuni
cat
ion.Thei
ntent
ioni
stomaxi
mize 
aver
age
r
evenueperuser
,decr
ease 
chur
nrat
e anddecr
easei
dleandunpr
oduct
ivecont
actwi
th
t
hecust
omer
s.

Gr
owi
ngi
npopul
ari
tyi
sthei
deaofgasi
fyi
ng,
orusi
nggamedesi
gnel
ement
sandgame
pr
inci
plesi
nanon-
gameenv
ironmentsuchascust
omerser
viceenv
ironment
s.The
gasi
fi
cat
ionofcust
omerser
viceenv
ironment
sincl
udespr
ovi
dingel
ement
sfoundi
n
gamesl
i
ker
ewar
dsandbonuspoi
ntst
ocust
omerser
vicer
epr
esent
ati
vesasamet
hod
off
eedbackf
oraj
obwel
ldone.
 Gasi
fi
cat
ion 
tool
scanmot
ivat
eagent
sbyt
appi
ngi
nto
t
hei
rdesi
ref
orr
ewar
ds,
recogni
ti
on,
achi
evement
s,andcompet
it
ion.

Cont
act
-cent
eraut
omat
ion

Cont
act
-cent
er 
aut
omat
ion, t
he pr
act
ice of hav
ing an i
ntegr
ated sy
stem t
hat
coor
dinat
escont
act
sbet
weenanor
gani
zat
ionandt
hepubl
i
c,i
sdesi
gnedt
oreducet
he
r
epet
it
iveandt
edi
ouspar
tsofacont
actcent
eragent
'sj
ob.Aut
omat
ionpr
event
sthi
sby
hav
ingpr
e-r
ecor
dedaudi
omessagest
hathel
pcust
omer
ssol
vet
hei
rpr
obl
ems.For
exampl
e,anaut
omat
edcont
actcent
ermaybeabl
etor
e-r
out
eacust
omert
hrougha
ser
iesofcommandsaski
nghi
m orhert
osel
ectacer
tai
nnumberi
nor
dert
ospeakwi
th
apar
ti
cul
arcont
actcent
eragentwhospeci
ali
zesi
nthef
iel
dinwhi
cht
hecust
omerhas
[
48]
aquest
ion.  Sof
twar
etool
scanal
soi
ntegr
atewi
tht
heagent
'sdeskt
opt
ool
stohandl
e
cust
omerquest
ionsandr
equest
s.Thi
sal
sosav
est
imeonbehal
foft
heempl
oyees.
Soci
almedi
a

Soci
alCRM 
i
nvol
vest
heuseofsoci
almedi
aandt
echnol
ogyt
oengageandl
ear
nfr
om
consumer
s.Becauset
hepubl
i
c,especi
all
yyoungpeopl
e,ar
eincr
easi
ngl
yusi
ngsoci
al
net
wor
king si
tes,compani
es use 
these si
tes t
o dr
aw at
tent
ion t
othei
rpr
oduct
s,
ser
vicesandbr
ands,wi
tht
heai
m ofbui
l
dingupcust
omerr
elat
ionshi
pst
oincr
ease
demand.

SomeCRM sy
stemsi
ntegr
atesoci
almedi
asi
tesl
i
keTwi
tt
er,
LinkedI
nandFacebookt
o
t
rack and communi
cat
e wi
th cust
omer
s.These cust
omer
s al
so shar
ethei
rown
opi
nionsandexper
ienceswi
thacompany
'spr
oduct
sandser
vices,gi
vi
ngt
hesef
ir
ms
mor
einsi
ght
.Ther
efor
e,t
hesef
ir
mscanbot
hshar
ethei
rownopi
nionsandal
sot
rack
[
16]
t
heopi
nionsoft
hei
rcust
omer
s.
Ent
erpr
isef
eedbackmanagementsof
twar
epl
atf
orms,
suchasConf
ir
mit
,Medal
l
ia,
and
Sat
met
ri
x,combi
nei
nter
nalsur
veydat
awi
tht
rendsi
dent
if
iedt
hroughsoci
almedi
ato
al
l
owbusi
nessest
omakemor
eaccur
atedeci
sionsonwhi
chpr
oduct
stosuppl
y.

Locat
ion-
basedser
vices

CRM sy
stems can al
so i
ncl
ude t
echnol
ogi
es t
hatcr
eat
e geogr
aphi
c mar
ket
ing
campai
gns.Thesy
stemst
akei
ninf
ormat
ionbasedonacust
omer
'sphy
sicall
ocat
ion
andsomet
imesi
ntegr
atesi
twi
thpopul
arl
ocat
ion-
basedGPSappl
i
cat
ions.I
tcanbe
usedf
ornet
wor
kingorcont
actmanagementaswel
ltohel
pincr
easesal
esbasedon
l
ocat
ion.
Busi
ness-
to-
busi
nesst
ransact
ions

Despi
tet
hegener
alnot
iont
hatCRM sy
stemswer
ecr
eat
edf
ort
hecust
omer
-cent
ri
c
busi
nesses,t
heycanal
sobeappl
i
edt
oB2Benv
ironment
stost
reaml
i
neandi
mpr
ove
cust
omermanagementcondi
ti
ons.Fort
hebestl
evelofCRM oper
ati
on i
n aB2B
env
ironment
,thesof
twar
emustbeper
sonal
i
zedanddel
i
ver
edati
ndi
vi
dual
lev
els.

