project report of VKC

EXECUTIVE SUMMARY

The main objective of the project was to measure brand awareness of VKC and the customer buying behavior towards footwear. First it aims at analyzing how well people are aware about VKC brand and its seven different products and finally understanding the buying behavior of ultimate customers and there by understanding the needs of customers and becoming the best brand in customer mind. The plan begins with measuring the brand awareness and customer  buying behavior at both rural and urban area. The project moves to the curse of the matter  – where where exactly VKC brand stands in consumers mind .firstly the objective of research and core strategy was stated. After starting the objectives and reasoning being them the actual research is described targeting the common people for surveys. The survey includes aspects such as measuring brand awareness and buying behavior between rural and urban with criteria’s  like quality,  pricing, income, promotion, income, availability of products, competitors, and celebrity endorsement. Suggestions are made on each and every of these aspects. The plan then goes to customer analysis section. The customer base is identified and main two criteria’s that is rural and urban have been taken into consid eration while

segmenting the market. Then have tried to find out why customers buy VKC products, how they choose, what factors matter most when making their decision and what more they expect from VKC brands. Finally other than the conclusions drawn from the analysis through surveys, improvement and innovation are recommended which has been given by the customer and will ultimately help the company to understand where they the y are now and if implemented implemented where they can be future.

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INDUSTRY PROFILE

Footwear is estimated to have started its long history of human use during the ice age some 5 million years ago. Unkind weather conditions are said to have created the necessity of the footwear. Other evidences show that footwear came to use at end of the  paleolithic period, at about the same time the early humans learned the art of leather training. Early pieces pieces of footwear were made of wrappings, wrappings, usually made of leather or dried grasses later on pieces were developed for an oval piece of leather which is bound  by a piece of strong leather throngs. Sandals which are first crafted footwear are the successors to these wrappings. In Egyptian funeral chambers, paintings show the different stages in the  preparation of leather and footwear. The images also show that in Egypt, footwear depicted power and class. The pharaoh’s sandals were distinguished by the turn up toes, a characteristic

which is missing in the commoners’  footwear. The images also show that in Egypt footwear depicted power and class. The Egyptian sandals were crafted using straw,papyrus or palm fiber.later on Egyptian women adorned their footwear with precious stones and jewels. Footwear is demanded by all income group people. Middle and lower income group prefer low cost,durable,wear and tear resistant footwear that can be used in all type of domestic condition where as high income group prefer fashion oriented footwear.

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INDUSTRY PROFILE

Footwear is estimated to have started its long history of human use during the ice age some 5 million years ago. Unkind weather conditions are said to have created the necessity of the footwear. Other evidences show that footwear came to use at end of the  paleolithic period, at about the same time the early humans learned the art of leather training. Early pieces pieces of footwear were made of wrappings, wrappings, usually made of leather or dried grasses later on pieces were developed for an oval piece of leather which is bound  by a piece of strong leather throngs. Sandals which are first crafted footwear are the successors to these wrappings. In Egyptian funeral chambers, paintings show the different stages in the  preparation of leather and footwear. The images also show that in Egypt, footwear depicted power and class. The pharaoh’s sandals were distinguished by the turn up toes, a characteristic

which is missing in the commoners’  footwear. The images also show that in Egypt footwear depicted power and class. The Egyptian sandals were crafted using straw,papyrus or palm fiber.later on Egyptian women adorned their footwear with precious stones and jewels. Footwear is demanded by all income group people. Middle and lower income group prefer low cost,durable,wear and tear resistant footwear that can be used in all type of domestic condition where as high income group prefer fashion oriented footwear.

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HISTORY OF FOOTWEAR

Spanish cave drawings from more than 15000 years ago show humans with animal skins or furs wrapped around their feet. The body of a well- preserved “ice-man” 5000 years old wears leather foot coverings stuffed with straw. Shoes in some form or another, have been around for a very long time. The evolution of foot coverings, from sandal to present-day athletic shoes that are marvels of engineering, continues even today as wSe find new materials with which to cover our feet. Has the shoe really changed that much though? We are, in fact still wearing sandals-the oldest crafted foot covering known to us. Moccasins are still readily available in the form of the loafer. In fact, many of the shoes we wear today can be traced back to another era. The Cuban heel may have been named for the dance craze of the 1920s, but the shape can be seen long before that time. Platform soles, which are one of the most recognizable features of footwear in the 1970s and 1990s were handed down to us from 16th  century chopines.the, high soles were a necessity to keep the feet off of the dirty fas hion’s sake. The poulaine, with its ridiculously streets. Today they are worn strictly for fashion’s

long toes is not that different from the winkle-pickers worn in the 1960s. If one can deduce that basic shoe shapes have evolved only so much, it is necessary to discover why this has happened.it is surely not due to a lack of imaginationthe colors and materials of shoes today demonstrate that. Looking at shoes from different  parts of the world, one o ne can see undeniable similarities .while . while the venetians were wearing the chopine,the Japanese balanced on high-soled wooden shoes called get. Though the shape is slightly different, the idea remains the same. The venetians had no contact with the Japanese, so it is not a case of imitation. Even the mythical Chinese practice of foot  binding has been copied (though to lesser extent) in our culture. Some European women and men of the past bound their feet with tape and squashed them into too tight shoes.in fact, a survey from the early 1990s reported that 88 percent of American women wear shoes that are too small. 4

As one examines footwear history, both in the west and in other parts of the world, the similarities are apparent. Though the shoemakers of the past never would have thought to pair a sandal with a platform sole, our shoe fashions of today are, for the most  part, modernized adaptation adaptation of past styles. INDUSTRY CONCENTRATION

The Global Footwear Manufacturing Industry is considered to have a low concentration level. The four largest players in the sector are expected to account for around only 6.9% of industry revenue in 2010. The high labor intensity of most of the industry's production lends itself toward small operations. While large scale manufactures operate in the industry, developing countries also have a large number of microenterprises that manufacture footwear. The top eight major players in the sector are expected to account for about 8% of total industry revenue. While industry concentration is considered to be low, based on the top four and eight companies, the overall footwear market is more consolidated than other apparel markets.

