Effect Of Discounted Apparel Brands On Local Retailers_like : Charlie, Koutons Etc.

CHAPTER – 1 OBJECTIVES –

1.

To study the effect of discounted apparel brands on local retailers This is the main objective of the research i.e. to find the effect of the entry of

new players offering discounted apparel brands on the local and small players.

2. To analyse the potential of discounted apparel brands in small cities – Our objective was also to find out the potential present in these brands that whether these discounted brands can achieve their desired sales level or not, whether the public of small cities would accept them or reject them.

3. To analyse the sales level & profits of discounted apparel brands in long-term – To analyse the sales level of these brands and comparison of their sales level with that of the competitors and also to find out their approximate profits.

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4. To study the customer preferences about these brands – To study the preferences of consumers regarding these brands i.e. whether they prefer the local brands or these discounted brands.

5. To find out the proper strategies for local retailers – To find out the proper strategies for the local retailers when these brands come so that they could maintain their sales level in this cut-throat competiton.

6. To compare the sales level of discounted brands and local retailers – We were also interested in comparing the sales level of these brands with that of the local retailers and also the effect of these brands on their sales level & also the sales growth of both the traders.

7. To study the customer satisfaction level with these brands – This should be objective of every researcher to find out the customer satisfaction level with both the branded and local retailers. For this we have used then personal opinion of the salesmen of these stores.

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8. To find out the truth with the help of the employees working in these branded outlets – We also tried to find out the truth behind these brands, their strategies, owner’s perception about his brand as well as about the perception of the customer that how a customer perceives the brand.

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CHAPTER – 2 METHODOLOGY – A.EXPLORATORY RESEARCH Exploratory research is a type of research conducted because a problem has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist.

Exploratory research often relies on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors, and more formal approaches through in-depth interviews, focus groups, projective methods, case studies or pilot studies. The Internet allows for research methods that are more interactive in nature: E.g., RSS feeds efficiently supply researchers with up-to-date information; major search engine search results may be sent by email to researchers by services such as Google Alerts; comprehensive search results are tracked over lengthy periods of time by services such as Google Trends; and Web sites may be created to attract worldwide feedback on any subject.

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The results of exploratory research are not usually useful for decision-making by themselves, but they can provide significant insight into a given situation. Although the results of qualitative research can give some indication as to the "why", "how" and "when" something occurs, it cannot tell us "how often" or "how many." Exploratory research is not typically generalizable to the population at large.

1.

LITERATURE SURVEYS –

Literature survey is the documentation of a comprehensive review of the published and unpublished work from secondary sources data in the areas of specific interest to the researcher. The library is a rich storage base for secondary data and researchers used to spend several weeks and sometimes months going through books, journals, newspapers, magazines, conference proceedings, doctoral dissertations, master’s theses, government publications and financial reports to find information on their research topic. With computerized databases now readily available and accessible the literature search is much speedier and easier and can be done without entering the portals of a library building. The researcher could start the literature survey even as the information from the unstructured and structured interviews is being gathered. Reviewing the literature on the topic area at this time helps the researcher to focus further interviews more meaningfully on certain aspects found to be important is the published studies even if these had not surfaced during the earlier questioning. So the literature survey is important for gathering the secondary data for the research which might be proved 5

very helpful in the research. The literature survey can be conducted for several reasons. The literature review can be in any area of the business.

B.DESCRIPTIVE RESEARCH Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. The methods involved range from the survey which describes the status quo, the correlation study which investigates the relationship between variables, to developmental studies which seek to determine changes over time.

Statement of the problem Identification of information needed to solve the problem Selection or development of instruments for gathering the information Identification of target population and determination of sampling procedure Design of procedure for information collection Collection of information Analysis of information Generalizations and/or predictions

Sole Purpose: To describe a behavior or type of subject not to look for any specific relationships, nor to correlate 2 or more variables

Disadvantages : Since setting is completely natural, with all variables present, cannot identify cause 6

Advantages : •

Can acquire a lot of information through description

•

useful for identifying variables & hypothetical constructs > which can be further investigated through other means (kind of like exploratory surgery, or the USS Enterprise on an away mission)

• descriptions can be used as an indirect test of a theory or model • some behaviors/situations cannot be studied any other way

CHAPTER – 3 7

General categories of descriptive designs: surveys & observational studies – 1) Field Surveys : Subjects complete a questionnaire or interview in a natural setting Attention must be given to construct & content validity,reliable scoring, clear questions with precise, mutually exclusive answers,controlled consistent behavior of the interviewer concrete behaviors that naive subjects can accurately describe counterbalance order of questions (to identify & control response biases) representative sample (use large N) surveys may be mailed or conducted over the telephone

In primary data collection, you collect the data yourself using methods such as interviews and questionnaires. The key point here is that the data you collect is unique to you and your research and, until you publish, no one else has access to it. There are many methods of collecting primary data and the main methods include: •

questionnaires

•

interviews

•

focus group interviews

8

•

observation

•

case-studies

•

diaries

•

critical incidents

•

portfolios.

The 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 numbers or where you can make counts of words used). We briefly outline these methods but you should also read around the various methods. A list of suggested research methodology texts is given in your Module Study Guide but many texts on social or educational research may also be useful and you can find them in your library.

• Questionnaires Questionnaires are a popular means of collecting data, but are difficult to design and often require many rewrites before an acceptable questionnaire is produced. Advantages: •

Can be used as a method in its own right or as a basis for interviewing or a telephone survey. 9

•

Can be posted, e-mailed or faxed.

•

Can cover a large number of people or organisations.

•

Wide geographic coverage.

•

Relatively cheap.

•

No prior arrangements are needed.

•

Avoids embarrassment on the part of the respondent.

•

Respondent can consider responses.

•

Possible anonymity of respondent.

•

No interviewer bias.

Disadvantages: •

Design problems.

•

Questions have to be relatively simple.

•

Historically low response rate (although inducements may help).

•

Time delay whilst waiting for responses to be returned.

•

Require a return deadline.

•

Several reminders may be required.

•

Assumes no literacy problems.

•

No control over who completes it.

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•

Not possible to give assistance if required.

•

Problems with incomplete questionnaires.

•

Replies not spontaneous and independent of each other.

•

Respondent can read all questions beforehand and then decide whether to complete or not. For example, perhaps because it is too long, too complex, uninteresting, or too personal.

A semantic differential scale attempts to see how strongly an attitude is held by the respondent. With these scales double-ended terms are given to the respondents who are asked to indicate where their attitude lies on the scale between the terms. The response can be indicated by putting a cross in a particular position or circling a number: Work is: (circle the appropriate number) Difficult 1 2 3 4 5 6 7 Easy Useless 1 2 3 4 5 6 7 Useful Interesting 1 2 3 4 5 6 7 Boring For summary and analysis purposes, a ‘score’ of 1 to 7 may be allocated to the seven points of the scale, thus quantifying the various degrees of opinion expressed. This procedure has some disadvantages. It is implicitly assumed that two people with the same strength of feeling will mark the same point on the scale. This almost certainly will not be the case. When faced with a semantic differential scale, some people will never, as a matter of principle, use the two end indicators of 1 and 7. Effectively, therefore, they are using a five-point scale. Also scoring the scale 1 to 7 assumes that they represent equidistant points on the continuous

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spectrum of opinion. This again is probably not true. Nevertheless, within its limitations, the semantic differential can provide a useful way of measuring and summarising subjective opinions. Other types of questions to determine peoples’ opinions or attitudes are: Which one/two words best describes...? Which of the following statements best describes...? How much do you agree with the following statement...?

