Lakhani. Fil
Lakhani. Fil
Lakhani. Fil
On
CONSUMER BEHAVIOUR
Affiliated to
Submitted by:
STUDENT DECLARATION
This is to certify that I, student of MBA 3rd Sem., have completed the Summer
Vacation Training Report titled” (Consumer Behavior)” under the guidance of
“(Ms. Priya)” in partial fulfillment of the requirement for the award of Degree of
Masters of Business Administration for the session 2017-19, at Shri Ram College of
Engineering and Management, Palwal, which is affiliated YMCA UNIVERSITY OF
SCIENCE & TECHNOLOGY, FARIDABAD
The information and data given in the report is authentic to the best of my
knowledge.
This is an original piece of work & I have not submitted it earlier elsewhere.
Date: Signature:
Registration No.:
ACKNOWLEDGEMENT
I owe a great many thanks to a great many people who helped and supported me during this project.
My deepest thanks to Ms. Priya the guide of the project for guiding and correcting various
documents
Of mine with attention and care. He has taken in
to go through the project and make necessary correction as and when needed. I express my thanks
to the Principal and all staff of SRCEM, PALWAL for extending his support. My deep sense of
gratitude to lakhani company Thanks and appreciation to the helpful people at lakhani for their
support. I would also thank my Institution and my faculty members without whom this project
would have been a distant reality. I also extend my heartfelt thanks to my family and well wishers.
Sanjay Sharma
PREFACE
I have completed my training of LAKHANI. This report has been prepared on the general view of
role of marketing.
The experience that I have gained given me a realistic view of the Marketing Policy of an industry
and surely will guide me throughout my life.
Here I saw the practical application of all those things that we study in our academic syllabus. In
this globalized environment, a person is consider to be a half literate till the time he/she only has a
theoretical knowledge but no practical experience and I got the chance to gain that practical
knowledge and experience by working in this company.
Thus, this training experience has acted as a bridge between my practical and academic outlooks.
Table of Contents
NO
2 COMPANY PROFILE
3 REVIEW OF LITERATURE
4 RESEARCH METHODLOGY
7 BIBILIOGRAPHY
8 QUESTIONARRIE
LIST OF TABLE AND FIGURE
1 COST EFFECTIVENESS 63
64
2 BUYING ATTITUDE
3 INFLUENCE BUYING 65
66
4 MEDIA LINKING
5 PREFERED CHANNEL 67
6 BRAND LINKING 68
CHAPTER -1
INTRODUCTION TO
THE TOPIC
Consumer behaviour is the study of individuals, groups, or organizations and the processes they use
to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the
impacts that these processes have on the consumer and society. It blends elements from psychology,
sociology, social anthropology and economics. It attempts to understand the buyer decision making
process, both individually and in groups. It studies characteristics of individual consumers such
as demographics and behavioural variables in an attempt to understand people's wants. It also tries
to assess influences on the consumer from groups such as family, friends, reference groups, and
society in general. Customer behaviour study is based on consumer buying behaviour, with the
customer playing the three distinct roles of user, payer and buyer. Research has shown that
consumer behaviour is difficult to predict, even for experts in the field Relationship marketing is an
influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the
true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A
greater importance is also placed on consumer retention, customer relationship management,
personalization, customization and one-to-one marketing. Social functions can be categorized into
social choice and welfare functions. Each method for vote counting is assumed as social function
but if Arrow’s possibility theorem is used for a social function, social welfare function is achieved.
Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonicity,
unanimity, homogeneity and weak and strong Pareto optimality. No social choice function meets
these requirements in an ordinal scale simultaneously. The most important characteristic of a social
function is identification of the interactive effect of alternatives and creating a logical relation with
the ranks. Marketing provides services in order to satisfy customers. With that in mind, the
productive system is considered from its beginning at the production level, to the end of the cycle,
the consumer (Kioumarsi et al., 2009).
Any individual who purchases goods and services from the market for his/her end-use is called a
consumer. In simpler words a consumer is one who consumes goods and services available in the
market. Example: Tom might purchase a tricycle for his son or Mike might buy a shirt for himself.
In the above examples, both Tom and Mike are consumers.
Need
Social Status
Gifting Purpose
No requirement
Income/Budget/Financial constraints
Taste
Festive season
Birthday
Anniversary
There are in fact several factors which influence buying decision of a consumer ranging from
psychological, social, and economic and so on. The study of consumer behaviour explains as to:
During Christmas, the buying tendencies of consumers increase as compared to other months. In the
same way during Valentines week, individuals are often seen purchasing gifts for their partners.
Fluctuations in the financial markets and recession decrease the buying capacity of individuals. In a
layman’s language consumer behaviour deals with the buying behaviour of individuals. The main
catalyst which triggers the buying decision of an individual is need for a particular
product/service. Consumers purchase products and services as and when need arises. According to
Belch and Belch, whenever need arises; a consumer searches for several information which would
help him in his purchase. Following are the sources of information:
Personal Sources
Commercial Sources
Public Sources
Personal Experience
Perception also plays an important role in influencing the buying decision of consumers. Buying
decisions of consumers also depend on the following factors:
Not all promotional materials and advertisements excite a consumer. A consumer does not
pay attention to everything he sees. He is interested in only what he wants to see. Such
behaviour is called selective attention.
A consumer would certainly buy something which appeals him the most. He would
remember the most relevant and meaningful message also called as selective retention.
He would obviously not remember something which has nothing to do with his need.
The psychology of consumers (what they feel about a particular product and their brand on the
whole). How consumers are influenced by their immediate surroundings, family members, friends,
co-workers and so on.
A marketer needs to first identify his target consumers and understand their lifestyles, psychologies,
income, spending capabilities, mentalities to offer them the right product. Individuals from lower
income group would never be interested in buying expensive and luxurious products. He would first
fulfill his basic physiological needs like food, air, water etc. Trying to sell a Mercedes or a Redo
watch to someone who finds it difficult to make ends meet would definitely be a disaster. Kellogg’s
K special would hardly find any takers in the low income group. In this segment, individuals would
be more interested in buying fresh fruits, vegetables, pulses which are necessary for their survival
rather than spending on health supplements. It is really essential for the marketers to understand the
needs of consumers. Find out what they are actually looking for? There are ideally two different
ways which enable marketers to understand their consumers.
