Marketing Research Project

On
Consumer Behaviour towards
Rostel Apparel

Submitted by: Submitted to:

Himanshu sharma Ms. Kangan Jain
Master of Business
Administration (Department of Business
Patna women’s college administration)
Patna University (PU)
Enrolment No: -

DECLARATION
I hereby declare that this Project Report titled “Marketing Research
Project on Consumer Behaviour towards Rostel Apparel” submitted
to the Department of Business Administration, Patna womens college
(Patna University) is a record of original work done by me under the
guidance of Ms Kangan Jain.

The information and data given in the report is authentic to the best of my
knowledge.

This Project Report is not submitted to any other university or institution
for the award of any degree, diploma or fellowship or published any time
before.

-Himanshu sharma

CERTIFICATE

This is to certify that the project entitled “Marketing Research Project
on Consumer Behaviour towards Rostel apparel” submitted by
Himanshu sharma, student of Master of Business administration (MBA)
Patna womens college (Patna university Patna) is a record of work done
under my supervision.

This is also to certify that this report is an original project submitted as a
part of the curriculum and no unfair means like copying have been used
for its completion. All references have been duly acknowledged.

Ms. Kangan Jain
Faculty
(Department of Business administration)

ACKNOWLEDGEMENT
It gives me immense pleasure to be associated with this project. The
project was a joyous learning process. The presentation of the report in
the way required has been made possible by the way of contribution of
various people.

First of all, I would like to express my gratitude to Ms. Kangan for her kind
help and encouragement. I am very thankful to her for her advice,
assistance, and constant support throughout the preparation of this
report.

I would like to thank all my beloved teachers for their support and
confidence in me.

I would also like to express my deep gratitude to all the respondents
whose response was of utmost importance for the project.

-Himanshu sharma

INDEX S. Motivation 5 7. Background of the problem 2-3 6. Executive Summary 1 5. Types of Software piracy 7 9. Declaration (i) 2. Bibliography 23 15. 1. Certificate (ii) 3. Findings And Analysis 10-18 11 Recommendations 19-20 12. Basic Software piracy terminology 6 8. Research design 8-9 10. TOPIC PAGE NO. Conclusion 21 13 Limitations 22 14. Acknowledgement (iii) 4.NO. Annexure 24-27 .

We have also tried to ascertain why customers buy these products. – the global sports apparels giant. This includes aspects such as pricing. Customers to be eventually targeted are described and compared with competitors’ customer targets. The project moves on to the crux of the matter – the marketing plan to be followed by Rostel in India. . The project report begins with a brief overview of the product category being dealt with. It aims first. promotion. improvements and innovations are recommended. namely premium quality sports apparels. Firstly. It then sets out to describe the target audience for the product range and finally suggests a host of marketing strategies and activities that will help Rostel to achieve its target of becoming the good sports apparels brand in India. Suggestions are made on each and every one of these aspects. EXECUTIVE SUMMARY This marketing research project report has been written keeping in mind the Indian operations of Rostel. and the company website. and what factors matter most when making their decisions. channels. Various criteria and factors have been taken into consideration while segmenting the market. The customer base is identified and various segments are pointed out. After stating the objectives and reasoning behind them. at analysing the sports apparels industry of India and finding a place in it for Rostel. sales. The project report then goes on to the customer analysis section. how they choose. advertising. the objectives behind this plan and the core strategy are stated. It also dwells briefly on the history of the company and its current position and activities. the actual marketing programs are described in detail.