The mai
n di
ff
erences bet
ween busi
ness-
to-
consumer (
B2C) and 
busi
ness-
to-
busi
ness 
CRM sy
stemsconcer
naspect
sli
kesi
zi
ngofcont
actdat
abasesandl
engt
hof
r
elat
ionshi
ps.Busi
ness-
to-
busi
nesscompani
est
endt
ohav
esmal
l
ercont
actdat
abases
t
hanbusi
ness-
to-
consumer
,thev
olumeofsal
esi
nbusi
ness-
to-
busi
nessi
srel
ati
vel
y
smal
l
.Ther
ear
efewerf
igur
epr
oposi
ti
onsi
nbusi
ness-
to-
busi
ness,buti
nsomecases,
t
heycostal
otmor
ethanbusi
ness-
to-
consumeri
temsandr
elat
ionshi
psi
nbusi
ness-
to-
busi
nessenv
ironmentar
ebui
l
tov
eral
ongerper
iodoft
ime.Fur
ther
mor
e,busi
ness-
to-
busi
nessCRM mustbeeasi
l
yint
egr
atedwi
thpr
oduct
sfr
om ot
hercompani
es.Such
i
ntegr
ati
onenabl
est
hecr
eat
ionoff
orecast
saboutcust
omerbehav
iorbasedont
hei
r
buy
inghi
stor
y,bi
l
ls,busi
nesssuccess,et
c.Anappl
i
cat
ionf
orabusi
ness-
to-
busi
ness
companymusthav
eaf
unct
iont
oconnectal
lthecont
act
s,pr
ocessesanddeal
samong
t
hecust
omer
ssegmentandt
henpr
epar
eapaper
.Aut
omat
ionofsal
espr
ocessi
san
i
mpor
tantr
equi
rementf
orbusi
ness-
to-
busi
nesspr
oduct
s.I
tshoul
def
fect
ivel
ymanage
t
hedeal
andpr
ogr
essi
tthr
oughal
lthephasest
owar
dssi
gni
ng.Fi
nal
l
y,acr
uci
alpoi
nti
s
per
sonal
i
zat
ion.I
thel
pst
hebusi
ness-
to-
busi
nesscompanyt
o cr
eat
eandmai
ntai
n
st
rongandl
ong-
last
ingr
elat
ionshi
pwi
tht
hecust
omer
.
Mar
ketTr
ends

I
ntheGar
tnerCRM Summi
t2010chal
l
engesl
i
ke"
syst
em t
ri
est
ocapt
uredat
afr
om
soci
alnet
wor
kingt
raf
fi
cli
keTwi
tt
er,
handl
esFacebookpageaddr
essesorot
heronl
i
ne
soci
alnet
wor
kingsi
tes"wer
edi
scussedandsol
uti
onswer
epr
ovi
dedt
hatwoul
dhel
pin
br
ingi
ngmor
ecl
i
ent
ele.
 ManyCRM v
endor
sof
fersubscr
ipt
ion-
basedwebt
ool
s(cl
oud
comput
ing)and SaaS.SomeCRM sy
stemsar
eequi
pped wi
th mobi
l
ecapabi
l
iti
es,
maki
ng i
nfor
mat
ion accessi
blet
oremot
e sal
esst
aff
. 
Sal
esf
orce.
com 
wast
he f
ir
st
companyt
opr
ovi
deent
erpr
iseappl
i
cat
ionst
hroughawebbr
owser
,andhasmai
ntai
ned
i
tsl
eader
shi
pposi
ti
on.

Tr
adi
ti
onalpr
ovi
der
shav
erecent
lymov
edi
ntot
hecl
oud-
basedmar
ketv
iaacqui
sit
ions
of smal
l
er pr
ovi
der
s: Or
acl
e pur
chased 
Right Now 
i
n Oct
ober
2011 
and 
SAP 
acqui
red 
SuccessFact
ors 
i
nDecember2011.

The er
a oft
he "
soci
alcust
omer
" 
ref
erst
othe use ofsoci
almedi
a(Twi
tt
er,
 
Face
book,
 
LinkedI
n, 
Googl
e Pl
us,
 
Pint
erest
, 
Inst
agr
am,
 
Yel
p,cust
omerr
evi
ews i
n Amazon,
et
c.)bycust
omer
s.CRM phi
l
osophyandst
rat
egyhasshi
ft
edt
oencompasssoci
al
net
wor
ksandusercommuni
ti
es.

Sal
esf
orcesal
sopl
ayani
mpor
tantr
olei
nCRM,
asmaxi
mizi
ng 
sal
esef
fect
iveness 
and
i
ncr
easi
ng sal
es 
product
ivi
ty 
i
s a dr
ivi
ng f
orce behi
nd t
he adopt
ion of CRM.
Empower
ing 
sal
esmanager
s wasl
i
stedasoneoft
het
op5CRM t
rendsi
n2013.

Anot
herr
elat
eddev
elopmenti
s v
endorr
elat
ionshi
pmanagement
 (
VRM)
,whi
chpr
ovi
de
t
ool
sandser
vicest
hatal
l
ow cust
omer
stomanaget
hei
rindi
vi
dualr
elat
ionshi
pwi
th
v
endor
s. VRM dev
elopment has gr
own out of ef
for
ts by Pr
oject VRM at
Har
var
d's 
Ber
kmanCent
erf
orI
nter
net&Soci
ety
 andI
dent
it
yCommons'
Int
ernetI
dent
it
y
Wor
kshops,aswel
lasbyagr
owi
ngnumberofst
art
upsandest
abl
i
shedcompani
es.
VRM wast
hesubj
ectofacov
erst
oryi
ntheMay2010i
ssueof
 CRM 
Magazi
ne.

Phar
maceut
icalcompani
eswer
esomeoft
hef
ir
sti
nvest
orsi
nsal
esf
orceaut
omat
ion
(
SFA)andsomear
eont
hei
rthi
rd-orf
our
th-
gener
ati
oni
mpl
ement
ati
ons.Howev
er,
unt
il
r
ecent
ly,t
hedepl
oyment
sdi
dnotext
endbey
ondSFA—l
i
mit
ingt
hei
rscopeandi
nter
est
t
oGar
tneranal
yst
s.

