Submitted to the MAHATMA GANDHI UNIVERSITY In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Under the guidance of
Dr. ANDEZ GEORGE Assistant Professor
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT ALUVA, COCHIN, KERALA 683106
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT ALUVA, COCHIN, KERALA 683106
CERTIFICATE
This is to certify that the project report entitled, A Study on the Buyer Behavior of Bombay Dyeing Products with Respect to Mumbai Franchises is a bonafide record submitted by Ms. Rosemary J oseph, Reg. No.33136, in partial fulfillment of the requirements for the award of the Degree of Master of Business Administration during the academic years 2011-2013.
Date : Dr. RADHA P. THEVANNOOR DIRECTOR
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT ALUVA, COCHIN, KERALA 683106
CERTIFICATE
This is to certify that the project report entitled, A Study on the Buyer Behavior of BOMBAY DYEING Products with Respect to Mumbai Franchises, has been successfully completed by Ms Rosemary J oseph, Reg. No.33136, in partial fulfillment of the requirements for the award of degree of Master of Business Administration, under my guidance during the academic years 2011-2013.
Date : Dr. ANDEZ GEORGE ASSISTANT PROFESSOR
DECLARATION
I, Rosemary Joseph, Reg. No.33136, hereby declare that this project work entitled A Study on the Buyer Behaviour of Bombay Dyeing Products with Respect to Mumbai Franchises, is my original work. I further declare that this report is based on the information collected by me and has not previously been submitted to any other university or academic body.
Date: ROSEMARY JOSEPH Reg. No. 33136 vi
ACKNOWLEDGMENT The successful completion of this dissertation owes to the inspiration and the constant support of so many persons. First of all, I would like to thank Almighty God for his blessings and for being with me all the way through. I am obliged to the various individuals below, for their crucial role in helping to transform a bunch of disorganized ideas and crude figures into this study. First and foremost I would like to thank our Director, Dr. RADHA P. THEVANNOOR for her valuable suggestion and ideas about the conduct of the study. I thank Mr. RAJ. V. SINHA, the General Manager, RDS department, for allowing me to do my Industrial Project in THE BOMBAY DYEING & MANUFACTURING COMPANY Ltd Next I wish to thank all the employees in the RDS department for their valuable support, guidance throughout the course of the study. I also extend my heartfelt thanks to my faculty guide Dr. ANDEZ GEORGE for his objective guidance during the course of the project. I place on record my sincere thanks to my family, friends and all those who directly and indirectly helped me in this endeavor.
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EXECUTIVE SUMMARY This study aims to understand the buyer behavior on the different Bombay Dyeing products. This study is conducted under the guidance of Mr. Raj. V. Sinha, General Manager, Sales. The study conducted under the company in Mumbai and its different franchisees in Mumbai. The general objective of this study is to analyze the buyer behavior and the impacts of it on the different bed and bath products of the company. From the detailed analysis of the survey conducted we get a general view of which products of both bed and bath is in demand and which is not. The study also satisfies the specific objectives to a great extent. We get a general idea of what age group and which gender prefers more of the company products and what makes them come over and over again as they stick on to the brand, Bombay Dyeing. The findings of the study have been arrived at, that the most moving bed linens during the study period was Zinnia, Flora and Ambrosia mainly due to the price range and the designs and the vibrant colors available within a budgeted range. Likewise, in the bath items, the most moving were Santino, Alpine, Flora as of there price range and the variant colors availability. Though all the products are preferred of the company mostly the above mentioned were sold out during the study period from the 12 stores of the company. By the study it was clearly understood that the quality available within a descent price range makes Bombay Dyeing different from the competitors and become the people choice to their home.
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TABLE OF CONTENTS CHAPTER NO. TITLE PAGE NO.
ACKNOWLEDGEMENT vi
EXECUTIVE SUMMARY vii
LIST OF FIGURES x
LIST OF TABLES xii ONE INTRODUCTION 2-11
1.1. An Introduction to the Study 2
1.2. Statement of problem 2
1.3. Literature review 2
1.4. Significance of study 9
1.5. Scope of study 9
1.6. Objective of study 9
1.7. Methodology 9
1.7.1. Nature and population 10
1.7.2. Sampling & Sample size 10
1.7.3. Data Source and Method of Collection 10
1.7.4. Data Analysis & Interpretation 11
1.8. Limitations of the study 11 ix
CHAPTER NO. TITLE PAGE NO. TWO INDUSTRY, COMPANY, PRODUCT PROFILE 12-30
2.1 Industry Profile 12-22
2.2 Company Profile 23-26
2.2 Product Profile 27-30 THREE DATA ANALYSIS & INTERPRETATION 32-44 3.1. Data Analysis 32 FOUR SUMMARY OF FINDINGS, SUGGESTIONS & CONCLUSION 46-49 4.1 Summary of findings 46 4.2 Conclusion 49 BIBLIOGRAPHY 50 ANNEXURE 52-55
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LIST OF FIGURES
FIG NO. TITLE PAGE NO. 3.1 The gender of the observed customers 32 3.2 How often the observed customers come for the purchase in the store 33 3.3 What factors exclusively make the observed customers purchase from the store 34 3.4 Whether the communication line is satisfactory in the stores that the customers find no complexity in approaching the stores 35 3.5 Whether the customers prefer the interactive purchase experience which is being offered in the stores relating to the different products and its features 36 3.6 Whether the franchisees been able to meet per the requirements of the customers 37 3.7 The age group of the purchaser 38 3.8 The fast moving bed sheets of Bombay Dyeing during the observed study period 39 3.9 The fast moving bed linens of Bombay Dyeing during the observed study period 40 3.10 Classification of the bills issued to the customers on the basis of amounts received during 12/9/2012 to 28/9/2012 41 3.11 Why the customers stick on to the brand Bombay Dyeing for a long period of time 42 xi
FIG NO. TITLE PAGE NO. 3.12 How the customers rate the experiential marketing and the merchandise technique adopted by the company 43 3.13 What according to the customers make the company products different so that they make their purchase there often 44
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LIST OF TABLES
TABLE NO. TITLE PAGE NO. 1.1
The major players in the textile industry 15 3.1 The gender of the observed customers 32 3.2 How often the observed customers come for the purchase in the store 33 3.3 What factors exclusively make the observed customers purchase from the store 34 3.4 Whether the communication line is satisfactory in the stores that the customers find no complexity in approaching the stores 35 3.5 Whether the customers prefer the interactive purchase experience which is being offered in the stores relating to the different products and its features 36 3.6 Whether the franchisees been able to meet per the requirements of the customers 37 3.7 The age group of the purchaser 38 3.8 The fast moving bed sheets of Bombay Dyeing during the observed study period 39 3.9 The fast moving bed linens of Bombay Dyeing during the observed study period 40 xiii
TABLE NO. TITLE PAGE NO. 3.10 Classification of the bills issued to the customers on the basis of amounts received during 12/9/2012 to 28/9/2012 41 3.11 Why the customers stick on to the brand Bombay Dyeing for a long period of time 42 3.12 How the customers rate the experiential marketing and the merchandise technique adopted by the company 43 3.13 What according to the customers make the company products different so that they make their purchase there often 44
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CHAPTER I INTRODUCTION
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INTRODUCTION 1.1 INTRODUCTION TO THE STUDY The study on the buyer behavior of the Mumbai population and its regard to the products associated with the company, Bombay Dyeing. The buyer behavior explains all about the details regarding to the general behavior of the studied population. The general pattern, the way and methods of each buyer and how they end up choosing a product among the variety they have and the classification they have about choosing it. 1.2 STATEMENT OF THE PROBLEM
To know the potential of the Bombay Dyeing bath and bed products across Mumbai and understand it through a thorough study of the behavior of the buyer visiting the franchisee stores. 1.3 LITERATURE REVIEW A buyer makes a purchase of a particular product or a particular brand and this can be termed product buying motives" and the reason behind the purchase from a particular seller is patronage motives" When a person gets his pay packet, and if he is educated ,sits down along with his wife and prepares a family budget, by appropriating the amount to different needs. It may happen that after a trip to the market, they might have purchased some items, which are not in the budget, and thus there arises a deviation from the budgeted items and expenditure. All the behavior of human beings during the purchase may be termed as "buyer behavior". Consumers are continually making choices among products, the consequences of which they are but dimly aware. Not only do consumers lack full information about the prices of goods, but their information is probably even poorer about the quality variation of products simply because the latter information is more difficult to obtain. One can, for example, readily 3
determine the price of television set; it is more difficult to determine its performance charactericts under various conditions or its expected need for repairs.
