ACKNOWLEDGEMENT
It is a pleasure to express my thanks & gratitude to all the persons in
Relaxo Footwear Ltd., New Delhi where I got the chance, support and
encouragement that enabled me to conduct my study with in the
stipulated period of time.
I take this opportunity to thank Mr. Jitin Kumar (Assit. General
Manager) and Mr. Jitin Kumar (Trainer) of Relaxo Footwear Ltd. for his
valuable advice & direction which he provided me during the course of
my project.
I am also grateful to our Chairman sir Dr. Pawan K Aggarwal and all the
members of ICFAI Business School, Dehradun for their constant support
& inspiration for the lifespan of the project.
My special thanks to Dr. Deepti Kiran (project guide) who provided me
valuable guidance & suggestions to complete the project. Without their
guidance & suggestions the project would not have seen the light of the
day. They shared their valuable time, long experience through which I
have become aware of different tools & aspects of management, which
were hard to find elsewhere for the completion of my training & project.
I once again take the opportunity to convey my heartiest thanks to all
those who were connected with the project directly & indirectly & have
provide me with a wonderful experience & learning opportunity.
Tanuj Singh
MBA 3rd
SEM
ICFAI Business School
Dehradun
TABLE OF CONTENT
CHAPTER CONTENTS PAGE NO.
1. Chapter -1 INTRODUCTION
2. Introduction
3. Chapter - 2LITERATURE
REVIEW
4. Industry Profile
5. Company Profile
6. Chapter – 3 ADVERSTING
SEGMENTS
7. Chapter – 4 RESEARCH
METHODOLOGY & DATA
ANALYSIS
8. Research Methodology
9. Data Interpretation
10. Chapter – 5 CONCLUSION
11. Conclusion
12. Limitation Of Study
13. Bibliography
14. ANNEXURE
15. Questionnaire
INDUSTRY PROFILE
INTRODUCTION
Historical background of Footwear:
History of the use of Footwear by human kind can be traced back to the
ice age about 6 million years ago. Due to unkind weather conditions the
need for footwear started growing. Other evidence shows that footwear
came to use at the end of the Paleolithic Period, at about the same time
the ancient people learned the art of leather tanning. Earlier footwear
was made of wrappings of dried grasses and only later on the art making
footwear from pieces of leather was developed. Until the mid-nineteenth
century footwear were made as straights i.e., there was no distinction
made between the right and left shoes. The left and right footwear were
identical and hence could be worn on either foot. Only prolonged usage
shaped them into right and left boots. The right and left shoes were
invented by a fashionable boot maker, William Young from
Philadelphia. The first crafted footwear was the Sandals, which are
known to be the successors to these wrappings. In India these Sandals
were called as Padukas, which were mainly well worn by the Saints.
Over centuries many varieties of footwear were made in the Himalayan
region in order to protect the feet from cold weather. Footwear was
made by leather, wool or remains of the plants. Since most part of India
is warm, footwear was not a necessity and therefore Indians were
barefooted for many years. Innumerable references to foot worship in
Indian culture convey the impression that the foot is regarded as an
important part of the human body. Touching the feet of elders was
considered as the height of good manners. It was considered as a
civilized behaviour. Until half a century ago, India was described as a
barefoot country. They were characterized by such toughness of foot that
they can travel for long distances without any discomfort. It seems likely
that the cultural adjustments lead to the adoption of footwear.
Furthermore, the ascetic Hindu, Buddhist and Jain sects were not
generally permitted the worldly luxury of footwear. Therefore footwear
was considered as a luxury until half a century ago. But even then India
was known for its traditional craft of footwear making.
The Indian Footwear sector is a promising one with tremendous
opportunity for growth both in the international and domestic market.
With low production cost, abundant supply of raw material, evolving
retail system, buying patterns and huge consumption market, this sector
is posed to grow to great heights. But this market is highly fragmented.
The unorganized sector dominates the industry posing a threat to the
organised players. The Indian consumers have become more discerning
these days. The double income stance, increased disposable income
among the urban middle class, brand and fashion consciousness due to
globalisation have all led to changing lifestyle of the Indian consumers.
The Indian Footwear Industry:
India being a country of artisans is known for its traditional craft of
footwear making. Some of the traditional footwear created by village
craftsmen include leather chappals in Kohlapur' embroidered Juttis in
Jodhpur, Indo-Tibetan felt boots in Sikkim and vegetable fibre shoes in
Ladakh. The industrial policy 1967 reserved the leather industry
including footwear only for small scale sectors. It was only during the
mid 1970s, 100% export oriented footwear units in large scale sector
were promoted. From June 2001 onwards the Government of India de-
reserved the leather sector.
During the past four decades starting from the year 1981 – 1982, the
export of footwear from India had increased tremendously. Though
India has a negligible proportion of exports in world trade, it is the
second largest producer of footwear next to China. India accounts for
14% of the global annual footwear production of 14.52 billion pairs.
