A Project Report

On

Consumers
Perception
Regarding Branded
and Unbranded
shoes in the region
of Patiala
Submitted to
Punjabi University Patiala
In Partial Fulfillment of Degree of
Master of Business Administration

SUBMITTED TO:: SUBMITTED

BY:
Er. S. S. Virdi Rahul Bansal
MBA(11)
Roll no.3850

1
 PUNJAB SCHOOL OF MANAGEMENT STUDIES
PUNJABI UNIVERSITY
PATIALA

CERTIFICATE

This is certified that RAHUL BANSAL of MBA (MARKETING), PUNJAB

SCHOOL OF MANAGEMENT STUDIES PUNJABI UNIVERSITY

(CAMPUS) PATIALA has undertaken project entitled “

Consumer perception regarding branded and unbranded shoes”

is a bonafide piece of work carried out under guidance and supervision.

This is an original piece and no part of this work has been submitted for

any other degree. The assistance and guidance received during

completion of project have been fully acknowledged.

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 PROJECT GUIDANCE
Er. Sandeep.S.Virdi

ACKNOWLEDGMENT

As I write this acknowledgement, I must clarify that this is not just a

formal acknowledgement but also a sincere note of thanks and
regard from my side. I feel a deep sense of gratitude and affection for
those who were associated with the project and without whose
cooperation and guidance this project could not have been conducted
properly.
With deep sense of gratitude I would like to take this opportunity to
thank my honorable project guide Er. Sandeep. S. Virdi. I grateful to
him for his co-operation and his invaluable and unstinted support. He
has always given me the confidence to do hard work. Without his
guidance, this project report would not be accomplished.
I would also like to thank them for giving me opportunity to
work on this project. I would like to give my appreciation to friends for
their constant encouragements and support accompanied me through
the project work.
Last but not the least I like to thank my parents, my
friends their support throughout the making of this report. A note of

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thanks to my colleagues who have always encouraged, motivated
and given expert guidance to me.

(RAHUL BANSAL)

Table of Contents

Acknowledgement
Objectives
Limitations
Introduction
• Brand
• The emergence of brand
• How brands grow
• Characteristics of a good brand
Brand management
• Branding in shoes
• Branding

Indian footwear industry

• Import
• Export

Economies of world

Research methodology

• Scope of the study

• Research design

Data analysis and interpretation

Findings and conclusion

Recommendations
Bibliography
Annexure

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 CHAPTER-1

OBJECTIVES
AND
LIMITATIONS
OF
THE STUDY

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 OBJECTIVES OF THE STUDY

 To determine & evaluate the factors that influence the customer’s

perception while purchasing a particular product brand.

 To evaluate the customers' Brand loyalty for a particular brand of the

product

 To examine the factors influencing the purchase decisions of the

customers.

 To discern the most popular sales promotion methods of branded

shoes.

 To delve on the reasons for Brand switching in the branded shoes

category.

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 LIMITATIONS OF THE STUDY

Although sincere efforts are done by me to collect the authentic and relevant

information, the study may have the following limitations: The findings of this

study are based on the subjective opinion of the respondents. Although utmost

care would be taken to obtain accurate results yet because of misinterpretation,

biasness on the part of the respondents, some elements of inaccuracy may

crepe in. Hence it cannot be claimed that the present study is without any

limitation as is the case with any other study. Further lack of time and financial

resources has prevent me from carrying out an in depth study .In addition to it

some limitations regarding the scope of the validity of the conclusion may also be

mentioned.

1 ) The present study is confined to Jalandhar city only. The findings of the study

may not be applicable to the other parts of the country because of social,

economical and cultural differences.

2) The consumer behavior being dynamic in nature, there is very possibility that

over the time findings of today may become invalid tomorrow.

3) As described earlier, the study can't be generalized for all type of buyers.

Since the universe under study in my researches Jalandhar city and the

consumers in this region can't be called the representative of all the all the

consumers spread all over the universe.

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 CHAPTER-2

INTRODUCTION

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Consumers Perception
Regarding Branded
and Unbranded Shoes
in the region of Patiala

INTRODUCTION

Brand:- A Brand is name of a product/service which differntiate itself from its

competitors.A brand is a customer experience represented by a collection of

images and ideas; often, it refers to a symbol such as a name, logo, slogan, and

design scheme. Brand recognition and other reactions are created by the

accumulation of experiences with the specific product or service, both directly

relating to its use, and through the influence of advertising, design, and media

commentary. A brand is a symbolic embodiment of all the information connected

to a company, product or service. A brand serves to create associations and

expectations among products made by a producer. A brand often includes an

explicit logo, fonts, color schemes, symbols, sound which may be developed to

represent implicit values, ideas, and even personality.

As diverse individuals we all have an inborn tendency to see the world in our own

special ways. Each and every individual can view the same event at the same

time in different manner from all the other persons for each individuals his

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reaction towards a particular based on his needs, wants, values and desire and

his past experience.

The way an individual reacts in a particular situation or an event is merely what

that individual perceives about that situation. Hence individual reacts on the basis

of their "perception" .in other words we can say that the purchase behavior of the

individual is the result of his perception. Since the consumer purchase decision

depends upon large extent of his perception, so it is important that the marketers

understand the whole concept of the perception„so that they can determine the

factors that influence the consumer purchase decision.

To form the perception about a particular brand the consumer has to pass

through many phases, which can be highlighted as:

a) Perceptual selection

b) Perceptual organization

c) Perceptual interpretation

The individual may perceive many stimuli but is highly selective in nature how the

consumer perceives a stimulus depends to a large extent on the nature of the

stimulus, which includes the productive nature, physical appearance, brand

name, level of advertisement and feature associated with the product. This study

accounts for all the factors while evaluating the consumer perception to words

the branded Vs unbranded shoes.

The consumer has emerged as the king of the market, no doubt but to go for

branded products is still I he hands of consumer. The branded products, in

general are also not far from their branded counterparts in terms of availability,

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quality and technology, but does the formality prove to be the only criteria for

consumer perception for a particular duct. The making of these unbranded

products in the market has posed many question, as, will sweep the branded

product market off there feet?

How these unbranded products are going to change the perception of branded

products, the branded product companies are going to formulate better strategies

to remain and to have a better edge in the market.

