Chapter-1: INTRODUCTION

1.1 INTRODUCTION OF FINANCIAL STATEMENTS:

Financial statements are reports prepared by a company’s management to present the

financial performance and position at a point in time. Financial accounting and reporting
places such a high emphasis on the accuracy, reliability, and relevance of the information
on these financial statements as financial statements are the main source of financial
information for decision making. In other words, financial statements are written formal
records that convey the financial activities and conditions of a business or entity. Financial
statements should be clear and concise so that it should be understandable for both the
entity and for readers.

It consists of four major components for businesses usually include Income Statements,
Balance sheets, Statement of Retained Earnings, and Cash flows. It may also require
additional detailed disclosures depending on the relevant accounting framework.

These statements are prepared to give outsiders of the company that is investors and
creditors, more information about the company’s financial positions. These statements are
often audited by governments agencies, accountants, firms, etc. to ensure accuracy, and for
tax, financing or investing purposes.

Financial statements record financial data, which must be evaluated through financial
statement analysis to become more useful to investors, shareholders, managers, and other
interested parties. These statements allow analysts to measure liquidity, profitability,
company-wide efficiency, and cash flow.
• • There are three main types of financial statements:

BALANCE SHEET

INCOME STATEMENT

CASH FLOW STATEMENT

BALANCE SHEET:

The balance sheet provides an overview of assets, liabilities, and stockholders’ equity as a
snapshot in time. The date at the top of the balance sheet tells you when the snapshot was
taken, which is generally the end of the financial year. The balance sheet equation,
otherwise known as the accounting equation, can be expressed as Assets= Liabilities+
Stockholders’ Equity. The balance sheet identifies how assets are funded, either with
liabilities, such as debt, or stockholders’ equity, such as retained earnings and additional
paid in capital. Assets are listed on the balance sheet in order of liquidity. Liabilities are
listed in the order in which they will be paid. Short term or current liabilities are expected
to be paid within the year, while long-term or noncurrent liabilities are debts expected to be
paid in over one year. In simple terms, Balance sheet is a picture of the company on that
date. Investors and creditors can use the balance sheet to analyze how companies are
funding capital assets and operations as well as current investor information.

INCOME STATEMENT:

Also known as profit or loss report Or statement of comprehensive income, Or statement of

revenue and expenses report. A profit and loss statement provides information on the
operation of the enterprise. These include sales and the various expenses incurred during
the stated period. Unlike the balance sheet, the income statement covers a range of time,
which is a year for annual financial statements and a quarter for quarterly financial
statements. The income statement provides an overview of revenues, expenses, net income
and earnings per share. It usually provides two to three years of data for comparison. Most
companies issue annual income statement, but quarterly and semi-annual income
statements are also common. Users can analyse the income statement to see if companies
are operating efficiently and producing enough profit to fund their current operations and
growth. The statement of owner’s capital summarizes all owner investments and
withdrawals from the company during a period. It also reports the current income or loss
recorded in retained earnings.
CASH FLOW STATEMENT:

The cash flow statement provides an overview of company’s cash flows from operating
activities, investing activities, and financing activities. The cash flow statement merges the
balance sheet and the income statement. Due to accounting convention, net income can fall
out of alignment with cash flow. The cash flow statement reconciles the income statement
with the balance sheet in three major business activities. These activities include operating,
investing and financing activities. Operating activities include cash flows made from
regular business operations. Investing activities include cash flows from the acquisition and
disposition of assets, such as real estate and equipment. Financing activities include cash
flows from debt and equity investment capital.
1.2 INTRODUCTION OF FINANCIAL STATEMENT ANALYSIS:

FINANCIAL STATEMENT ANALYSIS: Financial statement analysis (or

financial analysis) is the process of reviewing and analysing a company's financial
statements to make better economic decisions. These statements include the income
statement, balance sheet, statement of cash flows, and a statement of changes in equity.
Financial statement analysis is a method or process involving specific techniques for
evaluating risks, performance, financial health, and future prospects of an organization.
Financial statement analysis is an evaluative method of determining the past, current, and
projected performance of a company. Several techniques are commonly used as part of
financial statement analysis including horizontal analysis, which compares two or more
years of financial data in both dollar and percentage form; vertical analysis, in which each
category of accounts on the balance sheet is shown as a percentage of the total account; and
ratio analysis, which calculates statistical relationships between data.

