2

EXECUTIVE SUMMARY

The main objective of the project was to measure brand awareness of VKC
and the
customer buying behavior towards footwear.
First it aims at analyzing how well people are aware about VKC brand
and its seven
different products and finally understanding the buying behavior of
ultimate customers
and there by understanding the needs of customers and becoming the best
brand in
customer mind. The plan begins with measuring the brand awareness and
customer
buying behavior at both rural and urban area.
The project moves to the curse of the matter –where exactly VKC brand
stands in
consumers mind .firstly the objective of research and core strategy was
stated. After
starting the objectives and reasoning being them the actual research is described
targeting
the common people for surveys. The survey includes aspects such as
measuring brand
awareness and buying behavior between rural and urban with criteria’s
like quality,
pricing, income, promotion, income, availability of products, competitors,
and celebrity
endorsement. Suggestions are made on each and every of these aspects.
The plan then goes to customer analysis section. The customer base is
identified and
main two criteria’s that is rural and urban have been taken into
consideration while
segmenting the market. Then have tried to find out why customers buy
VKC products,
how they choose, what factors matter most when making their decision and
what more
they expect from VKC brands.
Finally other than the conclusions drawn from the analysis through surveys,
improvement
and innovation are recommended which has been given by the customer and
will
ultimately help the company to understand where they are now and if implemented
where
they can be future.

INDUSTRY PROFILE
Footwear is estimated to have started its long history of human use
during the ice age
some 5 million years ago. Unkind weather conditions are said to have
created the
necessity of the footwear. Other evidences show that footwear came to use at end of
the
paleolithic period, at about the same time the early humans learned the
art of leather
training.
Early pieces of footwear were made of wrappings, usually made of
leather or
dried grasses later on pieces were developed for an oval piece of leather which is
bound
by a piece of strong leather throngs. Sandals which are first crafted
footwear are the
successors to these wrappings.
In Egyptian funeral chambers, paintings show the different stages in the
preparation of leather and footwear. The images also show that in Egypt,
footwear
depicted power and class.
The pharaoh’s sandals were distinguished by the turn up toes, a
characteristic
which is missing in the commoners’ footwear. The images also show that
in Egypt
footwear depicted power and class.
The Egyptian sandals were crafted using straw,papyrus or palm fiber.later
on
Egyptian women adorned their footwear with precious stones and jewels.
Footwear is demanded by all income group people. Middle and lower income
group prefer low cost,durable,wear and tear resistant footwear that can be used in
all type
of domestic condition where as high income group prefer fashion oriented footwear.

HISTORY OF FOOTWEAR
Spanish cave drawings from more than 15000 years ago show humans
with
animal skins or furs wrapped around their feet. The body of a well-preserved
“ice-man”
5000 years old wears leather foot coverings stuffed with straw. Shoes in
some form or
another, have been around for a very long time. The evolution of foot
coverings, from
sandal to present-day athletic shoes that are marvels of engineering, continues
even today
as wSe find new materials with which to cover our feet.
Has the shoe really changed that much though? We are, in fact still
wearing
sandals-the oldest crafted foot covering known to us. Moccasins are still readily
available
in the form of the loafer. In fact, many of the shoes we wear today can be traced
back to
another era. The Cuban heel may have been named for the dance craze of the 1920s,
but
the shape can be seen long before that time. Platform soles, which are
one of the most
recognizable features of footwear in the 1970s and 1990s were handed down to us
from
16
th
century chopines.the, high soles were a necessity to keep the feet off
of the dirty
streets. Today they are worn strictly for fashion’s sake. The poulaine, with its
ridiculously
long toes is not that different from the winkle-pickers worn in the 1960s.
If one can deduce that basic shoe shapes have evolved only so much, it
is
necessary to discover why this has happened.it is surely not due to a lack of
imagination-
the colors and materials of shoes today demonstrate that. Looking at shoes from
different
parts of the world, one can see undeniable similarities .while the venetians were
wearing
the chopine,the Japanese balanced on high-soled wooden shoes called get.
Though the
shape is slightly different, the idea remains the same. The venetians had no
contact with
the Japanese, so it is not a case of imitation. Even the mythical Chinese
practice of foot
binding has been copied (though to lesser extent) in our culture. Some European
women
and men of the past bound their feet with tape and squashed them into too tight
shoes.in
fact, a survey from the early 1990s reported that 88 percent of
American women wear
shoes that are too small.

As one examines footwear history, both in the west and in other parts of the world,
the similarities are apparent. Though the shoemakers of the past never
would have
thought to pair a sandal with a platform sole, our shoe fashions of today are, for
the most
part, modernized adaptation of past styles.
INDUSTRY CONCENTRATION
The Global Footwear Manufacturing Industry is considered to have a low
concentration
level. The four largest players in the sector are expected to account for around
only 6.9%
of industry revenue in 2010. The high labor intensity of most of the industry's
production
lends itself toward small operations. While large scale manufactures
operate in the
industry, developing countries also have a large number of
microenterprises that
manufacture footwear.
The top eight major players in the sector are expected to account for
about 8% of total
industry revenue. While industry concentration is considered to be low, based on
the top
four and eight companies, the overall footwear market is more
consolidated than other
apparel markets.
 Concentration within the industry has increased in recent years due to
mergers and
consolidation of industry participants. This trend is expected to continue in the
future. For
example, the major player in this industry, Yue Yuen, has absorbed
several footwear
manufacturing operations over the last year. The level of industry
concentration is
expected to increase in the next five years as firms merge or consolidate
operations.
GEOGRAPHICAL SPREAD
North Asia will be by far the largest footwear manufacturing region. In
2009, it is
estimated to have contributed 59.6% of world production and 53.4% of
employment in
the industry. China will be the largest producer in the Global Footwear
Manufacturing
Industry and manufactured approximately 7 billion pairs of shoes or an estimated
58% of

total world production. Taiwan and Korea were previously large regional
producers.
While many large footwear manufacturing companies have headquarters in
these
countries, nearly all of the manufacturing takes place in China.
South East Asia is expected to be the second-largest region in terms of
pairs produced,
making up about 13.3% of total production and 12% of employment. These
regions
included Vietnam, which has grown from about 542.6 million pairs produced in 2004
to
an estimated 964.8 million in 2009. Vietnam's emergence illustrates how China
itself has
become vulnerable to cut-rate competitors. This is in contrast to other
Asian economies
such as Thailand, which sought to align themselves with China. Countries
such as
Thailand and Indonesia are still significant manufacturers, although not to the
extent that
they were in the 1990s.