Primary Research
Secondary Research
Primary Research:
Primary Research refers to a research methodology where marketers interact with consumers
directly and gather as much information as they can. Information is generally collected through
surveys, questionnaires, feedback forms, interviews etc.
Secondary Research:
Secondary Research often refers to relying on information which has been collected by others at
some point of time. The background and family status of an individual also influence his/her buying
behaviour. Selling a laptop to an individual who is not much educated would be pointless.
Remember consumers would show interest in your products only if they are of any use to them or
their immediate family members. A low grade worker would never be interested in purchasing
business suits or formal shirts. Canned juices are a hit among middle and higher income group
where individuals are really conscious about their health and fitness. Individuals who live hand to
mouth would never spend on sugar free tablets, health supplements, or for that matter “Diet Coke”.
It is also important to give complete information to end-users. Do not hide anything from them. It is
not ethical. All tobacco products come with a warning. Individuals should be familiar with not only
the benefits but also the side effects of the products.
Geographical location
Lifestyle of consumers
Funky designs, loud colours would be a hit among teenagers whereas middle aged and elderly
people would prefer subtle colours and sophisticated designs.Sal war, Suits are extremely popular in
North India whereas females prefer saris and skirt blouses in eastern and southern parts of India.
Individuals from posh localities and good jobs would show keen interest towards buying exclusive
and unique products as compared to individuals who do not come from an affluent background.
The scope of a subject refers to everything that is studied as part of that subject. When we set out to
explain the scope of consumer behaviour we need to refer to all that which forms part of consumer
behaviour. The scope of consumer behaviour has been briefly touched upon in the previous section
wherein it was explained that how consumer behaviour includes not only the actual buyer and his
act of buying but also the various roles played by different individuals and the influence they exert
on the final purchase decision. In this section we shall define and explain the scope of study of
consumer behaviour. To define the scope of a subject it is important to set parameters or a
framework within which it shall be studied. Figure 1.1 presents one such framework for studying
consumer behaviour. This framework is made up of three main sections-the decision process as
represented by the inner-most circle, the individual determinants on the middle Circle and the
external environment which is represented by the outer circle. The study of all these three sections
constitutes the scope of consumer behaviour. Here, we shall dwell on these constituents of the
framework only briefly as they are explained in detail in the following units.
Marketing is defined as "human activity directed at satisfying needs and wants through exchange
processes". Thus the beginning of marketing lies in identifying unsatisfied human needs and wants
and understanding the ensuing activity which people engage in to fulfil these. And that, as we have
described, is the realm of consumer behaviour. Consumer behaviour and marketing go hand-in-
hand.Trying to do the latter without an understanding of the former in akin to firing a shot in the
dark. 14 Consumer Behaviour-Issues and Concepts Consumer behaviour has a number of
applications in the area of marketing as described in the following paragraphs.
Study of consumer behaviour helps in identifying needs and wants which are unfulfilled. This is
done by examining trends in income, consumer’s lifestyles and emerging influences. The trend
towards increasing number of working wives. and greater emphasis on leisure and convenience
have signalled the emerging needs for household gadgets such as vacuum cleaner, washing machine
and mixer grinder. Tortoise Mosquito repellent coils and Good Knight electrical repellents’ were
marketed in response to a genuinely felt need of the people. Its rapidly rising sales graph is an
indication of how well the product has satisfied the consumer's need.
The study of the consumer trends would reveal distinct groups of consumers with very distinct
needs and wants. Knowing who these groups are, how they behave, how they decide to buy enables
s the marketer to market products/services especially suited to their needs. All this is made possible
only by studying in depth the consumer and his purchase behaviour. A study of potential consumers
for shampoo revealed that there was a class of consumers who would like to use shampoo only on
special occasions and who otherwise use soap to wash their hair. Further, this consumer class would
not afford to spend more than three or four rupees on shampoo. Having identified this target market,
companies with leading brands launched their shampoos in small sachets containing enough
quantity for one wash and priced just at two or three rupees.
Product:
The marketer has the product that will satisfy hitherto unfulfilled consumer need, but he must
decide the size, shape and attributes of the product. He must figure out whether it is better to have
one single product or a number of models to choose from. Does the product require any special kind
of packaging? Does it need any guarantee or after sales service? What associated products and
services can be offered alongside? Maggi Noodles were first launched in the most common flavours
such as masala and capsicum. Having succeeded with these, other flavors such as garlic and
sambhar were launched with the objective of appealing to specific regional tastes. However, these
flavours did not succeed. Recently, exotic flavour such as prawns has been launched. All these are
attempts to modify the product by adding special features, attributes which might enhance the
product appeal to the consumers. The study of consumer behaviour also guides the marketer in
making decisions regarding packaging. Pan Parag was first introduced in tins. But study of
consumer behaviour revealed that people wanted smaller packing which they could conveniently
carry on their person and in response to this the individual pouches were introduced. Further study
of consumers revealed a problem with, these pouches. Once opened and kept in the purse or pocket,
the pan masala would spill out of the pouch into the purse or pocket. To overcome this problem, Pan
Parag has now launched a pouch with a zip. You eat as much as you want, zip up the packet and put
it in your pocket without fear of spillage and wastage. The study of consumer needs revealed the
need for a water storage facility. In the kitchen and bathroom but which didn't occupy floor space.
In response to this need, Syntax added the overhead indoor loft tank to their existing range of
outdoor. Roof top water storage tanks.
Price:
What price should the marketer Charge for the product? Should it be the same as that of the
competing product or lower or higher? Should the price be marked on the product or left to the
discretion of the retailer to charge what he can from the customer? Should any price discounts be
offered? What is the customer perception of a lower or higher price? Would a lower price stimulate
sales? Or is a lower price associated with poor quality? These are the kinds of questions facing a
marketer when taking a decision regarding pricing. The marketer has to determine the price level
which makes the image of the product and which also maximizes the sales revenue. For doing so he
must understand the way his product 15 Consumer Behaviour-Nature, Scope and Applications is
perceived by consumers, the criticality of the price as a purchase decision variable and how an
increase or decrease in price would affect the sales. It is only through continuous study of consumer
behaviour in actual buying situations that the marketer can hope to find answers to these issues.
