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CONSUMER BEHAVIOUR

INDIAN ACADEMY DEGREE COLLEGE, BANGALORE

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CONSUMER BEHAVIOUR

EXECUTIVE SUMMARY
This project report deals with studying the consumer behaviour towards Karnataka Silk Industries Corporation Limited through

direct interview as a technique using questionnaires and is titled as


A STUDY ON CONSUMER BEHAVIOUR with special reference

towards the products of KSIC Ltd.

The study was conducted at KSIC Head Office (Bangalore) with the help of datas which were collected by frequent discussion with the company executives and officials. Data were also collected from Annual sales report, journals and websites of KSIC.

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The data thus collected has been analyzed and interpreted with suggestions, if found necessary, the company can adopt these suggestions based on the project.

This study was conducted mainly on Academic ground and will be considered as a successful effort if some of the findings and recommendations are proved to be useful to the organization.

The consumer behaviour found to be good from the analysis and interpretation.

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MARKET: A market is any place where the sellers of a particular good or service can the buyers and service is a to buyers something in there to be take a meet where with there of that goods potential for transaction place. must The have

they can offer exchange for a potential transaction.

A market consists of all potential customers sharing a particular need or want, which might be willing and able to engage in exchange to satisfy that need or want. It can also be defined as Individuals and Organisationswith purchasing power, desire and an authority to buy the products.
MARKETING:

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Marketing means human activity taking place in relation to market. It means working with markets to actualize potentialexchange for the purposeof satisfying human needs and wants. Marketing is the business that identifies unfulfilled needs and wantsto define and measure their magnitude, determine which markets company can best serve, decides on appropriate products, services and program to serve these markets and call upon everyone in the company to think and serve the customers. Marketing is the link between society material requirements and its economic atterns of response. The KEY FACTOR to business success is marketing. Marketing is a comprehensive term and it includes all resources and a setof activities necessary to direct and facilitate the flowof goods and services from producer to consumer in the distribution. Businessmen refer marketing process as distribution, which constitutes the primary resource in marketing. We have twin activities, which are more significant in marketing. a) Matching the product of services,as an article of trade, with demand that is customer needs and desire or target market. b) The transfer of ownership and posession at every stage is the flow of the goods from the primaryproducerto the ultimate consumer.

Marketing comprises of all activities involved in the determination and satisfaction of customer needs at a profit. By means of marketing function marketer can direct the firms response to every

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changing market environment and orient all parts of the business towards the creation of satisfied customer. The customer is the KING in the market. Customer tries to satisfy his needs and wants from different market sources. His tastes fashions and preferences also change from time to time. Hence, the marketershouldhavean art of reading the mind of the consumer and act accordingly. DEFINITION: Marketing deals with identifying and meeting human and social needs. The shortest definition of marketing is meeting needs profitably Marketing is a social and managerial process by which individuals and group obtain what they need and want through creating offering and exchanging products and value with others.

The above marketing definition rests on the following Core concepts: Needs Wants Demand Products Utility Value and satisfaction Exchange transactions and Relationship Market Marketing and Marketers As given by- Philip Kotler
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American Marketing Association defines marketing as an organisational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways the benefit the organisation and its stake holders. According to Peter Drucker, Marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Marketing should resultin a customer who is ready to buy. Marketing Management goods and services is the process of planning and

executing the concepts of Pricing, Promotion and Distribution of to create changes that satisfy individual or organisation objectives. It is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value. Marketing is basically your interaction with your consumer. This interaction with your consumer is done so that you can get the consumer to purchase your product or service. Basically that is what marketing is all about, getting the customer to purchase your product or service. There is a tendency to confuse marketing with other terms like advertising or publicity etc. However, advertising is only a small part of marketing. Advertising is one of the ways in which you can get the customer to purchase your product or service. There are many other ways. Like "publicity" though newspapers will increase awareness about your product or service and thus may get the customer to purchase your product or service.
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The point is that marketing is a mixture of all the activities of advertising, promotion, publicity, deciding the look and feel of the product, how it will be sold and sent to the consumer etc. All of these are the different parts of marketing. Marketing can be thought of as a mixture of all these activities that will get the consumer to buy your product. In fact, this gives us one of the important terms related to marketing called "marketing mix". Marketing mix, as stated above is a mixture of all the above stated activities designed to get a particular set of consumers to buy your product. Marketing Information is the collection, communication and interpretation of such information as, the number of customers and their locations, their purchasing power, their product and brand preferences, their motivation andso on.

THE MARKETING CONCEPT: The marketing concept emerged in the mid-1950s. Insteadof a product-centered, make-and-sell philosophy,business shifted to a customer-centered. Sense and respond philosophy.Instead of hunting, marketing is gardening. The job is not the right customers for your products, but the right products for your customers. The marketing concept holds that the key to achieve organisational goals consist of the company being more effective competitors in creating , delivering and communicating superior customer value to its chosen target markets. Theodore Leavitt of Harvard drew a perceptive contrast between the selling and marketing concepts: selling focusses on the needs of the buyer.
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Selling is preoccupied with the sellers need to convert his production into cash; marketing with the idea of satisfying the needs of the customer by means of theproduct and the whole cluster of things associated with creating, delivering and finally consuming it. Several scholars have found that companies who embrace the marketingconcept achieve superior performance. This was first demonstrated by companies practising a reactivemarket orientationunderstanding and meeting customers expressed needs. Some critics say this means companies develop only low-level innovation is possible if the focus ison customers latent needs. He calls this a proactive marketing orientation. Companies such as 3M and HP and Motorola have made a practice of researching or imagination latent needs through a probe-and-learn process. Companies that practice both a reactive and proactive marketing orientation are implementing a total market orintation and arelikely to be the most successful. THE HOLISTIC MARKETING CONCEPT: A whole set of forces that appeared in the last decade call for new marketing and business practices. Companies have new capabilities that can transform the way they have been doing marketing. Companies need fresh thinking about how to operate and compete in a new marketing environment. Marketers in the twenty-first century are increasingly recognizing the need to have a more complete, cohesive approach that goes beyond traditional applications of the marketing concept.

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The Holistic Marketing concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognizes their breadth and interdependencies. Holistic marketing recognizes that "everything matters" with marketing and that a broad, integrated perspective is often necessary. Four components of holistic marketing are relationship marketing, integrated marketing, internal marketing, and social responsibility marketing. Holistic marketing is thus an approach to marketing that attempts to recognize and reconcile the scope and complexities of marketing activities.

NATURE AND SCOPE OF MARKETING:


Marketing centers around the consumer:- Marketing

thinking starts with the fact of human needs and wants.


Marketing begins and ends with the customer:-

Marketing starts even before the actual product begins. Marketing forms the foundation of product innovation and conception.
Marketing

is the guiding element of business:-

Marketing a trade play vital role in the economic growth and


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overall development of a nation. Its aim is to reach customers at a maximum speed with minimum cost.
Marketing is a system:- Marketing is an ongoing and

dynamic process involving a set of interacting and interrelated activities to reach the customer. It receives inputs from the customers in the form of valuable information and processes this information to supply the desired products/services to satisfy consumer needs.
Marketing is a goal oriented process:- The basic aim of

marketing is to generate profits along with customer satisfaction. Increase in sales volume, higherprofits and considerable growth are the objectivesof marketing along with social objectives.
Marketing

is a process of exchanges:- Marketing

emerges when people decide to satisfy needs and wants through exchanges. exchanges are the act of obtaining a desired product from someone by offering something in return.

STRATEGY: Strategy is the game plan developed by a company for each of its businesses to achieve its long run objectives in the light of its industry position, opportunities, skills and resources. TYPES OF MARKETING SRATEGIES WITHIN THE

FRAMEWOK OF IMPERFECT COMPETITION: Product differentiation:

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The method of introducing of differential product on the basis of differential features or products attributes, quality or brand image and after sales service for commanding abetter price from the consumers is called Product Differentiation. The basic objective of product differentiation is to establish products whichare different, distinctive or even unique in the way that they match custom needs compared to other existing products or brands available in the market. maruti cars, Dove soap, Airtel Detergent, Timex watches and ONIDA colour TV are examples of Product differentiation. Market segmentation: Marketing segmentation is the act of identifying and profiling distinct groups of buyers who might require separate products and/or marketing mixes. The basic objective of market segmentation is to serve not all but preferably a section of the market more effectively for the best mutual benefit for consumers and sellers. General Motors, Ford Motors, Proctor and Gamble and BASF companies often large range of products or brands to their highly segmented markets.

SEGMENTATION, TARGETING AND POSITIONING:

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A marketer can rarely satisfy everyone in a market. Not everyone likes the same cereal, hotel room, restaurant, automobile, college, or movie. Therefore, marketers start by dividing up the market into segments. Segmentation involves finding out what kinds of consumers with different needs exist.? They identify and profile distinct groups of buyers who might prefer or require varying product and services mixes by examining demographic, psychographic, and behavioral differences among buyers. The marketer then decides which segments present the greatest opportunity-which are its target markets. For each chosen target market, the firm develops a market offering. The offering is positioned in the minds of the target buyers as delivering some central benefit(s). For example, Volvo develops its cars for buyers to whom automobile Safety is a major concern. Volvo, therefore, positions its car as the safest a customer can buy. Companies do best when they choose their target market(s) carefully and prepare tailored marketing programs.

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Positioning involves implementing our targeting. For example, Apple Computer has chosen to position itself as a maker of userfriendly computers. Thus, Apple has done a lot through its advertising to promote itself, through its unintimidating icons, as a computer for ? OFFERINGS AND BRANDS: Companies address needs by putting forth a value proposition, a set of benefits they offer to customers to satisfy their needs. The intangible value proposition is made physical by an offering, which can be a combination of products, services in formation, and experiences. A brand is an offering from a known source. A brand name such as McDonald's carries many associations in the minds of people: hamburgers, fun, children, fast food, convenience, and golden arches. These associations make up the brand image. All companies strive to build brand strength-that is, a strong, favorable, and unique brand image. VALUE AND SATISFACTION: The offering will be successful if it delivers value and satisfaction to the target buyer. The buyer chooses between different offerings on the basis of which is perceived to deliver the most value. Value reflects the perceived tangible and intangible benefits and costs to customers. Value can be seen as primarily a combination of quality, service and price (qsp), called the "customer value triad" value increases with quality and

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service and decreases with price, although other factors can also play an important role. Value is a central marketing concept. Marketing can be seen as the identification, creation, communication, delivery, and monitoring of customer value. Satisfaction reflects a person's comparative judgments resulting from a product's perceived performance (or out- come) in relation to his or her expectations. If the performance falls short of expectations, the customer is dissatisfied and disappointed. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted. We define value as a ratio betwwen what the customer gets and what he gives. The consumer gets benefits and assumes cost. The benefits, the cost includes monetary cost, time cost, energycost and psychic cost. Thus,Value is given asValue=Benefit/cost= Functional benefits + Emotional benefits/monetary cost +time cost + Energy cost + Psychic cost NEEDS, WANTS, AND DEMANDS: The marketer must try to understand the target market's needs, wants, and demands. Needs are the basic human requirements. People need food, air, water, clothing, and shelter to survive. People also have strong needs for recreation, education, and entertainment. These needs become wants when they are directed to specific objects that might satisfy the need. An American needs food but may want a hamburger, French fries, and a soft drink. A person in Mauritius needs food but may want a mango, rice, lentils, and beans.
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Wants are shaped by one's society. Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes; only a few are willing and able to buy one. Companies must measure not only how many people want their product but also how many would actually be willing and able to buy it. EXCHANGE AND TRANSACTIONS: A person can obtain a product in one of four ways. One can selfproduce the product or service, as when one hunts, fishes, or gathers fruit. One can use force to get a product, as in a holdup or burglary. One can beg, as happens when a homeless person asks for food; or one can offer a product, a service, or money in exchange for something he or she desires. Exchange, which is the core concept of marketing, is the process of obtaining a desired product from someone by offering something in return. For exchange potential to exist, five conditions must be satisfied which are as follows1. There are at least two parties. 2. Each party has something that might be of value to the other party. 3. Each party is capable of communication and delivery. 4. Each party is free to accept or reject the exchange offer. 5. Each party believes it is appropriate or desirable to deal with the other party.

