Success Story

SUCCESS STORY
JAFFERJEES – A Tradition of Quality
Small Business Management

Mohammad Ali Jinnah University
November 21, 2009
Success Story: JafferJees Leather Goods Small Business Management
Compiled & Written By:
 Arshia Anjum
 Fatima
 Kehkashan Danish
 Murtaza Asgher Ali
 Yousuf Hatim
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Acknowledgement
Our term report would have not been possible without the assistance of
Mr. Murtaza A. Quettawala, who with his contacts made all our visits
possible. We thank all the owners and employees of JafferJees who
welcomed us and cooperated with us, resolving all our queries. All the
problems that we faced in different sections of our report were resolved
both in and outside of JafferJees outlet.
We would also like to thank our course instructor Mr. Mohammad Ali
Sheikh, who took time off his busy schedule to guide us through a few
sections of our report.
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BRIEF CONTENTS
A. Introduction (9)
B. History (10)
C. Objective (11)
D. Type of business (11)
E. Store location (11)
F. Customers (12)
G. Competition (13)
H. Manufacturing (13)
I. Store orientation (20)
J. Store design (21)
K. E-Commerce activities (24)
L. Marketing strategies (25)
M. Marketing Mix (26)
N. Advertising (28)
O. Supply chain management (28)
P. Customer relationship management (29)
Q. Information systems (30)
R. Merchandising (31)
S. Human resource management (35)
T. Conclusion (39)
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CONTENTS
1. Introduction (9)
a. Current scenario (9)
b. Why JafferJees (9)
2. History (10)
3. Objective (11)
4. Type of business (11)
5. Store location (11)
a. Type of location (12)
6. Customers (12)
7. Competition (13)
8. Manufacturing (13)
a. Leather (13)
b. Leather types (14)
i. Full-grain leather (14)
ii. Top-grain leather (14)
iii. Corrected-grain leather (15)
iv. Split leather (15)
c. Leather production process (15)
i. Preparatory stages (16)
ii. Tanning (16)
iii. Crusting (17)
d. Raw materials – skin (17)
e. Raw materials – accessories (18)
f. Design (18)
g. Cutting & stitching (19)
h. Recent trends (19)
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9. Store Orientation (20)
a. Attractive Displays (20)
b. The circulation plan (21)
c. Space Audit (21)
10. Store Design (21)
a. Exterior & interior (21)
b. Signage (22)
c. Fixture, visual type (22)
d. Merchandising & Display (22)
e. Window Display (23)
f. Counter Display (23)
g. Cascade Display (23)
h. Employee type (23)
i. Frontline employees (23)
j. Other staff (23)
11. E-Commerce Activities (24)
a. Online store front (24)
b. Online store – benefits (24)
i. International outreach (24)
ii. Managed inventory (25)
c. Online pricing (25)
d. Visual density (25)
e. Micromarketing (25)
12. Marketing strategies (25)
a. Branding (25)
b. Store positioning (26)
c. International Expansion (26)
13. Marketing mix (26)

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a. Product offering (26)
b. Place price (27)
c. People to serve (27)
d. People that serve (27)
e. Presentation (27)
14. Advertising (28)
15. Supply chain management (28)
a. Purchase order (28)
b. Vendor management (28)
c. Warehousing (29)
d. Goods received & inter transfer notes (29)
e. Transportation (29)
f. Material handling equipments (29)
g. Efficient docking (29)
16. Customer relationship management (29)
17. Information systems (30)
a. POS technology (30)
b. Technology & store operating processes (30)
c. Human resources & technology (31)
18. Merchandising (31)
a. Women (31)
i. Handbags (31)
ii. Wallets (31)
iii. Lipstick Cases (31)
iv. Jewelry Cases (32)
b. Business Categories (32)
i. Portfolios (32)
ii. Briefcases (32)

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iii. Desk Accessories (33)
iv. Business Card Cases (33)
v. Organizers (33)
c. Travel Goods (33)
d. All & Sundry Categories (34)
e. Shrinkage in Merchandise Management (34)
19. Human resource management (35)
a. Recruitment process (35)
i. Gathering Information before Recruitment (35)
ii. Preliminary Screening and Interview (36)
iii. Recruitment (36)
iv. Termination (36)
b. Manpower Planning (36)
c. Motivation & Rewards (37)
i. Attendance Bonus (37)
ii. Other Bonuses (37)
iii. Education (37)
iv. Physical Appearance (38)
v. Involvement With Employees (38)
d. Salary Structure (38)
20. Conclusion (39)
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INTRODUCTION
JafferJees, an exclusive name in leather products, blends fine leather and

refined accessories to bring an exquisite collection. Their experience
spans over four generations. For over a hundred years, JafferJees has
been producing quality leather products in a variety of in-vogue styles,
materials and colors. They know that paying attention to detail and being
a little fastidious is the difference between good and great. Before the
separation of Indo-Pak, JafferJees established itself in Quetta as a
manufacturer of leather goods, horse saddles and boots for the armed
forces in particular. Later they expanded their business by adding
furniture to their product line, and by opening a retail outlet in Karachi.
Current Scenario
Currently, JafferJees has four branches. Three of them are established
locally, and the fourth one is in Dubai. Over the years, JafferJees has
been successful in establishing its store brand. It has a loyal base of
customers. Since JafferJees has been present for over a century as the
only leather goods provider, their sustainable competitive advantage has
given them an edge over the emerging competitors.
They now enjoy the status of being a brand, not locally but in
international market too. It would not be wrong if JafferJees be equated
as a high quality leather product. Using superior product offerings,
parallel to the needs of the customers and upholding them with a
excellent customer service and retention system have differentiated them
among competitors.
Why JafferJees
An image of a big capital „J‟ comes to mind when we talk about a success
story. The question that arose was: why JafferJees? There are many a
firms that are dealing in leather products, there must be something
differentiating or distinguishing that led them to get the most loyal
customers in town.
JafferJees started off with a small shop with basic leather accessories and
today they are known to have the highest range of leather goods of
premium quality, this is the reason why their outlets are flooded with
Upper-Middle and elite class customers and foreigners. It has been almost
a century since they started of their journey, since then they have never
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compromised on their quality. This spearhead advantage has been the

