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Executive summary
Cobbler&Kolachi abrand named after two things cobblers due to the effort our master cobblers put in
designing and assembling the shoes for our customers and Kolachi the old name of the city of light
Karachi where we have our very first outlet. Cobbler&Kolachi is a brand of luxury men’s footwear that
has beensuccessful incapturingthe market of men interested in designing their lives with aesthetics.
Cobbler&Kolachi since its establishment had only physical presence but it became evident that the
organization cannot rely on only physical presence. Facing this problem we assembled a social media
teamto enhance the amountof audience and bring this brand to life in the virtual world with the help
our pageson instgram,Facebookanda website for the convenience of our customers. Before we used
to targetonlypeople fromKarachi butnow thanksto the virtual presence we have beenable toincrease
the amount of targeted potential customers. We are new to this virtual world but we have been
successful in not only attracting potential customers but there have been constant rise in purchases
online.Inthisreportwe have conductedresearchonthe businessplanof thisorganizationinthe lightof
E-commerce.
Company description
Cobbler&kolachi the cosmopolitanbrandof luxuryman’sfootwearthatembodythe delicate andreal art
of handcraftingthatintensifiesthe personalityof those wearingit.Cobbler&kolachi ishonoredin
bringingthe highestqualityof luxuriesmen’sdressshoesinthe market.Cobbler&kolachibringsthe
designingwondersintorealitywithatouchof Italianclass.Devotedtoitsclass,cobbler&kolachi is
steadfastinpresentingthe wondersinthe designingworldof luxurymen’footwear,hereaesthetics
meetsperfection.
Company history
The art of handcraftedshoesconsidered an endangered art threatened by the mass production skill of
machines and convenience that these shoe producing organizations offer. The founder of
Cobbler&Kolachi abominatedthe decline in quality of shoes compared to their price whilst the real art
of handmade shoes was facing the threat of extinction due to lack of sales and designs. The aesthetic
sense of founderblendedwiththe picturesque artof handmade shoes gave birth to the brand founded
at the heart of Pakistan’s most famous city renowned for its highly skilled Cobblers, Karachi.
Cobbler&Kolachi true toitspledgesaims to reach the peak of professionalism and conquer the market
with the help of this professionalism and high quality.
Cobbler&Kolachi the cosmopolitanbrand that vows to deliver men’s luxury footwear that embody the
delicate andreal art of handcraftingthatintensifiesthe personalityof those wearingit. Cobbler&Kolachi
inspiredbythe decliningqualityof shoesandconserve the diminishingartand skill of handmade shoes.
The aim of conservingthe delicate of art of handmade shoes pushed towards extinction in Pakistan by
the factors such as convenience and lack of knowledge about this art in the new generation has been
driving force behind the realization of the idea of Cobbler&Kolachi.
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Vision Statement
”Cobbler&kolachi envision to become cosmopolitan brand of luxury men’s footwear that embody the
delicate and real art of handcrafting that enhance the personality of those wearing.”
Mission statement
Cobbler&Kolachi takespride inrevivingthe real artof handmade shoesinthe worldwhere the mass
productionhave declinedthe qualityof shoes.We provide perfectlyaesthetic,comfortableandreliable
men’sdressshoes.Cobbler&Kolachi aimstoreachthe peakof professionalismandconquerthe market
withthe helpof professionalismandhighqualityproductsthathave the essence of passion,perfectin
aestheticsandunmatchedinquality.The handcraftingmastercobblershave longbeenforgottenand
theirnumbers are declining,we aimtopreserve these artisans.
Products and services
The products offeredbyCobbler&Kolachi are handmade shoes,handmadewalletsand handmade waist
belts. Out of these products we offer a wide range of handmade shoes and wallets on our online
platform. Everyshoesandwalletisassembledwithdelicacyof excellentlychosenraw materialstofulfill
the necessityof modern,cosmopolitan man who love to stay a step ahead in the designing world with
theirfashion,butwiththe advantage of highquality.The factorof qualityhasalwaysbeenthe thingthat
the brand takespride upon and to achieve this goal, raw materials are chosen with flawless vision and
experienced hands. Our team has been successful in merging the high quality with modern design
attaining the elevated class, quality and satisfaction. Currently we have pages on instagram and
Facebookandwe also provide the servicesof online shopping on our website. Our products have been
successful in capturing online audience interest and there has been rise in online sales.
Current status
Cobbler&Kolachi has been working since 6 months and since its establishment there has been a
constantrise in the online sales.Recentlytwoweeksagowe startedour website and there have been a
constantincrease inthe inflowof customersandpurchasesonourwebsite.There was some difficulties
on the social mediaplatformsasa vaststream of people wouldjust ask about the price of products and
but wouldnotbuyit due to highpricesof product. On website we mostlyhaveaudience thatisaware of
the price and isthere to buythe product.Currentlydue tothe wedding season there has been a hike in
the product sale anddue to smart marketingstrategyof Cobbler&Kolachi,we have beenableto capture
the interest the vast audience of market.
Legal status and ownership
Cobbler&Kolachi hasbeenregisteredonSECPand itis registeredasprivate limited.The ownership
statusof Cobbler&Kolachi issole proprietorshipandisownedbyJahanzaib Ali kaimkhani.
Key partnerships
Cobbler&Kolachi hasbeensuccessful incollaboratingwithIsmail farid, sameer sain and Gul Ahmad and
has conducted mutual advertisements with these brands. This has helped Cobbler&Kolachi in driving
much neededattention from a wide range of customers. There are shoes and articles available on the
outlets of these brands which will help the brand in bringing in more customers.
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Industry analysis
The footwearindustryinPakistanisstrivingtoembarkonan aggressive expansion driveincomingyears
inan attemptto meetdomesticdemandandwardoff a growingthreatfromthe unorganizedsector.