Concentration within the industry has increased in recent years due to mergers and consolidation of industry participants. This trend is expected to continue in the future. For example, the major player in this industry, Yue Yuen, has absorbed several footwear manufacturing operations over the last year. The level of industry concentration is expected to increase in the next five years as firms merge or consolidate operations. GEOGRAPHICAL SPREAD

 North Asia will be by far the largest footwear manufacturing region. In 2009, it is estimated to have contributed 59.6% of world production and 53.4% of employment in the industry. China will be the largest producer in the Global Footwear Manufacturing Industry and manufactured approximately 7 billion pairs of shoes or an estimated 58% of 5

total world production. Taiwan and Korea were previously large regional producers. While many large footwear manufacturing companies have headquarters in these countries, nearly all of the manufacturing takes place in China. South East Asia is expected to be the second-largest region in terms of pairs produced, making up about 13.3% of total production and 12% of employment. These regions included Vietnam, which has grown from about 542.6 million pairs produced in 2004 to an estimated 964.8 million in 2009. Vietnam's emergence illustrates how China itself has  become vulnerable to cut-rate competitors. This is in contrast to other Asian economies such as Thailand, which sought to align themselves with China. Countries such as Thailand and Indonesia are still significant manufacturers, although not to the extent that they were in the 1990s.

India and Central Asia should make up about 9.6% of world production with India the largest contributor and Turkey the second largest. Despite this, this region still made up about 19.8% of employment due to the large number of micro businesses that are involved in footwear manufacturing in India. The Indian industry has grown considerably over the last few years as larger levels of overseas investment from US, Europe and Taiwan has seen the country become a viable location for producing mid-priced footwear  products. The large domestic market also gives India the potential to grow considerably from an estimated 7.4% of world production in 2009.

South America should make up 6.9% of world production and 5.5% employment. The Brazilian footwear industry is expected to be the main contributor in 2009 with about 6.5% of pairs produced and 4.9% of employment. While some Eastern European regions such as Romania are growing, most manufacturers in Western and Southern Europe have struggled to compete against the increasing level of import penetration from Asia. Europe is expected to make 5.3% of 6

world production and 5.2% of employment in 2009. Italy is expected to be largest  producer in Europe, contributing about 1.9% of total pairs produced, the majority of which are high- to medium- priced shoes. Many Italian companies have changed their  business models and shifted production to other viable areas - some in Eastern Europe, others in China and some in India.  North American footwear manufacturing has declined substantially over the last ten years after years of offshoring and import penetration in the US. In 2009, it represented only about 2.5% of world production and 1.9% of employment. Mexico has also been struggling against import competition but still contributes about 1.9% of world  production and 1.6% of employment. Growth in US manufacturing is likely to occur in niche markets as demand from middle-class consumers from developing nations such as China and India grows. DEMAND DETERMINANTS

Real household disposable income levels are an important demand factor for footwear. This factor can influence the quantity, quality and frequency of footwear purchases. As the level of real household disposable income increases, it can prompt greater demand for footwear. Accordingly, as real household disposable income declines, so too does the frequency at which consumers purchase discretionary items. This is also related to the  price of footwear. If the price of clothing and other related goods increase at a faster rate than footwear, people will tend to purchase greater volumes of shoes.

Advertising and marketing of brand names are important ways for footwear producers to differentiate their products. Consumers are influenced by advertising and brand image. Improving these can lead to higher sales. Established products such as Nike, Adidas and high-end fashion brands, like Manolo Blahnik, Prada, DKNY and Gucci, can limit the effect of new footwear styles on the market as they hold such a large portion of the market. Greater spending on advertising is attributed to the power of branding and the 7

larger the manufacturer the greater the success of creating a strong and popular brand. Fashion is also a form of differentiation and has influenced advertising and marketing. Fashion and social trends lead to changing demand for certain footwear styles in the same way that the popularity of sporting activities affects sales in athletic footwear.

The level of fitness awareness and the age of the population are social factors that affect demand. These affect the demand for particular types of shoes. For example, with an ageing population in some developed countries, the demand for walking shoes may gradually increase over sport shoes and school shoes. Seasonal factors and weather conditions also cause changes to demand conditions. Footwear sales vary according to seasonal and weather conditions around the world. For example, during the cold winter months, the sale of sandals will decrease and the sale of galoshes will increase.

Population growth is key driver in this industry. A higher global population leads to greater demand for consumer products, particularly for basic necessities such as basic footwear. This can lead to growth in the industry. The quality of locally made shoes compared to imports can also create changes in demand and consumer perceptions, especially for shoes categorized as discretionary purchases. Domestic consumers may  prefer local products due to a sense of loyalty to local firms. Consumers may also be willing to pay more footwear made in certain countries, such as Italy, over footwear manufactured in developing countries. INDUSTRY VOLATALITY

While revenue from footwear manufacturing changes from year to year, it is a product that most consumers in the world purchase. Growth is mainly driven by world population growth and GDP growth. The world's population will continue to grow in 2010, despite weaker global economic conditions. Because of this, revenue from footwear manufacturing is still expected to grow. 8

Volatility can be created by fashion changes. These can fluctuate rapidly and are difficult to predict. A change in fashion can make footwear styles outdated and lead to poor sales. Changing fashion can also make some footwear more popular. Styles of footwear and the popularity of different products may change, but as long as world population is growing, in the long term, revenue from footwear manufacturing is likely to continue to grow steadily. Fluctuating competition from imports can create volatility. Import levels vary as price competitiveness relative to domestic footwear changes. This is also influenced by exchange rates and the presence of tariff restrictions and quotas.