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Whether exchange actually takes place depends on whether the two parties can agree on terms that will leave them both better off (or at least not worse off) than before. Exchange is a value-creating process because it normally leaves both parties better off. Two parties are engaged in exchange if they are negotiating-trying to arrive at mutually agreeable terms. When an agreement is reached, we say that a transaction takes place. A transaction is a trade of values between two or more parties: A gives X to B and receives Y in return. Smith sells Jones a television set and Jones pays Rs.20,000 to Smith. This is a classic monetary transaction but transactions do not require money as one of the traded values. A transaction involves several dimensions: at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement. A legal system supports and enforces compliance on the part of the transactions without a law of contracts, people would approach transactions with some distrust, and everyone would lose.

MARKETING CHANNELS: To reach a target market, the marketer uses three kinds of marketing channels. Communication channels deliver and receive messages from target buyers, and include newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs, audiotapes, and the Internet. Beyond these, communications are conveyed by facial expressions and clothing, the look of retail stores, and many other media. Marketers are increasingly adding dialogue
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channels (e-mail and toll-free numbers) to counterbalance the more normal monologue channels (such as ads). The marketer uses distribution channels to display, sell, or deliver the physical product or services to the buyer or user. They include distributors, wholesalers, retailers, and agents. The marketer also uses service channels to carry out transactions with potential buyers. Service channels include warehouses, transportation companies, banks, and insurance companies that facilitate transactions. Marketers clearly face a design problem in choosing the best mix of communication, distribution, and service channels for their offerings. Whereas marketing channels connect the marketer to the target users, the supply chain describes a longer channel stretching from raw materials to components to final products that are carried to final buyers the supply chain for women's purses starts with hides, and moves through tanning operations, cutting operations, manufacturing, and the marketing channels bringing products to customers. The supply chain represents a value delivery system. COMPETITION: Competition includes all the actual and potential rival offerings and substitutes that a buyer might consider. Suppose an automobile company is planning to buy steel for its cars. There are several possible levels of competitors. The car manufacturer can buy steel from U.S. Steel or other integrated steel mills in the United States (e.g., from Bethlehem) or abroad (e.g., from Japan or Korea); or buy
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steel from a mini-mill such as Nucor at a cost savings; or buy aluminum for certain parts of the car to lighten the car's weight (e.g., from Alcoa); or buy engineered plastics for bumpers instead of steel (e.g., from GE Plastics). Clearly, U.S. Steel would be thinking too narrowly of competition if it thought only of other integrated steel companies. In fact, U.S. Steel is more likely to be hurt in the long run by substitute products than by its immediate steel company rivals. It must also consider whether to make substitute materials or stick only to those applications where steel offers superior performance. We can distinguish four levels of competitions based on degree of products unsuitably: Brand Competition: A company

sees its competitors as other

companies offering a similar product and services to the same consumers at similar prices.
Industry Competiton: A company sees its competitors as all

companies making the same product or class of product.


Form competiton: A company sees its competitors as all companies

manufacturing products that supply the same service.


Generic Competition: A company sees its competitors as all

companies that compete for the same consumers dollars. MARKETING ENVIRONMENT: Competition represents only one force in the environment in which the marketer operates. The marketing environment consists of the task environment and the broad environment. The task environment includes the immediate actors involved in producing, distributing, and promoting the offering. The main actors are the company, suppliers, distributors, dealers, and the target customers. Included in the
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supplier group are material suppliers and service suppliers such as marketing research agencies advertising agencies banking and insurance companies, transportation companies, and telecommunications companies. Included with distributors and dealers are agents, brokers, manufacturer representatives and others who facilitate finding and selling to customers. The broad environment consists of six components:
1. 2. 3. 4. 5. 6.
Economic Physical

environment environment environment environment

environment

Technological Political-legal Social-cultural Demographic

environment

These environments contain forces that can have a major impact on the actors in the task environment and make timely adjustment to their marketing strategies.

BRAND EQUITY AND ADVERTISING: A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate from those of competitors. Brand Equity: Brands vary in the amountof power and value they have in the market place. At one extreme are brands that are not known bymost buyers. Then there are brands for which buyer has a fairly high degree of brand awareness. Beyond this are brands with a high degree of brand
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acceptibility. Then there are brands that enjoys high degree of brand preference. Finally, there is brand that commands a high degree of brand loyalty. Says Aakar, My Acid test is whether a housewife intending to buy Heiny tomato ketchup a store, finding it to be out of stock will walk out of the store to buy it elsewhere . Few customers are as brand loyal. Aakar distinguish levels of customers attitude towards his/her brand, from lowest to highest.
1. Customer will change brands. Especially for price reasoned. No brand

loyalty.
2. Customer is satisfied. No reason to change the brand.

3. Customers value the brand and see it as friend.


4. Customer is devoted to the brand.

Brand equity is highly related to how many customers are in classes, (3/4/5). It is also related according to Aakar, to the degree of Brand name reconviction, perceived brand quality, strong mental and emotional associations, and other assets such as patents, trademarks and channel relationships. Certain companies based their growth on acquiring and building rich brand portfolios. Grand metropolitian acquired various Pillsbury brands, Green giant vegetables, Hagen Dazes ic-cream and burger king, Nestle acquired row tree. Five times its book value. Companies do not normally list brand equity on their balance sheets because of the arbitrariness of the estimate. But clearly, brand equity relates to the price premium the Brains commands times the extra volume it movesover and average brand. Advertising: Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Advertisers include not only business firm but also museums, charitable organisations and got agencies that direct message to the target public. Organisation handles these advertising in different ways. In small
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companies, someone handles advertising in the sales or the marketing department, who works with an advertising agency. A large company will have then set up its own advertising department, whose manager reports to the Vice-president of marketing. The advertising department job is to purpose ads and campaigns and handle direct mail advertising, dealer displays and other forms of advertising. Most companies use an outside agency to help create advertising campaigns and to select and purchase media. In developing a programme, marketing managers must always start by identifying the target markets and buyers motives. Then they can make the five major decisions in developing an advertising programnme. Known as the five Ms:Mission: What are the advertising objectives? Money: Howmuch can be spent? Message: What messages should be spent? Media: What media should be used? Measurement: How should the results be evaluated? MARKETING MIX( 4 Ps OF MARKETING): The marketing mix principles are used by business as tools to assist them in pursuing their objectives. The marketing mix principles are controllable variables, which have to be carefully managed and must meet the needs of the defined target group. The marketing mix is apart of the organisations planning process and consists of analysing the defined: * How will you design, package and add value to the product? * What pricing strategy is appropiate to use? * Where will the firm locate? * How will the firm promote its product?
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1) Product - A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. 2) Price The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customers perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. 3)Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. This term includes channels of distribution, transportation, warehousing and inventory control. Without this, there is no use of producing goods and services.

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4)Promotion -represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations. DISTRIBUTION CHANNELS: Distribution is all about getting your product/service to the right people at the right time with special consideration for profit and effectiveness. Successful marketing does not end when a business has developed a product/service and has found its appropriate target audience with a view to Marketing & Sales - Pricing Strategies. The next issue that needs to be faced is how they are going to distribute and sell this product/service to these people- the consumers. When a product/service is purchased by a consumer, it may have been bought directly from the business, or it may have been through
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a number of intermediaries (wholesaler, retailer, etc): these are known as distribution channels. Small businesses need to acknowledge the different types of distribution channels to utilize sales potential. After reading the article, you may learn that you could increase sales or profit by using a different distribution channel to the one that you currently use. Distribution channels are influenced largely by the type and size of the business and so some of the channels explained may not be feasible for your particular business. Consequently, you may take note that these channels could be adopted in the future to accommodate for any changes and to help your business grow. Very common for small businesses, products/services can be sold directly to the consumer on-site i.e. directly from your shop, office or home by consumers physically coming into the premises to make a purchase. This can be related with, for example, a village baker or a hand made furniture business where the products are made and sold at the same place.

This type of distribution works only when your target consumers are within the local region and are not based on a wide geographical area.

Also known as a Compiling a Mail Shot or Mailshot, this type of marketing can produce sales on a local, national, or even global,
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scale. Your business would send out, say, flyers, leaflets, brochures or catalogues (often targeted to particular consumers) selling your product/service. Any interested receivers of the mail would make an order through the contact details/order form that would be included.

Although very effective, there is some cost involved but is considerably cheaper compared to other sources of marketing such as advertising. Poorly targeted mail shots can also damage the image of your business, so be sure that you obtain/build appropriate mailing lists before you adopt the idea.

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OBJECTIVES OF MARKETING: Though profit is the major aim, marketing has certain other objectives to be achieved. These are: 1. Intelligent and effective application of modern marketing policies. 2. 3.
4.

To develop the market field. To develop and implement policies for better results.

To suggest solutions by studying the problems relating to marketing.

5.

To find sources for the further information concerning market problems.

6.

To take appropriate and opportune action in the course of working.

SIGNIFICANCE OF MARKETING: The role of marketing cannot be overestimated. Role covers benefits and costs of market. The benefit of marketing is seen from two angles; I) Benefit to the society: 1. 2. 3. It is an instrument of lifting living standards. It provides gainful employment opportunities. It is the stabilizer of economic conditions.

I) Benefit to individual firms: 1. 2. It enables the firm to earn profits. It acts as a basis for marketing decisions
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3.

It acts as a source and channel of new ideas.

I) Benefit to the Customers: 1. To create awareness for the products.

2. Better and quality products are the results of marketing. 3. A lot of variety to choose. 4. After sales service is available. II)Benefit to Organisation:
1. To know the changes in behaviour by continuous market

research, market survey. 2. To know the technological changes. 3. To make distribution with ease.

FUNCTIONS OF MARKETING: The functions of marketing are basically divided into three categories. They are: A) Functions of exchange: 1. Buying 2. Selling
B)

Functions of physical supply: 1. Transportation


2.

Storage

C)

Facilitation function: 1. Financing 2. Risk Bearing


3.

Market Information

4. Standardization.
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MARKETING PROCESS: There are three important processes in Marketing: 1. Concentration: Concentration is the collection of goods at a point to facilitate distribution of goods. The reasons for concentration are: a) Small lot production b) Assembling of parts c) To ensure continuous and ready supply. 2. Dispersion: Dispersion is the distribution of goods which are concentrated. The reasons for dispersion are: a) Scattered Buyers. b) Production for consumption 3. Equalization: Equalization process adjusts the supply to demand. The reasons for equalization are: a) b) c) Seasonal Production against continuous consumption. Continuous Production against seasonal consumptions Quality Needs Differ.

BUYING BEHAVIOUR: To understand marketing, one must understand buyer behaviour, for marketing success or failure dependson target consumers individual and group reactions expressed in the form of buying patterns. Therefore, in order to undertake the marketing programme among different segments the Marketing Management must find out as to:
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Who influences the buying decision? Who makes the buying decision? Who makes the actual purchase? Who ultimately uses the product? It may be stated that in the process of buying different individulas may be involved or only one member may be all the four tasks or the user of the product may be influencer, decider and the purchaser. Buyer behaviour is a process, which through inputs (Buying power, intra and inter-personal influences marketing effort and environmental factors) and their use through process( perfection of wants, search, purchase decision, product use and evaluation) and actions leads to satisfaction of needs and wants. ACCORDING TO WEBSTAR: Buyer behaviour is all psychological, social and physical behaviour of potential customer as they become aware of evaluate, purchase, consume and tell other about the products and services.