• Interviews Interviewing is a technique that is primarily used to gain an understanding of the underlying reasons and motivations for people’s attitudes, preferences or behaviour. Interviews can be undertaken on a personal one-to-one basis or in a

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group. They can be conducted at work, at home, in the street or in a shopping centre, or some other agreed location.

Personal interview Advantages: •

Serious approach by respondent resulting in accurate information.

•

Good response rate.

•

Completed and immediate.

•

Possible in-depth questions.

•

Interviewer in control and can give help if there is a problem.

•

Can investigate motives and feelings.

•

Can use recording equipment.

•

Characteristics of respondent assessed – tone of voice, facial expression, hesitation, etc.

•

Can use props.

•

If one interviewer used, uniformity of approach.

•

Used to pilot other methods.

Disadvantages:

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•

Need to set up interviews.

•

Time consuming.

•

Geographic limitations.

•

Can be expensive.

•

Normally need a set of questions.

•

Respondent bias – tendency to please or impress, create false personal image, or end interview quickly.

•

Embarrassment possible if personal questions.

•

Transcription and analysis can present problems – subjectivity.

•

If many interviewers, training required.

Types of interview Structured: •

Based on a carefully worded interview schedule. 14

•

Frequently require short answers with the answers being ticked off.

•

Useful when there are a lot of questions which are not particularly contentious or thought provoking.

•

Respondent may become irritated by having to give over-simplified answers.

Semi-structured The interview is focused by asking certain questions but with scope for the respondent to express him or herself at length.

Unstructured This also called an in-depth interview. The interviewer begins by asking a general question. The interviewer then encourages the respondent to talk freely. The interviewer uses an unstructured format, the subsequent direction of the interview being determined by the respondent’s initial reply. The interviewer then probes for elaboration – ‘Why do you say that?’ or, ‘That’s interesting, tell me more’ or, ‘Would you like to add anything else?’ being typical probes. The following section is a step-by-step guide to conducting an interview. You should remember that all situations are different and therefore you may need refinements to the approach.

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Planning an interview: •

List the areas in which you require information.

•

Decide on type of interview.

•

Transform areas into actual questions.

•

Try them out on a friend or relative.

•

Make an appointment with respondent(s) – discussing details of why and how long.

•

Try and fix a venue and time when you will not be disturbed.

Conducting an interview: Personally

– arrive on time be smart smile employ good manners find a balance between friendliness

At the start

and objectivity. – introduce yourself re-confirm the purpose assure confidentiality – if relevant specify what will happen to the

The questions

data. – speak slowly in a soft, yet audible tone of voice control your body language know the questions and topic ask all the

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Responses

questions. – recorded as you go on questionnaire written verbatim, but slow and time-consuming summarised by you taped – agree beforehand – have alternative method if not acceptable consider effect on respondent’s answers proper equipment in good working order sufficient tapes and batteries minimum of

At the end

background noise. – ask if the respondent would like to give further details about anything or any questions about the research thank them.

• Observation Observation involves recording the behavioural patterns of people, objects and events in a systematic manner. Observational methods may be: •

structured or unstructured

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•

disguised or undisguised

•

natural or contrived

•

personal

•

mechanical

•

non-participant

•

participant, with the participant taking a number of different roles.

Structured or unstructured In structured observation, the researcher specifies in detail what is to be observed and how the measurements are to be recorded. It is appropriate when the problem is clearly defined and the information needed is specified. In unstructured observation, the researcher monitors all aspects of the phenomenon that seem relevant. It is appropriate when the problem has yet to be formulated precisely and flexibility is needed in observation to identify key components of the problem and to develop hypotheses. The potential for bias is high. Observation findings should be treated as hypotheses to be tested rather than as conclusive findings.

Disguised or undisguised 18

In disguised observation, respondents are unaware they are being observed and thus behave naturally. Disguise is achieved, for example, by hiding, or using hidden equipment or people disguised as shoppers. In undisguised observation, respondents are aware they are being observed. There is a danger of the Hawthorne effect – people behave differently when being observed.

Natural or contrived Natural observation involves observing behaviour as it takes place in the environment, for example, eating hamburgers in a fast food outlet. In contrived observation, the respondents’ behaviour is observed in an artificial environment, for example, a food tasting session.

Personal In personal observation, a researcher observes actual behaviour as it occurs. The observer may or may not normally attempt to control or manipulate the phenomenon being observed. The observer merely records what takes place.

Mechanical Mechanical devices (video, closed circuit television) record what is being observed. These devices may or may not require the respondent’s direct participation. They are used for continuously recording on-going behaviour.

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Non-participant The observer does not normally question or communicate with the people being observed. He or she does not participate.

Participant In participant observation, the researcher becomes, or is, part of the group that is being investigated. Participant observation has its roots in ethnographic studies (study of man and races) where researchers would live in tribal villages, attempting to understand the customs and practices of that culture. It has a very extensive literature, particularly in sociology (development, nature and laws of human society) and anthropology (physiological and psychological study of man). Organisations can be viewed as ‘tribes’ with their own customs and practices. The role of the participant observer is not simple. There are different ways of classifying the role: •

Researcher as employee.

•

Researcher as an explicit role.

•

Interrupted involvement.

•

Observation alone.

1-Researcher as employee

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The researcher works within the organisation alongside other employees, effectively as one of them. The role of the researcher may or may not be explicit and this will have implications for the extent to which he or she will be able to move around and gather information and perspectives from other sources. This role is appropriate when the researcher needs to become totally immersed and experience the work or situation at first hand. There are a number of dilemmas. Do you tell management and the unions? Friendships may compromise the research. What are the ethics of the process? Can anonymity be maintained? Skill and competence to undertake the work may be required. The research may be over a long period of time.

2. Researcher as an explicit role The researcher is present every day over a period of time, but entry is negotiated in advance with management and preferably with employees as well. The individual is quite clearly in the role of a researcher who can move around, observe, interview and participate in the work as appropriate. This type of role is the most favoured, as it provides many of the insights that the complete observer would gain, whilst offering much greater flexibility without the ethical problems that deception entails.

Interrupted involvement The researcher is present sporadically over a period of time, for example, moving in and out of the organisation to deal with other work or to conduct interviews

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with, or observations of, different people across a number of different organisations. It rarely involves much participation in the work.

Observation alone The observer role is often disliked by employees since it appears to be ‘eavesdropping’. The inevitable detachment prevents the degree of trust and friendship forming between the researcher and respondent, which is an important component in other methods.

Choice of roles The role adopted depends on the following: •

Purpose of the research: Does the research require continued longitudinal involvement (long period of time), or will in-depth interviews, for example, conducted over time give the type of insights required?

•

Cost of the research: To what extent can the researcher afford to be committed for extended periods of time? Are there additional costs such as training?

•

The extent to which access can be gained: Gaining access where the role of the researcher is either explicit or covert can be difficult, and may take time.

•

The extent to which the researcher would be comfortable in the role: If the researcher intends to keep his identity concealed, will he or she also feel able 22

to develop the type of trusting relationships that are important? What are the ethical issues? •

The amount of time the researcher has at his disposal: Some methods involve a considerable amount of time. If time is a problem alternate approaches will have to be sought.