TECHNOLOGY AND SYSTEMS

Technological advancement in the Global Footwear Manufacturing industry is deemed to  be low. Much of the production is still very labor intensive as it comprises of sewing and cutting machines that still need to be operated with human intervention. Internet technology has connected the world and is used to communicate product information globally. This has further internationalized global supply chains in the worldwide footwear manufacturing industry with companies operating in various international locations. For example, product design, strategy and marketing are often done in developed countries while manufacturing often takes place in other parts of the world. While this still took place before the advent of internet technology, the speed of conversion from footwear design to manufacturing has increased. Most research surrounds the development of new material components and improved  production procedures. The implementation of production cost saving measures at all levels is ongoing. Companies such as Adidas have recently made significant progress to increasing their speed to market, including taking 30 days out of the footwear production  process. 9

Computerizing functions performed by machines, such as the introduction of computerized stitching improved efficiency aided efficiency. Machines now perform the functions of "roughing", which is the removal of the top surface of leather, which  previously required highly skilled labor. Injection molding (which enabled mass  production of items such as synthetic soles and heels) and computerized cutting by water  jets (to replace manual cutting processes) were both significant developments. Tagless labeling technology is expected to allow for increased consumer comfort,  branding opportunities, cost savings

and

security management. The garment

manufacturer or contractor can incorporate brand logos, anti-counterfeiting tools,  barcodes and potentially radio-frequency identification (RFID) technology into labels, in one relatively simple process. BASIS OF COMPETITION

Firms compete with each other on the basis of price, quality and service. Price can be construed to signify the quality of the product. A firm can gain an advantage in the market by providing good quality products at a reasonable price. The main factor for imported footwear having such a strong competitive position is that generally, footwear comes from low labor cost countries such as China, which allows consumers in developed nations to take purchase cheaper shoes. At the other end of the market is high quality footwear, which is usually sourced from Western European countries such as Italy, who are renowned for their high-quality inputs, such as leather and fabrics. Product innovation is a significant differentiating factor. This is increasingly becoming a large competitive consideration for manufacturers. Design teams are constantly creating various ranges of new style footwear, which include added features such as air pocket soles for outdoor activity shoes. This product differentiation is perceived as one of the main factors on which consumers choose specific products, aside from price.

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Apart from innovation, product branding is crucial to compete in this industry. Established brand names, such as Nike and Adidas, have created brand image and recognition through varying marketing activities. This has created a loyal consumer base and companies can use their market share to influence buying habits and create greater market strength. Similarly, up-market shoe manufacturers may serve a niche market by charging a high price for high-quality shoes that provide a certain image. Further, a company that supplies retailers and fills orders in a timely manner can also gain a good reputation and achieve repeat orders. Developing or newly developed countries generally compete on their low labor costs. Apart from this, many of them have large domestic markets with growing middle classes that are experiencing a rise in spending power. Examples of such counties are China and India.

The competitive strengths of developed countries in the industry include: design of shoes and footwear; quality of material, particularly leather; brand strengths associated with quality and design; quality of product; and technological competence. While the technological competence of footwear manufacturers is stronger in the developed world, this is expected to be limited to a short time span with firms in developing economies increasing their use of similar technologies with some companies in China already more advanced.

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OVERVIEW OF INDIAN FOOTWEAR INDUSTRY Indian leather industry is the core strength of the Indian footwear industry.it is the engine of growth for the entire Indian leather industry and India is the second largest global  producer of footwear after china. Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clrks, Nike, Rebook, Ecco, Deichmam, Elefanten, St Michaels, Hasley, Salamander and Colehaan are manufactured under license in india. Besides, many global retail chains seeking quality product at competitive prices are actively sourcing footwear from India. While leather shoes and uppers are produced in medium to large-scale units, the sandals and chappals are produced in the household and cottage sector. The industry is poised for adopting the modern and state of-the art technology to suit the exacting international requirements and standards. India produces more of gent’s footwear while the world’s

major production is the ladies footwear.in the case of chappals and sandals, use of nonleather material is prevalent in the domestic market. Leather footwear exported from india are dress shoes, casuals, moccasins, horrachies, sandals, ballenrinas, boots. On-leather footwear exported from India are shoes,sandals and chappals made of rubber,plastic,P.V.C. and other materials. With changing lifestyles and increasing affluence, domestic demand for footwear is  projected to grow at a faster rate than has been seen. There are already many new domestic brands of footwear and many foreign brands such as Nike, Adidas ,Puma, Reebok, Florsheim, Rockport, etc. have also been able to enter the market. The footwear sector has matured from the level of manual footwear manufacturing methods to automated footwear manufacturing systems. Many units are equipped with inhouse design studios incorporating state-of-the-art CAD systems’ having 3D shoe design  packages that are intuitive and easy to use. Many Indian footwear factories have also acquired the ISO 9000, ISO 14000 as well as the SA 8000 certifications. Excellent 12

facilities for physical and chemical testing exist with the laboratories having tie-ups with leading international agencies like SATRA, UK and PFI, Germany. One of the major factors for success in niche international fashion markets is the ability to cater them with the latest designs, and in accordance with the latest trends. India, has gained international prominence in the area of colors & leather texture forecasting through its outstanding success in MODEEUROP Design and Retail information is regularly made available to footwear manufacturers to help them suitably address the season requirement. The Indian footwear industry is gearing up to leverage its strengths towards maximizing  benefits. Strength of India in the footwear sector originates from its command on reliable supply of resources in the form of raw hides and skins, quality finished leather, large installed capacities for production of finished leather & footwear, large human capital with expertise and technology base, skilled manpower and relatively low cost labor, proven strength to produce footwear for global brand leaders and acquired technology competence, particularly for mid and high priced footwear segments. Resource strength of India in the form of materials and skilled manpower is a comparative advantages for the country. The export targeted from 2007-08 to 2010-11 as tabulated below reflects the fact that footwear sectors is the most significant segment of the leather industry in India. India has emerged in recent years as a relatively sophisticated low to medium cost supplier to world markets-the leather industry in India has been targeted by the central government as an engine for economic growth. Progressively, the government has  prodded and legislated a reluctant industry to modernize. India was noted as a supplier of rawhides and skins semi proceeded leather and some shoes.