This article contends that limitations of consumer information about quality have profound effects upon the market structure of consumer goods. In particular, monopoly power for a consumer good will be greater if consumers know about the quality of only a few brands of that good. (Raska and Nichols, 11:423-442) HOW CONSUMER BUY? 1. Need/Want/Desire is Recognized In the first step the consumer has determined that for some reason he/she is not satisfied (i.e., consumer's perceived actual condition) and wants to improve his/her situation (i.e., consumer's perceived desired condition). For instance, internal triggers, such as hunger or thirst, may tell the consumer that food or drink is needed. External factors can also trigger consumer's needs. Marketers are particularly good at this through advertising, in-store displays and even the intentional use of scent (e.g., perfume counters). 2. Search for Information Assuming consumers are motivated to satisfy his or her need, they will next undertake a search for information on possible solutions. The sources used to acquire this information may be as simple as remembering information from past experience (i.e., memory) or the consumer may expend considerable effort to locate information from outside sources (e.g., Internet search, talk with others, etc.). How much effort the consumer directs toward searching depends on such factors as: the importance of satisfying the need, familiarity with available solutions, and the amount of time available to search. 3. Evaluate Options Consumers' search efforts may result in a set of options from which a choice can be made. It should be noted that there may be two levels to this stage. At level one the consumer may create a set of possible solutions to their needs (i.e., product types) while at level two the 4
consumer may be evaluating particular products (i.e., brands) within each solution. For example, a consumer who needs to replace a television has multiple solutions to choose from such as plasma, LCD and CRT television. 4. Purchase In many cases the solution chosen by the consumer is the same as the product whose evaluation is the highest. However, this may change when it is actually time to make the purchase. The "intended" purchase may be altered at the time of purchase for many reasons such as: the product is out-of-stock, a competitor offers an incentive at the point-of-purchase (e.g., store salesperson mentions a competitor's offer), the customer lacks the necessary funds (e.g., credit card not working), or members of the consumer's reference group take a negative view of the purchase (e.g., friend is critical of purchase). 5. After-Purchase Evaluation Once the consumer has made the purchase they are faced with an evaluation of the decision. If the product performs below the consumer's expectation then he/she will re-evaluate satisfaction with the decision, which at its extreme may result in the consumer returning the product while in less extreme situations the consumer will retain the purchased item but may take a negative view of the product. Such evaluations are more likely to occur in cases of expensive or highly important purchases. To help ease the concerns consumers have with their purchase evaluation, marketers need to be receptive and even encourage consumer contact. Customer service centers and follow- up market research are useful tools in helping to address purchasers' concerns. This hypothesis (Minimard and Engel 8) suggested this theory (Batra, Kazmi 3-29) WHY CONSUMERS BUY? Customers make purchases in order to satisfy needs. Some of these needs are basic and must be filled by everyone on the planet (e.g., food, shelter) while others are not required for basic survival and vary depending on the person. It probably makes more sense to classify needs that are not a necessity as wants or desires. In fact, in many countries where the standard of 5
living is very high, a large portion of the population's income is spent on wants and desires rather than on basic needs. For example, in planning for a family vacation the mother may make the hotel reservations but others in the family may have input on the hotel choice. Similarly, a father may purchase snacks at the grocery store but his young child may be the one who selected it from the store shelf. So understanding consumer purchase behavior involves not only understanding how decisions are made but also understanding the dynamics that influence purchases. TYPES OF CONSUMER PURCHASE BEHAVIOR Consumers are faced with purchase decisions nearly every day. But not all decisions are treated the same. Some decisions are more complex than others and thus require more effort by the consumer. Other decisions are fairly routine and require little effort. In general, consumers face four types of purchase decisions: Minor New Purchase these purchases represent something new to a consumer but in the customer's mind is not a very important purchase in terms of need, money or other reason (e.g., status within a group). Minor Re-Purchase these are the most routine of all purchases and often the consumer returns to purchase the same product without giving much thought to other product options (i.e., consumer is brand loyalty). Major New Purchase these purchases are the most difficult of all purchases because the product being purchased is important to the consumer but the consumer has little or no previous experience making these decisions. The consumer' s lack of confidence in making this type of decision often (but not always) requires the consumer to engage in an extensive decision- making process.. Major Re-Purchase - these purchase decisions are also important to the consumer but the consumer feels confident in making these decisions since they have previous experience purchasing the product. 6
For marketers it is important to understand how consumers treat the purchase decisions they face. If a company is targeting customers who feel a purchase decision is difficult (i.e., Major New Purchase), their marketing strategy may vary greatly from a company targeting customers who view the purchase decision as routine. In fact, the same company may face both situations at the same time; for some the product is new, while other customers see the purchase as routine. The implication of buying behavior for marketers is that different buying situations require different marketing efforts (Blackwell 6-15; Batra 3-13) Consumer Buying Decision Process "Nothing is more difficult and therefore, more precious, than to be able to decide is quoted to be the words of Napoleon. This is amply true in the case of consumer too. It is for this reason that the marketers are bound to have a full knowledge of the consumer buying decision process. However it should be remembered that the actual act of purchasing is only one stage in the process and the process is initiated at the several stages prior to the actual purchase. Secondly even though we find that purchase is one of the final links in the chain of process, not all decision processes lead to purchase. The individual consumer may terminate the process during any stage. Finally not all consumer decisions always include all stages. Persons engaged in extensive decision making usually employ all stages of this decision process. Whereas those engaged in limited decisions making and routine response behaviour may omit some stages. The consumer decision process is composed of two parts, the process itself and the factors affecting the process. (Batra 371-489) ECONOMIC FACTOR AFFECT THE BUYER'S BEHAVIOUR 1.Disposal personal income : The economists made attempts to establish a relationship between income and spending. Disposal personal income represents potential purchasing power that a buyer has. The change in income has a direct relation on buying habits. 7
2.Size of family income : The size of family and size of family income affect the spending and saving patterns. Generally large family spend more and short family spend less, in comparison. 3. Income expectations : The expected income to receive in future has a direct relation with the buying behaviour. The expectation of higher or lower income has a direct effect on spending plans. 4.Propensity to consume and to save : This goes to the habit of spending or saving with the disposal income of buyers. If the buyers give importance to present needs, then they dispose of their income. And buyers spend less if they give importance to future needs. 5. Liquidity of Fund : The present buying plans are influenced greatly by liquidity of assets i.e., cash and assets readily convertible into cash, eg bonds, bank balances etc., 6. Consumer Credit : " Buy now and pay later" plays its role effectively in the rapid growth of markets for car, scooter, radio, furniture and the like. Economic model suggests behavioral hypothesis: Lower the price of the product, higher the sales. Lower the price of substitute products, lower the sales of this product Higher the real income, higher the sales of the product. Higher the promotional expenses, higher the sales.
