Brand awareness and retailers survey

Presented By Ajay Sharma Course PGDM (RMM) Roll No. - 045

FLOW OF PRESENTATION
1. 2. 3. 4. 5. 6.

Company profile Vision and Mission Research objective Methodology Findings Distribution of margin in shoes industry

7. 8. 9. 10.

Recommendation Limitation Conclusion Bibliography

COMPANY PROFILE

COASTER SHOES: deals in MANUFACTURING OF FOOTWEAR HEADQUARTER : at A-39 Naraina Industrial Area, Phase-1, New Delhi 110028. FOUNDER: Mr. Darshan Singh

MANAGING DIRECTOR: Mr. Charanjeet Singh

SISTER CONCERN COMPANIES: Apex Shoes Pvt. Ltd., Madaan Plastic Pvt. Ltd. and Coaster Shoes Pvt. Ltd.

COMPANY ESTABLISHED: in 2005

VISION AND MISSION

VISION

To manufacture best quality footwear through innovation and technology,

accompanied by good quality service and dedication.

MISSION
To provide comfortable, durable, good quality footwear. To deliver the product in time with full value of money. To maximize efficiency and performance driving total customer satisfaction.

RESEARCH OBJECTIVE
Title of study

Brand awareness and retailers survey in and around Jaipur & Delhi

Objectives of study

The brands of shoes that local retailers stock. The basis on which consumers choose shoes.

What is the role of margin to push a particular brand and what margins are being offered by different brands?

METHODOLOGY
1.

Sample size: 116 retailers (91 from Jaipur and 27 from Delhi).

2.

Research design: Descriptive research

3.

Data collection: Primary data collection.

4.

Scale adopted: Likret scale

5.

For brand awareness: Distribution of hoardings and catalog of company.

6.

Duration of project: 4th May, 2009 to 25th July,2009

7.

Place of project: Jaipur and Delhi

FINDINGS The brands of shoes that local retailers stock.

Relaxo Action Lakhani Liberty Tracer Reebok Coaster Lee Cooper Lotto Bata Metro Red Chief Adidas Nike Woodland Provogue Puma

58 49 44 40 34 31 30 29 21 16 16 16 14 14 14 4 1

What are the criteria based on which consumers choose shoes?

Do you feel Durability is an important criteria based on which customer chooses shoe?

Do you feel Comfort is an important criteria based on which customer chooses shoe?

Do you feel Shoe weight is an important criteria based on which customer chooses shoe?

Do you feel Brand Name is an important criteria based on which customer chooses shoe?

Do you feel Advertisement is an important criteria based on which customer chooses shoe?

Do you feel Fashion/ Style is an important criteria based on which customer chooses shoe?

Do you feel Indian brand is an important criteria based on which customer chooses shoe?

Do you feel International brand is an important criteria based on which customer chooses shoe?

Do you feel Stitched shoe instead of pasted is an important criteria based on which customer chooses shoe?

Do you feel Retailers suggestion is an important criteria based on which customer chooses shoe?

Do you feel Price is an important criteria based on which customer chooses shoe?

Do you feel Gift is an important criteria based on which customer chooses shoe?

RETAILERS MARGIN ON THE DIFFERENT BRANDS

Brands Action Adidas Bata Coaster Lakhani Lee Cooper Margin 20% 15% 20% 25% 20% 15%

Liberty
Lotto Metro Nike Provogue Puma Red Chief Reebok Relaxo Tracer Woodland

15%
25% 25% 10% 10% 15% 15% 15% 20% 25% 15%

DISTRIBUTION OF MARGIN IN FOOTWEAR INDUSTRY (FOR INDIAN BRANDS)

In footwear industry companies set the MRP 75%, 82%, 85%, and 90% more than its ex-factory cost. For e.g. 525 Rs MRP a pair of shoes ex-factory price will be 300 Rs.(75% more than its ex-factory) Distributor will buy it in 300 Rs. Actual Cost of this pair of shoe for distributor will be 311 Rs.( Including CST and Transport charges) Distributors give different margin to their retailers 1. 28% + 5% on MRP 2. 30% + 2% on MRP 3. 22% + 7% on MRP So for 525 Rs MRP pair of shoes retailers have to pay 359 Rs for first plan, 360 Rs for second plan and 380 Rs for third plan. Now retailer sells this pair of shoe on 10% to 15% less (On MRP) to customer and this type retailer gain 20% to 22 % margin on that pair of shoe.

RECOMMENDATION
1. Retailers Margin should be more 2. Trial marketing should use.

3. MRP should be more

4. Weight should be light 5. Shoes should be more Comfort

6. Brand image should be strong

7. Company should maintain good relationship with its retailers

8. Company should increase its range

9. Promotion

LIMITATION
1. The results may be limited due to the sample area. 2. Certain questions which were not properly responded by the respondent. 3. Some retailers were quite reluctant in filling up the questionnaire during survey 4. High temperature of Rajasthan.

CONCLUSION

1. It is conclude that mostly retailers prefer Indian brands and local

brands. 2. It is also observed by the study that customer chooses shoe on the

basis of brand name, durability, comfort

light weight, retailers

suggestion, advertisement and somehow fashion. 3. The study says that companies which are not well known gives more

margin to push its products in market.

BIBLIOGRAPHY

1. COASTER SHOES MANUL. (2005). company profile. DELHI: COASTER SHOES. 2.RNCOS Industry Research Solutions. (2008, March). http://www.rncos.com/Report. Retrieved July 2009, from www.rncos.com: http://www.rncos.com/Report/IM601.htm 3. Sharma, M. H. (2009, July 13). DISTRIBUTION OF MARGIN IN FOOTWEAR INDUSTRY. (M. trainee, Interviewer) 4. Solutions, R. I. (2008, March). http://www.rncos.com/Report/IM601.htm.Retrieved july 2009, from www.rncos.com: http://www.rncos.com/Report/IM601.htm