CHAPTER – 4 ( Sampling Methods –) Collecting data is time consuming and expensive, even for relatively small amounts of data. It is incumbent on the researcher to clearly define the target

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population. There are no strict rules to follow, and the researcher must rely on logic and judgment. The population is defined in keeping with the objectives of the study. Sometimes, the entire population will be sufficiently small, and the researcher can include the entire population in the study. This type of research is called a census study because data is gathered on every member of the population. Usually, the population is too large for the researcher to attempt to survey all of its members. A small, but carefully chosen sample can be used to represent the population. The sample reflects the characteristics of the population from which it is drawn. Sampling methods are classified as either probability or nonprobability. In probability samples, each member of the population has a known non-zero probability of being selected. Probability methods include random sampling, systematic sampling, and stratified sampling. In nonprobability sampling, members are selected from the population in some nonrandom manner. These include convenience sampling, judgment sampling, quota sampling, and snowball sampling. The advantage of probability sampling is that sampling error can be calculated. Sampling error is the degree to which a sample might differ from the population. When inferring to the population, results are reported plus or minus the sampling error. In nonprobability sampling, the degree to which the sample differs from the population remains unknown.

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JUDGEMENT SAMPLE – A form of non-probability or purposive sample in which the researcher selects potential RESPONDENTS on the basis that they conform with some basic criterion specified as relevant to the POPULATION to be sampled, e.g. age, ownership of an article, activity etc., judgement samples are selected on the basis of what some expert thinks particular sampling units or elements will contribute to answering the particular research question or problem in hand. For example, in test marketing, a judgement is made as to which cities would constitute the best ones for testing the marketability of a new product. In judgement sampling the degree and direction of the SAMPLING ERROR are unknown and definitive statements are not meaningful.

Judgement sampling involves the choice of subjects who are most advantageously placed or in the best position to provide the information required. For instance, if a researcher wants to find out what it takes for women managers to make it to the top, the only people who can give first hand information re the women? Who have risen to the positions of presidents, vice presidents and important top-level executives in work organizations? They could reasonably be expected to have expert knowledge by virtue of having gone through the experience and processes themselves and might perhaps be able to provide good data or information to the researcher. Thus the judgement

25

sampling design is used when a limited number or category of people have the information that is sought. In such cases any type of probability sampling across a cross-section of the entire population is purposeless and not useful.

CHAPTER – 5 BIAS AND ERROR IN SAMPLING – 26

What can make a sample unrepresentative of its population? One of the most frequent causes is sampling error.

1. Sampling error – comprises the differences between the sample and the population that are due solely to the particular units that happen to have been selected. For example, suppose that a sample of 100 american women are measured and are all found to be taller than six feet. It is very clear even without any statistical prove that this would be a highly unrepresentative sample leading to invalid conclusions. This is a very unlikely occurance because naturally such rare cases are widely distributed among the population. But it can occur. Luckily, this is a very obvious error and can be etected very easily. There are two basic causes for sampling error. 1. One is chance: That is the error that occurs just because of bad luck. 2. The second cause of sampling is sampling bias. Sampling bias is a tendency to favour the selection of units that have paticular characteristics. Sampling bias is usually the result of a poor sampling plan.

2. Non sampling error (measurement error) A non sampling error is an error that results solely from the manner in which the observations are made. The simplest example of non sampling error is inaccurate measurements due to malfuntioning instruments or poor procedures. 27

1. The interwiers effect No two interviewers are alike and the same person may provide different answers to different interviewers. The manner in which a question is formulated can also result in inaccurate responses. Individuals tend to provide false answers to particular questions.

2. The respondent effect Respondents might also give incorrect answers to impress the interviewer. This type of error is the most difficult to prevent because it results from out right deceit on the part of the respondee.

3. Knowing the study purpose Knowing why a study is being conducted may create incorrect responses. A classic example is the question: What is your income? If a government agency is asking, a different figure may be provided than the respondent would give on an application for a home mortgage. One way to guard against such bias is to camouflage the study`s goals; Another remedy is to make the questions very specific, allowing no room for personal interpretation. For example, "Where are you employed?" could be followed by "What is your salary?" and "Do you have any extra jobs?" A sequence of such questions may produce more accurate information.

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4. Induced bias Finally, it should be noted that the personal prejudices of either the designer of the study or the data collector may tend to induce bias. In designing a questionnaire, questions may be slanted in such a way that a particular response will be obtained even though it is inacurrate.

CHAPTER – 6 (COMPANYPROFILE)

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1.

COTTON COUNTY –

Cotton County India - Mens Cargo Shirts, Sweatshirts, Office Shirts, Formal & Fashion Shirts, Mens T-shirts India Inspired by the freshness of nature, Cotton County’s India shirt collection is an exotic retreat that makes it all the more exclusive and exquisite. Targeted at the young, trendy and hip-hop crowd as well as the upwardly mobile youth, this Tshirts India collection exhibits an exciting combination of colors, designs and styles in stripes, prints, plains and denim lending a very sophisticated and funky look to the entire range. Cargo shirts have been introduced for the first time in the arena of “India shirts” . Targeted at generation next, the collection of cargo shirts are back in full blast, creating a overall impression of style, while contrast stitching marks the collection’s gutsy edge, by creating lots of play even in the more basic looks. The collection gives a fashion-conscious man the freedom to choose his own adventures while giving him the wardrobe that compliments his dynamic lifestyle. At Cotton County we offer you a wide variety of Cool t-shirts, Custom sweatshirts, Custom t-shirts, Designer T-Shirts, cardigans, pullovers, jackets etc. T-shirts are amazing. You name a color and you can get Cotton County t-shirts right plain collar t-shirts that are available in 35 exciting colors and combinations to round neck T-shirts. The shirts collection comes in a range of carefully selected colors, styles and first-class fabrics. Wrinkle free cotton lets you and your shirt

30

look immaculate all day long. After a few minutes on your body, the shirt mixes business with pleasure. Now you can buy t-shirts & shirts from our Wholesale Mens t-shirts, Wholesale Shirts, Wholesale t-shirts collection of men’s wear that mainly consists of Mens Fashion Shirts, Man Fashion Shirts, Mens Formal Shirts, Mens Office Shirts, Mens Shirts, Mens T-shirts.

The Nahar Industrial Enterprises franchisea proud part of the Nahar Group – The Nahar Industrial Enterprises franchise is a part of the Nahar Group which was established in 1949. The Group has gained recognition as a reputed Industrial conglomerate with a wide ranging portfolio from spinning, knitting, fabrics and hosiery garments to sugar. The garment making franchise is a part one of the four operations of the Nahar Group. The Nahar group comprises of Nahar Industrial Enterprises Ltd., Oswal Woollen

31

Mills Ltd., Nahar Spinning Mills Ltd. and Nahar Exports Ltd. The group has spinning capacity of 0.4 million spindles with turnover of $450 million inclusive of export turnover of $115 million. The production facilities have been awarded ISO 9002/IS 14002 Certification and Okotex Certification.

The Nahar group has markets that are crisscrossed all over the globe. It operates on the objective of meeting the buyer’s expectations with consistent quality backed by research and development divisions equipped with the latest equipment, cream of highly qualified technocrats who adhere to timely schedules. The products manufactured by the Nahar Group are yarns, woven fabrics, knitwears and garments. The group also manufactures sugar and other products. The group is an approved fabric vendor for global brands such as The Gap, Tommy Hilfiger, Marks & Specer and domestic brands such as Color plus, Allen Solly and Louis Phillips.