Anot
hert
rend wor
thnot
ing i
sther
iseof
 Cust
omerSuccess 
asadi
sci
pli
newi
thi
n
compani
es.Mor
eandmor
ecompani
esest
abl
i
shCust
omerSuccesst
eamsassepar
ate
f
rom t
he t
radi
ti
onalSal
es t
eam and t
askt
hem wi
th managi
ng exi
sti
ng cust
omer
r
elat
ions.Thi
str
end f
uel
s demand f
oraddi
ti
onalcapabi
l
iti
es f
ormor
e hol
i
sti
c
under
standi
ngoft
hecust
omerheal
th,
whi
chi
sal
i
mit
ati
onf
ormanyexi
sti
ngv
endor
sin
t
hespace.
 Asar
esul
t,agr
owi
ngnumberofnew ent
rant
sent
ert
hemar
ket
,whi
l
e
exi
sti
ng v
endor
s add capabi
l
iti
es i
nthi
s ar
ea t
othei
rsui
tes.I
n 2017,
 
art
if
ici
al
i
ntel
l
igence 
and 
predi
cti
veanal
yti
cs 
wer
eident
if
iedast
henewestt
rendsi
nCRM.
CRI
TICI
SM

Compani
esf
acel
argechal
l
engeswhent
ryi
ngt
oimpl
ementCRM sy
stems.Consumer
compani
es f
requent
ly manage t
hei
r cust
omer r
elat
ionshi
ps haphazar
dly and
unpr
ofi
tabl
y.Theymaynotef
fect
ivel
yoradequat
elyuset
hei
rconnect
ionswi
tht
hei
r
cust
omer
s,duet
omi
sunder
standi
ngsormi
sint
erpr
etat
ionsofaCRM sy
stem'
sanal
ysi
s.
Cl
i
ent
swhowantt
obet
reat
edmor
eli
keaf
ri
endmaybet
reat
edl
i
kej
ustapar
tyf
or
exchange,r
athert
hanauni
quei
ndi
vi
dual
,duet
o,occasi
onal
l
y,al
ackofabr
idge
bet
ween t
he CRM dat
a and t
he CRM anal
ysi
s out
put
.Many st
udi
es show t
hat
cust
omer
sar
efr
equent
lyf
rust
rat
edbyacompany
'si
nabi
l
ityt
omeett
hei
rrel
ati
onshi
p
expect
ati
ons,
andont
heot
hersi
de,
compani
esdonotal
way
sknowhowt
otr
ansl
atet
he
dat
athey hav
e gai
ned f
rom CRM sof
twar
eint
oaf
easi
ble act
ion pl
an.
 I
n 2003,
a 
Gar
tner
 r
epor
test
imat
edt
hatmor
ethan$2bi
l
li
onhadbeenspentonsof
twar
ethat
was notbei
ng used.Accor
ding t
o CSO I
nsi
ght
s,l
ess t
han 40 per
centof1,
275
par
ti
cipat
ing compani
es had end-
user adopt
ion r
ates abov
e 90 per
cent
.Many
cor
por
ati
onsonl
yuseCRM sy
stemsonapar
ti
alorf
ragment
edbasi
s. 
Ina2007sur
vey
f
rom t
heUK,f
our
-f
if
thsofseni
orexecut
ivesr
epor
tedt
hatt
hei
rbi
ggestchal
l
engei
s
get
ti
ngt
hei
rst
afft
ouset
hesy
stemst
heyhadi
nst
all
ed.43per
centofr
espondent
ssai
d
t
heyusel
esst
hanhal
fthef
unct
ional
i
tyoft
hei
rexi
sti
ngsy
stems.
 Howev
er,mar
ket
r
esear
chr
egar
dingconsumer
s'pr
efer
encesmayi
ncr
easet
headopt
ionofCRM among
t
hedev
elopi
ngcount
ri
es'
consumer
s.

Col
l
ect
ion 
ofcust
omerdat
asuchas 
per
sonal
l
yident
if
iabl
einf
ormat
ion 
mustst
ri
ctl
y
obey
 cust
omerpr
ivacy
 l
aws,
whi
chof
tenr
equi
resext
raexpendi
tur
esonl
egal
suppor
t.

Par
toft
hepar
adoxwi
thCRM st
emsf
rom t
hechal
l
engeofdet
ermi
ningexact
lywhat
CRM i
sandwhati
tcandof
oracompany
. 
TheCRM par
adox,al
sor
efer
redt
oast
he
"
dar
ksi
deofCRM"
, 
mayent
ail
fav
ori
ti
sm anddi
ff
erent
ial
treat
mentofsomecust
omer
s.

CRM t
echnol
ogi
escaneasi
l
ybecomei
nef
fect
ivei
fther
eisnopr
opermanagement
,and
t
heyar
enoti
mpl
ement
edcor
rect
ly.Thedat
aset
smustal
sobeconnect
ed,di
str
ibut
ed,
andor
gani
zedpr
oper
ly,sot
hatt
heuser
scanaccesst
hei
nfor
mat
iont
hatt
heyneed
qui
ckl
y and easi
l
y.Resear
ch st
udi
es al
so show t
hatcust
omer
s ar
eincr
easi
ngl
y
becomi
ngdi
ssat
isf
iedwi
thcont
actcent
erexper
iencesduet
olagsandwai
tti
mes.They
al
sor
equestanddemandmul
ti
plechannel
sofcommuni
cat
ionswi
thacompany
,and
t
hese channel
smustt
ransf
eri
nfor
mat
ion seaml
essl
y.Ther
efor
e,i
tisi
ncr
easi
ngl
y
i
mpor
tantf
orcompani
est
odel
i
veracr
oss-
channelcust
omerexper
iencet
hatcanbe
bot
hconsi
stentaswel
lasr
eli
abl
e.

