Professional Documents
Culture Documents
On
Consumer Behaviour towards
Rostel Apparel
The information and data given in the report is authentic to the best of my
knowledge.
-Himanshu sharma
CERTIFICATE
First of all, I would like to express my gratitude to Ms. Kangan for her kind
help and encouragement. I am very thankful to her for her advice,
assistance, and constant support throughout the preparation of this
report.
I would like to thank all my beloved teachers for their support and
confidence in me.
-Himanshu sharma
INDEX
1. Declaration (i)
2. Certificate (ii)
3. Acknowledgement (iii)
4. Executive Summary 1
6. Motivation 5
7. Basic Software piracy terminology 6
8. Types of Software piracy 7
11 Recommendations 19-20
12. Conclusion 21
13 Limitations 22
14. Bibliography 23
The project report begins with a brief overview of the product category being
dealt with, namely premium quality sports apparels. It also dwells briefly on the
history of the company and its current position and activities.
The project moves on to the crux of the matter the marketing plan to be
followed by Rostel in India. Firstly, the objectives behind this plan and the core
strategy are stated. Customers to be eventually targeted are described and
compared with competitors customer targets. After stating the objectives and
reasoning behind them, the actual marketing programs are described in detail.
This includes aspects such as pricing, advertising, promotion, sales, channels,
and the company website. Suggestions are made on each and every one of
these aspects; improvements and innovations are recommended.
The project report then goes on to the customer analysis section. The
customer base is identified and various segments are pointed out. Various
criteria and factors have been taken into consideration while segmenting the
market. We have also tried to ascertain why customers buy these products,
how they choose, and what factors matter most when making their decisions.
BACKGROUND OF THE PROBLEM
Since the late 1980s, Business School marketing professor Itamar
Simonson has looked for ways to understand how consumers make
choices. Much of his work debunks the accepted theory that giving
consumers what they want and making a profit are the most basic
principles of marketing. Customers may not know what they want, and
second-guessing them can be expensive, says the professor who
teaches MBA and PhD marketing and consumer decision-making
courses. In Simonsons words, The benefits and costs of fitting
individual customer preference are more complex and less
deterministic than has been assumed. Thats because customer
preferences are often ill-defined and susceptible to various influences,
and in many cases, customers have poor insight into their preferences.
In one of his recent papers, Simonson tackles the issue of one-to-one
marketing and mass customization. Supporters of these marketing
approaches have suggested that learning what customers want and
giving them exactly what they want will create customer loyalty and an
insurmountable barrier to competition.
RECENT DEVELOPMENTS
While retail sales have increased both in value and volume, wholesale
sales have declined due to restriction of supplies as a means to recover
customers outstanding. General recession and sluggish market
conditions in the industry also have had a direct impact on lower sales
and profitability. Resistance of consumers to price rises in popular volume
products as well as discounts to clear slow-moving stocks and
underutilization of production capacity adversely affected the operational
results. The lockout declared at the Hanuman weaving factory on October
1, 2013 due to serious industrial relation problems and non-compliance
with the tripartite settlement has been withdrawn. The apparel
manufactured in this factory, which was shifted to the companys other
factories and associated manufacturers, will now be gradually produced
within the factory. The commencement of production from this factory will
help in re-cooping the minimal loss being suffered by the company.
FUTURE PLAN
The management says that it is not averse to outsourcing if it worked out
cheaper. It is also open to the idea of importing apparel - mostly from
China -
An attractive valuation compared to its peers is the main trigger for the
scrip. Besides, the companys aggressive focus on retailing and
revamping of business (a division into apparels and shoes) is also helping
sentiment for the scrip. Plans are apparel to start selling afoot in India
made by the joint venture North Star. Theres talk that the company is
planning on a voluntary retirement scheme (VRS) to cut costs.
Despite reducing its losses for the last quarter, Rostel India has, over the
last few quarters, been continuously recording weak performances as a
result of an overall slowdown in the industry due to lower consumer
spending. Increasing domestic competition, particularly from the
unorganized sector, has also been eroding into the companys market
share.
The company is finding it difficult to maintain its market share in a highly
price-sensitive Indian market, despite having strong brand recall.
97% of the companys revenues are from the domestic market while the
remainder is from exports. Rostel India is the growing player in the Indian
apparel market.