Footwearproductionworldwidereached24.2billionpairsin2018, havinggrownby2.7% overthe
previousyear.Since the firstedition of thisYearbook,andbywayof comparisonwith2010, footwear
manufacturingworldwide hasexpandedby20.5%. Intermsof itsgeographical distribution,production
continuestobe heavilyconcentratedinAsia,where almost9out of each10 pairs of shoesare
manufactured.Global footwearexportsincreasedforthe secondconsecutiveyearin2018, settinga
newall-time maximumof 142 billiondollars.However,intermsof volume,thisisstill belowthe 15.2
billionpairsrecordsetin2015. Growth wasunevenlydistributedingeographical terms.Chinaisthe
originof almosttwothirdsof all footwearexports,butitsmarketshare fell againin2018. Since 2010
China’sshare inworldwide exportshasnow lost9 percentage points
PESTELANALYSIS
Political i
The political situationof Pakistanbeingunstable andfragilehasbeenamajorfactor inplayinga
negative role inthe developmentof local businesses.Althoughthere hasbeenadevelopmentand
improvementinthe political systemof Pakistanbutstill there isneedformore improvement.Butthis
uncertaintyandinstabilitycreatesgapinthe marketand we are to exploitthatgap.Recentlythe prime
ministerstartedaninitiative todigitalizePakistanandatop google executiveleftherpositiontohelp
prime ministerinthiscause.Thisinitiative will helpusasthe more audience isdrawntowardsdigital
worldthat meansmore potential customersforus.
Economical
The economicconditionof Pakistanhasbeendecliningrecentlydue tohighinflationandtaxationpolicy
of the government.The governmentpoliceshave beenstubbornregardingthe revival of economic
conditionof the countryand thishas ledtothe decline inthe buyingpowerparityof the customer.The
handmade productsare oftenconsideredasluxuriesandthe decreasingbuyingpowerparityof
consumerhasaffectedthe salesof manyorganizationseventosuchas extentthatlarge manufacturing
organizationshave eithersloweddowntheirproductionorstoppedcompletely.
Social
The social system of Pakistanhasbeenstagnantsince the dawnof thiscenturywithverylittle changes.
AlthoughPakistan’ssocialstructure ismostlycomposedof younggenerationwhichhasbeenidentified
as an opportunityforforeigncountriesandcompaniestoexploit.The social structure of Pakistanatthe
momentstandsat the pointwhere the customsandvaluesof the culture are praisedabove everything.
The handmade productsare enshrinedinthe culture of Pakistananditisconsideredaluxury.Since the
dawnof industrial age the handmade productshave facedthreatfromthe machine made productsbut
recentlythe conceptof handmade productwasrecentlyrevivedandthere hasbeenincrease inthe sales
of productsmade withhands.
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Technology
The technological conditionsinthe countryare overall average andthere hasbeenimprovementinthe
technological fieldof the country.Butwhencomparedto the othercountriesof the worldPakistan
mightbe 5-6 yearsbehindintechnology.Thoughthe currentgovernmenthasshownsome interestin
the developmentof technologyinthiscountry.Althoughthe handmade productsindustryinPakistanis
dependentonthe humanintellectanthe technological changeswill notsomucheffectthe product
processof the handmade productsbutit will surelyaffectthe workingconditionof artisansworkingin
the industryof handmade products.
Environmental
The environmentallawsandregulationsof Pakistanare strictbutlack implementation.The handmade
productindustryhasno certainthreatsto the environmentallawsandinthe realisttermsnothreatat al
to the environment.Thismeansthatthe industryof handmade productcanbe exemptedfromthe
possibilityof everhurtingthe environmentata great level.The machine made productsare famousfor
theirdamage to the environmentandalthoughthe companiesare movingtowardsgreenmanagement
but the handmade productindustryisfamousfortheirminimal damage tothe environmentandreliable
inquality.
Legal
The handmade productsindustryis rathera small industryandthere have beennocertainlegal actions
takenagainstany organizationinthe industry.The legal lawsof Pakistanhelpreserve the humanassets
whoare mastersinassemblingthe handmade products.Pakistanihandmade products are famousall
aroundthe worldfromhandmade footballsusedinFIFA toshoesthatPakistanhasbeenexporting.
Porters five forces
Barriers to entry- Low
The barriersto entryin the handmade productsindustryare low asthe requirementsforthe entryinthe
industry are achievable. Since there have been a lot of websites and apps offering an opportunity for
people tosale theirproducts online, the need for physical presence can also be neglected. The cost of
productionof handmade productsvaryfromproduct to product but the profit earned on the product is
very much high. Thus it can be identified that the barriers to the entry of the market is low. Another
aspect is that this industry is on small scale and there are no big competitors.
Bargaining power of suppliers- Low
The bargainingpowerof suppliersislowasthe raw materialsrequired for the production of handmade
products is mostly available and there are a large number of suppliers available in the market.
Aforementioned, the handmade product industry is small and the competitors in the market are new,
with the entry of new players in the market the bargaining power of suppliers might increase in the
future at the momentthe numberof suppliers is higher compared to the organizations present to turn
those raw materials into refined products.
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Bargaining power of buyers- High
The bargainingpowerof buyersishighas there are substitutesavailable inthe marketand the numbers
of competitors are increasing. Aside from these reasons the prices of handmade products is higher
comparedto theirsubstitute counterparts,whichresultsinthe highbargainingpowerof customers.The
high barging power of customers is also due to the decline in the interest of people to buy the
handmade products.
Threat of substitutes-moderate
The substitutes available in the market are moderate as there is substitute available for all the
handmade productsinthe formof machine made products.The handmade shoeshave the substitute of
machine made shoes and they are much cheaper then the handmade shoes which results in more
attractionof customerstowardsthe cheaperproducts.Buthandmade shoeshave beenable tocompete
withthese substitute products at a small level but if compared in the terms of sale the machine made
shoes outnumber the handmade shoes by a large number.
Competitors- Moderate
The number of competitors in this market is moderate as mentioned before due to low entry barriers
there have been increase in the number of competitors. in the industry of handmade shoes the
competitorsare increasing due to the concept of customized high quality shoes instead of low quality
machine made shoes.
SWOT analysis
Cobbler&Kolachi thoughrecentlyestablishedhasbeenable to strive in some particular fields known as
strengthsandidentifieditsweaknessesandopportunitiestobe exploitedandthe threatsin the market.
Swotanalysishelpsusinidentifyingthe basicbusinessoperationsof the organizationsandthe weakness
that is present in their operations along with the opportunities available for them to exploit in the
future.
Strengths
 Qualityandreliabilityof the product
 Productdesign
 Wide range of handmade pure leatherproducts
 5 yearGuarantee and warrantyof products
performance andstitching.
 Alreadyappreciatedandwornbycelebrities.
Strengths
 Qualityandreliabilityof the product
 Productdesign
 Wide range of handmade pure leatherproducts
 5 yearGuarantee and warrantyof products
performance andstitching.