Ai
msofCRM

TheCRM i
sanewt
echni
quei
nmar
ket
ingwher
ethemar
ket
ert
ri
est
odev
elopl
ongt
erm
r
elat
ionshi
pwi
tht
hecust
omer
stodev
elopt
hem asl
i
fet
imecust
omer
s.CRM ai
mst
o
maket
hecust
omercl
i
mbupt
hel
adderofl
oyal
ty.

Thecompanyf
ir
stt
ri
est
odet
ermi
newhoar
eli
kel
ypr
ospect
si.
e.t
hepeopl
ewhohav
ea
st
rongpot
ent
iali
nter
esti
nthepr
oductandabi
l
ityt
opayf
ori
t.Thecompanyhopest
o
conv
ertmanyofi
tsqual
i
fiedpr
ospecti
ntof
ir
stt
imecust
omer
sandt
hent
oconv
ert
t
hosef
ir
stt
imecust
omer
sint
orepeatcust
omer
s.Thent
hecompanyt
ri
est
oconv
ert
t
heser
epeatcust
omer
sint
ocl
i
ent
s–t
heyar
ethosepeopl
ewhobuyonl
yfr
om t
he
companyi
nther
elev
antpr
oductcat
egor
ies.Thenextchal
l
engef
ort
hecompanyi
sto
conv
ertt
hese cl
i
enti
nto adv
ocat
es.Adv
ocat
es ar
ethose cl
i
ent
s who pr
aise t
he
companyandencour
ageot
her
stobuyf
rom i
t.

Theul
ti
mat
echal
l
engei
stoconv
ertt
heseadv
ocat
esi
ntopar
tner
swher
ethecust
omer
s
andt
hecl
i
ent
swor
kact
ivel
ytoget
hert
odi
scov
erway
sofget
ti
ngmut
ual
benef
it
.

Thusi
nCRM t
hekeyper
for
mancef
igur
eisnotj
ustcur
rentmar
ketshar
ebutshar
eof
l
i
fet
imev
aluebyconv
ert
ingcust
omer
sint
opar
tner
s.

I
nCRM t
hecompanyt
ri
est
oident
if
ythatsmal
lper
cent
age(
20%)ofkeyaccount
hol
der
swho’
scont
ri
but
iont
othecompanyr
evenuesi
shi
gh(
80%)
.Sof
rom t
hispoi
ntof
v
iew,
CRM i
sal
soknownasKEYACCOUNTMANAGEMENT.
 

Why–cust
omerr
elat
ionshi
pmanagement

 Asat
isf
iedcust
omeri
n10y
ear
swi
l
lbr
ing100mor
ecust
omer
stot
hecompany
.
 I
tcost
s7t
imemor
etoat
tractanewcust
omert
hant
oser
veanol
done.
 20%oft
hecompany
’sl
oyalcust
omer
saccountf
or80%ofi
tsr
evenues.(
Par
eto’
s
pr
inci
ple)
.
 Thechancesofsel
l
ingt
oanexi
sti
ngcust
omerar
e1i
n2,t
hechancesofsel
l
ing
t
oanewcust
omerar
e1i
n16.
 

Ei
ghtway
stokeepcust
omer
sforl
i
fe

1) Ev
erypar
toft
hecompany
’smar
ket
ingef
for
tshoul
dbegear
edt
owar
dsbui
l
ding
l
i
fet
imer
elat
ionshi
ps.
2) Peopl
ewantt
odobusi
nesswi
thf
ri
endl
ypeopl
e.Tohav
eef
fect
iver
elat
ionsa
f
ri
endl
yat
ti
tudemustper
meat
eint
heor
gani
zat
ion.
3) I
nfor
mat
iont
echnol
ogydev
elopment
sshoul
dbeposi
ti
vel
yusedt
oser
vet
he
cust
omer
s.
4) Thecompanyshoul
dal
way
sbef
lexi
blet
obendi
tsr
ulesandpr
ocedur
esi
nthe
cl
i
ent
’sf
avor
.
5) Thecompanyshoul
dcommuni
cat
ewi
thi
tscust
omer
sev
enwheni
tisnott
ryi
ng
t
osel
lsomet
hing.
6) Thecompanycancommuni
cat
eanddev
elopst
rongercust
omerbondi
ngby
pr
ovi
dingf
inanci
alandsoci
albenef
it
s.
7) Thecompanyshoul
dtr
ytoknow al
lit
scust
omer
sincl
udi
ngt
hei
rli
fest
yles,
hobbi
es,
li
kesanddi
sli
keset
c.
8) Thecompanyshoul
dmakei
tapoi
ntt
odel
i
vermor
ethanwhati
spr
omi
sed.
 

Howt
oint
roduceCRM i
nthecompany
Ther
ear
efourkeyst
epsf
orput
ti
ngonet
oonemar
ket
ingpr
ogr
am t
owor
k–

St
ep1:
Ident
if
yyourcust
omer
s
Tol
aunchaonet
oonei
nit
iat
ivet
hecompanymustbeabl
etol
ocat
eandcont
actaf
air
numberofcust
omer
soratl
eastasubst
ant
ialpor
ti
onofi
tsv
aluabl
ecust
omer
s.I
tis
cr
uci
alt
oknow t
hecust
omerdet
ail
sasmuchaspossi
ble,notj
ustt
hei
rnamesor
addr
ess,
butt
hei
rhabi
ts,
pref
erencesandsof
ort
h.

St
ep2:
Dif
fer
ent
iat
ingy
ourcust
omer
s
Cust
omer
sar
edi
ff
erenti
ntwopr
inci
palway
s,t
heyr
epr
esentdi
ff
erentl
evel
sofv
alue
andhav
edi
ff
erentneeds.Oncet
hecompanyi
dent
if
iesi
tscust
omer
sdi
ff
erent
iat
ing
t
hem wi
l
lhel
pthecompanyt
ofocusi
tsef
for
tst
ogai
nthemostadv
ant
agewi
tht
he
mostv
aluabl
ecust
omer
s.