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In 1970’s the government initially banned the export of raw hides and skins, followed

this by limiting, then stopping the export of semi processed leather and encouraging local tanneries to manufacture finished leather themselves. Despite protestations from the industrialists, this has resulted in a market improvement in the shoe manufacturing industry. India is now a major supplier of leather footwear to world markets and has the  potential to rival in the future (60% of Chinese exports are synthetic shoe). India is often referred to as the sleeping giant in footwear terms. It has an installed capacity of 1,800 million pairs, second only to china. The bulk of production is in m en’s leather shoes and leather uppers for men and ladies. It has over 100 fully mechanized modern shoe making plants, as a good as anywhere in the world (including Europe). It makes for some upmarket brands including Florsheim (US), Lloyd (Germany), Clarks (UK), Marks and Spencer(UK). India has had mixed fortunes in its recent export performance. In 2000, exports of shoes were US$ 651 million; in 2001 these increased to 663 million but declined in 2007 to 6 23 million dollars. The main markets for Indian leather shoes are UK and USA, which between them take about 55% of total exports. Indian has not yet reached full potential in terms of a world supplier. This is due mainly to local cow leather that although plentiful, has a maximum thickness of 1.4-1.6 mm, and the socio/political/infrastructure of the country however, India is an excellent supplier of leather uppers. Importation of uppers from India does not infringe FTA with Europe or the USA. The potential is set to change albeit slowly, but with a population rivalling china for size, there is no doubt the tussle for world domination in footwear supply is between these two countries.

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FEW FACTS. 

the Indian footwear retail market is expected to grow at a CAGR of over 20% for the period spanning from 2008 to 2011.



footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07

  presently, the Indian footwear market is dominated by men’s footwear market that

accounts for nearly 58% of the total footwear retail market. 

 by products, the Indian footwear market is dominated by casual footwear market that makes up for nearly two-third of the total footwear retail market.

 as footwear retailing in Indian remain focused on men’s shoes, there exists a

 plethora of opportunities in the exclusive ladies and kids footwear segment with no organized retailing chain having national presence in either of these categories. 

the Indian footwear market scores over footwear market as it gives benefits like low cost of production, abundant raw material, and has huge consumption market.



the footwear component industry also has enormous opportunity for growth to cater to increasing production of footwear of various types, both for export and domestic market. There are nearly 4000 units engaged in manufacturing footwear in India. The

industry is dominated by small scale units with the total production of 55%. The total turnover of the footwear industry including leather and non-leather footwear is estimated at RS 8500-9500 crore(euro 5513-1723.1 million) including RS 1200-1400 crore (euro 217.6-253.9 million) in the household segment. India’s share in global leather footwear imports is around 1.4% major competitors in the

export market for leather footwear are china (14%), Spain (6%) and Italy (21%). The footwear industry exist both in the traditional and modern sector. While the traditional sectors is

spread throughout the country with pockets of concentration

catering largely to the domestic market, the modern sector is largely confined to select 15

center’s like Chennai, ambur, ranipet, agra , Kanpur and delhi with most of their

 production for export. Assembly line production is organized, and about 90% of the work forces in the mechanized sector in south India consists of women. In fact, this sector has opened up  plenty of employment opportunities for women who have no previous experience. They are trained to perform a particular function ion in the factory itself.

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VKC GROUP OF COMPANIES “VKC group of companies are the  leading footwear manufacture especially in southern

region of India. The group established on (August17) 1984 with a nominal capital and few employees. In 1984 the founder of the group Mr. V.K.C. Mammed Koya started a Hawai Sheet manufacturing unit with his two brothers. Later on Hawai straps were also inducted to the production line and in 1986 VKC group launched the first product with its own brand name in the market viz. VKC Hawai with an initial production of 600 pairs  per day. By 1989 the production increased to 5000 pairs a day and by 1996 it jumped to 17000 pairs.

In between the founder initiated the floating of the first RPVC (Rigid Polyvinyl Chloride) footwear manufacturing unit in the Malabar Area of Kerala state with few of his friends. This product also got very good acceptance in the market. This resulted in a rapid change in the footwear industry itself. Within a few years the number of Rubber and RPVC unit grew to more than 80 in this area.

In 1994 the group ventured the first unit in Kerala to manufacture footwear from virgin PVC. This resulted in a drastic change and the multinational brands confronted competitions from the local brands. In 1998 the group started the first Micro Cellular PVC footwear in Kerala with the help of imported pla nt and machinery. “Quality at low  price” made the VKC groups products popular  in the market day by day.

In 2001 the group started the first Air Injected PVC DIP footwear manufacturing unit in the South India. In 2003 the group missioned the first Injected EVA manufacturing unit in South  – Central India. In 2006 the group started backward integration to produce EVA compound for Injection and started the first EVA compounding plant in the South  – 

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Central India. The unit went in 2007 the group started manufacturing of PU DIP footwear.

During this period new bloods with technical, commercial and practical knowledge were inducted and now the group consists of 25 working Directors and 100 share holders spread over 16 various units. And have annual group turnover of Rs.4000 million. More than 4000 employees are working in these units. The company had achieved a prominent position in the footwear market of India. The main markets, which have been focused by the company are Kerala, Tamilnadu Karnataka, Madhya Pradesh, Gujarat, Andhra Pradesh. It has now expanded its market in countries such as Saudi Arabia, Dubai, Kuwait, Oman, Bahrain and Qatar.

The good quality and variety in models of VKC products help the companies to face the market competition positively. The company has been able to maintain the quality of the  products by adopting foreign technologies. The group is now looking for further avenues in the field of footwear to stretch their hands.

Vision To provide quality products to the customer at an affordable price. Mission To meet the market demand and to achieve a prominent position in the Footwear industry. Motto “Quality products at Affordable Price” The Head Quarter of VKC group is in CALICUT and the main plants of VKC group of

companies are situated in Kerala and Tamilnadu.

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VEEKESY GROUP COMPANIES:

1. M/s. VEEKESY RUBBER INDUSTRIES PVT.LTD. 2. M/s. VEEKESY ELASTOMERS PVT.LTD. 3. M/s. VEEKESY POLYMERS PVT.LTD. 4. M/s. SANDLON TECHNOLOGIES PVT.LTD. 5. M/s. FORTUNE ELASTOMERS PVT.LTD. 6. M/s. CALTECH POLYMERS PVT.LTD. 7. M/s. SLIPONS INDIA PVT.LTD 8. M/s. DIADORA SHOES PVTLTD. 9. M/s. DIMESCO FOOTCARE INDIA PVT LTD. 10. M/s. FERRARI SHOES (INDIA) PVT.LTD 11. M/s. VEEKESY FOOTCARE (INDIA) PVT. LTD 12. M/s. FERRERO VINYL TECHNOLOGIES PVT.LTD 13. M/s. MORBIDO VINYL PVT.LTD. 14. M/s. SMARTAK FOOTCARE PVT. LTD. 15. M/s. VKC FOOTSTEPS INDIA PVT.LTD 16. VKC FOOTPRINTS GLOBAL PVT LTD 17. VKC FOOTWEAR INTERNATIONAL PVT LTD 18. M/s VEEKESY SANDALS INDIA PVT LTD

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COMPANY PROFILE OF M/s. VEEKESY POLYMERS PVT .LTD

M/s. Veekesy Polymers Pvt. Ltd. is registered as a private limited company and is first of its kind in South Central India for manufacturing of injected EVA footwear’s. M/s.