Distribution:
Having determined the product size, shape, packaging and price, the next decision the marketer has
to make is regarding the distribution channel. What. type of retail outlets should sell the products?
Should it be sold through all the retail outlets or only through a selected few? Should it be sold
through existing outlets which also sell competing brands or should new outlets selling exclusively
your brand of product be created? How critical is the location of the retail outlets from the
consumers' viewpoint? Does the consumer look for the nearest convenient location or is he willing
to travel some distance for buying the product? The answers to all these questions can only be
found when the marketer has a good understanding of the consumers' needs which are being
fulfilled by his product and the manner in which consumers arrive at the decision to buy. A few
years ago, Eureka Forbes introduced a vacuum cleaner in the Indian market. It was not only launch
of a new brand, but rather a launch of a new product concept. No retail outlets were selling vacuum
cleaners very few consumers knew much about the product and fewer still were willing to buy it.
Under these circumstances, the company decided to sell the product only through personal selling
with the salesman calling on the consumer at his home. Here the salesman had enough time to
explain, demonstrate and convince the prospective customer about the utility of the vacuum cleaner.
In a retail outlet situation, all this would just not have been possible. The retailer has neither the
time nor the detailed knowledge required to sell such a new product concept. This distribution
strategy of Eureka Forbes, based on a very fine understanding of the consumer behaviour, has
yielded good sales results. The product concept is well accepted in the urban markets and today the
vacuum cleaner, in addition to personal selling is also. Sold through some selected retail outlets.
Promotion:
The marketer here is concerned with finding the most effective methods of promotion which will
make the product stand out amongst the clutter of so many other brands: and products, which will
help increase the sales objective and yet be within the budget. This is possible only when the
marketer knows who his target consumers are, where are they located, what media do they have
access to, what is their preferred media and what role does advertising play in influencing the
purchase decision? Today, TV is the most powerful advertising medium in the country. And many
brands spend the greater part of their promotion and advertising budget on TV. Brands regularly
advertised on TV soon become well recognized names. But as a marketer you have to question the
suitability of any specific medium in case of your specific product and budget. Suppose your
product is sold in only a few geographical markets you may decide to avoid TV altogether and
concentrate on point of purchase promotion and local advertising through local newspaper,
hoardings and wall paintings. In so many cases of industrial product media advertising is very
negligible, instead, brochures or leaflets containing detailed product specification and information
are directly mailed to the actual consumer, and sometimes followed up by a salesman making a call
to clinch the deal. This is primarily because buyer behaviour and informational needs of industrial
buyers are very different from that of consumer buying. You will study organizational buying
behaviour in detail in Unit 3 of this block. But you can make these decisions only when you know
your consumer and understand his behaviour.
The knowledge of consumer behaviour is also useful in the marketing of non-profit or social or
governmental services of institution such as hospitals, voluntary agencies, law enforcement and tax
collection agencies. The income tax authorities have always been perceived in negative manner by
the common man who fears them and views them in a suspicious light. To overcome this s poor
image, advertisements on TV and in newspapers and magazines are regularly released, wherein a
friendly, helpful image is sought to be projected. Moreover, there is greater dissemination of
information regarding the rights and responsibilities of the taxpayer. Similarly, Delhi Police is
trying to overcome the problem of poor image by projecting itself as always alert and available for
help through regular newspaper advertisements
In the role of provider of goods and services, we make marketing related decisions
as choosing who our customers are, what goods and services to offer, whether to sell
one goods & services, what features emphasize
And what price to charge. The persons who are providing these types of activities are
called as marketers. All types of organizations and individuals utilize these activities.
Definition of Marketing
The marketing program should start with an idea about a new product and should not
end until the customer wants are completely satisfied, which may be sometime after
the sale is made.
Footwear has come out as one of the basic needs and necessity of today’s human beings. It
is as important for human being as clothes and shelters. The importance of said product has been
highly recognized in the western and other advanced countries. Footwear industry in these countries
comes in category of other developed industries, for example Nike and Reebok of America, Laspaz
of U.K., Gooci of Italy is some of the highly reputed companies manufacturing Hi- tech shoes and
having world wide acceptability. The scenario in India is some how different and regretfully this
industry could not develop itself despite the fact that India being second largest populated country
in the world ,surplus manpower and resources of raw material ,whatever the reasons being.
Till the mid 20th century the bulk of shoe industries where in cottage sector, professional
cobblers were responsible for traditional shoes, Indian style as well as western style.
In post independence era the policies of the government were solely guided to provide
protection to cobblers, which mainly came from scheduled cost through direct, or in direct
regulations. Till Bo’s industry kept on moving at slow pace with two or three branded products
available at national distribution. In the past one decade the situation has completely changed
because the new generation of professionals did not adopt this line as shoemaker and preferred to
join the white collar jobs. Now a majority of workers in the shoe industry at Agra. Even in Agra
fewer servant of the other class people are taking over the job of shoe making.
With this situation, the growth of the industry remained stagnant because of non-availability
of worker/Professional to keep the pace of the demands. With the rising of population up to 850
million people, the shortage of footwear was replaced by plastic industry and Hawai chappals
became a common wear through out the country replacing the r\traditional type of Indian shoes
being manufactured by the rural class of shoe cobblers. In the cities and towns with higher
standards of living the demand of domestic market could be hardly met. Nationally Bata remained
the main source of supply to meet such demand.
The present scenario of shoe industry has changed by the liberalization of economic policy.
Many national and multy national brands have emerged in Indian footwear industry rate of
production is not adequate to meet the requirements. Taking into the consideration
The growing standard of living, the production capacity of industries has to be geared up
with changing needs of consumers. A pair of shoe for each person is accepted as a minimum
consumption, we could imagine the necessity of the growth of this industry. Even the combined
strength of the total output of the plastic, canvas, rubber and other categories of shoes do not make
up the populated requirements of this country.
The industry holds enough if expansion opportunity with the massive availability of natural
resources and simultaneous consumption of the products being produced. Hence it logical to
modernize the industry in comparison to the industry of Europe, America and other advanced
countries.
Taking Indian shoe industry in consideration al modernization has anticipated will remain in
the small sector because of low availability of capital with the owners of the shoe making houses.