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Internal influences of buyers Psychographics (lifestyle), Personality, motivation, knowledge, Attitudes, Beliefs, and Feelings. Demographics, Consumer behaviour concern with consumer need consumer actions in the direction of satisfing needs leads to his behaviour of every individuals depend on thinking process. EXTERNAL INFLUENCES OF BUYERS Culture, Sub-culture, Locality, Royalty, Ethnicity, Family, Social class, Reference groups, Lifestyle, and market mix factors. (Gronroos, pars. 5-13)
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1.4 SIGNIFICANCE OF THE STUDY One of the most important marketing tactics that an organization can use to get ahead is to know their potential customers better than anyone else what marketers call Buyer Behaviour. The study done on the above topic give us a general idea of how the customers rate the brand as such and how efficiently imbibing these the company can improve over the expectations. 1.5 SCOPE OF STUDY
The project will help in finding out what strategies to make in order to fulfill the needs and wants of the customers and create a competitive advantage in the retail market. 1.6 GENERAL OBJECTIVE To study the buyer behavior of the Bombay Dyeing products with respect to the different franchisees in Mumbai.
Specific objectives:
The pre-purchase pattern Purchase factors Post-purchase evaluation RESEARCH DESIGN Descriptive Design: A descriptive research design is adopted for the study. A research design is plan of action or blue print for the collection and analysis of data. Descriptive research design is 10
concerned with the detail description of certain functional variables and characte ristics of a problem situation The major purposes for which descriptive research designs are commonly used include the following: To disclose in detail the characteristic of target group. To assess the proportionate behavior of the respondents within their identical or homogeneous groups. 1.7.1 NATURE AND POPULATION Nature of the study undertaken is descriptive and the population which has been taken under are the potential customers visiting the 12 franchisee outlets of Bombay Dyeing across Mumbai 1.7.2 SAMPLE AND SAMPLE SIZE Unit of Study are the consumers in the franchisee stores of around 180 in number from the observed stores 1.7.3 DATA SOURCE AND METHOD OF COLLECTION: Primary data: The investigator himself collects primary data for the first time thus it is orginal in character. The collection of primary data is expense and time consuming. 11
In this project, primary data is collected through questionnaire by observing the buyers in the Bombay Dyeing franchise stores, Mumbai. Secondary Data: Secondary data was collected by studying annual report of the company and other competitors. The websites of competitors were also studied for this purpose & data was gathered. 1.7.4 DATA ANALYSIS AND INTERPRETATION Various MS Excel tools were used for data analysis. These included pie charts, bar graphs & line graphs. These were used so as to represent the facts and figures in an easily understandable manner. 1.8 LIMITATIONS OF THE STUDY The study was confined only to Mumbai Area. Time period of the study (60 days). Data was collected from a small sample size, so it cannot be generalized for entire country. Data analysis was restricted to the use of MS Excel.
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CHAPTER II INDUSTRY, COMPANY, PRODUCT PROFILE 13
INDUSTRY PROFILE
OVERVIEW OF INDIAN TEXTILE INDUSTRY
1.1 Background
Indian textile industry is one of the leading textile industries in the world. Though was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up economy gave the much- needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world.
India textile industry largely depends upon the textile manufacturing and export. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry of India also contributes nearly 14% of the total production of the country. It also contributes around 3% to the GDP of the country. India textile industry is also the largest in terms of employment generation. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India textile industry currently generates employment to more than 35 million people.
Indian textile industry can be divided into several segments, some of which can be listed as below: Cotton textiles Silk textiles Woolen textiles Readymade textiles Hand-crafted textiles Jute and coir
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1.2. Current Scenario
The Indian textile industry contributes about 14 per cent to industrial production, 4% to the countrys gross domestic product and 17% to the countrys export earnings. The industry provides direct employment to over 35 million people and is the second largest provider of employment after agriculture.
Fabric production rose to 60996 million sq meters in FY 2011 from 52,665 million sq meters in FY 2007
Production of raw cotton grew to 32.5 million bales in FY11 from 28 million bales in FY07, while production of man-made fiber rose to 1281 million kgs in FY11 from 1139 million kgs in FY07. Production of yarn grew to 6233 million kgs in FY11 from 5183 million kgs in FY07.
India has the potential to increase its textile and apparel share in the world trade from the current level of 4.5 % to 8% and reach US$ 80 billion by 2020. Exports of textile grew to USD26.8 billion in FY10 from USD 17.6 billion in FY06. Indias textile trade is dominated by exports with a CAGR of 6.3% during the same period.
Technical Textile Segment
Technical textiles are an important part of the textile industry. The working group for the 11 t h
five year plan has estimated the market size of technical textiles to increase from US$ 5.29 billion in 2006-07 to US$10.6 billion in 2011-12, without any regulatory framework and to US$ 15.16 billion with regulatory framework. The scheme for growth and development of technical textiles aims to promote indigenous manufacture of technical textile to leverage global opportunities and cater to the domestic demand.
Further, the government is set to launch US$ 44.21 million mission for promotion of technical textiles, while the finance Ministry has cleared setting up of four new research 15
centers for the industry, which include products like mosquito and fishing nets, shoe laces and medical gloves.
Technical textiles aim to promote indigenous manufacture of technical textile to leverage global opportunities and cater to the domestic demand.
Further, the government is set to launch US$ 44.21 million mission for promotion of technical textiles, while the finance ministry has cleared setting up of four new research centers for the industry, which include products like mosquito and fishing nets, shoe laces and medical gloves. . TABLE 1.1. MAJOR PLAYERS IN TEXTILE INDUSTRY
COMPANY BUSINESS AREAS Aravind Mills Spinning, weaving, processing & garment production (denims, shirting, khakis, Knitwear) Raymonds Ltd Worsted suiting, tailored clothing, denim, shirting, woolen outerwear Alok Industries Home textiles, woven & knitted apparel fabric, garments & polyester yarn Aditya Birla Nuvo Ltd. Madura garments Jayashree Textiles Indian Rayon Madura garments- lifestyle market (Louis Philippe, VanHeusen, Allen Solly, The Collective) Jayashree Textiles- Domestic linen & worsted yarn Indian Rayon- viscose filament yarn Century textiles Trend setter in cotton textiles, presence in yarn, denim, viscose filament rayon yarn. Welspun India Home textiles, bathrobes, terry towels. Bombay Dyeing Bed linen, towels, furnishing, fabric for suits, shirts, dresses and saris in cotton & polyester blends Source: majorplayers/textile division/google
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INDIAN TEXTILES INDUSTRY
1.3 Segment Analysis
Indias textile industry comprises mostly small- scale, non- integrated spinning, weaving, finishing, and apparel- making enterprises.