WHO IS A CONSUMER? Consumer is often used to describe two different kinds of consuming elites. a) The personal consumer b) The organisational consumer The personal consumer buys goods and services for his own use(eg. shaving cream),for the use of the house hold (groceries) for just one member of the house hold(a shirt) or a gift for a friend(book). In all these contents the goods are brought for final use by individual who are as ultimate consumer.
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The second category of consumer the organisation consumer encompasses profit and non-profit business, government agencies( local, stall,national) and institutions(schools, churches and prisons) all of which must buy products, equipments and services in order to run the organisation. WHAT IS CONSUMER BEHAVIOUR? The term consumer behaviour refers to the behaviour that consumer displays in searching for purchasing, using, evaluating and displaying of products and services that they expect will satisfy their needs. The study of consumer behaviour is the study of how an individual will make decision to spend their available resources(time,money and effort) as consumption related item. It includes the study of what they buy, how often they buy it and how often they use it. Consumer behaviour is the physical activities undertaken by household and business customers that result in decisions and actions to pay forpurchase and use product and services. WHY STUDY CONSUMER BEHAVIOUR? As marketers and future marketers, it is important for us to recognise why and how individuals make their consumption decisions so that we can make better strategic marketing decisions. If marketers understand consumer behaviour they are able to predict how consumers are likely to react to various informational and environmental cues and able to shape their marketing strategies accordingly and can have a great competitive advantage in the market place. The marketers also wanted to know how people receive, store and use consumption decisions (positive approach). CONSUMER BEHAVIOUR BUYING ROLES: We can distinguish five roles people might play in a buying decision.
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I)

Initiator: The person who suggest the idea of buying the product or services.

II)

Influencer: A personwhoseviews or advises, influences the buying decisions. Decider: A person who ultimately makes a buying decision. (Whether to buy, how to buy or where to buy?) Buyer: A person who makes the actual purchase. User: A person who actually is a consumer or user of a product or service.

III)

IV) V)

TYPES OF CONSUMER BUYING BEHAVIOUR: Assail distinguished four types of consumer buying behaviour, based on the degree of buyer involvement and the degree of differences among brands.

Complex Consumer Behaviour:

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This process involves a 3 step process; First, the buyer develops beliefs about the product. Second, the consumer develops attitudes about the product. Third, the consumer makes thoughtful choices. Consumers engage in complex buying behaviour when they are highly involved in a purchase and aware of significant differences among brands. This is usually the case whenthe product is expensive, brought in frequently, risky and highly self expensive. Dissonance: Reducing buyer behaviour sometimes the consumeris highly involved in a purchased but sees little differences in brands. The high involvements are based on the fact that the purchase is expensive, infrequent and risky. In this case, the buyer will shop around to learn what is available but fairly, quickly, perhaps responding a good price or to purchase conveniences. After the purchase, the consumer might experience dissonance that status from noticing certain disquieting features or hearings favourable things about other brands. Habitual Buying Behaviour: Consumer has little involvement in this product category. If the consumer keeps reaching for the same brand, it is out of habit not strong brand loyalty. With low cost products, consumers behaviour does not search extensively of information evaluates characteristics and makes a decision on which brand to buy. Instead, they are passive receipts of information in television or print ads. Ad repetition creates brand familiarity rather than brand conviction. Variety seeking Buying behaviour: Some buying situations are characterised by low involvement but significant brand differences. Here, consumers often do a lot of brand
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switching. The consumer array reaches for another brand out of a wish for a different taste. Brand switching occurs for the sake of variety rather than dissatisfaction.

CONSUMER ADOPTION PROCESS: The adoption process is the mental and behavioral procedure an individual consumer goes through when learning about and purchasing a new product.

The consists stages:

process of these

1. Knowledge: A person learns of a product's existence and gains some understanding of how it functions. 2. Persuasion: A person forms a favorable or unfavorable attitude about a product.
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3. Decision: A person engages in actions that lead to a choice to adopt or reject a product. 4. Implementation: A person uses a product. 5. Confirmation: A person seeks reinforcement and may reverse a decision if exposed to conflicting messages. The rate (speed) of adoption depends on consumer traits, the product, and the firm's marketing effort. Adoption will be faster if consumers have high discretionary income and are willing to try new offerings; the product presents little physical, social, or financial risk; the product has an advantage over other items already on the market; the product is a modification of an existing idea and not a major innovation; the product is compatible with current consumer life-styles; the attributes of the product can be easily communicated; the importance of the product is low; the product can be tried in small quantities; mass advertising and distribution are used; the product is consumed quickly; or the product is easy to use. CHARACTERISTICS OF CONSUMER BEHAVIOUR: Consumer behaviour is a field of psychology that studies the way individuals spend money. Consumer behaviour is an important consideration in fields such as economics and marketing, since understanding how consumers make their decisions can help predict how consumers will react to different situations. Consumer behavior often exhibits several common characteristics. 1. Information Search: The search for information is a common characteristic of consumer behaviour. Consumers cannot purchase goods and services if they are unaware that a good or service exists.
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Brand Loyalty: Brand loyalty is another characteristic of consumer behavior. Brand loyalty is the tendency of a consumer to buy products or services from a certain company that she likes or equates with having high quality goods and services.

3.

Price Elasticity of Demand:

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MODEL OF CONSUMER BEHAVIOUR:

BUYING DECISION PROCESS:


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Research has shown that when making a decision to buy a product from many competing products, a consumer unknowingly passes through a few stages of the decision process. There are five stages of the decision process which consumer or prospective customer undergoes and each stage motivates the buyer to purchase.

Problem Recognition: The buying process

starts with problem recognition the buyer recognizes a problem or need. The buyer senses a difference between his or her actual state and some desired state. Consumers recognize a problem based on physical cues, stimulus response or a need. For example, a customer could smell fresh bread and realize she is hungry or she could have a broken pair of glasses and know she needs a new pair. Visual clues trigger problem recognition. For example, a beverage in a clear container shows when it is getting low, or a sticker in a car window reminds customers when it is time for an oil change. Information Search:
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The stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search. Customers in the information search stage of the buying process look for solutions to their problems or needs. They remember what types of purchases solved a similar problem in the past. Customers also discuss their needs with friends and relatives to see what solutions they may suggest. For more expensive purchases, customers may read reviews, look through newspapers or research the product online. Alternative Evaluation: The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set. The consumer having sufficiently been motivated to satisfy a need searches for information about every product brand that can perfectly match the need.Consumers evaluate their purchase options based on product attributes, such as technical specifications, through subjective factors, such as brands, and through personal experience, such as sampling or testing products. Consumer and company reviews can influence a consumer's product evaluation.

Purchase Decision: The stage of the buyer decision process in which the consumer actually buys the product. A consumer's decision to purchase something includes where to buy, when to buy and whether to buy. For routine goods such as groceries, consumers may simply go to their favorite grocery store, but for electronic purchases, they may browse multiple stores. They will evaluate each merchant based on
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prior experience with the store, special offers and whether they can return the product easily. A store that's visually appealing, has helpful sales associates and offers specials and discounts influences a buyer. Post-Purchase Behavior: The stage of the buyer decision process in which consumers take further action after purchase based on their satisfaction or dissatisfaction.After making a purchase, a consumer mentally ranks her purchase satisfaction. She will evaluate if she liked the store, if she enjoys the product and the quality of the product. This evaluation determines whether the customer will purchase the product or brand again and whether it would be from the same store. Customers who are happy with their purchases and feel they received a quality product at a good price, will become repeat customers and will tell others about their experience.

FACTORS INFLUENCING CONSUMER BEHAVIOUR:

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Consumer behavior refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are different processes involved in the consumer behavior. Initially the consumer tries to find what commodities he would like to consume, then he selects only those commodities that promise greater utility. After selecting the commodities, the consumer makes an estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision about the commodities he should consume. Meanwhile, there are various other factors influencing the purchases of consumer such as social, cultural, personal and psychological. The explanation of these factors is given below. 1. CULTURAL FACTORS: Consumer behavior is deeply influenced by cultural factors such as: Buyer culture, subculture, and social class.

Culture: Basically, culture is the part of every society and is the important cause of person wants and behavior. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries. Subculture: Each culture contains different subcultures such as religions,

nationalities, geographic regions, racial groups etc. Marketers can use these groups by segmenting the market into various small portions. For example marketers can design products according to the needs of a particular geographic group. Social Class:

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Every society possesses some form of social class which is important to the marketers because the buying behavior of people in a given social class is similar. In this way marketing activities could be tailored according to different social classes. Here we should note that social class is not only determined by income but there are various other factors as well such as: wealth, education, occupation etc. 2. SOCIAL FACTORS: Social factors also impact the buying behavior of consumers. The important social factors are: reference groups, family, role and status. Reference Groups Reference groups have potential in forming a person attitude or behavior. The impact of reference groups varies across products and brands. For example if the product is visible such as dress, shoes, car etc then the influence of reference groups will be high. Reference groups also include opinion leader (a person who influences other because of his special skill, knowledge or other characteristics). Family Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying to find the roles and influence of the husband, wife and children. If the buying decision of a particular product is influenced by wife then the marketers will try to target the women in their advertisement. Here we should note that buying roles change with change in consumer lifestyles. Roles and Status Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. For example a woman is working in an organization as finance manager. Now she is playing two roles, one of finance manager and other of mother. Therefore her buying decisions will be influenced by her role and status.
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3. PERSONAL FACTORS: Personal factors can also affect the consumer behavior. Some of the important personal factors that influence the buying behavior are: lifestyle, economic situation, occupation, age, personality and self concept. Age Age and life-cycle have potential impact on the consumer buying behavior. It is obvious that the consumers change the purchase of goods and services with the passage of time. Family life-cycle consists of different stages such young singles, married couples, unmarried couples etc which help marketers to develop appropriate products for each stage. Occupation The occupation of a person has significant impact on his buying behavior. For example a marketing manager of an organization will try to purchase business suits, whereas a low level worker in the same organization will purchase rugged work clothes. Economic Situation Consumer economic situation has great influence on his buying behavior. If the income and savings of a customer is high then he will purchase more expensive products. On the other hand, a person with low income and savings will purchase inexpensive products. Lifestyle Lifestyle of customers is another import factor affecting the consumer buying behavior. Lifestyle refers to the way a person lives in a society and is expressed by the things in his/her surroundings. It is determined by customer interests, opinions, activities etc and shapes his whole pattern of acting and interacting in the world. Personality

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Personality changes from person to person, time to time and place to place. Therefore it can greatly influence the buying behavior of customers. Actually, Personality is not what one wears; rather it is the totality of behavior of a man in different circumstances. It has different characteristics such as: dominance, aggressiveness, self-confidence etc which can be useful to determine the consumer behavior for particular product or service.

4. PSYCHOLOGICAL FACTORS: There are four important psychological factors affecting the consumer buying behavior. These are: perception, motivation, learning, beliefs and attitudes. Motivation The level of motivation also affects the buying behavior of customers. Every person has different needs such as physiological needs, biological needs, social needs etc. The nature of the needs is that, some of them are most pressing while others are least pressing. Therefore a need becomes a motive when it is more pressing to direct the person to seek satisfaction. Perception Selecting, organizing and interpreting information in a way to produce a meaningful experience of the world is called perception. There are three different perceptual processes which are selective attention, selective distortion and selective retention. In case of selective attention, marketers try to attract the customer attention. Whereas, in case of selective distortion, customers try to interpret the information in a way that will support what the customers already believe. Similarly, in case of selective retention, marketers try to retain information that supports their beliefs. Beliefs and Attitudes

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Customer possesses specific belief and attitude towards various products. Since such beliefs and attitudes make up brand image and affect consumer buying behavior therefore marketers are interested in them. Marketers can change the beliefs and attitudes of customers by launching special campaigns in this regard.

