customer satisfaction amaravathi

8/12/2019 Customer Satisfaction Amaravathi

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INTRODUCTION

MARKETING

Marketing is the process ofcommunicating the value of a product or service

tocustomers. Marketing might sometimes be interpreted as the art ofsellingproducts,

butsales is only one part of marketing. As the term "Marketing" may replace

"Advertising" it is the overall strategy and function of promoting a product or service to

the customer.

Marketing satisfies these needs and wants through exchange processes and building

long term relationships. The process of communicating the value of a product or servicethrough positioning to customers.

Marketing makes use of various social economical managerial, mathematical

artistic, psychological and scientific techniques to attain their goals.

MEANING OF MARKETING:

Marketing means the sale and purchase of goods and services. Marketing is more thanany other business functions; deals with customer's creating customers value and

satisfaction are the heart of modern marketing thinking and practice. In the old sense,

marketing means "telling and selling" but in the new sense marketing means "satisfying

customer needs".

To know the perception of customer, marketing research is a useful tool, with this

marketer can know about how consumers are satisfied with the present products and what

new features consumer's want to add to the product and their suggestions.
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DEFINITIONS OF MARKETING:

According to the American marketing association,

"Marketing the process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods and services to create exchanges that satisfy

individual and organization goals".

According toPhilipKotler,

Marketing is the social process by which individuals and groups obtain what

they need and want through creating and exchanging products and value with others.

OBJECTIVES OF MARKETING:

To satisfy the customers. To increase profits for the growth of business. To generate customer base for the business. To determine marketing mix that will satisfy the needs of the customers. To increase the quality of life of people. To create a good image.

CONCEPTUAL FRAMEWORKS:

Marketing deals with identifying and meeting the human and social needs, one of

the shortest definitions of marketing is "Marketing needs profitability" marketing is

typically seen as the task of creating. Promoting and delivering goods and services to the

consumers and business. Marketing is a societal process by which individual and groups

obtain what they need and want through creating, offering and freely exchanging products

and services of value with others.

Marketing has often been described" as the art of selling products", but people

are surprised when they hear that the most important part of marketing is not selling.


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SCOPE OF MARKETING

PERSONS:

Celebrity marketing has become a major business. Artists, Musicians, CEOS,

Physicians, high-profile lawyers and financiers, and other professionals draw help from

celebrity marketers.

PLACE:

Cities, States, Regions, and Nations compete to attract Tourists, Factories, and

Company head quarters, and new residents. Five place marketers include economical

development specialists, real estate agents, and commercial banks, local business

associations, and advertising and public relations agencies.

PROPERTIES:

Properties are intangible rights of ownership of either real property or

financial property .properties are bought and sold, and this occasions a marketing effort

by real estate agents and investment companies and banks.

ORGANIZATIONS:Organizations actively work to build a strong, favourable image in the mind

of theirpublics. Philips, the Dutch electronics company, advertises with the tagline

Lets Make Things Betters.

The Body shop and Ben &Jerrys also gain attention by promoting social causes.

Universities, museums, and performing arts\organizations boost their public image to

compete more successfully for audiences and funds.

INFORMATION:

The production, packaging, and distribution of information is one of societys

major industries among the marketers of information are schools and universities,

publishers of encyclopedias, nonfiction books and specialized magazines, makers of

CDS, and Internet websites.


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IDEAS:

Every market offering has a basic idea at its core. In essence, products and services

are platforms for delivering some ides or benefit to satisfy a core need.

THERE ARE TWO TYPES OFAPPROACHES

TRADITIONAL APPROACH MODERN APPROACH

TRADITIONAL APPROACH:

Traditional approach the objective of traditional marketing is profit maximization

Traditional marketing was sales oriented and not consumer oriented. It gave emphasis to

products. it was concerned with the transfer of ownership. It gave emphasis to physical

movement of goods.

MODERN APPROACH:

Modern approach modern marketing is consumer oriented. Modern marketing

starts and end with the consumer. Modern marketing starts\before production modern

marketing is the guiding element of business.

IMPORTANCE OF MARKETING:

Importance of marketing to the nation and society. Importance of marketing to the firm. Importance of marketing to the individuals.


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FUNCTIONS OF MARKETING:

The marketing process performs certain activities as the goods or services move

from producer to consumer. Every firm does not perform all these activities or jobs.

However, any company that wants to operate its marketing system successfully must

carry them out. The following marketing tasks have been recognized for a long time.

1.SELLING:

It is core of marketing. It is concerned with the persuasion of prospective buyers

to actually complete the purchase of an article. Setting pays an important part in realizing

the ultimate aim of earning profit. Selling is enhanced by means of personal selling,

advertising, publicity and sales promotion.

2.BUYING:

It involves what to buy, what quality, how much, from whom, when and at, what

price. People in business buy to increase sales or to decrease costs. Purchasing agents are

much influenced by quality, service and price. The products that the retailers buy for

resale are determined by the need and preferences of their customers.

3.TRANSPORTATION:

Transport is the physical means whereby goods are moved from the places where

they are produced to those they are needed for consumption. Transportation is essential

from the procurement of raw materials to the delivery of finished products to the

customers places. Marketing relies mainly on railroads, tracks, waterways, pipelines and

air transport. The type of transportation is chosen on several considerations such as

suitability, speed and cost.

4.STORAGE:

It involves the holding of goods in proper condition from the time they are

produced until they are needed by consumers (in case of finished products) or by the

production department (in case of raw materials and stores). Storing protects the goods

from deterioration and helps in carrying over surplus for feature consumption or use in

production. Goods may be stored in various warehouses situated at different places.


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5.STANDARDIZATIONANDGRADING:

The other activities that facilitate marketing are standardization and grading.

Standardization means establishment of certain standards or specifications for products

based on intrinsic physical qualities of any commodity. This may involved quantity(weight or size) or it may involve quality (colour, shape, appearance, material, taste,

sweetness etc). Government may also set some standards e.g., in case of agricultural

products. A standard conveys a uniformity of the products.

Grading means classification of standardized products into certain well-defined

classes or groups. It involves the division of products into clauses made up of unit

processing similar characteristics of size and quality. Grading is very important for raw

material (such as fruits and cereals), mining products (such as coal, iron-ore and

mangenese) and forest products (such as timber). Branded consumer products may bear

grade levels,A B C.

6.FINANCING:

It involves the use of capital to meet financial requirements of the agencies

dealing with various activities of marketing. The services of providing the credit and

money needed to meet the cost of getting merchandise into the hands of the final user is

commonly referred to as finance, function in marketing. In marketing, finances are

needed for working capital and fixed capital, which may be secured from three sources

onward capital, bank loans and advances, and trade credit (provided by the manufactures

to wholesaler and by the wholesaler to the retailers).

7.RISKTAKING:

Risk means lose due to some unforeseen circumstances in future. Risk-bearing inmarketing refers to the financial risk inherent in the ownership of goods held for an

anticipated demand, including the possible losses due to a fall in price and the losses from

spoilage, depreciation, obsolescence, fire and floods or any other loss that may occur with

the passage of time. From production of goods to its selling stage, many risks are

involved due to changes in marker conditions, natural causes and human factors. Changes

in fashions or interventions also cause risks. Legislative measures of the government may

also cause risks.


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8.MARKETINFORMATION:

The only sound foundation, on which marketing decisions may be based, is correct

and timely market information. Right facts and information reduce the aforesaid risks and

thereby result in cost reduction. Business firms collect analyze and interpret facts andinformation from internal sources, such as records, sales people and findings of the

market research department. They also seek facts and information from external sources,

such as business publications, government reports and commercial research firms.


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MARKETING CONCEPTS

The marketing concept is the philosophy that urges organization to focus on their

customers needs. Analyzing their needs and making such decisions that satisfy those

needs in a better may than competitors.

