CHAPTER - 1
  INTRODUCTION
 

OVERVIEW OF INDIAN FOOTWEAR INDUSTRY

The Footwear Industry is a significant segment of the Leather Industry in India. India ranks
second among the footwear producing countries next to China. The industry is labour 
intensive and is concentrated in the small and cottage industry sectors. While leather shoes
and uppers are concentrated in large scale units the sandals and Chappals are produced in the
household and cottage sector. India produces more of gents! footwear while the world!s ma"or 
 production is in ladies footwear. In the case of Chappals and sandals use of non#leather 
material is prevalent in the domestic market.

The ma"or production centers India are Chennai $anipet %mbur in Tamil &adu  'umbai in
'aharashtra (anpur in ).*.  +alandhar in *un"ab %gra and ,elhi.

The estimated annual footwear production capacity in - is nearly -/01 million pairs 2//1
million pairs of leather footwear and 13 million pairs of non#leather footwear4.

5hoes manufactured in India wear brand names like Florsheim 6abor Clarks 5alamander 
and 5t. 'icheal!s. %s part of its effort to play a lead role in the global trade the Indian leather 
industry is focusing on key deliverables of innovative design consistently superior 7uality
and unfailing delivery schedules.

India in itself has a huge domestic market which is largely untapped.

The Indian footwear industry is provided with institutional infrastructure support through
 premier institutions like Central Leather $esearch Institute Chennai Footwear ,esign 8
,evelopment Institute &oida &ational Institute of Fashion Technology &ew ,elhi etc in
the areas of technological development design and product development and human resource
development.

The availability of abundant raw material base large domestic market and the opportunity to
cater to world markets makes India an attractive destination for technology and investments.

Production capacity o S!o" Indu#try

 

The leather industry is spread in different segments namely tanning 8 finishing footwear 8
footwear components leather garments leather goods including saddlery 8 harness etc.

T!" "#ti$at"d production capacity in di"r"nt #"%$"nt# i# a# und"r

• 9ides:1; million pieces

• 5kins:-11 million pieces

Foot&"ar ' Foot&"ar Co$pon"nt#

• 5hoes:-33 million pairs

• Leather shoe uppers:/< million pairs

•  &on#leather shoes=chappals etc:->? million pairs

• Leather 6arments:1 million pieces

• Leather *roducts:/3 million pieces

• Industrial 6loves:;3 million pairs

• 5addlery:1333 pieces

The ma"or production centers for leather and leather products are located at Chennai %mbur
$anipet @aniyambadi Trichi ,indigul in Tamil &adu Calcutta in West Aengal (anpur in
)ttar *radesh +alandhar in *un"ab Aangalore in (arnataka ,elhi and 9yderabad in %ndhra
*radesh.

Ra& $at"ria( #upp(i"#)

There exists a large raw material base. This is on account of population of -; million cattle
/3 million buffaloes ? million goats. %ccording to the latest census India ranks first among
the ma"or livestock holding countries in the world. In respect of sheep with ;< million sheeps
 

it claims the sixth position. These four species provide the basic raw material for the leather 
industry.

The annual availability of -11 million pieces of hides and skins is the main strength of the
industry. This is expected to go up to >-< million pieces by the end of year >333. 5ome of the
goat=calf=sheep skins available in India are regarded as specialty products commanding a
good market. %bundance of traditional skills in training finishing and manufacturing
downstream products and relatively low wage rates are the two other factors of comparative
advantage for India.

  http://leather.indiabizclub.com/info/india
n_leather_industry_overview

Export and Import overview

IndiaBs export of Leather 8 Leather 

*roducts has reached )5  0.;/ billion in
dollar terms and $s.-;333 crore in rupee
terms. In dollar terms there has been an
export growth of -0.1/D and in rupee
termsl.-0DFootwear alone holds a ma"or 
share of ;>.;;D in IndiaBs total leather 
 products export trade. %s against the export
target of )5  03;> million for the
financial year >33/#3< the achievement was --;.0>D

Footwear is the engine of growth for the entire Indian leather industry and India is the second
largest global producer of footwear after China accounting for -;D of global footwear 
 production. of -;.?> billion *airs.

India *roduces >31? million pairs of ,ifferent Categories of Footwear 2Leather Footwear 3
million pairs Leather 5hoe uppers -33 million pairs and &on#leather footwear -3?1 million
 pairs4

India exports about --? million pairs. Thus nearly ?D of its production goes to meet its
own domestic demand.
 

Footwear exported from India are ,ress 5hoes Casuals 'occasins 5port 5hoes 9orrachies
5andals Aallerinas Aoots 5andals and Chappals made of rubber plastic *.@.C. and other 
materials.