So we first start with getting families with word "BRAND", a brand is defined as a

name term, sign, or special design of some combinations of the elements that is

intended to identify the goods or service s of one seller or group of seller. A

brand differences these products from those competitors. and is a seller to

deliver to a specific set of benefits or attributes or ice to the buyer. Brand name is

that part of a brand, which can be vocalized - the utter able examples are

valvolin, American express, cola.

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 1.1 The Emergence of Brands

Historically, most products went unbranded. Producers and middleman their

gods directly out of barrels, bins, and cases without any supplier identification

.the earliest signs of branding were in the efforts of medieval guides craftsman to

put trade marks quality .in the arts, too, branding in with artist singing their

works.

In the United States the earliest brand promoters were the it medicine. Branding's

real growth occurred after civil war with growth of national firms and national

advertising media. Some of the early Is still survive, such as oats, Vaseline and

ivory soap.

Branding has grown so strong that today hardly anything goes unbranded. Salt is

packed in distinctive manufacturer's containers, oranges are stamped with

grower's names, common nuts and bolts are packed in cellophones.

With a distributor's label, and automobile components-spark plugs, tires, filters

bear separate brand names from the auto makers. If the first purpose of branding

was to legal protection by the inventor's appetent , and the second was to

guaranty quality and homogeneity after to seller and buyers had lost face to face

contact, a third purpose stems directly for oligopolies need to differentiate their

products. They quite rightly see branding as a device to enable them to control

their , better preventing other people's products from being substituted for theirs.

It is likely that oligopolists have ever felt the need to rationalize these purpose;

their responses are quite instinctive in most case. it seems in the make up of

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more successful marketing men and women there is. The innate knowledge that

branding is the key to protection and an important contributor to growth.

Generally oligopolist will compete on price normally by means of active and

continuous price promotions. But competitors among them are not confined to

price. The strengths of oligopolist's brands and, in particular, the added values

that enrich them move the field of competition from reduction to product and

brand improvement, originates in the later tending to the need for the former.

Margins are at least maintained, but not all put into profit, because building

brands a great deal of many. Various brands of a certain article while if fact are

most exactly alike may sold as different qualities under names and labels.

Which will induce rich and snobbish buyers to divide themselves from buyers.

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 1.2 How Brands Grow

First Brands penetration is the consumer measure that has the greatest

influences on a brand's sale; big brands always have a higher penetration than

smaller brands.

Second in the discussion of frequency distribution, the point was made that of

stationary markets conditions slightly underestimate the amount purchasing by

brand trialist. The percentage of movement need marginal to represent

substitution numbers in absolute terms. These how stationary markets become a

little less stationary? But would the emergence of one-time trialists use the

normal pattern of skewed frequency distribution? In practice, there Establishment

of the normal frequency distributions More likely to be achieved with a growth in

brand by the trailists remaining infrequent purchase; but with some of the former

infrequent purchases becoming more frequent purchases. Everybody moves up

a rung. Some non-users become minor users; thus the same normal frequency

distribution will now hold form the higher level of penetration. When a brand

declining, the opposite happens. Some major users become minor user. and

some minor users become non-users. The brand eventually

settles down to the same frequency distribution pattern at a lower of penetration.

British analysts TOM CORLET first worked at this hypothesis to explain

growth and dealing in consumer term; it according with a common sense. The

powerful tendencies towered equilibrium. Regularly in markets give a brand an

inbuilt momentum once it crosses that first and most difficult hurdle of

early establishment of penetration and repeat purchase. Once a brand becomes

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a “goer” the tendency toward regularity is as much in its favor as it was an

obstacle to be overcome during its initial market entry.

1.3 Characteristics of a Good Brand name

A good brand name should posses a many of the following characteristics as

possible. They are

 It should be distinctive: the market is filled with over worked names

and over used symbol. A unique and distinctive symbol is not only easy to

remember but also a distinguishing feature, e.g. north star shoes have a

distinctive name.

 It should be suggestive a well -chosen name or symbol should be

suggestive of quality or may be associated with superiority or a great

personality e.g vicco toothpaste is suggestive of an assurance of

good health.

 It should be appropriate: May products are surrounded by a certain

mystique in the mind of consumers.

 It should be easy to remember: the product brand should be easy to

pronounce and spell, e.g. surf coca cola

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 The top ten traits of a brand

Building and properly managing brand equity as become a priority for the

companies of all sizes, in all types of markets and in all types of industries.

The rewards of strong brands are clear. The ten characteristics that a worlds

strongest brands share and construct a brand report card a systematic way of

grade the brands performance of each of those characteristics. The report card

can help to identify are as that need improvement, recognize areas in which the

brand is strong and learn more about the particular brand is configured.

 The brand excels at delivering the benefits the customers truly

desires. Why do customers really buy a product? Not because the product

is a collection of a attributes but become those attributes, together with the

brand image the service and man) others tangible And intangible factors

create and attractive whole. In som3 cases whole is not even something

that costumers know or can say they want.

 The brand stays relevant and strong. In strong brands brand equities tide

both to the actual quality of the product or the service and the various

intangible factors. Those intangible includes" user imaginary" (the type of

person who uses the brand). Usage imagery, the type of situation in which

the brand is used; the personality the brand portrays, the feeling that it

build with its customer. Without losing sight of their core strengths, the

strongest brands stay on the leading edge in the product arena and

tweak their intangible to fit the times. Gillette, for example pours millions

of dollars into R & D to ensure that its razor blades are as technologically

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 advanced as possible, calling attention of major advances, through sub

brands and signaling minor improvements with modifiers. At the same

time Gillette has created a consistent, intangible sense of product

superiority with its long running at "the best the man can be" which are

through images of men at work and at play that have evolved over time

to reflect contemporary trends. These days images can be quacked in

many ways other than through traditional advertising , logos ,or

slogans. "Relevance" has a deeper, broader, meaning in today’s market.

Increasingly consumers' perception of a company as a whole and its role

in society affect a brand's strength as well. Witness corporate brands that

very visible support breast cancer research or current educational

programs of one sort or other.