1.3.1 Spinning mills With an installed capacity of 40 million spindles, India accounts for about 22 per cent of the worlds spindle capacity. In 2005, Indias spinning sector consisted of about 1,161 small-scale independent firms and 1,566 larger scale independent units. Independent spinning mills account for about 75 per cent of capacity and 92 per cent of production. Corporate Catalyst India A report on Indian Textiles Industry
1.3.2 Knit/Weaving/Knitting Units Indias weaving and knitting sector is highly fragmented, small- scale, and labour- intensive. The woven fabric production industry can be divided into three sectors: powerloom, handloom and mill sector. In 2005 it consisted of about 3.9 million handlooms, 1.8 million power looms, and 0.1 million looms in the organised sector. The decentralised power loom sector accounts for 95 per cent of the total cloth production. The knitted fabric forms 18 per cent of the total fabric production.
1.3.3 Processing Units The processing industry is largely decentralised and marked by hand processing units and independent processing units. Composite mill sectors are very few falling into the organized category. Overall, about 2,300 processors are operating in India, including about 2,100 independent units and 200 units that are integrated with spinning, weaving or knitting units.
1.3.4 Garment Manufacturing Units Small-scale fabricators dominate garment manufacturing. Most garment manufacturing units fare reasonably well on the technology count. The bulk of apparel is produced by about 17
77,000 small-scale units classified as domestic manufacturers, manufacturer exporters, and fabricators (subcontractors). The fragmented structure of the industry provides the advantage of a large pool of skilled workers in different areas of textile manufacturing, and also gives scope for entry of organized integrated textile manufacturers. Small scale units in different sectors can also be leveraged as a supply base for sourcing materials at low cost. Apart from these advantages, the industry has also been experiencing consistent growth across different sectors, making it one of the key potential sectors in India.
1.4 Production and Exports
India has been experiencing strong performance in the textile industry, across different segments of the value chain, from raw materials to garments. Domestic production has been growing, as well as exports.
1.4.1 Production of Fabrics Production of Fabrics increased by 9.25 per cent in 2005-06 and upto November 2006, by 8.20 per cent over the corresponding period of the previous year.
1.4.2 Textile Exports The Indian textile industry contributes substantially to Indias export earnings. The export basket consists of wide range of items containing cotton yarn and fabrics, man- made yarn and fabrics, wool and silk fabrics, made-ups and variety of garments. Indias textile products, including handlooms and handicrafts, are exported to more than hundred countries. However, USA, EU Member States, Canada, U.A.E., Japan, Saudi Arabia, Republic of Korea, Bangladesh, Turkey, etc are the major importers of our textile goods. During the year 2005-06, the share of textiles exports including handicrafts, jute, and coir in Indias total exports was 16.63%. Indias textiles exports have registered strong growth in the post quota period. Textiles exports grew from US$ 14.03 billion in 2004-05 to US$ 17.08 billion in 2005-06, recording a growth of 21.8 per cent. Therefore, the Government has fixed a higher target of US$ 19.73 billion for the year 2006-07.
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2. GOVERNMENT REGULATIONS AND SUPPORT
2.1 Government Initiatives
The textile industry, being one of the most significant sectors in the Indian economy, has been a key focus area for the Government of India. A number of policies have been put in place to make the industry more competitive.
2.1.1 The Technology Upgradation Fund Scheme (TUFS) Recognising that technology is the key to being competitive in the global market, the Government of India established the Technology Upgradation Fund Scheme (TUFS) to enable firms to access low- interest loans for technology upgradation. Under this scheme, the Government reimburses 5 per cent of the interest rates charged by the banks and financial institutions, thereby ensuring credit availability for upgradation of the technology at global rates. Under the TUF Scheme, launched on April 1, 1999, loans amounting to Rs. 149 billion have been disbursed to 6,739 applicants. In consonance with the industry, the TUF Scheme has been continued during the Eleventh Plan (2007-2012). Allocation for TUF has been raised from Rs.5.35 billion in 2006-07, to Rs.9.11 billion in 2007-08. Handlooms will now be covered under the TUF scheme.
2.1.2 Integrated Textile Parks Scheme Manufacturing is a thrust area for the government, as Indian industry and the government see foreign companies more as partners in building domestic manufacturing capabilities rather than a threat to Indian businesses. Following this through, the Central Government as well as various States has executed Schemes such as, Schemes for Integrated Textile and Apparel Parks. Under the Scheme for Integrated Textiles Parks (SITP), 26 parks have been approved so far out of 30 sanctioned. The Budget provision for these parks has been increased from Rs.1.89 billion in 2006-07 to Rs.4.25 billion in 2007-08.
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2.1.3 Scheme for Handlooms For Handlooms a cluster approach for the development of the handloom sector was introduced in 2005-06 and 120 clusters were selected. 273 new yarn depots are opened up till now and the Handloom Mark was launched. The Government proposes to take up additional 100-150 clusters in 2007-08.
2.1.4 Health Insurance Scheme The Health Insurance Scheme has so far covered 3,00,000 weavers and will be extended to more weavers. The scheme will also be enlarged to include ancillary workers. The Corporate Catalyst India A report on Indian Textiles Industry Government proposed to enhance the allocation for the sector from Rs.2.41 billion in 2006- 07 to Rs.3.21 billion next year.
2.2 Quality Improvement The Textile Commission, under the Ministry of Textiles, facilitates firms in the industry to improve their quality levels and also get recognised quality certifications. Out of 250 textile companies that have been taken up by the Commission, 136 are certified ISO 9001. The other two certifications that have been targeted by the Textile Commission are ISO 14000 Environmental Management Standards and SA 8000 Code of Conduct Management Standards.
2.3 Foreign Direct Investment (FDI) Policy 100% FDI is allowed in the textile sector under the automatic route. FDI in sectors to the extent permitted under automatic route does not require any prior approval either by the Government of India or Reserve Bank of India (RBI). The investors are only required to notify the Regional Office concerned of RBI within 30 days of receipt of in word remittance. Ministry of Textiles has set up FDI Cell to attract FDI in the textile sector in the country. The FDI cell will operate with the following objectives: To provide assistance and advisory support (including liaison with other organisations and State Governments) Assist foreign companies in finding out joint venture partners 20
To sort out operational problems Maintenance and monitoring of data pertaining to domestic textile production and foreign investment
3. MAJOR PLAYERS
3.1 Arvind Mills Ltd. Arvind Mills Limited is the flagship company of the US$550 million Lalbhai Group. It is engaged in the production of the widest range of textiles. It is the worlds largest exporter of denim and Asias largest denim producer. Ranking among the top denim manufactures of the world, 120 million metres of denim roll out every year from Arvind plants and is stitched into leading international denim brands in more than 70 countries. The company is also in the garment and mens shirting business under the brand names of Newport, Flying Machines, Lee, Arrow.
3.2 Raymond Ltd. Incorporated in 1925, the Raymond Group is a US$ 300 million plus conglomerate having businesses in textiles, readymade garments, engineering files & tools, prophylactics and toiletries. The group is the leader in textiles, apparel, files and tools in India and enjoys a pronounced position in the international market. Raymond Textile produces pure wool, wool blended and polyester viscose fabrics and blankets along with furnishing fabrics. The denim division produces high quality ring denims. Raymond believes in excellence, quality and leadership.