In other words financial statement analysis is a study of relationship among various factors
in a business as disclosed by financial statements of a firm. The analysis show the trend of
the factors and will help in evaluation of component parts. Analysis of financial statement
is to obtain better insight into a firm’s position and performance.

The different TYPES OF ANALYSIS OF FINANCIAL STATEMENTS

are:

▪EXTERNAL ANALYSIS: done by outsiders.

▪INTERNAL ANALYSIS: done by insiders who have access to financial records.

▪HORIZONTAL ANALYSIS: done for several years simultaneously. It is done to find
trend ratios and comparative financial statements.
▪VERTICAL ANALYSIS: it is the study of quantitative relationship between data in the
same financial statement. Common size statements and ratio analysis.
▪LONG-TERM: it is taken-up to determine if the earning capacity of the firm is sufficient
to meet the targeted rate of return on investment, and is adequate for future growth and
expansion of business.
▪SHORT-TERM: it is done to determine the liquidity position of the firm and short-term
solvency of the firm.
 INTRODUCTION TO BATA
INDIA

Bata India is the largest retailer and leading manufacturer of footwear in

India and is a part of the Bata Shoe Organization.

Incorporated as Bata Shoe Company Private Limited in 1931, the company

was set up initially as a small operation in Konnagar (near Calcutta) in
1932. In January 1934, the foundation stone for the first building of Bata’s
operation - now called the Bata. In the years that followed, the overall site
was doubled in area. This township is popularly known as Batanagar. It
was also the first manufacturing facility in the Indian shoe industry to
receive the ISO: 9001 certification.

The Company went public in 1973 when it changed its name to Bata India
Limited. Today, Bata India has established itself as India’s largest
footwear retailer. Its retail network of over 1375 stores gives it a reach /
coverage that no other footwear company can match. The stores are
present in good locations and can be found in all the metros, mini-metros
and towns.

Bata’s smart looking new stores supported by a range of better quality

products are aimed at offering a superior shopping experience to its
customers.

The Company also operates a large non retail distribution network through
its urban wholesale division and caters to millions of customers through
over 30,000 dealers
 HISTORY OF BATA INDIA