India manufactures around 2065million pairs of footwear every year of
which 909 million pairs are made of leather, 1056 million pairs of non
leather footwear and 100 million pairs of shoe uppers. Nearly 70 percent
of the labour constituting around 15 lakh people are employed in the
unorganised sector majority of them are rural artisans, cottage and
household units, while the organised sector accounts for remaining 30
percent and employs over 5 lakh people.
Purpose of the Study:
The Indian consumer markets are growing and changing rapidly in terms
of its nature and composition. With the revolution taking place in the
distribution system through entry of super markets, shopping malls,
chain stores etc in the metros, small cities and towns potential for
lifestyle products have increased drastically (S L Rao, 2000). With the
change in the lifestyle patterns among the people especially the youth,
this product has also undergone a tremendous transition in terms of its
character. Though Indians
have not been the ones to spend on items like footwear, for the past two
decades there has been a tremendous change in the buying habits of the
consumers (Bijapurkar, 2001). It all started with the New Economic
policy passed in the year 1991, which opened doors for multinational
corporations. This led to urbanization, favorable patterns of
demography, increase in income levels and double income instances,
media proliferation and the desire to look good. Therefore the consumers
became more aware of the different varieties of products that are
produced and marketed all over the globe. India’s population is no
longer a liability but an asset to the marketers especially for the
consumer market (Bijoor, 2001). The Young - working population of
India and its growth are the biggest positive factor at present and in the
coming years. At present they represent 30% of the total population. The
boom in the IT sector has led to the emergence of ferociously growing
youth who can command large salaries from Indian and foreign
multinationals. These young consumers create an identifiable mark in
shopping. Their preferences are noticeably different because they are a
generation with economic power unlike any youth before them. Today's
youth were born in an era of technological and media advances that
affords them limitless access to the global market. This age group is
growing fast and is expected to number 241 million by 2030 (Source:
UN). It is no surprise that the national and international players are
paying attention to this generation's buying habits. With the woman
becoming more brand-conscious as opposed to the past state of being
product- conscious, more and more internationally renowned players are
expected to enter the market to fill this need-gap. Footwear is no longer
looked upon as a commodity but as image (Troy, 2000), attitude and
lifestyle. Therefore profiling the consumers on the basis of their
behaviour would help the managers to position their products in a better
way. Therefore there is plethora of opportunities still untapped in the
footwear sector. Footwear manufacturers in recent years along with the
powerful new role that retail is playing in organizing the Indian domestic
market, driven in part by surging consumer demand from entirely new
mid-market youth segments associated with the country’s IT-BPO boom
is all poised to new heights. For products which are manufactured
indigenously and for which the competition is less, segmenting the
market on the basis of demography will be typically sufficient. But these
days consumers are exposed to many varieties of products. Therefore
effective segmentation using new parameters are required for products
where the market is flooded with many national and international brands
and thus leading to heavy competition. With increasing globalization
there is stiff competition between the multinational, national and the
unorganized players to expand their market.
Current scenario of Footwear
The global footwear market size was valued at $365.5 billion in 2020,
and is estimated to reach $530.3 billion by 2027 with a CAGR of 5.5%
from 2020 to 2027. Footwear is used for covering and protecting the
foot from ground textures, temperatures, and from gravel roads.
Footwear are made up of different materials such as leather, plastic,
rubber, and fabric. Among these, leather is one of the prominent
materials used for fabricating footwear. Major players, such as Nike, use
eco-friendly raw materials, including recycled car tires, recycled carpet
padding, organic cotton, and vegetable-dyed leathers for producing
footwear.
Presently, increase inhealth awareness is observed among individuals
across the world, which has led to increase in number of individuals
visiting fitness centers and performing indoor & outdoor exercise
activities. This, in turn, has boosted the demand for athletic footwear
among all age groups. Moreover, working individuals opt for fitness
regimes such as swimming and running to remain healthy and active.
This has created a demand for footwear among all age groups, thereby
fostering the footwear market size.
Source:
[Link] Moreover, an
increase has been witnessed in the number of users of various social
media sites along with rise in internet penetration. Taking this into
consideration, most of key players in the footwear market strategize on
promoting their products and services on these social media platforms.
Social media marketing is one of the major strategies adopted by various
companies and industries, including wearable products market, on
imparting awareness about their product offerings among target
customers on social media channels. Thus, through social media
marketing strategy, global footwear market sights critical opportunity in
gaining traction and eventually
Source: [Link]
increase its registration among its target segments which also results in
boosting the footwear market demand. However, high prices and
significant popularity of footwear brands such as Nike, Adidas, and
Puma have led to the advent of counterfeit brands. Counterfeit brands
are usually prevalent in developing economies where customers are
highly price-sensitive. This factor hampers the sale of the existing
original footwear brands in these countries.
Increase in number of working women worldwide has augmented the
demand of trendy and stylish footwear, which can be used for formal as
well as casual occasions. Moreover, surge in disposable income is
allowing individuals to spend more on luxury goods, thereby driving the
growth of the footwear market. Demand for new fancy and trendy
footwear, shoes, slip-ons, and flip flops is continuously growing, thereby
boosting the footwear market growth.
RELAXO FOOTWEAR LTD.
