Hitesh Summer Project Report IMT

ATL & BTL Advertisement & Sales Promotion Strategy & Budget Optimization

A Summer Project Proposal for

Post-Graduate Diploma in Management

By

Hitesh Grover

Under the guidance of

Shri Amit Saha Assistant Manager(Marketing) Manager(Marketing) Rupa & Co. Ltd.

Dr. Dhiraj Sharma Professor Professor IMT, Ghaziabad

IMT

June,

2011

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By

Hitesh Grover

IMT

June,

2011


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By

Hitesh Grover

Under the guidance of

Shri Amit Saha Assistant Manager(Marketing) Rupa & Co. Ltd.

Dr. Dhiraj Sharma Professor Professor IMT, Ghaziabad

IMT

June,

2011


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Certificate

of Approval

The following Summer Project Report titled " ATL & BTL Advertisement & Sales Promotion Strategy & Budget Optimization at Rupa & Co Ltd" is hereby approved as a certified study in management carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of Post-Graduate Diploma in Management for which it has been submitted. It is understood that by this approval the undersigned do not necessarily endorse or approve any statement made, opinion expressed or conclusion drawn therein but approve the Summer Project Report only for the purpose it is submitted. Summer Project Report Examination Committee for evaluation of Summer Project Report

1. Faculty Examiner

2.

Name

_______________________

___________________

PG Summer Project Co-coordinator _______________________

___________________


Signature

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Certificate

from Summer Project Guides

This is to certify that Mr. Hitesh Grover, a student of the Post-Graduate Diploma in Management, has worked under our guidance and supervision. This Summer Project Report has the requisite standard and to the best of our knowledge no part of it has been reproduced from any other summer project, monograph, report or book.

Dr. Dhiraj Sharma Professor IMT, Ghaziabad

Shri Amit Saha Assistant Manager (Marketing) Rupa & Co. Ltd. Kolkata

Date

Date


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Acknowledgments

This project is a result of valuable contributions of many individuals. I express my sincere gratitude to all of them. I express my gratitude to the Rupa & Co Ltd for having given me an opportunity to work with them and make the best out of my internship. I would like to thank Mr. Amit Saha, Assistant Manager (Marketing) - Rupa & Co Ltd, for his guidance and support throughout the duration of the project. Similarly, a huge support has been offered by Mr. L.S.S.LAL, Vice President, Corporate Planning & Str. Management - Rupa & Co Ltd. This project would not have seen the light of the day without the guidance of Dr. Dhiraj Sharma who has not only given valuable suggestions but also motivated me to take up the project with a varied perspective. I thank my B-school, IMT Ghaziabad for having given me this opportunity to put to practice, the theoretical knowledge that I imparted from the program. Apart from this I would also like to thank all the Professors of IMT, Ghaziabad. Thanks to one and all!

Hitesh Grover PGDM IB 2010-12 Institute of Management Technology, Ghaziabad. Summer Trainee 2011


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Abstract ATL & BTL Advertisement & Sales Promotion Strategy & Budget Optimization By Hitesh Grover

The project ³ATL & BTL Advertisement & Sales Promotion Strategy & Budget Optimization´ deals with creating an integrated marketing communication strategy. The project report starts with the introduction to the Rupa & Co. and its products that are offered. The project was carried through online surveys and face to face surveys, visiting market, shops, shopping malls etc. The respondents were mainly retailers and customers. A lot of more than 50 retailers and 200 respondents were chosen throughout the NCR region.

OBJECTIVES OF THE STUDY The main objective of the study was to devise an advertising and sales promotion strategy for the company and deciding which areas are more effective to spent time and money that to detect the areas with maximum return on investments so as to opti mize budget.

y y y y y

The secondary objectives of the study were: To know the major competitors in the market. To learn about the marketing strategies of the competitors. To find out new, innovative and effective ways of marketing available. To know customers demands and preferences. To study the perception of the retailers to stock of different brands of hosiery vis-à-vis various brands of Rupa.

Scope and Findings y y y

y y

On completion of our study, we have seen following findings which are mentioned below: Which types of products retailers are selling Awareness of brands of Rupa. Retailers¶ and customer¶s satisfaction level and their perception towards different brands of hosiery vis-à-vis Rupa brand. Factors for success of the brands in the region. Competitive analysis

Data Collection method: y

Research methodology involved direct questioning, online surveys, quantitative data, their analysis and interpretation.