3.3 Alok Industries Established in 1986 as a private limited company, Alok Textiles began as fabric traders and suppliers to the garment industry. Beginning with texturising of yarn, the company steadily expanded into weaving, knitting, processing, home textiles and readymade garments. In 1993, it became a public limited company. In less than two decades, it has grown to become a diversified manufacturer of world-class apparel fabrics selling directly to garment manufacturers and exporters. 21
3.4 Aditya Birla Nuvo Ltd. Aditya Birla Nuvo Ltd. is Aditya Birla groups most diversified conglomerate. Earlier it was known as Indian Rayon Ltd. (IRIL), it was rechristened as Aditya Birla Nuvo in 2005. It is Corporate Catalyst India A report on Indian Textiles Industry the second largest producer of viscose filament yarn in India. It is also the largest branded apparel company in India. It is a diversified company and operates a wide range of businesses. Its focus areas are viscose filament yarn, carbon black, branded apparels, textiles and insulators. It has also made forays into insurance, software and Business Process Outsourcing (BPO).
3.5 Century Textiles Century Textiles & Industries was incorporated in 1897. Till 1951, it had only one industrial unitCotton Textile Mills. It has Asias largest composite 100 per cent cotton textile mill. Century has diversified into other businesses as well. At present, Century is not only the trend setter in cotton textiles, but also a presence in yarn, denim, viscose filament rayon yarn, tyre cords, caustic soda, sulfuric acid, salt, cement and pulp & paper.
3.6 Welspun India Beginning with a small texturising unit in 1985, the group has significantly expanded and diversified its business. It now has interests in terry towels, LSAW pipes, pipe coat ing, cotton yarns, PFY, bathrobes and buttons. The group has ties with 12 out of top 20 retailers in the world namely Wal-Mart, K-Mart, JC Penny and Target to name a few. LSAW pipe clientele includes names such as Shell, Gazprom, ExxonMobil, etc.
3.7 Himatsingka Seide Ltd. The company commenced its operations on 15 February 1985. It manufactures natural silk fabrics under a 100 per cent export oriented unit scheme. The company undertook to set up a composite silk mill with an annual capacity of 750,000 square meters for producing natural silk fabrics. It produces a wide range of regular and fancy 100 per cent silk and silk blended yarns. Its weaving division - Himatsingka Seide, offers yarn dyed decorative, bridal and fashion fabrics. The entire operation of winding, doubling, twisting, dyeing, weaving and 22
finishing is integrated under one roof.
3.8 Bombay Dyeing Bombay Dyeing is one of Indias largest producers of textiles. The company is one of the largest and oldest textile companies in the country. It manufactures cotton and blended textiles. Product mix comprises suitings, shirtings, sarees, towels and bed linen. The company was formed on 23 August 1879 by Nowrosjee Wadia, a dye works near Mahim. This was the mill, which first started dyeing of yarn in India. Bombay Dyeing Mfg. Co. Ltd. was set up in 1895. Nowrosjee Wadia & Sons become the managing agents in 1898.
4. OPPORTUNITIES AND CHALLENGES
4.1 Opportunities Indias strong performance and growth in the textiles sector is aided by several key advantages that the country enjoys, in terms of easy availability of labour and material, buoyant and large market demand, presence of supporting industries and supporting policy initiatives from the government. These advantages can be exhibited within the framework given in the figure below, and are further discussed in the subsequent sections.
4.2 Challenges The Indian textile industry faces a host of constraints: Fragmented structure with the dominance of the small scale sector High power costs Rising interest rates and transaction costs Unfriendly labour laws Logistical disadvantages in terms of shipping costs and time pose serious threats to its growth Foreign investments are not coming in as the overall factors influencing the industry are not investment friendly
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COMPANY PROFILE
ABOUT BOMBAY DYEING Bombay Dyeing is Flagship Company of the Nusli Wadia Group that was established in 1879. It was started by Nowrosjee Wadia, who began the operations on small scale with cotton yarn spun dip dyed in three colours turkey red, green and orange and later was laid out in sun to dry. Presently it has a distribution chain of over 600 exclusive stores across the country. It is engaged into manufacturing textile and chemicals. Bombay Dyeing is countrys largest exporter of textiles. During January 2009, Bombay Dyeing & Manufacturing Company had acquired 10,000 shares of Rs 10 each of White Horse Real Estate Company at face value and consequently White Horse Real Estate Company had become a 100% subsidiary of the company. The Indian textile industry is one of the oldest and prominent players in global textile industry. Currently it is a $52 billion industry and is anticipated to grow to $115 billion by 2012. India accounts for 25% of the world yarn exports and it also accounts for 12% of the worlds production of textile fibres and yarn. Companies like Bombay Dyeing has huge potential for growth. Bombay Dyeing is one of Indias largest producers of textiles. The daily production at Bombay Dyeing exceeds 300,000 meters of fabrics and it has a distribution chain consisting of 600 plus exclusive shops spread all over the country. Bombay Dyeing, exports to advanced countries such as USA, countries in European Union, Australia and New Zealand, and its sales turnover is more or less equally divided between National and International markets. Apart from the textiles, Bombay Dyeing also deals in the chemicals. Bombay Dyeing is part of the Wadia Group, which is more than 250 years old. Wadia Group initially ventured into the area of ship building, and more than 355 ships were designed and built by the Group. As the industrialization grew in the 19th century, so did the trading, and 24
new opportunities for business. In the late 19th century, Bombay was one of the major cotton ports of the world. Nowrosjee Wadia sensed an opportunity in India's mushrooming textile industry and on August 23, 1879, Bombay Dyeing was founded in a humble redbrick shed. Since then, Bombay Dyeing has grown into one of India's largest producer of text iles. The company also diversified and pioneered the manufacturing of various chemicals.
Business activities Textiles It manufactures wide range of cotton suitings, polyester cotton suitings, shoe lining and duck fabrics, satin furnishings, yarn dyed fabrics, towels, table tops and napkins, satin bed sets, etc. Textile manufacturing is main activity of Bombay Dyeing with 5 manufacturing facilities confirming to international standards. Its daily production of fabrics is 300000 meters. Nearly 50% of Bombay Dyeing's production is exported to USA, Canada, UK, Germany, Netherlands, Italy, France, Poland, Czechoslovakia, New Zealand, Switzerland, and many more countries. Its spinning and winding facilities has an installed capacity of 135,336 ring spindles. Chemicals Bombay Dyeing is the largest manufacturer of Dimethyl Terephthalate (DMT) in India.It has a capacity to manufacture 165000 tonnes per annum (TPA). DMT is raw material for manufacturing polyester fibre, film, filament & yarn and engineering plast ics. Milestones Bombay Dyeing has received ISO-9002-1994 certification for 'Quality Management System'. It has also received ISO-14001-1996, certification for 'Environmental Management System'. It has been honoured with BVQI's 'SAFETYCERT' certification for 'Occupational Health & Safety Management System (OHSMS). 25
The company has also won SRTEPC and TEXPROCIL Gold Trophies for its outstanding export performance for poly cotton blended fabrics and made-ups. Award & Recognition - Super Brand 2006-2007 in recognition of its commitment to constantly providing value to the customer. - Images Fashion Award 2006 as Best Brand in the Home Fashion Category. - Home and Lifestyle - Retailer of the year 2005 award, instituted by ICICI bank Payment Solutions and KSA Technopak.