COMPANY PROFILE
Company History:
Relaxo footwear ltd. As part of Relaxo Group which has a major
interest in Footwear production was incorporate in Sep 13 1984
as a private limited company to market the products of a group
concern such as hawai slippers light weight slippers canvas
shoes PVC footwear etc. It was subsequently converted into a
public limited company on March 31 1993. In the year 1995-96
the company has transformed from soley a Trading/Marketing
agency to that of a full/fledged manufacturing unit by putting up
a facility to produce 50000 pairs of hawai and lightweight
chappals per day on a two shift basis at bagadurgarh Haryana.
This project was a part financed by RWL ‘s maiden public issue
regretting Rs4.50 crores at a premium of Rs. 50 per share of
face value of Rs. 10. In the year 1999 the company has
expanded the capacity of its Bahadurgarh plant. The company
has implemented a Hitech Hawai manufacturing plant at
Bhiwadi (Rajasthan) which is the largest Hawai manufacturing
plant in India during the year 1999-2000. The commercial
production of this new plant has commenced in the month of
July 2001. The board of Directors of Relaxo Footwears at their
meeting held on 9 May 2015 have declared bonus issue was
approved by the Shareholders through the Postal Ballot on 22nd
June 2015. Tehe allotment of the bonus issue has been made in
the Board Meeting held on 3rd July 2015 to all the Shareholders
of the company holding shares on the record date i.e. 2 nd July
2015. In the FY 2016 the company focused on strenthenig the
backend infrastructure by improving inventory control and
building a flexible supply chain. It has also been successful in
adapting changes in technology to upgrade its ERP ad reporting
platforms. This has led to improved visibility across the system
and is supporting better decision-making. The Company’s
structured store expansion has helped strengthen the Relaxo
brand and facilitate a strong connect of the company with the
end consumer. Its online shopping portal
[Link] has been redesigned and its performing
with better conversion rates than nitial estimate. During FY
2017 the Company opened net 20 new retail outlets across India
and also started its retail operations in the states of Madhya
Pradesh Himachal Pradesh and Chandigarh. Its new stores are
larger in size with adequate space to enhance the consumer’s
shopping experience and to ensure visibility of its entire range.
The Company launched the e-wallet payment mode at all retail
outlets to support cashless payments. Additionally it also
launched its online shopping mobile application to cater to
consumers who prefer online buying. Besides these it opened
few value stores to liquidate SLOB inventory of offering high
quality products at discounted prices to consumers. During
FY2018 the company launched a strategic initiative to
streamline the distribution network specially in under
penetrated markets which have given Relxo substantial
incremental sales. This has laid the foundation for next wave of
growth for Relaxo substantial incremental sales.
The has laid the foundation for sales of its products to the
emerging online consumers and has posted a decent growth in
FY 2018. It made considerable efforts to strengthen operations
in international markets with a specific focus made considerable
efforts to strengthen operations in international markets with a
specific focus made considerable efforts to strengthen
operations in international markets with a specific focus on
Middle East Africa and Oceania. It has opened branch office in
Dubai to be nearer to customer. In FY 2018 the Company has
achieved landmark target of opening 300th exclusive reatail
products. During the year Company has opened 8 Franchise
outlets (FOFO) in eastern region on experimental basis. In FY
2018 vendor portal was launched for online registration of new
vendors to improve vendor base besides facilitating existing
vendors to upgrade their profiles new products offering etc.
During the year audit the year audit was carried out on main
vendors for assessment of their infrastructure and quality control
systems maintained by them. This helped in making them more
aware about their expectations about quality in supplies. This
initiative helped in rationalizing and improving vendor
portfolio. During FY 2018 the company not only focused on
improving the quality of products but also in improving various
packaging materials.
Company Profile
INTRODUCTION
It 1976, two brothers Mukund Lal Dua & Ramesh Kumar Dua dreamed
to take their father’s footwear business business to what Relaxo is today
– one of the leading and most popular footwear companies in India. A
household name, literally.
With its headquarters in New Delhi and 8 manufacturing units, Relaxo
producers over 6 lacs pairs of footwear, every day. Relaxo footwear’s
range boasts a fine combination of comfort, style, and quality
workmanship. A wide collection of fashionable, colourful, comfortable
and durable footwear for men, women and children.
For a changing India. For a trendsetting India, Relaxo is geared to meet
the quality and choice execptaions of a young India with its sub-brands
such as sparx Bahamas, Flite, schoolmate and Relaxo Hawaii.
Relaxo
For over 40 years, multiple millions of Indians have vouched for its
durability and comfort. With nearly 300,000 pairs manufactured daily,
Relaxo Hawaii continues to meet, across India, the stringent demands of
its users for high quality footwear. The brand today has become
synonymous with the rubber footwear category.
Marked Footprints in the Market
Since inception, Relaxo has consistently lived by and upheld its quality
assurance by rigidly adhering to the statutes of Quality Par Excellence
and Absolute Customer Satisfaction. We are committed to our objective
of providing quality footwears that meet & exceed the expectations &
ever changing needs of customers.
We do a lot of market fashion sensing, consumer feedback, trade
feedback both before & after the product is launched in the market.