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The area in which the research was conducted included Delhi and NCR region.

Recommendations y

y

y

y

y

Customers don¶t pay much attention to the any particular brand but t hey are loyal to the company they wear. So, it¶s better to pay more attention in building overall companies name then stressing on a particular brand. Increasing the quality of the fabric should also be given equal importance. Though the company is already doing a lot in this field but it also had a serious impact on the prices of the product. A tradeoff between the two should be achieved. Discounts are the most suitable sales promotion scheme in small shops whereas discounts play no role in shopping malls when catering to a niche market. Also, point of sales marketing by salesman plays an equally important role in these small shops. Benefits to the retailer ca n turn them into a effective marketing media. Jon and Macroman are R upa¶s most promising brands. Its major competitors are VIP frenchie and Jockey Poco. T.V. is the most effective media for ATL advertising and building the companies name. Magazines ad also play a small role. Contribution by radio ads is almost negligible so resources should not be put in radio ads.

First part of the project report clearly explains interpretation and analysis of the consumer survey. The later part of the project report explains the same for the retailer¶s survey.


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Table of Contents Page

Certificate of Approval ................................ ................................ ................................ ......... 4 Certificate from Summer Project Guides ................................ ................................ ............... 5 Acknowledgments ................................ ................................ ................................ ................ 6 Abstract ................................ ................................ ................................ ................................ 7 Table of Contents................................ ................................ ................................ .................. 9 List of Tables ................................ ................................ ................................ .......................1 0 Abbreviations ................................ ................................ ................................ ......................11 Chapter I: Introduction to Rupa ................................ ................................ ............................ 1 2 Chapter II: Introduction to the project ................................ ................................ .................. 1 8 Chapter III: Consumer survey interpretation................................ ................................ ......... 22 Chapter IV: Retailers survey interpretation ................................ ................................ .......... 26 Chapter V: Recommendations................................ ................................ .............................. 30 Reference Style ................................ ................................ ................................ .................... 31


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List of Tables

Fig

Description

Page

1

Consumer Segment- Gender

22

2

Consumer Segment- Age group

22

3

Consumer Segment- Income group

22

4

Consumer Survey-Consumer buying preferences

23

5

Consumer Survey-Consumer company preference

23

6

Consumer Survey-Costumer loyalty

23

7

Consumer Survey-Consumer purchase frequency

24

8

Consumer Survey-sales promotion ranking

24

9

Consumer Survey-BTL advertising effectiveness

24

10

Consumer Survey-advertising media effectiveness

25

11

Retailers Survey- retailers sales group

26

12

Retailers Survey-company ranking (sales)

27

13

Retailers Survey-brand ranking (sales)

27

14

Retailers Survey-Consumer purchase frequency

28

15

Retailers Survey- sales promotion ranking

28

16

Retailers Survey- sales promotion effectiveness

28

17

Retailers Survey-salesman effectiveness

29

18

Retailers Survey- advertising media effectiveness

29

19

Retailers Survey-suggestions to the company

29


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Abbreviations Abbreviation

Description

ATL

Above-The-Line

BTL

Below-The-Line


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Chapter

I: Introduction to Rupa

Rupa & Co Ltd is India¶s largest hosiery brand, covering the entire range of knitted garments from innerwear to casualwear for men, women & children of all age groups. Early y

history: Rupa & Co Ltd was established in the year 1968 at Kolkata as a innerwear and hosiery manufacturer in India. (http://www.rupa.co.in)

Vision: y

To be a global player in the innerwear and casual wear categories. (http://www.rupa.co.in)

Mission: y

To produce t he finest quality products t hrough continuous innovation and improvement, providing for the consumer a stylish and comfortable experience. (http://www.rupa.co.in)

Image in India: y y

y

Rupa & Co. Ltd. i s privileged to be India¶s No.1 intimate and casual wear Brand. Rupa & Co. Ltd has attained more than 21 percent market share of the Rs 2500 crore branded hosiery undergarment market in India, with a reach, spreading across the length and breadth of India and overseas markets too. The customer-orientation makes Rupa the brand that is closest to the hearts of millions of Indians. (http://www.rupa.co.in)


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Corporate y y y

Profile:

Rupa & Co Ltd exceeded an annual turnover of US $ 11 6 million in 200 9-10. The company has a staff of more than 600 employees throughout India. Rupa & Co Ltd is the largest manufacturer of hosiery and innerwear products in the country for the past 6 years in a row ± a fact which has been recorded in the Limca Book of Records.