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THE HISTORY OF SILK INDUSTRY: Silk was discovered during 2640 B.C. in China. Chinese studied the silkworm and learned the art of unwinding the silk from cocoon and made silk fabrics from it, this was the beginning of silk industry in China. Silk - the queen of all fabrics is historically one of India's most important industries. India produces a variety of silks called Mulberry, Tasar, Muga and Eri, based on the feeding habit of the cocoons.

Though India is the largest producer of silk in the world after China, it accounts for just 5% of global market, since the bulk of Indian silk cloth are consumed domestically. Germany is the largest consumer of Indian silk. The sericulture industry today employs over 700,000 farm families and is mostly concentrated in Karnataka, Tamilnadu and Andhra Pradesh and to some extent Assam and West Bengal. Karnataka accounts for more than 70 percent of the country's total silk production. Sericulture is one industry which is beneficial to the agriculturists. As in today 56 lakhs people are dependent on the sericulture industry, 5.6 million people out of which 4.7 million are agriculturists. The rest are reelers, weavers etc.

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India is the second largest producer of silk, contributing to about 18 per cent to the world production. What is however, more noteworthy is the fact that India's requirement of raw silk is much higher than its current production at present. Thus, there is considerable scope for stepping up production of raw silk in the country, overcome the persistent conflict of interest between exporters of silk products and producers of raw silk. While sericulturists want imports of raw silk to be restricted to have better market for their produce, exporters want imports of cheaper raw silk so as to be able to export more silk products at competitive rates. India has all the four varieties of silk namely, mulberry, tassar, eri and muga. It is however, disheartening to note that we have not yet been able to fully exploit this advantage and make our presence felt on the international scene more prominently than at present. For this, one has to clearly understand the strengths and weaknesses of different segments of this sector. The strength of this industry lies in its wide base, the sustaining market demand pull especially from the Indian handloom weaving sector, the infrastructure created by the national sericulture project and the research and training capabilities. The golden yellow silk, Muga is quite unique to Assam, Manipur and neighbouring areas of Nagaland and Meghalaya. It has spread to West Bengal and Andhra Pradesh as well. While basic seed production is more or less organised, commercial seed production is to be organised systematically. The bulk of Indian silk thread and silk cloth is consumed domestically. The present market context for silk in the country is one of vigorously growing internal demand for silk fabrics, with
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growth rates of above 10 percent per year. Itis mostly for traditional( sari type) design and does not impose sophisticated quality requirement upon the industry. This situation is likely to continue, unless Indian Sericulture is able to provide sufficient quantities of raw silk at affordable prices. The present trends represent a limitation to price increase for silk produced in India by import from other silk producing countries like China, Brazil, Korea, etc..., as well as by substitution with other fibres including by expanding mulberry area in order to increase cocoon and raw silk production. Future additional output of raw silk will therefore mostly have to come from substantial productivity. With substantial government and international subsidies for silk projects and marketing schemes, the industry has been expanding rapidly over the last few years. Silk exports too are growing rapidly. Germany is the largest consumer of Indian silk. Concurrently, there is growing demand for silk fabric among the Indian middle class and young urban consumers. These modern silk fabrics typically produced by expanding power looms in weaving industry. The bulk of todays world export demand is almost exclusively based on high graded quality bivoltine raw silk. Today only China and India are the producers in silk. Thailand, Uzbekistan also produces silk but the quantity is very small. So we will have to keep this raw silk and fabrics for them to continue in the market. Only two countries can do it. India is the largest consumer of silk fabrics by way of sarees and so many other things. So we will have to improve our silk culture. Today the Indian silk industry is already a major player in the global scenario and the growth prospects for the industry seem to be
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bullish. Measures like the encouragement of further technological and economic research in the various aspects of sericulture, standardization and quality control of silk and silk products and rationalization of marketing and stabilization of prices of silk cocoons and raw silk it could expand rapidly than ever before. In one of the effort of the Indian Government to promote the sericulture industry, the National Sericulture Project (NSP) was initiated as a national project operational in 17 states in India. The project funded by the central and state government together with an input of foreign funds, has a credit portion from the World Bank and grant contribution from Swiss Development Corporation. The project was started in 1989 for a period of six years with the objectives of oriented towards increased production, improved productivity, quality and equity. One of the critical elements taken into consideration by the project was the dominant involvement of the central and state government organisation in the promotion of sericulture.

HISTORY OF SILK IN KARNATAKA STATE: Karnataka is the land of fascinating natural beauty and rich heritage and culture. The handicrafts of Karnataka reflect the skilful craftsmanship of the artisans of Karnataka. Karnataka is popular in the world for its colourful silks with their extraordinary finish and lustre.
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In Karnataka, as in other parts of India where silk is fancied, it is, in fact, a way of life. It has also become an inseparable part of the kannada culture and tradition. No ritual is complete without the participants wearing silk in some form or another. Karnataka has contributed as great deal to the progress of Indias silk industry. Karnatakas 200 years old silk industry owes its origin to Tipu Sultan who ruled Mysore with his capital at Srirangapatana. This silk weaving Mysore industry was set up by the Maharaja of Mysore in 1912. He wished to nurture this art of silk weaving in Mysore. Tipu showed a very personal interest in sericulture and sent his people to Bengal to obtain silk worms. He also established 21centres in his dominion to rear the silk worm thus, providing the required foundation for sericulture in the region. Sericulture received yet another boost during World War II, when parachute manufacturers needed large quantities of the fabric. As China, the largest producer was under Japanese occupation, the allies obtained silk from India especially from Mysore. Necessity compelled the British to encourage silk production not only in the Mysore state but also in the neighbouring region. Today, Karnataka alone is contributing 75 percent of mulberry silk to the nations production. Silk weaving in Mysore is a traditional occupation and is being carried on for generations. The object of desire for the Indian women, silk weaving is a major occupation of Mysore as well as Karnataka. The Mysore silk is generated by the silkworm cocoons of mulberry leaves. The silk weaving Mysore trade has flourished because of the

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lustre and beauty of these silk sarees, which in turn results in the worldwide popularity.

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INTRODUCTION OF KARNATAKA SILK INDUSTRIES CORPORATION LTD:

Karnataka Silk Industries Corporation Limited (KSIC) was established in the year 1980 with its Corporate Office at 3rd & 4th Floor, Public Utility Building, M.G.Road, Bangalore. The main business of KSIC is production and sale of world renowned Mysore silks. The Silk Weaving Factory (SWF) is situated at Mysore on the

Mysore-Mananthodi Road, about 2.5 Kms. away from City Railway Station. The Silk Filature is situated at T.Narasipura about 30 Kms from Mysore City. The present strength of employees in the Head Office is 91 and that of Silk Weaving Factory, Mysore, is 577 and Silk Filature, T.Narasipura is 169.Silk Yarn, the major raw material for manufacturing the fabrics is produced at the T.Narasipura Filature Unit. Part of the requirement is met from outside sources. The products are marketed through a network of company owned retail outlets/showrooms, Exhibition-cum-sales and Institutional Sales. The Corporate Office comprises Personnel, Marketing and Accounts Departments. By ensuring conformance to applicable standards and specifications and strict adherence to established procedures and practices, KSIC manufactures high quality fabrics.

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BRIEF HISTORY: The silk weaving factory in Mysore, presently owned by KSIC, was established in the year 1912 by the Maharaja of Mysore province. Initially the silk fabrics were manufactured & supplied to meet the requirements of the royal family and ornamental fabrics to their armed forces. The unit was started with 10 looms and gradually increased to 44 looms over a period. The looms and preparatory machines were imported from Switzerland and was the first of its kind in India. After India gained Independence the Mysore state Sericulture Dept. took control of the silk weaving factory. In 1980 the Silk weaving factory was handed over to Karnataka Silk Industries Corporation Ltd., a Govt. of Karnataka enterprise and is popularly known as KSIC. The takeover was enthused by effecting modernization & expansion assisted by the World Bank to the tune of Rs. 27.30 crores integrated under Karnataka sericulture project. KSIC is the only organization in the country mastering the entire gamut of silk production right from reeling of cocoon to weaving of pure silk fabric various shades and design under one roof. Mysore is rich for its Royal heritage and Grandeur and it is no surprise that the silk produced there reflect the traditional splendor through its rich yet delicate motives. The name Mysore Silk is a befitting tribute to its ancestry. KSIC the proud inheritor of his royal legacy, has treasured it for over seven decades, has been producing 100% pure silk with pure gold sari.
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GROWTH AND DEVELOPMENT: The Karnataka Silk Industries Corporation (KSIC) has been awarded the certificate of Geographical Indication for Mysore Silk, elevating it to a brand name for its exclusive use. Its now official. Mysore Silk belongs to Mysore District. After the restructuring of the corporation during the year 2004, KSIC has removed all its authorized dealers and its products through its own outlets only. Therefore, all Mysore Silk sarees sold by the KSIC with logo IPI (Intellectual Property of India). KSIC is also the first state Government enterprise to get a logo from the Geographical Indication Registry (GIR), a central Government body based in Chennai. GIR was formed to protect the Intellectual Property Rights for Indian goods under the Geographical Indication of Goods (Registration and Protection) Act, 1999. The GIR certificate is a sign used on goods that have a special geographical origin and possess qualities or reputation of their place of origin. VISION STATEMENT: To provide employment directly and in directly by producing goods and marketing effectively in the market. MISSION STATEMENT: Manufacturing and marketing of Mysore Silk Sarees.

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EXCLUSIVE STATUS: Manufacturers or traders can use the words Mysore Silk to
market their silk fabric without KSICs nod product must be made in Mysore District penal action for unauthorized use. Every Mysore silk saree will carry a logo- Intellectual Property India The two pillars of korean manufacturing sector are textile industries (KSIC Code 32) and machinery, equipment and electronics industries (KSIC Code 38). The output share of textile has decreased from 21.8% in 1970 to 13.7% in 1990 while that of machinery and equipment has increased from 12.2% to 34.1%.
BRIEF ON PRODUCT:

KSIC is the only organisation in the country commending the entire gamut of silk fabric of various shades and designs, all under one roof. KSIC uses only high quality pure natural silk and 100% pure gold zari. The zari never tarnish and will look fresh even over a long period of usage. KSIC is the only organisation to give guarantee for its zari saree in the form of embroidered code numbers, which is unique to each saree.

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OBJECTIVES OF KSIC: Implementation of World Bank sponsored Karnataka sericulture development projects. Translating the sericulture development projects to policies of Government of India and Government of Karnataka. Promotes growth and development of sericulture activities. Supports the small and tiny silk reeling units in the village. Offers reasonable prices to sericulture to uplift their economic condition. Shareholding pattern of KSIC: The Company has 3, 60,047 Shares valued at Rs.36, 00, 47,000/(Rupees thirty six corers and forty seven thousand only). All the shares are held by the Government of Karnataka. The procedure followed in the decision making process: The Board of Directors is the decision making body. The Managing Director implements the policies laid down by the Board with the assistance of General Manager, Silk Weaving Factory, Mysore; General Manager, Silk Filature, T.Narasipura; and the Head Office staff.