COMPANIES OF WADIA GROUP:
The Bombay Dyeing Mfg. Co. Ltd: Bombay Dyeing & Manufacturing Co. Ltd is India's leading producer of textiles. Go Air: go Air is a low-cost carrier promoted by Bombay Dyeing Group. Bombay Dyeing - DMT: Bombay Dyeing - DMT is the largest manufacturer of Dimethyl Terephthalate (DMT) in India. DMT is a raw material for the manufacturer of Polyester fibre, film, filament & yarn and engineering plastics. National Peroxide Ltd.: The company is a pioneer and leader in India in peroxygen chemicals. Bombay Burmah Trading Corpn Ltd: The company is engaged in plantations and produces tea, coffee, cardamom, black pepper and rubber. Britannia Industries Ltd: It is the largest company in the Indian Food processing industry. Its product range includes Breads and Cakes. Wadia BSN India Ltd: The company was set up in 1994 through tie-up between the Wadias & Groupe Danone. It plans to introduce packaged foods from the Danone's international range. Formica India Division: The company produces high grade industrial laminates for the electronic, electrical and other industries. 26
B.R.T Ltd: The company produces textile machinery accessories. It is the market leader in ring, ring travellers, open end rotors and opening roller-spinning machinery accessories for cotton and synthetic yarns. BCL Springs Division: BCL Springs Division is the second largest producer of precision springs. It is a trusted brand in the automobile, consumer durable, electrical, textile & ammunition industries. Afcoset Balances Division: Market leader in laboratory weighing equipment in India. Afco Industrial and Chemicals Ltd: Product range includes battery chargers, DC systems, Inverters & converters, static voltage regulators & heat sinks. Dental Products of India: Largest manufacturer of consumable dental products. Medical Microtechnology Ltd: Manufacturer of high precision titanium ophtalmic micro surgical instruments. Instruments Orthopaedics: Market Leader in Orthopaedic implants, instruments and equipment in India. Its range includes various implants for the hip, knees, and several types of screws, nails, plates and prostheses. Gherzi Eastern Limited: Gherzi Eastern Limited is a joint venture public limited company between Bombay Dyeing Group and Gherzi Organisation, Zur ich (Switzerland). The company was formed to provide consultancy services in the field of textile industry. Today, the company has diversified its services in the field of Transportation / Highways, Bridges / Flyovers, Environment, Townships, Housing, Urban development, Water and Waste Water Engineering, Tourism, Hotels, Industrial projects and other infrastructural projects.
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PRODUCT PROFILE
1. BATH LINENS
TOWELS
a) TULIP TOWEL The sub-brand has functional towels with good durability. It has withstood the test of time and is the most recognized sub-brand in the market. The color pallet has wide spectrum of colors from light pink to dark blue, and maroon. These are very popular for gifting by pharmaceutical companies and referred as 'Standard towels' in reputed public tenders.
b) SANTINO TOWEL These vibrant towels have specially combed yarn pile to reduce lint/ fluff. Available in oranges and purples, The Santino is young and lively.
c) FLORA TOWEL It's a value for money product with mass appeal. The colors are soothing hues of pinks, browns, blues and greens
d) SUPER ULTRX TWIST TOWEL Super Ultrx towels are extraordinary, plush and absorbent due to unique spinning process. The unique Zero Twist process allows each pile of the towel to open up and take in air and water. Giving the towel greater absorbency and luxurious feel.
LUXUARY BRANDS TOWELS: e) SILK TOWEL Experience the sensuousness of Silk, blended with anti-bacterial property of bamboo and functionality of cotton. This combination imparts a luxurious sheen to the towel and is soft on the skin. Experience its gentle caress as it transports you from shower to lush greenery. 28
f) SOYA TOWEL Bombay Dyeing presents eco- friendly towels made of Soya fiber. Soya is extremely versatile and known for its health benefits. The fiber is lustrous and soft to touch. These Soya cottons are a part of our Nature's Bouquet range of supreme premium, eco- friendly towels. g) LINEN TOWEL Exquisite linen towels, part of Nature's Bouquet range of super premium range of Bombay Dyeing, are made from fine linen blended with cotton and re- generated cellulose. Lushness, durability and absorbency are the hallmarks of this natural towel. The finest in Bathroom Luxury h) BAMBOO TOWEL Combining nature with technology, Bamboo is blended with cotton and the Zero Twist Spinning technology. Making it highly absorbent and ultra-soft. This lustrous and odour free towel come in soothing colors and design. 2. BED SHEETS A. URBAN LIVING An elegant collection of Urban Living bed linens which glorifies the interior dcor with its extraordinary charm. A unique collection from Bombay Dyeing, the bed linens are soft to touch and attractive to look at. Inspired by the urban lifestyles, these bed linens infuse haute couture with the classic essence of a luxurious home. B. COUNTRY ROMANCE An elegant collection of Urban Living bed linens which glorifies the interior dcor with its extraordinary charm. A unique collection from Bombay Dyeing, the bed linens are soft to touch and attractive to look at. Inspired by the urban lifestyles, these bed linens infuse haute couture with the classic essence of a luxurious home. 29
C. REVEL These trendy bed sheets in bold and vivid colors, with youthful spirit of fun adventure and dynamism add color to life. D. BLUSH Coming from the finest gardens, Bombay Dyeing brings to you the Blush bed sheet collection. With vines and flowers, we intend to introduce the warmth of nature to your bed room. E. GLOW Transcending look from day to night, these bed-sheets carry a magical mystery of elements that ' glow in the dark' Holding sure promises of fun! Targeted towards lids, this range has bed sheets containing dolphins, candles, stars etc. F. FLORAL FANTASY The perfect combination of nature and art. Detailed to perfection, this collection is specially crafted keeping in mind the requirements of the masses. 3. BED SPREADS A. WENDELL COLLECTION B. SABYSACHI COLLECTION C. BEAUCALE D. BLOOMS E. ENIGMA F. FRESHIA 30
4. BED COVERS A. HI- TIDE B. BED ACCESSORIES C. AUTUMN DESIRES D. SORBET E. FLORA
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CHAPTER III DATA ANALYSIS & INTERPRETATION 32
PRE- PURCHASE Table No.3.1 Showing the gender of the observed customers GENDER FREQUENCY PERCENTAGE MALE 68 38 FEMALE 112 62 TOTAL 180 100
Source: primary Figure showing the gender of the observed customers Figure No. 3.1 INTEPRETATION: Around 62 percent of the observed customers who made their purchase in the stores during the study period are females around the age group of middle age of 30-40 (Fig.no.3.7)as these decisions are being preferred and made by the female members of the family than male members. 38 percent of the total visited along with their counter parts to help in the purchase decision 33
Table No. 3.2 Showing how often the observed customers come for the purchase in the store RESPONSES FREQUENCY PERCENTAGE Once a month 44 24 Every fortnight 21 12 Weekly 0 0 Occasionally 115 64 TOTAL 180 100
Source: primary Figure showing how often the observed customers come for the purchase in the store, Figure 3.2 INTEPRETATION: Around 64 percent of the observed customers come occasionally to purchase from the stores and 24 percent make their purchase once in a month. Mainly occasional purchase are the old aged people and young people of the age group 35- 40 make their purchase every fortnight. Though the purchase are made occasionally the customers make it a point to take bulk quantity according to their necessity. 34
Table No. 3.3 Showing what factors exclusively make the observed customers purchase from the store. FACTORS FREQUENCY PERCENTAGE Quality 72 40 Cleanliness 10 6 Relationship 15 8 Selection 31 17 Print designs 52 29 TOTAL 180 100
Source: primary Figure showing what factors exclusively make the observed customers purchase from the store, Figure 3.3 INTEPRETATION: As the company Bombay Dyeing is known for its quality over the years from its origin. Even the observed customers under the study conducted also agreed to the same as the reason to make their purchase from the outlets. Followed by the print designs and the selections available in each of these stores make it a point for the customers very little options to switch from the brand. 35
Table No. 3.4 Showing whether the communication line is satisfactory in the stores that the customers find no complexity in approaching the stores. RESPONSES FREQUENCY PERCENTAGE To a great extend 97 54 Some what 57 32 Very little 21 11 Not at all 5 3 TOTAL 180 100