Bata India Ltd is the largest footwear retailer and the leader in the footwear
industry in India. The company is engaged in the business of
manufacturing and trading of footwear and accessories through their retail
and wholesale network. Their products include leather footwear
rubber/canvas footwear and plastic footwear. They are having their
production facilities at Batanagar in West Bengal Patna and Hathidah in
Bihar Faridabad in Haryana Bangalore in Karnataka and Hosur in
Tamilnadu. Their wholly owned subsidiaries include Bata Properties Ltd
Coastal Commercial & Exim Ltd. and Way Finders Brands Limited.Bata
India Ltd was incorporated in the year 1931 as Bata Shoe Company Pvt
Ltd in Konngar West Bengal which was then shifted to Batanagar.
Batanagar was the first manufacturing facility in the Indian shoe industry
to receive the ISO 9001 certification. The company went public in 1973.
They changed their name to Bata India Ltd. Over the years the company
has established a leadership position in the footwear industry and is easily
the most trusted name in branded footwear.The company has entered into
an agreement with Bata Ltd of Toronto Canada for supply of technical
know-how and services such as Footwear technology and design brand
development product development retailing and information systems for a
period of ten years from January 1 2001.The company bagged the Retailer
of the year award for the year 2006 in the footwear category as a part of the
Reid and Taylor Award for Retail Excellence which was presented during
the Indian Retail Summit 2006. They received the country's most coveted
Retail Award at the 4th Images Retail Awards (IRA) 2007.The company
was honoured with Most Admired Brand of the year 2006-07 in Footwear
category. They were rated as one of the Top 10 super brands in India and
awarded Super Brands Award on April 12 2007. In February 21 2008 they
were given AMITY Corporate Excellence Award 2008. This award was
given for Bata's excellent performance and retail growth during 2007.The
company entered into a joint development agreement with Calcutta
Metropolitan Group Ltd for developing around 262 acres of land in
Batanagar. The company formed a special purpose vehicle called
Riverbank Holdings Pvt Ltd. The development of 262 acres was split into
two parts IT SEZ for 25 acres developed by Riverbank Holdings Pvt Ltd
and the remaining 237 acres will be done by the new company Riverbank
Developers Pvt Ltd.In the year 2009 the company opened 69 new Bata
stores which are all in large format with an average of over 3000 square
feet. They also renovated 40 existing stores and closed down 73 stores
which were in small format and unviable. In the year 2010 the company
won the 'Consumer Awards 2010' as 'India's Most Preferred Retailer' given
by CNBC Awaaz. The company opened 108 new large format stores
across all major towns in India. Bata India renewed its Technical
Collaboration Agreement with Global Footwear Services Pte. Ltd.
Singapore (GFS) with effect from 1 January 2011 for a period of ten years.
In terms of the said Technical Collaboration Agreement Bata India
receives guidance training of personnel and services from GFS in
connection with research & development marketing brand development
footwear technology testing & quality control store location layout &
design environment health & safety risk & insurance management etc.
Recognizing needs of the young consumers Bata India created new retail
concept - Footin in the year 2012. It is a new business model with a
different approach to cater to the young customers who are style conscious
and trend-savvy shoppers and need quality merchandise at affordable
price.Bata India changed the financial year from January-December to
April-March and extended the financial year to 31 March 2015 covering a
period of fifteen months. During the period under review due to certain
unexpected problems with the implementation of new supply chain IT
systems the retail stores of the company could not be supplied with
adequate stocks of footwear and accessories. As a result the company's
performance for the fourth and fifth quarter in 2014-15 was adversely
affected. In order to improve volume and profitability the company took
various steps during the period under review i.e. initiatives to achieve same
store growth investment behind new channels and stores cost control and
manpower rationalization. During the period under review Bata India
continued its modernization plans at its Manufacturing Units at Batanagar -
West Bengal Bataganj - Bihar and Southcan - Karnataka. The
modernization plans implemented in these Manufacturing Units have
improved quality of the products and also increased productivity.During
the fifteen month period ended 31 March 2015 Bata India opened 159 new
retail stores across India. The new stores are larger in size and are based on
global design making them look complete and enticing with adequate
space to display the products. The year 2014-15 was a milestone year for
Bata India's premium footwear brand Hush Puppies as it completed 20
years of its existence in India. During the period under review Hush
Puppies endeavoured to re-position itself as a new International Premium
Lifestyle Casual Footwear brand.During the period under review Bata
India further strengthened its customer care division. Following a
successful pilot a customer loyalty program viz. 'The Bata Club' has been
introduced at major metro cities.During the period under review Bata India
entered into Long Term Agreements with several Trade Unions.As
mutually agreed inter alia between Riverbank Developers Private Limited
(RDPL) and Bata India vide New Development Agreement dated 28 April
2010 read with Addendum Agreement dated 5 December 2013 Bata India