Equipped with top R&D team, who covers every forefront ranging from
– changing needs to seasonality, from new technologies to innovative
designs, to ensures jaw-dropping products. Quality control Dept.
monitors every stage of manufacturing process, right from pre-
production to shop floors and post purchase feedback. Some of the
quality tests that our products are subjected to are:
Random Testing
Batch Testing
Tactical Wear Testing
Our Certifications & Affiliations
Our continuous efforts have resulted the following certifications & affiliations
to our credit:
ISO 9001: 2015 - Quality Management System
ISO 14001: 2015 - Environmental Management System
OHSAS 18001: 2007 - Occupational Health and Safety Assessment Series
BIS/SATRA Manufacturing Standards
India’s Best Corporate Brand 2016 at The Economic Times Best Corporate
Brands Summit
CLE (Council for Leather Export)
Sparx – India’s most trusted brand in Footwear Category as per “ Brand
Trust Report 2016 “
Power Brand Of the Year 2015 by Plan Man Media
Quality, Environmental and Safety Policy
Relaxo is committed to provide innovative value added quality
products, environmental protection and occupational health.
Relaxo shall fulfill all compliance obligations, prevent
environmental pollution, conserve natural resources and prevent
injury & ill health.
This policy shall be communicated to all those who are working for
and on behalf of the organization and will be made available to all
interested parties.
The above commitments would be achieved through continual
improvements and by meeting set objectives and their targets.
SUBSIDIARIES OF RELAXO
Bahamas
Think of Bahamas, think of a place that reflects a vibrant culture, music,
beaches and fun. For the trendsetting young India Bahamas exudes the
same feeling in its range of colourful and stylish footwear. And who can
make make a bolder style statement other than the Bhaijaan of
Bollywood – Salman Khan. As the brand protagonist for Bahamas,
Salman embodies the very essence of the brand – style & fun.
Flite
There are brands you wear and then there are brands you boast of ‘Flite’
is the Latter. Its Relaxo’s most executive brand. It’s unique
“Fashionable & Lite” promise has made it the first choice of the Indian
men and women, urban and rural. Available in confirmtable and light
casual wear and fashionable, stylish formal wear, its EVA and PU range
is replete with design and colours. Flite makes it easy for the Indian
youth to make a style statement.
Go out in a pair of Flite and the world will notice you.
Sparx
When it comes to footwear, how can we ignore the demands of those
who want the drenaline rush. Be it attitude, style, toughness and more,
sparx is for those who stop at nothing and are always ready to take on
any odds and challenges that come in their way. So go ahead, and Add
sparx to your life.
Bolywood superstar Akshay Kumar endores this brand.
Schoolmate
The future of India is in our young kids in school. To meet their
growing footwear demands, we have a special brand. Schoolmate – a
range of comfortable and durable school shoes for boys and girls,
Schoolmate is designed to keep those tiny feet walk, run, jump and hop
at school with ease and the confidence to always stay A Step Ahead.
Elena
Elena is the other brand of Relaxo. They deal with ladies shoes basically
Casual shoes.
CHAPTER III
ADVERTISING SEGMENTS
1. Below the Line
2. Above the Line
3. Out-of-Home
ADVERTISING SEGMENTS
BTL(Below the Line) Activities for Brand Promotion and Activation
Time keeps on changing, and so does marketing trends and strategies.
Gone are the days when traditional marketing and ATL activities (print,
media, radio & internet) wre only responsible for generating leads. Year
ago, ATL (above-the-Line) marketing activities were in existence. Ever
since marketers started using experimental marketing solutions to
promote their brand, BTL activities have taken over traditional
marketing entirely in the current scenario.
Marketing is a multidimensional zone, that demands to walk along with
the current trend to gain desired goals. BTL activities are dominating the
marketing arena, and all marketers are well aware of below-the- line
activations. BTL activations are known to grab target audience sight
quite quickly and garner untapped target customers. BTL activities are
known to enhance two-way interactions while building a customer-brand
relationship.
You must be puzzling with various questions like, what are these
activities? How do these activities prove beneficial in your marketing
experiences? Why you need BTL activities to amp your marketing
game? Firstly let’s understand what is BTL marketing and how it
works?
What is BTL Marketing and How It Works?
BTL is known as below the line advertising. It is marketing strategy
where products are promoted on a more personal level than ATL
advertising include direct mail campaigns, trade shows, catalogs, brand
promotion activities, telemarketing, free sampling, exhibitions and
targeted search engine marketing. BTL activities are more interactive
and give the opportunity to brands and consumers to connect on a
personal level. Its allows a direct point of contact between customers
and the brand. With the changing dynamics of marketing, Instrgram,
Hashtag, Printers and Social or Tweet Café are being used extensively as
a part of BTL marketing strategy to engage more target audience. BTL
activation gives your brand the desired exposure and increases its
visibility.
Why should companies opt for BTL activities in your next campaign?