biggest reason behind their success. Competitors are way away from
them, not only on their type of products, designs and quality, but also in
comparison with their way to talk to people and the customer
relationship.
HISTORY
Over a century ago, the JafferJees
family established a business as
expert saddlers in the city of Quetta,
then British India. The business was
initially a solution to leather goods
needs of the British Army in
subcontinent. Saddles, Boots, Belts,
holsters etc were peaking in its
demand at that time and JafferJees,
being an adept of leather art, quickly
got popular among the British Army of
the subcontinent. The business, from
just making saddles, boots and belts
for the British army, expanded its
product line to formal shoes and
leather upholstered furniture. With a commitment to use the finest
material and uncompromising workmanship, the JafferJees name
established itself as the purveyor of high quality leather goods in the
subcontinent.
In the late 1920‟s, the booming

port city of Karachi presented new
opportunities and challenges.
People were well aware of the
comfort and sumptuousness
associated with leather goods,
differentiating those from the
olden days, where leather was
only used as a mode of carrying
water and goods in traveling, as it
was strong and lasted many days.
Karachi city quickly got its name
of being the largest and busiest
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port, even exceeding popularity of Bombay seaport (one of the largest in

the British-India). It was obvious that new port would bring big clouds of
opportunities and lucrative business benefits. JafferJees too, sensed this
prospect, as leather goods were one of the basic necessities of people in
the UK, it never went out of demand. But some complications stood as a
hurdle between them and new opportunities in the Karachi City, and they
were unable to shift themselves. At least not for the upcoming fifteen
years
Then in 1935 nature played its hand. A massive earthquake transformed

the city of Quetta to a heap of rubble. Businesses closed down, industries
were shattered and unemployment soared high in those days. JafferJees
too were badly affected, but they had a plan already up on their minds:
plan to start again at Karachi.
JafferJees business center shifted to Karachi. Today, one encounters at

JafferJees outlets the same meticulous attention to detail, the finest
material, and an uncompromising craftsmanship that the „JafferJees
leather goods‟ business was established upon a tradition of quality.
OBJECTIVE
to provide quality leather goods to the upper class of our society.
TYPE OF BUSINESS
JafferJees is a family-owned business; it was originally started by
JafferJees and later carried on his son Tahir Ali Quettawala. The business
is now owned by two
brothers; Imtiaz and
Arif Quettawala, and
their cousin Arshad
Quettawala.
STORE LOCATION
location serves to be
an important aspect in
retailing. JafferJees
has always been very
choosy when selecting
locations.
Clifton, Karachi
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Type of location
Their outlet at Mehran heights (Clifton, Karachi) is the main branch where
they have their head office and ware house. Mehran heights being a
shopping center has high customer traffic, medium to high real estate
rental values and has little space allocated for parking, providing
convenience to the customers.
JafferJees at Tariq Road

(Karachi) has a high street
location, with clusters based
on product categories, high
real estate rentals with no
parking space.
JafferJees is located at the

Park Towers shopping mall
with high rentals, designated
parking at the Park Tower
space, attracting families. Burjuman Center, Dubai

JafferJees at Park Towers
faces a tough competition, as its competitors: Traditions and Hub Leather
are located in the same mall, but still they differentiate in their product
category and their targeted customers.
JafferJees in Dubai is located at Burjuman Centre, one of the best

shopping malls of the city. Burjuman centre like a typical shopping mall
has high real estate rentals, with an extensive parking space, facilitating
customers visiting the mall.
CUSTOMERS
JafferJees never segmented the market to sieve out the type of customers
they want. They cater each and every category of people, upper-middle,
high class and at the end elites.
People from the corporate sector, celebrities, politicians etc are their
frequent buyers. Benazir Bhutto, during her reign as the Prime Minister of
Pakistan, also stopped at the JafferJees to shop around.
Sometimes they do not even know that products that are sold will be used
by some celebrity. It is because high-profile people usually do not come
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to shop themselves; instead they send their representatives or secretaries

to shop for them.
JafferJees usually encounter male customers. The purchasing of leather is

low in females as compared to males. They are more fond of wearing
leather belts, wallets etc.
COMPETITION
As they do not advertise, they do not care of the competition too. Instead
of par pricing the product they just give it price, after calculating the raw
materials used and overhead supplied.
It is the brand that is established, if local markets start copying their