Currently, Nahar Industrial Enterprises has 159,408 spindles and 6320 rotors to produce different counts of yarn. It’s weaving capacity with 426 looms, modern processing plant with capacity of 1, 15,000 metres per day. It has a modern dyeing house with a capacity to dye 6 tonnes yarn per day and has a garment facility for manufacturing 20, 00,000 pieces per annum. Today, Nahar Industrial Enterprises has 150 retail outlets that sell readymade garments under the” Cotton County” Brand and a 2500 TCDs Sugar Mill.

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The year was 1949; while our beginnings were small, the vision was big. The burning desire to evolve, grow & one day position ourself as a responsible & reputed corporate entity playing out its role in improving the peoples quality of life through our products & service remained a driving force. It is our relentless spirit of enterprise, boundless enthusiasm, grit & determination to live the dream that enabled us to add a new dimension to our philosophy- where commitment leads, achievement follows. A retail venture of Nahar Industrial Enterprises Limited, Cotton County is manufactured in the state-of-the-art in-house manufacturing facility. The company has complete in-house hi-tech knitting, dyeing, mercerizing, finishing, compacting, embroidery and manufacturing facilities that ensure total quality control at all levels of manufacturing. The in-house design studio is also well equipped with expert professionals and latest software. Nahar Industrial Enterprises has floated a wholly owned subsidiary Nahar Retail Ltd. for its foray into retailing. The parent company is already involved in spinning, weaving, processing and garmenting and supplies to some of the biggest brands in the world like Marks and Spencer, GAP, Tommy Hilfiger and Armani.

ABOUT THE COLLECTION –

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Inspired by the freshness of nature, Cotton County’s collection is an exotic retreat that makes it all the more exclusive and exquisite. Targeted at the young, trendy and hip-hop crowd as well as the upwardly mobile youth, this collection exhibits an exciting combination of colors, designs and styles in stripes, prints, plains and denim lending a very sophisticated and funky look to the entire range. Cargo shirts have been introduced for the first time. Targeted at generation next, the collection of cargo shirts are back in full blast, creating a overall impression of style, while contrast stitching marks the collection’s gutsy edge, by creating lots of play even in the more basic looks. The collection gives a fashion-conscious man the freedom to choose his own adventures while giving him the wardrobe that compliments his dynamic lifestyle. T-shirts are amazing. You name a color and you can get Cotton County t-shirts right plain collar t-shirts that are available in 35 exciting colors and combinations to round neck T-shirts. The shirts collection comes in a range of carefully selected colors, styles and first-class fabrics. Wrinkle free cotton lets you and your shirt look immaculate all day long. After a few minutes on your body, the shirt mixes business with pleasure.

MARKET POSITION –

• Gaining a brand recognition as a result of the expansion mode that the company is in with the foray in Tier II and Tier III cities.

34

• Benefit of First Mover Advantage • A truly Mass Volume Brand • Also known for selling a lot more than many popular brands • Catches the eye of the customer with attractive offers of heavy discounts • Advanced and in-depth planning and research and also considering the latest trends and customer demands in mind. • Highly motivated staff.

MISSION – We aim to be recognized as the fastest growing retail chain in the Everyday low Pricing business model. We will offer our customers satisfaction in terms of quality, variety and price. We will also ensure a consistent return on investment and growth rate through employee motivation and satisfaction.

WHY COTTON COUNTY –

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Cotton is noted for its versatility, appearance, performance, and above all its natural comfort. From all types of apparel, cotton in today’s fast moving world is still nature’s wonder fiber. It provides thousands of options to experiment with style and look. otton is a style statement for the season. With the dynamism in lifestyle, people are changing, so is the outlook and attitude towards fashion and lifestyle. Youngsters are always looking for apparels that are high on fashion, but affordable on prices. With the same ideology, Cotton County always strives to offer the international clothing concepts at highly affordable prices. Over a period of last three years, Cotton County has been successful in creating a distinct niche for its brand in the highly cluttered and competitive readymade garments market in India. Being a value for money brand, Cotton County’s main focus is to penetrate in Tier- 2 and Tier-3 cities. The Company has a franchisee route and within one year, it has over 120 exclusive outlets.

QUALITY – Unlike many other enterprises and business organizations, Quality is not just an ordinary word with very little or no meaning. For Cotton County, Quality has a significant importance of its own which can describe the potential of the company in no time. We believe ‘If the quality is good, there is room for Cotton County to survive in this corporate world. However, if little attention is paid on Quality, then survival for Cotton County in this competitive era will be a lot difficult.’

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Hence, without giving any second thoughts, we have given Quality, our top priority. Today Quality is something that is evident in all the spheres of the Company – even the products it sells, the work culture, and the various departments of the Company. Our Parent Company, Nahar Industrial Enterprises Limited has been awarded ISO 9002/IS 14002 Certification and Okotex Certification. For us, Quality is the ability of our products to be able to satisfy our users. And to ensure this, the garment goes through various Quality checks in order to ensure utmost customer satisfaction.

Quality can be mainly seen in 3 different spheres of the Company – 1.Customers – • We aim to do everything that satisfies our customer needs and expectations. • We make only those commitments that we fully understand and we believe we can meet them. • Also, meeting our commitments made with customers on time. 37

2.Performance Driven – • We confirm that all our garments meet the agreed requirements. • We constantly monitor and improve our business’s garments, services, organization and employee performance. • We make sure that we achieve the goals set by us for the future. • We confirm that our working environment is 100% employee friendly In short, Our Commitments are towards our customers, business and society.

3. ANF FINALLY SATISFIED EMPLOYEES.

CHARLIE OUTLAW – CHARLIE OUTLAW is one of the youngest brands in the Indian menswear market. It was launched on October 06 with the simultaneous opening of 104 stores in one day. The Brand is Youth Centric with Affordable Fashion as its key Mantra. The product range includes all casual wear items for a young man and includes shirts, T-shirts, sweaters, sweatshirts, jackets, trousers, jeans, cargos etc. The Brand has been launched by KOUTONS RETAIL INDIA LTD. 38

CHAPTER – 7 LOCAL RETAILERS’ PROFILE

1.

Khushboo Wears

opened in 2005 cater to the needs of middle & upper

middle class with products ranging from the men’s wear to ladies’ wear and kids’ wear. 2.

Fashioner Readymade

is the oldest local retailer with enjoying the

maximum customer faith.

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3.

Pindi Silk Store – This is the premium showroom for sarees, ladies suit, suiting & shirting, men’s wear and kids’ wear also with products like Sherwanis for higher classes.

4.

Palak Silk Store – This store opened in 2002 gave a strong competition to Pindi Silk Store but failed to maintain the quality.

5.

Beauty Centre – This is the second premium store and the first departmental store in modinagar having its different class of customers.

6.

Singhal Garments – This store cater the needs of lower class & lower middle class with good market share due to the type of customers in Modinagar and low purchasing power of mostly customers.

CHAPTER – 8 DATA ANALYSIS & INTERPRETATION : 1. Current sales level (Average sale on per day basis) – BASED ON THE CONVERSATION WITH EMPLOYEES OF THESE STORES

RS.

KOUTONS CHARLIE OUTLAW COTTON COUNTY 2,500 3,500 1,500 40

Sales in Rs.

Current Sales Level RS., 3,500

4,000 3,000

RS., 2,500 RS., 1,500

2,000 1,000

y

0 KOUTONS

CHARLIE OUTLAW

COTTON COUNTY

Company's Name

2. Sales level since inception (approximately) •

KOUTONS – (FROM AUG-06 TO MARCH-08)

41

RS.