 The pricing strategy is based on consumer's perception of values, the right

blend of product quality, design feature , costs and prices is very difficult

to achieve but well worth the effort .Many managers are woefully

unaware of how price can and should relate to but the customers think

of a product and they therefore charge too little or too much.

For e.g. in implementing its value pricing strategy for the cascade automatic

dish washing Detergent brand, Procter and gamble made a cost cutting edge

in its formulations that had an adverse on the product performance under

certain albeit somewhat typical water conditions. Lever brothers quickly

countered, attacking cascade's core

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Equity producing "virtually spotless" dishes out off dishwasher. In

response, P & G immediately returned to the brand old formulation the lesson

to P&G and others is that value pricing should not adopt at the expense of

Essential brand building activities - by contrast with its well - known shift to

"everybody low pricing “strategy, P&G did successfully align its prices with

consumer perception of its product's value while maintaining acceptable profit

levels. In fact, in the fiscal year after P&G switched to ELDP (during which it

also worked very hard to streamline operations and lower cost), the

company reported its highest profit margin in 21 years.

 The brand is properly positioned. Brands that are well positioned occupy

particular niches in consumer's minds. They are similar to and different

from competing brands in certain reliable identifiable ways. The most

successfully brands in this regard keep up with competitors by creating

points of parity in those area s where competitors are trying to find an

advantage while at the same time creating points of difference to

achieve advantage over competitors in some other areas The Mecede-

benz and Sony brands, for example, hold clear advantage in product

superiority and match competitors level of. service. Visa is particular

good example of brand whose manager understands the positioning game

in the 1970s and 1980s; American express maintained the high profile in

the credit card market through a series of highly effective marketing

programs. Trumpeting that "members has its privileges " American

express came to signify status, prestige and quality in response VISA

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 introduced the platinum and gold cards and launched an aggressive

marketing campaign to build up the status of its cards to match the

American express cards. It also developed an extensive merchant delivery

system to differentiate itself on the basis of superior convenience and

accessibility. Its ad campaigns showcased desirable locations such as a

famous restaurants, resorts and events that did accept American express

while proclaiming, "visa its every where you want to be”. The aspiration

message cleverly reinforced both accessibility and prestige and helped

visa take out formidable position for the brand. Visa become the consumer

card of choice for family and personal shopping, for personal shopping, for

personal travel and entertainment and even for international travel, a

former American express stronghold. Of course branding isn't static and

the game is even more difficult when a brand spans that product

categories. The mix of points of difference that works for a brand is one

category may not be quite right for the same brand in another.

 The brand is consistent. Maintaining a strong brand means stringing the

right balance between continuity in marketing activities and the kind of

change needed to stay relevant. Continuity that the brand's image doesn't

get muddled or lost in a cacophony of marketing efforts that confuse

customers by sending conflicting message.

The brand portfolio and hierarchy make sense. Most companies do not have only

one brand they create and maintain different brands for different market

segments. Single product lines are often sold under different brand names, and

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different brand with in accompany hold different powers. The corporate, or

company wide brand acts as an umbrella. A second brand name under

might nest one level below the family branded and appeals to boys for example,

or be used for one type of product. Brands at each level Of hierarchy contribute

to the overall equity of the portfolio tough their individual ability to make

consumers aware of the various products and Foster favorable associations with

them. At the same time, through each brand should have its own boundaries: it

can be dangerous to try to COVOT too much ground with one brand or to overlap

two brands in the same portfolio. The gap's brand portfolio provides maximum

market coverage with minimal overlap. Each brand has a distinct image

and its own source of equity. BMW has particularly well-designed and

implemented.

hierarchy. At the corporate level, BMW pioneered the luxury sports categories is

combining seemingly incongruent style and performance consideration. BMW,

clever advertising slogans." The ultimate driving machine" reinforces the dual

aspect of this image and is applicable to all cars sold under the BMW name. At

the same time , BMW created well differentiated sub Brand portfolio provides

maximum market coverage with minimal overlap. Each brand has a distinct

image and its own source of equity. BMW has particularly well-designed and

implemented hierarchy. At the corporate level, BMW pioneered the luxury spots

sedan category be combining seemingly incongruent style and performance

considerations.

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V's cleaver advertising slogan. "The ultimate driving machine". Reinforces the

dual aspects of this image and are applicable to all cars sold under the BMW

name. At the same time, BMW created well differentiated sub brands through its

3,5 and 7 series, which suggest a logical order and hierarchy of quality and

price. General Motors, by contrast, still struggles with its brand portfolio and

hierarchy .In the early 1920s. Alfred P.SIoan decreed that his company would

offer "a car for every purse and purpose." This philosophy led to the creation of

the Cadillac, Chevrolet etc. divisions. The idea was that each division would

appeal to a unique market segment on the basis of price, product design and

user imaginary the FIVE GM division's distinctiveness diminished, in the mid

-1980s, for example; the companies sold a single body type (the j-body) modified

only slightly for the five different brand names. In fact advertisement for Cadillac

may come from other divisions, including Buick and-Olds mobile's."

In the last ten years the company has attempted to sharpen the on blurry images

by repositioning each brand, Chevrolet has been positioned as then value

priced, entry-level brand Saturn (car company) represents no haggle customer

oriented service. Pontiac is meant to be the sporty, performance-oriented brand

for young people. Oldsmobile is the brand for larger, medium price cars. But the

bottom and top lines have never regained the momentum stand for, in sharp

contrast to the clearly focused imaged of competitors like Honda and Toyota.

 The brand makes use of and coordinates a full repertoire of marketing

activities to built equity. At its most basic level, a brand is made up of all

the marketing elements that can be trade marked-loges, symbol,

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 slogans packaging signage and so on. Strong brands mix and match

these elements to perform a number brand related functions such as

enhancing or reinforcing consumer awareness of the brand or its image

and helping protect the brand both competitively and legally.

Manager of strong brand also appreciate the specific rule that different marketing

activities can play in building brand quality. They can for example provide

detailed product information. They can show how and why is an product is

used, by whom, where and when they can associate brand with

brand with a person, place or enhance or refine its image when aboard makes

goods use of all resources and also takes particular care to ensure that the

essence of the brand is the same in all activities, it I shard to beat,

 The brand manger understand what the brand means to the customer.