design they would still be incapable of achieving the product quality and
aesthetics that JafferJees provide. Setting this as their competitive
advantage, they have penetrated in to genuine leather goods market,
locally and internationally.
MANUFACTURING GOODS
Leather
Leather is a durable and
flexible material created
via the tanning of
putrescible animal
rawhide and skin,
primarily cattle hide. The
leather and the fur
industries are
differentiated by the
manufacturing
importance of the raw
materials used to make
the wares. In the leather
industry, the skin and rawhide are by-products of the meat industry,
because the meat has greater commercial value than the rawhide and
skin. In the fur industry, the meat is a by-product, because the skins and
hides have greater commercial value. Moreover, in taxidermy, the raw
materials usually are only the animal‟s head and back; hide and skin also
are the raw materials for manufacturing animal glue and gelatin.
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Leather types
In general, leather is sold in three forms:
Full-grain leather
It refers to the upper section
of a hide that previously
contained the epidermis and
hair, but were removed from
the hide/skin. Full-grain refers
to hides that have not been
sanded, buffed or snuffed
(such as top-grain or
corrected leather) in order to
remove imperfections (or
natural marks) on the surface
of the hide. The grain remains
in its natural state allowing
the best fiber strength and
durability. The natural grain
also has natural breath ability,
resulting in less moisture from
prolonged contact. Rather than wearing out, it will develop a natural
patina over time, with some cracking and splitting. The finest leather
furniture and footwear are made from full-grain leather. For these
reasons, only the best raw hide is used to create full-grain leather. One
way to test if leather is full-grain is to lightly scratch its surface with your
nail. If it leaves a lighter-colored streak, it's full-grain. Full-grain leathers
are typically available in two finish types: aniline and semi-aniline.
Top-grain leather
It is a misnomer: it gives the false impression that it is "top" quality. In
fact, full-grain is the highest quality. Top-grain leather is the second-
highest quality. Its surface has been sanded and refinished. As a result, it
has a colder, plastic feel, less breath ability, and will not develop a natural
patina. However, it does have 2 advantages over full-grain leather: it is
typically less expensive, and has greater resistance to stains.
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Corrected-grain leather
It is any top-grain leather that has had an artificial grain applied to its
surface. The hides used to create corrected leather are hides of inferior
quality that do not meet the high standards for use in creating aniline or
semi-aniline leather. The imperfections are corrected and an artificial
grain applied. Most corrected-grain leather is used to make pigmented
leather as the solid pigment helps hide the corrections or imperfections.
Corrected grain leathers can mainly be bought as two finish types: semi-
aniline and pigmented.
Split leather
It is leather created from the fibrous part of the hide left once the top-
grain of the rawhide has been separated from the hide. During the
splitting operation, the grain and drop split are separated. The drop split
can be further split (thickness allowing) into a middle split and a flesh
split. In very thick hides, the middle split can be separated into multiple
layers until the thickness prevents further splitting. Split leather then has
an artificial layer applied to the surface of the split and is embossed with
a leather grain (By cast leather). Splits are also used to create suede. The
strongest suedes are usually made from grain splits (that have the grain
completely removed) or from the flesh split that has been shaved to the
correct thickness. Suede is "fuzzy" on both sides. Manufacturers use a
variety of techniques to make suede from full-grain. For example, in one
operation, leather finish is applied to one side of the suede, which is then
pressed through rollers; these flatten and even out one side of the
material, giving it the smooth appearance of full-grain. Latigo is one of
the trade names for this product. Reversed suede is grained leather that
has been designed into the leather article with the grain facing away from
the visible surface. It is not a true form of suede.
Leather Production Process

The leather manufacturing process is divided into three fundamental sub-
processes: preparatory stages, tanning and crusting. All true leathers will
undergo these sub-processes. A further sub-process, surface coating can
be added into the leather process sequence but not all leathers receive
surface treatment. Since many types of leather exist, it is difficult to
create a list of operations that all leathers must undergo.
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The preparatory stages

These stages are when the hide/skin is prepared for tanning. Preparatory
stages may include: preservation, soaking, liming, unhairing, fleshing,
splitting, relining, deliming, bating, degreasing, freezing, bleaching,
pickling and depickling.
Tanning
It is the process which converts the
protein of the raw hide or skin into a
stable material which will not putrefy and
is suitable for a wide variety of end
applications. The principal difference
between raw hides and tanned hides is
that raw hides dry out to form a hard
inflexible material that when re-wetted (or
wetted back) putrefy, while tanned
material dries out to a flexible form that
does not become putrid when wetted
back. There is a large number of different
tanning methods and materials that can be Leather Tanning

used, the choice is ultimately dependent on the end application of the
leather. The most commonly used tanning material is chromium, which
leaves the leather once tanned a pale blue color (due to the chromium),
this product is commonly called “wet blue”. The hides once they have
finished pickling will typically be between pH of 2.8-3.2. At this point the
hides would be loaded in a drum and immersed in a float containing the
tanning liquor. The hides are allowed to soak (while the drum slowly
rotates about its axle) and the tanning liquor slowly penetrates through
the full substance of the hide. Regular checks will be made to see the
penetration by cutting the cross-section of a hide and observing the
degree of penetration. Once a good even degree of penetration exists, the
pH of the float is slowly raised in a process called basification. This
basification process fixes the tanning material to the leather and the more
tanning material fixed the higher the hydrothermal stability and increased
shrinkage temperature resistance of the leather. The pH of the leather
when chrome tanned would typically finish somewhere between 3.8-4.2
ph.
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Crusting
It is when the hide/skin is thinned, retanned and lubricated. Often, a
coloring operation is included in the crusting sub-process. The chemicals
added during crusting have to be fixed in place. The culmination of the
crusting sub-process is the drying and softening operations. Crusting may
include the following operations: wetting back, sammying, splitting,
shaving, rechroming, neutralization, retanning, dyeing, fat liquoring,
filling, stuffing, stripping, whitening, fixating, setting, drying, conditioning,
milling, staking, and buffing.
For some leathers a surface coating is applied. Tanners refer to this as

finishing. Finishing operations may include: oiling, brushing, padding,
impregnation, buffing, spraying, roller coating, and curtain coating,
polishing, plating, embossing, ironing, ironing/combing (for hair-on),
glazing and tumbling.
Raw Materials – Skins

Leather being the key element for the products, JafferJees takes good
care to select the top quality leather sheets in order to maintain their
promise to the customers: „the tradition of quality‟. All the leather is
bought from tanneries in Pakistan, as Pakistan is one of the best
producers of leather in the world.
The skin that is mostly used is the cow and buffalo, as they are a main
source of food too. Other leather goods manufacturing companies use
reptile skin such as of snake, crocodile etc. At JafferJees they believe that
is unethical and immoral to use such animals for their skin, these animals
are to skinned alive or else their skin is of no use. Whereas the skin of
cow, goat, buffalo and sheep do not require such brutal behavior as it
already have a certain amount of blood level, which is essential to
maintain that shape and form of leather.
The buffalo skin is mostly used, but it is sometimes hard, tough and
difficult to work with. Whatever JafferJees make, they use the first grade
skin. Third grade skin show patches and spots, but however they can be
covered by pasting something else over it. This would be equal to
cheating the customer and once the customer finds out, he would never
come back and JafferJees would lose his customer equity. It is the reason
they only work with first grade skin.
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Owners themselves go to purchase leather; they do not delegate the

purchasing to somebody else. The reason behind this is maintain
maximum quality and reduce costs. Any involvement of third party would
increase costs, at the end the product price would raise.
Raw Materials – Accessories