THE PRODUCTION CONCEPT:

Production concept prevailed in to late 1920S because most of the products being

produced were the basic necessities and there was a huge unfulfilled demand for them.

The basic idea behind production concept was the firms will produce what they

can produce efficiently. This will ensure enough supply of the products at low-cost and

demand will be created by itself.

THE SALES CONCEPT:

By early 1930S, competition had increased in production and on the other hand

there was less unfilled demand. So all the firms turned towards sales concept. There was

no concept of need identification,, firms were just interested in beating competition byselling more but neglecting customers satisfaction. We can call it hard selling.

THE MARKETING CONCEPT:

The market concept emerged in the mid-1950. This concept challenged the

selling concept. Instead of "make-and-sell" philosophy. The job is not to find the right

customer's for your product, but the right product for your customer's. The marketing

concept holds that the key to achieve its organizational goals consists of the company

being more effective than competitors in creating, delivering and communicating superior

customer value to its chosen target market.


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MARKETING MANAGEMENT

DEFINITION:

It is the process of planning and executing the conception, pricing, promotion and

distribution of goods, services and ideas to create exchanges with target groups that

satisfy customer and organizational objectives.

This definition recognizes that marketing management is a process involving

analysis, planning, implementation and control; that it covers goods, service and ideas;

that it rests on the notion of exchange; that the goal is to produce satisfaction for the

parties involved.

Marketing management can occur in an organization in connection with any of its

market. Consider an auto-mobile manufacturer, the manager of personnel deals in the

labour market, the manager of purchasing, the raw materials market and the manager of

finance, the money market. They must set objectives and develop strategies for achieving

satisfactory results in these markets.

Marketing work in the customer market is formally carried out by sales managers,

sales people, advertising and promotion managers, marketing researches, customer

service managers, product and Brand managers, market and Industry managers and the

marketing vice-president.

Each job carries well defines tasks and responsibilities. Marketing manager cope with

these tasks by carrying out marketing research, planning, implementation and control.


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MARKETING MIX 4 PS

The marketing mix and the 4ps of marketing are often used as synonyms for each

other. In fact, they are not necessarily the same thing.

4 PS OF MARKETING:

1. Product2. Pricing3. Placement4. Promotion

1. Product:

The product aspects of marketing deal with the specifications of the actual

goods or services, plus how it relates to the end users needs and wants. The range

of a product normally includes supporting elements such as warranties,

guarantees, and support.

2. Pricing:

This refers to the process of setting a price for a product, together with

discounts. The price need not be monetary; it can plainly be what is exchanged for

the product or services, e.g. time, energy, or attention. Methods of setting prices

Optimally are in the domain of pricing

3. Placement

The refers to how the product gets to the buyer; for instance, point-of-sale

assignment or retailing. This third P has furthermore at times been called Place,

referring to the channel by which a product or service is sold (e.g. online vs.

retail), which geographic region or industry, to which division (young adults,

families, business citizens), etc. also referring to how the surroundings in which

the product is sold in can influence sale.


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4. Promotion:

This includes advertising, sales promotion, including promotional

education, publicity, and individual selling. Branding refers to the assorted strategies

of promoting the Product brand or company All the 4 marketing p's are also known as

"the marketing mix" furthermore are frequently used by a marketer to plot a plan, and

place the foundations of fresh projects/campaigns, it is a astonishingly useful strategy

that has been used ever since the early 1960's, and will be constant for as long as new-

found projects/campaigns are being produced.


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CUSTOMER SATISFACTION

INTRODUCTIONS

Anyone who consumes goods is a consumer. Consumers get exploited in the

market. They respond to advertisements and buy goods. Generally advertisements do not

give all the information that a consumer needs to know or wants to know about a product.

Legal measures for consumer safety and consumer awareness must be uniform,

and transparent in terms of prices, quality of goods, and stocks. Consumers must have the

tools to combat malpractices and protect their rights.

Customer satisfaction is an abstract concept and the actual manifestation of the

state of satisfaction will vary from person to person and product/service to

product/service. The state of satisfaction depends on a number of both psychological and

physical variables which correlate with satisfaction behaviors such as return and

recommend rate. The level of satisfaction can also vary depending on other factors the

customer, such as other products against which the customer can compare the

organization's products.

Definition :

An individual who buys products or services for personal use and not for

manufacture or resale. A consumer is someone who can make the declslon whether or not

to purchase an item at the store, and someone who can be influenced by marketing and

advertisements. And time someone goes to a store and purchases a toy, shirt, beverage, or

anything else, they are making that decision as a consumer.

According to the long man business English dictionary consumer awareness is a

term used to describe the awareness of a potential or current buyer about a particular

product or company .


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Consumer awareness:

Anyone who consumes goods is a consumer. Consumers get exploited in the

market. They respond to advertisements and buy goods. Generally advertisements do not

give all the information that a consumer needs t knows or wants to know about a product.

Trust is becoming an increasingly valuable commodity within the marketplace, as new

businesses are popping up every day. Certain businesses that partake in false advertising

and unfair business practices attempt to exploit the uninformed purchaser. Consumer

awareness agencies provide protection and training to equip buyers with the knowledge

needed to make informed product purchases.

In the early times, consumer was considered as King of the market but in the

contemporary society, consumers are no longer safe against the mal practices such as,

substandard goods and unsatisfactory services. The consumer has every right to reject any

product or services rendered by any manufacturer in the market and can mould them to

produce goods of their choice. Indian Consumer are ignorant, illiterate and do no know

the role of consumption vis--vis economic system as well as quality of life. When they

are ignorant of their rights, they cannot know their responsibility as consumers.

Consumers in the market find themselves deceived by wrong weights and measures,

adulterated and substandard products causing great damages to health. Neelkanta and

Anand (1992) found that people prefer to absorb and endure the wrong done to them

rather than fight against injustice. This is because consumers do not know the ways and

means of facing them confidently. At present the consumer movement in India is in its

infancy. Vast majority of the people are not even aware of consumerism as a movement

closely connected with the protection of their interest. Many constitutional provisions

have been made by government to protect the consumers. Until and unless the consumers

avail of these provisions, the protection of consumer becomes inevitable. There is a great

need to make them aware of their rights and responsibilities.


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Consumers Union:

The Consumers Union is a consumer awareness organization that specializes in

product testing and comparisons, and keeping consumers informed about marketplace

issues. This organization is involved in the development of policies that influence

business practices within the United States. Consumers Union advocates work within the

regional, national and international court systems on behalf of the consumer. Their

primary areas of interest include industries involved in health care, food safety, housing,

utilities, media, telecommunications and financial services.

Better Business Bureau:

The better Business Bureau (BBB) is an agency through which business in the

United States and Canada can register for accreditation. The accreditation represents a

standard of business practice conducted by the companies who join with this agency.

Some of the common methods of exploitation are

1. Under weight and under measurementsnot measured or weighed correctly

2. Substandard Quality defective home appliances and medicines beyond expiry

date

3. High pricescharging above the retail price

4. Duplicate Articlesselling fake items in the name of the original

5. Adulteration and Impurityis done to get higher profits

6. Lack of safety Devicesabsence of inbuilt safeguards in appliances

7. Artificial Scarcityhoarding and black marketing

8. False and Incomplete Informationmisleading information on quality, durability,

and safety.

9. Unsatisfactory after sales Servicehigh cost items like electronics and cars

require constant and regular service.

10. Rough behavior and Undue conditionsharassment in getting LPG connection or

a telephone connection.


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Rise of consumer Awareness:

Kautilya was one of the earliest to write in his Arthasastra about the need for

Consumer awareness and protection. With the growth of private sector there is a greater

need for discipline and regulation of the market. Consumers must be aware of the sale and

purchase of goods, the health and security aspects also. Ensuring the safety of food items

sold in the market is essential these days.