India and Central Asia should make up about 9.6% of world production
with India the
largest contributor and Turkey the second largest. Despite this, this region
still made up
about 19.8% of employment due to the large number of micro businesses
that are
involved in footwear manufacturing in India. The Indian industry has grown
considerably
over the last few years as larger levels of overseas investment from
US, Europe and
Taiwan has seen the country become a viable location for producing mid-priced
footwear
products. The large domestic market also gives India the potential to grow
considerably
from an estimated 7.4% of world production in 2009.
South America should make up 6.9% of world production and 5.5%
employment. The
Brazilian footwear industry is expected to be the main contributor in
2009 with about
6.5% of pairs produced and 4.9% of employment.
While some Eastern European regions such as Romania are growing, most
manufacturers in Western and Southern Europe have struggled to compete
against the
increasing level of import penetration from Asia. Europe is expected to
make 5.3% of

world production and 5.2% of employment in 2009. Italy is expected to

be largest
producer in Europe, contributing about 1.9% of total pairs produced, the
majority of
which are high- to medium- priced shoes. Many Italian companies have
changed their
business models and shifted production to other viable areas - some in
Eastern Europe,
others in China and some in India.
North American footwear manufacturing has declined substantially over the last ten
years
after years of offshoring and import penetration in the US. In 2009, it
represented only
about 2.5% of world production and 1.9% of employment. Mexico has also
been
struggling against import competition but still contributes about 1.9% of
world
production and 1.6% of employment. Growth in US manufacturing is likely
to occur in
niche markets as demand from middle-class consumers from developing nations such as
China and India grows.
DEMAND DETERMINANTS
Real household disposable income levels are an important demand factor
for footwear.
This factor can influence the quantity, quality and frequency of footwear
purchases. As
the level of real household disposable income increases, it can prompt greater
demand for
footwear. Accordingly, as real household disposable income declines, so
too does the
frequency at which consumers purchase discretionary items. This is also
related to the
price of footwear. If the price of clothing and other related goods increase at a
faster rate
than footwear, people will tend to purchase greater volumes of shoes.

Advertising and marketing of brand names are important ways for footwear producers
to
differentiate their products. Consumers are influenced by advertising and
brand image.
Improving these can lead to higher sales. Established products such as Nike, Adidas
and
high-end fashion brands, like Manolo Blahnik, Prada, DKNY and Gucci, can
limit the
effect of new footwear styles on the market as they hold such a large
portion of the
market. Greater spending on advertising is attributed to the power of
branding and the

larger the manufacturer the greater the success of creating a strong and
popular brand.
Fashion is also a form of differentiation and has influenced advertising
and marketing.
Fashion and social trends lead to changing demand for certain footwear styles in
the same
way that the popularity of sporting activities affects sales in athletic footwear.

The level of fitness awareness and the age of the population are social factors
that affect
demand. These affect the demand for particular types of shoes. For
example, with an
ageing population in some developed countries, the demand for walking
shoes may
gradually increase over sport shoes and school shoes. Seasonal factors
and weather
conditions also cause changes to demand conditions. Footwear sales vary
according to
seasonal and weather conditions around the world. For example, during the
cold winter
months, the sale of sandals will decrease and the sale of galoshes will increase.

Population growth is key driver in this industry. A higher global

population leads to
greater demand for consumer products, particularly for basic necessities
such as basic
footwear. This can lead to growth in the industry. The quality of
locally made shoes
compared to imports can also create changes in demand and consumer
perceptions,
especially for shoes categorized as discretionary purchases. Domestic
consumers may
prefer local products due to a sense of loyalty to local firms.
Consumers may also be
willing to pay more footwear made in certain countries, such as Italy,
over footwear
manufactured in developing countries.
INDUSTRY VOLATALITY
While revenue from footwear manufacturing changes from year to year, it
is a product
that most consumers in the world purchase. Growth is mainly driven by world
population
growth and GDP growth. The world's population will continue to grow in 2010,
despite
weaker global economic conditions. Because of this, revenue from footwear
manufacturing is still expected to grow.

Volatility can be created by fashion changes. These can fluctuate rapidly and are
difficult
to predict. A change in fashion can make footwear styles outdated and lead to poor
sales.
Changing fashion can also make some footwear more popular.
Styles of footwear and the popularity of different products may change,
but as long as
world population is growing, in the long term, revenue from footwear
manufacturing is
likely to continue to grow steadily.
Fluctuating competition from imports can create volatility. Import levels
vary as price
competitiveness relative to domestic footwear changes. This is also
influenced by
exchange rates and the presence of tariff restrictions and quotas.

TECHNOLOGY AND SYSTEMS

Technological advancement in the Global Footwear Manufacturing industry is deemed
to
be low. Much of the production is still very labor intensive as it comprises of
sewing and
cutting machines that still need to be operated with human intervention.
Internet technology has connected the world and is used to communicate
product
information globally. This has further internationalized global supply
chains in the
worldwide footwear manufacturing industry with companies operating in
various
international locations. For example, product design, strategy and
marketing are often
done in developed countries while manufacturing often takes place in
other parts of the
world. While this still took place before the advent of internet
technology, the speed of
conversion from footwear design to manufacturing has increased.
Most research surrounds the development of new material components and
improved
production procedures. The implementation of production cost saving
measures at all
levels is ongoing. Companies such as Adidas have recently made significant
progress to
increasing their speed to market, including taking 30 days out of the footwear
production
process.