The other ingredients, zips,
buttons, locks, tags, logos, etc are
all imported from Japan and
Indonesia. They are all of high
quality and are reliable enough to
go on with the leather goods.
Rarely it is observed that a
customer complaint about a lock
been broken or a zip ripen apart or
even the silver or golden plating
scraping off.
JafferJees believe in making a

slight expensive product that is of
high quality instead of lowering
profits by giving after sales service
and repairing goods of dissatisfied
and angry customers.
Design
Designing the product is one of the difficult tasks to do. A single mistake
could end the finished goods into a trash bin. Usually all other leather
goods manufacturer outsource their product designing, but at JafferJees
the owners sit together to design a product, they do not hire anybody. It‟s
the western culture that they adopt, like the use of ostrich skin design
because of its popularity in the west, it is also forecasted that this style
would soon come to Pakistan.
The entire business is based on a hobby to work with leather. They design
the product similarly, when they feel like designing they do it. But all the
designs are customer centered and satisfy an unstated need. A creative
mind and than a business mind is a key to success
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Cutting and Stitching

All the designs get into physical shape by cutting and stitching
department. This department comprises of permanent people, who have
been working for a long time.
Two bundles of leather sheets come in one go. A single bundle have
around 20 sheets, each sheet can produce approx. 20-25 handbags.
People there have to work very carefully; a single wrong cut can damage
the whole sheet, due the fluctuation in measurement, and can end it up in
scrap. Sheets are very expensive and damaging a single sheet means a
loss of around 20 handbags.
Stitching involves joining the cut pieces together; it requires heavy

machines to provide strong and long lasting stitches. Extra accessories,
such as buttons and zips are also added at this stage.
Recent Trends
In 1880, the saddle was
also a high demand
product, but since then
the demand had been
declining. Nobody used
to ride on horses
anymore. But now the
trend is on its way.
People in the Arab
countries are fond of
horse riding and now
JafferJees is providing a
solution to their need.
In Pakistani markets, people use a single product for around 15 years,

that‟s why the colors that are long lasting and trendy are always in.
whereas in western countries people move along with style and recent
trends. They change the product and colors in around 6 months. They
usually go after the new arrivals.
Unlike other industries, leather goods are not dependent on a specific

season. They are in demand all around the year. Red, blue, black etc
these colors are most popular in men, whereas pink, purple and orange
are sold relatively low and most of the time purchased by ladies.
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Double tone color leather goods are also in season nowadays. Like one
sided blue, other black, fire crackers, red & blue, snake skin, crocodile
skin, gold, copper etc.
STORE ORIENTATION
Effective space
management is what you
get at the JafferJees.
Being a specialty store,
the space mix comprises
40% of non selling area
and 60% of selling area.
There is ample space for
the customer to move
around and comfortably
browse through the
store, providing the
customer with a good
shopping experience.
Attractive Displays
Acting on the statement
– attractive displays will
get new visitors – they
endeavor in making
eye-catching display
windows and a soothing
and relaxing interior.
JafferJees attractive
window displays
persuade one to enter
the store. As soon as
you enter, the store
fixtures and placement
of merchandise directs
you through the entire
store. The aesthetics of a well designed store are a visual feast to the
customer and makes the customer come back again and again.
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The Circulation Plan

Following the race track circulation plan, the shop has merchandise
displays in center and fixed shelves on walls, giving it a circular path.
JafferJees make their customer go through the entire store in a circular
pattern so that the customer is exposed to the merchandise on display,
making easy for people to choose from a high range of varieties and
colors. It not only benefits the customer, but also gives them an
approximate distribution of sales, refraining from the hassle of excessive
inventory pileups and extra maintenance cost allocation
Space Audit
In our opinion the off take at the shelves and showcases displaying purses
and wallets is the most thus classifying them as hot spots. Places
displaying desk sets, belts and travel goods can be classified as warm
spots whereas cold spots would be places displaying horse saddles, carry
alls and dog collars.
STORE DESIGN
Exterior and Interior
The exterior and interior at
JafferJees has been exclusively
designed by a professional
architect, Shariq. JafferJees has
created an image for them based
on a consistent store exterior
following the green and white
theme for all the outlets. The
interior is planned to give it an
exquisite look, with extensive
lighting, shelves and showcases
complementing the entire theme
of the store. The interior at
JafferJees provides the right
image and is in harmony with
the tastes of its target market.
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Signage
Even though consistent with their themes, JafferJees have different signs
at different locations. At their main stores at Mehran Heights and Tariq
Road, they follow their theme and have a green sign; whereas at Park
Towers, the store has a stylish white and silver sign.
Fixture, Visual Type

To give its products an exclusive splendor JafferJees hires the expert
capabilities of an interior designer. Different types of merchandise are
displayed through different mediums. Shelves are used to display purses,
organizers, briefcases, cases and kits. Hanger exhibit belts carry alls and
dog collars. Wallets, jewelry boxes, vanity cases and stud cases are
displayed in show cases. JafferJees uses a number of spotlights,
preferring bright and warm yellow lights to trigger impulse purchases.
Merchandising and Display