St
ep3:
Int
eract
ingwi
tht
hecust
omer
I
nter
act
ioni
sal
soacr
uci
alcomponentofasuccessf
ulCRM i
nit
iat
ive.I
tisi
mpor
tantt
o
r
emembert
hati
nter
act
ion j
ustnotoccurt
hrough mar
ket
ing and sal
es channel
s,
cust
omeri
nter
acti
nmanydi
ff
erentway
swi
thmanydi
ff
erentar
easoft
heor
gani
zat
ion
sot
ofost
err
elat
ionshi
pal
lthear
easoft
heor
gani
zat
ionmustbeaccessi
blet
othe
cust
omer
.

St
ep4:
Cust
omi
zey
ourent
erpr
ise’
sbehav
ior
Ul
ti
mat
elyt
olockacust
omeri
ntoar
elat
ionshi
pacompanymustadaptsomeaspectof
i
tsbehav
iort
omeetcust
omer
’si
ndi
vi
dual
l
yex
pressedneedst
hismi
ghtmeanmass
cust
omi
zi
ngamanuf
act
uredpr
oductori
tmi
ghti
nvol
vet
ail
ori
ngsomeaspectoft
he
ser
vicesur
roundi
ngt
hepr
oduct
.
Rev
iewoft
heexi
sti
ngl
i
ter
atur
e

Wi
tht
heav
ail
abl
eli
ter
atur
ewecansummar
izeCRM i
nthewor
dsofv
ari
ousaut
hor
sas
f
oll
ows-

Accor
dingt
oShaniandChal
arani–Cust
omerRel
ati
onshi
pManagementmar
ket
ingcan
bedef
inedas“ani
ntegr
atedef
for
ttoi
dent
if
y,mai
ntai
nandbui
l
dupanet
wor
kwi
tht
he
i
ndi
vi
dualcust
omer
sandt
ocont
inuousl
yst
rengt
hent
henet
wor
kfort
hemut
ualbenef
it
ofbot
hpar
ti
es,
thr
oughi
nter
act
ive,
indi
vi
dual
i
zedandv
alueaddedcont
ract
sov
eral
ong
per
iodoft
ime.

I
nthewor
dsofLekha“
CRM ai
msatdel
i
ver
ing bet
terpr
oduct
sand v
aluet
othe
cust
omer
sthr
oughbet
terunder
standi
ngofhi
sneeds”

Concept
ual
i
zat
ion

Af
ir
minRedChi
efShoehast
omai
ntai
ngoodr
elat
ionswi
thi
tscust
omer
s.Theyhav
e
t
oret
aint
hecust
omer
sforal
ongt
imet
oav
ailt
hebenef
itoft
hei
rrel
ati
ons.The
cust
omerr
elat
ionshi
pmanagementi
soneoft
heef
fect
ivet
oolt
oident
if
y,est
abl
i
shand
mai
ntai
nrel
ati
onshi
pwi
tht
hecust
omer
s.Wi
tht
hehel
poft
hisr
esear
chwear
egoi
ngt
o
i
dent
if
ythei
mpor
tanceofCRM i
nRedChi
efShoe.
 

Focusoft
hepr
obl
em

TheRedChi
efShoei
sbasi
cal
l
ymanuf
act
uri
ngbasedi
ndust
ry.Thr
ought
hisst
udywe
ar
egoi
ngt
oident
if
ythei
mpor
tanceofCRM i
ntheRedChi
efShoe.Howi
tisbenef
it
ed
f
rom CRM? I
sther
e any r
elev
ance ofi
mpl
ement
ing CRM? And whatr
ole does
i
nfor
mat
iont
echnol
ogycanpl
ayi
nCRM?
Si
gni
fi
canceoft
hest
udy
TheCRM (
cust
omerr
elat
ionshi
pmanagement
)isani
ntegr
atedef
for
ttost
rengt
hent
he
net
wor
k ofr
elat
ionshi
pfort
he mut
ualbenef
itofbot
hthe par
ti
es.The bi
ggest
managementchal
l
engei
nthenew mi
l
leni
um ofl
i
ber
ali
zat
ionandgl
obal
i
zat
ion 
fora
busi
nessi
stomai
ntai
ngoodr
elat
ionshi
pwi
tht
heki
ng–t
hecust
omer
.

Thi
sst
udyi
sofgr
eatsi
gni
fi
cancebecause

 A5%i
ncr
easei
nthecust
omerr
etent
ionwi
l
lincr
easet
hepr
ofi
tupt
o125%.
 I
tcost
ssev
ent
imesmor
etoat
tractanewcust
omert
hant
oser
veanol
done.
 20%oft
hecompany
’sl
oyal
cust
omer
saccountf
ort
he80%ofi
tsr
evenues.
 Tost
udyoncust
omerr
elat
ionshi
pmanagementwoul
denabl
ether
esear
chert
o
knowaboutt
heCRM pr
act
icesadopt
edi
ntheRedChi
efShoe.

Obj
ect
ivesofCust
omerRel
ati
onshi
pManagement

a. Tost
udyt
hecur
rentpr
act
icesofCRM.
b. Tof
indoutt
hei
mpactofCRM ont
hepr
ofi
tabi
l
ityoft
heor
gani
zat
ion.
c. Tost
udyt
hef
act
orsaf
fect
ingt
heCRM pr
act
ices.
d. Tost
udyt
her
oleofi
nfor
mat
iont
echnol
ogyi
nCRM.

Resear
chMet
hodol
ogy
 
Ar
esear
chdesi
gni
ssi
mpl
yapl
anf
orst
udyi
ncol
l
ect
ingandanal
yzi
ngt
hedat
a.I
thel
ps
t
her
esear
chert
oconductt
hest
udyi
naneconomi
calmet
hodandr
elev
antt
othe
pr
obl
em.
Resear
ch met
hodol
ogy i
s a sy
stemat
ic way t
o sol
vear
esear
ch pr
obl
em.The
met
hodol
ogyshoul
dcombi
neeconomywi
thef
fi
ci
ency
.