 Alreadyappreciatedandwornbycelebrities.
Weakness
 Highprices
 Doesnot have womenandkidsshoes
 Lack of resources
 Onlyone outlet
 Notpresentinany othermajorcity
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Market analysis
Despite havingnumerousadvantagesPakistanhasnotbeenable tomake a mark in the global footwear
industry. With yearly exports of only $110 million, our share in global footwear exports is only 0.001
percent.All othercountriesinthe regionare exportingmuchmore.These include India,Bangladesh and
Sri Lanka.Indianexportsare $10 billionperyear,Vietnamexportsfootwear worth $6.23 billion. India is
five times larger than Pakistan and its leather profile is similar, but our footwear exports are only one
percent of the Indian footwear
exports. However, we have the
potential to multiply our exports.
The main strength of the footwear
industryisthe availabilityof topquality
leather in Pakistan. Leather shoes are
stitched by hand and we have the
humanresource withthisexpertise;all
they need is a little training. We
estimate thatthe total footwearmarketof PakistanisworthRs250 billion,outof which footwear worth
Rs100 billionisimportedmostlyfromChina.We are infact eyeing sizable investment in footwear from
Chinaunderthe CPEC. The Chinese will look for low wage human resource available in Pakistan as the
wages in China are four times higher.
The share of domesticproducersinthe Pakistani market is Rs150 billion out of which only 20 percent is
produced by the documented sector. The total requirement of footwear in Pakistan is around 600
millionpairsperyear.Ourestimate isthatwomenbuybetween4-6pairs of footwear per year and men
1-2. For children the average is 1-3 pairs. This usage is very low as the global average is 8-10 pairs for
women per year, whereas 2-4 pairs of footwear are purchased by men every year. The analysis of the
marketsuggest that there is a lot of gap present in the market and organizations like Cobbler&Kolachi
can exploitthisopportunityandcapture the marketneeds.Withthe above mentioned facts and market
analysisCobbler&Kolachi cansegmentthe marketaccordinglyandcreate amarketniche whichwill help
in better targeting of potential customers.
Target market
It has been made evident that the target market of Cobbler&Kolachi is men with aesthetic quality
conscious mind. It is evident that this market is very vast and to make things easy for the company in
their process of analyzing the potential customers according to their preferences of design they want
whatkindof leathertheywant. The constantly evolving taste of the consumers and the innovations in
the productscan helpthe Cobbler&Kolachidrive apropersubsettodivide markettoeasilyhighlight the
potential customersinthe market.Thisprocessiscalledmarketsegmentation and product positioning.
The proper market segmentation and product positioning will prove to be key factor in solving the
problemof gainingthe competitive advantage in the market. The market analysis have confirmed that
menare more engagedinthe online shoppingandwiththe helpof otherstatisticsitisevident that men
buy 1-2 pairs of shoes in a year, with the help of these statistics we can target a number of potential
Opportunities
 Womenorientedproducts
 Low price range productsto target largermarket
 Collaborationwithotherbrandstotarget wider
marketaudience
 Expansioninmajorcities.
Threats
 Increasingcompetitioninhandmade shoes
industry
 Decrease inthe buyingpowerparityof
customers
 Economicdownfall andinstability
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customers.Rightnowwe have launchedmore than15 online advertisement campaigns firstly targeting
specificallymenwiththe range of age between18-55and firstlyinKarachi and thenin all over Pakistan.
Market segmentation
Market segmentationisthe processof dividingthe broadcustomermarketintosubgroupsbasedon
some typesof sharedcharacteristics.We have segmentedthe marketaccordingtodata provided
throughthe statistical analysisandthishashelpedusinidentifyingindepththe attributesof the
potential consumers.We have focusedsolelyoncustomersegmentof menagedbetween18-55.To
save time forthe customersof thisage we have designedamethodforour online customerswithwhich
we can easilyandefficientlyresponse to.Itisevidentthroughthe datathat the menagedbetween18-
24 are engaged23% more inthe online transactionscomparedtootherage groups.Thiswill helpus
designouradvertisementsinordertoattract thismarketsegment.Asthisage groupboth have time and
technological knowhow whichmeansthattheyhave abetterchance of becomingourcustomers.
Marketing plan
The marketingplanforCobbler&Kolachihasbeenderivedwiththe properuse of statistics and research
in the field of consumer behavior. Through this research we have been able to develop a proper
mechanismthroughwhichwe cantarget maximumamountof customerswithlow cost.Thisprocesshas
helpednotonlyindrivingattentiontowardsourorganizationbutalsohelpusanalyze the process being
used for marketing.
Overall marketing strategy
The marketingstrategyof Cobbler&Kolachi isdependentonthe customertrendsandcustomer
behavior.Withthe shiftinthe global trendof customer-centricorganizationswe have hiredpeople with
extensive experience inthe fieldof dealingwithcustomers.Withthe shiftinthe customerdemandsand
theirpreferencesmovingtowardsmore customizedproducts,Cobbler&Kolachihasintroducedthe
conceptof customizedhandmadeshoeswhichhasbeenreceivedbythe customerswithgreatappraisal.
The concept of product customizationisimplementedinthe organizationsinrealisticmannerandgiven
itsdue importance.The excellentcustomerservice hasbeenakeydriverinthe successof
Cobbler&Kolachi productsonline.Butabove all the mostimportantmarketingtechniqueswe use forthe
promotionof ourproducts ismentionedbelow
 ThroughcollaborationwithIsmail Farid,SameerSainandGul Ahmadgivingusthe much needed
attentionfromthe audience.
 PhotoshotwithnotoriousmodelslikeHusnainLehri andAbdullahjaved one of the leading
modelsof Pakistan
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 Pakistanleadingactorsfromfilmanddramaindustryrecommendanduse ourhandmade shoes
on special occasionsuchas Hum awards.The actor Ali Rehman Khanwore the shoeswhile being
the host of Luxstyle awards.
 ConstantpaidpromotioncampaignsoninstagramandFacebookto targetvast amountof
audience available ononline plateforms.
 Cobbler&KolachiwillsoonstartshowingadsonYoutube whichwill helpenhance the amountof
people targetedandincrease inthe numberof potential customers.
 Word of mouth andpeeradvertisementone of the classicmethodsof marketingisalready
beingutilizedinourmarketingstrategyandhasbeensuccessful indrawingmore customers
towardsthe brand.