JafferJees creates a buying feeling
in the customer by exhibiting its
product in a spectacular manner.
Through effective window displays
and a fabulous presentation, they
successfully convert the passersby
into browsers and browsers into
buyers.
JafferJees creates the right

ambience by complementing its
products with the right fixtures,
impressive presentations, and
lighting that creates an impact on
the customer. The right ambience
augments shopping experience for
the customer and triggers the
comeback feeling while occupying
a distinctive position in his mind.
Visual merchandising is an effective communication tool. JafferJees

through its window displays and in-store presentation communicates its
latest arrivals, matching their products with upcoming fashion and trends.
They also inform their customers about latest trends.
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Window Displays
Window displays at JafferJees are a mixture of exclusive and open
displays where the center of the window has a backdrop and the sides of
the windows are open, which allows the customer to glance inside the
store. Window display of bags at the Park Towers outlet
Counter Displays
Shelves and showcases are used to display purses, wallets, key chains
and organizers.
Cascade Displays
Cascade displays are used at JafferJees to exhibit dog collars, carry alls,
belts and coat covers. A distinct style of product display at JafferJees
Employee Type
JafferJees employs the following types of employees:
Frontline Employees
The minimum requirement at JafferJees for the front line sales staff is
intermediate. The management believes that their sales people are the
brand ambassadors. The target market at JafferJees requires the staff to
be able to communicate in English and have good presentation and
interpersonal skills.
Other Staff
The main departments at JafferJees are as follows:
• Accounting
• Administration
• Quality Control
Recruitment at JafferJees is done on the basis of the human resource

needs of the relevant departments. The number of employees in each
outlet at JafferJees depends on the size and location of the store.
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E-COMMERCE ACTIVITIES
Online Store Front
E-Commerce industry grew in the last few decades – credit goes to the
growing trend towards online shopping. In accordance with this trend and
to provide convenience almost all companies went live with a website.
JafferJees too, after employing many sales-increasing strategies, decided
to get a page of their own. Giving their customers a convenient way to
choose from a variety of products and get it delivered at their door steps,
without mattering about customer‟s location.
A website was launched in 1999 to the international markets. Later in the

year 2002 they launched an e-store exposing their products nationally
and internationally. The online store front at Jafferjees.com is consistent
with its brick and mortar format and follows the same theme. It helps in
maintaining a sustainable image and creates the feeling of comfort. The
online store front, through its signature identity, triggers browsing and
persuades the customer to buy. In the past, JafferJees used to publish
catalogues and brochures to provide their customers the ease of ordering
from their homes. They expected their sales to go up through this
medium, but because these means are not common in Pakistan their
profits remained unaffected. It was also inconvenient to up-date the
catalogues as new products were innovated day-in and day-out. They
tried to reduce their costs by creating a CD, which served the purpose of
a catalogue, which again was hard to modify, and so they decided to put
an end to these, and launched an e-store.
Online Store – Benefits

E-Commerce website has benefited JafferJees in many ways:
International outreach
“A wide customer base is what we get out of e-tailing”, says Murtaza A.
Quettawala, overcoming trade barriers and expanding towards western
countries have benefited them well. JafferJees enjoys lucrative leather
goods consumption in the US, credit goes to their classy design, high
product quality and an accommodative customer care. But still they are
sometimes unable to refund or replace products to their online customers
because of the outlets located only in Pakistan and Dubai.
24
Managed Inventory
Inventory pileup is what every business man fears. In the case of leather
goods, its even dangerous. Leather begins to rot after a certain period.
Moulds and fungus appears on face of the goods, giving it a nasty look.
Online Merchandising helps JafferJees in lowering their costs and in
increasing profit margins. Virtual Space is unlimited which allows them to
display and present infinite number of SKUs without having to worry
about efficient space utilization.
Online Pricing
Pricing at Jafferjees.com varies for national and international delivery. For
purchases above Rs. 2,500 nationwide deliveries are free. For
international deliveries, the cost of the courier service is to be paid by the
customer and no extra service charges are charged by JafferJees.
Visual Density
As mentioned previously, JafferJees has a wide product range and e-
tailing allows JafferJees to display its products and merchandise without
maintaining the inventory levels.
Micromarketing
By focusing on satisfying their corporate clients, JafferJees is involved in
designing unique and tailored products to facilitate their needs and
requirements. They also provide their individual customers the choice of
getting their purchases personalized by embossing their names in
different styles. Initially, customization was only available at their outlets,
but now it is on their website too. Customer can select from a given set of
fonts, in different color, alignment and size.
MARKETING STRATEGIES
Branding
With a wide range of merchandise, JafferJees offers quality at its best at
affordable prices. By 1988, the JafferJees name had become synonymous
with leather products of unmatched quality in Pakistan, necessitating the
need for a brand identity. Within a short period, JafferJees clientele
witnessed the infusion of a branding strategy that not restated JafferJees
25
unparalleled quality, but also established it as the brand of choice for high
fashion genuine leather products.
Store Positioning
JafferJees positions itself as: „A specialty store dealing in quality leather
goods.‟
JafferJees has always been successful in communicating with its clients.

The promise of the finest quality leather products has been successfully
fulfilled. The positioning of JafferJees has always been consistent because
of which they have been able to integrate it in their organization's culture.
International Expansion
It was but inevitable that JafferJees offerings be made available to
discerning international customers. Thus it opened its doors for business
in the city that is set to establish itself as the crown jewel of a modern
business metropolis in the east – Dubai, business hub of the United Arab
Emirates.
Located in Dubai‟s prestigious Burjuman Centre since 1994, JafferJees

creates a unique shopping experience for connoisseurs of fine hand
crafted leather goods.
MARKETING MIX
The retail marketing mix at JafferJees consists of the following elements:
Product Offerings
JafferJees after a careful study of its clients‟ needs and wants have come
up with a diverse product range. Over the past 125 years, they have
transformed the creation of genuine leather products into an art form.
From a key fob to exquisite luggage sets, JafferJees hand crafts a wide
array of products. Be it a lady‟s evening bag that reigns undisputed as
conversation piece, a document case that makes a statement on its own,
or a desk accessory that demands attention, there is an article to delight
the most demanding connoisseurs of fine leather.
• Wallets
• Vanity Cases Lipstick Cases
• Hand Bags
• Purses
26
• Cases
• Kits
• Trolley Bags
• Travel Bags
• Boxes
• Key FOB
• Accessories
Place
JafferJees is located at Mehran Heights, Park Towers and Tariq Road.
Price
Price is an important element in the marketing mix. JafferJees prices their
items on the basis of the simple formula of cost plus profit margin.
Products have prices in accordance with its quality. Customers buying in
bulk are offered considerable discounts too. But in these days they are
facing difficulties, because of the fluctuating prices of petroleum products
(it is one of the key elements in making leather goods), frequent
electricity and water shortages that not only raise their cost but lower
their profits margin too.
People to serve
The customers at JafferJees belong to the upper class. They ensure that
the quality standards promised by JafferJees are delivered.
People that serve