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ORGANISATIONAL STRUCTURE OF KSIC Head Office ( Bangalore )

Account GMAsst. Asst. FactoryT. GMFactory Manager Manager Internal Sales Asst. Dy. Audit Assistant Narasipura Manager Accounts Auditors officer Mysore Officer Sales F&A Internal Officer (sales) Audit

Chairman & Managing Director

Personal secretary

Dy. Manager Personnel

Assistant

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FACTORIES: KSIC has two modern factories engaged in manufacturing silk goods right from raw silk yarn to silk fabrics. The factories are located in T. Narasipura & Mysore both in the state of Karnataka, INDIA.
1. T Narasipura Silk Filature

Silk Filature refers to raw silk manufacturing unit. The unit manufactures raw silk yarn and transfer to meet the raw material requirement of silk weaving factory in Mysore. The factory is located in T. Narasipura, Mysore District in an area of approx.15 acres. The factory is headed by a General Manager. The factory supplies raw silk yarn to their own silk weaving Factory located in Mysore. Approximately 1000 Kgs. of cocoons are purchased daily from Govt. Controlled Market depending on needs and raw silk yarn known as filatures are produced. The purchase is done on almost daily basis as the purchased cocoon cannot be stored for more than 2 to 3 days.

Capacity: Installed Capacity: 225kgs /day Actual production: 120 Kgs/day The factory uses the best Technology per say in raw silk manufacturing. It follows the international silk association

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standards and has the following stringent parameters for testing using standard Machineries.

a) Renditta This refers to amount of Kgs of cocoons required to produce 1Kg of raw Silk yarn.

b) Type of Cocoon Multivoltaine Cocoon : 8 to 8.5 Renditta Bi-Voltaine Cocoon : 6.5 to 7 Renditta

Grade of Raw Silk Yarn Grade A, Grade 2A, Grade 3A, Grade 4A, and Grade 5A.

International Silk association Standards to test the following

- Denier - weight in grams/Mtr - Tenacity - Elongation - Cleanness


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- Neatness

The silk filature plant uses modern Japanese & Korean Machineries having denier control to produce quality silk yarn. The Unit uses two types of reeling i) Automatic Japanese Machinery ii) Semi-Automatic Korean Machinery The Cocoon purchased form Govt. controlled Market undergoes various stages of production viz; Sorting, boiling, brushing & reeling. Silk yarn is passed through. Buttons and pulley (Croiser) to maintain tenacity and elongation and wound on a reel. Re-reeling is done to make the silk yarn into a continuous length and convert it into hanks. Reeled yarn is passed through. Yarn guide and made into big reel. The approximate weight of yank is 100 to 120 grams. To maintain quality the silk yarn undergoes various processes like silk skinning to remove gum spots manually.

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ORGANIZATIONAL STRUCTURE OF T. NARASIPURA FACTORY:

Asst. Stores Personal General cum Purchase Secretary Manager Officer Factory T. Narasipura

Personnel Officer

Asst Accounts Officer

Silk store keeper

Special Officer

Cocoon store keeper

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2. Mysore - silk weaving and printing silk products The Factory is located in the heart of the Mysore city and is spread over acres. The raw silk yarn Filatures obtained from T Narasipura factory and open Market are put thro. Various process and Quality silk products are produced for end user consumption. The factory has an installed capacity of 8, 00,000 Mtrs per annum. The factory is provided with various high end equipments so as to produce best of silk. The factory started with 10 looms in 1930 under the rulers of erstwhile Mysore Kingdom today boasts of more than 159 looms, two Warping machines & Pirn Machines and any number of Preparatory Machines. Most of the machines are imported from Switzerland and Japan. KSIC silk product are well appreciated in the market due to its 100% pure silk blended with 100% pure gold Zari ( 65% of silver & 0.65% of Gold ).The sarees manufactured are of unmatched quality come in varieties to suit the customer tastes viz: Crepe-de-chine, Georgette, Zari printed crepe silk sarees, semi crepe sarees. The sarees are printed or dyed. The sarees come in a splash of over 100 different colors and any no. of design combinations.
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Some of the design combination: * Embroidery Design saree * Big Butta Pallu Zari * Rich Pallu Sari Sareee * Small Mango Saree * Zari Printed Saree * Saree Tissue Saree * Traditional Zari Saree Sunrise Design saree * Double Line Checks Saree * Checked Zari Saree Based on the taste of the end consumers the sarees are printed and dyed with suitable eye catching colors. Various approved quantity of approved chemicals are added at various stages as per silk manufacturing standards to retain the luster and quality of the silk fabric. At 75 gms per meter, the KSIC silk sarees have an unmatched drape. These crepes have delicate strands of zari interwoven in spectacular designs, in the borders and the pallu. The printed crepes are tributes to designing and come with a double advantage of
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possessing the crepe's softness and a vibrant range of designs from floral to geometric. To protect esteemed customers from imitation of KSIC silks, KSIC have given a special embroidered number for each one of the sarees with a unique number and hologram. Other products of silk include soft silks, hankies, Neck Ties, Stoles, Cravats, dupion fabrics etc.

Organizational Structure of Silk Weaving Factory-Mysore:

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CONSUMER BEHAVIOUR Assistants Weaving Dying Asst. Purchase Dy. Manager Personal General & Assistants Manager Production Master stores secretary Accounts Casting Officer (Factory Mysore)

Personnel Officer

Maintenance Engg Mech/


Electrical

Printing Master

Labour Welfare Officer

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DEPARTMENT PROFILE
1. PERSONNEL DEPARTMENT: Personnel department in KSIC Ltd. is a very important and clearly defined department. The department performs the personnel and administrative functions. It has a direct link with the employees and understands their needs and wants. The personnel officer is in charge of his department and under him junior superintendent. Junior assistant. Steno receptionist. Driver, peon etc.

Functions of Personnel Department: Recruitment and selection training Provide sound program of salary and wage administration Allowance for the employees Provide and maintain safety measures Keep employment records

Handle labour problems and employee disputes

Duties of Personnel Officer:


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To arrange for appointment of personnel. To arrange recruitment as identified. To comply with all statutory rules relating to personnel and administrative matter. To provide job security, job enrichment and job enlargements. To provide sound promotion policy providing simple scope for self advancement. To ensure statutory compliance of E.S.I, P.F. etc. To collect, analyze, and present the required data for such discussion or negotiation between the board of director and the implementation of security measures. To

provide

guidelines

to

the

security

officer

for

the

implementation of security measures. To attend labour courts and conciliations by the labour and other departments. To prepare and maintain (update) gradation/ seniority list of all the employees of the company.

Recruitment: The methods by which the company recruits labour are: 1.Direct recruitment 2.Public Service Commission(P.S.C) 3.Employment exchange

All employees of the individual corporations and companies excluding workers are defined in the factories act and excluding persons employed in the supervisory or managerial capacity whose
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basic wages (starting) excluding DA and other allowances exceeds Rs. 700 are to be recruited through P.S.C.Clerical posts such as steno-typist, typist, junior assistants, driver, receptionist-cumtelephone operator, maintenance assistants etc. are filled up by under P.S.C recruitments. Managerial supervisory and workers vacancies are filled up by direct recruitment. The advertisement is published in the newspapers to fill up the vacancies. The board of directors will nominate a selection council to interview and select the direct recruitment employees.

Remuneration to employees: The monitory reward paid by the management to worker or an employee for the performance of the assigned task is called wages or salary. Salary is the remuneration paid to non-operative staff. Salaries are paid on a monthly basis to office staff, manager and technical advisors etc. wages is the remuneration paid to the workers involved in production. Work and whos output can be directly measured. Some employees are working on daily wages.

Welfare Measures: Employees will get PF, ESI, minimum bonus and gratuity benefits.

Bonus for Employees:

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The word bonus denotes an incentive payment to the workers aimed at enhancing their efficiency and loyalty to their organization. Promotion takes place when an employee moves to a higher than one formerly occupied. His responsibility, status and pay also increases. The promotions method adopted here is Seniority basis.

Organization setup of Personnel management:


Security Time office Telephone Vehicle

Security Office: Security officer is the head of the security office and under him other security guards. Duties of Security guard: To issue gate pass Safe guarding factory premises

Time Office:
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Under this section, there is a timekeeper and a clerk. Their duty is to see that the employee reports in time. Working Time: Office staff Factory workers 10.00-5.30 8.30-5.00

Vehicles: The security guards are in charge of incoming and outgoing vehicles. A separate sheet us set-up [for keeping the vehicles.

Telephone: The telephone operator is in charge of all the incoming and outgoing calls during office time. Security officer in the gate operates the calls, which are coming after office hours.

Department Chart:

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Personnel Officer

Junior Superintend

Junior Assistant

Steno Receptionist Driver Peon

Span of control: The personnel officer is in charge of this department and under him junior superintend. Junior assistant, steno, receptionist, driver, peon etc.

2. PRODUCTION DEPARTMENT:
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The production department is largely connected with manufacturing and its allied areas, such as determination of quality and quantity to be produced, production planning, work analysis, quality control etc. production department also deals with clerical work relating to various activities of a production of finished products. Material requisition, stock record etc. production department is headed by production manager, plant engineer, charge man. Maintenance assistant and various supervisors. Production: Production is concentrated in the existing two plants namely 1. Silk weaving & printing plant 2. Silk filature plant Quality control: The company has been set up a quality control section for the purpose of quality control and research and development. The company has a continuous research and development programmes a result of which, they can identify new product lines the quantity control ensures the consistent quality products. Objectives of quality control: 1. Continue improvement in operations 2. Improvement in export turnover

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FUNCTIONS OF QUALITY CONTROL: Quality inspection: Quality of silk and fabrics are checked during various stages of production such as dyeing, weaving, stenciling etc if the quality of the product is beyond the standards prescribed then it is rejected.

Product development This function includes the development of original products, modifications etc. these functions are done in accordance with the taste and preference of customers.

Designing Designing of silk product are done by both designers of international reputes and national reputes. They create new concepts and trends in the area of weaving colour combinations.

Span of control Production department is headed by production manager. Under him stores officer, plant manager, plant engineer, dye master, various supervisors and workers etc.

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3. FINANCE DEPARTMENT: Financial management is responsible for estimation of financial resources. Finance is lifeblood of every business. Therefore it is most important and complicated for business. Finance department in KSIC LTD is needed by finance manager and under him accountant junior superintend and cashier.

Functions of Finance Department: 1. Finalization of accounts 2. Preparation of wage sheets 3. Maintain cost records 4. Budget making and set target to be achieved. 5. Set out the financial requirements, loans, income expenditure etc.

Duties of Finance Manager: 1. Keep the books of accounts of the company up-to-date. 2. To inspect the accounts of the company 3. To monitor all the financial transactions of the company.

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Registers and Books of Accounts: The managers should keep proper of accounts, registers and other documents. He should maintain proper and accurate records of accounts of working of the company. Copies of the balance sheet shall supply free on demand of any members.

The books generally kept in finance department are Cash book General ledger Bank book Sales journal Purchase journal Journal register Creditors ledger Debtors ledger Impress ledger

4. PURCHASE AND SALES DEPARTMENT: In ordinary sense the term purchasing is the procurement of materialism, machinery and tools on payment. But today purchasing has acquired new dimensions and such as it may be defined as the functions of procurement with a view to reduce the investment, variety and value of materials so as to facilitate the standardization and competitive marketability of the product.

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Functions of Purchase Department: 1. To maintain regular flow of materials 2. To purchase at a competitive price, the right quality from a right source 3. To ensure production of better quality of products at competitive costs Method of Purchasing: KSIC adopt centralized purchasing. It includes purchase of raw materials, stores, land and equipment, fund, stationary, supplies, chemicals etc. all bulk purchases are petty purchases are made through this department except maintenance purchase. Maintenance purchases are made by administration section. Procedure in the Purchase Department: 1. Receiving purchase requisition: The stores office as and when purchase requisition or intends are received from the concerned department. It should before two or three weeks. 2. Exploring the source of supply: The selection of right source of supply is very important from the point of view of getting the materials in the time and desired quality at a price. The different categories of suppliers are found out through advertisement, tender etc. the quotations are compared with others and from this the best is selected. The chemicals are purchased by yearly quotations. In KSIC, two types of suppliers are found. 3. Manufacturing. 4. Distributors or Commission Agents.