Legal measures for consumer safety and consumer awareness must be

uniform, and transparent in terms of prices, quality of goods, and stocks. Consumers must

have the tools to combat malpractices and protect their rights.

Rights and Duties of Consumers:

As codified under the Indian Laws the Consumers have the following

Rights

1. Right to Safetyto protect against hazardous goods

2. Right to be informedabout price, quality, purity

3. Right to chooseaccess to a variety of goods and services at competitive prices.

4. Right to be heardconsumers interest and welfare must be taken care of

5. Right to seek Redressalprotection against unfair trade practices and settling

genuine grievances.

6. Right to Consumer Education.Knowledge about goods and issues related to

consumers.

Duties

1. Get a bill for every important purchase and also the Warranty card

2. Check the ISI mark or Agmark on the goods

3. Form consumer awareness groups

4. Make a complaint on genuine grievances.

5. Consumers must know to exercise their rights.


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Consumer protection Measure

1. Legislation concern ing Consumer Rights.

The Consumer Protection Act 1986 provides for consumer disputes redressal

at the state and national level. With the help of this law the agencies can solve grievances

in a speedy, simple and inexpensive manner. A separate department of consumer affairs

was set up at the state and central government. A three tier system of consumer courts at

the National, State and District levels were set up. These agencies have done good work

by handling lakhs of cases.

2. Public Distribution System.

To protect the poor from price rise and black marketing the government food

security to the poor by supplying essentials through the ration or Fair price shops.

3. Standardization of Products.

These are done to assure the quality of products. The ISI stamp on goods is

placed by the Bureau of Indian standards. This caters to industrial and consumer goods.

These goods can be trusted to confirm to specific standards. Agmark is meant for

Agricultural products.

At the International level the International Organisation for Standardization

(ISO) located in Geneva sets common standards. The FAO and WHO provide food

standards.

Legal formalities for filing a complaint.

The complaint can be written on plain paper. The supporting documents like

the warranty card must be attached. A lawyer is not required. We can argue our case.

Customer satisfaction, a business term, is a measure of how products and

services supplied by a company meet or surpass customer expectation. It is seen as a key

performance indicator within business and is part of the four of a Balanced Scorecard.

In a competitive marketplace where businesses compete for customers,

customer satisfaction is seen as a key differentiator and increasingly has become a key

element of business strategy.


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Measuring customer satisfaction

Organizations need to retain existing customers while targeting non-

customers; Measuring customer satisfaction provides an indication of how successful the

organization is at providing products and/or services to the marketplace.

Customer satisfaction is an abstract concept and the actual manifestation of the

state of satisfaction will vary from person to person and product/service to

product/service. The state of satisfaction depends on a number of both psychological and

physical variables which correlate with satisfaction behaviors such as return and

recommend rate. The level of satisfaction can also vary depending on other factors the

customer, such as other products against which the customer can compare the

organization's products.

Work done by Paraguayan, Zenithal and Berry (Leonard L) between 1985 and

1988 delivered SERVQUAL which provides the basis for the measurement of customer

satisfaction with a service by using the gap between the customer's expectation of

performance and their perceived experience of performance. This provides the researcher

with a satisfaction "gap" which is semi-quantitative in nature. Cronin and Taylor extended

the disconfirmation theory by combining the "gap" described by Parasuraman, Zeithaml

and Berry as two different measures (perception and expectation) into a single

measurement of performance relative to expectation.

The usual measures of customer satisfaction involve a survey with a set of

statements using a Likert Technique or scale. The customer is asked to evaluate each

statement in terms of their perception and expectation of performance of the service being

measured.

Methodologies

Am erican Customer Satisfaction Index (ACSI) is a scientific standard of

customer satisfaction. Academic research has shown that the national ACSI score is a

strong predictor of Gross Domestic Product (GDP) growth, and an even stronger

predictor of Personal Consumption Expenditure (PCE) growth. On the microeconomic

level, research has shown that ACSI data predicts stock market performance, both for

market indices and for individually traded companies.


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Increasing ACSI scores has been shown to predict loyalty, word-of-mouth

recommendations, and purchase behavior. The ACSI measures customer satisfaction

annually for more than 200 companies in 43 industries and 10 economic sectors. In

addition to quarterly reports, the ACSI methodology can be applied to private sector

companies and government agencies in order to improve loyalty and purchase intent. Two

companies have been licensed to apply the methodology of the ACSI for both the private

and public sector: CFI Group, Inc. applies the methodology of the ACSI offline, and

Foresee Results applies the ACSI to websites and other online initiatives. ASCI scores

have also been calculated by independent researchers, for example, for the mobile phones

sector, higher education, and electronic mail.

The Kano model is a theory of product development and customer satisfactiondeveloped in the 1980s by Professor Noriaki Kano that classifies customer preferences

into five categories: Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The

Kano model offers some insight into the product attributes which are perceived to be

important to customers. Kano also produced a methodology for mapping consumer

responses to questionnaires onto his model.

Improving Customer Satisfaction

Published standards exist to help organizations develop their current levels of

customer satisfaction. The International Customer Service Institute (TICSI) has released

The International Customer Service Standard. TICSS enables organizations to focus their

attention on delivering excellence in the management of customer service, whilst at the

same time providing recognition of success through a 3rd Party registration scheme.

TICSS focuses an organizations attention on delivering increased customer satisfaction

by helping the organization through a Service Quality Model.

TICSS Service Quality Model uses the 5 P's - Policy, Processes, People,

Premises, Product/Services, as well as performance measurement. The implementation of

a customer service standard should lead to higher levels of customer satisfaction, which in

turn influences customer retention and customer loyalty.


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How to measure customer satisfaction

Customer Satisfaction can be measured on a quantitative basis. Work done by

Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the

measurement of customer satisfaction with a service by using the gap between the

customer's expectation of performance and their perceived experience of performance.

This provides the measurer with a satisfaction "gap" which is objective and quantitiative

in nature.

Customer Satisfaction Research:

Customer Satisfaction research identifies how well an organization is

performing from the customers viewpoint. It allows any organization to understand howtheir customers are with the level of service they are providing at any point in time, and to

track how satisfaction levels change over time. It does not investigate the reasons or

reality behind the Customer Satisfaction, unlike Service Evaluation research but still

provides extremely valuable information such as highlighting an area where service

needs improving.

Tracking satisfaction levels can be particularly powerful when it concentrates

on identifying levels of satisfaction against the specific elements of service that most

matter to customers and which the organization can change; and where possible, compare

satisfaction levels across competing organizations. This can also be used to highlight

differences between customer segments, potentially identifying segments at greatest risk.

Customer Satisfaction research is often used as part of a wider project

designed to help an organization or company improve its service provision, customer

satisfaction and customer interaction.

7 tips for customer satisfaction:

It's a well known fact that no business can exist without customers. In the

business of Website design, it's important to work closely with your customers to make

sure the site or system you create for them is as close to their requirements as you can

manage. Because it's critical that you form a close working relationship with your client,

customer service is of vital importance. What follows are a selection of tips that willmake your clients feel valued, wanted and loved.


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1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a

customer. If you're not used to this sort of thing it can be a pretty nerve-wracking

experience. Rest assured, though, it does get easier over time. It's important to meet your

customers face to face at least once or even twice during the course of a project.

My experience has shown that a client finds it easier to relate to and work with

someone they've actually met in person, rather than a voice on the phone or someone

typing into an email or messenger program. When you do meet them, be calm, confident

and above all, take time to ask them what they need. I believe that if a potential client

spends over half the meeting doing the talking, you're well on your way to a sale.

2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days

for a response to an email or phone call. It might not always be practical to deal with all

customers' queries within the space of a few hours, but at least email or call them back

and let them know you've received their message and you'll contact them about it as soon

as possible. Even if you're not able to solve a problem right away, let the customer know

you're working on it.