Even though JafferJees claim that they hire trained and educated
employees, yet they are shy and less confident when dealing with
customers. Therefore, JafferJees train their employees in such a way that
they provide assistance and help buyers in making their purchase
decision.
Presentation
JafferJees groups their products and services in an exclusive splendor and
attends to its customers on personal basis.
27
ADVERTISING
JafferJees rarely advertises, though they are publicized by the media and
communicate the proposition of the entire store through personal selling.
They once advertised on the Google bar for their online store. Recently,
JafferJees was given coverage in Brand Zone, a program by Business
Plus. The main reason for not advertising is the limelight and hype that
prevails when heavy marketing campaigns are initiated. JafferJees do not
want to be like that, they have established their brand name in more than
a hundred years, now a single mistake or mismanagement can spoil the
whole reputation. People take JafferJees products as a brand of quality
and it is very critical to maintain it,
In the international region too, they are just dependent on their website
for small advertising. They just display their concepts on online store,
because customers from London, South Africa, USA etc already know
them.
SUPPLY CHAIN MANAGEMENT

Supply chain management is an end to end process in merchandise
planning and movement, from planning the inventory (preparing the
purchase order) to the point of reaching the merchandise.
JafferJees has a proficient supply chain management process, which

allows them to reduce their back-end costs, maintain optimal inventories
and helps them in making faster deliveries.
Purchase Order
Inventory management at JafferJees is administered on a daily basis. The
purchase orders are made in conformance with requirements of each
store, as soon as the inventory reaches the minimum level.
Vendor Management
Leather in its finished form is bought from within Pakistan. Products
designed by the owners of JafferJees are then forwarded on to the
contractors who work specifically for JafferJees and are involved in
producing the finished goods.
28
Warehousing
The warehouse facility at JafferJees is involved in receiving, pricing,
tagging, bar coding, storing, docking, preparing, readying and
transporting the merchandise required at each outlet. It is also
responsible for checking quality of raw material and finished products
delivered by the contractor.
Goods Received and Inter Transfer Note

JafferJees makes it a point to send goods received note to the vendor as
soon as products received are checked and matched with the relevant
purchase order. Whenever replenishment is needed at any outlet of
JafferJees, an email is sent to the warehouse by the store manager. After
products are transferred, an inter transfer note prepared by the manager
is sent to the warehouse.
Transportation
The products are transferred through rented vans.
Material Handling Equipment

Safety measures are taken to ensure that the products are not defected
while delivery. The items are filled in cartons and distributed to the
respective outlets.
Efficient Docking
The implementation of First in First out (FIFO) delivery plan at JafferJees
ensures best utilization of space and helps in minimizing the aging of
merchandise kept in the warehouse
CUSTOMER RELATIONSHIP MANAGEMENT

JafferJees is constantly striving to improve its relations with customers.
Nowadays customers are educated and more aware due to media
exposure and the internet. JafferJees ensures that the customer comes
again and again to the store by adapting the following strategies:
• Integrating systems and policies based on customer friendliness.

• By incorporating a customer-centered culture.
• By giving first priority to their customers.
29
• By allowing their customers to express their views through

comment cards.
INFORMATION SYSTEMS
JafferJees believes in advancing through technology, and have stepped
the technological arena in order to cope with globalization, and to function
smoothly in every area. The IT system was made in house by a
programmer, who after design and implementation handled it over to the
management. Now it is dealt by an IT in charge.
The management information system and inventory management system

is also under the IT dept. which is constantly going for up gradation to
much higher levels. JafferJees have some selected people who are taking
care of the information system as it contains all the confidential financial
details that showed be protected in order to save internal integrity.
POS Technology
JafferJees makes extensive use of POS Technology, and is highly
equipped with hi-tech scanners and cash registers. Their cash registers
not only produce cash receipts/memos of customer purchases, but also
stores information in a database.
This information can be retrieved at any point of time for tracking

customer purchases. It also reduces the time required for efficient
customer checkout.
Technology and Store Operating Processes

JafferJees has incorporated an intranet among its three branches located
in Karachi, Pakistan. The network has linked all the three branches to the
head quarter.
JafferJees also has a dynamic inventory management system.
Indicators have been set to trigger off minimum and maximum inventory
levels. As soon as the inventory level goes down and touches the
minimum target, an automatic order is placed and the inventory is
replenished.
At the end of the day, the store managers have to e-mail a detailed
report to the headquarters.
30
Human Resources and Technology

