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INTRODUCTION
MARKETING
Marketing is the process of communicating the value of a product or service
to customers. Marketing might sometimes be interpreted as the art of selling products,
but sales is only one part of marketing. As the term "Marketing" may replace
"Advertising" it is the overall strategy and function of promoting a product or service to
the customer.
Marketing satisfies these needs and wants through exchange processes and building
long term relationships. The process of communicating the value of a product or service
through positioning to customers.
Marketing makes use of various social economical managerial, mathematical
artistic, psychological and scientific techniques to attain their goals.
MEANING OF MARKETING:
Marketing means the sale and purchase of goods and services. Marketing is more than
any other business functions; deals with customer's creating customers value and
satisfaction are the heart of modern marketing thinking and practice. In the old sense,
marketing means "telling and selling" but in the new sense marketing means "satisfying
customer needs".
To know the perception of customer, marketing research is a useful tool, with this
marketer can know about how consumers are satisfied with the present products and what
new features consumer's want to add to the product and their suggestions.




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DEFINITIONS OF MARKETING:
According to the American marketing association,
"Marketing the process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchanges that satisfy
individual and organization goals".
According to PhilipKotler,
Marketing is the social process by which individuals and groups obtain what
they need and want through creating and exchanging products and value with others.
OBJECTIVES OF MARKETING:
To satisfy the customers.
To increase profits for the growth of business.
To generate customer base for the business.
To determine marketing mix that will satisfy the needs of the customers.
To increase the quality of life of people.
To create a good image.
CONCEPTUAL FRAMEWORKS:
Marketing deals with identifying and meeting the human and social needs, one of
the shortest definitions of marketing is "Marketing needs profitability" marketing is
typically seen as the task of creating. Promoting and delivering goods and services to the
consumers and business. Marketing is a societal process by which individual and groups
obtain what they need and want through creating, offering and freely exchanging products
and services of value with others.
Marketing has often been described" as the art of selling products", but people
are surprised when they hear that the most important part of marketing is not selling.

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NATURE OF MARKETING:
o Marketing is indeed an ancient art.
o It has been practiced in one form or the other since the days of Adam and Eve.
o Its emergence as a management discipline, however, is of relatively recent origin
and within this relatively short period, it as gained a great deal of importance and
stature.
o Marketing gives customers a choice among products.
o If these products satisfy customers, this can lead to fuller employment, higher
standard of living.
o Marketing has been gaining importance in all organizations in recent years
especially with the advent of globalizations of economic activities.



















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SCOPE OF MARKETING
PERSONS:
Celebrity marketing has become a major business. Artists, Musicians, CEOS,
Physicians, high-profile lawyers and financiers, and other professionals draw help from
celebrity marketers.
PLACE:
Cities, States, Regions, and Nations compete to attract Tourists, Factories, and
Company head quarters, and new residents. Five place marketers include economical
development specialists, real estate agents, and commercial banks, local business
associations, and advertising and public relations agencies.
PROPERTIES:
Properties are intangible rights of ownership of either real property or
financial property .properties are bought and sold, and this occasions a marketing effort
by real estate agents and investment companies and banks.
ORGANIZATIONS:
Organizations actively work to build a strong, favourable image in the mind
of their publics. Philips, the Dutch electronics company, advertises with the tagline
Lets Make Things Betters.
The Body shop and Ben &Jerrys also gain attention by promoting social causes.
Universities, museums, and performing arts\organizations boost their public image to
compete more successfully for audiences and funds.
INFORMATION:
The production, packaging, and distribution of information is one of societys
major industries among the marketers of information are schools and universities,
publishers of encyclopedias, nonfiction books and specialized magazines, makers of
CDS, and Internet websites.

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IDEAS:
Every market offering has a basic idea at its core. In essence, products and services
are platforms for delivering some ides or benefit to satisfy a core need.
THERE ARE TWO TYPES OFAPPROACHES
TRADITIONAL APPROACH
MODERN APPROACH
TRADITIONAL APPROACH:
Traditional approach the objective of traditional marketing is profit maximization
Traditional marketing was sales oriented and not consumer oriented. It gave emphasis to
products. it was concerned with the transfer of ownership. It gave emphasis to physical
movement of goods.
MODERN APPROACH:
Modern approach modern marketing is consumer oriented. Modern marketing
starts and end with the consumer. Modern marketing starts\before production modern
marketing is the guiding element of business.
IMPORTANCE OF MARKETING:
Importance of marketing to the nation and society.
Importance of marketing to the firm.
Importance of marketing to the individuals.




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FUNCTIONS OF MARKETING:
The marketing process performs certain activities as the goods or services move
from producer to consumer. Every firm does not perform all these activities or jobs.
However, any company that wants to operate its marketing system successfully must
carry them out. The following marketing tasks have been recognized for a long time.
1.SELLING:
It is core of marketing. It is concerned with the persuasion of prospective buyers
to actually complete the purchase of an article. Setting pays an important part in realizing
the ultimate aim of earning profit. Selling is enhanced by means of personal selling,
advertising, publicity and sales promotion.
2.BUYING:
It involves what to buy, what quality, how much, from whom, when and at, what
price. People in business buy to increase sales or to decrease costs. Purchasing agents are
much influenced by quality, service and price. The products that the retailers buy for
resale are determined by the need and preferences of their customers.
3.TRANSPORTATION:
Transport is the physical means whereby goods are moved from the places where
they are produced to those they are needed for consumption. Transportation is essential
from the procurement of raw materials to the delivery of finished products to the
customers places. Marketing relies mainly on railroads, tracks, waterways, pipelines and
air transport. The type of transportation is chosen on several considerations such as
suitability, speed and cost.
4.STORAGE:
It involves the holding of goods in proper condition from the time they are
produced until they are needed by consumers (in case of finished products) or by the
production department (in case of raw materials and stores). Storing protects the goods
from deterioration and helps in carrying over surplus for feature consumption or use in
production. Goods may be stored in various warehouses situated at different places.
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5.STANDARDIZATIONANDGRADING:
The other activities that facilitate marketing are standardization and grading.
Standardization means establishment of certain standards or specifications for products
based on intrinsic physical qualities of any commodity. This may involved quantity
(weight or size) or it may involve quality (colour, shape, appearance, material, taste,
sweetness etc). Government may also set some standards e.g., in case of agricultural
products. A standard conveys a uniformity of the products.
Grading means classification of standardized products into certain well-defined
classes or groups. It involves the division of products into clauses made up of unit
processing similar characteristics of size and quality. Grading is very important for raw
material (such as fruits and cereals), mining products (such as coal, iron-ore and
mangenese) and forest products (such as timber). Branded consumer products may bear
grade levels, A B C.
6.FINANCING:
It involves the use of capital to meet financial requirements of the agencies
dealing with various activities of marketing. The services of providing the credit and
money needed to meet the cost of getting merchandise into the hands of the final user is
commonly referred to as finance, function in marketing. In marketing, finances are
needed for working capital and fixed capital, which may be secured from three sources
onward capital, bank loans and advances, and trade credit (provided by the manufactures
to wholesaler and by the wholesaler to the retailers).
7.RISKTAKING:
Risk means lose due to some unforeseen circumstances in future. Risk-bearing in
marketing refers to the financial risk inherent in the ownership of goods held for an
anticipated demand, including the possible losses due to a fall in price and the losses from
spoilage, depreciation, obsolescence, fire and floods or any other loss that may occur with
the passage of time. From production of goods to its selling stage, many risks are
involved due to changes in marker conditions, natural causes and human factors. Changes
in fashions or interventions also cause risks. Legislative measures of the government may
also cause risks.
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8.MARKETINFORMATION:
The only sound foundation, on which marketing decisions may be based, is correct
and timely market information. Right facts and information reduce the aforesaid risks and
thereby result in cost reduction. Business firms collect analyze and interpret facts and
information from internal sources, such as records, sales people and findings of the
market research department. They also seek facts and information from external sources,
such as business publications, government reports and commercial research firms.














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MARKETING CONCEPTS
The marketing concept is the philosophy that urges organization to focus on their
customers needs. Analyzing their needs and making such decisions that satisfy those
needs in a better may than competitors.
THE PRODUCTION CONCEPT:
Production concept prevailed in to late 1920S because most of the products being
produced were the basic necessities and there was a huge unfulfilled demand for them.
The basic idea behind production concept was the firms will produce what they
can produce efficiently. This will ensure enough supply of the products at low-cost and
demand will be created by itself.
THE SALES CONCEPT:
By early 1930S, competition had increased in production and on the other hand
there was less unfilled demand. So all the firms turned towards sales concept. There was
no concept of need identification,, firms were just interested in beating competition by
selling more but neglecting customers satisfaction. We can call it hard selling.
THE MARKETING CONCEPT:
The market concept emerged in the mid-1950. This concept challenged the
selling concept. Instead of "make-and-sell" philosophy. The job is not to find the right
customer's for your product, but the right product for your customer's. The marketing
concept holds that the key to achieve its organizational goals consists of the company
being more effective than competitors in creating, delivering and communicating superior
customer value to its chosen target market.