In an example taken to the extreme in the 2002 movie Minority Report. Simonson tackles the issue of one-to-one marketing and mass customization. and second-guessing them can be expensive. says the professor who teaches MBA and PhD marketing and consumer decision-making courses. Much of his work debunks the accepted theory that giving consumers what they want and making a profit are the most basic principles of marketing. In Simonson’s words.” That’s because “customer preferences are often ill-defined and susceptible to various influences. Customers may not know what they want. it is far from certain that the response to such offers . Supporters of these marketing approaches have suggested that learning what customers want and giving them exactly what they want will create customer loyalty and an insurmountable barrier to competition. BACKGROUND OF THE PROBLEM Since the late 1980s. he has learned that “even when customers have well-defined preferences and receive offers that fit those preferences. “The benefits and costs of fitting individual customer preference are more complex and less deterministic than has been assumed. customers have poor insight into their preferences. unstable. Business School marketing professor Itamar Simonson has looked for ways to understand how consumers make choices.” In studies. and manipulate is unlikely to change. So. and in many cases. But Simonson has this to say: “The fact that consumer preferences are often fuzzy. the ultimate in personalized advertising. the effectiveness of methods to give customers exactly what they (say they) want has been grossly exaggerated. Tom Cruise’s character runs through a shopping mall past talking billboards that recognize him by name and urge him to buy products he had earlier expressed an interest in such as jeans and Ray-Bans.” His take on the long-held assumption that individual marketing will supplant targeted marketing is “not so fast.” In one of his recent papers.

Keeping this in mind. It is required to understand other aspects of customer behaviour. . present study will find out and analyse consumer behaviour towards Rostel apparel.” It’s all psychology. Simonson says. Consumers with well-defined preferences may be sceptical that a marketer could match expectations. They often didn’t come back. But Simonson argues some companies can take the concept too far. and felt obligated to buy the t- shirts because the store went to so much trouble. So knowing only the customer preferences is not enough. but also a thorough familiarity with the various factors that impact customers’ responses. Dell builds computers from mass-made parts to customers’ specifications. Amazon keeps track of customers’ purchases and suggests other books they might like. “Effective individual marketing requires not only an understanding of individual preferences and matching offers to those preferences. This is a tall order. at least to some extent.will consistently be more favourable than those directed at larger market segments. So. like the Custom Foot chain of shoe stores that took detailed measurements and specifications from each customer to design one-of-a-kind t-shirts. C didn’t take into account that some customers were put off by the individualized attention. one that some companies have been able to fill.” Simonson writes. individualized offers depend on customers’ preferences &. and on trust. For example. Those who don’t know what they want may not ever see the fit with what the seller wants them to buy. how the offer was extended &.

The apparel manufactured in this factory. General recession and sluggish market conditions in the industry also have had a direct impact on lower sales and profitability. RECENT DEVELOPMENTS While retail sales have increased both in value and volume.sweat shirts.mostly from China - An attractive valuation compared to its peers is the main trigger for the scrip. Plans are apparel to start selling afoot in India .It has a distribution network of over 1. which was shifted to the company‘s other factories and associated manufacturers. the company’s aggressive focus on retailing and revamping of business (a division into apparels and shoes) is also helping sentiment for the scrip. 2013 due to serious industrial relation problems and non-compliance with the tripartite settlement has been withdrawn. will now be gradually produced within the factory.track suit per year in two plants located in Faridabad (Haryana). Resistance of consumers to price rises in popular volume products as well as discounts to clear slow-moving stocks and underutilization of production capacity adversely affected the operational results. The lockout declared at the Hanuman weaving factory on October 1. The company has its Headquarters in Delhi and manufactures over 4 million T-shirts. The commencement of production from this factory will help in re-cooping the minimal loss being suffered by the company. Besides. FUTURE PLAN The management says that it is not averse to outsourcing if it worked out cheaper. It is also open to the idea of importing apparel . is India‘s apparel company.50 retail stores and 25 wholesale depots provide excellent access to consumers and wholesale customers throughout India. Bangalore (Karnataka). COMPANY PROFILE Rostel India pvt Ltd. Rostel first established itself in India in 2012 and commenced manufacturing apparel in Delhi Ncr. wholesale sales have declined due to restriction of supplies as a means to recover customers’ outstanding.