Veekesy Polymers Pvt. Ltd. is one of the associate concerns of renowned VKC Group of Companies. The founder of M/s. Veekesy Polymers Pvt. Ltd. is Mr. V.K.C. MAMMED KOYA. The company is situated at Ramanattukara, Kozhikode .

The Managing Director of the company is Mr. V. Rafeeque. He was awarded with Best Entrepreneur of Kerala and Best Entrepreneur of Kozhikode district for the year 2003.

The Company has been able to achieve a landmark in the field of footwear through the continuous researches in footwear industry. The company manufactures “VKC Lite”

 brand footwear having EVA sole with PVC and synthetic leather upper. The company was incorporated in 01.01.1996 under the Companies Act 1956 and commenced its  production on 13.04.1998. Now a day’s company produces EVA and PU footwears.

All affairs and day-to-day business administration of the firm is vested in the hands of Board of Directors. They are in charge of various functions pertaining to Finance, Production, HR, Marketing, Administration and Materials departments. The board is assisted by well qualified staff members. Each department has functional heads, senior and junior executive in order to support and help functional heads.

M/s. Veekesy Polymers Pvt. Ltd has a good market for their product in Kerala, Tamil  Nadu, Andra Pradesh, Maharashtra, Chhattisgarh, Orissa, Gujarat because of the quality and the affordable price of the product. The management gives high priority to the quality of the product. The company assures the quality of the product through the continuous quality checking in each and every stages of the production process.

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The quality of the VKC products is unrivalled in the market. The Footwear’s introduced  by the company has been growing and evolving with the changing trends over the year. The company first manufactured “Senor Cinderella” brand footwear having PVC sole

with leather and synthetic leather upper. Now the company is manufacturing VKC Pride and VKC Lite. VKC Pride is sold in Kerala, Tamil Nadu, Andra Pradesh, Maharashtra, Chhattisgarh, Orissa, Gujarat and VKC Lite in Kerala and Tamil Nadu alone. In the recent years the cust omers prefer the injected EVA Footwear’s rather than any other Footwear. We also export our products to Kuwait, Oman and Jiddah.

As we are manufacturers of footwear, we focus mainly on production process of the organization. The function of the production department is to produce our products on time, to the required quality levels, at the defined product cost. The advantage of the company is the implementation of Italian technology used for the injection moulding  process. Molding process is the main activity and the key process of manufacturing of quality footwear. This will help the company to assure high quality with accurate size and good finish to the product. Of major concern to the production manager is monthly output. Production managers have monthly targets which they are expected to strive to meet or exceed. The annual production of EVA foot wears is 12 lakh and PU is 40 lakh.

The production department of M/s. Veekesy Polymers Pvt. Ltd comprises of well experienced staff members starting from functional head, department head, coordinator, supervisors, shift engineers, machine operators, pouring men and workers. Production department also aims at maintaining the quality of products been produced. Every employee is expected to take responsibility for managing quality issues in order to make sure that waste is minimized and quality maximized. Quality checking and assurance is carried out every day on a number of occasions to ensure that the production process is working efficiently and effectively.

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We use different machines to produce footwear’s. The company purchases footwear molds from Taiwan, China, and Italy. This will help the company to assure high quality finished product. Most of our machines are imported from abroad. It includes high EVA Injection molding Machine, Blender Machine, PVC Mixer, Cooling unit, Compressors, PVC Injection Maudling Machine, Generator, Clicker and Stitching Machine

M/s. Veekesy Polymers Pvt. Ltd has succeeded in withstanding stiff competition from the  parallel manufactures because of the superior quality of their products at reasonable  price.

Other than production and quality checking, production department performs one more function. That is packing of finished products into cartons. A set of workers are assigned to pack  finished products into specified cartons or boxes according to their name and size. Before packing quality is again being checked by the workers. After packing all these cartons are sent to stock room for storing so that it can be sent to dealers directly according to the order placed.

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PRODUCTION DEPARTMENT:

Production Process EVA Compound

Synthetic Leather PVC Raw Material Cutting

Blending Mixing

Injection Moulding Process Injection Moulding Process Stitching

Semi Finished Footwear Finishing

Show fitting & Riveting

Finishing Quality Checking

Printing

Assembling

Packing

Finished Footwear

Despatch

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PACKING PROCESS

Trimming Process

Conveyor System

Upper & Sole Cleaning

Tag Fitting

Packing into Small Carton

Fixing Size & Price Sticker in Small Carton

Packing into Master Carton

Final Check up in Pairs, Art No., Size & Price

Box Strapping

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After production these products are being sold in the market according to the orders taken  by marketing department. The marketing department studies the market and the target customers, decides the best way to reach these customers, and works with the rest of the company to help determine the new product needs of the market. We do continuous market research, which helps us in planning and executing marketing strategies for the future course of action. It also helps us in analyzing the buyer habits, popularity of  product, and effectiveness of advertising media. It also helps to collect information about marketing problems and opportunities

The company executives are directly taking the orders from the wholesalers. The Company has very good system for the supply of the products to the wholesalers. We sent our products through parcel service to various dealers based on their orders to respective places and doesn’t have connection with any retailers. Our product reaches the

hand of customers through retailers, who gets it from wholesalers.