Manager of the brand appreciate the totally of their brands image i.e., all

the different perception, benefits attitude and behavior customer

associate with their brand, whether created intentionally by the

company or not. As a result, managers are able to make decision

regarding the brand, and what core associations are liked to the brand,

and then it should be also be clear whether any given action would

dovetails nicely wit brand or create friction.

 The brand is given proper support, and that support sustained over the

long run. Brand equity must be clearly constructed. A firm requires that

consumers have the proper depth and breadth of awareness and

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 Strong, favorable, and unique associations with brand, in their memory

.Too often mangers but to take short cuts bypass more basic branded

consideration such as achieving the necessary levels of brand

awareness in favor of concentrating on flashier aspect of brand building

related to image.

 The company monitors source of brand equity. Strong brands makes good

and frequent use of in depth brand of audits and on going brand stacking

studies. A brand is an exercise design to assess the health of a given

brand. Typically it consist of a detailed internal description of exactly how

the brand has been marketed (called brand inventory) and a thorough

external investigation, through focus groups and other consumer research

of exactly what brand does and could mean to consumer. Brand audits are

particularly useful when they are schedule on a periodic basis .its critical

for holding the reins of brand portfolio to get a clear picture of products

and services being offered and how they are being marketed and

branded. It is also important to see that same picture looks to consumer

tapping consumer perception and believes and often uncover the true

meaning of brand, group of brands revealing where corporate and

consumer use conflict and thus showing manager exactly where they

have refine or redirect their branding efforts or their marketing goals.

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 Brand management

Brand management is the application of marketing techniques to a specific

product, product line, or brand. It seeks to increase the product's perceived value

to the customer and thereby increase brand franchise and brand equity.

Marketers see a brand as an implied promise that the level of quality people have

come to expect from a brand will continue with present and future purchases of

the same product. This may increase sales by making a comparison with

competing products more favorable. It may also enable the manufacturer to

charge more for the product. The value of the brand is determined by the amount

of profit it generates for the manufacturer. This results from a combination of

increased sales and increased price.

The annual list of the world’s most valuable brands, published by Interbrand and

Business Week, indicates that the market value of companies often consists

largely of brand equity. Research by McKinsey & Company, a global consulting

firm, in 2000 suggested that strong, well-leveraged brands produce higher

returns to shareholders than weaker, narrower brands. Taken together, this

means that brands seriously impact shareholder value, which ultimately makes

branding a CEO responsibility.

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 Branding in shoes

Brand name in shoes is highly recognizable by customers because the brands

spend millions of dollars marketing themselves. Non branded shoes, basically

shoes by smaller labels or imported from overseas, have no name recognition.

But the flip side is that non branded shoes can be purchased and resold for allot

less than branded shoes.

Lower income customers might want brand name shoes but they cannot afford it.

So even though they would love to have brand name shoes they will usually

settle for non branded shoes.

On the other hand more affluent customers will want only branded shoes

because they have more pressure in terms of keeping up with the latest styles.

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 1.6. What is Branding ?

Branding is a process by which a marketer tries to build long-term relationship

with the customer by learning their needs and wants so that the offering could

satisfy their mutual aspirations. Branding is a major issue in product strategy.

Perhaps the most distinctive skills of professional marketers is their ability to

create, maintain and enhance brands. Thus a brand identifies the seller or

maker. It can be a trademark a logo and name. Brands differ from other assets

such as patents and copyrights, which have expiration dates. A brand is

essentially a sellers promise to deliver a specific set of features and services

consistently to the buyers. The best brand conveys a warranty of quality.

A brand is a name, symbol, sign, or a combination for them intended to identify

the goods or services of one seller and to differentiate them from those of

competitors. The most enduring meaning of brand are it values, culture and

personality.

Branding can view as a tool to position a product or a service with a consistent

image of quality and value for money to ensure the development of a recurring

preference by the consumer.

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 Indian Footwear Industry

The Footwear Industry is a significant segment of the Leather Industry in India.

India ranks second among the footwear producing countries next to China. The

industry is labour intensive and is concentrated in the small and cottage industry

sectors. While leather shoes and uppers are concentrated in large scale units,

the sandals and Chappals are produced in the household and cottage sector.

India produces more of gents’ footwear while the world’s major production is in

ladies footwear. In the case of Chappals and sandals, use of non-leather material

is prevalent in the domestic market.The major production centers India are

Chennai, Ranipet, Ambur in Tamil Nadu, , Mumbai in Maharashtra, Kanpur in

U.P. , Jalandhar in Punjab, Agra and Delhi.

The following table indicates concentration of units in various parts of the

country:

Large & Medium

Region SSI Household
Scale

Tamil Nadu 64 31 7
Delhi & up North 4 8 2
Agra, Kanpur 9 34 14
Calcutta 1 3 19
Bangalore 6 3 4
Mumbai 3 11
Others 13 10 3

The estimated annual footwear production capacity in 1999 is nearly 1736 million
pairs (776 million pairs of leather footwear and 960 million pairs of non-leather
footwear).

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Region-wise share of total estimated capacities is as follows:

Leather Non-leather Leather Shoe Leather Non Leather

Region
Shoes Shoes Uppers Sandals Sandals

Percentage
Tamil Nadu 26 5 54 1 0
Delhi & up North 10 77 4 1 60
Agra, Kanpur 45 0 32 62 0
Calcutta 12 0 2 3 0
Bangalore 3 3 4 0 0
Mumbai 4 2 1 32 0
Others 0 13 3 1 40
Total 100 100 100 100 100

Shoes manufactured in India wear brand names like Florsheim, Gabor, Clarks,

Salamander and St. Micheal’s. As part of its effort to play a lead role in the global

trade, the Indian leather industry is focusing on key deliverables of innovative

design, consistently superior quality and unfailing delivery schedules.

India in itself has a huge domestic market, which is largely untapped.

The Indian footwear industry is provided with institutional infrastructure support

through premier institutions like Central Leather Research Institute, Chennai,

Footwear Design & Development Institute, Noida, National Institute of Fashion

Technology, New Delhi, etc in the areas of technological development, design

and product development and human resource development.

The availability of abundant raw material base, large domestic market and the

opportunity to cater to world markets makes India an attractive destination for

technology and investments.