received approx. 136955 sq. ft. of constructed space in the Integrated
Township Project at Batanagar West Bengal during the 15 month period
ended 31 March 2015.Bata India formed a new wholly owned subsidiary
viz. Way Finders Brands Limited on 26 December 2014. Bata India had to
overcome the unexpected challenges in implementation of new supply
chain IT system which led to disruption and delay in supply of footwear
from the factories and warehouses to the retail stores during the beginning
of the financial year 2015-16 impacting the volume offootwear sold and
also loss of market share. During the year under review the company took
several corrective measures in order to overcome such challenges
including focus on same store growth replenishment of stock in retail
stores based on store requirement/sales liquidating inventory level through
various schemes and also cost reduction initiatives. As a result the
company started registering volume growth from the third quarter of the
financial year 2015-16. In 2015-16 Bata India introduced various new
designs of footwear which are contemporary stylish and also affordable.
Modernization of the factories and manufacturing processes of the
company continued during the year under review. During the year under
review Bata India opened 26 new retail stores across India. The new stores
are larger in size and are based on global design making them look
complete and enticing with adequate space to display the products. The
company's online business grew well during the year under review. The
company sold more than 3.8 lacs pairs of footwear through online
channels.During the year under review Bata India's e-commerce division
mainly focused on increasing its customer database by reaching out to new
set of target audience and also establishing successful association with
many reputed companies and banks e.g. HDFC Bank Standard Chartered
Bank State Bank of India Deutsche Bank Samsung SpiceJet Airlines etc.
Such alliances helped the company increase its brand awareness and
customer database. The company's products continued to be sold through
its partners' websites including Amazon Myntra Jabong Flipkart etc.The
year 2015-16 was a milestone year for the company's international
premium brand Hush Puppies as the company sold over a million pair of
the brand in the year 2015 itself. During the year under review Hush
Puppies embarked on a journey of re-positioning itself as an International
Premium Lifestyle Casual Footwear brand.During the year under review
Bata India introduced its customer loyalty program viz. `The Bata Club' in
more than 800 retail stores across 47 cities in India. These Club members
are communicated on priority about various new marketing offers and
promotions as and when planned by the company.During the year under
review Bata India strengthened its urban wholesale business monitoring
team and efforts are being made to increase its market share in the
wholesale footwear business.Pursuant to approval of the shareholders
obtained at the Eighty Second Annual General Meeting Bata India sub-
divided the face value of its equity shares of Rs. 10/- each fully paid-up
into two equity shares of Rs. 5/- each fully paid-up. The company had
fixed 8 October 2015 as the Record Date for the purpose of ascertaining
the eligible shareholders for receiving the aforesaid sub-divided equity
shares.During the year under review Bata India amicably settled its
protracted litigations with Relaxo Footwear Limited relating to `SPARX'
Trademark. Necessary consent terms have been filed with the appropriate
Trademarks Authorities and before the Delhi High Court. As mutually
agreed inter alia between Riverbank Developers Private Limited (RDPL)
and Bata India vide New Development Agreement dated 28 April 2010
read with Addendum Agreement dated 5 December 2013 Bata India took
possession of the remaining 195075 sq. ft. of constructed space in the
Integrated Township Project at Batanagar West Bengal during the year
under review. Accordingly RDPL's obligation to handover 332030 sq. ft.
of constructed space to Bata India has been completed.During the year
under review Bata India entered into long term agreements with its
Workers' Unions at its manufacturing units. During the year your company
successfully negotiated Long Term Settlements with the Workers' Union at
Bataganj and with the Shop Employees' Union.Bata India incurred capital
expenditure amounting to Rs.794.41 million in 2015-16 as compared to
Rs.1538.77 million during the fifteen month period ended 31 March
2015.During the financial year ended 31 March 2017 Bata India
endeavored to maintain its stature as the leading footwear brand of choice
with an added focus to tap the fashion conscious youth working women
and children through introduction of newer and trendier styles of footwear
and has also launched premium collections of footwear for men and
women. During the year under review the company opened 100 new retail
stores and 23 franchised stores across India. These specious new stores are
located in untapped and developing markets of the Country and are based
on global design making them look enticing with contemporary display of
the products.The company's online business registered good growth during
the year under review. The company sold more than 6.3 lacs pairs of
footwear through online channels during the year. The year 2016-17 saw
various new initiatives for Hush Puppies - the company's international
brand known for comfort quality and style. Launching of new 'Signature
Collection' across its exclusive stores marking a new tradition of
contemporary and fashionable shoes for the new younger generation etc.
were the major highlights for the brand. During the year under review