 Marketingthroughpromotionsonourproducts onspecial occasionssuchas Eid and
Independence Day.
Management team
Managementteamsare importantand workas a spine forany organization.Propermanagementof
your humanresource isone of the keyfactorsthat helpanorganizationgaincompetitive advantage.
Cobbler&Kolachi beingestablishedjust6monthsagohave a verybasicand simple managementteam
but veryeffective,efficientandfull of enthusiasm.Inthisreportwe will trytoexplainthe structure of
thisorganizationandanalyze the taskperformedbythe managementteam.
Organization structure
The chief executiveof Cobbler&Kolachi isMr. JahanzaibAli Kaimkhanithe ideaproviderandthe person
whogave thisdream a touch of realizationandbroughtitinthe market. His knowledgeaboutthe
handmade shoesandthe designthatlooklike theycome fromthe greatartisansimagination.The
operationsandfinance manageris Mr. Wali Ahmadwhowas the advisorinbringingthisideaintoreality
and nowhandlesthe general operationsandthe financialoperationsof Cobbler&Kolachi.The marketing
manageris the talentedyoungsterMr. Ahsanwhohas beenable insuccessfullydesigningthe marketing
strategy.Thusthe mixture of these three competentandtalentedpeoplethe organizationhasbeenable
Chief executive
Operations and
finance manager
Marketing
manager
Social media
team manager
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to thrive inthe handmade shoesmarket.The social media managerisMr.AbdullahMustafathe content
writeralongwithMs. ShamimArawho came up withthe ideaof bringingthisorganizationinthe virtual
worldand Mr. JunaidIslamisresponsible forhandlingthe customerqueriesregardingthe productand
handlesall the ordersplacedonline.Recentlywiththe helpof teamworkbetweenthe managersof
these departmentswe successfullylaunchedourwebsite,whichonthe firstdayof itslaunchlandeda
customer.
Operations Plan
The operations at Cobbler&Kolachi are simple yet complex. The outlet in Karachi is equipped with
enough products to cater the needs of customers based out of Karachi and if we receive and online
order and those shoes are available on our outlet we ship that product to the customer. For facebook
and instagramordersfirstthe customerchose the design of shoes or wallet of his/her choice after that
throughmessage the customerinformsoursocial mediaaboutthe requirementsorchangesthathe/her
wantsin the shoes.Afterconfirmingthe article of his/her choice the customer is asked to provide with
the address and contact information for the delivery purposes of the product. The customer has two
choicesof paymenteitherthroughonlinetransfer in the Cobbler&Kolachi band account or payment on
delivery.Toplace ordersonour website youcansimplychoose the productyouwantto buy andplace it
inthe cart and you will see the exact total charges you will have to pay for the product, in second step
you will be asked about the payment method either cash on delivery or through credit card and once
youhave chosenthe paymentmethodyouwill receive aconformatione-mail withthe details about the
purchase and the delivery time of the product. If you chose to pay for the product through credit card
youwill be askedtosubmitsome informationaboutyourcreditcard which is ensured that C&K will not
save that informationanditwill be processed through secure online banking. Like regular transactions
you will receive conformation slip via e-mail or text message.
The time for delivery within Pakistan will take 10-12 working days, 20-22 working days for overseas
delivery. Customer care is the concept enshrined and embedded in the core values of C&K. and our
customer care team is working 24/7 to answer any query regarding the product or assist in any matter
regardingthe C&Kproducts.Cobbler&Kolachimustbe contactedbefore makinganyreturn.The product
can be returnedwithin10daysafterdelivery. The product refunded will be processed within 2 days of
return of product back to us. The refund will only be applicable on the products that are in new
conditionand unused. If you want to switch to another size in the same product or you want to switch
to another product? No problem, just contact us. The customer will pay for shipping cost of returned
and exchanged goods. This refund policy is applied on both online and store purchases.
General approaches to operation and business location and equipment
The general approachto our operationsverysimple,customercancontact us onour Facebookand
Instagrampagesand throughthe contact numberprovidedonbothpagesandon the website aswell.
There has beenagreat flowof trafficon ourpagesand on our website andoursocial mediateamhas
beensuccessful inansweringtheirqueriesintime andaccordingtotheirquestions. Aforementioned,
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Cobbler&Kolachi have anoutletinKarachi andit isalsopresentinthe virtual worldonFacebook,
Instagramand on website. Thereare noequipmentprovidedtothe social mediateambuttheygetpaid
for the contentandfor dealingwiththe customers.The social mediateamworksonflexiblehourswhich
enable ustocontinue ourstudiesandalsohelpusget extensive knowledgeaboutthe corporate world.
Product designand development
The product designisbasedonthe italianandenglisgclassicdesigns.Cobbler&Kolachi is the first brand
inPakistanthat hasbeenable toinduce the classic designs with the modern smart mans requirements
and thusresultinginshoesthatare inimitable.The developmentof productsisbaseduponthe changing
customerpreferencesand the feedback we receive from the customers. Furthermore as evident from
our slogan “Where aesthetics meets perfection” we are focused on the high quality and best design a
man look upon. Some of the main components of our product design are mentioned below
 Aesthetics
 Highquality
 Handmade art
 Conformity
 Inimitability
 Aftersale services
These are the factors that play a key role in the development and in the designing process of our
products.Thishas beenat the very core of Cobbler&Kolachi and it takes pride in being the pioneers in
reviving the art of handmade shoes in Pakistan. This has become the driving force in our day to day
operations.
Challenge and risks
Whenever conducting a business there are always risks and challenges in the market. The biggest and
the most important challenge is the threat of competitors. As mentioned before the barriers to the
entry in the handmade shoes market is low and thus leading to new entrants which results in more
competition.Thencomesthe everchangingpreferencesof consumersandthe social changes that occur
due to eitherpoliticaloreconomicconditionsof the country. And recently due to heavy taxation in the
recenttime bythe governmentthere hasbeenhike inmanufacturingcostsandthusleadingtodecrease
inprofitsgeneratedfromthe sales.Thenthe delayinmanufacturingisanotherone of the challenges as
during this season of wedding and functions there has been a hike in the demand of our products but
the manufacturing time of our product ranges from 5-6 days and thus sometimes resulting in delay
manufacturing of products.