Rostel Indias major problems include its high cost of production and low
emphasis on marketing. The company may be able to address the first
problem through outsourcing products. Batas brand image has been
restricted to that of a company that emphasizes on utilitarian products
more than trendy ones. Customers feel the company is lacking in
innovation. Hence, their preference has shifted to other local brands.
Rostel India has a large marketing network with over 1,50 showrooms, 25
wholesale depots and eight retail distribution centres in the country.
Rostel India has also been trying to focus on aggressive marketing of its
product. The company has been going through a period of transition for
the past one year. With the expansion of the retail industry in New Delhi
and Mumbai, the company has recently decided to shift its marketing
operations to Delhi in order to provide value shopping for its customers.
However, the manufacturing activity and the registered office will continue
at Banglore.
It is to the companys credit that it has lately overhauled its marketing set-
up into a four-tier retail structure that will be stocked with products
matching the areas customer profile. A Rostel outlet in an up market
place will offer a distinctly different range of Apparel from another in the
suburbs.
At the same time, with the opening up of the economy, more and more
goods will be imported from China. This may significantly affect Rostel
Indias prospects unless it manages to wean away customers with a
drastic cut in costs. Alternatively, like other Indian manufacturers, even
Rostel may consider relocating its manufacturing bases in China.
However, it is not that easy a task to undertake.
4PS OF ROSTEL
Rostel 4Ps comprised of the following approaches to pricing, distribution,
advertising and promotion, and customer service:
Place: Rostel Apparel are distributed to Multi Brand store front and the
exclusive rostel stores in the countries.
RESEARCH METHODOLOGY
Research comprise defining and redefining problems, formulating
hypothesis or suggested solutions; collecting, organizing and evaluating
data; making deductions and reaching conclusions; and at last carefully
testing the conclusions to determine whether they fit the formulating
Hypothesis.
In short, the search for Knowledge through Objective and Systematic
method of finding solutions to a problem is Research.
RESEARCH OBJECTIVES
RESEARCH DESIGN
DATA SOURCES
There are two types of data. Source of primary data for the present study
is collected through questionnaire and answered by consumers of
apparel. The secondary data is collected from journals, books and
through Internet search.
PRIMARY DATA
The data that is collected first hand by someone specifically for the
purpose of facilitating the study is known as primary data. So in this
research the data is collected from respondents through questionnaire.
SECONDARY DATA
For the company information I had used secondary data like brochures,
web site of the company etc. The Method used by me is Survey Method
as the research done is Descriptive Research.
RESEARCH INSTRUMENTS
Selected instrument for Data Collection for Online survey is
Questionnaire.
DICHOTOMOUS QUESTIONS
Which has only two answers Yes or No?
IMPORTANCE SCALE
A scale that rates the importance of some attribute.
RATING SCALE
A scale that rates some attribute like from highly satisfied to highly
unsatisfied or very inefficient to very efficient
SAMPLING UNIT
Who is to be surveyed? The marketing researcher must define the target
population that will be sampled.
SAMPLE SIZE
Consumers of Rostel Apparel, 50 nos
LIMITATIONS OF RESEARCH
Due to limited time period and constrained working hours for most of
the respondents, the answers at times were vague enough to be
ignored.
FINDINGS
AGE
15-20 33 66%
20-25 13 26%
25-30 4 8%
GENDER
Male 35 70%
Female 15 30%
Q1. Are you brand conscious of Apparel?
Yes 37 74%
No 13 26%
Q2. If you are going to buy Apparel, which brand would you like to
choose?
Nike 20 40%
Adidas 8 16%
Puma 11 22%
Reebok 6 12%
Other 5 10%
Q3. Which is the most important element when you select Apparel?
Brand 28 21%
Quality 33 25%
Price 19 14%
Packaging 2 1%
Comfort 40 30%
Personality 10 7%
Other 2 1%
Q4. Are you brand loyal to any brand below in terms of Apparel in
the sportswear industry?
Nike 15 30%
Adidas 5 10%
Puma 8 16%
Reebok 4 8%
Regularly switch to other brands 13 26%
Other 5 10%
Q5. What are the main factors if you switch to buy the T-shirts of
another brand?
Quality 44 48%
Price 25 27%
Innovation 14 15%
Advertisement 6 7%
Other 2 2%
Yes 16 32%
No 34 68%
Q7. While buying, do you consider environment friendliness in T-
shirts?
Yes 15 30%
No 35 70%
Yes 22 44%
No 28 56%
Q10. If you are going to buy a customized T-shirts, which brand will
you choose?