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MARKETING MANAGEMENT
DEFINITION:
It is the process of planning and executing the conception, pricing, promotion and
distribution of goods, services and ideas to create exchanges with target groups that
satisfy customer and organizational objectives.
This definition recognizes that marketing management is a process involving
analysis, planning, implementation and control; that it covers goods, service and ideas;
that it rests on the notion of exchange; that the goal is to produce satisfaction for the
parties involved.
Marketing management can occur in an organization in connection with any of its
market. Consider an auto-mobile manufacturer, the manager of personnel deals in the
labour market, the manager of purchasing, the raw materials market and the manager of
finance, the money market. They must set objectives and develop strategies for achieving
satisfactory results in these markets.
Marketing work in the customer market is formally carried out by sales managers,
sales people, advertising and promotion managers, marketing researches, customer
service managers, product and Brand managers, market and Industry managers and the
marketing vice-president.
Each job carries well defines tasks and responsibilities. Marketing manager cope with
these tasks by carrying out marketing research, planning, implementation and control.





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MARKETING MIX 4 PS
The marketing mix and the 4ps of marketing are often used as synonyms for each
other. In fact, they are not necessarily the same thing.
4 PS OF MARKETING:
1. Product
2. Pricing
3. Placement
4. Promotion
1. Product :
The product aspects of marketing deal with the specifications of the actual
goods or services, plus how it relates to the end users needs and wants. The range
of a product normally includes supporting elements such as warranties,
guarantees, and support.
2. Pricing:
This refers to the process of setting a price for a product, together with
discounts. The price need not be monetary; it can plainly be what is exchanged for
the product or services, e.g. time, energy, or attention. Methods of setting prices
Optimally are in the domain of pricing

3. Placement
The refers to how the product gets to the buyer; for instance, point-of-sale
assignment or retailing. This third P has furthermore at times been called Place,
referring to the channel by which a product or service is sold (e.g. online vs.
retail), which geographic region or industry, to which division (young adults,
families, business citizens), etc. also referring to how the surroundings in which
the product is sold in can influence sale.



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4. Promotion :
This includes advertising, sales promotion, including promotional
education, publicity, and individual selling. Branding refers to the assorted strategies
of promoting the Product brand or company All the 4 marketing p's are also known as
"the marketing mix" furthermore are frequently used by a marketer to plot a plan, and
place the foundations of fresh projects/campaigns, it is a astonishingly useful strategy
that has been used ever since the early 1960's, and will be constant for as long as new-
found projects/campaigns are being produced.
























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CUSTOMER SATISFACTION
INTRODUCTIONS

Anyone who consumes goods is a consumer. Consumers get exploited in the
market. They respond to advertisements and buy goods. Generally advertisements do not
give all the information that a consumer needs to know or wants to know about a product.
Legal measures for consumer safety and consumer awareness must be uniform,
and transparent in terms of prices, quality of goods, and stocks. Consumers must have the
tools to combat malpractices and protect their rights.
Customer satisfaction is an abstract concept and the actual manifestation of the
state of satisfaction will vary from person to person and product/service to
product/service. The state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and
recommend rate. The level of satisfaction can also vary depending on other factors the
customer, such as other products against which the customer can compare the
organization's products.

Definition :
An individual who buys products or services for personal use and not for
manufacture or resale. A consumer is someone who can make the declslon whether or not
to purchase an item at the store, and someone who can be influenced by marketing and
advertisements. And time someone goes to a store and purchases a toy, shirt, beverage, or
anything else, they are making that decision as a consumer.

According to the long man business English dictionary consumer awareness is a
term used to describe the awareness of a potential or current buyer about a particular
product or company .




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Consumer awareness:
Anyone who consumes goods is a consumer. Consumers get exploited in the
market. They respond to advertisements and buy goods. Generally advertisements do not
give all the information that a consumer needs t knows or wants to know about a product.
Trust is becoming an increasingly valuable commodity within the marketplace, as new
businesses are popping up every day. Certain businesses that partake in false advertising
and unfair business practices attempt to exploit the uninformed purchaser. Consumer
awareness agencies provide protection and training to equip buyers with the knowledge
needed to make informed product purchases.
In the early times, consumer was considered as King of the market but in the
contemporary society, consumers are no longer safe against the mal practices such as,
substandard goods and unsatisfactory services. The consumer has every right to reject any
product or services rendered by any manufacturer in the market and can mould them to
produce goods of their choice. Indian Consumer are ignorant, illiterate and do no know
the role of consumption vis--vis economic system as well as quality of life. When they
are ignorant of their rights, they cannot know their responsibility as consumers.
Consumers in the market find themselves deceived by wrong weights and measures,
adulterated and substandard products causing great damages to health. Neelkanta and
Anand (1992) found that people prefer to absorb and endure the wrong done to them
rather than fight against injustice. This is because consumers do not know the ways and
means of facing them confidently. At present the consumer movement in India is in its
infancy. Vast majority of the people are not even aware of consumerism as a movement
closely connected with the protection of their interest. Many constitutional provisions
have been made by government to protect the consumers. Until and unless the consumers
avail of these provisions, the protection of consumer becomes inevitable. There is a great
need to make them aware of their rights and responsibilities.




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Consumers Union:
The Consumers Union is a consumer awareness organization that specializes in
product testing and comparisons, and keeping consumers informed about marketplace
issues. This organization is involved in the development of policies that influence
business practices within the United States. Consumers Union advocates work within the
regional, national and international court systems on behalf of the consumer. Their
primary areas of interest include industries involved in health care, food safety, housing,
utilities, media, telecommunications and financial services.

Better Business Bureau:
The better Business Bureau (BBB) is an agency through which business in the
United States and Canada can register for accreditation. The accreditation represents a
standard of business practice conducted by the companies who join with this agency.
Some of the common methods of exploitation are
1. Under weight and under measurements not measured or weighed correctly
2. Substandard Quality defective home appliances and medicines beyond expiry
date
3. High pricescharging above the retail price
4. Duplicate Articlesselling fake items in the name of the original
5. Adulteration and Impurityis done to get higher profits
6. Lack of safety Devicesabsence of inbuilt safeguards in appliances
7. Artificial Scarcityhoarding and black marketing
8. False and Incomplete Informationmisleading information on quality, durability,
and safety.
9. Unsatisfactory after sales Servicehigh cost items like electronics and cars
require constant and regular service.
10. Rough behavior and Undue conditionsharassment in getting LPG connection or
a telephone connection.

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Rise of consumer Awareness:
Kautilya was one of the earliest to write in his Arthasastra about the need for
Consumer awareness and protection. With the growth of private sector there is a greater
need for discipline and regulation of the market. Consumers must be aware of the sale and
purchase of goods, the health and security aspects also. Ensuring the safety of food items
sold in the market is essential these days.
Legal measures for consumer safety and consumer awareness must be
uniform, and transparent in terms of prices, quality of goods, and stocks. Consumers must
have the tools to combat malpractices and protect their rights.
Rights and Duties of Consumers:
As codified under the Indian Laws the Consumers have the following
Rights
1. Right to Safetyto protect against hazardous goods
2. Right to be informedabout price, quality, purity
3. Right to chooseaccess to a variety of goods and services at competitive prices.
4. Right to be heardconsumers interest and welfare must be taken care of
5. Right to seek Redressalprotection against unfair trade practices and settling
genuine grievances.
6. Right to Consumer Education.Knowledge about goods and issues related to
consumers.

Duties
1. Get a bill for every important purchase and also the Warranty card
2. Check the ISI mark or Agmark on the goods
3. Form consumer awareness groups
4. Make a complaint on genuine grievances.
5. Consumers must know to exercise their rights.
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Consumer protection Measure
1. Legislation concern ing Consumer Rights.
The Consumer Protection Act 1986 provides for consumer disputes redressal
at the state and national level. With the help of this law the agencies can solve grievances
in a speedy, simple and inexpensive manner. A separate department of consumer affairs
was set up at the state and central government. A three tier system of consumer courts at
the National, State and District levels were set up. These agencies have done good work
by handling lakhs of cases.
2. Public Distribution System.
To protect the poor from price rise and black marketing the government food
security to the poor by supplying essentials through the ration or Fair price shops.
3. Standardization of Products.
These are done to assure the quality of products. The ISI stamp on goods is
placed by the Bureau of Indian standards. This caters to industrial and consumer goods.
These goods can be trusted to confirm to specific standards. Agmark is meant for
Agricultural products.
At the International level the International Organisation for Standardization
(ISO) located in Geneva sets common standards. The FAO and WHO provide food
standards.
Legal formalities for filing a complaint.
The complaint can be written on plain paper. The supporting documents like
the warranty card must be attached. A lawyer is not required. We can argue our case.
Customer satisfaction, a business term, is a measure of how products and
services supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and is part of the four of a Balanced Scorecard.
In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has become a key
element of business strategy.
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Measuring customer satisfaction
Organizations need to retain existing customers while targeting non-
customers; Measuring customer satisfaction provides an indication of how successful the
organization is at providing products and/or services to the marketplace.
Customer satisfaction is an abstract concept and the actual manifestation of the
state of satisfaction will vary from person to person and product/service to
product/service. The state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and
recommend rate. The level of satisfaction can also vary depending on other factors the
customer, such as other products against which the customer can compare the
organization's products.
Work done by Paraguayan, Zenithal and Berry (Leonard L) between 1985 and
1988 delivered SERVQUAL which provides the basis for the measurement of customer
satisfaction with a service by using the gap between the customer's expectation of
performance and their perceived experience of performance. This provides the researcher
with a satisfaction "gap" which is semi-quantitative in nature. Cronin and Taylor extended
the disconfirmation theory by combining the "gap" described by Parasuraman, Zeithaml
and Berry as two different measures (perception and expectation) into a single
measurement of performance relative to expectation.