MONTHS KOUTONS (Rs.) P.M. MONTHS KOUTONS (Rs.) P.M. Aug-06 8,000 Aug-07 2,500 Sep-06 8,000 Sep-07 3,000 Oct-06 9,000 Oct-07 3,000 Nov-06 9,500 Nov-07 3,500 Dec-06 12,000 Dec-07 3,500 Jan-07 11,000 Jan-08 3,000 Feb-07 9,000 Feb-08 2,500 Mar-07 8,000 Mar-08 2,500 Apr-07 4,000 May-07 3,000 Jun-07 2,500 Jul-07 2,000

KOUTONS (Rs.) P.M. 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Feb-08

Dec-07

Oct-07

Aug-07

Jun-07

Apr-07

Feb-07

Dec-06

Oct-06

Aug-06

KOUTONS (Rs.) P.M.

CONCLUSION – Koutons’ sale increased in the starting but then a steep fall in the sales level. •

CHARLIE OUTLAW – (FROM JUL-07 TO MAR-08)

42

MONTHS CHARLIE OUTLAW (Rs.) P.M. Jul-07 8,500 Aug-07 10,000 Sep-07 11,000 Oct-07 12,000 Nov-07 12,500 Dec-07 11,500 Jan-08 4,500 Feb-08 3,500 Mar-08 3,500

CHARLIE OUTLAW (Rs.) P.M. 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

A

Ju

l-0 7

ug -0 Se 7 p07 O ct -0 7 N ov -0 D 7 ec -0 Ja 7 n0 Fe 8 b0 M 8 ar -0 8

CHARLIE OUTLAW (Rs.) P.M.

CONCLUSION – Charlie Outlaw is also showing the same store i.e. first sale increase then a steep fall. •

COTTON COUNTY – (FROM JUN-07 TO MAR-08)

43

MONTHS COTTON COUNTY (Rs.) P.M. Jun-07 3,000 Jul-07 3,000 Aug-07 3,500 Sep-07 3,500 Oct-07 2,500 Nov-07 2,500 Dec-07 2,500 Jan-08 2,500 Feb-08 2,000 Mar-08 1,500

COTTON COUNTY (Rs.) P.M. 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

Ju

n0 Ju 7 l A -07 ug Se 07 p0 O 7 ct N 07 ov D 07 ec Ja 07 nFe 08 b0 M 8 ar -0 8

COTTON COUNTY (Rs.) P.M.

CONCLUSION – Cotton county’s all showed the same pattern but with smaal fluctuations due to its consistent but low sales level.

3. Sales level of Retailers from April 06 to March 07 • From APRIL 06 – MARCH 07 44

Beaut Khushboo

y

Singhal

Months Wears Fashioner Pindi Palak Centre Garments Apr-06 5,000 4,000 5,500 2,000 5,400 2,100 May-06 4,000 3,200 4,500 1,600 4,400 1,700 Jun-06 3,500 2,800 4,000 1,400 3,900 1,500 Jul-06 3,000 2,400 3,500 1,200 3,400 1,300 Aug-06 5,500 4,400 6,000 2,200 5,900 2,300 Sep-06 6,500 5,200 7,000 2,600 6,900 2,700 Oct-06 10,000 8,000 10,500 4,000 8,000 4,100 Nov-06 12,000 9,600 12,500 4,800 10,000 4,900 Dec-06 14,000 11,200 14,500 5,600 12,000 5,700 Jan-07 13,500 10,800 14,000 5,400 11,500 5,500 Feb-07 12,000 9,600 12,500 4,800 10,000 4,900 Mar-07 12,000 9,600 12,500 4,800 10,000 4,900

45

APRIL 06 - MARCH 07 16000 14000

Khushboo Wears

Sales Level

12000

Fashioner

10000

Pindi

8000

Palak

6000

Beauty Centre

4000

Singhal Garments

2000

38 80 8 38 83 8 38 86 9 38 89 9 38 93 0 38 96 1 38 99 1 39 02 2 39 05 2 39 08 3 39 11 4 39 14 2

0

Months

CONCLUSION – If we analyse the sales level then we find that that their sales level remain high during winter season while low in summers.

4. Sales level of Retailers from April 07 to March 08 -

• From APRIL 07 – MARCH 08

Beaut Khushboo

y

Months Wears Fashioner Pindi Apr-07 6,000 4,800 5,300 May-07 5,000 4,000 4,500 Jun-07 4,500 3,600 4,100 46

Singhal

Palak Centre Garments 1,714 5,500 2,314 1,667 4,700 2,267 1,500 4,300 2,100

Jul-07 Aug-07 Sep-07

3,500 6,000 7,000

Oct-07 Nov-07

2,800 4,800 5,600

3,300 1,167 5,300 2,000 6,100 2,333 10,10

3,500 5,500 6,300

1,767 2,600 2,933

12,000 14,000

9,600 0 4,000 11,200 11,700 4,667 14,90

10,300 11,900

4,600 5,267

Dec-07

18,000

14,400

0 6,000 12,90

15,100

6,600

Jan-08 Feb-08

15,500 14,000

12,400 0 5,167 11,200 11,700 4,667 10,90

13,100 11,900

5,767 5,267

Mar-08

13,000

10,400

11,100

4,933

0 4,333

20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

Khushboo Wears Fashioner Pindi Palak Beauty Centre Singhal Garments

Ap r0 M 7 ay -0 Ju 7 n0 Ju 7 l-0 Au 7 g0 Se 7 p0 O 7 ct -0 No 7 v0 De 7 c0 Ja 7 n0 Fe 8 b0 M 8 ar -0 8

Sales Level

APRIL 07 - MARCH 08

Months

CONCLUSION – Same story but here Khushboo Wears takes the ride with highest sales level due to more customer satisfaction level and various sales promotional schemes.

47

5. Comparison of Two-Years Sales level of Retailers from April 06-07 to March 07-08

•

KHUSHBOO WEARS (From April 06-07 to March 07-08)

Months Khushboo Wears Months Khushboo Wears Apr-06 5,000 Apr-07 6,000 May-06 4,000 May-07 5,000 Jun-06 3,500 Jun-07 4,500 Jul-06 3,000 Jul-07 3,500 Aug-06 5,500 Aug-07 6,000 Sep-06 6,500 Sep-07 7,000 Oct-06 10,000 Oct-07 12,000 Nov-06 12,000 Nov-07 14,000 Dec-06 14,000 Dec-07 18,000 Jan-07 13,500 Jan-08 15,500 Feb-07 12,000 Feb-08 14,000 Mar-07 12,000 Mar-08 13,000

Khushboo Wears' sales Comparison

20,000

Sales Level

15,000 10,000 5,000 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2006

48

2007

CONCLUSION – It can be enumerated from the graph that Khushboo Wears sales not only increased but also they achieved more than their targets.

•

FASHIONER READY-MADE (From April 06-07 to March 0708)

Months Fashioner Months Fashioner Apr-06 4,000 Apr-07 4,800 May-06 3,200 May-07 4,000 Jun-06 2,800 Jun-07 3,600 Jul-06 2,400 Jul-07 2,800 Aug-06 4,400 Aug-07 4,800 Sep-06 5,200 Sep-07 5,600 Oct-06 8,000 Oct-07 9,600 Nov-06 9,600 Nov-07 11,200 Dec-06 11,200 Dec-07 14,400 Jan-07 10,800 Jan-08 12,400 Feb-07 9,600 Feb-08 11,200 Mar-07 9,600 Mar-08 10,400

49

ar M

Fe b

n Ja

D ec

N ov

ct O

Se p

A ug

Ju l

Ju n

ay M

on t M

A pr

16000 14000 12000 10000 8000 6000 4000 2000 0 hs

Sales Level

FASHIONER'S Sales Comparison

Series1

Series2

CONCLUSION – It can be enumerated from the graph that their sales level also increased.