Hush Puppies continued to strongly re-position itself as an International
Premium Lifestyle Casual Footwear brand.Bata India incurred capital
aggregating Rs.386.8 million in 2016-17 as compared to Rs.488.1 million
(excluding Rs.306.3 million on account of the receipt of constructed space
under the erstwhile joint venture project at Batanagar) during the previous
year ended 31 March 2016.During the year under review Bata India
executed Long Term Agreements (LTAs) for settlements of dues with the
Worker's Union at the manufacturing units of the company at Southcan
Bangalore and BataShatak at Hosur Tamil Nadu. During the year under
review the company successfully implemented a Voluntary Retirement
Scheme (VRS) for workers at its manufacturing unit at Faridabad Haryana
wherein all the 170 workers accepted the VRS and operations at Faridabad
unit were discontinued since December 2016.During the financial year
ended 31 March 2018 Bata India carefully re-engineered key touch points
in the consumer journey thereby stepping up the focus on Visual
Merchandising via breath taking store windows curating a shopping
conducive playlist for instore music refreshing the store decor to highlight
different brands / features and employing trained stylists to better serve
customer at the company's top stores in Metro's and to be gradually
extended across all stores. With a view to bring back the swagger to Bata
the company launched its internationally developed 'Red Angela Store
Concept' in Kolkata and Delhi. This concept is aesthetically designed and
offers clutter-free shopping experience through merchandise focal points
(in red & white) and exudes a premium look that adds up to a 'wow' feel.
During the year under review Bata India added over 100 new retail stores
31 franchisee stores & renovated more than 90 stores across India. The
company opened the first Bata Women Store in India in Bengaluru
focussed on catering to footwear & accessories needs of woman
consumers.During the year under review the company's e-commerce
division worked on opportunities to diversify brand reach in the existing
online business models. The company further continued to strengthen its
online customer database by reaching out to the leading telecom airline and
banking players in association with affiliated partners. Various market
expansion strategies were put in place like increase of brand presence
through marketplace model by listing products on high-traffic generating
websites including TataCliq ShopClues GoFynd and Limeroad. The
company's e-commerce website www.bata.in migrated to a secure AWS
server for enhanced performance that includes features like auto scaling
and elastic load balancing.The financial year 2017-18 saw various new
initiatives for Hush Puppies - Bata India's international brand known for
comfort quality and style. Launching of new `Signature Collection' across
its exclusive stores marking a new tradition of contemporary and
fashionable shoes for the new younger generation etc. were the major
highlights for the brand.Bata India incurred capital expenditure of Rs.
930.77 million in 2017-18 as compared to Rs. 386.79 million in the
previous year.During the year under review the company executed Long
Term Agreement (LTA) for settlement of dues with the Worker's Union at
the manufacturing units of the company at Batanagar Kolkata.The
company spent towards Capital Expenditure(CAPEX) during the FY2019
amounting to Rs. 911.96 Million as compared to Rs. 930.77 Million in the
previous year.The Capital Expenditure incurred during the FY2020
amounted to Rs. 899.23 Million as compared to Rs. 911.96 Million in the
previous year.In view of the lockdown across the country due to the
COVID-19 the Company suspended the operations in all the units in
compliance with the lockdown instructions as issued by the Central and
State governments. COVID-19 has impacted the normal business by way
of interruption in Store operations supply chain disruption unavailability of
personnel closure/lockdown of production facilities etc. during the
lockdown period. The business operations were suspended since 24th
March 2020 in compliance with the directives issued by the relevant
authorities. However during the later part of the quarter ended 30 June
2020 most of the Company's stores have resumed operations partially in
piecemeal in accordance with Government guidelines and
directives.During the Quarter ended 30th September 2020 the subsidiaries
Bata Properties Limited (BPL) and Coastal commercial & EXIM Limited
(CCEL) had approved the scheme of amalgamation between BPL (the
transferee company) and CCEL (the transferor company) at their
respective board meeting held on 16th September 2020 The scheme was
filed with ROC for approval and subsequently it was approved by the
shareholders of both the companies in their respective meetings held on
18th November 2020.During the FY2021 the wholly owned subsidiary
Coastal Commercial & Exim Limited (CCEL) has amalgamated with
another wholly owned susbidiary company - Bata Properties Limited
pursuant to scheme of merger approved vide order no RD/f/32916/S-
233/20/176 dated 9.4.2021 by Regional Director(ER) with Appointed day
as 1 April2020. Consequent upon the merger and in accordance with the
applicable Accounting standard Ind AS 103 Business Combination entire
business comprising of all assets and liabilities including immovable
properties have vested in the subsdiary company.During the quarter ended
31 March 2021 Retail network was expanded through franchise expansion.
The company opened a total of 10 franchise stores in smaller towns and
cities taking the total to 228 franchise stores as on 31 March 2021.
BOARD OF DIRECTORS OF BATA INDIA LIMITED