We can look towards Italy, which is the leader of footwear trader, the bulk of production is from
small-scale sector and a unit having about 20-30 workers could produce 200-500 pairs per day. The
total capital in machinery and raw materials is few lakhs of rupees.
Whereas in India, one person produces one pair of high quality shoe in a day in
cottage/small scale industry, which is quite low in comparison to international standard.
With the mechanization of shoe industry production of footwear in 1980’s have come up
almost in each of the state, whereas earlier it is used to be mainly at Agra. But now karnal,
Faridabad, Delhi, Jullnder, Calcutta, Kanpur, Mumbai, madras and Bangalore and many other
places have come as new production for centers for bulk of production activities. With the increase
in the production capacity in 80’s about 20 smillion pairs of shoes upper or being exported to
various countries but to expand the exports, the value added production, diversification of shoe
uppers exported to footwear has to be programmed.
With the growth of this industry future of ancillary industry units is very bright. These
ancillary industries have important role to play in the growth of show industry. Ancillary units
manufacturing parts of footwear that in soles, insoles, stiffeners, puffs, buckles, synthetic uppers
and the material as assumed a greater role for strengthens and getting of fast rate of production in
the footwear industry. Even in Europe and in other advanced countries the shoe industry has only
growth with the growth of ancillary industries.
It is an ideal industry for entrepreneurs without much of the investment in the industry
assuring production having a constant and growing consumer demand. Profits are assured.
Availability of raw material and manpower is not a problem so the small scale sector has to play
vital role in the industry development.
ELEMENTARY KNOWLEDGE ON FOOTWEAR
Footwear is a man made outer covering of foot. It is generally made up of leather but the
same can also be made with synthetic material. It protects from feet from ground and other various
aspects it can also be defined as wearing apparel for the feet. Depending upon the style, type and
purpose, the footwear can be broadly classified into three groups.
CHAPTER - 2
COMPANY PROFILE
The patriarch started this commendable journey in 1966 with the inception of Lakhani Rubber Works, a
small venture to manufacture rubber components. His hardship and commitment made Lakhani Rubber
Works an acclaimed name in the industry. Eight years later, he expanded his vision further when the group
diversified into the manufacturing of Beach Slippers and that signaled a new dawn in the history of Indian
Shoe Industry. And three years later, the Canvas Shoes followed.
His endeavor and systematic approach helped the group expanding its horizons to sports shoes
This never ending saga of success continued with their tie-up with Adidas India for the manufacturing of
sports shoes.
The Present
Today, the group is the largest manufacturer of beach slippers in India with a production capacity of 40
million pairs per year. Also, it is the largest manufacturer & largest exporter of canvas and vulcanized shoes
Lakhani Armaan group is the largest producer of Sports Shoes, PU Injected Sports Shoes, PVC Injected
Sports Shoes and Leather Shoes with a total capacity of 5.4 million pairs per year. It also manufactures
high fashion ladies and gents leather shoes for the European Union Market.
The eminence of the company, in the International Footwear Industry, is apparent from the fact that it has
been manufacturing sports shoes for the global sports apparel manufacturing giant, adidas.
For over 80 years the adidas Group has been part of the world of sports on every level, delivering state-of-
the-art sports footwear, apparel and accessories. Today, the adidas Group is a global leader in the sporting
Lakhani Armann group has been manufacturing sports shoes for adidas for the last 10 years and it is the
only suppliers in India. The group is manufacturing more than 1 million pairs per year for the brand adidas
Beside this, the group also has the distinction of being the largest suppliers of rubberized auto components
to major automobile players in the Indian market. Year of tracking key industries extensive experience and
knowledge coupled with primary research has enabled the group to deliverspecified products to their
customer.
Steering Systems Limited, Escort Limited (Tractor Division), Escort Limited (Farmtrac Division), Escort
JCB Limited, Escort Construction Equipment Limited, LML Limited, New Holland Tractors Ltd, Subros
Limited, Ford India Limited, Krupps JBM Ltd, Fiat (India) Ltd, Motherson Sumi Systems Ltd and QH
Talbros etc.
IFB Ltd, Intron Ltd (Electrolux Group) and Samsung Electronics (India) Ltd.
The Future
The future holds more promises to those who believe in themselves, who possess the attitude to fulfill their
goals and aspirations. The same holds true for Mr. Gunjan Lakhani, director of the group. A man with a
vision, Mr Lakhani is committed to putting the group at the vanguard of the footwear industry.
Each member of Lakhani Armaan Group is committed to follow the vision put forth by Mr. K. C. Lakhani.
A vision to be the industry leader. A vision of growth and prosperity for all. A vision for a better future…
Horizons
The company has been awarded by the President Giani Jail Singh for its commitment to quality.
Today, after this success in domestic market Lakhani Armaan has expanded its horizon by, exporting its
range of quality products to the international market in UK, Germany, France, Spain, Switzerland, Holland,
Obligations
The group very well understands its responsibilities towards its employees, environment and society at large.
It maintains social and environmental compliance to the prescribed international standards and pays due
Products
Exports
Lakhani Armaan Group is the largest producer of Sports Shoes, PU injected Sports Shoes, PVC Injected
Sports Shoes and Leather Shoes with a total capacity of 5.4 million pairs per year. It also manufactures
high fashion ladies and gents leather shoes for the European Union market. The eminence of the company
in the international footwear industry is apparent from the fact that it has been manufacturing sports shoes
for the global sports apparel manufacturing giant, Adidas. Lakhani Armaan group has been manufacturing
sports shoes for Adidas for the last 10 years and is its only suppliers in India. Also, it is the largest
manufacturer of beach slippers and the the largest manufacturer and the largest exporter of canvas and
leather vulcanized shoes in India, with a production capacity of 3.5 million pairs per year.
Lakhani Leather Export Division is regularly participating in the Leading Leather Footwear Fair in the
Europe:
GARDA ITALY
GDS GERMANY
MICAM ITALY
At these fairs, we exhibit the company's range of finished leather footwear based on MODEUROP. Our
interaction with customers at these fairs helps us farecast fashion trends and we offer Spring-Summer and
Manufacturing
Sports
The sports Shoes manufacturing facility is equipped with high end machinery for producing top of the line
sports shoes. Skilled manpower and superior technology has enabled the company to produce shoes known
for comfort and better performance. Over the years, the company has immensely upgraded itself in terms of
Leather
Lakhani Armaan has world-class facilities at its leather shoe manufacturing unit. It’s a perfect blend of man
& machines to achieve world-class quality standards. At Lakhani Armaan, special care has been taken to
ensure that the leather footwear developed at its manufacturing facility combines the right balance of
Canvas
At Lakhani Armaan canvas Shoes are manufactured in the state of the art facility. The facility is well
equipped to manufacture premium-quality Premoulded Canvas Shoes, Rolled Sole Canvas Shoes and
Unlined Vulcanized Shoes. The division is producing more than 11000 pairs per day for the domestic and
export market.