USP y

y

y

Rupa & Co Ltd holds the No. 1 position in India for innerwear and hosiery products in terms of market share and number of SKUs ( Stock Keeping Unit) in the respective product range. Rupa¶s products are made with 1 00% INDIAN cotton yarn. Amongst all the cotton growing countries of the world, India ranks number one in cotton cultivation. Indian cotton is the best in terms of fibre properties like Span Length, Microwave, Bundle Strength and Elongation etc. An exclusive product (AIR Vest) is made with imported American Pima Cotton Licensee of SUPIMA. Rupa & Co Ltd is the only company in India which is a Category Licensee of SUPIMA.

Financial Performance- 2010 y y

Rupa¶s revenues have grown at a CAGR of 21% since 2007 Rupa derives majority of its revenues (88%) from Men¶s innerwear products


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Among the various brands, brand Vest & Briefs, Jon account for more than half of the company¶s revenues.

Others include kidswear, thermal wear etc.

Revenues shared by brands for nine months period from April

09

to December 09, 1 USD =

Rs. 46

Accomplishments(http://www.rupa.co.in) y

y

y

Awarded Largest Inner & Casual wear Manufacturing Co. in India by Limca Book of Records for six consecutive years in 2010 Rupa has achieved a production capacity of 1.1 million inner wears or half a million polo shirts a month Rupa with its extensive distribution reach has reached daily sales of 6 lakh pieces.


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Rupa & Company Ltd., Operate a Quality Management System which compiles with the requirements of BS EN ISO 9001-200 8 - for the activities detailed in the scope of registration.

Awards & Achievements(http://www.rupa.co.in) y

y

y y

y

y

y

y

y y

y

An ISO 9000:2000 company, is now the first Indian innerwear manufacturer to become a licensee of SUPIMA, the premier organization of American Pima Cotton growers. The coveted SUPIMA certification is given only to veru select manufacturers of high-quality apparel, whose products are made from 1 00% American Pima Cotton. Rupa & Co. Ltd.¶s Chairman Mr. Prahlad R Agarwal was honored with the Lifetime Achievement Award by the 7th Reid and Taylor Awards for Retail excellence on 9th February, 2011 Export House Recognition Rupa has been awarded the largest inner & casual wear manufacturing company in India by Limca Book of Records for last 6 years. Texcellence Award ± THERMOCOT-TEXCELLENCE 2003 - Best Brand for Woolen Knitwear. th th 6 Annual Fashion Awards ± EURO- The 6 Annual Fashion Awards ±Most admired Innerwear Brand of the year 2006. Master Brand Award ± Rupa & Co. Ltd., India¶s No.1 Knitwear Company was recently conferred with the Master Brand Award by CMO Asia in Association with CMO Council, USA. Brand Leadership Award ± The World Brand Congress 2010 which was attended by 500 attendees from 75 nationalities also awarded Rupa & Co Ltd with a prestigious ³ Brand Leadership Award in Fashion and Lifestyle (Knitted Garments). Rupa adjudged the "star brand india" by the indian consumer Rupa & Co. Ltd. is happy to receive the Award for the Most Popular Innerwear Brand from the 3rd Global Youth Marketing Award. Rupa & Co. Ltd. received the Certificate of Excellence at The Second Annual Inc. India 500 Awards. The award was conferred in recognition of the company¶s exemplary growth and the sustainable success it has achieved.

Manufacturing Locations: y y

y

Rupa & Co. Ltd. Has it¶s Head Office in Kolkata, one of the metro cities in India. The production centres are based in New Delhi, Domjur ( 8 kms from Kolkata) & Tirupur, Tamil Nadu. The nearest ports of shipments are Kolkata, Chennai, Tuticorin and Mumbai respectively.

Manufacturing Facilities Domjur Unit One of the most modern dyeing plants in India, it produces over 25 tons dyed, knitted fabric daily. Tirupur Factory State-of-art plants have also been setup at Tirupur (Tamil Nadu) with the latest machines for fabric checking and layering, cutting and stitching and ironing and stain removing, among other functions. y

y


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Delhi Factory y

State-of-art manufacturing machinery for producing women¶s intimate wear.