%cmeClarksCole9ann,eichmannEccoElefanten
'&C Arands sourced :
Florsheim6abor9asley 9ush *uppies ,ouble 9 +ustin
from India
'arks 8 5pencer &autica &ike &unn.

Indian Arands sold in India : $ed Tape Aata Liberty 

(hadims Lakhani %ction

•  &early /?D of India!s Export of Footwear is to the European Countries and the )5%.

• The Indian Footwear Industry provides employment opportunities to a total of -.-

million people mostly from the weaker sections of the society. ut of this about 3.>
million are employed in the organiGed sector ;3D of whom are women. $emaining
3. million people are engaged in unorganiGed footwear sector like rural artisans
cottage and household units etc.

• The Footwear 5ector is now de#licensed and de#reserved paving the way for 
expansion of capacities on modern lines with state#of#the#art machinery. To further 
assist this process the 6overnment has permitted -33D Foreign ,irect Investment
through the automatic route for the Footwear 5ector.

 
 

Footwear export has increased from )5;3.-? million in -//#/< to )5 -;/?.<0 million in
>33/#3<

Chart showing
Global Import of footwear Vs. Indian Export of Footwear

India ’s Exports of Footwear – Country-wise Share in Total !ports

"#$$%-$&' Source: ()C*+ S
 

The European
)nion and the )5% are the ma"or markets for Indian Footwear accounting for /.?D and
.>>D share respectively in India!s total footwear export. The ma"or markets for Indian
Footwear are 6ermany -1.11D )( -1.0-D Italy -?.0>D )5% .>>D France /.<-D 5pain
?.-3D &etherlands ;.-D *ortugal >.?3D )%E >.;<D and ,enmark -.-<D. These -3
countries together accounts for nearly <-.;D of India!s total leather products export.
  " http://footwearsinfoline.
tripod.com/e!port_import.htm4

 &TE:# >3D of total Indian shoe production come from Aata. i.e about <crorte pairs.

D"#i%n-cu$-R"#ourc" C"ntr" or Foot&"ar ' *"at!"r Indu#try:

  Leather goods  and shoes as well as items of fur are being manufactured in the 5mall 5cale
Industry=Tiny sector traditionally in 5rinagar and +ammu. The Central 6overnment would
 

make an initial contribution of $s. -.33 crore as grant for setting up a ,esign=$esource
Centre and &ational Leather ,evelopment *rogramme 2&L,*4 will provide assistance for 
machinery training and salaries of professionals. )nder the &ational Leather ,evelopment
*rograramme exclusive assistance will be provided to market finished leather products of the
artisans of the 5tate in the form of buyer seller meets and exhibitions.

RAW +ATERIA* FOR SHOES

• Synthetic leather 
• Shoe leather 
•  PU leather 
•  Air blown PVC soles
•  PU welted sole
• TPR soles for men
•  PU sleeper sole
•  PVC gents sole
•  PU shoe sole
•  Emulsion polymers (latees!
•  Pell ethane thermoplastic polyurethane elastomers
•  Polyurethanes
• Voralast polyurethane system
•  "icrofiber leather

CO+PANY PROFI*E

INTRODUCTION A,OUT ,ATA INDIA *I+ITED

 

Aata India Ltd 2AIL4 is a ?-D subsidiary of Aata 2A&4 A@

of &etherlands. AIL is IndiaBs largest manufacturer and
marketer of footwear products. Aesides leather rubber and
canvas footwear AIL also markets sports shoes
accessories and garments. AIL sells about ? million pairs
 per year throughout India and in overseas markets such as
)5% )( Europe 'iddle East and Far East. AIL!s strong
 points are the strong parent support it en"oys a strong
 brand name supported by value for money positioning and
its large retail reach with -133 exclusive retail stores and a
 presence in another 03333 shops.
AILBs business history in India has been marred by innumerable labor problems. ,espite
having one of the highest employee cost 2>?D of sales4 there continue to be innumerable
conflicts between the labor unions and the management at its various locations. The
companyBs Faridabad factory was under lock out from Feb to &ov B. In the year >333 its
*eenya factory has been under lock out from 'ar B>333 to +ul B>333. The company had signed
a 0#year wage agreement with the labor union at Aatanagar its largest manufacturing unit. %
key feature of the domestic footwear industry is the large presence of the unorganiGed sector 
in the former. The unorganiGed sector accounts for two#thirds of the industryBs total volumes.
The industry siGe is estimated at 1?3mn pairs valued at $s/?bn. The industry growth has
slowed down from >3D growth rate in the 3!s to <#-3D in the last >#0 years. %s the
7uantitative restriction on the import of footwear has been lifted the market being flooded by
imports. AIL is making fresh investment to upgrade the manufacturing processes of footwear 
to face competition from imported brands. %lso the company has commenced imports of 
footwear with effect from F->=>333. It imported footwear worth $s?>mn during the year and
this is likely too increase in the coming years