Rostel India is the growing player in the Indian apparel market. Bata’s brand image has been restricted to that of a company that emphasizes on utilitarian products more than trendy ones. Hence. Rostel India has also been trying to focus on aggressive marketing of its product. there is a network of 75 exclusive wholesalers servicing 250 dealers all over the country. Rostel India’s major problems include its high cost of production and low emphasis on marketing. Despite reducing its losses for the last quarter. However. particularly from the unorganized sector. it also entered into a retailing tie-up with other brand. There’s talk that the company is planning on a voluntary retirement scheme (VRS) to cut costs. The company is finding it difficult to maintain its market share in a highly price-sensitive Indian market. The company may be able to address the first problem through outsourcing products. their preference has shifted to other local brands.50 showrooms.made by the joint venture North Star. In 2013. the company has recently decided to shift its marketing operations to Delhi in order to provide value shopping for its customers. However. Rostel India has plans to invest in sophisticated machinery to retain its . The company has been going through a period of transition for the past one year. Customers feel the company is lacking in innovation. Rostel India has a large marketing network with over 1. Rostel India has. has also been eroding into the company’s market share. Rostel has not been able to improve sales consistently. been continuously recording weak performances as a result of an overall slowdown in the industry due to lower consumer spending. the manufacturing activity and the registered office will continue at Banglore. Increasing domestic competition. With the expansion of the retail industry in New Delhi and Mumbai. Besides. 25 wholesale depots and eight retail distribution centres in the country. over the last few quarters. Hush Puppies and Lotto. despite having strong brand recall. in spite of this and the license to sell other brands like Rostel. 97% of the company’s revenues are from the domestic market while the remainder is from exports.

niche place in manufacturing. North Star. The company has put a fresh focus to its retail business. The Apparel industry in India is highly fragmented and dominated by the unorganized sector. It is to the company’s credit that it has lately overhauled its marketing set- up into a four-tier retail structure that will be stocked with products matching the area’s customer profile. located in up market areas and catering to middle and high-income groups. it is not that easy a task to undertake. like other Indian manufacturers. It competes with Indian players such as Numero unoand global players like Adidas. Alternatively. Third in line will be family stores at commercial locations displaying basic and mid- range footwear. Accessories and shoes contribute garment sales account for more than 96% of sales while the balance. distribution logistics. The industry size is around Rs 2 Bn and is growing at around 10% annually. focus on stores configuration. Marie Claire and Hush Puppies for the top end of the market. A Rostel outlet in an up market place will offer a distinctly different range of Apparel from another in the suburbs. Next will be city stores. 4PS OF ROSTEL . Reebok. The management of Rostel India is taking major steps in terms of improving market penetration. even Rostel may consider relocating its manufacturing bases in China. The company has decided to cleanse its wholesale operation by building relationships with credit-worthy buyers. with the opening up of the economy. more and more goods will be imported from China. Launching of new products always remained at the center stage of the company’s operations. At the same time. This may significantly affect Rostel India’s prospects unless it manages to wean away customers with a drastic cut in costs. better industrial relations and overhead rationalization.US polo. At the bottom will be bazaar stores that will basically aim at driving volume sales at lower price points.tommy hill. Bubble gummers. At the top of the four-tier structure will be international stores stocking brands like Nike and Reebok. However. The company has identified the brands Power.

Place: Rostel Apparel are distributed to Multi Brand store front and the exclusive rostel stores in the countries. Its product history began with long distance running shoes in Wide range of apparel.Rostel 4Ps comprised of the following approaches to pricing. and customer service: Pricing: Rostel’s pricing is designed to be competitive to the other fashion garments retailers.Garments sportswear.shoes and equipment. Rostel as a brand commands high premium. distribution. advertising and promotion. Promotion: Location. The pricing is based on the basis of premium segment as target customers. Product: The product range of Rostel comprise of shoes.They form the prime building blocks of their portion strategy. RESEARCH METHODOLOGY . watches etc. targeted advertising in the newspaper and strategic alliances serves as the foundation of Rostel advertising and promotion effort.

DATA SOURCES There are two types of data. and buying behavior of consumers in case of apparel of Rostel. RESEARCH DESIGN TYPE OF RESEARCH:-Descriptive research Descriptive research includes Surveys and fact-finding enquiries of different kinds. organizing and evaluating data. preferences. Source of primary data for the present study is collected through questionnaire and answered by consumers of apparel. The main objectives of this study are:  SWOT analysis of the product sold. collecting. the search for Knowledge through Objective and Systematic method of finding solutions to a problem is Research. he can only report what has happened or what is happening. RESEARCH OBJECTIVES  To study the tastes. making deductions and reaching conclusions. PRIMARY DATA . books and through Internet search.  To recommend strategies to Rostel to increase sales. In short. and at last carefully testing the conclusions to determine whether they fit the formulating Hypothesis.Research comprise defining and redefining problems. The secondary data is collected from journals. The main characteristic of this method is that the researcher has no control over the variables.  Comparative study with the competitors. formulating hypothesis or suggested solutions.