12
Intellectual property
As mentionedbeforeCobbler&KolachiisregisteredwithSECPanditisregisteredasprivate limited.The
name,logoand sloganof Cobbler&Kolachi isregisteredandcopyrightedandcannotbe imitated.
Cobbler&Kolachi hasbecome astrongbrand due to its highqualityandperfectioninaesthetics.
Therefore ourmastercobblersare ourintellectualpropertyandwe treatthemassuch.

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E commerce final handmade shoes Cobbler&Kolachi

  • 1. 1
  • 2. 2 Executive summary Cobbler&Kolachi abrand named after two things cobblers due to the effort our master cobblers put in designing and assembling the shoes for our customers and Kolachi the old name of the city of light Karachi where we have our very first outlet. Cobbler&Kolachi is a brand of luxury men’s footwear that has beensuccessful incapturingthe market of men interested in designing their lives with aesthetics. Cobbler&Kolachi since its establishment had only physical presence but it became evident that the organization cannot rely on only physical presence. Facing this problem we assembled a social media teamto enhance the amountof audience and bring this brand to life in the virtual world with the help our pageson instgram,Facebookanda website for the convenience of our customers. Before we used to targetonlypeople fromKarachi butnow thanksto the virtual presence we have beenable toincrease the amount of targeted potential customers. We are new to this virtual world but we have been successful in not only attracting potential customers but there have been constant rise in purchases online.Inthisreportwe have conductedresearchonthe businessplanof thisorganizationinthe lightof E-commerce. Company description Cobbler&kolachi the cosmopolitanbrandof luxuryman’sfootwearthatembodythe delicate andreal art of handcraftingthatintensifiesthe personalityof those wearingit.Cobbler&kolachi ishonoredin bringingthe highestqualityof luxuriesmen’sdressshoesinthe market.Cobbler&kolachibringsthe designingwondersintorealitywithatouchof Italianclass.Devotedtoitsclass,cobbler&kolachi is steadfastinpresentingthe wondersinthe designingworldof luxurymen’footwear,hereaesthetics meetsperfection. Company history The art of handcraftedshoesconsidered an endangered art threatened by the mass production skill of machines and convenience that these shoe producing organizations offer. The founder of Cobbler&Kolachi abominatedthe decline in quality of shoes compared to their price whilst the real art of handmade shoes was facing the threat of extinction due to lack of sales and designs. The aesthetic sense of founderblendedwiththe picturesque artof handmade shoes gave birth to the brand founded at the heart of Pakistan’s most famous city renowned for its highly skilled Cobblers, Karachi. Cobbler&Kolachi true toitspledgesaims to reach the peak of professionalism and conquer the market with the help of this professionalism and high quality. Cobbler&Kolachi the cosmopolitanbrand that vows to deliver men’s luxury footwear that embody the delicate andreal art of handcraftingthatintensifiesthe personalityof those wearingit. Cobbler&Kolachi inspiredbythe decliningqualityof shoesandconserve the diminishingartand skill of handmade shoes. The aim of conservingthe delicate of art of handmade shoes pushed towards extinction in Pakistan by the factors such as convenience and lack of knowledge about this art in the new generation has been driving force behind the realization of the idea of Cobbler&Kolachi.
  • 3. 3 Vision Statement ”Cobbler&kolachi envision to become cosmopolitan brand of luxury men’s footwear that embody the delicate and real art of handcrafting that enhance the personality of those wearing.” Mission statement Cobbler&Kolachi takespride inrevivingthe real artof handmade shoesinthe worldwhere the mass productionhave declinedthe qualityof shoes.We provide perfectlyaesthetic,comfortableandreliable men’sdressshoes.Cobbler&Kolachi aimstoreachthe peakof professionalismandconquerthe market withthe helpof professionalismandhighqualityproductsthathave the essence of passion,perfectin aestheticsandunmatchedinquality.The handcraftingmastercobblershave longbeenforgottenand theirnumbers are declining,we aimtopreserve these artisans. Products and services The products offeredbyCobbler&Kolachi are handmade shoes,handmadewalletsand handmade waist belts. Out of these products we offer a wide range of handmade shoes and wallets on our online platform. Everyshoesandwalletisassembledwithdelicacyof excellentlychosenraw materialstofulfill the necessityof modern,cosmopolitan man who love to stay a step ahead in the designing world with theirfashion,butwiththe advantage of highquality.The factorof qualityhasalwaysbeenthe thingthat the brand takespride upon and to achieve this goal, raw materials are chosen with flawless vision and experienced hands. Our team has been successful in merging the high quality with modern design attaining the elevated class, quality and satisfaction. Currently we have pages on instagram and Facebookandwe also provide the servicesof online shopping on our website. Our products have been successful in capturing online audience interest and there has been rise in online sales. Current status Cobbler&Kolachi has been working since 6 months and since its establishment there has been a constantrise in the online sales.Recentlytwoweeksagowe startedour website and there have been a constantincrease inthe inflowof customersandpurchasesonourwebsite.There was some difficulties on the social mediaplatformsasa vaststream of people wouldjust ask about the price of products and but wouldnotbuyit due to highpricesof product. On website we mostlyhaveaudience thatisaware of the price and isthere to buythe product.Currentlydue tothe wedding season there has been a hike in the product sale anddue to smart marketingstrategyof Cobbler&Kolachi,we have beenableto capture the interest the vast audience of market. Legal status and ownership Cobbler&Kolachi hasbeenregisteredonSECPand itis registeredasprivate limited.The ownership statusof Cobbler&Kolachi issole proprietorshipandisownedbyJahanzaib Ali kaimkhani. Key partnerships Cobbler&Kolachi hasbeensuccessful incollaboratingwithIsmail farid, sameer sain and Gul Ahmad and has conducted mutual advertisements with these brands. This has helped Cobbler&Kolachi in driving much neededattention from a wide range of customers. There are shoes and articles available on the outlets of these brands which will help the brand in bringing in more customers.