10

Computerizing functions performed by machines, such as the introduction of

computerized stitching improved efficiency aided efficiency. Machines now perform
the
functions of "roughing", which is the removal of the top surface of
leather, which
previously required highly skilled labor. Injection molding (which enabled
mass
production of items such as synthetic soles and heels) and computerized cutting by
water
jets (to replace manual cutting processes) were both significant developments.
Tagless labeling technology is expected to allow for increased consumer
comfort,
branding opportunities, cost savings and security management. The garment
manufacturer or contractor can incorporate brand logos, anti-counterfeiting
tools,
barcodes and potentially radio-frequency identification (RFID) technology into
labels, in
one relatively simple process.
BASIS OF COMPETITION
Firms compete with each other on the basis of price, quality and
service. Price can be
construed to signify the quality of the product. A firm can gain an
advantage in the
market by providing good quality products at a reasonable price. The
main factor for
imported footwear having such a strong competitive position is that
generally, footwear
comes from low labor cost countries such as China, which allows
consumers in
developed nations to take purchase cheaper shoes. At the other end of the market is
high
quality footwear, which is usually sourced from Western European countries
such as
Italy, who are renowned for their high-quality inputs, such as leather and fabrics.
Product innovation is a significant differentiating factor. This is increasingly
becoming a
large competitive consideration for manufacturers. Design teams are
constantly creating
various ranges of new style footwear, which include added features such
as air pocket
soles for outdoor activity shoes. This product differentiation is
perceived as one of the
main factors on which consumers choose specific products, aside from price.

11

Apart from innovation, product branding is crucial to compete in this

industry.
Established brand names, such as Nike and Adidas, have created brand
image and
recognition through varying marketing activities. This has created a loyal consumer
base
and companies can use their market share to influence buying habits and
create greater
market strength. Similarly, up-market shoe manufacturers may serve a niche
market by
charging a high price for high-quality shoes that provide a certain image.
Further, a company that supplies retailers and fills orders in a timely
manner can also
gain a good reputation and achieve repeat orders. Developing or newly
developed
countries generally compete on their low labor costs. Apart from this, many of them
have
large domestic markets with growing middle classes that are experiencing
a rise in
spending power. Examples of such counties are China and India.

The competitive strengths of developed countries in the industry include: design

of shoes
and footwear; quality of material, particularly leather; brand strengths
associated with
quality and design; quality of product; and technological competence.
While the
technological competence of footwear manufacturers is stronger in the developed
world,
this is expected to be limited to a short time span with firms in
developing economies
increasing their use of similar technologies with some companies in China already
more
advanced.

12

OVERVIEW OF INDIAN FOOTWEAR INDUSTRY

Indian leather industry is the core strength of the Indian footwear industry.it is
the engine
of growth for the entire Indian leather industry and India is the
second largest global
producer of footwear after china.
Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor,
Clrks, Nike,
Rebook, Ecco, Deichmam, Elefanten, St Michaels, Hasley, Salamander and
Colehaan
are manufactured under license in india. Besides, many global retail
chains seeking
quality product at competitive prices are actively sourcing footwear from India.
While leather shoes and uppers are produced in medium to large-scale units, the
sandals
and chappals are produced in the household and cottage sector. The industry is
poised for
adopting the modern and state of-the art technology to suit the exacting
international
requirements and standards. India produces more of gent’s footwear while
the world’s
major production is the ladies footwear.in the case of chappals and
sandals, use of non-
leather material is prevalent in the domestic market.
Leather footwear exported from india are dress shoes, casuals, moccasins,
horrachies,
sandals, ballenrinas, boots. On-leather footwear exported from India are
shoes,sandals
and chappals made of rubber,plastic,P.V.C. and other materials.
With changing lifestyles and increasing affluence, domestic demand for
footwear is
projected to grow at a faster rate than has been seen. There are
already many new
domestic brands of footwear and many foreign brands such as Nike, Adidas
,Puma,
Reebok, Florsheim, Rockport, etc. have also been able to enter the market.
The footwear sector has matured from the level of manual footwear
manufacturing
methods to automated footwear manufacturing systems. Many units are equipped with
in-
house design studios incorporating state-of-the-art CAD systems’ having 3D shoe
design
packages that are intuitive and easy to use. Many Indian footwear
factories have also
acquired the ISO 9000, ISO 14000 as well as the SA 8000 certifications.
Excellent

13

facilities for physical and chemical testing exist with the laboratories having
tie-ups with
leading international agencies like SATRA, UK and PFI, Germany.
One of the major factors for success in niche international fashion markets is
the ability
to cater them with the latest designs, and in accordance with the latest trends.
India, has
gained international prominence in the area of colors & leather texture
forecasting
through its outstanding success in MODEEUROP Design and Retail information
is
regularly made available to footwear manufacturers to help them suitably
address the
season requirement.
The Indian footwear industry is gearing up to leverage its strengths towards
maximizing
benefits.
Strength of India in the footwear sector originates from its command on reliable
supply of
resources in the form of raw hides and skins, quality finished leather,
large installed
capacities for production of finished leather & footwear, large human
capital with
expertise and technology base, skilled manpower and relatively low cost
labor, proven
strength to produce footwear for global brand leaders and acquired
technology
competence, particularly for mid and high priced footwear segments.
Resource strength
of India in the form of materials and skilled manpower is a comparative
advantages for
the country.
The export targeted from 2007-08 to 2010-11 as tabulated below reflects
the fact that
footwear sectors is the most significant segment of the leather industry in India.
India has emerged in recent years as a relatively sophisticated low to
medium cost
supplier to world markets-the leather industry in India has been targeted
by the central
government as an engine for economic growth. Progressively, the government
has
prodded and legislated a reluctant industry to modernize. India was noted as a
supplier of
rawhides and skins semi proceeded leather and some shoes.

14
In 1970’s the government initially banned the export of raw hides and
skins, followed
this by limiting, then stopping the export of semi processed leather and
encouraging local
tanneries to manufacture finished leather themselves. Despite protestations
from the
industrialists, this has resulted in a market improvement in the shoe
manufacturing
industry. India is now a major supplier of leather footwear to world markets and
has the
potential to rival in the future (60% of Chinese exports are synthetic shoe).
India is often referred to as the sleeping giant in footwear terms. It
has an installed
capacity of 1,800 million pairs, second only to china. The bulk of production is in
men’s
leather shoes and leather uppers for men and ladies. It has over 100
fully mechanized
modern shoe making plants, as a good as anywhere in the world
(including Europe). It
makes for some upmarket brands including Florsheim (US), Lloyd (Germany),
Clarks
(UK), Marks and Spencer(UK).
India has had mixed fortunes in its recent export performance. In 2000, exports of
shoes
were US$ 651 million; in 2001 these increased to 663 million but declined in 2007
to 623
million dollars.
The main markets for Indian leather shoes are UK and USA, which between
them take
about 55% of total exports.
Indian has not yet reached full potential in terms of a world supplier. This is due
mainly
to local cow leather that although plentiful, has a maximum thickness of 1.4-1.6
mm, and
the socio/political/infrastructure of the country however, India is an excellent
supplier of
leather uppers. Importation of uppers from India does not infringe FTA with
Europe or
the USA.
The potential is set to change albeit slowly, but with a population rivalling china
for size,
there is no doubt the tussle for world domination in footwear supply is between
these two
countries.