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IMPORT

In 1999, the global import of footwear (leather and non-leather) in terms of value

was around US$ 43278 million, accounting a share of 63.42% in the total global

import of leather and leather products. Out of this, import of leather footwear

alone accounted for US$ 26379 million and non-leather footwear US$ 16899

million.

EXPORT

India’s export of Leather Footwear touched US$ 331 million in 1999-2000,

recording an increase of 3.29% over the preceding year. India thus holds a share

of 1.25% in the global import of leather footwear. The major markets for Indian

Leather Footwear are the U.K., the U.S.A., Germany, Italy, France and Russia.

Nearly 71% of India ‘s export of Leather Footwear is to Germany, the U.S.A., the

U.K and Italy.

In 1999-2000, export of leather footwear from India constituted 21% share of its

total export of leather and leather products. Nearly 33 million pairs of various

types of leather footwear were exported during the year, out of which shoes /

boots constituted 90%.

The different types of leather footwear exported from India are dress shoes,

casuals, moccasins, sport shoes, horrachies, sandals, ballerinas, booties.

Franchised Operation Triggering Growth in Indian Shoe Market

29
India has a booming shoe market. In various cities there, new shopping malls

have sprung up one after another and sellers compete to exhibit latest products

while consumers exhibit eager demand for brand products.

Many brands expand their businesses through franchised operation, particularly

garment and shoe brands. By 2010, franchised operation is expected to hit 6% in

growth rate, amounting to USD 17 billion in total value. This means that this

market will create substantial opportunities related to franchised operation.

India is witnessing a rapid growth in its retail, attracting many international

brands, most of which come from Europe and USA. After Tommy Hilfiger opened

up store in India recently, it is reported that Esprit is to enter this market in

summer 2005.

According to CY Pal, president of India Franchise Association, half of the retail

activities in USA is conducted in the form of franchised operation while only 2%

of the retail activities in India is associated with franchised operation. However,

franchised operation has been rapidly growing in India at the annual growth rate

of 30-40%, especially 4 or 5 years ago. According to Pal, research indicates that

the success rate for franchised operation is as high as 90% while that for non-

franchised operation is as low as 10%.

From Brand Store to Franchised Store

30
When entering Indian market, most international garment and shoe brands first

invest in opening up stores and then hand over these stores for their Indian

partners to operate. As Pal indicated, this is a typical solution for brand owners

and international brand owners in particular. The reason is that they have their

established image and they have to ensure their stores everywhere share the

same style. These stores are owned, managed and operated by brand owners

and become the model for other franchised stores. This solution also helps brand

owners to have a clear idea about market response and preference, and

provides useful information for them to identify the direction of establishing

franchised operation agreement in the future.

According to KrisIyer, executive president of Crossroads (the first shopping mall

in India), brand companies often open stores for their brands in major regions in

their country, and then open franchised stores elsewhere after successful

operation. Other international garment brands that have opened franchised

stores in India include Marks & Spencer, Ermenegildo Zegna, Mango, DAKS and

Hugo Boss but most of them have less than 5 stores in India.

According to insiders, almost all international garment and shoe brands are

gloating over the Indian market or negotiating with large textile and garment

companies there concerning franchising agreement. According to retail

consultant Bela Gupta, India is expected to have another 65-70 stores in the next

years, believing more international brands will enter Indian market in 2006.

31
With the entry of many large international brands into Indian market, India is

beginning to formulate specific laws and regulations concerning franchised

operation. To engage in franchised operation in India, franchised operators

should pay a sum of entry fee to franchisers, the amount of which may vary

depending on different brands. In addition, franchised operators should pay

royalties to franchisers on regular basis at the rate of 5-8% of their stores'

turnover, depending on their mutual agreements.

Franchisers often appoint general franchised operators in regions which their

brands intend to cover and general franchised operators may solicit franchised

operators in such regions and coordinate with franchised operators. Franchisers

only contact general franchised operators. With constant expansion in this

market, according to Pal, the organization of the entire sector will gain further

improvements.

ECONOMICS OF WORLD SHOE PRODUCTION TRENDS

Economics, Ethics, and the Impacts of the Global Economy:

32
 The Nike Example

The laws of economics are not written in tablets of stone, judging by the different

interpretation put on them by their practitioners, the economists. In the case of a

product such as foot wear, there are those that say it is a ‘low-tech’ product and,

as such, should be left to countries with low labor costs to produce. Just as water

flows to the lowest level, so should footwear production fall to the lowest cost

producer. This, to some degree, is theoretically correct. However, it ignores the

requirement for high skill content, fast response to market requirement, political

stability, availability of appropriate materials, infrastructure, marketing support,

design and branding.

So, the picture is not one-dimensional and is affected by all these factors. The

shoe industry has become truly global, with American styles popular in Europe,

Italian experts upgrading Chinese leather production, US suppliers participating

in Asian joint ventures, and firms from everywhere pursuing new markets such as

Russia and newly developing markets in the Far East. A look at the movement of

footwear in the last ten years will show that we cannot ignore the influence of

price and costs, for example, in 1996 the average wage rate in Western Europe

was around $7 per hour, in China, only $0.3 per hour.

There have been basic trends, which support this. For example, the governments

in China and Thailand are offering incentives to companies willing to relocate

from the towns to the countryside to help reduce labor and manufacturing costs.

33
The basic trends of the shoe industry have not necessarily been profound

influences on the economies of South East Asia, but, since late 1997, severe

economic problems have hit many Asian countries. This has caused currencies

to devolve greatly, made many major domestic banking problems and a created

great slow down in domestic markets, especially South Korea, Thailand and

Indonesia.

It is too early to know what the long-term effect will be – possibly the currency

devaluation could even strengthen exporting companies. In the short term,

however, some shoe companies are facing severe liquidity problems and

significant numbers of bankruptcies are expected.

Nevertheless, worldwide footwear production is rising at about 2% per annum,

exceeding 10 billion pairs in 1996. More people in the world are wearing footwear

and less developed countries are starting to produce shoes for their domestic

markets. Also people in the Far East are becoming more affluent and able to buy

better quality footwear.