EVA
Lakhani Armann has ultra modern facility for the manufacturing of EVA and Beach Slippers. The group
has made the best use of the EVA injection technology by substantially increasing the product line and the
production capacity. The company is again geared up to install two color EVA injection machines in its
facility.
The Group
Lakhani Armaan group is the largest manufacturer of beach slippers in India with a production capacity of
40 million pairs per year. Also, it is the largest manufacturer & largest exporter of canvas and vulcanized
shoes in India, with a production capacity of 3.5 million pairs per year.
It is the largest producer of Sports Shoes, PU Injected Sports Shoes, PVC Injected Sports Shoes and
Leather Shoes with a total capacity of 5.4 million pairs per year. It also manufactures high fashion ladies
The eminence of the company, in the International Footwear Industry, is apparent from the fact that it has
been manufacturing sports shoes for the global sports apparel manufacturing giant, adidas.
For over 80 years the adidas Group has been part of the world of sports on every level, delivering state-of-
the-art sports footwear, apparel and accessories. Today, the adidas Group is a global leader in the sporting
only suppliers in India. The group is manufacturing more than 1 million pairs per year for the brand adidas
Beside this, the group also has the distinction of being the largest suppliers of rubberized auto components
to major automobile players in the Indian market. Year of tracking key industries extensive experience and
knowledge coupled with primary research has enabled the group to deliver specified products to their
customer.
Footwear is no longer just a functional necessity, but rather, something that is flaunted as a fashion
statement. A good shoe should have both, Comfort and Style and it should adjust to your feet with every
step. To survive this test of time, it is always necessary to keep abreast with the changing market trends and
to innovate new and fresh. Therefore, Research and Development is a key area of operations at Lakhani
Armaan. Latest trends and technological innovations are researched extensively in the process of creating
The VISION inspired Lakhani Armaan Group ensures strict adherence to quality standard at each and every
stage of operation. The group has translated its commitment to quality into clear objectives where strategies
Technology
Footwear Technology is evolving at an amazing speed. Better and updated technology is the key to the
quality and enhanced productivity. Lakhani Armaan Group blends premium material and advanced
technology to produce footwear of international standards. The group has pioneered in latest footwear
Network
Lakhani Armaan has extensive market network spread through out India. The group believes in forming
formidable relationship with its whole-salers and retailers. The strategy has paid off and today the group
has strong distribution network of over 350 whole-salers and around 50000 retailers, the biggest of its kind
in INDIA.
CHAPTER- 3
REVIEW OF
LITRETURE
SHORT REVIEW
Lakhani India Ltd. (LIL) was originally incorporated as Lakbros ShoeCo. Pvt. Ltd. on
December 28,1981. Lakbros was converted into a deemed public company under section
43A(I) w.e.f. 14th July, 1989 by deleting the restriction clause u/s 3 (i)(iii) of the Act and
subsequently the name was changed to Lakhani India Ltd. w.e.f. September 12,1994. The
shareholders passed a special resolution on September 16, 1994 for adoption of new set of
Articles of Association Lakhani India Ltd., the flagship company of the well established
'LAKHANl GROUP', was set up with the main object of manufacturing Leather and Non
Leather Shoes. The company is currently manufacturing and marketing only Non Leather
Shoes specially sports shoes and Children's Shoes. The present installed capacity for the
manufacture of Non Leather Shoes stands at 30,00,000 pairs per annum and is proposed to
be increased to 61,65,000 pairs per annum. The company is also planning to diversify into
the manufacture of finished Leather Shoes.
PLACE
This is the fourth and last “P” of the marketing mix .it includes various channel of distribution,
marketing coverage, their locations, media of transports etc. to cover more target consumer the
network of sales is being widened by showroom and appointment of more distributors for various
footwear products.
Market requirement can also be replaced with Market Demand. It helps in evaluating marketing
opportunities. So; we can define Market Demand as under: Market Demand for a product is the
total volume that would be brought be a defined consumer group in a defined geographical area in a
defined time period in a defined marketing environment under a defined marketing programmed.
For the last few years, in shoe industry there was an election campaign by many brands to win or
attract consumers. And in this election the Bata wins the position in the middle-income group of
consumers. But, taking into account the liberty, which is second in the market, has declined in the
past one decade .the consumers do more prefer quality, durable and economical footwear. Reebok,
Nike and Adidas have its hold in the market particularly in case of sports footwear. They have
premium range of shoes, which only high-income group consumers prefer. They have good quality
footwear and prices are also worth for it.
Other’s side, premium range and quality leather footwear’s typically known as loafer shoe
i.e. with brand name Woodland and Metro I in the fashions and attracted the young slot customers
with their newly designed and good quality leather shoe and that is why they have a good position
in the market in premium range footwear’s.
As per the survey conducted by Business World magazine and report carried by Business World in
the issue dt.8th-21st January, 1997, 7 companies from the footwear sector were plotted among the
324 India’s most respected companies.3 companies out of 7 are multinationals and only 4
companies namely Bata, Liberty, Lakhani, &Mascots are listed on these stock exchanges in India.
Behavior of consumer toward certain product depends on the following factors.
Buying Behaviour:
Complex Buying Behaviour: Complex buying behaviour involves a three-step
process. First the buyer develops beliefs about the product. Second he or she
develops attitudes about the product. Third he or she makes a thoughtful choice.
Consumers engage in complex buying behaviour when they are highly involved in a
purchase and aware of significant differences among brands. This is usually the case
when the product is expensive, bought infrequently, risky and highly self
-expressive.
Dissonance – Reducing Buyer Behaviour: Sometimes the consumer is highly
involved in a purchase but sees little difference in brands. The high involvement is
based on the fact that the purchase is expensive, infrequent and risky. In this case the
buyer will shop around to learn what is available but will buy fairly quickly, perhaps
responding primarily to a good price or to a purchase convenience.