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ROLE OF KSIC: India presently ranked as the second largest producer of mulberry silk next to china. The Government of India has given special emphasis to the overall development of sericulture. As KSIC is a highly labour intensive rural bases cottage industry providing extensive employment to rural population. Sericulture begin an Agro-based industry is playing a vital role in bringing transformation in the economic conditions of the vulnerable section of our society. KSIC is translating the policy cherished by the union and state Governments by supporting the sericulture development activity and the silk industry from the post cocoons to fabric by providing large-scale employment to 3 million Seri culturists under the integrated rural development scheme. In this context the specific role played by KSIC is highlighted below: KSIC is basically extended from sericulture development program in the country in general and the state in particular. Since KSIC was established under the financial assistance of World Bank under Karnataka sericulture in the state of Karnataka. So the activities cannot be termed as commercial business. KSIC basically provides for expanding the sericulture based village industry at village level.
The KSIC is playing an important role in uplifting the most

neglected small rural reelers at the small and tiny silk reeling units in the villages by procuring the silk waste at reasonable prices.
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The primary role of KSIC is to assist the Seri culturists by giving reasonable price for the cocoon weavers in order to uplift their economic conditions. KSIC is an integrated and inseparable part of sericulture development and provide employment to 30% of rural population directly or indirectly. Since its inception in the year 1932 in princely state of Mysore, has been producing the legendary and top class silk fabrics from home grown and spun genuine pure silk and pure gold saree. KSIC has been providing true value of money to the customer and genuine silk products by limiting the scope of private players flooding the market with dubious, imitated and artificial silk. KSIC sarees and fabrics are popular and cherished by the customers globally in the face of fierce and stiff ever-growing competition in the domestic and international market. Today, the brand name of KSIC Mysore Silk is a household name in domestic and international markets. FUNCTIONS OF KSIC:
1.

Extending better price to Seri-culturists

2. Standardizing of the price fluctuations of cocoons. 3. Providing genuine ad best quality silk fabrics with value for money. 4. Introduction of the world famous Mysore silk sarees to the global market.

SWOT ANALYSIS
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STRENGTH:
1.

Strong global brand name and equity KSIC Mysore Silk with Geographical indication registry. 2. 3. 4. Technically qualified professionals trained abroad. Wide customer base and excellent brand loyalty. Good margin even at reduced price levels.

5.

The companys revival plan is well accepted by the banks and financial institutions. 6. It is a ISO 9001 certification company

WEAKNESS: 1. Low turn over resulting in low profits. 2. Lack of advertisement in specifying the products information to the potential customers. 3. Update in time in terms of plant and machinery. 4. The numbers of outlets are less. OPPORTUNITIES: 1. Good export market-should tap foreign market vigorously. 2. At present has raw materials sources to enhance production. 3. Expansion in market by increasing the number of outlets.
4.

Due to globalization and economic policies great opportunities and competition in national and international level.

5. Leveraging technology to service customers quickly, efficiently

and conveniently. THREATS:


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1. Heavy competition by other players in the market. 2. The importing of silk from China. 3. Competition from private traders selling fake Mysore silk fabric. DISTRIBUTION NETWORKS: All product manufactured by silk weaving factory at Mysore are sold through a wide network of KSIC exclusive showrooms and consignment agents spread across the country.

COMPETITORS OF KSIC: Duplicate manufactures of Mysore silk do not use 100% or pure silk. They use 50% silk and 50% polyester so that they can sell the fabric at lower price than KSIC: 1. 2. 3. 4. 5. Kancheevaram Silk. Karishma Silk. Deeepam silk. Generic silk (unbranded). Beneras.

CUSTOMER GRIEVANCES: This mechanism is followed at KSIC showrooms. The customer complaints process involves duration of about one month. The personnel of the showroom are not empowered to take decision regarding the return of sarees by the customer. This makes them hesitant in promoting the product aggressively. KSICs EXCLUSIVE SHOWROOM:

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KSIC has a network of exclusive showrooms that display products produced by KSIC. Currently there are 15 showrooms all over India; among them four are in Bangalore.

CONSIGNMENT AGENTS: KSIC currently has 3 consignment agents namely Mysore international limited-MSIL situated in Mumbai and second at Bangalore and Kaveri Emporium at New Delhi and Mysore.

OTHERS: Sales are also affected through exhibitions, KSIC showrooms and directly both from Reshmalaya, situated in Bangalore and the finished material godown (FMG) at Mysore, especially for bulk purchases over the years. This has contributed on an average of9% of the gross sales of KSIC. It has policy of selling Sarees at their showrooms.

DISCOUNTS: KSIC has a policy of offering discount especially during festival seasons. It is during the period of discount sales are given. Generally KSIC offer discount in the range 5%- 15% and 45% for second sarees.

FUTURE PROSPECTS:
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The company has already entered into MOU with National institute of Fashion Technology (NIFT), Bangalore, for design development for KSIC. The NIFT will conceptualize binding the theme Tree of Life Kalpatharu for KSIC in the following category Womens wear Salwar Suits (Traditional and contemporary) Womens wear tops Printed Womens wear stoles-Printed. Womens wear sarees. Online shopping facility targeting primarily NRI customers for improvement in sales. The company is intending to carry out aggressive advertisements like exhibitions, print and electronic media.

List Of BOARD of Directors of KSIC:


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Sl. No. 1 Name Sri C.P.Yogeeshwar a Designation Chairman KSIC. Govt. of Karnataka. Tel. No. 25598441(O)

Sri. D.K Rangaswamy, IAS Sri Vipul Bansal,IAS

Managing Director, KSIC. Govt. of Karnataka.

25586399 (O)

---

Dy. Secretary to Govt. ( Budget and Resources) Finance Dept. Member Secretary, Central Silk Board. Govt. of Karnataka.

22258973 (O)

Smt. M. Sathiyavathy, IAS

26680190 (O)

Sri Paramesh Pandey, IAS

Managing Director, Karnataka Silk Marketing Board. Govt. of Karnataka. Commissioner for Textiles and Director for Handlooms & Textiles. Govt. of Karnataka. Commissioner for Sericulture Development and Director for Sericulture. Govt. of Karnataka. Secretary to Govt., Commerce & Industries Dept. Govt. of Karnataka.

22235168 (O)

Sri. D.A. Venkatesh, IFS

22271628 (O)

Dr. N.Nagambika Devi, IAS

22353933 (O)

Sri. B.S. Ramaprasad, IAS

22353933 (O)

Comparative Statement showing the fabrics sales from April 2009 to March 2010 .
Sl.No. Months April 2009 to March 2010 ( Rs. in Lakhs )

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Zari Printed Dress Materials Total Meters Gross Sales Discount Rs. Net Sales Rs.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

April May June July August September October November December January February March Total

2279 3499 2567 6322 5656 6030 10796 2130 4349 5758 5164 11293

176 298

390.05 13,892.55 21,342,988 468.95 21,352.45 35,917,068

3,186,715 8,361,700 6,162,805

18,156,273 27,555,368 20,572,593 47,065,868 44,250,535 43,404,503 79,442,236 18,188,492 40,758,741

171 1787.70 16,846.70 26,735,398 337 251 340 551 146 3716 2906 483

676,15 37,300.65 62,725,562 15,659,694 372.50 32,861.00 55,612,824 11,362,289 427.30 35,462.30 56,289,310 12,884,807 582.85 62,991.35 105,503,693 26,061,457 552.75 13,070.75 20,973,054 796.15 49,456.15 49,164,513 787.20 2,784,562 8,405,772

52,771.2 61,880,05 11,254,34 50,625,711 0 2 1 34,567.1 52,543,87 10,068,04 685.15 42,475,829 5 1 2 86,269,216

864 1132.35 74,074.35 112,644,999 26,375,783

65843 10284 8659.10 444,646.60 661,333,332 142,567,967 518,765,365

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Products Of KSIC a) Saree- Zari bordered printed silk embroidery saree b) Dupatta c) Silk Jacket d) Cushion Covers e) Silk Shirt f) Scarves g) Handkerchief h) Kurta Pyzama i) Dress Material j) Ties k) Blouse material l) Shawls

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RESEARCH DESIGN

The research design is considered to be the blueprint for action, which is made before the respective action to be undertaken. However it needs to flexible. Emory defines research as "An organized inquiry designed and carried out provide information for solving a problem" TITLE OF THE STUDY:

A Study on Consumer Behaviour with special reference to KSIC


(Mysore Silk) Ltd. STATEMENT OF THE PROBLEM: Every organization needs to know the needs and wants, taste and preferences of their customers for increasing its efficiency and effectiveness bitterly. KSIC (Mysore Silk) ensures this, in order to get good reputation. Hence, here I am conducting a survey on consumer behaviour in KSIC (Mysore Silk) with the topic of analyzing the attitudes, buying patterns and expectation of its customers collecting several information regarding the topic. OBJECTIVES OF THE STUDY: The study is primarily intended to know the Consumer Behaviour in the KSIC (Mysore Silk) Ltd. a) To know the factors influencing the Consumer behaviour.
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b) To identify behaviour of customers towards the products of the company. c) To help Company take necessary steps to increase their sales efficiency. d) To provide suggestions to the Company from the feedbacks for further improvement in their service. e) To find out the customer expect ion. f) To analyze the respondents attitude and expectation.

SCOPE OF THE STUDY: The survey on consumer behaviour towards the products of KSIC (Mysore Silk) intends to help the company understand the attitudes, satisfaction level, expectation and their understanding by its customers about the products. The findings from the survey will help the company to improve the product and the related services for the product and reach out to the expectations of the customers, with which the companys market share may increase fulfilling the exact needs and desire of its customers.

METHOD OF DATA COLLECTION: The task of collecting data begins after research problem has clearly been defined and meaningful research design is chalked out. The necessary data can be collected from two sources. They are primary and secondary sources. In this study, both sources contribute to the data. Primary Data:

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Primary data are those which are collected as fresh for the first time. In this study, the primary data were collected in the form of printed structured questionnaires consisting of 20 close ended and 1 open ended questions. It also constitutes data collected through personal visits and interview, with the important executives of the company and selected staff members. Secondary Data: The source of secondary data may be internal or external to the organization. The data collected from internal sources are companys information, product information etc. obtained from company brochures. The data collected from external sources are from internet, newspaper and magazines etc.

SAMPLING TECHNIQUES: For the purpose of the study, probability sampling technique is used and the sample is selected using random sampling method. Random sampling method was adopted as there was several units of customers and the sampling size was restricted to 50. SAMPLE SIZE: 50 Respondents (Customers of KSIC Ltd.) SAMPLE UNITS: Bangalore City.

PLAN OF ANALYSIS: The study collected is analyzed with the help of tables and interpreted with the help of charts and diagrams. Further, the
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findings of the study are drawn based on which the suggestions are provided.

LIMITATIONS OF THE STUDY:

With reference to the large size of the respondents category, some of them had to be selected of only 50 customers. The time variable of the study was a major constraint.

Since the study is conducted within Bangalore, the generalization of the findings will not be appropriate.

Also such findings may or may not be applicable to other products of the brand. Information collected only through the questionnaire. The information is collected completely on the response of the consumer.