15

FEW FACTS.
 the Indian footwear retail market is expected to grow at a CAGR of over 20% for
the period spanning from 2008 to 2011.
 footwear is expected to comprise about 60% of the total leather exports by
2011
from over 38% in 2006-07
 presently, the Indian footwear market is dominated by men’s footwear market that
accounts for nearly 58% of the total footwear retail market.
 by products, the Indian footwear market is dominated by casual
footwear market
that makes up for nearly two-third of the total footwear retail market.
 as footwear retailing in Indian remain focused on men’s shoes, there
exists a
plethora of opportunities in the exclusive ladies and kids footwear
segment with
no organized retailing chain having national presence in either of these
categories.
 the Indian footwear market scores over footwear market as it gives
benefits like
low cost of production, abundant raw material, and has huge consumption market.
 the footwear component industry also has enormous opportunity for
growth to
cater to increasing production of footwear of various types, both for
export and
domestic market.
There are nearly 4000 units engaged in manufacturing footwear in
India. The
industry is dominated by small scale units with the total production of
55%. The total
turnover of the footwear industry including leather and non-leather footwear is
estimated
at RS 8500-9500 crore(euro 5513-1723.1 million) including RS 1200-1400
crore (euro
217.6-253.9 million) in the household segment.
India’s share in global leather footwear imports is around 1.4% major competitors
in the
export market for leather footwear are china (14%), Spain (6%) and Italy (21%).
The footwear industry exist both in the traditional and modern sector.
While the
traditional sectors is spread throughout the country with pockets of
concentration
catering largely to the domestic market, the modern sector is largely
confined to select

16

center’s like Chennai, ambur, ranipet, agra , Kanpur and delhi with most
of their
production for export.
Assembly line production is organized, and about 90% of the work forces
in the
mechanized sector in south India consists of women. In fact, this sector
has opened up
plenty of employment opportunities for women who have no previous experience. They
are trained to perform a particular function ion in the factory itself.
17

VKC GROUP OF COMPANIES

“VKC group of companies are the leading footwear manufacture especially

in southern
region of India. The group established on (August17) 1984 with a nominal
capital and
few employees. In 1984 the founder of the group Mr. V.K.C. Mammed
Koya started a
Hawai Sheet manufacturing unit with his two brothers. Later on Hawai straps
were also
inducted to the production line and in 1986 VKC group launched the first product
with its
own brand name in the market viz. VKC Hawai with an initial production
of 600 pairs
per day. By 1989 the production increased to 5000 pairs a day and by 1996 it jumped
to
17000 pairs.

In between the founder initiated the floating of the first RPVC (Rigid Polyvinyl
Chloride)
footwear manufacturing unit in the Malabar Area of Kerala state with few of his
friends.
This product also got very good acceptance in the market. This resulted in a rapid
change
in the footwear industry itself. Within a few years the number of Rubber and RPVC
unit
grew to more than 80 in this area.

In 1994 the group ventured the first unit in Kerala to manufacture

footwear from virgin
PVC. This resulted in a drastic change and the multinational brands
confronted
competitions from the local brands. In 1998 the group started the first
Micro Cellular
PVC footwear in Kerala with the help of imported plant and machinery. “Quality at
low
price” made the VKC groups products popular in the market day by day.

In 2001 the group started the first Air Injected PVC DIP footwear manufacturing
unit in
the South India. In 2003 the group missioned the first Injected EVA manufacturing
unit
in South –Central India. In 2006 the group started backward integration to produce
EVA
compound for Injection and started the first EVA compounding plant in
the South –

18
Central India. The unit went in 2007 the group started manufacturing of
PU DIP
footwear.

During this period new bloods with technical, commercial and practical knowledge
were
inducted and now the group consists of 25 working Directors and 100
share holders
spread over 16 various units. And have annual group turnover of Rs.4000 million.
More
than 4000 employees are working in these units.
The company had achieved a prominent position in the footwear market of
India. The
main markets, which have been focused by the company are Kerala,
Tamilnadu
Karnataka, Madhya Pradesh, Gujarat, Andhra Pradesh. It has now expanded its market
in
countries such as Saudi Arabia, Dubai, Kuwait, Oman, Bahrain and Qatar.

The good quality and variety in models of VKC products help the companies to face
the
market competition positively. The company has been able to maintain the quality of
the
products by adopting foreign technologies. The group is now looking for further
avenues
in the field of footwear to stretch their hands.

Vision
To provide quality products to the customer at an affordable price.

Mission
To meet the market demand and to achieve a prominent position in the
Footwear
industry.

Motto
“Quality products at Affordable Price”
The Head Quarter of VKC group is in CALICUT and the main plants of VKC group of
companies are situated in Kerala and Tamilnadu.

19

VEEKESY GROUP COMPANIES:

1. M/s. VEEKESY RUBBER INDUSTRIES PVT.LTD.

2. M/s. VEEKESY ELASTOMERS PVT.LTD.
3. M/s. VEEKESY POLYMERS PVT.LTD.
4. M/s. SANDLON TECHNOLOGIES PVT.LTD.
5. M/s. FORTUNE ELASTOMERS PVT.LTD.
6. M/s. CALTECH POLYMERS PVT.LTD.
7. M/s. SLIPONS INDIA PVT.LTD
8. M/s. DIADORA SHOES PVTLTD.
9. M/s. DIMESCO FOOTCARE INDIA PVT LTD.
10. M/s. FERRARI SHOES (INDIA) PVT.LTD
11. M/s. VEEKESY FOOTCARE (INDIA) PVT. LTD
12. M/s. FERRERO VINYL TECHNOLOGIES PVT.LTD
13. M/s. MORBIDO VINYL PVT.LTD.
14. M/s. SMARTAK FOOTCARE PVT. LTD.
15. M/s. VKC FOOTSTEPS INDIA PVT.LTD
16. VKC FOOTPRINTS GLOBAL PVT LTD
17. VKC FOOTWEAR INTERNATIONAL PVT LTD
18. M/s VEEKESY SANDALS INDIA PVT LTD

20

COMPANY PROFILE OF M/s. VEEKESY POLYMERS PVT.LTD

M/s. Veekesy Polymers Pvt. Ltd. is registered as a private limited company and is
first of
its kind in South Central India for manufacturing of injected EVA
footwear’s. M/s.
Veekesy Polymers Pvt. Ltd. is one of the associate concerns of renowned VKC Group
of
Companies. The founder of M/s. Veekesy Polymers Pvt. Ltd. is Mr. V.K.C. MAMMED
KOYA. The company is situated at Ramanattukara, Kozhikode .