Resear
chdesi
gn
Thest
udyconduct
edher
eisexpl
orat
orycum descr
ipt
ive.

Scopeoft
hest
udy
Thescopeoft
hest
udyi
sconf
inedt
oCompanyRedChi
efShoe.

Col
l
ect
ionoft
hedat
a
Ther
ear
etwot
ypesofdat
a.

Pr
imar
ydat
a –pr
imar
ydat
aist
hatdat
awhi
chi
scol
l
ect
edf
ort
hef
ir
stt
ime.Thesedat
a
ar
ebasi
cal
l
yobser
vedandcol
l
ect
edbyt
her
esear
cherf
ort
hef
ir
stt
ime.Ihav
eused
pr
imar
ydat
aformypr
ojectwor
k.

Secondar
ydat
a –secondar
ydat
aar
ethosedat
awhi
char
epr
imar
il
ycol
l
ect
edbyt
he
ot
herper
sonf
orhi
sownpur
poseandnowweuset
hesef
orourpur
posesecondl
y.

Dat
acol
l
ect
ion
Dat
a i
scol
l
ect
edt
hroughschedul
e.
 Dat
aAnal
ysi
s

Q1.BRANDPOSI
TIONI
NGOFSHOESI
NKANPURMARKET

Par
ti
cul
ar Respondent
Woodl
and 32
RedTape 25
RedChi
ef 43

r
esponden
5
0
4
5
4
0
3 r
esponde
5
3
0
2
5
2 sel
ect l
ancer

I
nter
pret
ati
on:
-

Themos
tpr
efer
redbr
andi
nKanpurmar
keti
sRe
dChi
ef(
43%)f
oll
owe
dby
Woodl
and(
32%)andRe
dTape(
25%)
.
 Q2.Whi
cht
ypeofshoesdoy
oul
i
ket
opur
chasemost
ly

Par
ti
cul
ar Respondent
Spor
ts 47
For
mal 40
Canv
as 18

school
shoes 5

r
espondent
5
0

4
5

4
0

3
5 r
espondent
2
0

1
5

1
0

5 spor
t f
orma canv
a school

I
nter
pret
ati
on:
-

I
ntheabov
egr
aphwef
i
ndoutwhi
cht
ype ofs
hoes c
ompanypur
chas
e.47% c
ompany
pur
chas
etheor
derofspor
tsshoes,
40%c
ompanypur
chas
etheor
deroff
ormalshoes,
18% c
ompanypr
eferst
eel
canv
asshoes,
andr
emai
ni
ng5%c
ompanypr
eferschool
shoes.
 Q3.Howdoy
ouknowRedChi
efshoes”
?

Par
ti
cul
ar Respondent

Adv
ert
isement 17
Ref
erences 33
Pastpur
chase 21
Sal
esper
sonsv
isi
t 20

Ot
herspeci
fy 9

3 3

3
0

2 2
2
2
1

1 No.of

1 9

0
Ader
ti
sement Pastpur
chaseSal
es Ot
her
per
son
visi
t

I
nter
pret
ati
on:
-

I
nthi
sques
tionwehav
ethes
urv
eyaboutt
hehowt
heot
hercompanys
houl
dknowaboutt
he
RedChi
efshoes.Wher
ether
esul
ti
sshownt
hat17% k
now t
hroughadv
ert
is
eme
nt,33%
ar
eref
erenc
es,
21%ar
epastpur
chas
eex
per
ienc
e,20%ar
esal
esper
sonv
isi
t
,9%ar
eot
her
.
 Q4.Hav
eyouhear
dthenameoft
heRedChi
efshoes”
?

Par
ti
cul
ar Respondent

Yes 64

No 36

7
6

4 3

No.of
3

0
Ye N

I
nter
pret
ati
on:
-

I
nthi
sques
tionwehav
eobser
vedt
heawar
enes
stok
now aboutt
hena
meofRedChi
ef
shoes.Wher
egr
aphi
cal
l
yre
sul
tshowst
hat64%peopl
ear
eknownaboutt
he Woodl
and
s
hoesand36%peopl
ear
enotk
nowaboutt
hena
meofRedChi
efshoes.
 Q5.Whi
cht
ypeofadv
ert
isementy
oudot
oat
tr
actmor
e?

Par
ti
cul
ar Respondent

I
nter
net 48

TV 22

Bi
l
lboar
ds 9

Newspaper 21

5 4

3
No.of
2 2
2

9
1

0
I
nter
ne T Bi
l
l Newspap

I
nter
pret
ati
on:
-
I
ntheabov
egr
aphr
epr
esentt
her
esul
tofwhi
chk
ind ofadv
ert
is
eme
nt at
tr
act mos
tl
y.
Wher
ether
esul
ti
s48%sayi
nte
rne
t,22%sayTV,
9%s
aysbi
l
lboar
ds,
21%newspapert
hi
s
ar
ethe r
esul
tint
hi
ssur
veywhi
chs
ugge
stt
oimpr
ovet
hewor
kmor
eonadv
ert
is
eme
nt
whi
chl
eadst
hegr
owt
hofc
ompany
.
 Q6.Ef
fectofpr
ice?

Par
ti
cul
ar Respondent
Yes 83
No 17

Ser
ies1

90

80

70

60

50

40 Ser
ies
1

30

20

10

0
y
e no
s

I
nter
pret
ati
on:
-

Anal
ysi
sshowst
hat83%r
espondent
schanget
hei
rpur
chasi
ngdeci
si
oni
fther
eisany
i
ncr
easei
npr
iceand17%r
espondent
sdonotchanget
hei
rdeci
si
onev
eni
fther
eisany
i
ncr
easei
npr
icebecauseofbr
andi
mage.
 Q7.Fact
orsaf
fect
ingt
hepur
chasi
ngdeci
sion?