CHAPTER SCHEME: Chapter 1: INTRODUCTION This chapter includes the topics related to Marketing and its processes and also about the Consumer and its Behaviour. Chapter 2: INDUSTRY PROFILE This chapter consists of the explanation about the Silk Industry and its history of existence. It tells about the entire profile of the industry. Chapter 3: COMPANY PROFILE

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This chapter consists of detailed explanation about Karnataka Industries Corporation Ltd., its introduction, functions, areas covered and present growth and future insight about the company. It briefs about the background of the companys establishment, facilities technology used in the company. Chapter 4: RESEARCH DESIGN This chapter consists of the statement of the problem, objectives, scope, data collection methods, plan of analysis, limitations of the study and chapter scheme. Chapter 5: ANALYSIS AND INTERPRETATION This chapter consists of the analysis of feedback from the customers of KSIC (Mysore Silk) with the help of tables and interpreted with the help of graphs. The no of respondents to each question is represented in percentages. Chapter 6: FINDINGS This chapter consists of the feedback briefing of the questionnaire. It gives the inferences of the analysed and interpreted datas of the project based on which suggestions are made by the customers. Chapter 7: SUGGESTIONS This chapter consists of valuable suggestions provided to KSIC (Mysore Silk) based on the findings. Chapter 8: CONCLUSION This chapter gives the conclusion of the Project entitled, A study of Consumer Behaviour with reference to KSIC (Mysore Silk) Ltd.

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ANNEXURE: It contains the questionnaire used for the project. BIBLIOGRAPHY: It provides the names of books, references and websites used for the Project.

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INTRODUCTION OF DATA ANALYSIS AND INTERPRETATION:

This section deals with the analysis and interpretation of the datas that has been collected from the respondents through questionnaire. The data has been tabulated, and explained. It is followed by a graph depicting statistical interpretation of the data collected. The total number of respondents is 50 and the number of queries is 20. All the queries have been answered. Some responses to the queries are dependent on the choices made by the respondents for previous questions.

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Table No. 1 Table Showing the Sex of respondents:

Particulars Male Female

No. of Respondents 08 42

Percentage 16% 84%

Analysis: The above table shows the sex of the respondents. Most of the respondents belong to the sex group Female. In the survey, it was found that 42 of the respondent were Female and only 8 of them were Male.

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Chart No. 1 Chart Showing the Sex of respondents:

Inference: It is inferred that most of the respondents are Female customers.

Table No. 2 Table showing the Educational Qualification of respondents:

Particulars Under Graduate Post Graduate Graduate

No. of Respondents 00 35 15

Percentage 00% 70% 30%

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Others TOTAL

00 50

00% 100%

Analysis: The above table shows the Educational Qualification of the respondents. Most of the respondents were Post-graduated customers and some of them were graduated. But none of them were neither Under graduate nor someone who falls under others category. It is found that 35 respondents were Post-graduated-and 15 were Graduated Customers.

Chart No. 2 Chart showing the Educational Qualification of the respondents:

Inference: It is inferred that most of the respondents are Post graduated customers and only least are the graduated persons.

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Table No. 3 Table showing the consumer status (Occupation):

Particulars Govt. Employee Private Employee Housewife Student TOTAL

No. of Respondents 20 15 10 05 50

Percentage 40% 38% 20% 10% 100%

Analysis: The above table shows the Consumer Status (Occupation) of the respondents. It is found that 40% of respondents are Govt. employee, 30% are Pvt. Employee, 20% are Housewife and 10% are students.
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Chart No. 3 Chart showing the Consumer status (Occupation):

Inference: It is inferred that most of the respondents are Government employees, followed by private employees.

Table No. 4 Table showing the Age group of respondents:

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Age 18-25 26-35 36-45 45 and above TOTAL

No. of Respondents 10 14 21 05 50

Percentage 20% 28% 42% 10% 100%

Analysis: The above table shows the Age Group of respondents. It is found that 21 of the respondents belong to the age group 36-45, 14 of them belongs to age group of 26-35, 10 belongs to the group 18-25 and the lowest group was 45 and above who were only 05.

Chart No. 4 Chart showing the Age group of respondents:

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Inference: It is inferred that most of the respondents are of the age group 35-45, followed by 25-35, 18-25 and 45 and above respectively.

Table No. 5 Table showing the Average Monthly Income of the respondents:

Income(in Rs.) Less than 20,000 20,000-25,000 25,000-30,000 More than 30,000 TOTAL

No. of Respondents 07 28 10 05 50

Percentage 14% 56% 20% 10% 100%

Analysis:
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The above table depicts the average monthly income of the respondents. 56% of the respondents fall under Rs.20,000-25,000 category, 20% of the respondents fall under Rs.25,000-30,000 category, 14% of the respondents fall under less than Rs.20,000 and only10% fall under more than Rs.30,000.

Chart No. 5 Chart showing the average monthly income of the respondents:

Inference: It can be inferred that most of the respondents fall under the income group of Rs. 20,000-25,000.

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Table No. 6 Table showing the number of respondents being heard of the brand KSIC (Mysore Silk):

Particulars YES NO TOTAL

No. of Respondents 40 10 50

Percentage 80% 20% 100%

Analysis: The above table shows the number of respondents being heard of the Brand KSIC (Mysore Silk). It is found that, 80% of the respondents have heard of KSIC (Mysore Silk) and only 20% of them have not heard of the brand. So, it can be interpreted that, most of the respondents have heard of the Brand KSIC (Mysore Silk).

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Chart No. 6 Chart showing the awareness of the Brand KSIC (Mysore Silk):

Inference: It can be inferred that most of the respondents are well awared about the brand KSIC (Mysore Silk).

Table No. 7 Table showing the preference of the respondents to buy out of the various line of products:

Product Sarees

No. of Respondents 30

Percentage 60%

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Silk Shirt Dress material Shawls

05 08 07

10% 16% 14%

TOTAL

50

100%

Analysis: The above table shows the preference of the respondents out of the various line of products offered by the company. 60% of the respondents prefer Saree, 16% prefer Dress material, 14% prefer Shawls and only10% prefer Silk Shirt.

Chart No. 7 Chart showing the preference of the respondents to buy out of the various line of products:

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CONSUMER BEHAVIOUR

Inference: It can be inferred that majority of the respondents prefer to buy Saree out of the various line of products offered by the company, followed by Shawls, dress material and silk shirts.

Table No. 8 Table showing the factors by which the respondents are influenced to buy the Brand KSIC (MysoreSilk):

Factor Price Brand Name Quality Product variety

No. of Respondents 20 15 08 07

Percentage 40% 30% 16% 14%

TOTAL

50

100%

Analysis:
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CONSUMER BEHAVIOUR

The above table shows the factors influencing the respondents to buy the products of KSIC (Mysore Silk). It is found that majority of the respondents are influenced mostly by brand name and quality followed by price and product variety. 40% of the respondents were influenced by brand name and 30% of them were influenced by quality.

Chart No. 8 Chart showing the factors by which the respondents are influenced to buy the Brand KSIC (MysoreSilk):

Inference: It is inferred that most of the respondents are influenced by brand name and quality.

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CONSUMER BEHAVIOUR

Table No. 9 Table showing the other brand names which comes to the mind of the respondents when they think of SILK:

Particulars Mysore Silk Kancheepuram Silk Beneras Silk TOTAL

No. of Respondents 31 10 09 50

Percentage 62% 20% 18% 100%

Analysis: The above table shows the other brand names that could remember by the respondents when they think of Silk. It is found that most of the respondents think of Mysore Silk getting 62%. 20% of themthink of Kancheepuram Silk and only 18% for Beneras silk.

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CONSUMER BEHAVIOUR

Chart No. 9 Chart showing the other brand names which comes to the mind of the respondents when they think of SILK:

Inference: It can be inferred that the majority of the respondents think of Mysore Silk than the other existing brands of silk.

Table No. 10 Table showing how often the respondents buy products from the KSIC (MysoreSilk):

Particulars

No. of Respondents

Percentage

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CONSUMER BEHAVIOUR

Very Frequently Frequently Ocassionally Rarely TOTAL

04 10 26 10 50

08% 20% 52% 20% 100%

Analysis: The above table shows the frequency of purchase of products from KSIC (Mysore Silk) by the respondents. And from this table, it is found that most of the respondents buy products from KSIC(Mysoreilk) occasionally. 60% of the respondents were found buying occasionally according to the survey.

Chart No. 10 Chart showing how often the respondents buy products from the KSIC (MysoreSilk):

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CONSUMER BEHAVIOUR

Inference: It is inferred that the respondents buy KSIC products ocassionally. Only a few respondents buy the products frequently.

Table No. 11 Table showing the preference of Design Combination while purchasing sarees by the respondents from the KSIC (MysoreSilk):

Particulars Embroidery Design Saree Zari Printed Saree Small Mango Saree Saree Tissue Saree TOTAL

No. of Respondents 13 14 11 12 50

Percentage 26% 28% 22% 24% 100%

Analysis:

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CONSUMER BEHAVIOUR

The above table represents the respondents preference in buying a saree in terms of Design Combination. From this table, it is found that the respondents prefer to buy all the design combinations offered by KSIC. The purchase rate of each design combination is at an average rate.

Chart No. 11 Chart showing the preference of Design Combination while purchasing sarees by the respondents from the KSIC (MysoreSilk):

Inference: It is inferred that the respondents are purchasing each design combination of sarees offered by the company at an average scale.

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CONSUMER BEHAVIOUR

Table No. 12 Table showing the opinion of respondents with the quality of materials in KSIC (Mysore Silk):

Particulars Excellent Very good Good Average TOTAL

No. of Respondents 09 20 10 11 50

Percentage 18% 40% 20% 22% 100%

Analysis: The above table shows the respondent who are satisfied with the quality of materials in KSIC (MysoreSilk). According to the survey, 20 rated Very Good, 11 rated Average, 10 rated Good and only 09 rated Excellent. So, maximum of the respondents rates the quality of materials used in the KSIC as Very Good.

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CONSUMER BEHAVIOUR

Chart No. 12 Chart showing the opinion of respondents with the quality of materials in KSIC (Mysore Silk):

Inference: It is inferred that majority of the respondents are satisfied with the quality of materials in KSIC (Mysore Silk).

Table No. 13 Table showing the satisfaction of respondents with the value for price in KSIC (Mysore Silk):

Particulars High

No. of Respondents 08

Percentage 16%

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CONSUMER BEHAVIOUR

Reasonable Low Moderate TOTAL

24 06 12 50

48% 12% 24% 100%

Analysis: The above table shows the respondents satisfaction with the price of the KSIC (Mysore Silk). From the survey, it is found that 48% of the respondents said that the price is reasonable, 24% for moderate, 16% of them considered the price value as High and only 12% rated as Low. Thus, from the table, it is found that the price value is reasonable which is set by the KSIC.

Chart No. 13 Chart showing the satisfaction of respondents with the value for price in KSIC (Mysore Silk):

Inference:

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CONSUMER BEHAVIOUR

It is inferred that majority of the respondents are satisfied with the value of price set by KSIC (Mysore Silk). 48% of the respondents were found saying the price value is reasonable.

Table No. 14 Table showing the promotional tools through which respondents are been made aware about (Mysore Silk):

Particulars Personnel Selling Sales Promotion (Exhibition) Advertisement Friends and Relatives TOTAL

No. of Respondents 00 05 22 23 50

Percentage 00% 10% 44% 46% 100%

Analysis: The above table shows the promotional tools through which the respondents are been made aware about the KSIC (Mysore Silk). It isbeen
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CONSUMER BEHAVIOUR

showed that 23 respondents got information about the KSIC (Mysore Silk) from friends and relatives, 22 from advertisement, 05 from Sales promotion and none from the personnel selling.

Chart No. 14 Chart showing the promotional tools through which respondents are been made aware about (Mysore Silk):

Infernce: It is inferred that the majority of the respondents got awared about the KSIC (Mysore Silk) brand mostly through Friends and relatives and advertisement.