Stages from Procurement to Finished Goods


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Yarn Procurement

nitting

Dyeing/Drier/ Compaction

Fabrication

Fabric to Vendor

Vendor to Finished Product Finished Product back to Warehouse Rupa has always believed in modern technology & the latest machinery. Its production facilities are amongst the world¶s best, giving its products that winning edge. Cutting Edge y

y

y

y

Technology

A modern fully equipped laboratory supports many a vital operation at Rupa¶s Dyeing & Processing Unit. Testing for colour, fastness and effects, using high-performance equipment and matching software to facilitate colour correction and colour formulation. Ensuring that fastness properties like rubbing, light, perspiration and washing, conform to international standards for all fabrics. Helping meet specifications, ably assisted by a trained pool of scientists and t echnicians.

Machinery set-up y y y y y y y y y y

Mayer & Cie Knitting Machines from Germany Mayer & Cie Auto Striper machines from Germany Thies soft Flow Dyeing Machine from Germany Fongs Softflow fabric dyeing machines. Santex Finishing Range from Switzerland Strahm finishing range from Switzerland. Bruckner 8 Chamber Stenter from Germany. Datacolor Colour Matching System from USA Mathis Laboratory Dyeing Machine from Switzerland Latest Stitching Machines from Juki, Japan


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Global citizen y y

y

Rupa started to export in the year 200 1 and has met with good success. Today, Rupa had the largest market share of knitted undergarments and casual wear in the entire Indian subcontinent as well as Middle East. Its annual growth has soared at the r ate of over 30% with over 5,00,00 Rupa products being sold every day. It exports its product to UAE , Canada, USA, Chile, UK , Greece, Italy, France etc.

Exports y y y y y y y y y y y y y

Sales Strategy

Direct Customers Through agents Located in India Located in overseas markets Indenting Agents Through importer¶s representatives stationed in India. Through Trade Fair Participation Stock Service Enquiries from Trade Portals Exclusivity Arrangement-Country wise / Territory wise Through trade/business delegations visiting India Catering to the customized requirements & specifications of overseas customers. Joint Ventures, Acquisitions & Co- Branding Etc.

Industry analysis: Indian Market (Wikipedia): y y

y

y y

India is the eleventh largest economy in the world by nominal GDP( 2009) India's per capita income (nominal) is $1,030 , ranked 1 39th in the world, while its per capita PPP of US$ 2,940 is ranked 128th. The Indian textile industry contributes about 14 per cent to industrial production, 4 per cent to the country's gross domestic product (GDP) and 1 7 per cent to the country¶s export earnings India currently accounts for 1. 5% of World trade as of 2007 according to the WTO. The total textile exports have increased to US$ 18.6 billion during April¶09-January¶1 0.

Snapshot of the Global Innerwear Market (www.indiaprwire.com): y

y

The global innerwear market was around USD 30 billion in 2007, and is further projected to increase at the rate of 9% to become USD 31.6 billion by 2010. Of the total global lingerie sales, bras account for 56%, briefs at 32%, and day-wears make the remaining 1 2%, and retail lingerie market has grown by USD 770 million. In 200 9, global revenue in the industry decreased to approximately 29 billion US dollars, or by almost 3% compared to 200 8. Due to the slow growth rate observed in traditional western markets, producers now focus on emerging markets, amongst others Russia and Asia. Double digit growth rates are expected for both China and India in underwear sales over the next few years.


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Chapter

II: Introduction to the project

The report is based on the data collected in summer 20 11 to study the retailers and customers perception towards various brands of Rupa of hosiery in National Capital Region and its secondary purpose is to identify competitive position various brands of Rupa of hosiery in National Capital Region as well as the scope for the improvement in this territory so as to help the company to create a effective advertising and sales promotion strategy.

Rupa & Co. Ltd. ± Sub Brands Not only has µRupa¶ evolved as parent brand for the Company but its slew of sub-brands like:

Rupa¶s product portfolio is dominated by men¶s innerwear products, marketed under various brands for sizeable customer segments

Products and brand Portfolio:


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Rupa has been awarded for being the largest manufacturer of inner and casual wear in India for six consecutive years.