Habitual Buying Behaviour: many products are bought under conditions of low
involvement and the absence of significant brand differences. There is good evidence
that consumers have low involvement with most low – cost, frequently purchased
product.
SALES PROCEDURE
To carry out selling functions, it is important to have a qualified and experienced sale forces
with a leader who can plan organize, direct and control the selling job objectively. The salesman is
an extr3emely important link with consumer and the chain of distribution. it is some times said that
salesmanship is the other name of persuasion.
Salesmanship guide
Certain motto and guidelines for salesmen are being as how to satisfy the customers.
Guidelines for salesmen.
It is said “self yourself before you sell the product” so the above saying has meaning to
create your confidence in the mind of consumer to ensure sales.
Your sincerity and capability in conversing is your performance for success.
Over conversing never pays simple facts convince better.
Remember consumer is more intelligent than you.
Do not indulge in giving guarantees of wear and tear.
You should predetermine in your mind item and size to be should to the consumer as per
stock.
Your expertise is your success. Do not display your all varieties as per stock to the
consumer.
Generally consumers have open mind. So you can diversify their mind to your advantage.
Value addition sales can be achieved by offering additional category I.e. accessories,
homewards and morning walk shoes.
Marketing mix is the one of the major concepts in modern marketing. It can be defined as”
Marketing mix is the particular blend of controllable marketing variables that the firm uses
to achieve its objective in the target market.
Now the question arises, what variables make up consumer to buy product through
marketing mix? There is actually a great number of marketing mix variables. Fortunately they can
be classified into few major groups. One of the most popular classifications has been proposed by
Mr. Carthy and is called the “four P’s “: Product, Price, Place and Promotion.
The consumers decision on the product quality feature, price, advertising budget, marketing
channels and other marketing variable for this target market make up its markets mix .the marketing
mix is the means by which the consumers gains and supports
the competitive position it seeks to occupy in the target market.
PRODUCT
This “P” of the marketing mix includes various variables related with product like quality of
product, features, brand name, style, packaging, etc.
Regarding the quality of the product of any companies, it can be said that the products are of
very high quality as these are manufacturing on the imported machines of latest technology by
using the imported raw material of high quality. The main features of the product are that they are
perfectly designed in the shape as specified by the consumers and they are highly
PRICING POLICY
Price denotes the value of a product or service express in the terms of money. It is a
powerful instrument to both, e.g. the buyer and seller, in the market place. In money, economy
without price there cannot be marketing. It is the only element in the marketing mix that creates
sales revenue. The other element are cost etc. since price is the source of income for the seller the
higher the price the seller can get for his products the greater are his profits. On the other hand,
when the price of the product is high, few consumers or users will have enough money to buy and
the market may greatly be reduced. Therefore, pricing is a dangerous and explosive marketer’s
force. It must be used with great care. Prices of the products are being set in the company by
considering the following parameters:
1. Raw material input: The cost of raw material consumed per unit is approximately calculated.
2. Commission cost: The total cost measured for the commission of raw material into finished
product is calculated and then profits are calculated including the rejection.
(1) CLIMATE:
Climate affects the demand of hoe largely. During the Winter Season i.e. the month of November
and December the demand of hoe I usually high rather than remaining period of year. The demand
of Slipper increase during summer season as compared to the winter season. it remains nearly 30-
35%only during the rainy season. But the demand of the leather shoes is badly affected by rainy
season. Their demand nearly 5%to 10%during the rainy season as compared to the sale of the peak
period or the sale of the boom position. This shows that how climate effect the behavior of
consumers.
Geographical location of the region also affects the requirement of the shoes. Consumer will buy
according to their region requirement only .in case of hilly areas the demand of small sizes is
usually high but in the case of plain areas the demand of the standard size is high. The requirement
of the coastal areas. In case of the hilly areas the demand of the leather shoes is less and the demand
of the synthetic and sports are usually high. So the geographical locations affect behaviors of
consumer according to their requirement.
It usually consists of age, sex, family, life cycle, social class etc. the requirement of shoes according
to age also differ. The consumer demand for smaller age is usually very low .the demand of shoes
shoes is usually high of the school and college going students. The persons above than fifty are not
demanding shoes. They only wants comfortable shoes that give them relax.
The lady section is also differing from the gents’ shoes. They mostly wants fashionable shoe
or chapels which are more fancy I design. Family life cycle also affects the consumer decision of
purchasing. If the number of the children is more in a family then their demand for children shoes is
high.
Economical condition of the consumer is also affect the requirement of shoes. In Bangalore
the economic condition is usually good because of the IT industry, tourist place, industrial
development, and good business opportunities.
The place where usually the outside buyers visits, there the demand of shoes is usually higher than
the demand in the near by region. Bangalore is also a picnic spot so here visitors are coming
frequently here so they also affect they local customer behaviour. The demand of shoes usually high
because the visitors usually go for the shopping on these spots.
In a family school going and office going person also affect the decision of consumer .in the schools
it is compulsory to wear shoes and in office it is a
The western or we can say that European culture is going on spread in India largely. People usually
like that culture and designs of that areas .so the effect on shoes are also found. These designs are
firstly adopted by the high quality shoes and then by the local shoes. The people who are not able to
buy the high quality shoes they wait for sometimes and then they go for the buy of local shoes in
the western design.
CONSUMER FEEDBACK
It involves listening to customer’s needs, it includes continuously monitoring market trends to spot
new needs .it also involves running focus groups to test color and style preferences and confirms
the preferences by carrying out surveys in shopping malls .it also includes listening to the
complaints to learn how to improve and service quality. As the companies its strategy, it needs
track the results and monitor the environment. Some environments are fairly stable from year to
year. Other environments evolve slowly in a fairly predictable way. Still other environments change
rapidly is unpredictable. Consumers always for their benefit so companies should adopt such policy,
which are helpful to consumers. The consumer can count on one thing: that the environment
and fashion can change any time when it does companies should need the study of the consumer
preferences wants and their capability in changing environment. A company’s strategic fit with
the environment will inevitably erode because the market environment almost always changes
faster than the company’s7-S’s i.e. shared values, Skills, Staff, System, Strategy, Structure and
Style. Peter Drucker pointed out that it is more important to do right things (being effective) than to
do the right things (being efficient).