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CONSUMER BEHAVIOUR

Table No. 15 Table showing the factors by which respondents are attracted towards KSIC (Mysore Silk):

Particulars Quality Colour Combination Patterns and Designs Brand Name Easy availability Material TOTAL

No. of Respondents 13 07 08 12 04 06 50

Percentage 26% 14% 16% 24% 8% 12% 100%

Analysis: The above table shows the factors by which the respondents are attracted towards the KSIC (Mysore Silk). It is found that most of the respondents are attracted by the Quality, Brand name and Patterns and designs. It has been showed that 13 respondents are attracted from quality, 12 from brand name, 08 from Patterns and and designs, 07 from colour combination, 06 from material and 04 from easy availability.

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CONSUMER BEHAVIOUR

Chat No. 15 Chart showing the factors by which respondents are attracted towards KSIC (Mysore Silk):

Inference: From the above chart. it can be inferred that majority of the respondents are mainly attracted by Qualityand Brand image, followed by Patterns and designs, colour combination material and easy availability one after the another.

Table No. 16 Table showing the factor by which KSIC (Mysore Silk) saree is comparatively better than the other existing Brands:

Particulars Price Brand Image Quality

No. of Respondents 10 06 20

Percentage 20% 12% 40%

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CONSUMER BEHAVIOUR

Design TOTAL

14 50

28% 100%

Analysis: The above table shows the factors by which KSIC (Mysore Silk) saree is comparatively better than the other existing brands. From this table, it can be analysed that 40% of respondents select KSIC (Mysore Silk) because ofthr quality offered by the company, 28% because of design, 20% because of price and 12% because of Brand Image.

Chart No. 16 Chart showing the factor by which KSIC (Mysore Silk) saree is comparatively better than the other existing Brands:

Inference: It is observed that most of the respondents select KSIC (Mysore Silk) because of Quality and and Design as compared with the other brands.

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CONSUMER BEHAVIOUR

Table No. 17 Table showing the Future Expectations of the respondents towards KSIC (Mysore Silk):

Particulars Quick Service Low priced Product High Quality Product Good Packaging TOTAL

No. of Respondents 06 29 08 07 50

Percentage 12% 58% 16% 14% 100%

Analysis: The above table shows what the respondents expect about the company in future.It is found that Majority of the respondent expect to see the company providing low priced product. In the survey, 8 respondent expect High quality product, 07 of them expect Good packaging and only 06 expect Quick services.

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CONSUMER BEHAVIOUR

Chart No. 17 Chart showing the Future Expectations of the respondents towards KSIC (Mysore Silk):

Inference: It is inferred that most of the respondents expect to see Low priced product, followed by quick services from the Company in future.

Table No. 18 Table showing the satisfaction of respondents with the variety of products provided by KSIC :

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CONSUMER BEHAVIOUR

Particulars YES NO TOTAL

No. of Respondents 45 05 50

Percentage 90% 10% 100%

Analysis: The above table shows the satisfaction factor of the respondents towards the variety of products provided by KSIC. It is found from here that 90% of the respondents are satisfied while 10% are not satisfied.

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CONSUMER BEHAVIOUR

Chart No. 18 Chart showing the satisfaction of respondents with the variety of products provided by KSIC :

Inference: It is inferred that the majority of the respondents are satisfied with the variety of products provided by KSIC.

Table No. 19 Table showing the ratings of the respondents towards KSIC (Mysore Silk):

Particulars Very Good Good

No. of Respondents 27 14

Percentage 54% 28%

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CONSUMER BEHAVIOUR

Satisfactory Poor TOTAL

09 00 50

18% 00% 100%

Analysis: The above table shows the ratings given by the respondents towards the products and services offered by KSIC (Mysore Silk). In the survey, it is found that VERY GOOD was rated by 27 people, GOOD by 14, SATISFACTORY by 9 respondents and no one rated POOR which means that the respondents are satisfied with the various products and services offered by KSIC (Mysore Silk).

Chart No. 19 Chart showing the ratings of the respondents towards KSIC (Mysore Silk):

Inference:

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CONSUMER BEHAVIOUR

It can be inferred that the majority of the respondents give the rating as Very Good.

Table No. 20 Table showing the Recommendation of KSIC (Mysore Silk) by the respondents to the others :

Particulars YES NO TOTAL

No. of Respondents 42 08 50

Percentage 84% 16% 100%

Analysis: The above table shows the recommendation of KSIC (Mysore Silk) by the respondents to the others. It is found that 84% of the respondents will recommend KSIC to others as well and only 16% will not do the same.Out

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CONSUMER BEHAVIOUR

of 50 respondents, 42 will recommend to others but 8 of them found to be not willing to recommend the brand to others.

Chart No. 20 Chart showing the Recommendation of KSIC (Mysore Silk) by the respondents to the others :

Inference: It is inferred that most of the respondents recommended for KSIC (Mysore Silk) to others.

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CONSUMER BEHAVIOUR

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FINDINGS It is the found that, majority of

respondents were women. Majority of the respondents have heard of the brand KSIC (Mysore Silk) and only least number of respondents are not awared about KSIC (Mysore Silk). Majority of the respondents are highly influenced by quality and brand name.
Majority of the respondents were of the age 36-45 category.

It can be inferred that most of the respondents fall under the income group of Rs. 20,000-25,000.
Majority of the respondents purchase silk sarees out of the various

product lines offered by the company. Majority of the respondents purchase products from KSIC (Mysore Silk) occasionally.

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CONSUMER BEHAVIOUR

Majority of the respondents are satisfied with the value of price which has been fixed by KSIC (Mysore Silk). Majority of the respondents are been made aware of KSIC (Mysore Silk) through friends and relatives and advertisement. Majority of the respondents are been attracted towards KSIC (Mysore Silk) by Brand Name, quality and various colour combinations. Majority of the respondents will recommend others to buy the products which is been manufactured by KSIC (Mysore Silk). Majority of the respondents are overall satisfied with the quality, price, usage experience of the KSIC (Mysore Silk).

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CONSUMER BEHAVIOUR

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SUGGESTIONS: The Company KSIC (Mysore Silk) has tried various tactics to satisfy the consumers by using the different designs, attractive colour combinations, convenient packages. advanced technology for effective advertisements and also by introducing new varieties to cater to the needs of different segments of consumers. The following suggestions will in help the Company Styles,

strengthening its market position. The company should introduce cost effective range of sarees. The company should concentrate on advertisement to increase its sales. The company expand The company should expand their authorised outlets. should their

distribution channel by adding more number of authorised dealers.

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The company must plan to train and encourage their distributers and dealers to provide quality products to the customer to improve its service. The design of products should be improved which should suit the present era, and through this the company can raise its sale. The quality should be properly maintained so as to retain the customers. The company should switch to the following tools for attracting the attention of the people towards their brand: Public Relation and Press Release Sponshorship Trade Shows The Company should not only give concentration on female products but also to the male wears so as to capture the market, gaining its market share.

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CONCLUSION The main objective of this project was to study and analyse the Consumer Behaviour towards (Mysore KSIC Silk)

products. During the course of this project, I learned that, the KSIC (Mysore Silk) is one of the most used silk sarees in the silk and silk products company. Further colour more, the

combination, design and quality were the main factor of the consumer. The KSIC (Mysore Silk) should come out with a new range of sarees which has more attractive features. The saree should give good comfort and good looking or the so that the consumers users are happy about their sarees. The various recommendations and suggestions that can be of use to KSIC (Mysore Silk) have already been discussed earlier in the previous chapter. The markets for KSIC (Mysore Silk) products will always exist and will continue to grow as long as people purchase sarees or silk products which has the feature of pure silk and
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good colour combination. Thus, there is a lot of scope for improvement for KSIC (MysoreSilk), both in terms of market share as well as profit margins. I personally learnt quite a few things during the course of this project. Firstly, I got work for a few days with a very prestigious company and got an inside picture of how things are done in the work place and came to know about the rules and regulations, norms and formalities which are following in a Company. Secondly, during the survey, I met many professionals and intellectuals, which was very fruitful in terms of gaining knowledge about the industry as a whole. Therefore, the overall experience was memorable.

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QUESTIONNAIRE: Dear Respondent, I, Robert Lourembam, a final year BBM student of Indian Academy Degree College, Bangalore, conducting a survey on Consumer Behaviour with respect to KSIC LTD. (Mysore Silk), Bangalore. I shall be grateful to you if you could spare your valuable time and cooperate with me in answering the questionnaire to the best of your knowledge. I assure you information will be strictly used for academic purpose only. that the given by you

1. Name: ________________________________________ Contact number: +91_____________________________ E-mail id: ______________________________________ 2. Sex: a) Male 3. Educational Qualification: a) UnderGraduate b) Graduate
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b) Female

CONSUMER BEHAVIOUR

c) Post Graduate

d) Others

4. Consumer Status(Occupation): a) Govt. Employee c) Housewife e) Professional 5. Age: a) 18 to 25 c) 35 to 45 b) 25 to 35 d) 45 and above b) Private Employee d) Student

6. Average Monthly Income: a) Less than 20,000 c) 25,000-30,000 b) 20,000-25,000 d) More than 30,000

7. Have you heard of the brand KSIC( Mysore Silk)? a) YES b) NO

8. From the following line of products, which one you will buy ? a) Saree c) Dress Material b) Silk Shirt d) Shawls

9. What factors influence you to buy the Brand of KSIC( Mysore Silk)? a) Price c) Quality b) Brand Name d) Product variety

10. What other brand name could you remember when you think of SILK? _________________________________________________________ 11. How often do you buy clothes from KSIC(Mysore Silk)? a) Very Frequently c) Occasionally b) Frequently d) Rarely
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12. Which design combination of saree would you like to prefer ? a) Embroidery Design saree c) Small Mango saree b) Zari Printed saree d) Saree tissue saree

13. What is your opinion with the quality of materials in KSIC(Mysore Silk)? a) Excellent c) Good b) Very good d) Average

14. How do you think about the Price value in KSIC( Mysore Silk )? a) High c) Low b) Reasonable d) Moderate

15. Through which Promotional tool you come to know about this Companys Product? a) Personnel Selling c) Advertisement b) Sales Promotion(Exhibition) d) Friends and Relatives

16. Factors by which you are attracted towards the KSIC( Mysore Silk ): a) Quality c) Pattern and Designs e) Brand Name b) Colour Combination d) Material f) Easy availability

17. How do you feel KSIC Mysore Silk saree is comparatively better than other brands? a) Price c) Quality b) Brand Image d) Design

18. What extra Service do you expect from this company? ( Future expectations) a) Quick Service b) Low Priced Product
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c) High Quality product

d) Good packaging

19. Are you satisfied with the variety of products provided by KSIC? a) YES b) NO

20. How do you rate the Brand KSIC(Mysore Silk)? a) Very Good c) Satisfactory b) Good d) Poor

21. Would you recommend the KSIC( Mysore Silk ) to others? a) YES 22. Suggestions( if any ): ............................................................................................................. ............................................................................................................. ............................................................................................................. b) NO

Date: Place: Signature

THANK YOU FOR YOUR CO-OPERATION AND KIND INFORMATION

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CONSUMER BEHAVIOUR

SAREE PALLU DESIGNS OFFERED BY KSIC (MYSORE SILK) LTD. :

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CONSUMER BEHAVIOUR
Crepe Pallu Zari Stripes Body Plain

Crepe Pallu Zari Stripes Body Butta

Crepe Pallu Zari Stripes Body Small Checks

Crepe Pallu Zari Stripes Body Medium Checks

Georgete Tissue Pallu Zari Stripes Body Tissue

Crepe Tissue Pallu Zari Stripes Body Tissue

Georgete Pallu Zari Checks Body Plain

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CONSUMER BEHAVIOUR

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BIBLIOGRAPHY

Marketing Management Philip Kotler Market Management Sexen Consumer Behaviour Suja Nair Business Research Methods B.G. Satyaprasad
www.google.com www.ksicsilk.com www.marketingterms.com www.consumerbehaviour.com

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