Men¶s Product Portfolio Men¶s Innerwear (Vests, Briefs & Drawers) Jon ± Positioned as the tough one, Jon clads the spectrum of consumer who seek quality at an affordable price range. Frontline ± made from smooth, super-combed cotton and a special Oxyfresh knit. Euro- Fashionable innerwear. Macroman ± Yet another premium quality offering, it is positioned as macho and attractive M-series ± New fashion line to enhance its global image in innerwear & sportswear market. Skywings ± made from 1 00% combed cotton with special fold stitching and provides a smart fit and retain their shape, wash after wash. Interlock ± Extra durable.1 00% cotton. Extra absorbent white vests. Ribline ± Positioned as Vigorous Confident. The unique stretchable weave in fine combed cotton, with special fold stitching, gives elasticity and durability. y

y y y y y

y y

Women¶s

Product Portfolio

Women¶s Intimate Wear y

y

y

(Bra, Panty, Camisole) Softline ± Stylish and sensual through every inch. It is the complete women¶s range within the Rupa portfolio. Butterfly ± Made from 100% super-combed premium cotton for maximum sweat absorbance. Available in a variety of designs, they are truly styled for those who believe in freedom of mind and body. Jon ± Made from 1 00% fine cotton and are available in a fashionable range called Aishwarya.


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Other Product portfolio Kids Wear (Inner wear & Casual wear) y y

Kidline ± A range meant especially for kids. Bumchums ± Made from 1 00% super soft cotton. It includes t-shirts, Bermudas and loungers for the young & trendy.

Thermal Wear y

Thermocot ± Available in five variants-Boiler, Heat, Volcano, Sunshine and Premium. Thermocot is the winner of the Texcellence Award for the Best Winter Knitwear Brand 200304.

Socks y

Footline ± Positioned as fashion at your feet, these ranges of socks are made from 1 00% cotton and are extra durable.

The research problem: The main objective of the study was to devise an advertising and sales promotion strategy for the company and to decide which areas are more effective so that the limited resources are allocated efficiently to sectors on the basis of their respective return on investments so as to optimize budget.

y y y y y

The secondary objectives of the study were: To know the major competitors in the market. To learn about the marketing strategies of the competitors. To find out new, innovative and effective ways of marketing available. To know customers demands and preferences. To study the perception of the retailers to stock of different brands of hosiery vis-à-vis various brands of Rupa.

Importance of research: For marketers, research is not only used for the purpose of learning, it is also a critical component needed to make good decisions. Market research does this by giving marketers a picture of what is occurring (or likely to occur) and, when done well, offers alternative choices that can be made. For instance, good research may suggest multiple options for introducing new products or entering new markets. In most cases marketing decisions prove less risky (though they are never risk free) when the marketer can select from more than one option. (http://www.knowthis.com/principles-of-marketing-tutorials/marketingresearch/importance-of-marketing-research/)

The research design: y

y

Survey of retailers and customers was conducted by visiting various market complexes, shopping malls etc. in and around New Delhi. Research methodology involved direct questioning, online surveys, quantitative data, their analysis and interpretation. Sample size:


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The sample size included more than 200 customers and more than 50 retailers. For the purpose of market research for the Rupa & Co Ltd the area covered included Delhi and NCR region. y

y y

The online survey was conducted on www.ieseg.qualtrics.com. Direct surveys were again filled in the website for the analysis. The analysis is done in the website itself and by using SPSS software Data analyses and interpretation The primary analyses will be done through the use of the computerized statistical tools like: Percentage analyses Pie charts Bar chart


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Chapter

III: Consumer survey interpretation

Target group: In customers, the respondents selected were mainly males because this is the segment that generates maximum sales. Table-1 Answer

%

Male

73%

Female

27%

Total

100%

The age group mainly comprised of people between 1 5 and 25 years. Table-2 Answer

%

between 0 and 15

2%

between 15 and 25

58%

between 25 and 40

38%

above 40

3%

Total

100%

Most of the respondents were students or people with a salary of less than Rs. 20,000 per month. Table-3 Answer

%

Less than Rs.20,000

56%

Between Rs.20,000 and Rs.30,000

14%


9%


8%

Above Rs.50,000

13%

Total

100%

The table below shows the percentage of respondents who ranked the particular preference with 1 being the preferred e.g. quality of the fabric is given the first importance by more than 35% respondents.