Source: primary Figure showing whether the communication line is satisfactory in the stores that the customers find no complexity in approaching the stores, Figure 3.4 INTEPRETATION: 54 percent of the customers from the outlets of the company agreed that the customer salesperson interaction is satisfactory that they find it easy for the purchase and also for the improvements for the salesperson. Comparing with the other options only 3 percent disagreed that they find it difficult to go along with them as their preference is more of self service 36
Table No. 3.5 Showing whether the customers prefer the interactive product experience which is being offered in the stores relating to the different purchase and its features RESPONSES FREQUENCY PERCENTAGE To a great extend 88 49 Some what 69 38 Very little 19 11 Not at all 4 2 TOTAL 180 100
Source: primary Figure showing whether the customers prefer the interactive purchase experience which is being offered in the stores relating to the different products and its features, Figure 3.5 INTEPRETATION: The figure shows a declining trend to the options being provided to the customers. Around 49 percent of the customers showed a positive response to the interactive purchase experience offered to them in the stores relating to the products and services in the stores as they say that the sales person knows more about the stores and the products that they have to mention the attributes and rest of the job will be made ease by them. While 2 percent claim they prefer the self- service facility 37
Table No. 3.6 Showing whether the franchisees been able to meet per the requirements of the customers RESPONSES FREQUENCY PERCENTAGE To a great extend 90 50 Some what 53 29 Very little 32 18 Not at all 5 3 TOTAL 180 100
Source: primary Figure showing whether the franchisees been able to meet per the requirements of the customers, Figure 3.6 INTEPRETATION: The combined answers of the majority of the customer contribute to the 50 percent which shows their satisfaction towards the outlets of the company. The feedbacks being offered, the improvement in the services and the customer- company relation is also maintained by providing necessary stocks to each outlets that never one customer goes back empty handed. A very minor portion disagreed to the question being asked to their personal reasons. 38
PURCHASE Table No. 3.7 Showing the age group of the purchaser. CATEGORIES FREQUENCY PERCENTAGE 18- 25 0 0 26- 45 106 59 45 & ABOVE 74 41 TOTAL 180 100
Source: primary Figure showing the age group of the purchaser, Figure 3.7 INTEPRETATION: Most of the purchase being observed from the different outlets of Bombay Dyeing showrooms across Bombay shows that around 59 percent of the revenue contributes to these outlets are adults who fall under the age group of 30- 40 and the rest 41 percent are the senior citizens who falls under the age group of 40 and above as the company offers services which are to decided by the elder members of the family so no teenagers where to seen making purchase from these outlets. 39
Table No. 3.8 Showing the fast moving bed sheets of Bombay Dyeing during the observed study period BRANDS FREQUENCY PERCENTAGE FLORA 25 15 ZINNIA 11 6 AMBROSIA 17 10 OTHERS (42 brands) 117 69 TOTAL 170 100
Source: primary Figure showing the fast moving bed sheets of Bombay Dyeing during the observed study period, Figure 3.8 INTEPRETATION: Flora, Ambrosia and Zinnia topped in the customer preference in the bed sheets category of the company from these observed outlets as per the floral designs and the color variance available in these bed sheets than the other 42 brands of the company. And the additional feature of these bedsheets are that it falls under the general category of pricing that the customers dont fell they are heavily priced and still they get the quality products rated economically with different patterns 40
Table No. 3.9 Showing the fast moving bed linens of Bombay Dyeing during the observed study period BRANDS FREQUENCY PERCENTAGE FLORA 35 10 SANTINO 62 18 TULIP 78 22 OTHERS (32 brands) 175 50 TOTAL 350 100
Source: primary Figure showing the fast moving bed linens of Bombay Dyeing during the observed study period, Figure 3.9 INTEPRETATION: Tulip, Santino & Flora has been distinctly been separated from the other 32 brands by being the most moved bath linens of the company as they are economical and the quality products with different color variants and the patterns available. These products are the most moving so they never go out of stock for each outlets. Though the price is economical the quality is not being compromised in these products as of the company policy. The other 32 bath linens contribute a total of 50 percent of the total. 41
Table No. 3.10 Showing classification of the bills issued to the customers on the basis of amounts received during 12/9/2012 to 28/9/2012. PRICE PER BILL FREQUENCY PERCENTAGE UPTO 1000 56 31 1000- 1500 35 20 1500- 2000 32 18 2000- 3000 22 12 3000 & ABOVE 35 19 TOTAL 180 100
Source: primary Figure showing classification of the bills issued to the customers on the basis of amounts received during 12/9/2012 to 28/9/2012., Figure 3.10
INTEPRETATION: 31 percent of the total bills falls under the category head up to 1000 rupees on the basis of the amounts received during the study period. As most of the moving bed and bath items falls under the price category till 1000 rupees. Followed by the category of 1000- 1500 the customers money spent on the company products is about 20 percent. As most of the purchase as per stated above happens occasionally the bill rates during that period is more compared to the daily basis in these observed outlets. This amount also depends on the nearness of the outlets to the customer and their convenience. 42
POST PURCHASE Table No. 3.11 Showing why the customers stick on to the brand Bombay Dyeing for a long period of time. FACTORS FREQUENCY PERCENTAGE The quality 86 48 The designs 54 30 The customization 23 13 The customer relation 15 8 Others 2 1 TOTAL 180 100
Source: primary
Figure showing why the customers stick on to the brand Bombay Dyeing for a long period of time, Figure 3.11 INTEPRETATION: Quality factor is driving factor which Bombay Dyeing has which makes it distinct from the other brands and even the customers agreed on to it undoubtedly. Since its origin the company is renowned for the quality not being compromised in their products which being the differentiating feature in the company products. Followed by the designs, customization options being provided by the company for the customer are well enjoyed. And also the customer relation being maintained in each outlet with a feedback book and the improvements made accordingly all attracts the customer to the store 43
Table No. 3.12 Showing how the customers rate the experiential marketing and the merchandise technique adopted by the company RESPONSES FREQUENCY PERCENTAGE To a great extend 83 46 Some what 64 36 Very little 23 13 Not at all 10 5 TOTAL 180 100
Source: primary
Figure showing how the customers rate the experiential marketing and the merchandise technique adopted by the company, Figure 3.12
INTEPRETATION: The merchandise techniques and the experiential marketing offered by the different outlets is being rated a very high percentage since the brand itself calls for so. The sales person in each oulets is trained specifically for the purpose guided by store manager/ owner in each store. The sales person knowing more about each item can give an insightful opinions about the brands and the do & donts of the products also. Though each details are being set behind every products by the company, sales person assurance do matters for the customer in selecting the product from the outlet 44
Table No. 3.13 Showing what according to the customers make the company products different so that they make their purchase there often FACTORS FREQUENCY PERCENTAGE Product availability 45 24 Different designs 32 18 Price ranges 32 18 Competitor advantages 19 11 Offer & Discounts 29 16 Relationships 23 13 TOTAL 180 100
Source: primary
Figure showing what according to the customers make the company products different so that they make their purchase there often, Figure 3.13 INTEPRETATION: Bombay dyeing has been in the Indian market for a long period of time and they have been topped in the product quality aspect and the product availability even in todays scenario the company tries to keep its values and promises to the customer that the company can have the priority in comparison with its competitors. The price ranges being given by the company without being compromising with the quality and the offers and discounts provided according to the seasons and the relationship maintained with the customers all protrudes the feature that the company is being preferred more and more 45