list of questions pertaining to the survey are prepared consumers of Apparel.The data that is collected first hand by someone specifically for the purpose of facilitating the study is known as primary data. web site of the company etc. The Method used by me is Survey Method as the research done is Descriptive Research. So in this research the data is collected from respondents through questionnaire. The questions have more than one alternative. RATING SCALE A scale that rates some attribute like from “highly satisfied ” to “highly unsatisfied” or “very inefficient” to “very efficient” SAMPLING UNIT . Questionnaire has structured type questions as well as unstructured type questions. Structured objective type questions are prepared for the respondents with fixed response categories. SECONDARY DATA For the company information I had used secondary data like brochures. TYPES OF QUESTION INCLUDED: DICHOTOMOUS QUESTIONS Which has only two answers “Yes” or “No”? MULTIPLE CHOICE QUESTIONS Where respondent is offered more than two choices. Some of the questions are of multiple-choice type. RESEARCH INSTRUMENTS Selected instrument for Data Collection for Online survey is Questionnaire. QUESTIONNAIRE DESIGN FORMULATION Under this method. IMPORTANCE SCALE A scale that rates the importance of some attribute.

(iii) Data was thoroughly checked for error. This review provided a feel for the pattern of answers and thus determine what categories best represent the answers. (ii) Sample survey was conducted. SAMPLE SIZE Consumers of Rostel Apparel. corrected and modified. Then this is interpreted. (ii) Tabulation – bring similar data together and totalling them in meaningful categories. . DATA PROCESSING METHODOLOGY (i) Once the primary data have been collected. The responses are thoroughly checked in home for incorrect. different gender and different profession. (iv) The collected data are placed into an order. Percentages of respondents answered similarly are calculated and placed in a table. (iii) Questionnaires are edited. inconsequential or contradictions categories are developed only often the replies has been reviewed.Who is to be surveyed? The marketing researcher must define the target population that will be sampled. This involved drawing conclusion from the gathered data. Interpretation changes the new information immerging from the analysis into information that is pertinent or relevant to the study. they are edited – inspected. 50 nos STEPS FOLLOWED IN COMPLETING THE STUDY (i) Internet sites containing information on Rostel Apparel & marketing are browsed. The sample Unit taken by me: 50 respondents of different age group.

CONCLUSION WAS DRAWN BASED ON THE SURVEY FINDINGS Finally recommendation was made to improve the sales strategy of Rostel apparel to increase the sales volume. Interpretation changes the new information immerging from the analysis into information that is pertinent or relevant to the study. LIMITATIONS OF RESEARCH  The collected data are placed into an order. the answers at times were vague enough to be ignored. This involved drawing conclusion from the gathered data.  Due to limited time period and constrained working hours for most of the respondents. . Percentages of respondents answered similarly are calculated and placed in a table. Then this is interpreted.

FINDINGS AGE 15-20 33 66% 20-25 13 26% 25-30 4 8% GENDER Male 35 70% Female 15 30% .

Q1. Which is the most important element when you select Apparel? . which brand would you like to choose? Nike 20 40% Adidas 8 16% Puma 11 22% Reebok 6 12% Other 5 10% Q3. Are you brand conscious of Apparel? Yes 37 74% No 13 26% Q2. If you are going to buy Apparel.

Are you brand loyal to any brand below in terms of Apparel in the sportswear industry? Nike 15 30% Adidas 5 10% Puma 8 16% Reebok 4 8% Regularly switch to other brands 13 26% Other 5 10% . Brand 28 21% Quality 33 25% Price 19 14% Packaging 2 1% Comfort 40 30% Personality 10 7% Other 2 1% Q4.

Have you bought any T-shirts influenced by any ways of marketing or branding programs? Yes 16 32% No 34 68% . What are the main factors if you switch to buy the T-shirts of another brand? Quality 44 48% Price 25 27% Innovation 14 15% Advertisement 6 7% Other 2 2% Q6.Q5.