NEW ASIAN TIGERS

34
Whilst South Korea and Taiwan have lost out, three new ‘Asian tigers’ have

arrived on the footwear scene with a vengeance, and being followed by another

recruit to the big league, offering lower wages and keen work forces. Whilst

Indonesia and Thailand have snapped up much of trainer business and

increasingly also casual and town shoes, China has flattened everything in sight

with an output of over 4,500 million pairs that represents one in every three pairs

of shoes produced in the world. At a tenth of world wide shoe production,

Thailand and Indonesia still have some way to go. Thailand at least, has

established itself as capable of producing the more technically demanding items,

whilst Indonesia enjoys cost advantage i.e. cheap labor. India is also becoming a

major shoe producer, although mainly domestic brands for an increasing

domestic market.

Vietnam relative new player already produces over 200 million pairs a year but

the major sports companies, especially Nike, are already there and are

expanding production in Vietnam. Now relations with the United States have

become less frosty, Vietnam is considered almost as a matter of course in the

deliberations of Western buyers when drawing up their sourcing lists.

Vietnam is certainly the new hot bed of production in the Pacific Basin – again

largely due to low regulations and lowest costs. South Koreas average monthly

wage rate in 1996 was $792, Vietnams was $45. Nike now constitutes over 5%

of total Vietnam exports. Those companies that have taken the plunge and

begun cooperation with firms in Vietnam have reported satisfaction with the

35
quality of the work and attitude of the workforce. Investment to the value of

US$100million has resulted from the joint venture partnerships in the last two to

three years. There are some 80 significant shoe producers with a work force of

80,000 people. The potential is quite extensive, with over 70 million people,

availability of local raw materials and the lowest labor costs in the Far East. The

lifting of the US embargo is significant and the next stage is for the introduction of

even more modern equipment.

Although there are more factories in the north, around Hanoi, the capacity is

virtually the same between north and south (Ho-Chi-Minh City area). The

Government is looking to triple exports in the next two or three years. Presently

over 100 million pairs are exported. Some companies such as Hiep in Ho-Chi-

Minh City have been privatized. Saigon Shoe is an example of a company that is

working with an international company (Bata Malaysia).

CHAPTER-3
36
 RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

37
Research methodology is a science of studying how research is done

scientifically. It is important for the researcher not only to know the technique but

also the methodology he uses. In this we will study

1. Scope of the study

2. Research design

(A) Sampling design

(B) Data design

1. Scope of the study

Project survey was conducted in Patiala. Respondents were chosen randomly

which included both the poor uneducated people, who cant afford the expensive

branded products and as well as the upper and the middle class educated

respondents who are well aware of the benefits of the branded products.

2. Research design

Decision regarding what, when, where, how much, by what means, concerning in

an enquiry constitute a research design. A research design is the arrangement of

conditions for collection and analysis of data in a manner that aims to combine

the relevance to the research purposes with economy in procedures.

The research type for this survey was exploratory because of the flexible nature

of the research design.

A) Sampling design

38
It is a definite plan for obtaining of sample from a given population. It refers to

the technique the researcher would adopt in selecting items from the sample.

B) Sample universe

A universe is all items in any field.

In this study the universe was taken as the people of Punjab.

And for the survey, Sample was taken from Patiala, considering that people of

Patiala are fairly good representatives of the state of Punjab.

Sampling technique

In the present study convenient random sampling technique was used.

Sampling size

No. of items selected from a universe constitute the sample size.

In my study sample size was of 100 respondents.

(B) Data design

Nature of data was both primary and secondary.

For primary data a structured non-disguised Questionnaire was used whereas for

secondary data magazines, journals and Internet were consulted

Sources of data

In the survey, data was collected by direct interviews, questionnaire and

Observation methods. Questions were of multiple choices, open- ended types.

39
 CHAPTER-4

DATA ANALYSIS

AND

INTERPRETATION

40
The meaning of word brand

The basic objective was to determine the perception of the consumer’s regarding
the word brand.
Consumer’s perception regarding word brand

Category % of Respondents
Trustworthy 16

Good quality 34

Value of money 30

Distinctiveness 8

Unique 12

12% 16%
8% Truthworthy
Good quality
Value of money
Distinctiveness
30% 34% Unique

The results show that majority of the respondents relate the word brand with
quality, value for money, a product of distinctive class, trustworthy, & unique.
Thus it in be concluded that the word brand has various meanings in the minds of
the respondents of which 34% feel that the word brand means god quality & 30
% feel it to be value for money, 16%feol it should be trustworthy, 12%
for uniqueness and 8 % for the distinctive class.

41
Is branding essential for product ?

The objective of the question was to judge the respondents response regarding
the importance of having a brand name.
Category % of Respondents
Yes 88

No 12

12%

Yes
No

88%

Importance of brand names

The above data interprets that about 88%of the respondents feel that branding is

essential for the product with the priority reasons being easy to identify.

This shows that the established brands have more scope in the market rather

than the non-branded shoes. Branding gives the marketer the opportunity to

attract the loyal & profitable segment of the customer. Loyalty created overtime

offer the unique advantage of having assured customer against competition and

greater control in their market programme.

Factors due to which branding in essential for product

42
The objective behind this question was to analyze the perception of the
respondents regarding branding.
Category % of Percentage
Easy to identify 42

Associate with user 18

Support buying process 40

40% 42%
Easy to identify
Associate w ith user
Support buying process

18%

Perception regarding branded and unbranded

From the above data we can interpret that majority of the respondents(42%) feel
that brand should be easily recognizable.
Only 18 % respondents think that brand associate it with the user . So these are
the important factors to be considered while branding.

43
Importance of manufacturing in choosing the product

The objective question was to judge the level of the agreement regarding the
importance of the manufactures.
Category % of Respondents
Strongly agree 46

Agree 16

Neutral 14

Strongly disagree 4

Disagree 20

20%
Strongly agree
4% 46% Agree
Neutral
Strongly disagree
14%
Disagree
16%

Importance of manufactures

The above results show that 46%of the respondents strongly agree that the
knowledge regarding the manufacturer, the goodwill attached with the company
is essential only 20% respondents strongly disagree that to know about the
manufactures is not necessary, rest 14% respondents were neutral about this
questions.