JafferJees cash registers also help in evaluating their sales personnel
performance. They have software that enables them to link customer
purchases with sales staff.
Each sales person is assigned a code. Every time a customer is billed, the
sales person has to enter his code, which enables JafferJees to keep a
track of the number of customers dealt by him.
MERCHANDISING
Women
JafferJees has further categorized
products designed for women according
to their needs. These products come in
two finishing: matte finishing and
polished finishing.
Handbags
Handbags come in a large variety, with

different shapes, designs and colors.
Round, square, double pocketed,
shoulder strapped, with a magnetic
button or zippers inside etc.
Wallets
Wallets are designed absolutely

according to a daily need that is why they are always in demand. Usually
wallets at JafferJees come with two cash compartments, credit card slots,
ID window, coin pockets and spaces for receipts etc.
Lipstick Cases
A perfect solution to beauty conscious women – the lipstick case, made

out of pure leather has a small mirror, a snap button closure and two or
more slots for lipsticks placement.
31
Jewelry Cases
An exquisite product to hold

gems and jewelries, people
always look something durable
and long lasting for keeping
their jewelries. JafferJees
provide them with a roomy
leather jewelry box with a two
digit combination lock.
All products are available in the

following colors:
• Red
• Burgundy
• Black
• White
• Mud blue
• Brown
• Dark Green
Wallets and organizers can also be customized and buyers can have their
name imprinted in different finishing; gold, silver, or embossed.
Business Categories
The fourth division at
JafferJees business has been
classified into:
Portfolios
Portfolios have a space to

accommodate an A4 size
letter pad, penholder,
organizer, other accessories
etc.
Briefcases
Briefcases too come in many

designs and colors. Many of
32
them have a three digit combination lock, normal compartments & zipper
pockets, laptop case or a detachable shoulder strap.
Desk Accessories
Desk accessories include pen & card holders, coasters, paper weights,
planner boards, refillable tissue boxes, paper cutters etc.
Business Card Cases
Simple and stylish card cases come with several pockets for business
cards, credit cards, receipts and sometimes a back pocket as an extra.
Organizers
Organizer is one of the basic needs for a business executive. It contains a

stylish pen and a pad to take notes. Other than this it has pockets for
credit cards, receipts etc
These categories can be further classified:
• Portfolios have been further classified into document portfolios

and writing portfolios.
• Briefcases are divided into executive briefcases and executive
bags.
• Desk Accessories comprise desk sets, document trays and
accessories box used exclusively in offices.
Travel Goods
Travel goods have been
classified into five categories:
• Cases
• Travel Wallets
• Easy Travel Bags
• Kits
• Trolley Bags
The Categories mentioned

above have been further divided
into sub
33
Categories:
• Cases basically have two types: tie case and toiletry case.
• Easy Travel Bags have been manufactured using soft leather and
hard leather.
• The kits sold at JafferJees include jewelry kits and travel kits.
• To provide ease to the constant travelers, JafferJees also
produces pilot trolley bags.
All & Sundry Categories

The division All & Sundry has been
further categorized into:
• Cases
• Wallets
• Boxes
• Keys Fob
• Accessories
These categories have also been sub-

divided:
• Cases in the All & Sundry division are of different forms, such as:
key case, credit card case, and spectacle case.
• Boxes make perfect presents and are of two kinds: trinket box
and jewelry box.
• Accessories used in
offices are specially
designed for
companies and are of
two types: note pads,
and memorandums.
They also have funky,
stylish and in-vogue
photo frames.
Shrinkage in Merchandise
Management
Shrinkage at JafferJees is 1-2%
and occurs due to customer
theft. Previously, at JafferJees, customers were given full privacy and
34
were allowed to explore the shop on their own, which increased pilferage
and resulted in lower margins. JafferJees now makes an extensive effort
to reduce this phenomenon by training their sales person to accompany
each customer without imposing on them.
HUMAN RESOURCE MANAGEMENT

JafferJees have one of the best human resource management, and it is
clearly evident from the fact that they have employees who are working
for them for around 15 years. In spite of not following the modern ways
of recruiting, they have got the most loyal and customer-oriented
employees. They just hire people on behalf of references. Usually all the
employees are related to each other.
Human resource management at JafferJees like any other retail or family-

oriented business involves the following activities:
• Recruitment
• Manpower Planning
• Motivation and Rewards
• Salary Structure
Recruitment Process
Gathering Information before Recruitment
JafferJees hire people on reference (most of the time it‟s from their
employees). So there is always a high supply of people available for a
vacancy, almost all of the employees have relatives looking for a job. And
they all want their relatives to join JafferJees. It is obvious, everyone
cannot be hired, so they try to sort out the best amongst all, who can
care for their customers, behave with them properly, satisfy their need
and at the end take care of the products and merchandise on display.
What a person has done in the past best indicates future performance.
Therefore they use appropriate techniques to help discover a person‟s
past performance and future possibilities. The amount of information that
they need to know about an applicant depends on the type of employee
being recruited. Most of the time they hire sales people, so there is little
to gather about them, all their information need is settled by the current
employee, who has provided reference for the applicant. Whenever they
require an office employee or a person who is to handle a large
responsibility, then they go for more information. Management at
35
JafferJees very well knows that the consequences of hiring an

incompatible worker can be very disruptive.
Preliminary Screening and Interview
Before hiring an employee, management at JafferJees, perform a brief

screening and interview. They look for a convincing capability in a person,
as he would be the one facing the customer. JafferJees want their people
to understand their customers need and find an appropriate solution to it,
Instead of just getting a sale.
Next they look for some obvious factors as voice, physical appearance,
personal grooming, experience and basic educational qualifications. They
at least want their employees to understand English or even just read or
write.
Recruitment
JafferJees does not have formal recruitment and selection processes.

Employees are usually hired on the basis of reference. Most of the time
new employees are hired on reference of the former employees (as
discussed in the previous section). It helps to bring present employees
into process – in an advisory capacity. Having helped in the selection,
they have a greater commitment to working with new hires. And for the
new hire too, it becomes easy to settle and get acquainted with others.
Termination
Where there are good and loyal people, there are opposites too.
JafferJees too, sometimes faced with arrogant and pathetic employees.
Instead of firing them straight, they first try to figure out the problem and
help the person with it. They only let them go when the productivity goes
to zero, or the person starts misbehaving with customers. Because, at the
end of the day, it‟s customers they look for. And the management knows
that, if they are not served well, low sales and bad word-of-mouth would
be their fate.
Manpower Planning
Although manpower costs are high, to support their image of a specialty,
store hires a number of employees to achieve the standards of
performance and productivity.
36
Even though JafferJees does not have a strict educational requirement for
its employees, yet it prefers to hire employees who have had the
experience of working in a retail outlet and have the ability to cope up
with the requirements of their job.
JafferJees considers the following aspects in manpower planning:
• Business planning
• Work task organization
• Store positioning
• Type of sale
• Working hours
Motivation and Rewards