The usual measures of customer satisfaction involve a survey with a set of
statements using a Likert Technique or scale. The customer is asked to evaluate each
statement in terms of their perception and expectation of performance of the service being
measured.
Methodologies
Am erican Customer Satisfaction Index (ACSI) is a scientific standard of
customer satisfaction. Academic research has shown that the national ACSI score is a
strong predictor of Gross Domestic Product (GDP) growth, and an even stronger
predictor of Personal Consumption Expenditure (PCE) growth. On the microeconomic
level, research has shown that ACSI data predicts stock market performance, both for
market indices and for individually traded companies.
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Increasing ACSI scores has been shown to predict loyalty, word-of-mouth
recommendations, and purchase behavior. The ACSI measures customer satisfaction
annually for more than 200 companies in 43 industries and 10 economic sectors. In
addition to quarterly reports, the ACSI methodology can be applied to private sector
companies and government agencies in order to improve loyalty and purchase intent. Two
companies have been licensed to apply the methodology of the ACSI for both the private
and public sector: CFI Group, Inc. applies the methodology of the ACSI offline, and
Foresee Results applies the ACSI to websites and other online initiatives. ASCI scores
have also been calculated by independent researchers, for example, for the mobile phones
sector, higher education, and electronic mail.
The Kano model is a theory of product development and customer satisfaction
developed in the 1980s by Professor Noriaki Kano that classifies customer preferences
into five categories: Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The
Kano model offers some insight into the product attributes which are perceived to be
important to customers. Kano also produced a methodology for mapping consumer
responses to questionnaires onto his model.
Improving Customer Satisfaction
Published standards exist to help organizations develop their current levels of
customer satisfaction. The International Customer Service Institute (TICSI) has released
The International Customer Service Standard. TICSS enables organizations to focus their
attention on delivering excellence in the management of customer service, whilst at the
same time providing recognition of success through a 3rd Party registration scheme.
TICSS focuses an organizations attention on delivering increased customer satisfaction
by helping the organization through a Service Quality Model.
TICSS Service Quality Model uses the 5 P's - Policy, Processes, People,
Premises, Product/Services, as well as performance measurement. The implementation of
a customer service standard should lead to higher levels of customer satisfaction, which in
turn influences customer retention and customer loyalty.


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How to measure customer satisfaction
Customer Satisfaction can be measured on a quantitative basis. Work done by
Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the
measurement of customer satisfaction with a service by using the gap between the
customer's expectation of performance and their perceived experience of performance.
This provides the measurer with a satisfaction "gap" which is objective and quantitiative
in nature.
Customer Satisfaction Research:
Customer Satisfaction research identifies how well an organization is
performing from the customers viewpoint. It allows any organization to understand how
their customers are with the level of service they are providing at any point in time, and to
track how satisfaction levels change over time. It does not investigate the reasons or
reality behind the Customer Satisfaction, unlike Service Evaluation research but still
provides extremely valuable information such as highlighting an area where service
needs improving.
Tracking satisfaction levels can be particularly powerful when it concentrates
on identifying levels of satisfaction against the specific elements of service that most
matter to customers and which the organization can change; and where possible, compare
satisfaction levels across competing organizations. This can also be used to highlight
differences between customer segments, potentially identifying segments at greatest risk.
Customer Satisfaction research is often used as part of a wider project
designed to help an organization or company improve its service provision, customer
satisfaction and customer interaction.

7 tips for customer satisfaction:
It's a well known fact that no business can exist without customers. In the
business of Website design, it's important to work closely with your customers to make
sure the site or system you create for them is as close to their requirements as you can
manage. Because it's critical that you form a close working relationship with your client,
customer service is of vital importance. What follows are a selection of tips that will
make your clients feel valued, wanted and loved.
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1. Encourage Face-to-Face Dealings
This is the most daunting and downright scary part of interacting with a
customer. If you're not used to this sort of thing it can be a pretty nerve-wracking
experience. Rest assured, though, it does get easier over time. It's important to meet your
customers face to face at least once or even twice during the course of a project.
My experience has shown that a client finds it easier to relate to and work with
someone they've actually met in person, rather than a voice on the phone or someone
typing into an email or messenger program. When you do meet them, be calm, confident
and above all, take time to ask them what they need. I believe that if a potential client
spends over half the meeting doing the talking, you're well on your way to a sale.
2. Respond to Messages Promptly & Keep Your Clients Informed
This goes without saying really. We all know how annoying it is to wait days
for a response to an email or phone call. It might not always be practical to deal with all
customers' queries within the space of a few hours, but at least email or call them back
and let them know you've received their message and you'll contact them about it as soon
as possible. Even if you're not able to solve a problem right away, let the customer know
you're working on it.
A good example of this is my Web host. They've had some trouble with server
hardware which has caused a fair bit of downtime lately. At every step along the way I
was emailed and told exactly what was going on, why things were going wrong, and how
long it would be before they were working again. They also apologized repeatedly, which
was nice. Now if they server had just gone down with no explanation I think I'd have been
pretty annoyed and may have moved my business elsewhere. But because they took time
to keep me informed, it didn't seem so bad, and I at least knew they were doing something
about the problems. That to me is a prime example of customer service.
3. Be Friendly and Approachable
A fellow Site Pointer once told me that you can hear a smile through the
phone. This is very true. It's very important to be friendly, courteous and to make your
clients feel like you're their friend and you're there to help them out.

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There will be times when you want to beat your clients over the head
repeatedly with a blunt object - it happens to all of us. It's vital that you keep a clear head,
respond to your clients' wishes as best you can, and at all times remain polite and
courteous.
4. Have a Clearly-Defined Customer Service Policy
This may not be too important when you're just starting out, but a clearly
defined customer service policy is going to save you a lot of time and effort in the long
run. If a customer has a problem, what should they do? If the first option doesn't work,
then what? Should they contact different people for billing and technical enquiries? If
they're not satisfied with any aspect of your customer service, who should they tell?
There's nothing more annoying for a client than being passed from person to
person, or not knowing who to turn to. Making sure they know exactly what to do at each
stage of their enquiry should be of utmost importance. So make sure your customer
service policy is present on your site -- and anywhere else it may be useful.
5. Attention to Detail (also known as 'The Little Niceties')
Have you ever received a Happy Birthday email or card from a company you
were a client of? Have you ever had a personalized sign-up confirmation email for a
service that you could tell was typed from scratch? These little niceties can be time
consuming and aren't always cost effective, but remember to do them.
Even if it's as small as sending a Happy Holidays email to all your customers,
it's something. It shows you care; it shows there are real people on the other end of that
screen or telephone; and most importantly, it makes the customer feel welcomed, wanted
and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help
Them Out
Sometimes this is easier said than done! However, achieving this supreme
level of understanding with your clients will do wonders for your working relationship.
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7. Honour Your Promises
It's possible this is the most important point in this article. The simple
message: when you promise something, deliver. The most common example here is
project delivery dates.
Clients don't like to be disappointed. Sometimes, something may not get done,
or you might miss a deadline through no fault of your own. Projects can be late,
technology can fail and sub-contractors don't always deliver on time. In this case a quick
apology and assurance it'll be ready ASAP wouldn't go amiss.
Customer satisfaction is a business term, a measure of how products and
services supplied by a company meet customer expectations. It has seen as a key
performance indicator within business.

DEFINITION:
Customer satisfaction may be defined as the degree to which there is match
between the customer's expectations of the product and the actual performance of the
product.

It depends on the products performance relative to the buyers expectations. If
the performance of the product falls short of his expectations the customer is dissatisfied.
If the performance of the product matches his expectations the customer is satisfied. If the
performance of the product exceeds his expectations the customer is highly satisfied.
Customer satisfaction can be achieved through quality, value and service.

In a competitive marketplace where businesses compete for customers,
customer satisfaction has seen as a key differentiator and increasingly has become a key
element of business strategy. For a customer centered company customer satisfaction is
both a goal as well as a major factor in the companys success. Companies that achieve
high customer satisfaction rating must make realize that highly satisfied customers
produce several benefits and they also talk favorably to others about the company and its
products and services.


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Factors influencing customer satisfaction
There are four district factors which influence the customer satisfaction.
1. Product basic design:
How familiar designers are with customers needs, what incentives drive the
designing, manufacturing, and quality control.
2. Sales activity:
What messages the company sends out in its advertising and promotion
programmers, how it chooses and monitors sales force intermediaries, and the
attitudes that it projects to the customer.
3. After-sales: Guarantees, parts and service, feedback, complaints, addling and
overall responsiveness to a customer with a problem.
4. Culture
Intrinsic values and benefits of the firm as well as the tangible and intangible
symbols and systems it uses to those values in to employee behavior at all levels.
3'cs of customer service mix:
Service firms are using 4'cs of customer service mix to deliver superior customer
service.
1 Convenience
2 Connectedness
3 Choice

1. Convenience:
Convenience in customer service addresses fulfilling the consumer's need for
access to product information and filters such a vast amount of information. Interactive
technology facilitated convenience for customer to access the company's homepage on
internet.