44
The brand use by the people

The objective of this question was to know about the respondent’s preference
regarding brands.
Category % of Respondents
Branded 87

Unbranded 9

9%

Branded
Unbranded

91%

Perception regarding shoes

The data given above shows that most of the respondents prefer good quality

shoes majority of the a respondents 87% prefer to take the branded one and

only 9% were preferring the unbranded.

45
Reasons of using the particular brand

Objective of asking this question was to know the reasons for using particular
brands by the respondents.
Category % of Respondents
Easily affordable 54

Easily available 46

46%
Easily affordable
Easily available
54%

Reason for using this particular brand

The above data shows that majority for the respondents used the specific brand

i.e. 54 % , 46 % respondents used this brand because it is easily affordable .

The factors which influence to opt for particular brand

46
The objectives of this question was to analyze the factors considered by the
respondents while exercising the purchase of the product.
Category % of Respondents
Price 13

Ease of purchase 16

Quality 17

Brand name 11

Status symbol 16

Goodwill of comp. 11

Advertising 7

Price
9% 13%
7% Ease of purchase
11% 16% Quality
Brand name
Status symbol
Goodw ill of comp.
16% Advertising
17%
11%
Warranty/Guarantee

Important Factors of branded

Using the weighted average method it has interpreted that best rank was given to
the quality and then status symbol ease of purchase of and the ease of purchase product
were rated best. Other factors like warranty/ guaranty got the least rank as in unbranded
shoes there is very less warranty/ guarantee. Factors like price, advertising and brand
name too got significant response but the quality was the factor, which got the maximum
weight age in ranking ·
The factors influencing the purchase decision of customers

47
The question was to know about who influence the most in the circle of the
respondents purchase decision while exercising purchase.
Category % of Respondents
Self judgment 21

Family members 39

Friends 22

Dealers 8

Neighbour 10

10% 21%
8%
Self judgment
Family members
Friends
Dealers
22%
Neighbour
39%

Influence on purchase decision

The data shows that family members influences the most i.e. 39%. so the
companies should concentrate more on the family culture and values while
making the marketing and advertising strategies. Rest friends and self-judgments
22 % and 21 % respectively are too playing more important roles as compared to
dealers and neighbors, which only compute influence to decision only 8% and 10
% respectively.

48
The methods used for sales promotion

The objectives of this question was to know which according to them was the
most effective sales promotion method.
Category % of Respondents
Gifts 30

Coupons 15

Cash Refund Schemes 8

Exchange offers 9

Discounts 38

30%
38% Gifts
Coupons
Cash Refund Schemes
Exchange offers
Discounts
9% 15%
8%

Effective sale promotion method

The above data shows that 38% of the consumers think that discounts are the
best way o attract the consumers and it is the bets mode of sales promotion,
while 30% consumers believe that free gifts along with the products is the most
effective sales promotion method, also 15% people say that scratch coupons is
the best way to promote the product while only 9% and 8% people are in the
favor of exchange offers and cash refund scheme.

Given a choice would you switch over from your current brand to
another one

49
The objective of this question was to know the repurchase behaviour and
decision of the respondents.
Category % of Respondents
Yes 13

No 87

13%

Yes
No

87%

Repurchase Behaviour

The above data shows that most of the consumers (87%) will not prefer the same
brand, which they are using at present. The main reason being that they just
want to try anew brand. This means that the consumers of today are innovators
i.e. they want to try the latest product with a difference and to have enjoy the new
product.

50
The reasons for switching to another brand

Here the main objective to ask this question was to know the possible reasons or
brand switching.
Category % age of

Respondents
Impressed by feature of new brand 9

Desire to try new 61

Non available 4

Dissatisfaction 10

Friends experience with new brand 7

Free discount on other brand 3

Less price of other brand 6

Impressed by feature of new

brand
Desire to try new
6% 9%
7% 3%
Non available
10%
Dissatisfaction

4% Friends experience with new

brand
61% Free discount on other brand

Less price of other brand

Reasons for brand switching

The above data highlights that most of the respondents just shifted from one
brand to other just to try the new brand (61%), rest only 10%respondents feel
dissatisfaction with the old brand so they shifted to new brand .other reasons like
friends experience and discounts on other brands counted very less. Factors like
non-availability and less price were very few respondents who shifted because of
these reasons.

The other options if retailer runs out of particular brand

51
The objectives this question was to know what according to them will do it the
dealer run an out of the stock.
Category % age of Respondents
Ask for some other brand 24

Search some where else 22

Do without it 18

Wait for the dealer to get it 36

back

24%
36% Ask f or some other brand

Search some w here else

Do w ithout it
22%
Wait for the dealer to get it
18%
back

Brand loyality

From the above data it can be concluded that 36% of the respondents will wait
for the dealer to get for the stock, this shows that they are also brand loyal as
they did not changed there mind instantly to get other brand .24%of the
respondents are those people who are brand switchers and who will ask for
another if the old one is not available.

AGE GROUP of respondents

Category No. of respodents

>20 8

52
 21-30 81

<30 11

11 8

>20
21-30
<30

81

Interpretation:-From the above data it may be concluded that 8% respondents

were less than 20 years, 81 % between 21 and 30 years while the remaining 11

% were greater than 30 years.

Occupation of respondents

Category Respondents

53
 Student 79

Businessman 12

Service man 9

9
12
student
businessman
service man

79

Interpretation:-Out of 100 people surveyed, 79 were students, 12 respondents were

businessman, while the remaining 9 were serviceman.

Family income level of respondents

Category Respondents
>10000 7

54
 10001-20000 16

20001-30000 24

<30000 53

7
16

>10000
10001-20000
20001-30000
53 <30000

24

Interpretation:-From the above data it may be concluded that 7 people were

belonging to the family having income less than 10000, 16 were belonging to the

income group of 10000 to 20000, 24 were belonging to the income group 20000

to 30000 and the remaining 53 were belonging to the income group having more

than 30000.

CHAPTER-5

55
 FINDINGS

AND

CONCLUSION

FINDINGS & CONCLUSION

56
Following are the major findings & conclusions from the study of the consumer

perception of branded and unbranded shoes.

 Majority of the respondents relate the word brand with good quality,

a product i.e trustworthy.

 Most of the respondent's response was positive regarding the importance

of having a brand name. They think that a product must have brand name.