A good example of this is my Web host. They've had some trouble with server

hardware which has caused a fair bit of downtime lately. At every step along the way I

was emailed and told exactly what was going on, why things were going wrong, and how

long it would be before they were working again. They also apologized repeatedly, which

was nice. Now if they server had just gone down with no explanation I think I'd have been

pretty annoyed and may have moved my business elsewhere. But because they took time

to keep me informed, it didn't seem so bad, and I at least knew they were doing something

about the problems. That to me is a prime example of customer service.

3. Be Friendly and Approachable

A fellow Site Pointer once told me that you can hear a smile through the

phone. This is very true. It's very important to be friendly, courteous and to make your

clients feel like you're their friend and you're there to help them out.


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There will be times when you want to beat your clients over the head

repeatedly with a blunt object - it happens to all of us. It's vital that you keep a clear head,

respond to your clients' wishes as best you can, and at all times remain polite and

courteous.

4. Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly

defined customer service policy is going to save you a lot of time and effort in the long

run. If a customer has a problem, what should they do? If the first option doesn't work,

then what? Should they contact different people for billing and technical enquiries? If

they're not satisfied with any aspect of your customer service, who should they tell?

There's nothing more annoying for a client than being passed from person to

person, or not knowing who to turn to. Making sure they know exactly what to do at each

stage of their enquiry should be of utmost importance. So make sure your customer

service policy is present on your site -- and anywhere else it may be useful.

5. Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card from a company you

were a client of? Have you ever had a personalized sign-up confirmation email for a

service that you could tell was typed from scratch? These little niceties can be time

consuming and aren't always cost effective, but remember to do them.

Even if it's as small as sending a Happy Holidays email to all your customers,

it's something. It shows you care; it shows there are real people on the other end of that

screen or telephone; and most importantly, it makes the customer feel welcomed, wanted

and valued.

6. Anticipate Your Client's Needs & Go Out Of Your Way to Help

Them Out

Sometimes this is easier said than done! However, achieving this supreme

level of understanding with your clients will do wonders for your working relationship.


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7. Honour Your Promises

It's possible this is the most important point in this article. The simple

message: when you promise something, deliver. The most common example here is

project delivery dates.

Clients don't like to be disappointed. Sometimes, something may not get done,

or you might miss a deadline through no fault of your own. Projects can be late,

technology can fail and sub-contractors don't always deliver on time. In this case a quick

apology and assurance it'll be ready ASAP wouldn't go amiss.

Customer satisfaction is a business term, a measure of how products and

services supplied by a company meet customer expectations. It has seen as a key

performance indicator within business.

DEFINITION:

Customer satisfaction may be defined as the degree to which there is match

between the customer's expectations of the product and the actual performance of the

product.

It depends on the products performance relative to the buyers expectations. If

the performance of the product falls short of his expectations the customer is dissatisfied.

If the performance of the product matches his expectations the customer is satisfied. If the

performance of the product exceeds his expectations the customer is highly satisfied.

Customer satisfaction can be achieved through quality, value and service.

In a competitive marketplace where businesses compete for customers,

customer satisfaction has seen as a key differentiator and increasingly has become a key

element of business strategy. For a customer centered company customer satisfaction is

both a goal as well as a major factor in the companys success. Companies that achieve

high customer satisfaction rating must make realize that highly satisfied customers

produce several benefits and they also talk favorably to others about the company and its

products and services.


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Factors influencing customer satisfaction

There are four district factors which influence the customer satisfaction.

1. Product basic design:

How familiar designers are with customers needs, what incentives drive the

designing, manufacturing, and quality control.

2. Sales activity:

What messages the company sends out in its advertising and promotion

programmers, how it chooses and monitors sales force intermediaries, and the

attitudes that it projects to the customer.

3. After-sales:Guarantees, parts and service, feedback, complaints, addling and

overall responsiveness to a customer with a problem.

4. Culture

Intrinsic values and benefits of the firm as well as the tangible and intangible

symbols and systems it uses to those values in to employee behavior at all levels.

3'cs of customer service mix:Service firms are using 4'cs of customer service mix to deliver superior customer

service.

1 Convenience2 Connectedness3 Choice

1. Convenience:

Convenience in customer service addresses fulfilling the consumer's need for

access to product information and filters such a vast amount of information. Interactive

technology facilitated convenience for customer to access the company's homepage on

internet.


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2. Connectedness:

The new interactive technology enables organizations to connect to their

perspective customers. Thus connectedness allows company to detect and respond

quickly the changing relation between new buyer and seller. Interactive technology

helps the company to develop new products by facilitating consumer research with

accuracy by tracking present trends in consumer life style. Purchasing and

expectations. Connectedness has also increased communication of internal customers

with internal suppliers and better -net worked employees respond quickly to

customers.

3. Choice:Interactive technology has facilitated consumers to choose to review all ranges

based on price, size, energy, source and other features. Now, in this interaction scenario,

both consumers and the producers are learning from each other and ultimately create

value to value creating process, it is useful to distinguish between static and dynamic

interaction television. We must leave the classic marketing driven CRM paradigm, with

its emphasis on right message/ right place/ right time. Customers will soon expect their

own ay time, anywhere paradigm. Customers want a highly individualized type of

interaction and knowledge that a company can recognize them and treat them as the same

individual.

How do buyers from their expectations? Their expectations are influenced by

their past buying experience, friends, and associates' advice, and markets' and

competitors' information and promises. If markets raise expectations too high, the buyer is

likely to be disappointed.

Growing share of customer :

Beyond simply retaining good customers markets want to constantly increase

their customers- the share they get of the customer's purchasing in their product

categories. They may do this by becoming the sole supplier of products the customer is

currently buying. Or they may persuade the customer to purchase additional company

productions. Thus, banks want a greater share of wallet. Supermarkets want to increase

their share of stomach car companies want a greater share of garage and airlines want

a greater share of travel.


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Cross selling:

One of the best ways to increase share of customer is through cross.-selling.

Cross- selling means getting more business from current customers of one product by

selling them additional offerings.

Building customer relationships and customer equity:

The importance is of not just finding customer, but of keeping and growing them

as well. Customer relationship management is oriented toward the long term. Today's

companies not only want to create customers, they want to own them for life, capture

their customer lifetime value, and build overall customer equity and result in lower

profits. Thus, the purpose of marketing is to generate customer value profitably.

Customer loyalty and retention:

Highly satisfied customers produce several benefits for the company. Satisfied

customer is fewer prices sensitive. They talk favorably to others about the company and

its products and remain loyal for a longer period. However, the relationship between

customer satisfaction and loyalty varies greatly across industries and

competitive situations.

The relationship between customer satisfaction and loyalty in give for

different markets. In all cases, as satisfaction, as satisfaction increases, so does loyalty.

Highly competitive markets, such as for automobiles Personal computers, show

surprisingly little difference between the loyalty of less satisfied customers and those who

are somewhat satisfied.

Even a slights drop from complete satisfaction can create an enormous drop in

loyalty. The companies must aim high if they want to hold on their customers. Customer

delight creates an emotional relationship with a product or service, not just a rational

preference. This in turn, creates high customer loyalty.


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Tools for measuring customer satisfaction

Compliant and suggestion system:

A customer centered organization makes it easy for its customers to deliver

suggestions and complaints. Many restaurants and hotels provide forms to reports their

likes and dislikes. A hospital could place suggestion boxes in the corridors, supply

comment cards to existing patients, and hire a patient advocate to handle patient

grievances. These information flows provide these companies with many good ideas and

enable them to act rapidly to resolve problems.

Customer satisfaction surveys:

Studies show that while customers are dissatisfied with one out of every four

purchases, less than 5% of dissatisfied customers will compliant. Most customers Will

buy less or switch suppliers rather than compliant. Therefore, companies cannot

use compliant levels as measure of customer satisfaction. Responsive companies obtain a

direct measure of customer satisfaction by conducting periodic surveys.