  • 4. 4 Industry analysis The footwearindustryinPakistanisstrivingtoembarkonan aggressive expansion driveincomingyears inan attemptto meetdomesticdemandandwardoff a growingthreatfromthe unorganizedsector. Footwearproductionworldwidereached24.2billionpairsin2018, havinggrownby2.7% overthe previousyear.Since the firstedition of thisYearbook,andbywayof comparisonwith2010, footwear manufacturingworldwide hasexpandedby20.5%. Intermsof itsgeographical distribution,production continuestobe heavilyconcentratedinAsia,where almost9out of each10 pairs of shoesare manufactured.Global footwearexportsincreasedforthe secondconsecutiveyearin2018, settinga newall-time maximumof 142 billiondollars.However,intermsof volume,thisisstill belowthe 15.2 billionpairsrecordsetin2015. Growth wasunevenlydistributedingeographical terms.Chinaisthe originof almosttwothirdsof all footwearexports,butitsmarketshare fell againin2018. Since 2010 China’sshare inworldwide exportshasnow lost9 percentage points PESTELANALYSIS Political i The political situationof Pakistanbeingunstable andfragilehasbeenamajorfactor inplayinga negative role inthe developmentof local businesses.Althoughthere hasbeenadevelopmentand improvementinthe political systemof Pakistanbutstill there isneedformore improvement.Butthis uncertaintyandinstabilitycreatesgapinthe marketand we are to exploitthatgap.Recentlythe prime ministerstartedaninitiative todigitalizePakistanandatop google executiveleftherpositiontohelp prime ministerinthiscause.Thisinitiative will helpusasthe more audience isdrawntowardsdigital worldthat meansmore potential customersforus. Economical The economicconditionof Pakistanhasbeendecliningrecentlydue tohighinflationandtaxationpolicy of the government.The governmentpoliceshave beenstubbornregardingthe revival of economic conditionof the countryand thishas ledtothe decline inthe buyingpowerparityof the customer.The handmade productsare oftenconsideredasluxuriesandthe decreasingbuyingpowerparityof consumerhasaffectedthe salesof manyorganizationseventosuchas extentthatlarge manufacturing organizationshave eithersloweddowntheirproductionorstoppedcompletely. Social The social system of Pakistanhasbeenstagnantsince the dawnof thiscenturywithverylittle changes. AlthoughPakistan’ssocialstructure ismostlycomposedof younggenerationwhichhasbeenidentified as an opportunityforforeigncountriesandcompaniestoexploit.The social structure of Pakistanatthe momentstandsat the pointwhere the customsandvaluesof the culture are praisedabove everything. The handmade productsare enshrinedinthe culture of Pakistananditisconsideredaluxury.Since the dawnof industrial age the handmade productshave facedthreatfromthe machine made productsbut recentlythe conceptof handmade productwasrecentlyrevivedandthere hasbeenincrease inthe sales of productsmade withhands.
  • 5. 5 Technology The technological conditionsinthe countryare overall average andthere hasbeenimprovementinthe technological fieldof the country.Butwhencomparedto the othercountriesof the worldPakistan mightbe 5-6 yearsbehindintechnology.Thoughthe currentgovernmenthasshownsome interestin the developmentof technologyinthiscountry.Althoughthe handmade productsindustryinPakistanis dependentonthe humanintellectanthe technological changeswill notsomucheffectthe product processof the handmade productsbutit will surelyaffectthe workingconditionof artisansworkingin the industryof handmade products. Environmental The environmentallawsandregulationsof Pakistanare strictbutlack implementation.The handmade productindustryhasno certainthreatsto the environmentallawsandinthe realisttermsnothreatat al to the environment.Thismeansthatthe industryof handmade productcanbe exemptedfromthe possibilityof everhurtingthe environmentata great level.The machine made productsare famousfor theirdamage to the environmentandalthoughthe companiesare movingtowardsgreenmanagement but the handmade productindustryisfamousfortheirminimal damage tothe environmentandreliable inquality. Legal The handmade productsindustryis rathera small industryandthere have beennocertainlegal actions takenagainstany organizationinthe industry.The legal lawsof Pakistanhelpreserve the humanassets whoare mastersinassemblingthe handmade products.Pakistanihandmade products are famousall aroundthe worldfromhandmade footballsusedinFIFA toshoesthatPakistanhasbeenexporting. Porters five forces Barriers to entry- Low The barriersto entryin the handmade productsindustryare low asthe requirementsforthe entryinthe industry are achievable. Since there have been a lot of websites and apps offering an opportunity for people tosale theirproducts online, the need for physical presence can also be neglected. The cost of productionof handmade productsvaryfromproduct to product but the profit earned on the product is very much high. Thus it can be identified that the barriers to the entry of the market is low. Another aspect is that this industry is on small scale and there are no big competitors. Bargaining power of suppliers- Low The bargainingpowerof suppliersislowasthe raw materialsrequired for the production of handmade products is mostly available and there are a large number of suppliers available in the market. Aforementioned, the handmade product industry is small and the competitors in the market are new, with the entry of new players in the market the bargaining power of suppliers might increase in the future at the momentthe numberof suppliers is higher compared to the organizations present to turn those raw materials into refined products.