 The perception of a brand name is very clear amongst the respondents. It

as analyzed that the general view of the respondents was that the

branded shoes were easily recognized. Majority of the respondents

agreed regarding the knowing about the importance of the manufacture

who produces the shoes. The result show that 46 % of the respondents

strongly agree that the knowledge regarding the manufacture the goodwill

attached with the company is essential , only 20 % respondents strongly

disagree that to know about the manufacture is necessary , rest 14 %

respondents were neutral about this question.

 Factors like price , advertising and brand name too got significant as the

main difference in branded unbranded product is of price sensitivity.

 The family members influence the most while purchasing such type of

products. Rest friends and self-judgments too count here in the final

decision -making.

 Results shows that most of the consumers will not prefer the same brand,

which they are using at present .The main reason being that they just want

to try anew brand. "This means that the consumers of today are

57
 innovators i.e. they want to try the latest product with a difference and to

have enjoy the new product.

 The results highlights that most of the respondents just shifted from one

brand to other just to try the new brand, rest respondents feel dissatisfied

with the old brand sc they shifted to new brand, other reasons like friends.

CHAPTER-6

58
RECOMMENDATIONS

RECOMENDATIONS

59
 The word brand implies that a products of good quality and is known for its

durability. So the major payers of these products should make a note that

the product made for the user is not durable but also a quality product.

 Branded products have their own advantage. Most of the users fell that

branded products are easy to identify and they provide legal protection to

the product so, establishing a brand name in the minds of the users is very

important. This can be done by promotional campaigns, which should

speak of the reliability and durability of the brand.

 Often it is seen that a brand name, which is in the minds of the consumer,

becomes the first choice when it comes to exercise of purchase. So the

big players of the branded companies should promote their products with

heavy promotion to capture the top position in the minds of the

consumers. Apart from this new technologies should beaded to compete

with the unbranded products.

 Many of times it is seen that a firm marketing a product manufactured

bother company. Though the product quality maybe of good quality but

most of the users may be interested to know the goodwill of the

manufacturer .so no only the marketer who markets the product is

important but also the manufacturer is equally important so it is suggested

that effort should be made to highlight the good will of the manufacturer.

 Amongst the various advertising media, the study reveals that television is

the most effective media, so the branded product should be promoted on

the television. On televisions, advertisements of their products can be

60
 given with in commercials break of soaps and serials, which are rated best

among the viewers.

 Free gifts, discounts are best method to promote the sale. Many

companies bear adopting these methods to boost sales. The consumers

feel happy with these schemes as they get paying less, so these schemes

should continue, but keeping the brand image of the product in mind.

 The tendency to shift to other brands was found in majority of the

respondents. The reasons being the consumer wants something new and

fruitful. So branded product companies should come out with unique

features

BIBLIOGRAPHY

61
 Chunawala S.A. (2001 ) , Product Management , Himalaya Publishing
House
 Kotler, Philip ( 2000 ) , Marketing Management ( millennium Edition )
Prentice Hall of India New Delhi.
 Seengupta S.( 1999 ) Brand Positioning , Tata Mc Graw Hill.
 Sharma D. D. ( 2000) Marketing Research , Sultan Chand & Sons .
 Philip Kotler and Waldemar Pfoertsch, B2B Brand Management, Springer,
2006.
 Saturday, Nov 13, 2004, HINDU
 Tuesday, Mar 06, 2007 , Business Line
 Tuesday, Feb 20, 2007,Business line
 APRIL 04, 2007, Economic times
 26 Dec, 2006,Times of India
 www.chinashoesexpo.com/en
 www.mbfootwear.com/newsmbfootwear
 www.indianshoebazaar.com
 www.brand.com
 4 P’s April 2006
 Business Economy Nov.2006
 Changing management trends by K.C. Aggarwal

CHAPTER-7
62
 ANNEXURE

QUESTIONNAIRE
1). What does the word brand mean to you?
a. Trustworthy [ ] b Good Quality [ ]

63
c Value of Money [ ] d Distinctive Class [ ]
e Unique [ ]

2). Do you think branding of a product is essential for it to be successful?

Yes [ ] No [ ]
If yes then specify reasons
[ ] It makes it to identify the product easily
[ ] It supports the buying process
[ ] It develops association with its users.

3). Do you think manufacturer is important while choosing a product

a. Strongly Agree [ ] b Agree [ ]
c Neutral [ ] d Disagree [ ]
e Strongly Disagree [ ]

4). Which shoes do you normally wear?

a Branded [ ] b Unbranded [ ]
c None [ ] d Both [ ]

5). Why do you use this particular brand?

a Easily Affordable [ ] b Its easy availability [ ]

6). What are the factors which influence you to opt for a particular brand?
a Price [ ]
b Ease of Purchase [ ]
c Quality [ ]
d Brand Name [ ]
e Status Symbol [ ]
f Advertising [ ]
g Good will of Company [ ]
h Gurantee/Warantee [ ]
7). Who influences your purchase decision most?
a Family [ ] b Friends [ ]
c Neighbour [ ] d Retailer [ ]

64
e Self Judgement [ ]

8). Which according to you is the most effective method of sales promotion?
a Gift [ ] b Exchange Offer [ ]
c Coupon [ ] d Discounts [ ]
e Cash Refund Schemes [ ] f Other [ ]

9). Given a choice would you switch over from your current brand to another one?
a Yes [ ] b) No [ ]

10). Give Reasons for you switch over? (Rank them).

[ ] Dissatisfaction with old brand shoes
[ ] Impressed with the additional features of new brand of shoes
[ ] Non- availability of the old brand of shoes
[ ] Desire to use new brand of shoes
[ ] Less price / Discount offer of the other brand of shoes

11). If your retailer runs out of your favorite brand then what will you do ?
a. Ask for another brand [ ]
b Search elsewhere [ ]
c Do without it & wait till the retailer gets it back [ ]
d Others [ ]
PERSONAL DETAILS
AGE (yrs)
 < 20 yrs  21 – 30  > 30
CITY ____________________________ GENDER _____________________________
OCCUPATION
 Student  Business Man  Service Man
FAMILY INCOME LEVEL (Rs per month):
 < 10,000  10,001 – 20,000  20,001 – 30,000  > 30,0000

65
66