Annexure-V- Cover Page for Academic Tasks

Course Code: MKT 509 Course Title : Consumer Behavior

Course Instructor: Dr. Prashant Chauhan

Academic Task No.: 02 Academic Task Title: Assignment

Date of Allotment: 17th March 2020 Date of submission: 28 th March 2020

Student’s Roll no: 28 Student’s Reg. no: 11909565

Evaluation Parameters:

Learning Outcomes: Understanding the scenario of the case study.

Declaration:

I declare that this Assignment is our individual work. I have not copied it from any other student’s
work or from any other source except where due acknowledgement is made explicitly in the text,
nor has any part been written for me by any other person.

Student signature:
Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: Max. Marks: ………………

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 INTRODUCTION

Freitag is an innovative Swiss firm known for making bags made from recycled
materials. The commodity they sell is eco-at 100 per cent. Its production is based
on recycled materials which provide the peculiar characteristics and appearance
(truck tarps, seatbelts). The company produces about 300,000 goods annually using
300 tons of truck tarpaulins, 15,000 inner tubes for bicycles and 130,000 Annual
vehicle seatbelts.

Both the products style / design and recycling are very important to them, it is the
product's worth. The company's creative spirit plays a significant part, from
creating the first bag to meeting a need, to exploring new materials and creating
progress in terms of "sustainability" of those.

The idea came from Markus and Daniel Freitag who were two brothers of graphic
designers who faced a problem at Zuric,1993. The problem was that their designs
got wet while they were implementing their designs by bike and storm. They need
to figure out some fabrics that were robust, durable and water-repellent enough to
make a bag they could fit their designs into.

We have finally come up with an idea. They wonder what the lorries ' tarpaulins
were used for until they were out of use and they figured their new bags could be
made from recycled tarpaulins and adorned with some other item they had in hand
as a second hand car seat belt or other complements. So, they find the concept of

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using recycled products to be a mixture Somewhere between significance and
chance.

Growing up in a green-minded environment made recycled materials appeal to the

Freitag brothers and decreased car use. Such principles are seen in Freitag's
product made of recycled materials for people who do not drive automobiles. The
main idea was to make wastage something useful. The recycling makes it special
and people willing to pay a premium price for a green personality. Apart from
recycling, one of the things differentiates Freitag from competitors is its production
process.

1. Obtaining raw material

It is not an easy task to obtain the principal raw material used by Freitag. The
organization has a team of five people known as truck spotters who are solely
committed to the relentless search of this content from various parts of Europe to
get 300 tons of truck consumed annually. We concentrate not only on the amount
but also on the consistency that shows great interest in the range of colours.

2. Cutting the tarps

The next move is to cut the tarps into rectangular 7.8-foot pieces, tie them together
and send them off for washing and disinfection to the Laundry Department. This
research is done by workers with great physical quality due to the material
dimension which needs a great deal.

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3. Cleaning
Once the material reaches the Laundry Department starts the transformation
process of the material from used into patina and old into vintage using 3963
gallons of rainwater daily along with a tarp-wash bath additive. Once dry, the tarps
are sent to the designers.

4. Bag design
Unlike their competitors, Freitag designed manually various models of bags that
should be manufactured. Giving way to creative work, designers have achieved
exclusivity thanks to the traditional process.

5. Sewing
Only prototypes and test bags are sewn at the Factory. The last part of the process
its externalized to other partners from countries like Switzerland, France, Bulgaria,
among others. Still, after receiving the goods it is reviewed by Freitag staff adding
the finishing touches. Once ready, the product is shipped to the various outlets.

Ethical Challenges addressed by the Company:

When we talk about ethical challenges, ethical and business conflicts, Freitag
presents a less common way of meeting these goals.

The mixture of intent and coincidence required this company to find that the truck
tarpaulin was the most suitable material for their backpacks. Development based
on recycled material, an environmental problem that involuntarily becomes its
mark of identification.

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The business has identified an evolution; production based on the reuse of
materials has created a need, a sustainable practice that places interest in the social
and ecological effects.

Freitag has different types of goods, distinguished by the materials produced. For
example, they use natural fibers which are 100% compostable for their clothing.
These materials are part of a closed biological loop, which ensures that they can be
used many often until such materials are used. On the other side, while they have
been recycled, the materials they used for their bags are not part of the closed
biological cycle because when bags are no longer usable their materials are no
longer useful.

He founders saw an opportunity to produce their own textiles by sustainably

produced and compostable materials manufactured in Europe, F-ABRIC, to solve
this issue.

Therefore, the journey from fiber to finished product is just a short trip for F-
ABRIC. Therefore, all the materials used in this line are grown on European soil
and do not damage it or involve excessive water production. Owing to low
percentage of the chemical used during the production and further processing of
the product, clothing is safe and has been tested for several months to demonstrate
its durability, comfort and other qualities. The textiles are 100% naturally
biodegradable like threads and sewerage, this makes a piece of clothing fertile soil
for new raw materials and the process continues.

Therefore, Freitag uses a small quantity of chemicals during the production of all
its goods, which is why they do not bleach the materials and use reactive dyeing
colours. The finished product is tested for babies and infants.
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Future challenges and resolutions:

After looking at their online store, we may understand that their prices are very
small, which means that if prices are expensive their goods are addressed only to
segmented population, those whose buying power is small as well. So if Freitag's
goal is to make people aware of social responsibility and sustainability they should
lower prices and change them to a standard purchasing power. If prices remain
high, those segments of the population that are unable to afford them will simply
disregard their goods and will not be told about the use of recycled materials nor
will they increase their awareness of sustainability.

The

fact that bags are a phenomenon among young university students in the early
days of the business may have led to the education of society that indirectly
conveys sustainability values such as environmental safety, recycling...

The organization should use this approach to promote the use of recycled goods in
society, setting up an initiative to raise awareness of the scarcity of resources and
actively engage in the quest for sustainable alternatives.

Another challenge to give Freitag commitment to social responsibility and

sustainability of their goods, the business will also find ways to turn their materials
into other new products in the end of life, just like their bags. They might seek to
build a recovery plan to ensure that all goods that are not 100 percent
biodegradable continue.