  • 6. 6 Bargaining power of buyers- High The bargainingpowerof buyersishighas there are substitutesavailable inthe marketand the numbers of competitors are increasing. Aside from these reasons the prices of handmade products is higher comparedto theirsubstitute counterparts,whichresultsinthe highbargainingpowerof customers.The high barging power of customers is also due to the decline in the interest of people to buy the handmade products. Threat of substitutes-moderate The substitutes available in the market are moderate as there is substitute available for all the handmade productsinthe formof machine made products.The handmade shoeshave the substitute of machine made shoes and they are much cheaper then the handmade shoes which results in more attractionof customerstowardsthe cheaperproducts.Buthandmade shoeshave beenable tocompete withthese substitute products at a small level but if compared in the terms of sale the machine made shoes outnumber the handmade shoes by a large number. Competitors- Moderate The number of competitors in this market is moderate as mentioned before due to low entry barriers there have been increase in the number of competitors. in the industry of handmade shoes the competitorsare increasing due to the concept of customized high quality shoes instead of low quality machine made shoes. SWOT analysis Cobbler&Kolachi thoughrecentlyestablishedhasbeenable to strive in some particular fields known as strengthsandidentifieditsweaknessesandopportunitiestobe exploitedandthe threatsin the market. Swotanalysishelpsusinidentifyingthe basicbusinessoperationsof the organizationsandthe weakness that is present in their operations along with the opportunities available for them to exploit in the future. Strengths  Qualityandreliabilityof the product  Productdesign  Wide range of handmade pure leatherproducts  5 yearGuarantee and warrantyof products performance andstitching.  Alreadyappreciatedandwornbycelebrities. Strengths  Qualityandreliabilityof the product  Productdesign  Wide range of handmade pure leatherproducts  5 yearGuarantee and warrantyof products performance andstitching.  Alreadyappreciatedandwornbycelebrities. Weakness  Highprices  Doesnot have womenandkidsshoes  Lack of resources  Onlyone outlet  Notpresentinany othermajorcity
  • 7. 7 Market analysis Despite havingnumerousadvantagesPakistanhasnotbeenable tomake a mark in the global footwear industry. With yearly exports of only $110 million, our share in global footwear exports is only 0.001 percent.All othercountriesinthe regionare exportingmuchmore.These include India,Bangladesh and Sri Lanka.Indianexportsare $10 billionperyear,Vietnamexportsfootwear worth $6.23 billion. India is five times larger than Pakistan and its leather profile is similar, but our footwear exports are only one percent of the Indian footwear exports. However, we have the potential to multiply our exports. The main strength of the footwear industryisthe availabilityof topquality leather in Pakistan. Leather shoes are stitched by hand and we have the humanresource withthisexpertise;all they need is a little training. We estimate thatthe total footwearmarketof PakistanisworthRs250 billion,outof which footwear worth Rs100 billionisimportedmostlyfromChina.We are infact eyeing sizable investment in footwear from Chinaunderthe CPEC. The Chinese will look for low wage human resource available in Pakistan as the wages in China are four times higher. The share of domesticproducersinthe Pakistani market is Rs150 billion out of which only 20 percent is produced by the documented sector. The total requirement of footwear in Pakistan is around 600 millionpairsperyear.Ourestimate isthatwomenbuybetween4-6pairs of footwear per year and men 1-2. For children the average is 1-3 pairs. This usage is very low as the global average is 8-10 pairs for women per year, whereas 2-4 pairs of footwear are purchased by men every year. The analysis of the marketsuggest that there is a lot of gap present in the market and organizations like Cobbler&Kolachi can exploitthisopportunityandcapture the marketneeds.Withthe above mentioned facts and market analysisCobbler&Kolachi cansegmentthe marketaccordinglyandcreate amarketniche whichwill help in better targeting of potential customers. Target market It has been made evident that the target market of Cobbler&Kolachi is men with aesthetic quality conscious mind. It is evident that this market is very vast and to make things easy for the company in their process of analyzing the potential customers according to their preferences of design they want whatkindof leathertheywant. The constantly evolving taste of the consumers and the innovations in the productscan helpthe Cobbler&Kolachidrive apropersubsettodivide markettoeasilyhighlight the potential customersinthe market.Thisprocessiscalledmarketsegmentation and product positioning. The proper market segmentation and product positioning will prove to be key factor in solving the problemof gainingthe competitive advantage in the market. The market analysis have confirmed that menare more engagedinthe online shoppingandwiththe helpof otherstatisticsitisevident that men buy 1-2 pairs of shoes in a year, with the help of these statistics we can target a number of potential Opportunities  Womenorientedproducts  Low price range productsto target largermarket  Collaborationwithotherbrandstotarget wider marketaudience  Expansioninmajorcities. Threats  Increasingcompetitioninhandmade shoes industry  Decrease inthe buyingpowerparityof customers  Economicdownfall andinstability
  • 8. 8 customers.Rightnowwe have launchedmore than15 online advertisement campaigns firstly targeting specificallymenwiththe range of age between18-55and firstlyinKarachi and thenin all over Pakistan. Market segmentation Market segmentationisthe processof dividingthe broadcustomermarketintosubgroupsbasedon some typesof sharedcharacteristics.We have segmentedthe marketaccordingtodata provided throughthe statistical analysisandthishashelpedusinidentifyingindepththe attributesof the potential consumers.We have focusedsolelyoncustomersegmentof menagedbetween18-55.To save time forthe customersof thisage we have designedamethodforour online customerswithwhich we can easilyandefficientlyresponse to.Itisevidentthroughthe datathat the menagedbetween18- 24 are engaged23% more inthe online transactionscomparedtootherage groups.Thiswill helpus designouradvertisementsinordertoattract thismarketsegment.Asthisage groupboth have time and technological knowhow whichmeansthattheyhave abetterchance of becomingourcustomers. Marketing plan The marketingplanforCobbler&Kolachihasbeenderivedwiththe properuse of statistics and research in the field of consumer behavior. Through this research we have been able to develop a proper mechanismthroughwhichwe cantarget maximumamountof customerswithlow cost.Thisprocesshas helpednotonlyindrivingattentiontowardsourorganizationbutalsohelpusanalyze the process being used for marketing. Overall marketing strategy The marketingstrategyof Cobbler&Kolachi isdependentonthe customertrendsandcustomer behavior.Withthe shiftinthe global trendof customer-centricorganizationswe have hiredpeople with extensive experience inthe fieldof dealingwithcustomers.Withthe shiftinthe customerdemandsand theirpreferencesmovingtowardsmore customizedproducts,Cobbler&Kolachihasintroducedthe conceptof customizedhandmadeshoeswhichhasbeenreceivedbythe customerswithgreatappraisal. The concept of product customizationisimplementedinthe organizationsinrealisticmannerandgiven itsdue importance.The excellentcustomerservice hasbeenakeydriverinthe successof Cobbler&Kolachi productsonline.Butabove all the mostimportantmarketingtechniqueswe use forthe promotionof ourproducts ismentionedbelow  ThroughcollaborationwithIsmail Farid,SameerSainandGul Ahmadgivingusthe much needed attentionfromthe audience.  PhotoshotwithnotoriousmodelslikeHusnainLehri andAbdullahjaved one of the leading modelsof Pakistan