Direct Point of Contact between Customers & Brands
BTL activities enable direct communication between brands and
customers. Direct communication helps customers to understand the
product in a better way, and connect both on s personal level. It helps
brands to understand the product in better way, and connect both on a
personal level. It helps brands to understand customers buying patterns
and behavior. BTL marketing includes brand activation, mall activation,
email marketing, telemarketing, exhibitions and more. BTL activations
can further result in brand loyalty. Nowadays, marketers are using
interactive technology solutions to leverage their brands. Instagram,
Hashtag Printer, Social 360 Photo Booth, Tweet Café, Photo and GIF
Booths are some of the common practices used by brand activation
agencies.
Create Brand Awareness
BTL activities help marketers to spread awareness about the brand. It
helps people to connect with the brand and explain the benefits of a
brand. BTL activations help in attracting more customers while
increasing the leads of a brand. Innovative and creative BTL activities
are the most preferred marketing strategy used by marketers in the
current scenario, as it creates a niche for a brand. It helps the brand to
mark its presence in the market.
Reaching Your Target Audience
BTL activations help you in reaching your target audience. Having the
desired goal allows you to plan accordingly. Whether you opt for mall
activation, brand activation or hashtag printer, you must aware of you
target group of audience. BTL activities help you in reaching the right
consumer.
Makes Your Brand Stand Out
Innovative BTL activities help your brand to stay ahead of the
competition. Millions of brands came into existence, and television is
flooded with many advertisements.
Advantages of Below the line marketing
Extremely Targeted: Conversions are better when the
communication is done according to the customer wants. Since BTL
marketing strategies are extremely targeted, results are better in
terms of conversions.
Better ROI: Below the line promotional efforts are focused on the
specific target group, have a better reach, can be easily executed,
tracked, and controlled. Hence BTL strategies provide a better ROI
and MROI in terms of conversion.
Easy Control: The return from these activities can be easily tracked
and monitored and steps can be taken to improve ROI.
Tailor-Made: Below the line advertising strategies are designed
according to the needs of a specific target group and hence can be
moulded differently for different customer groups.
ABOVE THE LINE
Above the Line advertising (often referred to as Above the Line
promotion/ Above the Line marketing / ATL advertising) consists of
advertising activities that are largely non-targeted and have a wide reach.
ATL communication is done to build the brand and inform the customers
about the product. Conversions are given less importance in above the
line advertising.
To make it simpler-
Above the line marketing includes mass marketing strategies which are
largely untargeted and are focused on building the brand.
By ‘untargeted’ we mean that the communication isn’t directed towards
a specific group. The mediums convey the message to everyone who has
access to them.
Examples of Above the Line Promotion
Television
an average American watches 4.3hours of TV in day. It’s a similar case
with the rest of he world. TV advertisements have a reach from local, to
national, and international audience depending on the TV channel and
the contract between the parties. TV advertisements have a better
connection with the users as moving images with audio are preferred
over still images or audio alone.
Radio
Psychologists tell us that consumers need to be exposed to an
advertising message at least three times before it begins to penetrate. No
other media other than radio provide such affordability when it comes to
this frequency
Radio is a perfect option for marketers to fulfill all the frequency and
creative demands of an advertisement. Radio to have a local national
and international reach just like TV’s.
Print advertisements (magazine & newspaper)
Local, regional and national print media has a wider reach than any of
the other mediums. Newspapers have fixed ad-slots that are used by
marketers to inform customers / prospective customers about the brand
or offers.
Magazines exist in niches and make it easier for marketers to reach their niche
directly through them.
Outdoor Advertising
Outdoor advertising is usually done in public places and is constantly on
display, have a greater reach depending on the locations. They include Flags,
Banners, Wraps, Billboards, etc.
OUT-OF-HOME ADVERTISING
Out-of-home advertising (OOH) is any visual advertising media found
outside of the home. This can include billboards and signs, ads on
street furniture like bus shelters or benches, in transit areas like airports
or train stations, and place-based ad media like you might see at a
stadium or in the cinema. These various formats account for thousands
of locations and millions of screens around the world. OOH is an
expansive category, and today represents spending of about $29 billion
across key markets around the world. Some of the world’s most
important advertisers, including McDonalds, Apple, Amazon, HBO,
and Coca-Cola, all make regular and extensive use of various OOH
formats in their campaigns.
Example: Apple’s clever “Shot on an iPhone” billboard campaign
invited its customers to send in photos shot on their iPhones. Standouts
were turned into billboards that appealed to onlookers’ aspirations.
RELAXO BTL ACTIVITIES
BTL Activities
Below-the-line advertising (often referred to as Below the Line
promotion/ Below the Line marketing / BTL marketing / BTL
advertising) consists of very specific, memorable and direct advertising
activities focused on targeted groups of consumers. Often known as
direct marketing strategies, below the line strategies focus more on
conversions than on building the brand.
To make it simpler –
Below the line marketing includes direct marketing strategies directed to
specific target groups and focused on conversions rather than building
the brand.
BTL Activities conducted by Relaxo:
Point of Sales Materials (POSm):
POS materials are used for executing advertising campaigns,
exhibitions, and presentations. As an effective marketing tool, well
thought out and properly presented POS materials attract consumer
attention and promote the brand. Due to their appealing and informative
nature, POS materials are capable of stimulating directly at the point of
sale.