Mr. Ashwani Windlass, Chairman and Independent Director

Mr. Akshay Chudasama, Independent Director

Mr. Ashok Kumar Barat, Independent Director

Ms. Radha Rajappa, Independent Director

Mr. Ravindra Dhariwal, Independent Director

Mr. Alberto Toni, Non-Executive Director

Mr. Shaibal Sinha, Non-Executive Director

Mr. Gunjan Shah, Managing Director and Chief Executive Officer

Ms. Vidhya Srinivasan, Director Finance and Chief Financial Officer

Ms. Kanchan Chehal, Director HR and CHRO

COMMITTEES OF THE BOARD OF DIRECTORS OF BATA

INDIA LIMITED AND ITS COMPOSITION

AUDIT COMMITTEE

Mr. Ashok Kumar Barat, Chairman

Mr. Alberto Toni, Member

Mr. Ravindra Dhariwal, Member

Ms. Radha Rajappa, Member

Competitors are the person who produce and sell the same product has
produced by the unit competitors affect the business with several causes
the main rival of Bata India are as follows

Nike

Rebook

Puma

Fila

Adidas

Liberty shoe

Woodland

Red tape

New balance

Under Armour

Metro shoes
 JOB PROFILE

Job title

Job that I performed as intern in Bata limited was of “Store Manager”

Where I have to perform job to increase the growth and sales of Bata.
Strategies were to be made to

achieve organizational goal

The strategies that the company has adopted from past few years and what
all are the future prospects

and the strategies that the company can follow

The strategies that the company is following from past few years to
increase their sales, increase their

profit margin and shareholder’s wealth. Here we learnt how the company
is getting their funds and

how they can increase their investors to invest more in the company.

Duties and responsibilities that were to be performed by us as an intern

were as follows:

• To expand their business

• To increase shareholder’s wealth

• To beat their competitors

• To increase the profit margin

• To increase their sales

• To enhance their product variety

• To improve their product quality

• To improve their financial position

• To improve their market share

• To improve the goodwill of the company

PRODUCT PROFILE

PRODUCTS

Bata India Ltd. has a large variety of shoes for all the sections. They also
make accessory for men’s

and women’s.

Bata India Ltd. make products of the following categories:

1.) Men`s Wear: They make products of preferably for service men and
also have

Segment of sports shoes for young men under a different company name
POWER . they have a large

Variety of products such as:-

• Closed dress

• Closed casual

• Sandals

• Chapels

• Sports wear
Closed dress range starts from 699 to 2699

Closed casual range starts from 399 to 1999

Sandals range starts from 399 to 1899

Chappals range starts from 169-1799

Sports shoes range start from 699-1799

2.) Women’s wear: They make products of preferably missy and have
large variety of products

such as:-

Chappals range starts from 139 to 1249

Closed range starts from 299 to 1299

Sandals range starts from 299 to 1249

3.) Kid`s wear: they make products of the age group 6-17 years

Infant range from 199

Closed range from 159 to 699

Sandals range from 199 to 599

Strength in the SWOT Analysis of BATA :

Global Presence: Bata is present in more than 70 countries, with

production facilities in 27 countries. This makes Bata a global player and
hence not dependent on a single market.

Market Penetration: Bata has penetrated the market really well. Bata is
present in large cities to small towns. This helps in maintaining its
customer base and also capturing the new demand created in the market.

Strong Distribution Network: Bata has a very strong distribution network

throughout the world with about 5000 retail stores worldwide out of which
more than 1200 are located in India.

Excellent positioning: Bata has positioned itself really well as a

fashionable yet affordable footwear brand.

Cost Advantage: Its quite clear that bata has the cost advantage and is able
to manufacture a huge range of footwears at a very affordable price.
Weakness in the SWOT Analysis of BATA :

Limited market share due to competition: Bata has been subjected to

high competition which doesn’t allow Bata to have a high market share.
Bata’s market share has been reduced to 6 per cent.

Falling Sales: Bata India’s year on year sales has been on a downturn.
Although the company’s profits have been increasing.

Low quality image: Because of the low pricing of Bata shoes, most
consumers think the quality of the shoes will be low as well. This is a
typical price quality approach of positioning.
Opportunity in the SWOT Analysis of BATA :

Footwear as a Fashion statement: Footwears are now considered fashion

statement and hence sales are bound to increase. This creates an
opportunity for Bata to enhance its revenues.

Growing Rural Market: Bata has a strong presence in the emerging

nations. Rural market in the emerging nations is growing at a high rate.
Bata needs to take advantage of the demand created in the rural market.
This will help in improving its bottom-line.

Threats

• Changing fashion trends is hard to adopt for the Indian Leather

Industries.