The Managing Director of the company is Mr. V. Rafeeque. He was awarded with Best
Entrepreneur of Kerala and Best Entrepreneur of Kozhikode district for the year
2003.

The Company has been able to achieve a landmark in the field of

footwear through the
continuous researches in footwear industry. The company manufactures “VKC
Lite”
brand footwear having EVA sole with PVC and synthetic leather upper. The
company
was incorporated in 01.01.1996 under the Companies Act 1956 and commenced
its
production on 13.04.1998. Now a day’s company produces EVA and PU footwears.

All affairs and day-to-day business administration of the firm is vested

in the hands of
Board of Directors. They are in charge of various functions pertaining
to Finance,
Production, HR, Marketing, Administration and Materials departments. The
board is
assisted by well qualified staff members. Each department has functional
heads, senior
and junior executive in order to support and help functional heads.

M/s. Veekesy Polymers Pvt. Ltd has a good market for their
product in Kerala, Tamil
Nadu, Andra Pradesh, Maharashtra, Chhattisgarh, Orissa, Gujarat because of the
quality
and the affordable price of the product. The management gives high priority to the
quality
of the product. The company assures the quality of the product through
the continuous
quality checking in each and every stages of the production process.

21

The quality of the VKC products is unrivalled in the market. The Footwear’s
introduced
by the company has been growing and evolving with the changing trends over the
year.
The company first manufactured “Senor Cinderella” brand footwear having
PVC sole
with leather and synthetic leather upper. Now the company is manufacturing VKC
Pride
and VKC Lite. VKC Pride is sold in Kerala, Tamil Nadu, Andra Pradesh,
Maharashtra,
Chhattisgarh, Orissa, Gujarat and VKC Lite in Kerala and Tamil Nadu
alone. In the
recent years the customers prefer the injected EVA Footwear’s rather than
any other
Footwear. We also export our products to Kuwait, Oman and Jiddah.

As we are manufacturers of footwear, we focus mainly on production

process of the
organization. The function of the production department is to produce our
products on
time, to the required quality levels, at the defined product cost. The
advantage of the
company is the implementation of Italian technology used for the
injection moulding
process. Molding process is the main activity and the key process of
manufacturing of
quality footwear. This will help the company to assure high quality with accurate
size and
good finish to the product. Of major concern to the production manager
is monthly
output. Production managers have monthly targets which they are expected
to strive to
meet or exceed. The annual production of EVA foot wears is 12 lakh and PU is 40
lakh.

The production department of M/s. Veekesy Polymers Pvt. Ltd comprises of

well
experienced staff members starting from functional head, department head,
coordinator,
supervisors, shift engineers, machine operators, pouring men and workers.
Production
department also aims at maintaining the quality of products been
produced. Every
employee is expected to take responsibility for managing quality issues in order to
make
sure that waste is minimized and quality maximized. Quality checking and
assurance is
carried out every day on a number of occasions to ensure that the
production process is
working efficiently and effectively.

22

We use different machines to produce footwear’s. The company purchases

footwear
molds from Taiwan, China, and Italy. This will help the company to assure high
quality
finished product.
Most of our machines are imported from abroad. It includes high EVA Injection
molding
Machine, Blender Machine, PVC Mixer, Cooling unit, Compressors, PVC
Injection
Maudling Machine, Generator, Clicker and Stitching Machine

M/s. Veekesy Polymers Pvt. Ltd has succeeded in withstanding stiff competition from
the
parallel manufactures because of the superior quality of their products
at reasonable
price.

Other than production and quality checking, production department performs

one more
function. That is packing of finished products into cartons. A set of workers are
assigned
to pack finished products into specified cartons or boxes according to
their name and
size. Before packing quality is again being checked by the workers.
After packing all
these cartons are sent to stock room for storing so that it can be
sent to dealers directly
according to the order placed.

23

PRODUCTION DEPARTMENT:
Production Process
EVA Compound
Synthetic Leather
PVC Raw Material
Cutting
Blending
Mixing
Injection Moulding Process
Injection Moulding Process
Stitching
Semi Finished Footwear
Show fitting & Riveting
Finishing
Finishing
Printing
Quality Checking
Assembling
Packing
Finished Footwear
Despatch

24

PACKING PROCESS

Trimming Process

Conveyor System

Upper & Sole Cleaning

Tag Fitting

Packing into Small Carton

Fixing Size & Price Sticker in

Small Carton
Packing into Master Carton

Final Check up in Pairs, Art No.,

Size & Price

Box Strapping

25

After production these products are being sold in the market according to the
orders taken
by marketing department. The marketing department studies the market and
the target
customers, decides the best way to reach these customers, and works with the rest
of the
company to help determine the new product needs of the market. We do
continuous
market research, which helps us in planning and executing marketing
strategies for the
future course of action. It also helps us in analyzing the buyer
habits, popularity of
product, and effectiveness of advertising media. It also helps to collect
information about
marketing problems and opportunities

The company executives are directly taking the orders from the
wholesalers. The
Company has very good system for the supply of the products to the
wholesalers. We
sent our products through parcel service to various dealers based on
their orders to
respective places and doesn’t have connection with any retailers. Our product
reaches the
hand of customers through retailers, who gets it from wholesalers.

We manufacture products on the basis of demographic segmentation. As a result, we

produce products aiming kids, youngsters, gents and ladies at affordable price with
high
quality. We produce footwear under the name VKC Lite and VKC Pride. VKC Pride is
used for exporting to foreign countries.
Slogan for VKC Pride is “Step into the World of Proud’ and for VKC Lite “Step into
the
World of Ecstasy. The Company treats advertising as the main mode of
marketing to
improve sales of our products. Ambassador of our product is Cine Actress
Meera
Jasmine. VKC’s Advertising covers all activities connected with giving
publicity
regarding goods and services offered for sale. The main Medias for
advertising are:
Indoor Media & Outdoor Media

26

Indoor Media includes TV Channels, News papers, Magazines, Catalogues,

Danglers,
Calendars, & Stickers. Advertisement of the products are given in all
the major TV
channels in Malayalam.
Outdoor Media includes Name boards, A boards and Hoardings.