RESEARCH METHODOLOGY
Research - the advanced learner's dictionary of current English lays down the meaning or research
as "A careful investigation or enquiry especially through search of new facts in any branch of
knowledge"
Redman and mory defines research as "the systematical effort to gain new knowledge"
According to Clifford woody, research comprises defining and redesigning problems, formulating
hypothesis or suggesting conclusions and at last carefully testing the conclusions to determine
whether they fit the formulating hypothesis.
Research methodology is a way to by systematically solve the research is done scientifically. In it
we study various steps that are 'generally adopted by a researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the research
method/techniques but also the methodology.
Thus, we talk of research methodology we not only talk of research methods but also consider the
logic behind the methods we use in the context of our research study and explain why we are using
particular method or technique and why we are not using others so that research results are capable
of being evaluated either by the researcher himself or others.
TYPES OF RESEARCH
The basic types of research are as follow:
RESEARCH DESIGN
A research design is these arrangements of condition s for collection and analysis of data in manner
that aims to combined relevance to the research to the research purpose with economy in procedure.
As such the design includes an outline of what researcher will do from writing the hypothesis and
its operational implication to the final analysis of data. More explicitly, the design decisions happen
to be in respect of:
What is the study about?
Why is the study being made?
Where will the study be carried out?
What type of data is required data be found?
Where can the required data are found?
What periods of time will the study includes?
What will be the sample design?
What techniques of data collection will be used?
How will the data be analyzed?
In what style will the report be prepared?
SAMPLE SIZE
A sample size is 100 consumers.
SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from given population. It refers to the
technique or the procedure the researcher would adopt in selecting items for the Sample i.e. the size
of the sample.
Stratified sample method is adopted to select the sample.
SAMPLE UNIT
In this study the sampling unit used is the existing customer base of JCBof Faridabad city.
Selection is made from the list of customers during the last one year..
SOURCES OF DATA COLLECTION
Primary- Primary data are those, which are collected afresh and for the first time, and thus happen
to be original in character. Primary data can' be collected either through experiment or through
survey. If the researcher conducts an experiments, he observes some quantitative measurements, or
the data, with the help of which he examines the truth contained in his hypothesis, But in the case of
a survey, data can be collected by any the following ways:
By observations
Through personal interviews
Through telephone interviews
By mailing of questionnaire's
Through schedules
We have collected primary data during the course of doing experiments man experimental research
but in case we do research of the descriptive type and perform surveys, whether there sample
surveys, then we obtain primary data either through direct communication with respondents in one
form or another or through personal interviews. This, in other words means that there are several
methods of collecting primary data, particularly in surveys and descriptive researches.
Questionnaire is used for primary data collection.
Secondary- Secondary Data are those which have already been passed through the statistical
process. Secondary data may either be published data or unpublished data. Usually published
data are available in following ways:-
1. The company has a series of objectives to help it measure progress towards these aims.
2. In relation to the aim of customer centricity,one of zurich’s objectives is to achieve top quartile.
3. Customer satisfaction when compared with other companies in the financial servies industry.
4. The top 25% of insurance and performance as measured by insurance and financial services
providers for all aspects of its performance as measyred by independent research.
5. In relation to the aim of giving shareholder value, one of Zurich’s objectives is to achieve a return
on equity in 16%.
6. The dividends to its shareholder of its shareholder if it makes sufficient profit.
7. In relation to the objectives of being the employer of choices, one of Zürich’s objectives is to
secure high employees engagement scores.
8. These are measured through employee satisfaction surveys.
9. A committed and motivation workforces are more likely to delivery high level of customer
services and be loyal to the company.
10. The company has a series of objectives to help it measure progress towards these aims.
Scope
1. The scope of consumer behavior is the wide varieties of activities consumer engage in as they
research, buy, use, and dispose of products.
2. This is a topic of interest for marketers and other researchers who examine how consumers
behave in the market.
3. This information can be important for the development of products and ad campaigns that meet
the needs of consumer effectively.
4. Consumer move through a variety of steps as they buy products.
5. Psychologists and anthropologists study consumer behavior for more theoretical reasons with an
interest in how it interacts with other aspects of human behaviors.
6. Companies also want to know when consumers make purchases, looking at the frequency of
purchases and the conditions under which they occur.
LImitation
1. Consumer buying behavior is a psychological process that is important to businesses and
marketing professional.
2. Consumer buying behavior relates to the identification of consistent stages of decision making
used in every purchase situation.
3. The process beings with need recognition, followed by information gathering, a purchase and
finally, post-purchase evaluation.
4. Marketers rely on an understanding of buyer behavior to effectively position products and
services.
Disadvantages
1. In the quest to learn more about what drives consumer and therefore how to influence their
choices, researchers have developed several approaches to their work.
2.According to professor Lars Parners of the university of southern California, a consumer
psychologist, consumer behavior perspectives help develop marketing and understanding how to
become a better consumer.
3. However, not everyone agrees with this common use of behavior perspectives.
4. There are potential academic and cultural ramifications that concern critIcs
Research is an important pre-requisite for a dynamic study of any type. Precise research is a more
systematic activity directed towards the discovery and development of organized body of
knowledge. Some of the characteristics of research methodology are as follows:
Research is directed towards a solution of a problem. It may attempt to answer a
question or to determine the relation between two or more variables.
Research involves gathering new data from primary of first hand source or using
existing data for new purpose.
Research is based on observable experience or empirical evidence.
Research strives to be objective and logical applying every possible test to
validate the proceed are employed the data collected and conclusion reached.
NATURE OF DATA
SECONDARY METHOD
The methodology followed in conducting the study is to collect data
regarding footwear production, trade, and consumption in India and also to study the behavior of
consumer how they are responding towards footwear’s product of different companies.
The data & facts were taken from many journals, periodicals, published materials, and internet and
also from some reports of council for leather exports.
SAMPLING PLAN: As sampling plan was designed in which decisions had to be taken about
target population unit, sample single, sampling procedure?
TARGET CONSUMERS
SAMPLING UNIT
This answered the question of who has to sample in the target consumer.