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Table- 4 #

Answer

1

2

3

4

5

6

36.78

33.33

11.49

5.74

4.59

8.04

1

quality of the fabric

2

brand name

9.19

14.94

33.33

27.58

11.49

3.44

3

Price

4.59

10.34

35.63

34.48

12.64

2.29

4

promotional schemes

4.59

5.74

6.89

14.94

55.17

12.64

5

comfort

33.3

32.18

5.74

13.79

9.19

5.74

6

other criteria

11.49

3.44

6.89

3.44

6.89

67.81

Clearly most of the customers gave quality of the fabric and comfort as the most important criteria. According to most of the respondents the other criteria that they consider before buying their innerwear is design and look. Apart from this, other criteria which are given importance by the customers are fitting, durability and color. Customers give least value to promotional schemes. Majority of the customers buy Jockey. Other companies which a very few customers buy are Calvin Klein, Bodycare, Lovable, Bwitch, Gopal, Enamor, Triumph, Elance, Debenhams etc. Table- 5 Answer

%

- Rupa

11%

- Amul inner wear

3%

- Jockey

64%

- Lux

0%

- Dollar

1%

- VIP

6%

- others

14%

Total

100%

The brand which customers buy the most is Jockey Poco. This shows that customers are more attracted towards the company name than the brand name. Awareness of brands was found to be very low amongst customers and most of the customers were not sure of which brand they usually wear. After company name, the next preference is given to price because of which the Poco is boughtthe most as it is one of the cheapest brands of Jockey. The below table shows that

79%

of the respondents are to loyal to the company they wear.

Table -6 Answer

%

Yes

79%

No

21%

Total

100%

Most of the customers repeat their purchases once in 3 months as shown by the table below.


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Table -7 Answer

%

- more than once a month

6%

- once in 3 months

56%

- once in 6 months

28%

- less than once in 6 months

10%

Total

100%

In the table below, customers rated on the scale of 5 the effectiveness of each of the sales promotion technique with 5 being the most effective. Most of the customers are affected by discounts and price off. The next preference is given to bonus packs. Table -8 #

Question

1

2

3

4

5

1

--> Discounts

23.53

19.12

13.24

14.71

29.41

2

--> premium

13.24

25

33.82

19.12

8.824

3

--> bonus packs

10.29

19.12

22.06

38.24

10.29

4

--> instant redemption coupons

10.29

13.24

32.35

25

19.12

5

--> response offers from newspaper or magazines

17.65

25

20.59

22.06

14.71

6

--> price off

11.76

20.59

25

17.65

25

Table -9 Customers were asked if they will change their company preferences under the following circumstances: Question

Yes

No

If another company offers better promotional offers and schemes?

38.24

61.76

If retailer tells you that another company is offering a better fabric than what you normally buy?

54.41

45.59

The responses clearly state that the most of the customers are not affected by promotional schemes. A significant number of customers go by what retailer suggests. When

asked which advertising media according to them was most effective in instigating sales, a clear majority said television Table -10 Answer

%

- Television

59%

- magazines

21%

- newspaper

16%

- radio

0%

- others

4%

Total

100%

Other sources here, according to the respondents would be Internet etc. ATL & BTL Advertisement & Sales Promotion Strategy & Budget Optimization

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Chapter

IV: Retailers survey interpretation

Survey of retailers was conducted by visiting various market complexes, shopping malls etc. in and around New Delhi. Retailer¶s survey yielded the following result: Majority of the respondents here were retailers whose monthly sales were below Rs month.

50,000

per

Table-11 Answer

%

- Less than Rs 50000

58%

- Between Rs.50,001 and Rs.100,000

35%

- Between Rs.100,001 and Rs.200,000

8%

- Between Rs.200,000 and Rs.3,00,000

0%

- Above Rs.3,00,000

0%

Total

100%

Similar questions, as customers, were asked to the retailers. There responses were as follows: -

According to more than 50% of the retailers, customers are more inclined towards brand name and quality of the fabric than anything else. Jockey sells the most followed by Rupa and VIP. Companies which mostly sell in the terms of ranking are: Table-12


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Companies: 1. 2. 3. 4. 5.

Jockey Rupa VIP Amul Dollar

6. Levis 7. Dixcy 8. T.T. 9. Hannes 10. Groversons 11. Swagat 12. Divya 13. Silver 14. Euro

The brands which mostly sell in the order of ranking are: Table-13 Brand Ranking 1. Poco 2. Jon 3. Frenchie 4. Macroman 5. Josh 6. Macho 7. Comfort 8. Stretch 9. Classic 10. T.T. 11. Drift 12. Filings 13. Bonus 14. Alliance 15. Basic 16. Promozone

Most of the customers repeat their purchase of undergarments more than once in

3

months.