Fact
ors Respondent

Pr
ice 27

Qual
i
ty 29

Si
ze 9

Br
andi
mage 16

Desi
gn 7

35

29
30
27

25

20
16
No.of
15
Respondent

9
10
7

0
Pr
ic qual
i si
z br
andi
m desi
e t
y e age gn

I
nter
pret
ati
on:
-
st
udi
esr
eveal
sthatpr
ice,qual
i
ty,si
ze,br
andi
mage and desi
gn f
allbet
ween
l
arge ex
tentandex
tentot
herat
tr
ibut
esl
i
kecol
oroft
heshoesl
i
esbet
weent
he
someex
tentandl
eastex
tent
.
Q8.Qual
i
tyofpr
oductRedChi
efshoes

Par
ti
cul
ar Respondent

Poor 3

Fai
r 26

Av
erage 22

Good 44

Ex
cel
l
ent 5

50

45 44

40

35

30
26
25 22 No.of
Respondent
20

15

10
5
3
5

0
Po Fai Av
era Goo Excel
l
or r ge d ent
I
nter
pret
ati
on:
-

I
ntheabov
egr
aphr
epr
esentt
hequal
i
tyofRedChi
efs
hoes
.Wher
ether
esul
tis3%i
spoor
,
26%i
sfai
r,
22%i
sav
erage,
44%i
sgood,
and5% i
sex
cel
l
entqual
i
tyofs
hoes
.So f
rom
t
heabov
eanal
ysi
swec
onc
ludet
hatmos
tlyr
espondentar
epr
ovi
dequal
i
ty.
Q9.Doy
ouhav
eanycompl
aintr
egar
dingt
hepr
oductorbr
and?

A.Yes

B.No

10
0

90

80

70

60

50

40

30

20

10

0 y
e n

I
nter
pret
ati
on:
-Accor
dingt
othi
squest
ion,
wecanseet
hat95%ofpeopl
ehav
enocompl
aint
s

r
egar
dingt
hepr
oductorabr
andandr
est5%ofpeopl
ear
ehav
ingt
hecompl
aint
s
aboutt
hepr
oduct
sorabr
and.
Q10.
Doy
oupr
eferbuy
ingt
hepr
oduct
sonl
i
ne?

A.Yes

B.No

7
0
6
0

5
0

4
0

3
0

2 y
e n

I
nter
pret
ati
on:
-
Accor
dingt
othi
sque
sti
on,
60%ofpeopl
ear
ebuy
ingt
hepr
oduct
son
li
ne
andr
est40%ar
enotbuy
ingt
hepr
oduct
sonl
i
ne.
 Q11Whatki
ndofchangesy
ouwanti
nthepr
oductofshoes.

(
a)Qual
i
ty (
c)Des
ign

(
b)Pr
ice (
dNochange

No
change Qual
i
ty
14% 29%

Pri
c
e
21%

Desig
n
36%

I
nter
pret
ati
on:36%peopl
ewantchangei
nthedesi
gnofshoes,29%peopl
esay
sthat
t
heywantc
hangesi
nthedesi
gnofshoes.Wher
eas21%peopl
esay
sthatt
heywant
c
hangesi
nthepr
iceofshoes.onl
y14% peopl
edoesnotwantanyc
hangesi
nthe
shoes.
 Q12Doy
ouhav
eanycompl
aint
saboutt
hepr
oduct
soft
hecompany
?

o Yes
o No

YE
S
17
YE
S
NO
83 N

I
nter
pret
ati
on:
Almos
t83%oft
hepeopl
esayt
hatt
heydonothav
eanyc
ompl
ai
nts
aboutt
hepr
oduct
soft
hecompany
.Sot
hecust
omersat
isf
act
ionr
ateoft
hecompany
i
sver
ygood.Andonl
y17%peopl
ear
enots
ati
sfi
edwi
t
hit
spr
oduct
s.
 FI
NDI
NGS

1. Most
lypeopl
ear
einf
luencedbyt
elev
isi
ont
obuybr
andedshoe.

2. I
nIndi
afi
rstpr
efer
enceoft
hecust
omer
sispr
iceoft
heshoes.

3. I
ndi
ahav
eagr
eatpot
ent
iali
nthef
oot
weari
ndust
rybutI
ndi
aar
enotf
ull
yut
il
ize

t
hei
rpot
ent
ial

4. Cust
omerwantt
oimpr
ovei
npr
iceandqual
i
tyofshoei
nIndi
a

5. Mostoft
hecust
omeri
snotf
ull
ysat
isf
iedwi
tht
hei
rexi
sti
ngshoeandcompany

shoul
dpr
ovi
det
hespeci
alof
fer
stot
hecust
omer
sfori
ncr
easi
ngt
hei
rgoodwi
l
l.

6. Thecompet
it
ioni
sver
yint
enseandt
hei
ncr
easeoft
her
esear
chdev
elopment

andt
headv
ert
isi
ngcanbev
eryhi
ghl
yexpensi
ve.

7. I
nthesur
veyi
thasbeenf
oundt
hati
sthemar
ketl
eader
.

8. Busi
nessman,ser
viceman and pr
ofessi
onal
s pr
efert
o wearf
ormalshoes

becauseofst
atusandst
udent
sli
ket
owearonl
yspor
tsandcasualbr
anded

shoes.

9. Somecust
omer
sar
enotawar
eaboutt
heexi
sti
ngshoebr
andsocompani
es

shoul
dexpenseonmar
ket
ingst
rat
egy
.

10. Noofout
letoft
hef
amousbr
andsar
eli
mit
edsocompani
esshoul
dexpandt
he

numberofout
let
.