CONSUMER
DEALERS
SAMPLE SIZE
Total sample size in case of study is to respondent 100 and 10 dealers.
PROCEDUR
Mainly the data was collected by the door-to-door survey of the footwear showrooms and
asking from the consumers and dealers the set questionnaires and also some questions
besides it in order to study the market. The questionnaires followed are given in last in
annexure.
The data was also collected by some magazines, periodicals, and published materials and through
Internet.
INSTRUMENTATION TECHNIQUE
A list of questions pertaining to the survey was prepared under this study. The
questionnaires were distributed to the retailers at the outlets and information’s
were collected from customers through personal interviews.
The data collected through questionnaires are coded and tabulated. Various diagrammatic
presentations like chart, graphs & tables were used to represent the information obtained, to
the reader in an understandable manner.
We take the various income segments as what is the division of total preferences in various income
segments.
1. We set up a null hypothesis denoted by Ho. This means there is significant difference
between sample value and population value. In case if Ho is rejected, we must have
an alternate hypothesis HA. So we set up an alternate hypothesis.
2. Select the level of significance.
3. Select an appropriate distribution for the test, which is known as test statistics. The
distributions generally used are normal distribution, student ‘ t ‘ distribution, Fishers
‘ F ‘ distribution or Chi – square 2 distributions.
4. Calculate the necessary values from the given data for the test.
5. Make conclusions for testing. If calculated value is less than the tabulated value, Ho
is accepted, else HA is accepted rejecting Ho.
Chapter- 5
Data analysis
&
Interpretation
Q 1.Specify the reason for purchase of particular brand of liberty footware, rank according
to your choice.
COST EFFECTIVENESS
TABLE-1
INFERENCE:
About the cost of footwear most of respondent says it should be cost effective
i.e.64%,and 36% says its no. Source: 100 respondents for footwear .
INFERENCE:
About the buying attitude of customers regarding product attribute such as Discount
preferred by 37 %,Quality 16 %,Price 28 %,Fashion 13 %, and Comfort 6 %. This shows the
consumer
GRAPH
TABLE -3
INFERENCE:
This tables shows consumer influence on buying personal preference 47 %,Advertisements
28% ,friends 18 %,shopkeeper 5%, and 2 % are influenced by their
GRAPH 3
INFERENCE:
This table shows popularity of media in respondents according to their choices. According
to this graph TV is most popular media among respondents. TV 80 % Magazine 6%, Hoarding 4%
and news paper 10 %.
GRAPH
PREFERRED CHANNEL
TABLE-5
SOURCE:
Primary data collected from questionnaire
INFERENCE
This table shows popularity of different channels among respondents. According to this
graph 24% respondents has preferred Doordarshan, 21%Zee Channel, 24 % Star plus, 22%Star
Sports and 9 % Others.
SOURCE
Primary data collected from questionnaire
INFERENCE
This table shows classification of respondents to find out brand liking .17% prefers Liberty,
21%Bata, 15% Metro, 18% Nike, 20%Reebok, and 9% Adidas.
This graph shows classification of respondents to find out brand liking .17% prefers
Liberty,20%Bata,15% Metro,18% Nike,21%Reebok,and 9% Adidas.
TABLE -7
INFERENCE:
This table shows desiring to watch an ad. In between the programme.45 % respondent has preferred
to watch an ad. 38 % people before the program 17 %after the program.
SOURCE:
Primary data collected from questionnaire
INFERENCE
This table shows classification of respondent by sex among two-categories.64 % male and
36 % are female. These are the respondents who are included in the study.
CHAPTER 6
Conclusion
&
Suggestion
In the highly competitive world to attract the consumers is no more cakewalk.The scope of
study of this project is to study the domestic footwear market and to study the behaviors of
consumer and their attitude towards it. So as to know its strengths and weakness in Indian
environment. The scope also includes to study the market potential and demand of footwear
companies .it has better scope for the future study .it is a continuous process rather than a time
bound process from time to time the companies should have to go for extensive study at the market
as well as to encourage the further study in this direction. Following are the main conclusion from
this analysis:
1. Data indicated that Bata has gained more popularity comparatively his competition in
very short period.
2. Nike and Reebok in young are most popular brands.
3. During purchasing personal liking is most influencing factor in people.
4. Demand of Woodland is very low among men footwear.
5. TV is most popular media among students.
6. Demand of sport footwear is very low among female footwear.
7. Most of respondents influence by discounts offer and some because of range of product.
8. Maximum respondents have preferred to watch advertisement in between the
programmed.
Every research activity ends up with some conclusion. After consulting the experts, reviewing the
literature and analysis the data, researcher landed upon some conclusion regarding the behavior of
consumers toward foot wears. These are the conclusion, which found from the study:
The Indian footwear industry market is very big .it is providing every type of shoes to the
consumer.
The Indian consumer’s preferences towards footwear’s companies are very high.
The existing market situation for the footwear’s industries is very good
SUGGESTION OF STUDY
IMPLICATIONS
Present study is based on consumer behavior .it is a very useful tools in the hands of
industries when they are formulating any sales policy in the market they have to launch only that
product which get the positive response from the consumer. by the help of this study we are able to
know which product is more in demand and why it is what the consumer hope from the footwear
companies and for companies it is also helpful to know about the consumer preferences, tastes their
culture, their likes dislikes, their values ,beliefs and the past experiences. This study gives many
help to analyzing such problems.
CHAPTER- 7
BIBLIOGRAPHY
BIBLIOGRAPHY
RESEARCH METHODOLOGY
C.R. KOTHARI
MARKETING MANAGEMENT
PHILIP KOTLER
BUSINESS RESEARCH
R.G.MUDRICK
CONSUMER BEHAVIOUR
SCHIFFMAN, L.G. AND KANUK, L.L.
JOURNALS, MAGAZINE AND PERIODICALS
www.lakhani.com
www.google.com
CHAPTER- 8
QUESTIONNAIRE
Q1. Specify the reason for purchase of particular brand of liberty footware, rank according
to your choice.
a. Yes
b. No
Q2. What are the different buying attitude of customers regarding product ?
a. Discount
b. Quality
c. Price range
d. Fashionable
e. Comfort
Q3. What are the tables shows consumer influence on buying personal?
a. Personal
b. Advertisement
c. Friends
d. Shopkeeper
e. Parents