  • 9. 9  Pakistanleadingactorsfromfilmanddramaindustryrecommendanduse ourhandmade shoes on special occasionsuchas Hum awards.The actor Ali Rehman Khanwore the shoeswhile being the host of Luxstyle awards.  ConstantpaidpromotioncampaignsoninstagramandFacebookto targetvast amountof audience available ononline plateforms.  Cobbler&KolachiwillsoonstartshowingadsonYoutube whichwill helpenhance the amountof people targetedandincrease inthe numberof potential customers.  Word of mouth andpeeradvertisementone of the classicmethodsof marketingisalready beingutilizedinourmarketingstrategyandhasbeensuccessful indrawingmore customers towardsthe brand.  Marketingthroughpromotionsonourproducts onspecial occasionssuchas Eid and Independence Day. Management team Managementteamsare importantand workas a spine forany organization.Propermanagementof your humanresource isone of the keyfactorsthat helpanorganizationgaincompetitive advantage. Cobbler&Kolachi beingestablishedjust6monthsagohave a verybasicand simple managementteam but veryeffective,efficientandfull of enthusiasm.Inthisreportwe will trytoexplainthe structure of thisorganizationandanalyze the taskperformedbythe managementteam. Organization structure The chief executiveof Cobbler&Kolachi isMr. JahanzaibAli Kaimkhanithe ideaproviderandthe person whogave thisdream a touch of realizationandbroughtitinthe market. His knowledgeaboutthe handmade shoesandthe designthatlooklike theycome fromthe greatartisansimagination.The operationsandfinance manageris Mr. Wali Ahmadwhowas the advisorinbringingthisideaintoreality and nowhandlesthe general operationsandthe financialoperationsof Cobbler&Kolachi.The marketing manageris the talentedyoungsterMr. Ahsanwhohas beenable insuccessfullydesigningthe marketing strategy.Thusthe mixture of these three competentandtalentedpeoplethe organizationhasbeenable Chief executive Operations and finance manager Marketing manager Social media team manager
  • 10. 10 to thrive inthe handmade shoesmarket.The social media managerisMr.AbdullahMustafathe content writeralongwithMs. ShamimArawho came up withthe ideaof bringingthisorganizationinthe virtual worldand Mr. JunaidIslamisresponsible forhandlingthe customerqueriesregardingthe productand handlesall the ordersplacedonline.Recentlywiththe helpof teamworkbetweenthe managersof these departmentswe successfullylaunchedourwebsite,whichonthe firstdayof itslaunchlandeda customer. Operations Plan The operations at Cobbler&Kolachi are simple yet complex. The outlet in Karachi is equipped with enough products to cater the needs of customers based out of Karachi and if we receive and online order and those shoes are available on our outlet we ship that product to the customer. For facebook and instagramordersfirstthe customerchose the design of shoes or wallet of his/her choice after that throughmessage the customerinformsoursocial mediaaboutthe requirementsorchangesthathe/her wantsin the shoes.Afterconfirmingthe article of his/her choice the customer is asked to provide with the address and contact information for the delivery purposes of the product. The customer has two choicesof paymenteitherthroughonlinetransfer in the Cobbler&Kolachi band account or payment on delivery.Toplace ordersonour website youcansimplychoose the productyouwantto buy andplace it inthe cart and you will see the exact total charges you will have to pay for the product, in second step you will be asked about the payment method either cash on delivery or through credit card and once youhave chosenthe paymentmethodyouwill receive aconformatione-mail withthe details about the purchase and the delivery time of the product. If you chose to pay for the product through credit card youwill be askedtosubmitsome informationaboutyourcreditcard which is ensured that C&K will not save that informationanditwill be processed through secure online banking. Like regular transactions you will receive conformation slip via e-mail or text message. The time for delivery within Pakistan will take 10-12 working days, 20-22 working days for overseas delivery. Customer care is the concept enshrined and embedded in the core values of C&K. and our customer care team is working 24/7 to answer any query regarding the product or assist in any matter regardingthe C&Kproducts.Cobbler&Kolachimustbe contactedbefore makinganyreturn.The product can be returnedwithin10daysafterdelivery. The product refunded will be processed within 2 days of return of product back to us. The refund will only be applicable on the products that are in new conditionand unused. If you want to switch to another size in the same product or you want to switch to another product? No problem, just contact us. The customer will pay for shipping cost of returned and exchanged goods. This refund policy is applied on both online and store purchases. General approaches to operation and business location and equipment The general approachto our operationsverysimple,customercancontact us onour Facebookand Instagrampagesand throughthe contact numberprovidedonbothpagesandon the website aswell. There has beenagreat flowof trafficon ourpagesand on our website andoursocial mediateamhas beensuccessful inansweringtheirqueriesintime andaccordingtotheirquestions. Aforementioned,
  • 11. 11 Cobbler&Kolachi have anoutletinKarachi andit isalsopresentinthe virtual worldonFacebook, Instagramand on website. Thereare noequipmentprovidedtothe social mediateambuttheygetpaid for the contentandfor dealingwiththe customers.The social mediateamworksonflexiblehourswhich enable ustocontinue ourstudiesandalsohelpusget extensive knowledgeaboutthe corporate world. Product designand development The product designisbasedonthe italianandenglisgclassicdesigns.Cobbler&Kolachi is the first brand inPakistanthat hasbeenable toinduce the classic designs with the modern smart mans requirements and thusresultinginshoesthatare inimitable.The developmentof productsisbaseduponthe changing customerpreferencesand the feedback we receive from the customers. Furthermore as evident from our slogan “Where aesthetics meets perfection” we are focused on the high quality and best design a man look upon. Some of the main components of our product design are mentioned below  Aesthetics  Highquality  Handmade art  Conformity  Inimitability  Aftersale services These are the factors that play a key role in the development and in the designing process of our products.Thishas beenat the very core of Cobbler&Kolachi and it takes pride in being the pioneers in reviving the art of handmade shoes in Pakistan. This has become the driving force in our day to day operations. Challenge and risks Whenever conducting a business there are always risks and challenges in the market. The biggest and the most important challenge is the threat of competitors. As mentioned before the barriers to the entry in the handmade shoes market is low and thus leading to new entrants which results in more competition.Thencomesthe everchangingpreferencesof consumersandthe social changes that occur due to eitherpoliticaloreconomicconditionsof the country. And recently due to heavy taxation in the recenttime bythe governmentthere hasbeenhike inmanufacturingcostsandthusleadingtodecrease inprofitsgeneratedfromthe sales.Thenthe delayinmanufacturingisanotherone of the challenges as during this season of wedding and functions there has been a hike in the demand of our products but the manufacturing time of our product ranges from 5-6 days and thus sometimes resulting in delay manufacturing of products.
  • 12. 12 Intellectual property As mentionedbeforeCobbler&KolachiisregisteredwithSECPanditisregisteredasprivate limited.The name,logoand sloganof Cobbler&Kolachi isregisteredandcopyrightedandcannotbe imitated. Cobbler&Kolachi hasbecome astrongbrand due to its highqualityandperfectioninaesthetics. Therefore ourmastercobblersare ourintellectualpropertyandwe treatthemassuch.