Logrus offers services in design, print and development of a variety of
POS materials including the following:
Shelf-talkers
Stoppers
Price tags
Packaging
Promotional stands
Roll-stands
Banners
Hard Posters, etc.
BRANDING
Branding is all of the ways you establish an image of your company in your
customers’ eyes.
By building a website that describes what you offer, designing ads that
promote your goods and services, selecting specific corporate colors that
will be associated with your company, creating a logo, and featuring it
across all your social media accounts, you are branding your company.
That is, you are shaping how and what people’s perceptions of your business
are.
And what your customers say about your brand is the reality (not what
you’d like them to think). It’s the impression that pops into their minds
when they hear your business’ name. It’s based on a feeling they have
that is based on their experiences they’ve had with you, good or bad.
What’s the Point?
The purpose of branding is to simply and easily help your customers.
Understand what you offer and how you’re different. But it’s not only a
USP (Unique Selling Proposition), it is the combination of all the ways
you communicate what you stand for.
In addition to your logo and corporate colors, you can communicate your
brand message through:
Your store environment and atmosphere
How your staff members treat customers
How your staff members dress
The products you carry
The price you charge
Product packaging
Public speaking
Direct mail sponsorships
Advertising
Nonprofit partnerships
BRANDING STRATGIES
The formulation of branding strategies starts from the building a
sustainable brand for the company. This is so as the consumers buy the
brand not only for the intrinsic values associated with it but also because
of the promise that branding makes to the consumer….the promise of
delivering values beyond expectation. A framework is suggested below
for the formulation of a brand strategy:
1. Experimental Branding: The first component of branding strategy is
the experiential marketing. It is a well known fact that the customers
demand experiences instead of products or services. This creates a
challenge to the organizations to find new ways to involve the customers
in the value chain so that they themselves can decide the product
features and uniqueness that they expect from the brand. They want to
know more about the details of the brand. They remove the shells and
get into the core of the processes to understand the real value of the
brand. Hence such a strategy should be framed that makes the
consumers involvement higher.
2. Effective Branding: It is found that effective branding involves
working on four important dimensions, namely:Figure: dimensions of
effective branding
• The Functional Dimension-The functional dimension concerns the
perception of benefit of the product or service associated with the brand.
• The Social Dimension-The Social Dimension concern the ability to
create identification with the group.
• The Spiritual Dimension-The Spiritual Dimension is the perception of
global or local responsibility
• The Mental Dimension-This Dimension is the ability to support
individual mentally.
SWOT AND PEST ANAYSIS
SWOT ANAYSIS
SWOT stands for strengths, Weaknesses, Opportunities, and Threats,
and so a SWOT Analysis is a technique for accessing these four aspects
of your business.
You can use SWOT Analysis to make the most of what you’ve got, to
your organization‘s best advantage. And you can reduce the chances of
failure, by understanding what you’re lacking, and eliminating hazards
that would otherwise catch you unawares.
Better still, you can start to craft a strategy that distinguishes you from
your competitors, so complete successfully in your market.
Strengths
Very competitive organization. Founder and CEO in often quoted
as saying that ‘Business is war without bullets.’ Has a healthy
dislike of is competitors. At the Atlanta Olympics, competitors
went to the expense of sponsoring the games. This company
sponsored the top athletes and gained valuable coverage.
Have no factories. It does not tie up cash in buildings and
manufacturing workers. This makes a very lean organization.
Strong at research and development, as is evidenced by its
evolving and innovative product range. They then manufacture
whenever they can produce high quality product at the lowest
possible price. If prices rise, and products can be made more
cheaply elsewhere (to the sameor better specification), will move
production.
Global brand. It is the number one sports brand in the world. Its
famous ‘symbol’ is instantly recognizable.
Weakness
Organization does have a diversified range of sports products.
However, the income of the business is still heavily dependent
upon its share of the footwear market. This may leave it vulnerable
if for any reason its market share erodes.
The retail sector is very price sensitive. Does have its own retailers.
However, most of its income is derived from selling into retailers.
Retailers tend to offer a very similar experience to the consumer
can you tell one sports retailer from another?
Opportunities
Product development offers many opportunities. The brand is
fiercely defended by its owners whom truly believe that it is not a
fashion brand. However, like is not, consumers that wear the
product do not always buy it to participate in sport. Some would
argue that is youth culture especially, it is a fashion brand. This
creates it own opportunities, since product could become
unfashionable before it wears out. i.e. consumers need to replace
shoes.
The business could also be developed internationally, building
upon is strong global brand recognition. There are also global
marketing events that can be utilized marketing events that can be
utilized to support the brand such as the World Cup (soccer) and
The Olympics.
Threats
As discussed above in weaknesses, the retail sector is becoming
price competitive. This ultimately means that consumers are
shopping aroung for a better deal.
The market for sports shoes and garments is very competitive.
PEST ANAYASIS
Politi
cal
Threats
Foreign Direct Investment Policies. A few foreign countries
now have policies in place that prohibit full ownership of
retail stores. These policies hold a threat to
internationalization.