25

2. Connectedness:
The new interactive technology enables organizations to connect to their
perspective customers. Thus connectedness allows company to detect and respond
quickly the changing relation between new buyer and seller. Interactive technology
helps the company to develop new products by facilitating consumer research with
accuracy by tracking present trends in consumer life style. Purchasing and
expectations. Connectedness has also increased communication of internal customers
with internal suppliers and better -net worked employees respond quickly to
customers.
3. Choice:
Interactive technology has facilitated consumers to choose to review all ranges
based on price, size, energy, source and other features. Now, in this interaction scenario,
both consumers and the producers are learning from each other and ultimately create
value to value creating process, it is useful to distinguish between static and dynamic
interaction television. We must leave the classic marketing driven CRM paradigm, with
its emphasis on right message/ right place/ right time. Customers will soon expect their
own ay time, anywhere paradigm. Customers want a highly individualized type of
interaction and knowledge that a company can recognize them and treat them as the same
individual.
How do buyers from their expectations? Their expectations are influenced by
their past buying experience, friends, and associates' advice, and markets' and
competitors' information and promises. If markets raise expectations too high, the buyer is
likely to be disappointed.
Growing share of customer :
Beyond simply retaining good customers markets want to constantly increase
their customers- the share they get of the customer's purchasing in their product
categories. They may do this by becoming the sole supplier of products the customer is
currently buying. Or they may persuade the customer to purchase additional company
productions. Thus, banks want a greater share of wallet. Supermarkets want to increase
their share of stomach car companies want a greater share of garage and airlines want
a greater share of travel.
26

Cross selling:
One of the best ways to increase share of customer is through cross.-selling.
Cross- selling means getting more business from current customers of one product by
selling them additional offerings.
Building customer relationships and customer equity:
The importance is of not just finding customer, but of keeping and growing them
as well. Customer relationship management is oriented toward the long term. Today's
companies not only want to create customers, they want to own them for life, capture
their customer lifetime value, and build overall customer equity and result in lower
profits. Thus, the purpose of marketing is to generate customer value profitably.
Customer loyalty and retention:
Highly satisfied customers produce several benefits for the company. Satisfied
customer is fewer prices sensitive. They talk favorably to others about the company and
its products and remain loyal for a longer period. However, the relationship between
customer satisfaction and loyalty varies greatly across industries and
competitive situations.
The relationship between customer satisfaction and loyalty in give for
different markets. In all cases, as satisfaction, as satisfaction increases, so does loyalty.
Highly competitive markets, such as for automobiles Personal computers, show
surprisingly little difference between the loyalty of less satisfied customers and those who
are somewhat satisfied.

Even a slights drop from complete satisfaction can create an enormous drop in
loyalty. The companies must aim high if they want to hold on their customers. Customer
delight creates an emotional relationship with a product or service, not just a rational
preference. This in turn, creates high customer loyalty.




27

Tools for measuring customer satisfaction
Compliant and suggestion system:
A customer centered organization makes it easy for its customers to deliver
suggestions and complaints. Many restaurants and hotels provide forms to reports their
likes and dislikes. A hospital could place suggestion boxes in the corridors, supply
comment cards to existing patients, and hire a patient advocate to handle patient
grievances. These information flows provide these companies with many good ideas and
enable them to act rapidly to resolve problems.
Customer satisfaction surveys:
Studies show that while customers are dissatisfied with one out of every four
purchases, less than 5% of dissatisfied customers will compliant. Most customers Will
buy less or switch suppliers rather than compliant. Therefore, companies cannot
use compliant levels as measure of customer satisfaction. Responsive companies obtain a
direct measure of customer satisfaction by conducting periodic surveys.
They send questionnaires or make telephone calls to a random sample of their
recent customer and ask if they were very satisfied, satisfied, indifferent, somewhat
dissatisfied, or very dissatisfied with various aspects of the company's performance.
There are also stock buyer's views on their competitor's performances.
While collecting customer satisfaction data, it is also useful to ask additional
questions to measure the customer's repurchase intention, this will normally be high if
the customer's satisfaction is high it is also useful to measure the customer's likelihood or
willingness to recommend the company and brand to other persons. A high positive word-
of-mouth score indicates that the company is producing high customer satisfaction.
Companies can hire persons to pose as potential buyers to report their findings on
strong and weak points they experienced in buying the Company's and competitors
products. These ghost shoppers can even pose certain problems to test whether the
company's personnel handle the situation well. Thus, a ghost shopper can complain about
a restaurant's food to test how the restaurant handles this complaint. Not only should
companies hire ghost shoppers, but managers themselves should leave their office from
time to time, enter company and competitor sales situations where they are unknown, and
experience firsthand the treatment they receive as 'customers'.
28

Companies should contact customer who stopped buying or who have
switched to another supplier to learn why this happened. Not only is it important to
conduct exit interviews when customers first stop buying, but also to monitor the
customer loss rate, which, if increasing, clearly indicates that the company that the
company is failing to satisfy its customers.
Attracting and retaining customers:
Today companies are intent on developing stronger bond with their customers,
called customer relationship management (CRM). This is the process of managing
detailed information about individual customers and carefully managing all the customer
touch points with the aim of maximizing customer loyalty.
Attracting Customers:
It is not enough to be skillful in attracting new customers; the company must
keep them and increase their business. Too many companies suffer from high Customer
churns mely, high customer defection.
There are steps a company can take to reduce the defection rate. First, the
company must define and measure its retention rate. For a magazine the renewal rate is a
good measure of retention. Second, the company must distinguish the causes of
customers attrition and identify those that can be managed better.
Third, the company needs to estimate how much profit it loses when it loses
customers. In the case of an individual customer, the lost profits is equal to the customers
Lifetime value that is, the present value of the profit stream that the company would have
realized if the customer had not defected prematurely.
Fourth, the company needs to figure out how much it would cost to reduce the
defection rate. As long as the cost is less than the lost profit, the company should spend
the money.
Customer retention:
Most marketing theory and practice centers on the art of attracting new
customers rather than on retaining and cultivating existing ones. The emphasis
traditionally has been on making sales rather than building relationships;
29

on pre selling and selling rather than caring for the customer afterward. A
company would be wise to measure customer satisfaction regularly, because the key to
customer retention is customer satisfaction.
Today, more companies are recognizing the importance of satisfying and
retaining customers. A highly satisfied customer stays loyal longer, buys more as the
company introduces new products and upgrades existing products, talks favorably about
the company and its products, pays less attention to competing brands and is less sensitive
to price, offers product or service ideas to the company, and cost less to serve than new
customers because transactions are routine.
Some Cautions in Measuring Customer Satisfaction:
When customers rate their satisfaction with an element of the company's
performance- say, delivery - the company needs to recognize that customers vary in how
they define good delivery. It could mean early delivery, on-time delivery, order
completeness, and so on. Yet if the company had to spell out every element in detail,
customers would face a huge questionnaire.













30

OBJECTIVES OF THE STUDY
1. To find out the consumer satisfaction level of the Amaravathi Textiles pvt.ltd.
2. To find out the factors influencing the purchase and buying behavior for
Amaravathi Textiles pvt.ltd.
3. To find out and analyze the competitive position of Amaravathi Textiles pvt.ltd.
4. To offer suggestions regarding quality aspects of Amaravathi Textiles pvt.ltd.
5. To analyze and understand methods for promotion of Amaravathi Textiles pvt.ltd.





















31

NEEDS OF STUDY:
1. It is highly needed for any business organiztion to know estimate customer
satisfaction level
2. It is helpful to promote goods& servces effectively & increase marking sharp
3. It is help full to know the changing needs & tastes of customers
4. It is needed to evaluate its customer satisfaction level place its product in market
5. It is needed to retain existing customers & enhance potential customer





















32

SCOPE OF THE STUDY
The present study Customer Satisfaction towards Amaravathi Textiles has
undertaken to understand the town consumption pattern and also on what factors they are
buying the products. The sample was collected and analyzed to know the awareness level
among the respondents in rural areas (Themmapuram, Ganapavaram, Chilakaluripet and
Edlapadu)
The sample size was taken 200 and the consumption pattern of the respondents
was studied. It was found that the awareness level was negligible. Amaravathi Textiles
pvt.ltd has a distribution existing of retailers, Wholesalers. The regular customer of
Amaravathi Textiles pvt.ltd were consulted through a questionnaire to understand their
purchasing and consumption pattern apart from this, those respondents who did not use
Amaravathi Textiles pvt.ltd were also contacted and a study of their perception towards
Amaravathi Textiles pvt.ltd as a cooking oil was observed.
Since there is every chance of the respondents being influenced by personal
bias and the results can not apply to the whole universe. As no study of the competitors
strategies was made it can not be accurately said who, the major leaders in the market
rate.















33

METHODOLOGY

For analysis & interpretation data can be collected either from primary source
or secondary source it is also called as primary data and secondary data.
Primary data:
Primary data re those which are collected a fresh and for the first time and thus
happen to be original. The popular ways to collect primary data consist of surveys,
interview and focus groups, which shows that direct relationship between potential
customers and the companies.
In primary data collection, we collect the data yourself using methods such as
interview and questionnaires. The key point here is that the data we collect is unique and
our research and until we publish, no one else has access to it.
There are many methods of collecting primary data and the main methods
include:
1 Questionnaire
2 Interviews
3 Focus group interviews
4 Observation
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
number or where you can make counts of words used).
Questionnaires:
A questionnaire was prepared to collect data from the consumers through
interviews. A questionnaire consists of a number of questions printed or typed in a
definite order on a form or set of forms. Questionnaires are a popular means of collecting
data, but are difficult to design and often require many rewrites before an acceptable
questionnaire is produced.