• Entry of global competitors into National market brings heavy

competition in the market
 CHAPTER 2

REVIEW OF LITERATURE
Literature review is the document of a comprehensive review of the
published and unpublished work from secondary sources of data in the
areas of specific interest to the researcher

The main aim is to find out problems that are already investigated and
those that need futher investigation .It is an extensive survey of all
available past studies relevant to the field of investigation .It gives
knowledge about what others have found out in the related field of study
and how they have done also;

A successful brand is an identifiable product ,services ;person or place

augmented in such a way that the buyer or user perceives relevant unique
added values which match their needs most closely .Futher more its
success result from being able to sustain these added values in the face of
competition .These needs include rational needs [such as features
,packages or the price of the brand] and emotional needs such as prestige
distinctiveness style or the social reassurance of the brand Loyalty
measurement has not flourished in the marketing literature .A person
attitude towards brand is relevant to the degree of their brand loyalty
.Brand awareness is linked with the customers brand preferences that
salient brands are high in both intentions to buy the brand and brand
loyalty .It is a well known fact that a distinctive brand identify is one of the
most influential factors in determing how consumers differenative between
similar products and services
 CHAPTER 3

RESEARCH METHODOLOGY
Meaning:

Methodology is the systematic, theoretical analysis of the methods applied

to a field of study. It comprises the theoretical analysis of the body of
methods and principles associated with a branch of knowledge. Typically,
it encompasses concepts such as paradigm, theoretical model, phases and
quantitative or qualitative techniques.

A methodology does not set out to provide solutions - it is, therefore, not
the same thing as a method. Instead, it offers the theoretical underpinning
for understanding which method, set of methods or so called “best
practices” can be applied to specific case, for example, to calculate a
specific result.It has been defined also as follows:

1. "the analysis of the principles of methods, rules, and postulates

employed by a discipline"

2. "the systematic study of methods that are, can be, or have been applied
within a discipline"

3. "the study or description of methods"

Research design:

A research design is a systematic plan to study a scientific problem. The

design of a study defines the study type (descriptive, correlation, semi-
experimental, experimental, review, meta-analytic) and sub-type (e.g.,
descriptive-longitudinal casestudy), researchquestion, hypotheses,
independent and dependent variables, experimental design, and, if
applicable, data collection methods and a statistical analysis plan. Research
design is the framework that has been created to seek answers to research
questions.

Types of research design:

• Descriptive (e.g., case-study, naturalistic observation, Survey)

• Correlation (e.g., case-control study, observational study)

• Semi-experimental (e.g., field experiment, quasi-experiment)

• Experimental (Experiment with random assignment)

• Review (Literature review, Systematic review)

• Meta-analytic (Meta-analysis)

3.3.1 Descriptive research design:

Descriptive research is used to describe characteristics of a population or

phenomenon being studied. It does not answer questions about
how/when/why the characteristics occurred. Rather it addresses the "what"
question (What are the characteristics of the population or situation being
studied?) The characteristics used to describe the situation or populations
are usually some kind of categorical scheme also known as descriptive
categories. For example, the periodic table categorizes the elements.
Scientists use knowledge about the nature of electrons, protons and
neutrons to devise this categorical scheme. We now take for granted the
periodic table, yet it took descriptive research devise it. Descriptive
research generally precedes explanatory research. For example, over time
the periodic table’s description of the elements allowed scientists to
explain chemical reaction and make sound prediction when elements were
combined.

Hence, research cannot describe what caused a situation. Thus, Descriptive

research cannot be used to as the basis of a causal relationship, where one
variable affects another. In other words, descriptive research can be said to
have a low requirement for internal validity.

The description is used for frequencies, averages and other statistical

calculations. Often the best approach, prior to writing descriptive research,
is to conduct a survey investigation. Qualitative research often has the aim
of description and researchers may follow-up with examinations of why
the observations exist and what the implications of the findings are.

Sources of secondary data:

As is the case in primary research, secondary data can be obtained from

two different research strands:

Quantitative: Census, housing, social security as well as electoral statistics

and other related

databases.

• Qualitative: Semi-structured and structured interviews, focus groups

transcripts, field

notes, observation records and other personal, research-related documents.

A clear benefit of using secondary data is that much of the background

work needed has already been
carried out, for example: literature reviews, case studies might have been
carried out, published texts and statistics could have been already used
elsewhere, media promotion and personal contacts have also been utilized.

This wealth of background work means that secondary data generally have
a pre-established degree of validity and reliability which need not be re-
examined by the researcher who is re-using such data.

Furthermore, secondary data can also be helpful in the research design of

subsequent primary research and can provide a baseline with which the
collected primary data results can be compared to. Therefore, it is always
wise to begin any research activity with a review of the secondary data.