They send questionnaires or make telephone calls to a random sample of their

recent customer and ask if they were very satisfied, satisfied, indifferent, somewhat

dissatisfied, or very dissatisfied with various aspects of the company's performance.

There are also stock buyer's views on their competitor's performances.

While collecting customer satisfaction data, it is also useful to ask additional

questions to measure the customer's repurchase intention, this will normally be high if

the customer's satisfaction is high it is also useful to measure the customer's likelihood or

willingness to recommend the company and brand to other persons. A high positive word-

of-mouth score indicates that the company is producing high customer satisfaction.

Companies can hire persons to pose as potential buyers to report their findings on

strong and weak points they experienced in buying the Company's and competitors

products. These ghost shoppers can even pose certain problems to test whether the

company's personnel handle the situation well. Thus, a ghost shopper can complain about

a restaurant's food to test how the restaurant handles this complaint. Not only should

companies hire ghost shoppers, but managers themselves should leave their office from

time to time, enter company and competitor sales situations where they are unknown, and

experience firsthand the treatment they receive as 'customers'.


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Companies should contact customer who stopped buying or who have

switched to another supplier to learn why this happened. Not only is it important to

conduct exit interviews when customers first stop buying, but also to monitor the

customer loss rate, which, if increasing, clearly indicates that the company that the

company is failing to satisfy its customers.

Attracting and retaining customers:

Today companies are intent on developing stronger bond with their customers,

called customer relationship management (CRM). This is the process of managing

detailed information about individual customers and carefully managing all the customer

touch points with the aim of maximizing customer loyalty.

Attracting Customers:

It is not enough to be skillful in attracting new customers; the company must

keep them and increase their business. Too many companies suffer from high Customer

churns mely, high customer defection.

There are steps a company can take to reduce the defection rate. First, the

company must define and measure its retention rate. For a magazine the renewal rate is a

good measure of retention. Second, the company must distinguish the causes of

customers attrition and identify those that can be managed better.

Third, the company needs to estimate how much profit it loses when it loses

customers. In the case of an individual customer, the lost profits is equal to the customers

Lifetime value that is, the present value of the profit stream that the company would have

realized if the customer had not defected prematurely.

Fourth, the company needs to figure out how much it would cost to reduce the

defection rate. As long as the cost is less than the lost profit, the company should spend

the money.

Customer retention:

Most marketing theory and practice centers on the art of attracting new

customers rather than on retaining and cultivating existing ones. The emphasistraditionally has been on making sales rather than building relationships;


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on pre selling and selling rather than caring for the customer afterward. A

company would be wise to measure customer satisfaction regularly, because the key to

customer retention is customer satisfaction.

Today, more companies are recognizing the importance of satisfying and

retaining customers. A highly satisfied customer stays loyal longer, buys more as the

company introduces new products and upgrades existing products, talks favorably about

the company and its products, pays less attention to competing brands and is less sensitive

to price, offers product or service ideas to the company, and cost less to serve than new

customers because transactions are routine.

Some Cautions in Measuring Customer Satisfaction:

When customers rate their satisfaction with an element of the company's

performance- say, delivery - the company needs to recognize that customers vary in how

they define good delivery. It could mean early delivery, on-time delivery, order

completeness, and so on. Yet if the company had to spell out every element in detail,

customers would face a huge questionnaire.


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OBJECTIVES OF THE STUDY

1. To find out the consumer satisfaction level of the Amaravathi Textiles pvt.ltd.

2. To find out the factors influencing the purchase and buying behavior for

Amaravathi Textiles pvt.ltd.

3. To find out and analyze the competitive position of Amaravathi Textiles pvt.ltd.

4. To offer suggestions regarding quality aspects of Amaravathi Textiles pvt.ltd.

5. To analyze and understand methods for promotion of Amaravathi Textiles pvt.ltd.


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NEEDS OF STUDY:

1. It is highly needed for any business organiztion to know estimate customersatisfaction level

2. It is helpful to promote goods& servces effectively & increase marking sharp3. It is help full to know the changing needs & tastes of customers4. It is needed to evaluate its customer satisfaction level place its product in market5. It is needed to retain existing customers & enhance potential customer


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SCOPE OF THE STUDY

The present study Customer Satisfaction towards Amaravathi Textiles has

undertaken to understand the town consumption pattern and also on what factors they are

buying the products. The sample was collected and analyzed to know the awareness level

among the respondents in rural areas (Themmapuram, Ganapavaram, Chilakaluripet and

Edlapadu)

The sample size was taken 200 and the consumption pattern of the respondents

was studied. It was found that the awareness level was negligible. Amaravathi Textiles

pvt.ltd has a distribution existing of retailers, Wholesalers. The regular customer of

Amaravathi Textiles pvt.ltd were consulted through a questionnaire to understand theirpurchasing and consumption pattern apart from this, those respondents who did not use

Amaravathi Textiles pvt.ltd were also contacted and a study of their perception towards

Amaravathi Textiles pvt.ltd as a cooking oil was observed.

Since there is every chance of the respondents being influenced by personal

bias and the results can not apply to the whole universe. As no study of the competitors

strategies was made it can not be accurately said who, the major leaders in the market

rate.


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METHODOLOGY

For analysis & interpretation data can be collected either from primary source

or secondary source it is also called as primary data and secondary data.

Primary data:

Primary data re those which are collected a fresh and for the first time and thus

happen to be original. The popular ways to collect primary data consist of surveys,

interview and focus groups, which shows that direct relationship between potential

customers and the companies.

In primary data collection, we collect the data yourself using methods such as

interview and questionnaires. The key point here is that the data we collect is unique and

our research and until we publish, no one else has access to it.

There are many methods of collecting primary data and the main methods

include:

1 Questionnaire2 Interviews3 Focus group interviews4

ObservationThe primary data, which is generated by the above methods, may be

qualitative in nature (usually in the form of words) or quantitative (usually in the form of

number or where you can make counts of words used).

Questionnaires:

A questionnaire was prepared to collect data from the consumers through

interviews. A questionnaire consists of a number of questions printed or typed in a

definite order on a form or set of forms. Questionnaires are a popular means of collectingdata, but are difficult to design and often require many rewrites before an acceptable

questionnaire is produced.


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Secondary data :

Secondary data means data that already available i.e. they refer to the data

which have already been collected and analyzed by someone else. When the researcher

utilizes secondary data, then he has look into various sources from where he can obtainthem. The researcher must be very careful in using secondary data usually published data

are available in:

1 Companys records / Financial statements2 Trade Journals3 Web sites

In this secondary data I have collected information regarding Amaravathi

Textiles pvt.ltd from web sites and company records.

Sampling design :

A sample design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure the researcher would adopt in

selecting items for the sample. Sample design may as well lay down the number of items

to be included in the sample. i.e., the size of the sample. sample design is designed before

data are collected.

Sampling size:

This refers to the number of items to be selected from the universe. The

size of sample should be excessively large nor too small. The sample taken for this

study is 100,

Sampling unit:

A decision has to be taken concerning a sampling unit before selecting sample.

Sampling unit may be geographical one such as stage, district, village, etc., or a

construction unit such as house, flat etc., or it may be a social unit such as family, club,

school etc., or it may an individual.


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Sampling Method for study :-

The sample method or plan is the procedure or way in which the sampling hasbeen does.

As are project or research can be done taken to consideration the whole of thepopulation or universe, the concept of sampling is used As per the concept of sampling, only some sample is taken from the universe in

order to find out the result.

Convenience method is taken as the sampling method.

Convenience method :-

This method of sampling involves selecting the samples elements using

some convenient going through the rig our of sampling method the researcher may

use of any convenient base to select the requires number of samples.