Nike 26 52%
Adidas 7 14%
Puma 9 18%
Reebok 6 12%
Other 2 4%
Below are some statements of peoples buying behaviour towards
the apparel. Please check the one box that best indicates how well
the statement describes you personally.
4. I like to buy apparel which are very stylish & of latest design
Strongly Agree 16 32%
Agree 22 44%
Indifferent 8 16%
Disagree 4 8%
Strongly Disagree 0 0%
5. I dont like to spend too much time on deciding my apparel
Strongly Agree 8 16%
Agree 22 44%
Indifferent 7 14%
Disagree 8 16%
Strongly Disagree 5 10%
Price
1 3 6%
2 9 18%
3 19 38%
4 19 38%
5 0 0%
Quality
1 3 6%
2 0 0%
3 9 18%
4 22 44%
5 16 32%
Design
1 3 6%
2 7 14%
3 9 18%
4 22 44%
5 9 18%
Comfort
1 4 8%
2 2 4%
3 9 18%
4 19 38%
5 16 32%
Packaging
1 2 4%
2 7 14%
3 16 32%
4 16 32%
5 9 18%
Personality
1 2 4%
2 2 4%
3 11 22%
4 18 36%
5 17 34%
Innovation
1 4 8%
2 6 12%
3 10 20%
4 20 40%
5 10 20%
Advertisement
1 7 14%
2 4 8%
3 13 26%
4 15 30%
5 11 22%
ANALYSIS AND RECCOMENDATIONS
74% of the people are brand conscious while purchasing apparel for
themselves, whereas 26% do not consider brand name as a
deciding factor for buying shoes.
The deciding factors for buying Apparel for people are mainly
comfort, quality and brand name, whereas, packaging and
personality do not matter to people.
WEAKNESSES
The organization does have a diversified range of sports products.
However, the income of the business is still heavily dependent upon
its share of the Apparel market. This may leave it vulnerable if for
any reason its market share erodes.
The retail sector is very price sensitive. Rostel does have its own
retailer in Rostel Town. However, most of its income is derived from
selling into retailers. Retailers tend to offer a very similar experience
to the consumer. Can you tell one sports retailer from another? So
margins tend to get squeezed as retailers try to pass some of the
low price competition pressure onto Rostel.
OPPORTUNITIES
THREATS
Rostel is exposed to the international nature of trade. It buys and
sells in different currencies and so costs and margins are not stable
over long periods of time. Such an exposure could mean that Rostel
may be manufacturing and/or selling at a loss. This is an issue that
faces all global brands.
ANNEXURE
Questionnaire on Rostel apparel
Name
Age
15-20
20-25
25-30
Gender
Male
Female
No
Q2. If you are going to buy a T-shirts, which brand would you like to
choose?
Nike
Adidas
Puma
Rostel
Other:
Q3. Which is the most important element when you select apparel?
Brand
Quality
Price
Packaging
Comfort
Personality
Other:
Q4. Are you brand loyal to any brand below in terms of apparel in the
sportswear industry?
Nike
Adidas
Puma
Rostel
Other:
Q5. What are the main factors if you switch to buy the apparel of another
brand?
Quality
Price
Innovation
Advertisement
Other:
Q6. Have you bought any apparel influenced by any ways of marketing or
branding programs?
Yes
No
No
No
No
Q10. If you are going to buy a pair of customized apparel, which brand
will you choose?
Nike
Adidas
Puma
Rostel
Other:
Below are some statements of peoples buying behaviour towards the
apparel. Please check the one box that best indicates how well the
statement describes you personally.
Strongly Strongly
Agree Indifferent Disagree
Agree Disagree
1. I like to buy
costly T-shirts
2. I prefer to buy
garments which
are liked by my
family and friends
3. I prefer to buy
garments which
are advertised
and endorsed by
celebrity
4. I like to buy
Garments which
are very stylish &
of latest design
5. I dont like to
spend too much
time on deciding
my garments
6. Apparel
companies
should suggest
st-shirts,track suit
design using
celebrity
Strongly Strongly
Agree Indifferent Disagree
Agree Disagree
7. Stores display
is the best form of
advertisement
8. T.V
advertisement is
the best form of
advertisement
9. Buying
customized t-
shirts by internet
is very attractive
_ first signing a high profile endorser can help reassure consumers about
the true quality of a product.
_ second , enlisting an endorser can help a firm break through the clutter of
the market place by helping the brand differentiate itself from its
competitors.