If JafferJees comes across declining sales due to inefficiency of sales staff,
they try to correspond on a personal level with the employee and by
identifying the reasons for his diminishing performance, try to solve the
problem. This in turn motivates the employees and strengthens the
relations between the employer and employee.
Attendance Bonus
JafferJees wants their employees to be punctual. They award bonuses to

their employees who are prompt in coming to work each morning. And
similarly they deduct a certain amount from their salaries on showing up
late or being absent.
Other Bonuses
Other than only attendance allowance, JafferJees provide their employee

with several other bonuses and allowances.
On both Eids, twice a year, they give their employees a certain amount as
bonus, So that they can enjoy the festive season in a contented way.
Conveyance and Lunch allowance to all and an annual bonus is awarded

according to the performance of each employee.
Education
JafferJees help their employees if they seek further education; they get
them admitted to a reputed institution and assist them in studies. Not
only employees, JafferJees helped their employees‟ children in getting
37
education too. Along with running a business, they are striving for the
betterment of the society.
Physical Appearance
Management at JafferJees knows that the first encounter of customers is

with their salespeople if they are not dressed properly, negative
impression is what their customers would take as soon as they leave.
JafferJees provide their employees with good shirts, pants, JafferJees
wallets, mobile pouches, belts etc. it not only benefits their image but
helps uplift employees‟ lifestyle and boosts motivation.
Involvement with Employees
There are many businesses where the employees do not even know who
the owner is. But at JafferJees the situation is vice versa. They have a
total of around 50 employees and owners are well aware of every
person‟s name. They usually talk with each other, handle customers
together and have a friendly atmosphere. Employees realize that their
employer looks after them and cares for them, inciting them to perform
even better, whereas, the owner get a chance to know their employees
problems and help them to find a solution.
Salary Structure
The salary structure at JafferJees is such that a fixed amount of salary is
paid to all the employees at the end of the month. New recruits get a
basic salary that is set by the state. But once they get to know the tasks
and gain experience of handling customers and their needs, their salary is
raised to a certain percentage.
This maintains equality and coordination among employees and bars out
frustration. New employees know that their colleagues are paid more, but
they also know that they have been working for a long time. This sort of
salary scheme provides the salesperson with the security of income and
ensures high loyalty to JafferJees. Apart from all this, the benefits and
extra bonuses that their sales people get are well enough to retain them.
Inferential point - JafferJees care for their people, they help them and pay
them more than the industry average.
38
CONCLUSION
JafferJees is perceived to be the best quality leather goods provider. Over
the years, JafferJees has been successful in building a brand name and
image by delivering the benefits promised to the customers.
However, we feel that by adapting different modes of advertising

JafferJees can communicate the brand image more clearly, creatively and
effectively. It will also help them to reach to a larger audience. JafferJees
is not involved in any kind of research. If in future they plan to focus on
customer relationship management, they need to indulge in in-depth
research so as to identify the needs and desires of their target market.
JafferJees plans to expand further by opening an outlet in Lahore, and by

2010 it will start functioning. To give itself the maximum exposure, they
are also planning to expand to other major cities of the world such as
New York, London & Paris. It also has plans to introduce customer loyalty
programs to further strengthen its relationship with its loyal customer.
No business can be maintained effectively without going through

problems and issues. JafferJees too faced problems throughout their
journey. Recently, like all other businesses in the world, they too are
facing low sales because of the financial crunch all around the world.
Secondly, the country‟s current situation has also been affecting their
growth and pricing strategies. Frequent power and water shortages,
fluctuating petroleum prices, political instability, uncertain conditions,
high raw material costs and legal issues, they all contribute equally to
their challenges. But still the management at JafferJees is working out all
the solutions to this problem just only to deliver what they promise – A
tradition of quality.
39

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JAFFERJEES – A Tradition of Quality

Small Business Management

Compiled & Written By:

D. Type of business (11)

E. Store location (11)

I. Store orientation (20)

J. Store design (21)

K. E-Commerce activities (24)

L. Marketing strategies (25)

M. Marketing Mix (26)

O. Supply chain management (28)

P. Customer relationship management (29)

Q. Information systems (30)

S. Human resource management (35)

a. Current scenario (9)

b. Why JafferJees (9)

4. Type of business (11)

5. Store location (11)

a. Type of location (12)

b. Leather types (14)

i. Full-grain leather (14)

ii. Top-grain leather (14)

iii. Corrected-grain leather (15)

iv. Split leather (15)

c. Leather production process (15)

i. Preparatory stages (16)

ii. Tanning (16)

iii. Crusting (17)

d. Raw materials – skin (17)

e. Raw materials – accessories (18)

g. Cutting & stitching (19)

h. Recent trends (19)

9. Store Orientation (20)

a. Attractive Displays (20)

b. The circulation plan (21)

c. Space Audit (21)

10. Store Design (21)

a. Exterior & interior (21)

c. Fixture, visual type (22)

d. Merchandising & Display (22)

e. Window Display (23)

f. Counter Display (23)

g. Cascade Display (23)

h. Employee type (23)

i. Frontline employees (23)

j. Other staff (23)

11. E-Commerce Activities (24)

a. Online store front (24)

b. Online store – benefits (24)

i. International outreach (24)

ii. Managed inventory (25)

c. Online pricing (25)

d. Visual density (25)

12. Marketing strategies (25)

b. Store positioning (26)

c. International Expansion (26)

13. Marketing mix (26)

a. Product offering (26)

b. Place price (27)

c. People to serve (27)

d. People that serve (27)

14. Advertising (28)

15. Supply chain management (28)

a. Purchase order (28)

b. Vendor management (28)