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LIMITATIONS

1 The study is confined to the Amaravathi Textiles pvt.ltd products at Martur. So itcannot be considered for the entire population.

2 There is chance of bias in the information given by the respondents.3 The sample size is limited to 100 respondents only. So the actual conclusion

cannot be made with this limited data.

4 As the time spent on project is only 5 weeks it is not possible to go in to detalistudy

5 The collected inform action is through primary data


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INDUSTRY PROFILE

India Textile Industry is one of the leading textile industries in the world. Though

was predominantly unorganized industry even a few years back, but the scenario started

changing after the economic liberalization of Indian economy in 1991. The opening up of

economy gave the much-needed thrust to the Indian textile industry, which has now

successfully become one of the largest in the world. India textile industry largely depends

upon the textile manufacturing and export. It also plays a major role in the economy of

the country. India earns about 27% of its total foreign exchange through textile exports.

Further, the textile industry of India also contributes nearly 14% of the total industrial

production of the country. It also contributes around 3% to the GDP of the country. India

textile industry is also the largest in the country in terms of employment generation. It not

only generates jobs in its own industry, but also opens up scopes for the other ancillary

sectors. India textile industry currently generates employment to more than 35 million

people. It is also estimated that, the industry will generate 12 million new jobs by the year

2010.

Various Categories

Indian textile industry can be divided into several segments, some of which can be listed

as below:

Cotton, Silk & Woolen Textiles Readymade Garments Hand-crafted Textiles & Jute and Coir

The Industry

India textile industry is one of the leading in the world. Currently it is estimated to

be around US$ 52 billion and is also projected to be around US$ 115 billion by the year

2012. The current domestic market of textile in India is expected to be increased to US$

60 billion by 2012 from the current US$ 34.6 billion. The textile export of the country

was around US$ 19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in

2007-08.


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Table 3.1

YearArea in lakh

hectares

Production in lakh bales of

170 kgs

Yield kgs per

hectare

1950-51 56.48 30.62 92

1960-61 76.78 56.41 124

1970-71 76.05 47.63 106

2000-01 78.24 78.60 170

2001-02 74.39 117.00 267

2002-03 85.76 140.00 278

2003-04 87.30 158.00 308

2004-05 76.67 136.00 302

2005-06 76.30 179.00 399

2006-07 87.86 243.00 470

2007-08 86.77 244.00 478

2008-09 91.44 280.00 521

2009-10 94.39 315.00 567

2010-11 93.73 290.00 526


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Though during the year 2008-09, the industry had to face adverse agro-climatic

conditions, it succeeded in producing 290 lakh bales of cotton comparing to 315 lakh

bales last year, yet managed to retain its position as worlds second highest cotton

producer.

STRENGTHS

Vast textile production capacity Large pool of skilled and cheap work force Entrepreneurial skills Efficient multi-fiber raw material manufacturing capacity Large domestic market Enormous export potential Very low import content Flexible textile manufacturing systems

WEAKNESS

Increased global competition in the post 2005 trade regime under WTO Imports of cheap textiles from other Asian neighbors Use of outdated manufacturing technology Poor supply chain management Huge unorganized and decentralized sector High production cost with respect to other Asian competitors


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Cotton Exports from India

Table 4.2

Year

Quantity (in lakh bales of

170 kgs) Value (in Rs./Crores)

1996-97 16.82 1655.00

1997-98 3.50 313.62

1998-99 1.01 86.72

1999-00 0.65 52.15

2000-01 0.60 51.43

2001-02 0.50 44.40

2002-03 0.83 66.31

2003-04 12.11 1089.15

2004-05 9.14 657.34

2005-06 47.00 3951.35

2006-07 58.00 5267.08

2007-08 85.00 8365.98

2008-09 89.00 10520.52

2009-10 72.00 NA


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Cotton Imports from India

Table 4.2

YearQuantity (in lakh bales of 170

kgs.)

Value (Rs./Croress)

1996-97 0.30 56.42

1997-98 4.13 497.93

1998-99 7.87 772.64

1999-00 22.01 1967.92

2000-01 22.13 2029.18

2001-02 25.26 2150.01

2002-03 17.67 1789.92

2003-04 7.21 880.10

2004-05 12.17 1338.04

2005-06 5.00 695.77

2006-07 5.53 752.29

2007-08 6.50 986.33

2008-09 7.00 1085.32

2009-10 5.00 NA


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Current Facts on India Textile Industry

India retained its position as worlds second highest cotton producer. Substantial increase of Minimum Support Prices (MSPs). Cotton exports couldnt pick up owing to disparity in domestic and international

cotton prices.

Imports of cotton were limited to shortage in supply of Extra Long staple cottons.

The textile industry occupies a unique place in our country. One of the earliest to

come into existence in India, it accounts for 14% of the total Industrial production,

contributes to nearly 30% of the total exports and is the second largest employment generator

after agriculture. Textile Industry is providing one of the most basic needs of people and the

holds importance; maintaining sustained growth for improving quality of life. It has a unique

position as a self-reliant industry, from the production of raw materials to the delivery of

finished products, with substantial value-addition at each stage of Processing; it is a major

contribution to the country's economy. Its vast potential for creation of employment

opportunities in the agricultural, industrial, organized and decentralized sectors & rural and

urban areas, particularly for women and the disadvantaged is noteworthy. Although the

development of textile sector was earlier taking place in terms of general policies, in

recognition of the importance of this sector.

The textile industry is undergoing a major reorientation towards non-clothing

applications of textiles, known as technical textiles, which are growing roughly at twice rate

of textiles for clothing applications and now account for more than half of total textile

production. The processes involved in producing technical textiles require expensive

equipments and skilled workers and are, for the moment, concentrated in developed

countries. Technical textiles have many applications including bed sheets; filtration and

abrasive materials; furniture and healthcare upholstery; thermal protection and blood-

absorbing materials; seatbelts; adhesive tape, and multiple other specialized products and

applications. The Indian Textile industry has been undergoing a rapid transformation and is in

the process of integrating with the world textile trade and industry. This change is being

driven by the progressive dismantling of the MFA and the imperative of the recently signed

General Agreement Trade & Tariff. In this bold, new scenario, India has to move beyond itsrole of being a mere quota satisfying country.


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Indian textileenjoys a rich heritage and the origin of textiles in India traces back to

the Indus valley Civilization where people used homespun cotton for weaving their clothes.

Rigveda, the earliest of the Veda contains the literary information about textiles and it refers

to weaving. Ramayana and Mahabharata, the eminent Indian epics depict the existence of

wide variety of fabrics in ancient India. These epics refer both to rich and stylized garment

worn by the aristocrats and ordinary simple clothes worn by the common people. The

contemporary Indian textile not only reflects the splendid past but also cater to the

requirements of the modern times.

There has been a distinct and positive shift from quality to quality. Earlier Indian

textiles were considered cheap and of low quality. The industry was at that time driven by

large volumes, which were of paramount importance. The best quality was produced in

Europe and Japan. Since then, India has come a long way, emerging as a manufacturer of

high quality yarns and fabrics. The leading mills such as Raymonds, Read & Taylor, Aravind

mills etc. Improved their quality standards prevailing into the world.

Implementation of New Equipment

The textile industry has also become a high technology. The textile industry has

also become a high technology industry. No body earlier could have concerned that the

industry would require top of the line technical skills. Present day textile machinery is fullycomputerized and needs totally new skills to effectively manage it.