CHAPTER IV SUMMARY OF FINDINGS, SUGGESTIONS 46
FINDINGS, SUGGESTIONS & CONCLUSION FINDINGS Over the last few years the company has shown a growth in its brand value and the global exposure it has in the market by sticking on to the standards and the quality assurance to the customers which has been promised by them. Under the study period the findings made where the fast moving brands in the bed brands were: Flora Ambrosia Zinnia This falls within the price range of upto 1000. The designs, patterns and the color range available within the brands make it exquisite to the buyers to stick on to the brand and also it falls under the decent budgeted price range. In the bath items the fast moving brands were Santino Alpine Flora Falling under the price range of upto 200. The variant and the vibrant colors available within a reasonable range make it more demanding among the customers. The customers of the age group 45 & above visiting the stores are mainly due to the availability of wide range of designs in the promised quality and the standards which make the brand premium and distinguishable from its competitors. The availability of the requirements suggested by the customers on time makes each person visiting the store a potential customer to the company. Most of the purchases are made by the age group 30-45 from the observed customers The customer sticks onto the brands as of its high quality because of which the company holds a high brand value 47
The experiential services being offered by the stores proves it helpful for the customers to make their purchase easy and simple The communication line provided by the stores are being well satisfactory since the customers get a great help in selecting the required The price ranges are being shown at a high rate by the brand which the customers feel hard to cope with The customers have at times been faced with the improper behavior and the unavailability of stocks in the stores. The feedback book being provided to the customers helps the customers to put in their take on the service as well as the improvement of the store
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SUGGESTIONS On visiting the 12 different franchisees of Bombay Dyeing the following suggestions are being put forward: The packaging can be more convenient and more attracting as on comparing with the Chinese brand products in the market which is being designed as carry bag model making it easy for the customers to carry it around. New innovative products in the market are being faced as a threat to the company. As the competitor company Mona Lisa, a local brand has brought out a innovative product which have the 3D effect that is now a trending product in the market. As the company products are being rated as the high quality products by the customers the company should take advantage of this by bringing out more variant designs and color pattern than by the competitors, PORTICO and DDECOR. The introduction of variants of products in much more reducible price range with no compromise in quality can improve the customer intake into the store More advertisements and more involvement in the market can make a boom in the market comparing to now Introduction of more and more offers rather than reluctant into the festive seasons can attract more customers Taking into account what the customers want from the dealers and coming out a general outcome with a satisfactory product can raise the margin of the company As the company is known for the quality and the tradition associated the company can seize the opportunity of raising the price as the customer can associate with the quality but with the variety included The relationship with the customer needs to be improved as there are complaints regarding the services being provided by the sales person is not up to the mark which in turn can affect the sales of the outlet.
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CONCLUSION
This study, on the buyer behavior of the different products of Bombay dyeing. It describes in detail about the different products of both bed and bath linens and everything related to the subject.
Bombay Dyeing Manufacturing & Pvt Ltd co., Mumbai is one of the strong contributors to the whole of the industries economy as a whole. Raising the company standards into a whole new level by introducing and innovating the product line, it is trying to be the market leader on a global scenario and also in the Indian scenario. Despite the harnesses being faced by the industry with the governmental restrictions on the sale and promotion the effort being put by the technological side of the company should be appreciated. And the effective try on the introduction of whole new patterns, designs according to the general needs and to the current trends and being ahead of the competitors with these factors are worth the effort of the company approved by the customers whole over India. The study provided useful insights into the company and its functioning. Analyzing the buyer behavior of the companies products and the factors which are affecting for product selling and the getting an intact view on the most moving brands in both bed and bath collections where really helpful to the study and also to the understanding of the company even more better. With the innovative and the usage of effective technologies the company will be effective in achieving its future goals thus contributing to the countrys economy as a whole.
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BIBLIOGRAPHY Batra Satish and Kazmi S H H. Consumer Behavior. New Delhi: Excel Books, 2008. Print Blackwell Roger, Miniard Paul and Engel James. Consumer Behavior. New Delhi: Vikas Publishing House, 2002. Print Bombay Dyeing, www.bombaydyeing.com. Mumbai: Bombay Dyeing. Chairman. Annual Report. The Bombay Dyeing and Manufacturing Company Ltd. Mumbai, 2011-2012. Print. Google. Product profile, google. New Jersy : Google. 2011. Web. Gronroos, Christian. Relationship approach to marketing in service contexts: The marketing and organizational behavior interface. ScienceDirect.com. Elsevier Inc. 31 Feb 2010. Web. 25 Sept 2012 Prasad, L.M. Principles of Management. New Delhi: S.Chand & Sons, 2008. Print Raska David and Nichols Bridget. The way consumers behave and why?.International research review on consumer behavior 28.3(2012):432-442. Print Scribed. Competitor Analysis, Scribed. New Delhi: Scribed.com, 2012. Web U. Archana: Consumer Buying Behavior.Articlesbase. 29 June. 2009. Web. 20 Sept. 2012
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ANNEXURE
52
ANNEXURE Respected Madam/Sir, As a part of my project I would like to gather some information from you which will help me in an in depth study of project. The information provided by you will be kept confidential and will be used for the academic purpose only. I would be obliged if you co-operate with me in filling the questionnaire. 1. Name of the franchisee
2. Male/ female
PRE -PURCHASE:
1. How often do you come for the purchase in the Bombay Dyeing stores?
Once a month
Every fortnight
Weekly
Occasionally
2. What factors exclusively make you to purchase in Bombay Dyeing stores
Quality
Cleanliness
Relationship
Selections
Print designs
53
3. Is the communication line satisfactory in the stores that you find no complexity in approaching?
To a great extend
Some what
Very little
Not at all
4. Do you prefer the interactive product experience which is being offered in the stores relating to the different products and its features?
To a great extend
Some what
Very little
Not at all
5. Is the franchisees been able to meet the requirements as per their say?
To a great extend
Some what
Very little
Not at all
PURCHASE:
6. Purchaser is
Teenagers (13 - 19)
Adults (20 - 45)
Senior Citizens (45 & above)
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7. Items bought: Bed sheet
(1) Single Brand name MRP
(2) Double Brand name MRP
Bath linen Brand name MRP
Blanket
(1) Comforter
(2) Duvet
Suiting Shirting Other items 8. Total value if the bill (after discount, if any) POST PURCHASE
9. How long have you been a customer to the Bombay Dyeing, if long, why do you stick on to the brand?
Quality
Designs
After sale services
Customization
The customer relation
Others (specify) 55
10. How do you rate the experiential marketing and merchandise techniques adopted by the company?
To a great extend
Some what
Very little
Not at all
11. Comparing the other brands in the same product category what according to you makes Bombay Dyeing products different so that you make your purchase here?