•

PINDI SILK STORE’S (From April 06-07 to March 07-08)

Months Pindi Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06

5,500 4,500 4,000 3,500 6,000 7,000 10,500 12,500

Months Pindi Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07

50

5,300 4,500 4,100 3,300 5,300 6,100 10,100 11,700

Dec-06 Jan-07 Feb-07 Mar-07

14,500 Dec-07 14,000 Jan-08 12,500 Feb-08 12,500 Mar-08

14,900 12,900 11,700 10,900

ar M

Fe b

n Ja

D ec

N ov

ct O

Se p

A ug

Ju l

Ju n

ay M

on t M

A pr

16000 14000 12000 10000 8000 6000 4000 2000 0 hs

Sales Level

PINDI Silk Store's Sales Comparison

Series1

Series2

CONCLUSION – It can be enumerated from the graph that Pindi Silk Store did not show the same pattern but its sales level decreased, may be due to the increased market share of the other two aforesaid stores.

51

•

PALAK SILK STORE’S (From April 06-07 to March 07-08)

Months Palak Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07

2,000 1,600 1,400 1,200 2,200 2,600 4,000 4,800 5,600 5,400 4,800 4,800

Months Palak Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08

1,714 1,667 1,500 1,167 2,000 2,333 4,000 4,667 6,000 5,167 4,667 4,333

Palak Silk Store's Sales Comparison

ar M

Fe b

n Ja

D ec

N ov

ct O

Se p

A ug

Ju l

Ju n

ay M

on t M

A pr

5000 4000 3000 2000 1000 0 hs

Sales Level

7000 6000

Series1

Series2

CONCLUSION – It can be enumerated from the graph that this store also suffered but minutely due to their already low sales level.

52

•

BEAUTY CENTRE’S (From April 06-07 to March 07-08)

Months Beauty Centre Apr-06 5,400 May-06 4,400 Jun-06 3,900 Jul-06 3,400 Aug-06 5,900 Sep-06 6,900 Oct-06 8,000 Nov-06 10,000 Dec-06 12,000 Jan-07 11,500 Feb-07 10,000 Mar-07 10,000

Months Beauty Centre Apr-07 5,500 May-07 4,700 Jun-07 4,300 Jul-07 3,500 Aug-07 5,500 Sep-07 6,300 Oct-07 10,300 Nov-07 11,900 Dec-07 15,100 Jan-08 13,100 Feb-08 11,900 Mar-08 11,100

ar M

Fe b

n Ja

D ec

N ov

ct O

Se p

A ug

Ju l

Ju n

ay M

on t M

A pr

16000 14000 12000 10000 8000 6000 4000 2000 0 hs

Sales Level

Beauty Centre's Sales Comparison

Series1

Series2

CONCLUSION – It can be enumerated from the graph that Beauty Centre was able to increase its sales.

53

•

SINGHAL GARMENTS’ (From April 06-07 to March 07-08)

Singhal Months Garments Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07

2,100 1,700 1,500 1,300 2,300 2,700 4,100 4,900 5,700 5,500 4,900 4,900

Singhal Months Garments Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08

2,314 2,267 2,100 1,767 2,600 2,933 4,600 5,267 6,600 5,767 5,267 4,933

Singhal Garments' Sales Comparison

ar M

Fe b

n Ja

D ec

N ov

ct O

Se p

A ug

Ju l

Ju n

ay M

on t M

A pr

5000 4000 3000 2000 1000 0 hs

Sales Level

7000 6000

Series1

Series2

CONCLUSION – It can be enumerated from the graph that Singhal Garments’ sales increased but minutely due to their already good sales level and no competition with the branded players.

54

(6) EFFECT OF DISCOUNTED APPAREL BRANDS ON LOCAL RETAILERS ON PER MONTH BASIS – 1. KHUSHBOO WEARS –

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

KOUTONS KOUTONS06 07 4,000 3,000 2,500 2,000 8,000 2,500 8,000 3,000 9,000 3,000 9,500 3,500 12,000 3,500 11,000 3,000 9,000 2,500 8,000 2,500

CHARLIE COTTON OUTLAW- COUNTY07 07 K.W.-06 K.W.-07 0 0 6,000 0 0 5,000 0 3,000 4,500 8,500 3,000 3,500 10,000 3,500 5,500 6,000 11,000 3,500 6,500 7,000 12,000 2,500 10,000 12,000 12,500 2,500 12,000 14,000 11,500 2,500 14,000 18,000 4,500 2,500 13,500 15,500 3,500 2,000 12,000 14,000 3,500 1,500 12,000 13,000

55

Total Sales Com parison 20,000 18,000

Sales Level

16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Apr KOUTONS 06

May

Jun

KOUTONS-07

Jul

Aug

Sep

CHARLIE OUTLAW-07

Oct

Nov

Dec

COTTON COUNTY-07

Jan

Feb

K.W.-06

Mar K.W.-07

CONCLUSION – Now it is clear from the graph that Khushboo Wears Sale was affected in the starting but reversely affected the brands sales.

2. Fashioner Readymade –

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

KOUTONS KOUTONS06 07 4,000 3,000 2,500 2,000 8,000 2,500 8,000 3,000 9,000 3,000 9,500 3,500 12,000 3,500 11,000 3,000 9,000 2,500 8,000 2,500

CHARLIE COTTON OUTLAW- COUNTY- Fashioner- Fashioner07 07 06 07 0 0 4,000 4,800 0 0 3,200 4,000 0 3,000 2,800 3,600 8,500 3,000 2,400 2,800 10,000 3,500 4,400 4,800 11,000 3,500 5,200 5,600 12,000 2,500 8,000 9,600 12,500 2,500 9,600 11,200 11,500 2,500 11,200 14,400 4,500 2,500 10,800 12,400 56 3,500 2,000 9,600 11,200 3,500 1,500 9,600 10,400

Total Sales Com parison 16,000 14,000

Sales Level

12,000 10,000 8,000 6,000 4,000 2,000 0 Apr KOUTONS 06

May

Jun

KOUTONS-07

Jul

Aug

CHARLIE OUTLAW-07

Sep

Oct

Nov

COTTON COUNTY-07

Dec

Jan

Fashioner-06

Feb

Mar

Fashioner-07

CONCLUSION – Same story was also repeated here as in the case of Khushboo Wears.

3. Pindi Silk Store

57

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

KOUTONS KOUTONS06 07 4,000 3,000 2,500 2,000 8,000 2,500 8,000 3,000 9,000 3,000 9,500 3,500 12,000 3,500 11,000 3,000 9,000 2,500 8,000 2,500

CHARLIE COTTON OUTLAW- COUNTY07 07 Pindi-06 Pindi-07 0 0 5,500 5,300 0 0 4,500 4,500 0 3,000 4,000 4,100 8,500 3,000 3,500 3,300 10,000 3,500 6,000 5,300 11,000 3,500 7,000 6,100 12,000 2,500 10,500 10,100 12,500 2,500 12,500 11,700 11,500 2,500 14,500 14,900 4,500 2,500 14,000 12,900 3,500 2,000 12,500 11,700 3,500 1,500 12,500 10,900

CONCLUSION – Same story was also repeated here as in the case of Khushboo Wears & Fashioner but it lost its sales to both these retailers.