We manufacture products on the basis of demographic segmentation. As a result, we  produce products aiming kids, youngsters, gents and ladies at affordable price with high quality. We produce footwear under the name VKC Lite and VKC Pride. VKC Pride is used for exporting to foreign countries. Slogan for VKC Pride is “Step into the World of Proud’ and for VKC Lite “Step into the

World of Ecstasy. The Company treats advertising as the main mode of marketing to improve sales of our products. Ambassador of our product is Cine Actress Meera Jasmine. VKC’s Advertising covers all activities connected with giving publicity

regarding goods and services offered for sale. The main Medias for advertising are: Indoor Media & Outdoor Media

25

Indoor Media  includes TV Channels, News papers, Magazines, Catalogues, Danglers,

Calendars, & Stickers. Advertisement of the products are given in all the major TV channels in Malayalam. Outdoor Media includes Name boards, A boards and Hoardings.

Marketing and sales goes hand in hand. Sales promotion plays a major role for the success of the VKC products. Sales promotion influences the customers for buying the  products and also helps to meet competition and helps in stimulating demands. Sales Promotion is carried out in two ways. Consumer’s promotion and dealer promotion. Consumers promotion consists of

 providing coupons, contest that we conduct and price offer for our various products. For dealers we conduct sales contest, give gifts, and turnover allowance based on the amount  products been purchased from our firm. Company provides scheme called VKC Sammanotsavam for dealers based on their purchase for that particular year.

The Company conducts the Wholesalers Meet at least once in a year. By this the company provides an opportunity to the wholesalers to interact with the company and  between the dealers. This helps to find problems, sort out differences, and to formulate  plans for future improvement in the market. The adequate production, supply, good quality, affordable price of the product, and the various marketing techniques used by the company helps products to be a superior one in the market that satisfies the customer.

Human resource department of the organization caters to the need of both employees and workers of the organisation, resulting in a good relation between employees and workers. They are well satisfied with the attitude of the management towards them and in the facilities provided to them. So there are no labour strikes, absenteeism and attrition. The

26

company provides excellent training programs for the employees to improve the skills and productivity with in a lesser time. The employees are getting the statutory benefits like Bonus, ESI scheme, Employees Provident Fund, Festival Holiday Allowances from the company. They are often given awareness class related to cleanliness, health and safety. Department heads also make visits to quarters were workers are staying in order to ensure cleanliness in their surroundings. HR department maintain a help desk in order to redress grievance of the workers and answer to their queries. There are total of 214 workers in the organisation.

Finance is life blood of every organisation. It deals with procurement of funds and their effective utilisation in the business. Department has one department head, one senior executive and four junior executive. Their functions mainly include checking daily cash accounts, MIS preparation, bank reconciliation, central excise and export related works, finalisation of account statement etc. M/s.Veekesy Polymers PVT. is financially stable and had got CRISIL A +  rating. The annual turnover of the organisation for the last financial year 2011-2012 is 48,72,59,360. Materials department of the organisation place order according to need of material that’s used for production. Company follows EOQ system. Whenever they find that it has reached reorder level or safety stock, order is placed. THE PRESENT BOARD OF DIRECTORS:

Mr. V. NOUSHAD (Chairman) Mr. V. RAFEEQUE (Managing Director) Mr. V. RAZAK (Director) Mr. V. MAMMED KOYA (Director) Mr. V. MUHAMMED KUTTY (Director) Mr. V. MUHAMMED (Director) Mr. M.GOPALAN (Director)

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ORGANISATIONAL CHART

CHAIRMAN

MANAGING DIRECTOR

DIRECTORS

MANAGER

ASSISTANT MANAGER

MATERIALS DEPARTMENT HEAD

EXECUTIVE JUNIOR EXECUTIVE

FINANCE

DEPARTMENT HEAD

EXECUTIVE

JUNIOR EXECUTIVE

PRODUCTION PRODUCTION HEAD

COORDINATOR

SUPERVISOR

SALES DEPARTMENT HEAD

EXECUTIVE

JUNIOR EXECUTIVE

SKILLED WORKERS

PERSONNEL

UNSKILLED WORKERS

DEPARTMENT HEAD

EXECUTIVE JUNIOR EXECUTIVE

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Introduction To Brand Awareness and consumer buying behavior

Brand awareness is the extent to which the consumer associates the brand with the  product that they wish to purchase. It is the brand recall and the brand recognition of the company to the consumers. Brand recall is the ability of the consumer to recollect the  brand with reference to the product whereas brand recognition is the potential of the consumer to retrieve the past knowledge of the brand when enquired about the brand or shown an image of the brand logo. Brand awareness is an essential part of brand development which helps the brand to stand out from the others in this monopolistically competition. The study of consumers helps firms and organizations improve their marketing strategies  by understanding issues such as how consumers think, feel, reason and select between different alternatives .(e.g., brands, products) The psychology of how the consumers is influenced by his or her environment (e.g., culture, family, signs, media).How consumer motivation and decision strategies differ  between products that are differ their level of importance or interest that they entail for the consumer: and how marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

Importance of brand Awareness:

"Awareness, attitudes, and usage (AAU) metrics relate closely to what has been called the Hierarchy of Effects, an assumption that customers progress through sequential stages from lack of awareness, through initial purchase of a product, to brand loyalty." In total, these AAU metrics allow companies to track trends in customer knowledge and attitudes. Brand awareness plays a major role in a consumer’s buying decision process. The knowledge of an acquaintance or friend having used the product in the past or a high recognition of the product through constant advertisements and associations coaxes the  person to make his decision in the favour of the brand. 29

The eventual goal of most businesses is to make profits and increase sales. Businesses intend to increase their consumer pool and encourage repeat purchases. Apple is a  brilliant example of how there is a very high recognition of the brand logo and high anticipation of a new product being released by the company. An iPod is the first thing that pops into our minds when we think of purchasing an mp3 player. iPod is used as a replaceable noun to describe an mp3 player. Finally, high brand awareness about a  product suggests that the brand is easily recognizable and accepted by the market in a way that the brand is differentiated from similar products and other competitors. Brand  building also helps in improving brand loyalty Types of Brand Awareness Aided Awareness:

This type of awareness is generated in a consumer. When asked about a product category, if the consumer is aided with a list of company names and he recognizes the company from the given set it is categorized as aided awareness. Top of the mind Awareness:

When the name of the company is automatically recollected because the consumer very  promptly associates the brand with the product category, it is called a top of the mind awareness of the product. Brand:

Brand is the "name, term, design, symbol, or any other feature that identifies one seller's  product distinct from those of other sellers. In accounting, a brand defined as an intangible asset is often the most valuable asset on a corporation's balance sheet. Private label:

Private label brands, also called own brands, or store brands have become popular. Where the retailer has a particularly strong identity this "own brand" may be able to compete

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against even the strongest brand leaders, and may outperform those products that are not otherwise strongly branded. Multi Brands:

Alternatively, in a market that is fragmented amongst a number of brands a supplier can choose deliberately to launch totally new brands in apparent competition with its own existing strong brand (and often with identical product characteristics); simply to soak up some of the share of the market which will in any case go to minor brands. Brand Name:

The brand name is quite often used interchangeably with "brand", although it is more correctly used to specifically denote written or spoken linguistic elements of any product. In this context a "brand name" constitutes a type of trademark if the brand name exclusively identifies the brand owner as the commercial source of products or services. Brand Parity:

Brand parity is the perception of the customers that some brands are equivalent. This means that shoppers will purchase within a group of accepted brands rather than choosing one specific brand. When brand parity is present, quality is often not a major concern  because consumers believe that only minor quality differences exist. Relationship Marketing:

Relationship marketing refers to a short-term arrangement where both the buyer and seller have an interest in providing a more satisfying exchange. This approach tries to disambiguiously transcend the simple post purchase-exchange process with a customer to make more truthful and richer contact by providing a more holistic, personalised  purchase, and uses the experience to create stronger ties.

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Guerrilla marketing:

It is an out of the ordinary way of marketing a product. Low-cost channels can be utilised to generate a high level of interest in the product and create brand awareness. Utilisation of personal contacts is the most popular way of guerrilla marketing. Product Placement is an advertising technique used by companies to subtly promote their products through a non-traditional advertising technique, usually through appearances in film, television, or other media. Brand parity:

Brand parity is the perception of the customers that some brands are equivalent. This means that shoppers will purchase within a group of accepted brands rather than choosing one specific brand. When brand parity is present, quality is often not a major concern  because consumers believe that only minor quality differences exist. Brand equity:

Brand equity is a phrase used in the marketing industry which describes the value of having a well-known brand name, based on the idea that the owner of a well-known  brand name can generate more money from products with that brand name than from  products with a less well-known name, as consumers believe that a product with a wellknown name is better than products with less well-known name.

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STATEMENT OF PROBLEM

To study on brand awareness and customer buying behavior of VKC polymers ltd. OBJECTIVES OF THE STUDY: 

To judge the awareness level of the prospect customer



To know how they are aware regarding the product



To judge in which way they have developed awareness



To judge which promotional tool is effective to increase the awareness level among the people



To see whether brand awareness influences the buying behavior or not



To know about the product awareness among the customer



To know about which brand of VKC is most preferably used by customer



To analyze customer view towards quality price of VKC products



To know customer buying behavior

SCOPE OF THE STUDY

The study on brand awareness and consumer buying behavior of VKC has lot of scope. The reason ids these help to find out awareness level of the prospect customer and existing customer buying behavior of the people at the VKC product. Research Design

The research design is conceptual structure within which research is conducted.it is a plan of action, a plan of collecting and analyzing data in economic, efficient and relevant manner.it contains the blue print for the collection, measurement &analysis of data.The  proposed study is an exploratory cum descriptive. A descriptive research is conducted with a random sample survey method towards the customers.

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Sampling Design Sample Size

The survey is conducted on 100 people who are selected randomly from within the Kozhikode district of kerala. Sampling Method

Sampling method used was simple random sampling. The information was collected from respondents who were selected randomly. Data Collection Tools

Primary Data

Questionnaires are the basis of collection of

primary data. The questionnaire was

distributed to students and information was obtained. In addition to the questionnaire  personal interaction with students during market survey were made in order to understand their problems, knowledge towards the program, their preferences and other useful information.

Secondary Data

Some of the data were collected from the existing sources of information which were assessed due to availability of various other forms of data and information. These data served as the secondary data for the researcher. The sources of data were company websites. Theoretical information from significant text book was also used.

Questionnaire Design

Structured undisguised questionnaire was used in designing the questionnaire to collect the data from the respondents.

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Statistical Design

The data collected has been tabulated and each respondent is categorized according to the data given and percentage is worked out of each group of data. The statistical tools used were tables, bar graphs and percent.

LIMITATIONS OF THE STUDY 

The analysis is based on customer’s opinion at the time of survey, suggestions and conclusions are based on limited data.



Some customers are not willing to give proper response



Due to different in language sometime I have to fill up the questionnaire according to the answer



Some of the respondents were not cooperate they did n’t provide some of the details

35

Graph showing number of respondents who heard about VKC brand before receiving this questionnaire. Male

64

Female

36

TOTAL

100

70

60

50

40

30

20

10

0 MALE

FEMALE

36

Graph showing no of respondents who heard about VKC brand before receiving the questionnaire .

Yes (heard)

100

 No (not heard)

0

Total

100

120

100

80

60

40

20

0 YES

NO

37

Table showing how respondents heard about brand VKC  NEWSPAPER

20

MAGAZINE

20

TELEVISION

36

HOARDINGS

14

FROM CUSTOMERS

10

TOTAL

100

INTREPRETATION:

The above chart shows how the customers heard about VKC brand. 36% of the respondents heard through magazine followed by newspaper and television. Only 14% of the respondents came to know about VKC by hoardings . only 10 % respondents heard through word of mouth or customers.