11. Theat
hlet
icf
oot
weari
ndust
ryi
sast
rong,
mar
ketdr
iveni
ndust
ry.
 SUGGESTI
ONS

1. Depar
tmentst
oresar
ethepr
imesal
esandmar
ket
ingchannel
forbr
andedshoes.

I
naddi
ti
on,
stor
edecor
ati
ons

2. Pr
oductdi
spl
aysshoul
dbedesi
gnedt
ocr
eat
east
rongf
ir
sti
mpr
essi
on.

3. Seasonal
promot
ioncampai
gns,
li
kespeci
aldi
scount
sandadv
ert
isement
s,coul
d

beempl
oyed.

4. Newl
i
nesofcol
l
ect
ionsshoul
dbei
ntr
oducedf
orf
est
ival
s.

5. Thepr
icesofbr
andedshoesmustber
educedt
oincr
easesal
es.
 CONCLUSI
ON

RedTapehasbeent
hemaj
orcompet
it
orf
orREDCHI
EFSHOE.Thenewst
uffoft
her
ed

chi
efshoei
sat
tract
ingt
heconsumer
smor
ewhi
chmi
ghtl
edr
edchi
efshoeatt
het
op

spoti
nthepacki
ncomi
ngf
inanci
aly
ear
.Thepr
efer
encet
owar
dsREDCHI
EFSHOEgas

decr
easedov
ert
hel
astf
ewy
ear
s.Onl
y8%oft
hemar
keti
scov
eredbyr
edchi
efshoe

whi
chi
smi
ser
abl
easpert
hebr
andsst
andar
dsTher
eisr
est
ri
cti
vemanuf
act
uri
ngi
n

I
ndi
aofbr
andedpr
oduct
sandt
hebr
andedpr
oduct
sar
equi
teexpensi
veascompar
ed

t
oEur
opeanpr
oduct
s.I
ndi
ahashugepot
ent
iali
nthef
oot
weari
ndust
ry.Compani
es

shoul
dex
pandt
hei
rout
let
sformaki
ngt
hegoodwi
l
l.AndI
ndi
ancust
omer
sar
emor
e

pr
icesensi
ti
ver
athert
hanot
hercount
ri
essocompni
esshoul
dpr
ovi
det
hel
esspr
ice

shoewi
thhi
ghqual
i
tyi
ftheywantt
oincr
easet
hei
rpr
oduct
ivi
ty.Soi
ntheendwecan

sayf
oot
weari
ndust
ryi
songr
owi
ngt
rends.
 ANNEXURE

Name:
...
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
.

Age:
...
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..

Occupat
ion:
...
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..

Q.1whati
syouroccupat
ion?

Busi
nessman

Pr
ofessi
onal

Ser
viceman

Agr
icul
tur
ist

Anyot
her

Q.2Whati
syourannual
Income?

Bel
ow50000

50000-
100000

100000-
150000

150000-
200000

Abov
e200000
Q.3 whi
chbr
andofspor
tsshoesy
ouown?

Ni
ke

Redchi
efshoe

Puma

Ot
her

Q.4 Whati
sthemosti
mpor
tantf
act
orwhi
l
eyoupur
chasespor
tsshoes?

Pr
ice

Br
andname

Av
ail
abi
l
ity

Desi
gn

Scheme

Q.5 Whi
choft
hef
oll
owi
ngmember
spl
aykeyr
olei
ndeci
sionmaki
ngofpur
chaseof

spor
tsshoes?

Fr
iends

Fami
l
y

Coach

Sal
esper
son

Ot
her
Q.6 Whi
choft
hef
oll
owi
ngi
nfl
uencey
oui
nbuy
ingapar
ti
cul
arbr
andofspor
tsshoes?

Coupon

Di
scount

Fr
eegi
ft

War
rant
y

Ot
her

Q.7Towhatext
entpr
icet
agi
nfl
uencesy
ourpur
chasedeci
sionofspor
tsshoes?

Ful
l
ysat
isf
y

Sat
isf
ied

Di
ssat
isf
ied

Ful
l
ydi
ssat
isf
ied

Neut
ral

Q.8 Ar
eyousat
isf
iedwi
thcomf
ortl
evel
ofy
ourspor
tsshoes?

Ful
l
ysat
isf
ied

Sat
isf
ied

Di
ssat
isf
ied

Ful
ldi
ssat
isf
ied

Neut
ral
Q.9 Whatf
act
ormayi
nfl
uencey
out
oswi
tchov
ert
osomeot
herbr
and?

Pr
ice

Br
andname

Ref
erencegr
oup

Pr
omot
ional
scheme

Q.10 howi
syourpostpur
chaseexper
iencewi
thy
ourspor
tsshoes?

Excel
l
ent

Ver
ygood

Good

Av
erage

Poor

Q.11 y
oupr
efert
opur
chasespor
tsshoeson

Sal
edi
scountper
iod

Nor
mal
per
iod

Q.12 Ar
eyousat
isf
iedwi
tht
hedur
abi
l
ityofy
ourshoes?

Yes

No
Q.13whi
chsour
ceofAdv
ert
isementi
sinf
luencet
obuyapar
ti
cul
arbr
andofspor
ts

shoes?

Medi
a

Magazi
ne

Newspaper

Tel
evi
sion

I
nter
net

Ot
her

Q.14woul
dyour
ecommendy
ourspor
tsshoest
oot
her
s?

Def
ini
tel
yyes

Pr
obabl
yyes

Def
ini
tel
yno

Pr
obabl
yno
BI
BLI
OGRAPHY

ht
tps:
//www.
ncbi
.nl
m.ni
h.gov
/pubmed/
3944559

ht
tp:
//www.
madehow.
com/
Vol
ume-
1/Runni
ng-
Shoe.
html

ht
tp:
//sneaker
fact
ory
.net
/sneaker
s/2016/
07/
runni
ng-
shoe-
made/

ht
tp:
//sneaker
fact
ory
.net
/sneaker
s/

ht
tp:
//sneaker
fact
ory
.net
/sneaker
s/2015/
02/
how-
does-
a-f
act
ory
-make-
shoes/