58

4. PALAK SILK STORE –

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

KOUTONS KOUTONS06 07 4,000 3,000 2,500 2,000 8,000 2,500 8,000 3,000 9,000 3,000 9,500 3,500 12,000 3,500 11,000 3,000 9,000 2,500 8,000 2,500

CHARLIE COTTON OUTLAW- COUNTY07 07 Palak-06 Palak-07 0 0 2,000 1,714 0 0 1,600 1,667 0 3,000 1,400 1,500 8,500 3,000 1,200 1,167 10,000 3,500 2,200 2,000 11,000 3,500 2,600 2,333 12,000 2,500 4,000 4,000 12,500 2,500 4,800 4,667 11,500 2,500 5,600 6,000 4,500 2,500 5,400 5,167 3,500 2,000 4,800 4,667 3,500 1,500 4,800 4,333

59

Total Sales Com parison 14,000 12,000

Sales Level

10,000 8,000 6,000 4,000 2,000 0 Apr KOUTONS 06

May

Jun

KOUTONS-07

Jul

Aug

Sep

CHARLIE OUTLAW-07

Oct

Nov

Dec

COTTON COUNTY-07

Jan Palak-06

Feb

Mar

Palak-07

CONCLUSION – This was a looser but before the coming of the brands and showed a falling sales level. 5.

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

BEAUTY CENTRE –

KOUTONS KOUTONS06 07 4,000 3,000 2,500 2,000 8,000 2,500 8,000 3,000 9,000 3,000 9,500 3,500 12,000 3,500 11,000 3,000 9,000 2,500 8,000 2,500

CHARLIE COTTON OUTLAW- COUNTY- Beauty Beauty 07 07 Centre-06 Centre-07 0 0 5,400 5,500 0 0 4,400 4,700 0 3,000 3,900 4,300 8,500 3,000 3,400 3,500 10,000 3,500 5,900 5,500 11,000 3,500 6,900 6,300 12,000 2,500 8,000 10,300 12,500 2,500 10,000 11,900 11,500 2,500 12,000 15,100 4,500 2,500 11,500 13,100 3,500 2,000 10,000 11,900 3,500 1,500 10,000 11,100 60

CONCLUSION – Beauty Centre’s sales firstly was affected but then its also showed the same increasing sales story.

6. SINGHAL GARMENTS –

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

KOUTONS KOUTONS06 07 4,000 3,000 2,500 2,000 8,000 2,500 8,000 3,000 9,000 3,000 9,500 3,500 12,000 3,500 11,000 3,000 9,000 2,500 8,000 2,500

CHARLIE COTTON OUTLAW- COUNTY- Singhal Singhal 07 07 Garments Garments 0 0 2,100 2,314 0 0 1,700 2,267 0 3,000 1,500 2,100 8,500 3,000 1,300 1,767 10,000 3,500 2,300 2,600 11,000 3,500 2,700 2,933 12,000 2,500 4,100 4,600 12,500 2,500 4,900 5,267 11,500 2,500 5,700 6,600 4,500 2,500 5,500 5,767 3,500 2,000 4,900 5,267 3,500 1,500 4,900 4,933

61

Total Sales Com parison 14,000 12,000 Sales Level

10,000 8,000 6,000 4,000 2,000 0 Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

KOUTONS 06

KOUTONS-07

CHARLIE OUTLAW-07

COTTON COUNTY-07

Singhal Garm ents

Singhal Garm ents

Mar

CONCLUSION – Singhal Garments was least affected due to its consistent sales level.

7. How many customers (Approximataely) come again for shopping ? (BASED ON THE QUESTIONS ASKED IN THE ORAL CONVERSATION WITH THE EMPLOYEES OF THESE STORES)

Employees Koutons Charlie Outlaw Cotton County

I Emp. II Emp. III Emp. IV Emp. Average ( % ) 24 20 20 25 22.25 33 30 35 35 33.25 10 5 4 8 6.75

62

8. What do you observe about the customer satisfaction level ?

Koutons Employees / Satisfaction Level I Emp. II Emp. III Emp. IV Emp. Conclusion – Low Satisfaction Charlie Outlaw Employees / Satisfaction Level I Emp. II Emp. III Emp. IV Emp. Conclusion – Moderate Cotton County Employees / Satisfaction Level I Emp. II Emp. III Emp. IV Emp. Conclusion – Almost No

No Satisfaction

No Satisfaction

Low * * * *

Low

Moderate High

Moderate High * * * *

Very High

Very High

Satisfaction

No Satisfaction * * * Satisfaction

63

Low Moderate *

High

Very High

(9) Sales level growth declining in percentage of DISCOUNTED APPAREL BRANDS ? • KOUTONS –

KOUTONS 06 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

0 0 0 0 8,000 8,000 9,000 9,500 12,000 11,000 9,000 8,000

Growth ( % ) KOUTONS-07 Growth ( % ) -----4,000 -50.00% -----3,000 -25.00% -----2,500 -16.67% -----2,000 -20.00% -----2,500 25.00% 0.00% 3,000 20.00% 12.50% 3,000 0.00% 5.56% 3,500 16.67% 26.32% 3,500 0.00% -8.33% 3,000 -14.29% -18.18% 2,500 -16.67% -11.11% 2,500 0.00%

O

Se p

-0 6

0.40 0.30 0.20 0.10 0.00 -0.10 -0.20 -0.30 -0.40 -0.50 -0.60

ct -0 N 6 ov D 06 ec -0 Ja 6 nF e 07 bM 07 ar -0 A 7 pr M 07 ay Ju 0 7 n0 Ju 7 lA 07 ug Se 07 p0 O 7 ct -0 N 7 ov D 07 ec -0 Ja 7 nF e 08 bM 08 ar -0 8

GROWTH RATE

KOUTONS

64

CONCLUSION – Therefore it becomes clear from the graph that they have seen the continuous decline in the graph and if growth then only due to the peak season. • CHARLIE OUTLAW –

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

CHARLIE OUTLAW-07 0 0 0 8,500 10,000 11,000 12,000 12,500 11,500 4,500 3,500 3,500

Growth ( % ) --------------------17.65% 10.00% 9.09% 4.17% -8.00% -60.87% -22.22% 0.00% GROWTH RATE

30.00% 20.00% 10.00% 0.00% -10.00% -20.00% -30.00% -40.00% -50.00% -60.00% -70.00%

Aug-07

Sep-07

Oct-07

Nov-07 Dec-07

Growth ( % )

65

Jan-08

Feb-08

Mar-08

CONCLUSION – Therefore it becomes clear from the graph that they are on the track of continuous decline in their sales level.

• COTTON COUNTY –

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

COTTON COUNTY-07 0 0 3,000 3,000 3,500 3,500 2,500 2,500 2,500 2,500 2,000 1,500

Growth ( % ) ---------------0.00% 16.67% 0.00% -28.57% 0.00% 0.00% 0.00% -20.00% -25.00%

66

GROWTH RATE

20.00% 15.00% 10.00% 5.00% 0.00% -5.00% -10.00% -15.00% -20.00% -25.00% -30.00% -35.00%

Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 M ar-08

Growth ( % )

CONCLUSION – Therefore it becomes clear from the graph that cotton county presents an interesting story with no growth or low but consistent sales level but also with sharp declines.

(10)

GROWTH RATE OF LOCAL

RETAILERS-It is clear from the graph’s study that all the local retailers show the positive growth sign except those who lost their sales level to Khushboo Wears & Fashioner Readymade.