38

GRAPH SHOWING HOW RESPONDENTS HEARD ABOUT BRAND VKC

40

35

30

25

20

15

10

5

0 NEWSPAPER

MAGAZINE

TELEVISION

HOARDINGS

FROM CUSTOMERS

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Table showing which brand of VKC are known by the respondents

VKC PRIDE

24

SLIPPONS

38

VKC LITE

22

VKC TRENDZ

6

SMARTAK

4

STYLE

6

JUNIOR

0

TOTAL

100

INTREPRETATION:

Out of the total respondents 38% of the respondents are aware about VKC brand through slippons, 24% knows VKC pride,22% knows VKC lite, only 6% of respondents are aware about the brand VKC trendz and style . No one knows about the brand junior. 40

35

30

25

20

15

10

5

0 VKC PRIDE

SLIPPONS

VKC LITE

VKC TRENDZ

SMARTAK

STYLE

40

Table showing rank the brands of VKC according to awareness VKC PRIDE

36

VKC LITE

12

VKC JUNIOR

0

SLIPPONS

44

VKC STYLE

0

VKC TRENDZ

4

SMARTAK

4

TOTAL

100

INTREPRETATION:

The above chart shows the ranking of the brands of VKC according to awareness.44 % of the respondents ranks slippons as best ,followed by pride. 50 45 40 35 30 25 20 15 10 5 0 VKC PRIDE

VKC LITE

VKC JUNIOR

SLIPPONS

VKC STYLE

VKC TRENDZ

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Graph showing how many respondents know the celebrity who endroses VKC brand.

YES

60

 NO

40

TOTAL

100

70

60

50

40

30

20

10

0 YES

NO

INTREPRETATION

The above chart shows that 60% of the respondents know the celebrity who endorses VKC brand and remaining 40% of the respondents do not know the celebrity who endorses VKC brand.

42

Graph showing whether celebrity play a role in purchase decision:

YES

12

 NO

88

TOTAL

100

100

90

80

70

60

50

40

30

20

10

0 YES

NO

INTREPRETATION:

The above chart shows that only 12% of the respondents feel that celebrity play a role in  purchase decision. But 88% of the respondents feel that celebrity does not play a role in your decision.

43

Table showing criteria for buying footwear

BRAND IMAGE

20

PRICE

12

RETAILER RECOMMENDATION

4

STYLE AND COMFORT

36

ADVERTISEMENT

0

QUALITY

28

TOTAL

100

INTREPRETATION

The above chart shows that 36% of the respondents buy footwear on the basis of style and comfort. 28% of the respondents buy footwear the basis of quality. 20% of the respondents buy footwear on the basis of brand image. Retailer recommendation is only 4%.The above chart shows no one buy footwear on the basis of advertisement. 40 35 30 25 20 15 10 5 0

44

Table showing the rating of quality of VKC products as a factor for buying footwear

VERY HIGH

16

HIGH

45

AVERAGE

25

LOW

5

VERY LOW

9

TOTAL

100

INTREPRETATION

The above chart shows the customer opinion about the quality of VKC products as a factor for buying footwear. Most of the respondents rate the quality of the product is high. Only 9% of the respondents says that the quality as very low. 50 45 40 35 30 25 20 15 10 5 0 VERY HIGH

HIGH

AVERAGE

LOW

VERY LOW

45

Table showing how much customers spent to buy footwear

BELOW RS 200

8

RS 200 TO RS 300

76

ABOVE RS 300

16

TOTAL

100

INTREPRETATION

The above chart shows 76% of the customers spent between RS 200 to RS 300 to buy footwear. Only 8% respondents buy footwear less than 200. 16% of the respondents spent above 300 rupees to buy footwear. 80

70

60

50

40

30

20

10

0 BELOW RS 200

RS200 TO RS 300

ABOVE RS 300

46

Table showing how respondents rate pricing as a criterion for buying footwear.

VERY HIGH

8

HIGH

33

AVERAGE

49

LOW

5

VERY LOW

5

TOTAL

100

INTREPRETATION

The above chart shows how the respondents rate pricing as a criterion for buying footwear. 49% of the respondents rate the pricing as a criterion for buying footwear as average. 60

50

40

30

20

10

0 VERY HIGH

HIGH

AVERAGE

LOW

VERY LOW

47

Table showing why customers consider VKC product over others for purchase

BEST QUALITY

22

BEST PRICING

42

BEST MODEL

9

COMFORT

27

TOTAL

100

INTREPRETATION

The above chart shows why customer consider VKC product over others for purchase. 42% of the customer consider VKC as best pricing ,27% as comfort, 22% as best quality  but only 9 % consider VKC product as best model. 45 40 35 30 25 20 15 10 5 0 BEST QUALITY

BEST PRICING

BEST MODEL

COMFORT

48

Table showing satisfaction level with VKC brand

VERY HIGH

3

HIGH

32

AVERAGE

64

LOW

1

VERY LOW

0

TOTAL

100

INTREPRETATION

The above chart shows the satisfaction level of the customers towards VKC brand. About 64% of respondents satisfaction level is average ,3% customers satisfaction level is very high,32 % is high only 1% of the customers satisfaction level is low. 70

60

50

40

30

20

10

0 VERY HIGH

HIGH

AVERAGE

LOW

VERY LOW

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CHAPTER 6

FINDINGS 

Customers consider style and comfort as the most important factor while buying any footwear.



From this study I found out main promotional source is television.



It is found that most of the customers are willing to pay RS 200 to 300Rs for footwear.



It was found that most of the customers are aware of VKC through television.



It is found that VKC has good customer base.



The study revealed that the customer prefer VKC footwear because of best  pricing.



It is found that style and comfort is the criteria for buying footwear for majority of the customers.

 

Most of the respondents are aware of the brand slippons Majority of the customers says that celebrity does not play a role in their  purchase decision.

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CHAPTER 7 SUGGESTIONS 

Introduce products that catch youngster’s attention.



Introduce more varieties



Introduce casuals and sport shoes.



Make more attractive advertisement



Increase the size range



More attractive and updated website can be developed.

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CHAPTER 8

CONCLUSION

The privileged opportunity of doing the market study proved to be highly beneficial. The  project titled “A  study on brand awareness and customer buying behavior of VKC “ was

an attempt to study and to make suggestion to improve market share of the company. From the study, I observed that most of the customers are satisfied with VKC brand and the level of services provided by the company and also they show a high satisfied with the good quality, affordable price, styles etc. of products provide better market to this company. The brand name and their services, experience and expertise etc. will lead the company to be the best in its markets. The brand name VKC is becoming more and more acceptable in the minds of people in all levels of the society. VKC products are giving value for money to the customers. I wish all the success in future also.

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