While buying.Q7. Have you bought any customized or personalized T-shirts? . Do you know rostel is offering personalized or customized T- shirts? Yes 22 44% No 28 56% Q9. do you consider environment friendliness in T- shirts? Yes 15 30% No 35 70% Q8.

If you are going to buy a customized T-shirts. Yes 10 20% No 40 80% Q10. which brand will you choose? Nike 26 52% Adidas 7 14% Puma 9 18% Reebok 6 12% Other 2 4% .

I like to buy costly apparel Strongly Agree 3 6% Agree 16 32% Indifferent 19 38% Disagree 10 20% Strongly Disagree 2 4% 2. 1. Please check the one box that best indicates how well the statement describes you personally. I prefer to buy apparel which are liked by my family and friends Strongly Agree 5 10% Agree 16 32% Indifferent 12 24% Disagree 13 26% Strongly Disagree 4 8% .Below are some statements of people’s buying behaviour towards the apparel.

I prefer to buy apparel which are advertised and endorsed by celebrity Strongly Agree 3 6% Agree 7 14% Indifferent 17 34% Disagree 13 26% Strongly Disagree 10 20% 4. I like to buy apparel which are very stylish & of latest design Strongly Agree 16 32% Agree 22 44% Indifferent 8 16% Disagree 4 8% Strongly Disagree 0 0% .3.

I don’t like to spend too much time on deciding my apparel Strongly Agree 8 16% Agree 22 44% Indifferent 7 14% Disagree 8 16% Strongly Disagree 5 10% 6. 5. Apparel companies should suggest apparel design using celebrity Strongly Agree 4 8% Agree 11 22% Indifferent 16 32% Disagree 12 24% Strongly Disagree 7 14% .

7.V advertisement is the best form of advertisement Strongly Agree 8 16% Agree 15 30% Indifferent 11 22% Disagree 13 26% Strongly Disagree 3 6% . Stores display is the best form of advertisement Strongly Agree 13 26% Agree 24 48% Indifferent 7 14% Disagree 6 12% Strongly Disagree 0 0% 8. T.

9. Buying customized apparel by internet is very attractive Strongly Agree 6 12% Agree 17 34% Indifferent 17 34% Disagree 7 14% Strongly Disagree 3 6% .

how would you rate Rostel apparel on the basis of following parameters? Price 1 3 6% 2 9 18% 3 19 38% 4 19 38% 5 0 0% Quality 1 3 6% 2 0 0% 3 9 18% 4 22 44% 5 16 32% Design .On a scale of 1 to 5.

1 3 6% 2 7 14% 3 9 18% 4 22 44% 5 9 18% Comfort 1 4 8% 2 2 4% 3 9 18% 4 19 38% 5 16 32% Packaging .

1 2 4% 2 7 14% 3 16 32% 4 16 32% 5 9 18% Personality 1 2 4% 2 2 4% 3 11 22% 4 18 36% 5 17 34% .

Innovation 1 4 8% 2 6 12% 3 10 20% 4 20 40% 5 10 20% Advertisement 1 7 14% 2 4 8% 3 13 26% 4 15 30% 5 11 22% .

This means that larger number of people prefer brands. . packaging and personality do not matter to people. 40% said that they prefer Nike.  The deciding factors for buying Apparel for people are mainly comfort. 12% went with Reebok and remaining 10% said that they would prefer other brands like Rostel. quality and brand name. 22% preferred Puma.  When the respondents were asked about their brand preference.  5% of the respondents are brand loyal to Rostel. 16% preferred Adidas. whereas 26% do not consider brand name as a deciding factor for buying shoes. whereas.ANALYSIS AND RECCOMENDATIONS  74% of the people are brand conscious while purchasing apparel for themselves. 40% people regularly shift to other brands of Apparel.