Table-14


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Answer

%

- more than once a month

42%

- once in 3 months

38%

- once in 6 months

19%

- less than once in 6 months

0%

Total

100%

More than 80% of the retailers say that their customers buy a product with a higher discount. Discount is preferred more than any other promotional schemes. Table-15 Promotions:

%

- discount

81%

- premium

0%

- bonus packs

4%

- instant redemption coupons

0%

- response offers from newspaper or magazines

0%

- price off

0%

- any other, please specify

15%

Total

100%

A majority of customer is attracted towards promotional schemes and offers but it highly depends on the location of the market. There are a significant number of markets where customers do not ask for promotions. 35% retailers say that less than 25% of the customers change their decision of buying a product based on better promotional schemes and offers. Table-16 Answer

%

- less than 25%

35%

- between 25% to 50%

4%


19%


42%

Total

100%

According to retailers, majority of the people don¶t change t heir preferred company even if sales person tells them that another company is offering them a better fabric. Table-17


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Answer

%

- less than 25%

35%


38%


15%


12%

Total

100%

According to almost every retailer, Television Ads are instrumental in increasing sales. For BTL advertising hoardings, salesman etc are important but these t ypes of advertisement do not play a major role. This is shown in the table as only 15% retailers think it is most important. Table-18 Answer

%

- Television

81%

- magazines

12%

- newspaper

0%

- radio

0%

- any other, please specify

15%

Following are a few suggestions given b y shopkeepers for increasing sales: Table-19 Suggestions Increase advertisement Decrease price More Schemes Better Quality Increasing benefits and margin of the shopkeeper Maintain the price and stand on the goodwill of the product distribution- sales man visit regular Less emphasis on the grievances of shopkeepers, hesitation in replacement of damaged pieces & poor quality

According to retailers, above the line advertising is more suitable in increasing sales. Though below the line advertising also plays a important role in increasing sales. Television, as has been already stated, is the best medium for ATL advertising. For BTL advertising, more boards and banners should be placed. Also, emphasis should be paid to promotional schemes and discounts. Salesperson does play a significant role in increasing sales. Also, retailers from small shops catering to economy class had a complaint that prices have more than doubled in a last few years.


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Chapter

V: Findings and Recommendations

After conducting the research and detail analysis of the same, it can be concluded that the Rupa¶s performance is quite good in the NCR region. Jockey is the major competitor in the region and is ahead of Rupa. On completion of our study, we have seen following findings which are mentioned below: Which types of products retailers are selling Awareness of Rupa brand. Retailer¶s and customer¶s satisfaction level and their perception towards different brands of hosiery vis-à-vis various brands of Rupa. Factors for success of the brands in the region. Competitive analysis y y y

y y

On successful completion of the project at Rupa & Co Ltd, as a summer intern, I recommend few things on devising advertising and sales promotion strategy: y

y

y

y

y

y y y y y y

Customers don¶t pay much attention to the any particular brand but they are loyal to the company they wear. So, it¶s better to pay more attention in building overall companies name then stressing on a particular brand. Increasing the quality of the fabric should also be given equal importance. Though the company is already doing a lot in this field but it also had a serious impact on the prices of the product. A tradeoff between the two should be achieved. Discounts are the most suitable sales promotion scheme in small shops whereas discounts play no role in shopping malls when catering to a niche market. Also, point of sales marketing by salesman plays an equally important role in these s mall shops. Benefits to the retailer can turn them into a effective marketing media. Jon and Macroman are Rupa¶s most promising brands. Its major competitors are VIP frenchie and Jockey Poco. T.V. is the most effective media for ATL advertising and building the companies name. Magazines ad also play a small role. Contribution by radio ads is almost negligible so resources should not be put in radio ads. Limitation of study Time constraint. Resources constraint. Bias on part of respondents. Retailers were hesitant in giving responses. Inexperience on part of interviewers. Limited area of study

Customers and retailers are hesitant in answering long questionnaire. More information could be extracted from further study. Also the area of study was quite limited.


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Hitesh Summer Project Report IMT

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