Marketing and sales goes hand in hand. Sales promotion plays a major
role for the
success of the VKC products. Sales promotion influences the customers for
buying the
products and also helps to meet competition and helps in stimulating
demands. Sales
Promotion is carried out in two ways.
Consumer’s promotion and dealer promotion. Consumers promotion consists of
providing coupons, contest that we conduct and price offer for our various
products. For
dealers we conduct sales contest, give gifts, and turnover allowance based on the
amount
products been purchased from our firm. Company provides scheme called VKC
Sammanotsavam for dealers based on their purchase for that particular year.

The Company conducts the Wholesalers Meet at least once in a year. By

this the
company provides an opportunity to the wholesalers to interact with the
company and
between the dealers. This helps to find problems, sort out differences,
and to formulate
plans for future improvement in the market.
The adequate production, supply, good quality, affordable price of the
product, and the
various marketing techniques used by the company helps products to be a superior
one in
the market that satisfies the customer.

Human resource department of the organization caters to the need of both employees
and
workers of the organisation, resulting in a good relation between employees and
workers.
They are well satisfied with the attitude of the management towards them
and in the
facilities provided to them. So there are no labour strikes, absenteeism and
attrition. The

27

company provides excellent training programs for the employees to improve

the skills
and productivity with in a lesser time. The employees are getting the
statutory benefits
like Bonus, ESI scheme, Employees Provident Fund, Festival Holiday Allowances
from
the company. They are often given awareness class related to cleanliness,
health and
safety. Department heads also make visits to quarters were workers are staying in
order to
ensure cleanliness in their surroundings. HR department maintain a help desk in
order to
redress grievance of the workers and answer to their queries. There are
total of 214
workers in the organisation.

Finance is life blood of every organisation. It deals with procurement of funds and
their
effective utilisation in the business. Department has one department head,
one senior
executive and four junior executive. Their functions mainly include checking
daily cash
accounts, MIS preparation, bank reconciliation, central excise and export
related works,
finalisation of account statement etc.
M/s.Veekesy Polymers PVT. is financially stable and had got CRISIL A
+
rating. The
annual turnover of the organisation for the last financial year 2011-2012 is
48,72,59,360.
Materials department of the organisation place order according to need of material
that’s
used for production. Company follows EOQ system. Whenever they find that
it has
reached reorder level or safety stock, order is placed.
THE PRESENT BOARD OF DIRECTORS:

Mr. V. NOUSHAD (Chairman)

Mr. V. RAFEEQUE (Managing Director)
Mr. V. RAZAK (Director)
Mr. V. MAMMED KOYA (Director)
Mr. V. MUHAMMED KUTTY (Director)
Mr. V. MUHAMMED (Director)
Mr. M.GOPALAN (Director)

28

ORGANISATIONAL CHART
CHAIRMAN
DIRECTORS
MANAGER
ASSISTANT MANAGER
PRODUCTION
FINANCE
DEPARTMENT HEAD
PRODUCTION HEAD
EXECUTIVE
SUPERVISOR
COORDINATOR
SKILLED WORKERS
UNSKILLED WORKERS
JUNIOR EXECUTIVE
SALES
DEPARTMENT HEAD
EXECUTIVE
JUNIOR EXECUTIVE
MATERIALS
DEPARTMENT HEAD
EXECUTIVE
JUNIOR EXECUTIVE
JUNIOR EXECUTIVE
EXECUTIVE
DEPARTMENT HEAD
PERSONNEL
MANAGING DIRECTOR

29

Introduction To Brand Awareness and consumer buying behavior

Brand awareness is the extent to which the consumer associates the brand
with the
product that they wish to purchase. It is the brand recall and the brand
recognition of the
company to the consumers. Brand recall is the ability of the consumer
to recollect the
brand with reference to the product whereas brand recognition is the
potential of the
consumer to retrieve the past knowledge of the brand when enquired about the brand
or
shown an image of the brand logo. Brand awareness is an essential part
of brand
development which helps the brand to stand out from the others in this
monopolistically
competition.
The study of consumers helps firms and organizations improve their marketing
strategies
by understanding issues such as how consumers think, feel, reason and
select between
different alternatives .(e.g., brands, products)
The psychology of how the consumers is influenced by his or her
environment (e.g.,
culture, family, signs, media).How consumer motivation and decision
strategies differ
between products that are differ their level of importance or interest
that they entail for
the consumer: and how marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.

Importance of brand Awareness:

"Awareness, attitudes, and usage (AAU) metrics relate closely to what has
been called
the Hierarchy of Effects, an assumption that customers progress through sequential
stages
from lack of awareness, through initial purchase of a product, to brand loyalty."
In total,
these AAU metrics allow companies to track trends in customer knowledge and
attitudes.
Brand awareness plays a major role in a consumer’s buying decision
process. The
knowledge of an acquaintance or friend having used the product in the
past or a high
recognition of the product through constant advertisements and associations
coaxes the
person to make his decision in the favour of the brand.

30

The eventual goal of most businesses is to make profits and increase

sales. Businesses
intend to increase their consumer pool and encourage repeat purchases.
Apple is a
brilliant example of how there is a very high recognition of the brand
logo and high
anticipation of a new product being released by the company. An iPod is
the first thing
that pops into our minds when we think of purchasing an mp3 player.
iPod is used as a
replaceable noun to describe an mp3 player. Finally, high brand awareness
about a
product suggests that the brand is easily recognizable and accepted by
the market in a
way that the brand is differentiated from similar products and other
competitors. Brand
building also helps in improving brand loyalty
Types of Brand Awareness
Aided Awareness:
This type of awareness is generated in a consumer. When asked about a
product
category, if the consumer is aided with a list of company names and he
recognizes the
company from the given set it is categorized as aided awareness.
Top of the mind Awareness:
When the name of the company is automatically recollected because the consumer very
promptly associates the brand with the product category, it is called a top of the
mind
awareness of the product.
Brand:
Brand is the "name, term, design, symbol, or any other feature that identifies one
seller's
product distinct from those of other sellers. In accounting, a brand
defined as an
intangible asset is often the most valuable asset on a corporation's balance
sheet.
Private label:
Private label brands, also called own brands, or store brands have become popular.
Where
the retailer has a particularly strong identity this "own brand" may
be able to compete