34

Secondary data :
Secondary data means data that already available i.e. they refer to the data
which have already been collected and analyzed by someone else. When the researcher
utilizes secondary data, then he has look into various sources from where he can obtain
them. The researcher must be very careful in using secondary data usually published data
are available in:
1 Companys records / Financial statements
2 Trade Journals
3 Web sites
In this secondary data I have collected information regarding Amaravathi
Textiles pvt.ltd from web sites and company records.

Sampling design :
A sample design is a definite plan for obtaining a sample from a given
population. It refers to the technique or the procedure the researcher would adopt in
selecting items for the sample. Sample design may as well lay down the number of items
to be included in the sample. i.e., the size of the sample. sample design is designed before
data are collected.

Sampling size:
This refers to the number of items to be selected from the universe. The
size of sample should be excessively large nor too small. The sample taken for this
study is 100,
Sampling unit:
A decision has to be taken concerning a sampling unit before selecting sample.
Sampling unit may be geographical one such as stage, district, village, etc., or a
construction unit such as house, flat etc., or it may be a social unit such as family, club,
school etc., or it may an individual.




35

Sampling Method for study :-
The sample method or plan is the procedure or way in which the sampling has
been does.
As are project or research can be done taken to consideration the whole of the
population or universe, the concept of sampling is used
As per the concept of sampling, only some sample is taken from the universe in
order to find out the result.
Convenience method is taken as the sampling method.

Convenience method :-
This method of sampling involves selecting the samples elements using
some convenient going through the rig our of sampling method the researcher may
use of any convenient base to select the requires number of samples.
















36

LIMITATIONS

1 The study is confined to the Amaravathi Textiles pvt.ltd products at Martur. So it
cannot be considered for the entire population.
2 There is chance of bias in the information given by the respondents.
3 The sample size is limited to 100 respondents only. So the actual conclusion
cannot be made with this limited data.
4 As the time spent on project is only 5 weeks it is not possible to go in to detali
study
5 The collected inform action is through primary data
















37

INDUSTRY PROFILE

India Textile Industry is one of the leading textile industries in the world. Though
was predominantly unorganized industry even a few years back, but the scenario started
changing after the economic liberalization of Indian economy in 1991. The opening up of
economy gave the much-needed thrust to the Indian textile industry, which has now
successfully become one of the largest in the world. India textile industry largely depends
upon the textile manufacturing and export. It also plays a major role in the economy of
the country. India earns about 27% of its total foreign exchange through textile exports.
Further, the textile industry of India also contributes nearly 14% of the total industrial
production of the country. It also contributes around 3% to the GDP of the country. India
textile industry is also the largest in the country in terms of employment generation. It not
only generates jobs in its own industry, but also opens up scopes for the other ancillary
sectors. India textile industry currently generates employment to more than 35 million
people. It is also estimated that, the industry will generate 12 million new jobs by the year
2010.
Various Categories
Indian textile industry can be divided into several segments, some of which can be listed
as below:
Cotton, Silk & Woolen Textiles
Readymade Garments
Hand-crafted Textiles & Jute and Coir
The Industry
India textile industry is one of the leading in the world. Currently it is estimated to
be around US$ 52 billion and is also projected to be around US$ 115 billion by the year
2012. The current domestic market of textile in India is expected to be increased to US$
60 billion by 2012 from the current US$ 34.6 billion. The textile export of the country
was around US$ 19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in
2007-08.


38

Table 3.1
Year
Area in lakh
hectares
Production in lakh bales of
170 kgs
Yield kgs per
hectare
1950-51 56.48 30.62 92
1960-61 76.78 56.41 124
1970-71 76.05 47.63 106
2000-01 78.24 78.60 170
2001-02 74.39 117.00 267
2002-03 85.76 140.00 278
2003-04 87.30 158.00 308
2004-05 76.67 136.00 302
2005-06 76.30 179.00 399
2006-07 87.86 243.00 470
2007-08 86.77 244.00 478
2008-09 91.44 280.00 521
2009-10 94.39 315.00 567
2010-11 93.73 290.00 526



39

Though during the year 2008-09, the industry had to face adverse agro-climatic
conditions, it succeeded in producing 290 lakh bales of cotton comparing to 315 lakh
bales last year, yet managed to retain its position as worlds second highest cotton
producer.

STRENGTHS

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

WEAKNESS

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








40

Cotton Exports from India
Table 4.2
Year
Quantity (in lakh bales of
170 kgs)
Value (in Rs./Crores)
1996-97 16.82 1655.00
1997-98 3.50 313.62
1998-99 1.01 86.72
1999-00 0.65 52.15
2000-01 0.60 51.43
2001-02 0.50 44.40
2002-03 0.83 66.31
2003-04 12.11 1089.15
2004-05 9.14 657.34
2005-06 47.00 3951.35
2006-07 58.00 5267.08
2007-08 85.00 8365.98
2008-09 89.00 10520.52
2009-10 72.00 NA








41

Cotton Imports from India
Table 4.2
Year
Quantity (in lakh bales of 170
kgs.)
Value (Rs./Croress)
1996-97 0.30 56.42
1997-98 4.13 497.93
1998-99 7.87 772.64
1999-00 22.01 1967.92
2000-01 22.13 2029.18
2001-02 25.26 2150.01
2002-03 17.67 1789.92
2003-04 7.21 880.10
2004-05 12.17 1338.04
2005-06 5.00 695.77
2006-07 5.53 752.29
2007-08 6.50 986.33
2008-09 7.00 1085.32
2009-10 5.00 NA










42

Current Facts on India Textile Industry

India retained its position as worlds second highest cotton producer.
Substantial increase of Minimum Support Prices (MSPs).
Cotton exports couldnt pick up owing to disparity in domestic and international
cotton prices.
Imports of cotton were limited to shortage in supply of Extra Long staple cottons.

The textile industry occupies a unique place in our country. One of the earliest to
come into existence in India, it accounts for 14% of the total Industrial production,
contributes to nearly 30% of the total exports and is the second largest employment generator
after agriculture. Textile Industry is providing one of the most basic needs of people and the
holds importance; maintaining sustained growth for improving quality of life. It has a unique
position as a self-reliant industry, from the production of raw materials to the delivery of
finished products, with substantial value-addition at each stage of Processing; it is a major
contribution to the country's economy. Its vast potential for creation of employment
opportunities in the agricultural, industrial, organized and decentralized sectors & rural and
urban areas, particularly for women and the disadvantaged is noteworthy. Although the
development of textile sector was earlier taking place in terms of general policies, in
recognition of the importance of this sector.

The textile industry is undergoing a major reorientation towards non-clothing
applications of textiles, known as technical textiles, which are growing roughly at twice rate
of textiles for clothing applications and now account for more than half of total textile
production. The processes involved in producing technical textiles require expensive
equipments and skilled workers and are, for the moment, concentrated in developed
countries. Technical textiles have many applications including bed sheets; filtration and
abrasive materials; furniture and healthcare upholstery; thermal protection and blood-
absorbing materials; seatbelts; adhesive tape, and multiple other specialized products and
applications. The Indian Textile industry has been undergoing a rapid transformation and is in
the process of integrating with the world textile trade and industry. This change is being
driven by the progressive dismantling of the MFA and the imperative of the recently signed
General Agreement Trade & Tariff. In this bold, new scenario, India has to move beyond its
role of being a mere quota satisfying country.
43

Indian textile enjoys a rich heritage and the origin of textiles in India traces back to
the Indus valley Civilization where people used homespun cotton for weaving their clothes.
Rigveda, the earliest of the Veda contains the literary information about textiles and it refers
to weaving. Ramayana and Mahabharata, the eminent Indian epics depict the existence of
wide variety of fabrics in ancient India. These epics refer both to rich and stylized garment
worn by the aristocrats and ordinary simple clothes worn by the common people. The
contemporary Indian textile not only reflects the splendid past but also cater to the
requirements of the modern times.
There has been a distinct and positive shift from quality to quality. Earlier Indian
textiles were considered cheap and of low quality. The industry was at that time driven by
large volumes, which were of paramount importance. The best quality was produced in
Europe and Japan. Since then, India has come a long way, emerging as a manufacturer of
high quality yarns and fabrics. The leading mills such as Raymonds, Read & Taylor, Aravind
mills etc. Improved their quality standards prevailing into the world.

Implementation of New Equipment
The textile industry has also become a high technology. The textile industry has
also become a high technology industry. No body earlier could have concerned that the
industry would require top of the line technical skills. Present day textile machinery is fully
computerized and needs totally new skills to effectively manage it.