Currency exposure risk
Competitive tax system internationally
Economic
Opportunities
Growth of the performance shoe industry
Economic recovery
Strong brand equity
Threats
Increase in interest rates
Increase in labor costs and inflation in India
Under Armour shoe sales relies on a consumers discretionary
income
Increase in the shipping costs of raw materials and company
resources
High reliance on overseas manufacturing and outsourcing
Socio-Cultural
Opportunities
Quality over price is valued in the footwear industry
Average lifespan in the India is 78 and due to the
economic crisis, people over 68, are worth 47 times more
than people under the age of 35.
Increase in physically active seniors
Obesity rates have risen in the India making some
consumers more health conscious
Participation in sports is a major part of Indian culture
Rise in the number of women athletes
Threats
Obesity rates in the India have raised showing that
some people are not interested in physical activity
Technological
Opportunities
Increase in the use of commerce conducted electronically
Increase in the use of mobile commerce
stems becoming increasingly popular for marketing to consumers
New technologies emerging that allow corporations to
become more energy efficient as well as reduce
manufacturing costs
Conclusion:
The opportunities for the athletic shoe industry outweigh the threats.
Although labor, gas and interest rates are increasing, there is greater
opportunity for global growth as well as growth in athletic participation.
Due to the high rivalry and brand loyalty between Under Campus and
Lakhani high barriers of entry are created. This is why these two
companies share an attractive industry.
Source: [Link]
Date: 30th May 2020
COMPETITORS
1. Lakhani India
2. Campus
3. Bata India
4. Columbus
5. International Brands
LAKHANI INDIA
Originally incorporated as Lakbros Shoe Company Pvt Ltd in Dec.'81,
Lakhani India (LIL) was converted into a deemed public limited
company on 14 Jul.'89 and its name was changed to Lakhani India in
Sep.'94. Promoted by K C Lakhani, P D Lakhani and J C Arora, LIL
belongs to the Lakhani group. It manufactures and markets shoes and
chappals. In Jun.'95, LIL came out with a public issue of 38.4 lac equity
shares at a premium of Rs 110, aggregating Rs 46.08 cr, to part-finance
the expansion-cum- modernisation of its non-leather shoe unit from 30
lac to 61.65 lac pairs pa at Faridabad, Haryana, and its diversification
into the manufacture of 3 lac pairs of leather shoes. The other companies
in the Lakhani group are Lakhani Rubber Udyog, Lakhani Footwear,
Lakhani Shoe Company, Lakhani Shoes, etc. The group is the largest
manufacturer of beach slippers and the second-largest manufacturer of
canvas shoes in India. It exports goods to UK, Sweden, Italy, France,
Germany, Ireland and Western Australia. The manufacturing units of
LIL are at Bhiwadi, Rajasthan; Noida and Faridabad, Uttar Pradesh; and
Indore, Madhya Pradesh. The Lakhani group is one of the largest
suppliers of rubber components to automobile manufacturers like
Maruti, TELCO, Escorts, Sona Steering, DCM Daewoo, etc.
CAMPUS (Action Shoes)
Action is one of the best shoe brands in India. Action shoes have many
popular sub-brands names under it like Action School Time, Action Eva
Flotter, Action Health Plus, Campus and Action Synergy. This brand is
producing high-quality products that are affordably priced and are
popular among masses and youth for the past three-four decades. It is
popular in India for sports footwear and schoolchildren’s footwear.
Action Shoes Private Limited is majorly in shoe Business Services from
the last 36 years. It was incorporated in 1984. Their casual shoes include
canvas shoes, moccasins, loafers, and even party wear shoes in multiple
color options like black, brown, maroon and even white color. They may
not be stylishly designed but they have good features that can keep you
comfortable throughout the day. They are best suited for all the
occasions- formal, casual or semi-formal occasions and shop online to
find the right footwear you need. Action Shoes Private Limited is
majorly in shoe Business Services from the last 36 years.
BATA INDIA
Bata is a footwear manufacturing company incorporated in 1931. The
company was earlier known as Bata Shoe Company, later in 1973 the
name was changed to the present one.
The company manufactures footwear for men, women and children. The
Company manufactures shoes of various quality such as leather, rubber,
canvas and PVC shoes.
Bata Group has worldwide presence across 5 continents, serving 1
million customers per day and operating 4,600 retail stores globally.
Prior to incorporation of Bata footwear were manufactured by
handicrafts and small enterprise sectors. The company started with its
small operation unit located at Konnagar (near Calcutta) in 1932.
Currently it has five factories located at Batanagar, (West
Bengal), Bataganj, (Bihar), Faridabad (Haryana), Peenya (Karnataka)
and Hosur (Tamil Nadu).
Today the company is the largest shoe company in terms of sales and
revenues. It commands around 35 percent of market share in.
Company’s 98 percent revenue comes from domestic operation. It owns
1250 stores spread across India.
BIL’ manufacturing unit became first Indian shoe company to receive
the ISO: 9001 certification. The company currently sells over 45 million
pairs of shoes every year and has an annual sales turnover of more than
Rs 8000 million (USD 178 million).
Currently the company owns brands like Hush Puppies, Dr Scholls,
North Star, Power, Marie Claire, Bubblegummers, Ambassador, Comfit
and Wind.