31

against even the strongest brand leaders, and may outperform those products that
are not
otherwise strongly branded.
Multi Brands:
Alternatively, in a market that is fragmented amongst a number of brands a supplier
can
choose deliberately to launch totally new brands in apparent competition
with its own
existing strong brand (and often with identical product characteristics); simply to
soak up
some of the share of the market which will in any case go to minor brands.
Brand Name:
The brand name is quite often used interchangeably with "brand", although
it is more
correctly used to specifically denote written or spoken linguistic elements of any
product.
In this context a "brand name" constitutes a type of trademark if the
brand name
exclusively identifies the brand owner as the commercial source of products or
services.
Brand Parity:
Brand parity is the perception of the customers that some brands are
equivalent. This
means that shoppers will purchase within a group of accepted brands rather than
choosing
one specific brand. When brand parity is present, quality is often not
a major concern
because consumers believe that only minor quality differences exist.
Relationship Marketing:
Relationship marketing refers to a short-term arrangement where both the
buyer and
seller have an interest in providing a more satisfying exchange. This
approach tries to
disambiguiously transcend the simple post purchase-exchange process with a customer
to
make more truthful and richer contact by providing a more holistic,
personalised
purchase, and uses the experience to create stronger ties.

32

Guerrilla marketing:
It is an out of the ordinary way of marketing a product. Low-cost channels can be
utilised
to generate a high level of interest in the product and create brand awareness.
Utilisation
of personal contacts is the most popular way of guerrilla marketing. Product
Placement is
an advertising technique used by companies to subtly promote their
products through a
non-traditional advertising technique, usually through appearances in film,
television, or
other media.
Brand parity:
Brand parity is the perception of the customers that some brands are
equivalent. This
means that shoppers will purchase within a group of accepted brands rather than
choosing
one specific brand. When brand parity is present, quality is often not
a major concern
because consumers believe that only minor quality differences exist.
Brand equity:
Brand equity is a phrase used in the marketing industry which describes the
value of
having a well-known brand name, based on the idea that the owner of a
well-known
brand name can generate more money from products with that brand name
than from
products with a less well-known name, as consumers believe that a product with a
well-
known name is better than products with less well-known name.

33

STATEMENT OF PROBLEM
To study on brand awareness and customer buying behavior of VKC polymers ltd.
OBJECTIVES OF THE STUDY:
 To judge the awareness level of the prospect customer
 To know how they are aware regarding the product
 To judge in which way they have developed awareness
 To judge which promotional tool is effective to increase the awareness level
among the people
 To see whether brand awareness influences the buying behavior or not
 To know about the product awareness among the customer
 To know about which brand of VKC is most preferably used by customer
 To analyze customer view towards quality price of VKC products
 To know customer buying behavior

SCOPE OF THE STUDY

The study on brand awareness and consumer buying behavior of VKC has lot
of scope.
The reason ids these help to find out awareness level of the prospect
customer and
existing customer buying behavior of the people at the VKC product.
Research Design
The research design is conceptual structure within which research is conducted.it
is a plan
of action, a plan of collecting and analyzing data in economic,
efficient and relevant
manner.it contains the blue print for the collection, measurement
&analysis of data.The
proposed study is an exploratory cum descriptive.
A descriptive research is conducted with a random sample survey method
towards the
customers.

34

Sampling Design
Sample Size
The survey is conducted on 100 people who are selected randomly from within the
Kozhikode district of kerala.
Sampling Method
Sampling method used was simple random sampling. The information was collected from
respondents who were selected randomly.
Data Collection Tools

Primary Data
Questionnaires are the basis of collection of primary data. The
questionnaire was
distributed to students and information was obtained. In addition to the
questionnaire
personal interaction with students during market survey were made in order to
understand
their problems, knowledge towards the program, their preferences and other
useful
information.

Secondary Data
Some of the data were collected from the existing sources of information
which were
assessed due to availability of various other forms of data and
information. These data
served as the secondary data for the researcher. The sources of data
were company
websites. Theoretical information from significant text book was also used.

Questionnaire Design
Structured undisguised questionnaire was used in designing the questionnaire to
collect
the data from the respondents.

35

Statistical Design
The data collected has been tabulated and each respondent is categorized according
to the
data given and percentage is worked out of each group of data. The statistical
tools used
were tables, bar graphs and percent.

LIMITATIONS OF THE STUDY

 The analysis is based on customer’s opinion at the time of survey, suggestions
and
conclusions are based on limited data.
 Some customers are not willing to give proper response
 Due to different in language sometime I have to fill up the questionnaire
according
to the answer
 Some of the respondents were not cooperate they didn’t provide some of the
details

36

Graph showing number of respondents who heard about VKC brand before
receiving this questionnaire.

0
10
20
30
40
50
60
70
MALE FEMALE
Male 64
Female 36
TOTAL 100

37

Graph showing no of respondents who heard about VKC brand before receiving the
questionnaire .
Yes (heard) 100
No (not heard) 0
Total 100

0
20
40
60
80
100
120
YES NO

38

Table showing how respondents heard about brand VKC

NEWSPAPER 20
MAGAZINE 20
TELEVISION 36
HOARDINGS 14
FROM CUSTOMERS 10
TOTAL 100

INTREPRETATION:
The above chart shows how the customers heard about VKC brand. 36% of the
respondents heard through magazine followed by newspaper and television. Only 14%
of
the respondents came to know about VKC by hoardings . only 10 % respondents heard
through word of mouth or customers.

39

GRAPH SHOWING HOW RESPONDENTS HEARD ABOUT BRAND VKC

0
5
10
15
20
25
30
35
40
NEWSPAPER MAGAZINE TELEVISION HOARDINGS FROM CUSTOMERS
40

Table showing which brand of VKC are known by the respondents

VKC PRIDE 24
SLIPPONS 38
VKC LITE 22
VKC TRENDZ 6
SMARTAK 4
STYLE 6
JUNIOR 0
TOTAL 100

INTREPRETATION:
Out of the total respondents 38% of the respondents are aware about VKC brand
through
slippons, 24% knows VKC pride,22% knows VKC lite, only 6% of respondents are
aware about the brand VKC trendz and style . No one knows about the brand junior.