New Marketing Trend
On the marketing side, there has been a total change , with almost all players in the
industry extending their reach to international markets. The impact of these trends on the
textile industry is profound. Increasingly any company cannot sustain itself only on local
market demand or only the exports. One has to look at the global markets in totality.
Competition
This compulsion to access and compete in international markets has been perhaps
one of the saving grace for the industry. Clearly the ability and necessity of meeting
global competition head on, has forced the industry to upgrade its technology, product
quality, cost structure and marketing skills. Truly, we have learnt more from the
competitions than from ourselves.
44

Decentralized sectors
Another visible change relates to the scale of operations. Earlier textile mills were
generally reasonably large size becomes a non-constraining factor with the advent of
power loom sector, which enabled small weavers to make and market their own fabrics in
direct competition with large mills.
Technocrats
Another shift in the industry is regarding entrepreneurship. Technocrats have been
able to become possible to have small size spinning, weaving and processing mills. All
this was earlier the domain, solely of large businesses.
Cost Consciousness
The greater competitive pressure have highlighted the need to control cost of
every type of whether it be energy, water or labor all of which were earlier taken for
granted now every mill is highly cost conscious and industrial engineers keep detailed
trace of every cost parameter including energy consumption including energy
consumption, waste control, machine efficiency and productivity. No doubt, this will
have to be an ongoing exercise. Since cost have to be ruthlessly and persistently brought
down.
Labor intensive industry
The textile industry being labor intensive, is slowly migrating from high cost
countries, such as the United states, Europe, Japan, Australia, Taiwan and Korea. All
these countries were at one time leading textile manufacturers. But with the high labor
cost, capacities in these countries are being diverted elsewhere. This is happening even as
the developed economies make large investments in better machinery and automatism.


45

Labor cost comparison (Europe & India)
Table 4.4
Labor Europe Rs/Hour India
Rs/Hour
Skilled workers 750 20.00
Operating personnel 625 12.50
Unskilled workers 500 6.25
Operating hours per annum 6750 48.75

Indian Textile Industry has some inherent strength
Tradition in Textiles and long operating experience
Large and growing domestic market
Strong raw material base
Production across entire textile value chain
Stable, low-risk economy, safe for business growth
Easy availability of abundant raw materials like cotton, wool, silk, jute
Widely prevalent social customs
Variety of distinct local culture
Constructive geographic and climatic conditions





46

Table showing the Indias Competitiveness with Other Country
There is no denying India is competitive enough and will become even more
competitive once its infrastructure issues are sorted out.
Table 4.5
Key countries / regions Key positives Key negatives
China Efficient, low cost,
vertically integrated
Growth at the cost of
profits
India, Pakistan Vertically
integrated, low cost
Lacks economies of scale
and infrastructure support
Mexico (NAFTA),
Turkey
Proximity to market,
duty and quota free
Lack China and Indias
degree of competitiveness
ASEAN (Vietnam,
Cambodia,
Indonesia)
Cheap labor No other cost or locational
advantage
AGOA (African)
countries,
Bangladesh
Quota and tariff
free, cheap labor
Lacks integration and
China and Indias degree of
competitiveness
Hong Kong, Korea,
Taiwan
Trading hubs
proximity to China
No cost advantage,
protected currently by
quotas
USA and EU Non-quota barriers
likely to prove
irritant to imports
US$ 400 bn trade loss
likely ov

47

Indias world market share in Textile Industry
Graph 3.1


The world market share
In spite of the Chinese dominance, India has a fair opportunity to grab a
substantial stake in the projected garment market share. According to PHD Chamber of
Commerce and Industry (PHDCCI), post-MFA, India's market share in the US is
expected to go up to 15 per cent from the present 4 per cent. In the EU, the market share
increase is expected to be 50 per cent from the current 6 per cent to 9 per cent.

The world population is increasing at the rate of 1.8% per annum between 1980 to
2000 while it was 1.4% between 1960 to 1980. Per capita fibres consumption showed an
increase of 0.9% between 1980 to 2000 while it was 1.8% between 1960 to 1980. World
fibre needs will increase by 2.4% till 2001. The figure for 1960 to 1980 was 3.6%.





48

Table 3.6
Particulars UNIT 1960 1980 2000 1960-
80
Trend
1980-2000
Trend
World
population
(BIU) 3.0 4.4 6.2 +1.4 +1.8
Per capita
fibre usage
(KG) 5.0 6.8 7.7 +1.8 +0.9
Fibre need/
billion
Population
(MT) 15.0 30.0 48.0 +15.0 +18.0
Growth rate in (AVG)
Consumption per year annual increase

The above figure an attempt is made to analyse the trends in the world fibre type
usage between 1960 to 2000. Natural fibre usage has dropped from 77% in 1960 to 44%
in 2000 (projected) while man made non cellulose fibres show an increase from 5% in
1960 to 47% in 2000 (projected). This is a phenomenal increase and is due to mainly
advent of polyester its multiple uses and its popularity. As further analysis the man made
fibre production shows that in the man made fibre are polyester has increased its share
from 42% in 1986 to 55% in 2000 (projected). Nylon, Rayon and Acrylic show a
decreasing trend in the percentage. But is absolute terms they registered an increase.


49

Indian Textiles targets to achieve by end of the 11
th
Five year Plan
(2007-2012)
Market size of US$ 115 Billion
o Export target US$ 55 Billion
o Domestic market US$ 60 Billion
India market share in world textiles trade to grow from 3% to 8 %
12 Million additional jobs
Investment Rs.150,600 Crore
Textiles Export Target (In Billions)
Table 3.7
Year ( April
March)
Target Achievement
2009-10 19.73 19.62*
2008-09 15.565 17.80
2007-08 15.16 13.04
2006-07 16.31 13.16
2005-06 15.05 12.41
2004-05 13.72 10.76




50

Textile scenario
Developing countries with both textile and clothing capacity may be able to
prosper in the new competitive environment after the textile quota regime of quantitative
import restrictions under the Multi-Fibre Arrangement (MFA) came to an end on 1st
January, 2005 under the World Trade Organization (WTO) Agreement on Textiles and
Clothing.
As a result, the textile industry in developed countries will face intensified
competition in both their export and domestic markets. However, the migration of textile
capacity will be influenced by objective competitive factors and will be hampered by the
presence of distorting domestic measures and weak domestic infrastructure in several
developing and least developed countries. India must take adequate measures for
capturing its market by promote the development in this sector
Table 3.8
S.No Broad External changes Industry specific
changes
1. Demographic Trends Markets & Marketing
2. Changing taste & preferences
.i.e. Fashion
Technological
3. Understanding hidden & fresh
needs
Engineering
4. Invention of new fibre materials
motivated by market needs
Human resources


51

COMPANY PROFILE

AMARAVATHI TEXTILES Group with its diverse interests in core areas is surging
ahead with drive and determination. with all the companies superbly integrated in one single
campus, the group harnesses an entrepreneurial spirit, state-of-art technology and financial
strengths to emerge as an industrial force to reckon with.
AMARAVATHI TEXTILES GROUP is driven by a passion be the best in al the
areas it operates. Backed by a high density of advanced technology and sophisticated
manufacturing facilities, its only natural that the group is leaf fogging for an outstanding
future. The total group turnover is around 300 crores per annum.
ABOUT THE COMPANY
The founder of AMARAVATHI TEXTILES who has drawn its future planned
growth. A Man whose spirit of Dynamism has helped the group to achieve manifold
growth. Thanks to his pioneering vision, the groups operation grew and market
extended. Today AMARAVATHI TEXTILES is a multi-activity group with a
Rs.300crores turnover, comprising 6 divisions with diverse interest in..
COTTON
SPINNING
TEXTILE

A TRADITION OF ENTERPRISE
Sri Kandimalla Srinivasa Rao left in pursuit of a dream. With just two bags of grain,
he ventured to cultivate 100 acres of land. And with the tell- tale sprite gleaming in his eyes.
His value oriented strategy and adventurous sprit bore fruit consistently. His farmland grew
and from a model farmer he evolved into a dynamitic entrepreneur. He proved that success
starts with a proactive attitude.
A vigorous confidence that one can effectively integrate ideas with enterprise.
Sadinenis first trip to RUSSIA gave him the power of conviction to stride boldly into the
industrial environment. And valiantly into the future.
52

THE BIRTH OF A DREAM
Sri Kandimalla Srinivasa Rao set up a cotton ginning mill in 1984. The operations
grew rapidly to lay solid foundations for giant surging ahead in diverse environments. To the
group, the future is rich in possibilities. A future where the best of minds and men will work.
And will have the most resources to draw upon. Its vision of the future where change will be
embraced as the very basis of opportunity and endeavor.
The managing Director of AMARAVATHI TEXTILES (P) LTD. Relentless pursuit
of perfection is the hallmark of this young and dynamic B.Tech Textiles Graduate.
His rich and professionals experience in the spinning line enabled AMARAVATHI
Textiles Spinning Division to scale new heights. His enterprising zeal and cautious planning
have been the pivotal points in driving the group towards trailblazing progress. Mr.
Kandimalla Srinivasa Rao is committed to labour welfare and his visionary leadership has
earned him a wealth of respect among the employees of AMARAVATHI. Astute
professionals by habit, he is forever aiming higher. He is widely acknowledged as the man
who has fostered a can do culture which starts at top and filters down to every employee at
AMARAVATHI TEXTILES. He is powered by just one belief..
Success is a matter of excellence, and not chance.