67

CHAPTER – 9 CONCLUSION OF DATA ANALYSIS & INTERPRETATION

On the basis of the data analysis and interpretation, it can be concluded that there is almost or no effect on the local retailers sales level. Although branded stores affect them in the starting as it is obvious that every new thing attracts the customers whether it is good or not. But they were not able to maintain their sales after 2 or hardly 3 months. Also the report of Central Government Committee formed to find out the same result revealed on 28th May, 2008 that the market of local retailers is different and they enjoy the different type of customer loyalty apart from that of branded stores. Therefore, we can conclude that there is no “EFFECT OF DISCOUNTED APPAREL BRANDS ON 68

LOCAL RETAILERS” except in the starting. Hence the local retailers need to be patient and should increase their sales by adopting different sales promotion strategies.

CHAPTER – 10 LIMITATIONS – This research was not without its part of limitations and some errors and problems that we faced. These all in a nutshell are as follows –

1. Based only on observation, personal experience & employees – This research is basically based on our personal observation & also my experience regarding the business of apparels and oral interview of the employees means totally in a judgemental way. Therefore it is quite obvious to not have accurate data.

2. Some employees are unwilling to give information about their owner’s shop – We were encountered with this problem also that when contacted; employees of other stores were not ready to provide us the information due

69

to their loyalty towards their employer or may be due to the unavailability of time.

3.

Employees may give wrong information – Chances are more that employees due to their loyalty towards their employer may give wrong information like giving higher sales level than actual or may be due to their unawareness about the usefulness of this research work.

4. Time pressure – Time available for the study was also a constraint like – • Few months for the study, • Less time available in college time,

5. Finding accurate data – This is the responsibility of each and every researcher to find the data as accurate as possible, so that the results could be justified.

6. Taking time from the employees for the talk during working hours – This was the biggest constraint that we faced during the research that is taking the time from other stores’ employees as they are busy and reluctant to give any correct information.

70

7. Having a talk with them only at night – Employees if ready could only talk at night at their home or at our home.

CHAPTER – 11 FINDINGS – We find out the following results regarding the effect of discounted apparel brands on local retailers –

1. Captures the market just after the launch – This was under the study that these brands are able to capture the market just after their launch as people feel something new in the apparel market. Overall we can say that the people get affected by their Heavy-Discount play.

2. Fails to maintain the sales level & growth rate – But they fail to maintain their sales level and growth rate because customers want QUALITY not heavy discounts. Therefore customers become aware of the real truth behind these heavy discounts.

71

3. Heavy fall in the sales level and growth rate after a few months – As a result these players see the SMALL BUT CONTINUOUS FALL in their sales level and growth rate after few months of their opening.

4. No or Minute effect on Local Retailers (except in the starting) – Now it is clear with the study that local retailers were effected very minutely in the starting but were able to regain their market share. One important point here can be that local retailers regain their market share even after the sale from the branded players. It shows that – • Either the purchasing power of the customers is increasing day by day or • New players affect the buying behaviour of customers BY GENERATING THE DEMAND.

5. Customers become aware about the truth of the heavy discounts – From the study, we can conclude that customers become aware of the truth of these brands when they are unable to provide quality and provide the goods at the rates greater than those of the local retailers.

6. Customers want quality not heavy discounts – 72

Therefore we can say that customers want quality and are ready to spend their hard earned money even when the product is costly but can’t compromise the quality.

7. Real Story of successive discounts (50 % + 50 %) – People in the starting that the product is free i.e. 50 + 50 % = 100 % discount. Then they thought that the product quality may be poor as they are selling that product which was being manufactured at the cost of Rs.1000/- and now selling at Rs.250/- only.

“BUT NOW THEY ARE AWARE ABOUT THE TRUTH THAT HE PRODUCT’S COST IS ONLY RS.100/- AND STILL THEY ARE MAKING THE PROFIT OF RS.150/- ON THE PRODUCT SELLING AT RS.250/-.”

8. Increased faith (in the local retailers) among the customers – Due to this play, customers move to their local retailers with increased faith.

9. Only aim to increase the number of stores – 73

Now everyone knows that these big corporate houses want to increase their number of stores for more name & fame and money.

10.Mostly stores running in losses – Since the costs are high like fixed rental or profit to the franchisee, therefore mostly store are running in losses or at break-even point where the losses are offset against the profits of other stores.

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CHAPTER – 12 RECOMMENDATIONS – •

FOR THE BRANDED STORES –

On the basis of the results of the research, I would recommend the following steps or actions to the branded players –

1. To sell Quality goods – To sell quality goods apart from focusing on the marketing activities.

2. To have large variety of goods – So that the requirements of almost every customer could be fulfilled.

3. To have the goods for different classes of customers – For every class that is lower, middle and higher class. 4.

To maintain the quality – in the long run.

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5.

To have a close check on the expenses and trying to minimize the expenses in order to increase the overall profit margin.

6. To have the goods adapting to the local needs of the region – For this purpose research can prove to be a great tool.

7. To conduct a survey in the region before opening the store – 8. To focus more on the current shops than on opening new shops – This will help them in focusing more on providing & maintaining quality than opening stores.

9. To compete with the successful local retailers – This can be done by providing the same products at cheaper rates. 10. To

make strategies especially for such type of cities or towns –

This has been observed that these players make the strategies at the top level which may not be suitable for every city. Therefore they should try to make the strategies for each and every city taking the help of their lower level employees as they know more about their city.

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• FOR THE LOCAL RETAILERS – On the basis of the results of the research and also the recommendations given to the branded players, I would recommend the following steps or actions to the local retailers in order to survive in this cut-throat competing market – 1. To adopt heavy marketing strategies during the period of their launch.

2. To adopt different promotional programmes to increase the sales. 3. To cater to the needs of those class which are being targeted by the branded players.

4. To not create panic if their market share get reduced but maintain the quality at the same level as before. 5. To control the expenses. 6. To conduct a survey at their level to find out the preferences of the customers.

7. To increase the variety of goods. 8. To take the help of publicity. 9. To increase the advertisement by selecting the best means for it.

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10.To use the loyalty-card scheme, so that the retailer may be able to maintain their existing customers and those customers who are coming first time at their shop. This can be done by proving them extra discount on their loyalty-card. 11.To use other sales-promotional activities like giving free gifts. 12.They can also take the help of personal-selling. But overall, they will have to be patient and maintain their quality and increase variety.

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CHAPTER – 13 BIBLIOGRAPHYBooks – • Sharma, D.D., Marketing Research, New Delhi, Sultan Chand & Sons Educational Publishers, 2005. • Kothari, C.R., Research Methodology, Second Edition, New Delhi, New Age International (p) Ltd Publishers, 2006. • Sharma.K.K., Statistics in Management Studies, Fourth Edition, Meerut, Krishna Prakashan Media (P) Ltd, 2003.

Other Sources – • Business Standard news-paper. • Business Today Magazine. • Other News-Letters of different websites through e-mail.

Websites:

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•

www.koutons.in

•

www.charlieoutlaw.com

• www.cottoncounty.in • http://www.findata.co.nz/markets/Quote.aspx?e=NSE&s=KOUTONS • www.moneycontrol.com •

http://en.wikipedia.org/wiki/Sampling_(statistics)

•

http://www.socialresearchmethods.net/kb/sampling.php

•

http://www.statpac.com/surveys/sampling.htm

•

www.amazon.com/Sampling-Techniques-3rd-William-Cochran

•

www.marketresearchworld.net

•

www.socialresearchmethods.net

•

www.orientpacific.com/observational-techniques.htm

•

en.wikipedia.org/wiki/Research

•

Other Research Websites.

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