0
5
10
15
20
25
30
35
40
VKC PRIDE SLIPPONS VKC LITE VKC TRENDZ SMARTAK STYLE

41

Table showing rank the brands of VKC according to awareness

VKC PRIDE 36
VKC LITE 12
VKC JUNIOR 0
SLIPPONS 44
VKC STYLE 0
VKC TRENDZ 4
SMARTAK 4
TOTAL 100

INTREPRETATION:
The above chart shows the ranking of the brands of VKC according to awareness.44 %
of
the respondents ranks slippons as best ,followed by pride.

0
5
10
15
20
25
30
35
40
45
50
VKC PRIDE VKC LITE VKC JUNIOR SLIPPONS VKC STYLE VKC TRENDZ

42

Graph showing how many respondents know the celebrity who endroses VKC
brand.
YES 60
NO 40
TOTAL 100

INTREPRETATION
The above chart shows that 60% of the respondents know the celebrity who endorses
VKC brand and remaining 40% of the respondents do not know the celebrity who
endorses VKC brand.
0
10
20
30
40
50
60
70
YES NO

43

Graph showing whether celebrity play a role in purchase decision:

YES 12
NO 88
TOTAL 100

INTREPRETATION:
The above chart shows that only 12% of the respondents feel that celebrity play a
role in
purchase decision. But 88% of the respondents feel that celebrity does not play
a role in
your decision.

0
10
20
30
40
50
60
70
80
90
100
YES NO
44

Table showing criteria for buying footwear

BRAND IMAGE 20
PRICE 12
RETAILER RECOMMENDATION 4
STYLE AND COMFORT 36
ADVERTISEMENT 0
QUALITY 28
TOTAL 100

INTREPRETATION
The above chart shows that 36% of the respondents buy footwear on the basis of
style
and comfort. 28% of the respondents buy footwear the basis of quality. 20% of the
respondents buy footwear on the basis of brand image. Retailer recommendation is
only
4%.The above chart shows no one buy footwear on the basis of advertisement.

0
5
10
15
20
25
30
35
40

45

Table showing the rating of quality of VKC products as a factor for buying footwear
VERY HIGH 16
HIGH 45
AVERAGE 25
LOW 5
VERY LOW 9
TOTAL 100

INTREPRETATION
The above chart shows the customer opinion about the quality of VKC products as a
factor for buying footwear. Most of the respondents rate the quality of the product
is
high. Only 9% of the respondents says that the quality as very low.

0
5
10
15
20
25
30
35
40
45
50
VERY HIGH HIGH AVERAGE LOW VERY LOW
46

Table showing how much customers spent to buy footwear

BELOW RS 200 8
RS 200 TO RS 300 76
ABOVE RS 300 16
TOTAL 100

INTREPRETATION
The above chart shows 76% of the customers spent between RS 200 to RS 300 to buy
footwear. Only 8% respondents buy footwear less than 200. 16% of the respondents
spent above 300 rupees to buy footwear.

0
10
20
30
40
50
60
70
80
BELOW RS 200 RS200 TO RS 300 ABOVE RS 300

47

Table showing how respondents rate pricing as a criterion for buying footwear.
VERY HIGH 8
HIGH 33
AVERAGE 49
LOW 5
VERY LOW 5
TOTAL 100

INTREPRETATION
The above chart shows how the respondents rate pricing as a criterion for buying
footwear. 49% of the respondents rate the pricing as a criterion for buying
footwear as
average.

0
10
20
30
40
50
60
VERY HIGH HIGH AVERAGE LOW VERY LOW

48

Table showing why customers consider VKC product over others for purchase

BEST QUALITY 22
BEST PRICING 42
BEST MODEL 9
COMFORT 27
TOTAL 100

INTREPRETATION
The above chart shows why customer consider VKC product over others for purchase.
42% of the customer consider VKC as best pricing ,27% as comfort, 22% as best
quality
but only 9 % consider VKC product as best model.

0
5
10
15
20
25
30
35
40
45
BEST QUALITY BEST PRICING BEST MODEL COMFORT

49

Table showing satisfaction level with VKC brand

VERY HIGH 3
HIGH 32
AVERAGE 64
LOW 1
VERY LOW 0
TOTAL 100

INTREPRETATION
The above chart shows the satisfaction level of the customers towards VKC brand.
About
64% of respondents satisfaction level is average ,3% customers satisfaction level
is very
high,32 % is high only 1% of the customers satisfaction level is low.

0
10
20
30
40
50
60
70
VERY HIGH HIGH AVERAGE LOW VERY LOW

50

CHAPTER 6

FINDINGS
 Customers consider style and comfort as the most important factor while buying
any footwear.
 From this study I found out main promotional source is television.
 It is found that most of the customers are willing to pay RS 200 to 300Rs for
footwear.
 It was found that most of the customers are aware of VKC through television.
 It is found that VKC has good customer base.
 The study revealed that the customer prefer VKC footwear because of best
pricing.
 It is found that style and comfort is the criteria for buying footwear for
majority of
the customers.
 Most of the respondents are aware of the brand slippons
 Majority of the customers says that celebrity does not play a role in their
purchase decision.

51

CHAPTER 7
SUGGESTIONS
 Introduce products that catch youngster’s attention.
 Introduce more varieties
 Introduce casuals and sport shoes.
 Make more attractive advertisement
 Increase the size range
 More attractive and updated website can be developed.

52

CHAPTER 8

CONCLUSION
The privileged opportunity of doing the market study proved to be highly
beneficial. The
project titled “A study on brand awareness and customer buying behavior of VKC “
was
an attempt to study and to make suggestion to improve market share of the company.
From the study, I observed that most of the customers are satisfied with VKC brand
and
the level of services provided by the company and also they show a
high satisfied with
the good quality, affordable price, styles etc. of products provide
better market to this
company. The brand name and their services, experience and expertise etc. will
lead the
company to be the best in its markets. The brand name VKC is becoming more and more
acceptable in the minds of people in all levels of the society. VKC
products are giving
value for money to the customers. I wish all the success in future also.
53

BIBLIOGRAPHY
Textbooks:
 Marketing management by Philip Kotler
(Eleventh edition, published by pearson education ltd)
Internet facilities:
 www.veekesy.com
 www.wikipedia.com