New Marketing Trend

On the marketing side, there has been a total change , with almost all players in the

industry extending their reach to international markets. The impact of these trends on the

textile industry is profound. Increasingly any company cannot sustain itself only on local

market demand or only the exports. One has to look at the global markets in totality.Competition

This compulsion to access and compete in international markets has been perhaps

one of the saving grace for the industry. Clearly the ability and necessity of meeting

global competition head on, has forced the industry to upgrade its technology, product

quality, cost structure and marketing skills. Truly, we have learnt more from the

competitions than from ourselves.
http://www.india-crafts.com/textile/india-textile.htmlhttp://www.india-crafts.com/textile/india-textile.htmlhttp://www.india-crafts.com/textile/india-textile.html


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Decentralized sectors

Another visible change relates to the scale of operations. Earlier textile mills were

generally reasonably large size becomes a non-constraining factor with the advent of

power loom sector, which enabled small weavers to make and market their own fabrics in

direct competition with large mills.

Technocrats

Another shift in the industry is regarding entrepreneurship. Technocrats have been

able to become possible to have small size spinning, weaving and processing mills. All

this was earlier the domain, solely of large businesses.

Cost Consciousness

The greater competitive pressure have highlighted the need to control cost of

every type of whether it be energy, water or labor all of which were earlier taken for

granted now every mill is highly cost conscious and industrial engineers keep detailed

trace of every cost parameter including energy consumption including energy

consumption, waste control, machine efficiency and productivity. No doubt, this will

have to be an ongoing exercise. Since cost have to be ruthlessly and persistently brought

down.

Labor intensive industry

The textile industry being labor intensive, is slowly migrating from high cost

countries, such as the United states, Europe, Japan, Australia, Taiwan and Korea. All

these countries were at one time leading textile manufacturers. But with the high labor

cost, capacities in these countries are being diverted elsewhere. This is happening even as

the developed economies make large investments in better machinery and automatism .


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Labor cost comparison (Europe & India)

Table 4.4

Labor Europe Rs/Hour India

Rs/Hour

Skilled workers 750 20.00

Operating personnel 625 12.50

Unskilled workers 500 6.25

Operating hours per annum 6750 48.75

Indian Textile Industry has some inherent strength

Tradition in Textiles and long operating experience Large and growing domestic market

Strong raw material base Production across entire textile value chain Stable, low-risk economy, safe for business growth Easy availability of abundant raw materials like cotton, wool, silk, jute Widely prevalent social customs Variety of distinct local culture Constructive geographic and climatic conditions


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Table showing the Indias Competitiveness with Other Country

There is no denying India is competitive enough and will become even more

competitive once its infrastructure issues are sorted out.

Table 4.5

Key countries / regions Key positives Key negatives

China Efficient, low cost,

vertically integrated

Growth at the cost of

profits

India, Pakistan Verticallyintegrated, low cost

Lacks economies of scaleand infrastructure support

Mexico (NAFTA),

Turkey

Proximity to market,

duty and quota free

Lack China and Indias

degree of competitiveness

ASEAN (Vietnam,

Cambodia,

Indonesia)

Cheap labor No other cost or locational

advantage

AGOA (African)

countries,

Bangladesh

Quota and tariff

free, cheap labor

Lacks integration and

China and Indias degree of

competitiveness

Hong Kong, Korea,

Taiwan

Trading hubs

proximity to China

No cost advantage,

protected currently byquotas

USA and EU Non-quota barriers

likely to prove

irritant to imports

US$ 400 bn trade loss

likely ov


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Indiasworld market share in Textile Industry

Graph 3.1

The world market share

In spite of the Chinese dominance, India has a fair opportunity to grab a

substantial stake in the projected garment market share. According to PHD Chamber of

Commerce and Industry (PHDCCI), post-MFA, India's market share in the US is

expected to go up to 15 per cent from the present 4 per cent. In the EU, the market share

increase is expected to be 50 per cent from the current 6 per cent to 9 per cent.

The world population is increasing at the rate of 1.8% per annum between 1980 to

2000 while it was 1.4% between 1960 to 1980. Per capita fibres consumption showed an

increase of 0.9% between 1980 to 2000 while it was 1.8% between 1960 to 1980. World

fibre needs will increase by 2.4% till 2001. The figure for 1960 to 1980 was 3.6%.


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Table 3.6

Particulars UNIT 1960 1980 2000 1960-

80

Trend

1980-2000

Trend

World

population

(BIU) 3.0 4.4 6.2 +1.4 +1.8

Per capita

fibre usage

(KG) 5.0 6.8 7.7 +1.8 +0.9

Fibre need/

billion

Population

(MT) 15.0 30.0 48.0 +15.0 +18.0

Growth rate in (AVG)

Consumption per year annual increase

The above figure an attempt is made to analyse the trends in the world fibre type

usage between 1960 to 2000. Natural fibre usage has dropped from 77% in 1960 to 44%

in 2000 (projected) while man made non cellulose fibres show an increase from 5% in

1960 to 47% in 2000 (projected). This is a phenomenal increase and is due to mainlyadvent of polyester its multiple uses and its popularity. As further analysis the man made

fibre production shows that in the man made fibre are polyester has increased its share

from 42% in 1986 to 55% in 2000 (projected). Nylon, Rayon and Acrylic show a

decreasing trend in the percentage. But is absolute terms they registered an increase.


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Indian Textiles targets to achieve by end of the 11th

Five year Plan

(2007-2012)

Market size of US$ 115 Billiono Export target US$ 55 Billiono Domestic market US$ 60 Billion

India market share in world textiles trade to grow from 3% to 8 % 12 Million additional jobs Investment Rs.150,600 Crore

Textiles Export Target (In Billions)

Table 3.7

Year ( April

March)

Target Achievement

2009-10 19.73 19.62*

2008-09 15.565 17.80

2007-08 15.16 13.04

2006-07 16.31 13.16

2005-06 15.05 12.41

2004-05 13.72 10.76


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Textile scenario

Developing countries with both textile and clothing capacity may be able to

prosper in the new competitive environment after the textile quota regime of quantitative

import restrictions under the Multi-Fibre Arrangement (MFA) came to an end on 1st

January, 2005 under theWorld Trade Organization (WTO) Agreement on Textiles and

Clothing.

As a result, the textile industry in developed countries will face intensified

competition in both their export and domesticmarkets.However, the migration of textile

capacity will be influenced by objective competitive factors and will be hampered by the

presence of distorting domestic measures and weak domestic infrastructure in several

developing and least developed countries. India must take adequate measures for

capturing its market by promote the development in this sector

Table 3.8

S.No Broad External changes Industry specific

changes

1. Demographic Trends Markets & Marketing

2. Changing taste & preferences

.i.e. Fashion

Technological

3. Understanding hidden & fresh

needs

Engineering

4. Invention of new fibre materials

motivated by market needs

Human resources
http://www.economywatch.com/world-trade-organization/http://www.economywatch.com/world-trade-organization/http://www.economywatch.com/world-trade-organization/http://www.economywatch.com/market/http://www.economywatch.com/market/http://www.economywatch.com/market/http://www.economywatch.com/market/http://www.economywatch.com/world-trade-organization/


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COMPANY PROFILE

AMARAVATHI TEXTILES Group with its diverse interests in core areas is surging

ahead with drive and determination. with all the companies superbly integrated in one single

campus, the group harnesses an entrepreneurial spirit, state-of-art technology and financial

strengths to emerge as an industrial force to reckon with.

AMARAVATHI TEXTILES GROUP is driven by a passion be the best in al the

areas it operates. Backed by a high density of advanced technology and sophisticated

manufacturing facilities, its only natural that the group is leaf fogging for an outstanding

future. The total group turnover is around 300 crores per annum.

ABOUT THE COMPANY

The founder of AMARAVATHI TEXTILES who has drawn its future plannedgrowth. A Man whose spirit of Dynamism has helped the group to achieve manifold

growth. Thanks to his pioneering vision, the groups operation grew and market

extended. Today AMARAVATHI TEXTILES is a multi-activity group with a

Rs.300crores turnover, comprising 6 divisions with diverse interest in..

COTTON SPINNING TEXTILE

A TRADITION OF ENTERPRISE

Sri Kandimalla Srinivasa Raoleft in pursuit of a dream. With just two bags of grain,

he ventured to cultivate 100 acres of land. And with the tell- tale sprite gleaming in his eyes.