Social service has always been a matter of prime concern to him. Which is why he
perennially strives to provide the best education and undertake multi-pronged schemes
towards the betterment of the community. While nurturing a corporate culture that encourages
individual growth, he is committed to a vision that encompasses everybodys enlistment.
COTTON DIVISION
The COTTON GINNING & PRESSING UNIT was started in 1984. The Division
maintains 54 Gins and 1 Hydraulic press with an annualized turnover of Rs.40crores. The
company firmly believes that unmatched capabilities plus an in-depth knowledge of various
cotton growing areas alone can put it on the path to speedy growth. This Division also
processes India s best long staple cotton DCH-32 at Dharwad Branch, Karnataka.
The division is poised to excel and is confidently geared to post an impressive growth
rate. This Division has stayed big thinking big and keeping an eye on the details that sustain
quality.
53

SPINNING DIVISION
The AMARAVATHI TEXTILES SPINNING MILLS DIVISION has been a trend
setter ever since its commissioning. Established in 1991, the plant started commercial
production of World class yarn to the requirement of global markets as well as indigenous
markets. Conceived in a sprawling area in the midst of rich cotton fields of GUNTUR District,
the division is on its way to dizzy heights on the cotton horizon. We are having a capacity of
60,000 spindles. The impressive performance reflects AMARAVATHI TEXTILESS
commitment to continue machine modernization. The division through a concerted Endeavour
assures exemplary quality by undertaking rigid quality control measures which start right at
the at the stage of procuring raw material ingredients down to the last level. It is the dedicated
quality consciousness that as paved the way for a phenomenal demand for AMARAVATHI
TEXTILES products.
All this translates into utmost customer satisfaction. The unit is enviably well-
entrenched as a leading player for the highly competitive export markets ever since 1996.
AMARAVATHI TEXTILES magnificent obsession with exports has won for it important
international markets. In fact, over 70% of the produce was exported major European
countries.
In recognition of its excellent quality conforming to the highest international standards, the
products of Amaravathi have won widespread appreciation and repeat orders. By exporting
world class cotton yarn globally, the mill is leap fogging for the further growth. The thrust on
higher capacity utilization, uncompromising productivity standards, quality management,
astute focus on niche markets, prompt delivery schedules combined with competitive pricing
have resulted in higher sales and profits.
AMARAVATHI VALUES:
v Promptness in execution.
v Transparency in Business
v Integrity in Negotiation
v Innovation that fuels growth


54

ENVIRONMENTAL PROTECTION AND SAFETY A TOP
PRIORITY
Amravati is committed to the conservation of the environment. Our manufacturing
facilities comply with stringent environmental norms and are equipped for effluent treatment.
The Amaravathi Dyeing Plant uses reverse osmosis with a multi effect vaporator to qualify as
a zero discharge unit.
COUNT RANGE : We are running from 50 to 100 counts in single well as double
(TFO) yarns. We are running compact yarn with 12000 spindles (suessen). We will achieve
25000 spindles compact yarn shortly.
TEXTILE DIVISION
The Division was started in 2005. The Units equipped with modern imported
machinery. Presently we are running with 48 Brand New Looms. We have sucker wrapping
and sizing. Total plant planned for 98 Looms. In phased manner we are expanding the Looms
capacity.
STATEMENT OF ACCOUNTING POLICIES GENERAL:
The Financial Statements are prepared on historical cost convention and in accordance
with generally accepted accounting practices.
FIXED ASSETS:
Fixed assets are stated at historical cost less accumulated depreciation.
INVESTMENTS:
Long term Investment is stated at cost and income thereon accounted for on accrual.
Provision towards decline in the value of Long Term Investments is made only when such
decline id other than temporary.
DEPRECIATION:
Depreciation is a written off in accordance with the provisions of schedule XIV of the
companies Act 1956 as follows:
Under straights Line Method in respect of the assets of Spinning, Power and
Textile Divisions.
55

Under written down valve method on the assets of all other divisions of the
company.
INVENTORIES:
Valuation of inventories is made as follows
Raw-Material and Finished goods at cost or net realizable valve whichever is
lower.
Work-in-Progress at cost inclusive of direct production overheads.
Stores and spares at cost.
Electronic power at net releasable valve
Excise Duty liability on finished goods is accounted for as and when goods are cleared
from factory and there is no liability on closing stock of finished goods at the year end.

SALES: Sales are inclusive of Excise Duty.
TAXES ON INCOME:
Current taxes are determined as per the provisions of income Tax Act 1961 in respect
of taxable income for the year ended 31st march, 2003.
Differed tax liability is recognized, subject to the consideration of prudence on timing
differences, being the difference between taxable incomes and accounting that originate in one
period and are capable of reversal in one or more subsequent periods.

SEGMENT REPORTING:
The accounting policies adopted for segment reporting are in line with the accounting
policies of the company with the following additional policies for segment reporting.
Inter-segment Revenue has been accounted for based on the market related prices.
Revenue and Expenses other than interest have been identified to segments on the basis
of their relationship to the operating activities of the segment. Revenue and expense which
related to the enterprise as a whole and are not allocable to segments on a reasonable basis
have been included under Unallocated head.
56

RETIREMENT BENEFITS:
The Company makes regular monthly contribution to provident fund which are
deposited with the Government and Group term Insurance is routed through L.I.C, and are
charged against the revenue. The company has taken Group Gradually (Cash Accumulation)
scheme with Life Insurance Corporation of India . The premium on policy and the difference
between the amounts of gratuity paid on retirement and recovered from the Life Insurance
Corporation of India debited to profit and Loss Account. Leave encashment is accounted as
and when the employees claimed and paid.
PROPOSED DIVIDEND:
Provision is made in the account for the dividend payable (including of all tax
thereon) by the company as recommended by the Board of Directors, Pending approval of
the shareholders at the annual General Meeting.
CONTIGENT LIABILITIES:
Contingent Liabilities are not recognized in the accounts, but are disclosed after a
careful evaluation of the concerned facts and legal issues involved.
Amaravathi Product: YARN
Table No 3.9
Commercial performance
Table 2.2: (in rupees)
Year Sales Turnover Domestic Sales
2003-04 28,34,20,669 28,34,20,669
2004-05 34,46,12,983 34,46,12,983
2005-06 44,48,54,723 44,48,54,723
2006-07 52,60,60,377 52,60,60,377
2007-08 68,97,53,568 68,97,53,568
57

BOARD OF DIRECTORS
K.Srinivasa Rao. Director
K.Bhaskar Director
K.Geetha Director
GENERAL MANAGER.
Shri P.Ramesh, D.T.T., B.A.,
ACCOUNTS MANAGER.
Shri N.Veeraiah, B.Com. A.C.A.
BANKERS
State Bank of India , Guntur
State Bank of Mysore , Guntur .
State Bank of Hyderabad , Guntur .
REGISTERED OFFICE
33-263, Kandimalla Road ,
Pandaripuram,
Chilakaluripet-522616
FACTORY
Martur-522301,
Martur Mandal,
Prakasam District, Andhra Pradesh.

58

DATA ANALYSIS AND INTERPRETATION

1. Customer opinion on awareness about Amaravathi Textiles
pvt.ltd?
Table:1
Table showing customer opinion on awareness about Amaravathi Textiles
pvt.ltd

S.no Awareness No. of
Respondents
% of
Respondents
1 Through retailers 60 60
2 Shop displays 30 30
3 Through middlemen 10 10
Total 100 100













59


Graph ;1
1. Graph showing Customer opinion on awareness about Amaravathi
Textiles pvt.ltd?


Interpretation:
From the aboue table it is clear that 60% of respondents of aware of Amaravathi
Textiles pvt.ltd through retail 30% of respondents aw are Amaravathi Textiles pvt.ltd
shop displays 10% of respondents aware Amaravathi Textiles pvt.ltd meddlemen











0
10
20
30
40
50
60
70
Through retailers shop displays Through middlemen
60

2. How long have been using Amaravathi Textiles pvt.ltd?
Table :2
Table showing how long have been using Amaravathi Textiles pvt.ltd
S. No Usage No. of
Respondents
% of
Respondents
1 Less than 1 year 10 10
2 1 2 years 20 20
3 2 3 years 30 30
4 More than 3 years. 40 40
Total 100 100

















61

Graph :2
2. Graph showing how long have been using Amaravathi Textiles
pvt.ltd


Interpretation:
from about table it is clear that 10% of respondents are using
Amaravathi Textiles pvt.ltd less than 1yr 20% of respondent between 1-2yrs
30% respondents using Amaravathi Textiles pvt.ltd betweer 2-3yrs 40% of
respondent using more than 3yrs Amaravathi Textiles pvt.ltd










0
5
10
15
20
25
30
35
40
45
Less than 1 year 1 - 2 years 2 - 3 years more than 3 years
62

3. Customer Opinion on the availability of Amaravathi Textiles pvt.ltd?
Table :3
Table showing customer opinion on availability of Amaravathi Textiles
pvt.ltd
S.NO Availability No. of
Respondents
% of
Respondents
1 Sometimes available

70 70
2 Always available 30 30
Total 100 100

















63

Graph : 3
3. Graph showing customer opining on the availability of Amaravathi
Textiles pvt.ltd?



Interpretation:
From the above table it is found that, 70% of the respondents are highly satisfied with
the availability of Amaravathi Textiles pvt.ltd 30% of respondenl are not satisfied with
availability of Amaravathi Textiles pvt.ltd











0
10
20
30
40
50
60
70
80
sometimes available Always available
64

4. Customer preferable reason for using Amaravathi Textiles pvt.ltd?
Table :4
Table showing Customer preferable reason for using Amaravathi Textiles
pvt.ltd?