Devansh sharma (Founder and CEO) is often quoted as saying that 'Business is war without bullets. and products can be made more cheaply elsewhere (to the same or better specification). Rostel is strong at research and development. SWOT ANALYSIS STRENGTHS  Rostel is a very competitive organization. This makes a very lean organization. It does not tie up cash in buildings and manufacturing workers. If prices rise.  Rostel is a global brand.' Rostel has a healthy dislike of its competitors. Nike will move production. WEAKNESSES . They then manufacture wherever they can produce high quality product at the lowest possible price. It is good sports brand in the India. as is evidenced by its evolving and innovative product range.  Rosel has no factories.

high profits. the income of the business is still heavily dependent upon its share of the Apparel market. consumers need to replacet- shirts. However. Rostel is a fashion brand. The brand is fiercely defended by its owners whom truly believe that Rostel is not a fashion brand. consumers that wear Rostel product do not always buy it to participate in sport. OPPORTUNITIES  Product development offers Rostel many opportunities. Some would argue that in youth culture especially.  The business could also be developed internationally. since product could become unfashionable before it wears out i. However. Retailers tend to offer a very similar experience to the consumer. There are many markets that have the disposable income to spend on high value sports goods. The organization does have a diversified range of sports products.  There is also the opportunity to develop products such as sport wear. There are also global marketing events that can be utilized to support the brand such as the World Cup (soccer) and The Olympics. For example. building upon its strong global brand recognition.  The retail sector is very price sensitive. like it or not. However. This may leave it vulnerable if for any reason its market share erodes. sunglasses and jewellery. This creates its own opportunities. THREATS . Rostel does have its own retailer in Rostel Town. Can you tell one sports retailer from another? So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Rostel. Such high value items do tend to have associated with them. emerging markets such as China and India have a new richer generation of consumers.e. most of its income is derived from selling into retailers.

This is an issue that faces all global brands. Such an exposure could mean that Rostel may be manufacturing and/or selling at a loss.  As discussed above in weaknesses. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. the consumer could go to the store along the street to compare prices for the exactly the same item.  Rostel is exposed to the international nature of trade. This ultimately means that consumers are shopping around for a better deal. ANNEXURE Questionnaire on Rostel apparel Name Age 15-20 20-25 25-30 Gender . Such consumer price sensitivity is a potential external threat to Rostel. and buy the cheaper of the two. the retail sector is becoming price competitive. So if one store charges a price for a pair of T-shirts.

Are you brand conscious of Apparel? Yes No Q2. which brand would you like to choose? Nike Adidas Puma Rostel Other: Q3. Which is the most important element when you select apparel? Brand Quality Price Packaging Comfort Personality Other: . If you are going to buy a T-shirts. Male Female Q1.

What are the main factors if you switch to buy the apparel of another brand? Quality Price Innovation Advertisement Other: Q6. Have you bought any apparel influenced by any ways of marketing or branding programs? Yes No Q7.Q4. Are you brand loyal to any brand below in terms of apparel in the sportswear industry? Nike Adidas Puma Rostel Regularly switch to other brands Other: Q5. do you consider environment friendliness in Apparel? . While buying.

Have you bought any customized or personalized Apparel? Yes No Q10. If you are going to buy a pair of customized apparel. which brand will you choose? Nike Adidas Puma Rostel Other: . Yes No Q8. Do you know Rostel is offering personalized or customized apparel? Yes No Q9.

I prefer to buy garments which are advertised and endorsed by celebrity 4. I don’t like to spend too much time on deciding my garments 6.track suit design using celebrity .Below are some statements of people’s buying behaviour towards the apparel. I prefer to buy garments which are liked by my family and friends 3. Please check the one box that best indicates how well the statement describes you personally. Strongly Strongly Agree Indifferent Disagree Agree Disagree 1. Apparel companies should suggest st-shirts. I like to buy costly T-shirts 2. I like to buy Garments which are very stylish & of latest design 5.

Stores display is the best form of advertisement 8. Strongly Strongly Agree Indifferent Disagree Agree Disagree 7. Buying customized t- shirts by internet is very attractive On a scale of 1 to 5.V advertisement is the best form of advertisement 9. how would you rate Rostel apparel on the basis of following parameters? * (1 being the worst and 5 being the best) 1 2 3 4 5 Price Quality Design Comfort Packaging Personality Innovation Advertisement . T.

. enlisting an endorser can help a firm break through the clutter of the market place by helping the brand differentiate itself from its competitors. .Proper e commerce marketing through B2B and B2C _ first signing a high profile endorser can help reassure consumers about the true quality of a product. HYPOYHESIS The hypothesis for the study on marketing research on consumer buying behaviour towards Rostel apparel is as under. _ second .