His valueoriented strategy and adventurous sprit bore fruit consistently. His farmland grew

and from a model farmer he evolved into a dynamitic entrepreneur. He proved that success

starts with a proactive attitude.

A vigorous confidence that one can effectively integrate ideas with enterprise.

Sadinenis first trip to RUSSIA gave him the power of conviction to stride boldly into the

industrial environment. And valiantly into the future.


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THE BIRTH OF A DREAM

Sri Kandimalla Srinivasa Rao set up a cotton ginning mill in 1984. The operations

grew rapidly to lay solid foundations for giant surging ahead in diverse environments. To the

group, the future is rich in possibilities. A future where the best of minds and men will work.

And will have the most resources to draw upon. Its vision of the future where change will be

embraced as the very basis of opportunity and endeavor.

The managing Director of AMARAVATHI TEXTILES (P) LTD. Relentless pursuit

of perfection is the hallmark of this young and dynamic B.Tech Textiles Graduate.

His rich and professionals experience in the spinning line enabled AMARAVATHI

Textiles Spinning Division to scale new heights. His enterprising zeal and cautious planning

have been the pivotal points in driving the group towards trailblazing progress. Mr.

Kandimalla Srinivasa Rao is committed to labour welfare and his visionary leadership has

earned him a wealth of respect among the employees of AMARAVATHI. Astute

professionals by habit, he is forever aiming higher. He is widely acknowledged as the man

who has fostered a can do culture which starts at top and filters down to every employee at

AMARAVATHI TEXTILES. He is powered by just one belief..

Success is a matter of excellence, and not chance.

Social service has always been a matter of prime concern to him. Which is why he

perennially strives to provide the best education and undertake multi-pronged schemes

towards the betterment of the community. While nurturing a corporate culture that encourages

individual growth, he is committed to a vision that encompasses everybodys enlistment.

COTTON DIVISION

The COTTON GINNING & PRESSING UNIT was started in 1984. The Division

maintains 54 Gins and 1 Hydraulic press with an annualized turnover of Rs.40crores. The

company firmly believes that unmatched capabilities plus an in-depth knowledge of various

cotton growing areas alone can put it on the path to speedy growth. This Division also

processes India s best long staple cotton DCH-32 at Dharwad Branch, Karnataka.

The division is poised to excel and is confidently geared to post an impressive growth

rate. This Division has stayed big thinking big and keeping an eye on the details that sustainquality.


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SPINNING DIVISION

The AMARAVATHI TEXTILES SPINNING MILLS DIVISION has been a trend

setter ever since its commissioning. Established in 1991, the plant s tarted commercial

production of World class yarn to the requirement of global markets as well as indigenous

markets. Conceived in a sprawling area in the midst of rich cotton fields of GUNTUR District,

the division is on its way to dizzy heights on the cotton horizon. We are having a capacity of

60,000 spindles. The impressive performance reflects AMARAVATHI TEXTILESS

commitment to continue machine modernization. The division through a concerted Endeavour

assures exemplary quality by undertaking rigid quality control measures which start right at

the at the stage of procuring raw material ingredients down to the last level. It is the dedicated

quality consciousness that as paved the way for a phenomenal demand for AMARAVATHI

TEXTILES products.

All this translates into utmost customer satisfaction. The unit is enviably well-

entrenched as a leading player for the highly competitive export markets ever since 1996.

AMARAVATHI TEXTILES magnificent obsession with exports has won for it important

international markets. In fact, over 70% of the produce was exported major European

countries.

In recognition of its excellent quality conforming to the highest international standards, the

products of Amaravathi have won widespread appreciation and repeat orders. By exporting

world class cotton yarn globally, the mill is leap fogging for the further growth. The thrust on

higher capacity utilization, uncompromising productivity standards, quality management,

astute focus on niche markets, prompt delivery schedules combined with competitive pricing

have resulted in higher sales and profits.

AMARAVATHI VALUES:

v Promptness in execution.

v Transparency in Business

v Integrity in Negotiation

v Innovation that fuels growth


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ENVIRONMENTAL PROTECTION AND SAFETY A TOP

PRIORITY

Amravati is committed to the conservation of the environment. Our manufacturing

facilities comply with stringent environmental norms and are equipped for effluent treatment.

The Amaravathi Dyeing Plant uses reverse osmosis with a multi effect vaporator to qualify as

a zero discharge unit.

COUNT RANGE : We are running from 50 to 100 counts in single well as double

(TFO) yarns. We are running compact yarn with 12000 spindles (suessen). We will achieve

25000 spindles compact yarn shortly.

TEXTILE DIVISION

The Division was started in 2005. The Units equipped with modern imported

machinery. Presently we are running with 48 Brand New Looms. We have sucker wrapping

and sizing. Total plant planned for 98 Looms. In phased manner we are expanding the Looms

capacity.

STATEMENT OF ACCOUNTING POLICIES GENERAL:

The Financial Statements are prepared on historical cost convention and in accordance

with generally accepted accounting practices.

FIXED ASSETS:

Fixed assets are stated at historical cost less accumulated depreciation.

INVESTMENTS:

Long term Investment is stated at cost and income thereon accounted for on accrual.

Provision towards decline in the value of Long Term Investments is made only when such

decline id other than temporary.

DEPRECIATION:

Depreciation is a written off in accordance with the provisions of schedule XIV of the

companies Act 1956 as follows:

Under straights Line Method in respect of the assets of Spinning, Power and

Textile Divisions.


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Under written down valve method on the assets of all other divisions of the

company.

INVENTORIES:

Valuation of inventories is made as follows

Raw-Material and Finished goods at cost or net realizable valve whichever is

lower.

Work-in-Progress at cost inclusive of direct production overheads.

Stores and spares at cost.

Electronic power at net releasable valve

Excise Duty liability on finished goods is accounted for as and when goods are cleared

from factory and there is no liability on closing stock of finished goods at the year end.

SALES: Sales are inclusive of Excise Duty.

TAXES ON INCOME:

Current taxes are determined as per the provisions of income Tax Act 1961 in respect

of taxable income for the year ended 31st march, 2003.

Differed tax liability is recognized, subject to the consideration of prudence on timing

differences, being the difference between taxable incomes and accounting that originate in one

period and are capable of reversal in one or more subsequent periods.

SEGMENT REPORTING:

The accounting policies adopted for segment reporting are in line with the accounting

policies of the company with the following additional policies for segment reporting.

Inter-segment Revenue has been accounted for based on the market related prices.

Revenue and Expenses other than interest have been identified to segments on the basis

of their relationship to the operating activities of the segment. Revenue and expense which

related to the enterprise as a whole and are not allocable to segments on a reasonable basis

have been included under Unallocated head.


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RETIREMENT BENEFITS:

The Company makes regular monthly contribution to provident fund which are

deposited with the Government and Group term Insurance is routed through L.I.C, and are

charged against the revenue. The company has taken Group Gradually (Cash Accumulation)

scheme with Life Insurance Corporation of India . The premium on policy and the difference

between the amounts of gratuity paid on retirement and recovered from the Life Insurance

Corporation of India debited to profit and Loss Account. Leave encashment is accounted as

and when the employees claimed and paid.

PROPOSED DIVIDEND:

Provision is made in the account for the dividend payable (including of all tax

thereon) by the company as recommended by the Board of Directors, Pending approval of

the shareholders at the annual General Meeting.

CONTIGENT LIABILITIES:

Contingent Liabilities are not recognized in the accounts, but are disclosed after a

careful evaluation of the concerned facts and legal issues involved.

Amaravathi Product: YARN

Table No 3.9

Commercial performance

Table 2.2: (in rupees)

Year Sales Turnov

customer satisfaction amaravathi

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