COLUMBUS
Columbus India Limited is a Non-govt company, incorporated on 05
Dec, 2007. It's a public unlisted company and is classified as'company
limited by shares'.
Company's authorized capital stands at Rs 75.0 lakhs and has 19.333332%
paid-up capital which is Rs
14.5 lakhs. Columbus India Limited last annual general meet (AGM)
happened on 29 Sep, 2017. The company last updated its financials on
31 Mar, 2017 as per Ministry of Corporate Affairs (MCA).
Columbus India Limited is majorly in Manufacturing (Machinery &
Equipments) business from last 13 years and currently, company
operations are active. Current board members & directors are VINAY
KUMAR SINGH, PRAMOD KUMAR SINGH, DHANANJAY
SINGH, MANJU SINGH and VIPIN SINGH .
Columbus India Limited registered address is A-59,DEEPAK
VIHAR,VIKAS NAGAR, UTTAM NAGAR, NEW DELHI West Delhi
DL 110059 IN.
CHAPTER IV
RESEARCH METHODOLOGY & DATA ANAYSIS
RESEARCH METHODOLOGY
This project carried out a research which is both qualitative and
quantitative in its support. The qualitative approach applies to both,
descriptive and inductive forms of research. While as in case of
quantitative approach, an extensive use has been made of the literature
available to carry out a detail research on the nature of the problem.
METHOD OF DATA COLLECTION & ANALYSIS
The data, after collection, has to be processed and analyzed in
accordance with the outline laid down for the purpose at the time of
developing the research plan. This is essential for a scientific study and
for ensuring that we have all relevant data for making contemplated
comparisons and analysis.
This research conducted a graphical analysis based on the responses
received from the persons questioned and interviewed. Once the
interview was over, the responses received were be grouped together,
and a graphical presentation and analysis has been made for every set of
questions.
SOURCES OF DATA
The data collected for this project is basically primary and secondary
data which is collected from Magazines, Internet and Books. As it is
really a very difficult task to take views of higher authorities of any
company in such a less time and analyze their responses.
NATURE OF DATA
This project contains both primary sources and the secondary sources of
data in eliciting information.
PRIMARY DATA
The primary source of data involves oral interviews with retailers and
questionnaires of retail shopkeepers. These sources are inadvertently
expected to yield more qualitative data and results.
SAMPLE SIZE: 120
SURVEY AREA: West
Delhi SAMPLE UNIT:
PRIMARY DATA COLLECTION METHODS
This research conducted oral interviews with retailers of Nestle. In
considering an oral interview of such a nature, a follow up and step by
step approach was adopted in getting through the interviewees. The oral
interview involved a set of well thought out questions that were asked
and the responses there on noted as a basis for analysis. Subsequently a
graphical analysis has been made based on the responses received from
the persons questioned and interviewed.
SECONDARY DATA COLLECTION METHOD
The secondary source of data includes relevant literature including
periodicals and journal articles in the areas of Marketing, customer
satisfaction.
As it is a secondary research, all the data is selected after rigorous
analysis of Articles from Newspaper, Magazines and Internet.
DATA ANALYSIS OF CONSUMER PERCEPTION TOWARDS
INSURANCE
DATA ANALYSIS OF CONSUMER PERCEPTION TOWARDS
INSURANCE
CHAPTER V
CONCLUSION
This research concluded that the maximum numbers of retailers buys the
products of Sparx, and there is less preference of Lakhani’s product.
Retailers procure Relaxo products from the distributors more than the
wholesalers. The respondent says that the sale of product of Relaxo is
more in Summer than the Winter. This research also conclude that the
buyers buy nestle product more because of its quality, less number of
buyers should buys it through its schemes and variety. This also
conclude that the distributors of Relaxo comes weekly more than the
competitors distributors comes in terms of goods and services again
Lakhani is good than the other competitors and the service of Campus is
worst in comparison to other competitors according to the retailers. This
research also conclude that the buyers buy Relaxo product more because
of its quality, less number of buyers should buys it through its schemes
and variety. This research also concluded that less numbers of
respondents face problem with the Relaxo Footwear Limited, more
number of respondents are happy and satisfied with the Relaxo Footwear
Limited. Therefore, it is concluded that the quality of goods and quality
of services of Relaxo Footwear Limited is good.
OBJECTIVE OF THE STUDY
To know about those confectionery brands which shopkeeper stock at
their outlet.
To know about the factors on which customer prefer other brands.
To know about the problem they face with Relaxo Footwear Limited. If
any?
LIMITATIONS OF THE STUDY
1. The study is confined to limited period.
2. Accuracy of the study is mostly based on the secondary data.
3. The analysis and conclusion made by me as per my limited
understanding and there may be something variation in the actual
situation.
4. The accurate decision cannot be taken by the information
collected; people were relocating while giving their personal
information.
5. Dynamic nature of the environment, that is relevant today may not
relevant in future.
Bibliography
Websites
[Link]
[Link]
[Link]
[Link]
[Link]
Books
Philip Kotler “Marketing Management” 11th edition
Questionnaire