S. No Preference No. of
Respondents
% of
Respondents
1 Tasty 10 10
2 To reduce obesity 20 20
3 Less cholesterols 30 30
4 Low cost 40 40
Total 100 100

















65

Graph : 4
4. Graph showing Customer preferable reason for using Amaravathi
Textiles pvt.ltd






Interpretation:
From the above table, it is clear that 10% of the respondents are using
Dhanalakshmi Cotton seed oil, as it is tasty 20% of respondents to reduce obesity 30% of
respondents due to less cholesterols 40%of respondents prefer due to low cost








0
5
10
15
20
25
30
35
40
45
Tasty To reduce obesity Less cholesterols Low cost
66


5. Customer satisfaction level on quality of the Amaravathi Textiles pvt.ltd?
Table :5
Table showing Customer satisfaction level on quality of the Amaravathi
Textiles pvt.ltd


S. No Satisfaction level No. of
Respondents
% of
Respondents
1 Highly satisfied 60 60
2 satisfied 30 30
3 Dis satisfied. 10 10
Total 100 100














67

Graph : 5
5. Graph showing Customer satisfaction level on quality of the
Amaravathi Textiles pvt.ltd?




Interpretation :
From the above table it is found that 60% of the respondents highly are satisfied
with the quality of the Amaravathi Textiles pvt.ltd, where as 30% of the respondents are
satisfied with quality, and only 10% of the respondents are dissatisfied with the quality.










0
10
20
30
40
50
60
70
Highly satisfied satisfied dis-satisfied
68

6. Customer opinion on price of the Amaravathi Textiles pvt.ltd?
Table :6
Table showing customer opinion on price of the Amaravathi Textiles
pvt.ltd
S.NO Price No. of
Respondents
% of
Respondents
1 low 25 25
2 Reasonable 30 30
3 High 45 45
Total 100 100


















69

Graph : 6
6. Graph showing customer opinion price of the Amaravathi Textiles
pvt.ltd



Interpretation:
From the above table it is very clear that 25 % of the respondents opinion that the
price of the Amaravathi Textiles pvt.ltd is low,30% of respondents opinion that
reasonable 45% of respondents opinion is high











0
5
10
15
20
25
30
35
40
45
50
Low Reasonable High
70

7. Customer association with Amaravathi Textiles pvt.ltd?
Table :7
Table showing customer association with Amaravathi Textiles pvt.ltd
S.NO Awareness No. of
Respondents
%. of
Respondents
1 Below 5 years 20 20
2 5 10 years 30 30
3 Above 10 years 50 50
Total 100 100



















71


Graph : 7
7. Graph showing customer association with Amaravathi Textiles
pvt.ltd




Inte rpretation:
From the above table, it is found that 20% of the respondents are aware of the
Amaravathi Textiles pvt.ltd is bellow 5 years and 30% of the respondents are have
awareness in 5 to 10 years remaining 50% of the respondents have more than 10 years.









0
10
20
30
40
50
60
Below 5 years 5 - 10 years Above 10 year
72

8. Customer opinion on the availability of Dhanalakshmi cotton seed oil
at their nearest shops?

Table :8
Table showing . Customer opinion on the availability of Dhanalakshmi
cotton seed oil at their nearest shops?



S. No
Availability No. of
Respondents
%
1 Yes 35 35
2 No 65 65
Total 100 100
















73

Graph : 8
8. Graph showing . Customer opinion on the availability of
Dhanalakshmi cotton seed oil at their nearest shops?






Interpretation:
From the above table it is found that the 35% of the respondents given opinion
that the Dhanalakshmi cotton seed oil is not available at their nearest shops. 65% of
respondents given that not available at nearest shops








0
10
20
30
40
50
60
70
yes no
74

9. Customer satisfaction level on the taste of Dhanalakshmi cotton seed
oil?
Table :9
Table showing customer satisfaction level on the taste of Amaravathi
Textiles pvt.ltd
S. No Taste No. of
Respondents
%
Respondents
1 Excellent 45 45
2 Good 30 30
3 poor 25 25
Total 100 100
















75

Graph : 9

9. Graph showing customer satisfaction leuel on tarte of Dhanalakshmi
cotton seed oil



Interpretation:
From the above table it is very clear that 45% of the respondents says excellent
with the taste of Dhanalakshmi cotton seed oil.30% says good 25% says poor









0
5
10
15
20
25
30
35
40
45
50
excellent good poor
76

10. Customer opinion on suggesting others to buy Amaravathi Textiles
pvt.ltd?
Table :10
Table showing Customer opinion on suggesting others to buy Amaravathi
Textiles pvt.ltd

S. No Suggest to buy No. of
Respondents
% of
Respondents
1 Yes 70 70
2 No. 30 30
Total 100 100
















77

graph: 10
10. Graph showing Customer opinion on suggesting others to buy
Amaravathi Textiles pvt.ltd?




Interpretation:
From the above table it is found that 70% of the respondents are willing to suggest
other customers to buy Amaravathi Textiles pvt.ltd, and 30% of the respondents are not
willing to suggest others.










0
10
20
30
40
50
60
70
80
yes no
78

FINDINGS

1. Most of the customers know about Amaravathi Textiles pvt.ltd through retailers.

2. Majority of the customers have been using Amaravathi Textiles pvt.ltd since 3
years.

3. Most of the customers are satisfied with the availability of Amaravathi Textiles
pvt.ltd. Through retailers

4. Majority of the customers are using Amaravathi Textiles pvt.ltd for the reason of
low cost and reduce obesity.

5. Most of the customers are moderately satisfied with the quality of Amaravathi
Textiles pvt.ltd.

6. Majority of the customers felt that price of the Amaravathi Textiles pvt.ltd is low
compare to competitor

7. Majority of the respondents oping that Amaravathi Textiles pvt.ltd is not available
at their nearest shops.

8. Most of the customers are not satisfied with the taste of Amaravathi Textiles
pvt.ltd.





79

SUGGESTIONS
1. Company has to focus on shop displays regarding Amaravathi Textiles pvt.ltd.
2. Company has to retain its customers by providing some offers
3. Company has to increase quality standards of Amaravathi Textiles pvt.ltd
4. Company has to concentrate on its distribution channels to make the
Product available to the customer at his nearest shops.
5. Company should open retail outlets in the urban areas to satisfy customer
6. Promotional activities should intensify as the brand awareness of
Cotton seed oil is low when compared to other edible oils.





















80

CONCLUSION

The present study is focused on the consumer awareness and satisfaction in
Amaravathi Textiles pvt.ltd.

By this study we can concoude that Amaravathi Textiles pvt.ltd is available at low
cost and also helps to reduce obesity.

Most of the customers are highly satisfied with the availability of Amaravathi
Textiles pvt.ltd.

more than 60%of customers are using Amaravathi Textiles pvt.ltd since through
retailers

From this study we can say that customers had awareness abovt the Amaravathi
Textiles pvt.ltd. Below 5 years but some people are opined that the Amaravathi
Textiles pvt.ltd is not available at nearest shops.















81

QUESTIONNAIRE


1. Age of the consumer ( )
a. .Below20 years
b. Between 22-30 years
c. Between 33-40 years
d. Above 40 years

2. Genders ( )
a. Male
b. Female

3. What is your education ( )
a . Below 10
th
class
b. Intermediate
c. Graduation

4. What is your occupation ( )
a House wife
b. business
c .Professional

5. . Monthly income ( )
a. Below 5,000
b.5,000 7,000
c. 7,000 8,000
d.Above 8,000





82

6. How do you know about Amaravathi Textiles pvt.ltd? ( )
a. through retailers
b.Shop displays
c. through middlemen

7. How long have been using Amaravathi Textiles pvt.ltd? ( )
a. Less than 1 year
b.1 2 years
c. 2 3 years
d.More than 3 years.

8. What is your Opinion about the availability of Amaravathi Textiles pvt.ltd?
( )
a. Some times available
b.Always available

9. What is the most preferable reason for using Amaravathi Textiles pvt.ltd? ( )
a. Tasty
b.To reduce obesity
c. Less cholesterol
d.Low cost.
10. What is your satisfaction level about the quality of the Amaravathi Textiles
pvt.ltd? ( )
a. highly satisfied
b.satisfied
c. Dis satisfied

11. What is your opinion about the price of the Amaravathi Textiles pvt.ltd?
( )
a. Low
b.Reasanable
c. High


83

12. .Since how long have you been aware about Amaravathi Textiles pvt.ltd?
( )
a. Below 5 years
b.5 10 years
c. Aboue 10 years
13. .Does Amaravathi Textiles pvt.ltd available at your nearest shops? ( )
a. Yes
b.No
14. .Do you satisfied with the taste of Amaravathi Textiles pvt.ltd? ( )
a. Excellent
b.Good
c. Poor
15. .Do you suggest others to buy Amaravathi Textiles pvt.ltd: ( )
a. yes
b.no
















84

BIBLIOGRAPHY
S.No Title Author Publication
1 Marketing
Management

Philip Kotler Prentice Hall of India (p) ltd
2 Marketing
Management

DR.K.Karunakaran Himalaya publitation
3 Marketing
Management

Tapank.Pando Prentice Hall of India (p) ltd

Web sites:
www.textilesindustry.com
www.amaravathitextiles.com
www.cottonindustry.com