project report of vkc

5/25/2018 project report of VKC

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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 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 criterias 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 criterias that is rural and urban have been taken into consideration 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 are now and if 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 of footwear were made of 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 thesuccessors 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 pharaohs 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 toanother 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

streets. Today they are worn strictly for fashions sake. The poulaine, with its ridiculously

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 imagination-

the colors and materials of shoes today demonstrate that. Looking at shoes from different

parts of the world, one can see undeniable similarities .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 footbinding 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.


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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 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 thatmanufacture 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


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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 about6.5% 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


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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


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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.


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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.


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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 massproduction 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 baseand 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 gents footwear while the worlds

major production is the ladies footwear.in the case of chappals and sandals, use of non-

leather 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 in-

house 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


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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 1970s 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 manufacturingindustry. 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 ens

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 623

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 mens 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 mens 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.

Indias share in global leather footwear imports is around 1.4% major competitors in theexport 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


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centers 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 theleading footwear manufacture especially in southern

region of India. The group established on (August17) 1984 with a nominal capital andfew 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 plant and machinery. Quality at low

price made the VKC groups products popularin 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 SouthCentral 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 wereinducted 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 footwears. 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 days 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 Footwears 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 Prideand 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 customers prefer the injected EVA Footwears 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 footwears. 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 moldingMachine, 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

Show fitting & RivetFinishing

Finishing

PrintingQuality Checking

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 continuousmarket 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 doesnt 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. VKCs 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


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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 Mediaincludes 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.

Consumers 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


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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 andsafety. 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 thatsused 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

DIRECTORS

MANAGER

ASSISTANT MANAGER

PRODUCTIONFINANCE

DEPARTMENT HEADPRODUCTION HEAD

EXECUTIVE

SUPERVISOR

COORDINATOR

SKILLED WORKERS

UNSKILLED WORKERS

JUNIOR EXECUTIVE

SALES

DEPARTMENT HEAD

EXECUTIVE

JUNIOR EXECUTIVE

MATERIALS

DEPARTMENT HEAD

EXECUTIVE

JUNIOR EXECUTIVE

JUNIOR EXECUTIVE

EXECUTIVE

DEPARTMENT HEAD

PERSONNEL

MANAGING DIRECTOR


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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 consumers 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.


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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 thingthat 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 verypromptly 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 well-

known 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 usedwere tables, bar graphs and percent.

LIMITATIONS OF THE STUDY

The analysis is based on customersopinion 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 didnt provide some of the

details


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Graph showing number of respondents who heard about VKC brand before

receiving this questionnaire.

0

10

20

30

40

50

60

70

MALE FEMALE

Male 64

Female 36

TOTAL 100


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

questionnaire .

Yes (heard) 100

No (not heard) 0

Total 100

0

20

40

60

80

100

120

YES NO


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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.


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GRAPH SHOWING HOW RESPONDENTS HEARD ABOUT BRAND VKC

0

5

10

15

20

25

30

35

40

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.

0

5

10

15

20

25

30

35

40

VKC PRIDE SLIPPONS VKC LITE VKC TRENDZ SMARTAK STYLE


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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.

0

5

10

15

20

25

30

35

40

45

50

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

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.

0

10

20

30

40

50

60

70

YES NO


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Graph showing whether celebrity play a role in purchase decision:

YES 12

NO 88

TOTAL 100

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.

0

10

20

30

40

50

60

70

80

90

100

YES NO


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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.

0

5

10

15

20

25

30

35

40


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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.

0

5

10

15

20

25

30

35

40

45

50

VERY HIGH HIGH AVERAGE LOW VERY LOW


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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.

0

10

20

30

40

50

60

70

80

BELOW RS 200 RS200 TO RS 300 ABOVE RS 300


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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.

0

10

20

30

40

50

60



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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.

0

5

10

15

20

25

30

35

40

45

BEST QUALITY BEST PRICING BEST MODEL COMFORT


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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.

0

10

20

30

40

50

60

70



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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 youngstersattention. 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 Astudy 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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BIBLIOGRAPHY

Textbooks:

Marketing management by Philip Kotler(Eleventh edition, published by pearson education ltd)

Internet facilities:

www.veekesy.com

www.wikipedia.com
http://www.veekesy.com/http://www.veekesy.com/http://www.veekesy.com/

project report of vkc

Documents

crafted footwear

resistant footwear

commoners footwear

vkc products

early pieces of footwear

project report of vkc

brand awareness of vkc

fashion oriented footwear