AILBs operating profit for F->=>333 has declined by >.??D to $s;<>.1mn as against
$s1<?mn in the previous year. *' reduced to 1./D in FH->=>333 as compared to .;D last
year. The company has attributed lower growth to poor market conditions and restricted
supplies to wholesale dealers. $eturn on capital employed 2pre tax4 has also eroded from
-?.-D in FH->= to <.?D in FH->=>333. 'anagement restructuring: Aata has put a new
management team in place in +anuary >33-. 'r. Chandu 'orGaria has been appointed as
'anaging ,irector in place of retiring ', 'r. W ( Weston. Aata is set to exploit the
 

opportunity offered by the clubbing together of its operations in India *akistan Aangladesh
and 5ri Lanka under a single managing team. AIL has also brought in 'r. 9arnan rdoneG
from Toronto to look after the wholesale business 'r. Tony @an Es to ensure product 7uality
'r. W $iber from *akistan for product development and 'r. ,ean Turner CF#%sian region
to look after the entire finance function with an attempt to improve operations and
 profitability in all areas.

Aata was originally incorporated as Aata 5hoe Company Limited on ,ecember >0 -0-
under the Indian Companies %ct. The company was promoted by Leader %6 5witGerland a
member of the multinational A5 2A54 with a -33D e7uity shareholding. Aata &etherlands
A@ currently holds ?-D stake in the company. In -/0 the company changed its name to
Aata India Limited and made its first public issue of shares.
 

,ata *i$it"d) a(( o"r t!" &or(d

Aata 5hoe Company Ltd Toronto operating since -0- selling business in more
than 3 countries.
 In India its $egistered ffice is in (olkata. 21% 5 & Aaner"ee $oad (olkata#-0
*h:#-2004>;;0;-1#-<
-2004>;;3;?1
Fax:#-2004>;;/;-<
E#mail2batacal@bataindia.com4

IT%LH J Florence C%&%,% # Toronto IT%LH # @enice

F$%&CE J *aris 5WITKE$L%&, # *$T)6%L # Lisbon

Kurich

CKEC9 $E*)ALIC # CKEC9 $E*)ALIC # CKEC9 $E*)ALIC

*rague strava  J Arno

C9ILE # 5antiago C9ILE # *uente %lto LEA%&& # Aeirut

 

CH*$)5 # &icosia 5)T9 %F$IC% # I&,&E5I% #

)mblanga $ocks Aandung

T9%IL%&, # '%L%H5I% # (uala I&,I% # (olkata

Aangkok  Lumpur 
 

HISTORY

  S".u"ntiona( +i("#ton"#)

1/01 ) Aata India Limited the Company was incorporated at Calcutta. The Company
'anufacture and market of all types of footwear footwear components leather and products
allied to footwear trade.
Aata was originally promoted as Aata 5hoe Co *vt Ltd by Leader %6 5witGerland a member 
of the Toronto#based multinational Aata 5hoe rganiGation 2A54. It became a public limited
company in -/0 and the name was changed to Aata India Ltd.

1/0 ) Tanning was introduced at the new factory at Aatanagar along with the introduction of 
leather products towards the end of the year.

1/23 ) In addition to the footwear manufacturing plant a machinery department was set up
which produced the first Indian#made ma"or shoe machine. % leather footwear factory was
established at *atna Aihar which is known today as Aatagan".

1/43 ) In 'okamehgat a tannery was established and a hide purchasing centre was also set
up there. %nother factory was constructed at Faridabad.

1/0 ) With the public issue of capital in +une Leader %.6. 5t. 'oritG 5witGerland offered
for sale ?33333 shares out of their holdings at a premium of $s >3 per share 2>33333 shares
each to LIC and )TI and -33333 shares to the public4.

1/ ) Leader %.6. 5t. 'oritG 5witGerland offered for sale <33333 shares at a premium of 
$s < per share to resident Indian nationals thereby reducing their holdings to ->33333 shares
or ;3D of the issue capital.

%nother ;/-;333 &o. of e7uity shares of $s -3 each at a premium of $s >? per share were
issued to Aata 2A&4 A.@. %msterdam a wholly owned subsidiary of Leader %.6. 5t. 'oritG
5witGerland in order to raise their holding in the Company from ;3D to ?-D.

1// ) /?3333 bonus shares issued in prop. -:;.

1/52 ) -?33333 bonus shares issued in prop. >:? in %pril.

 

1/5 ) The Company privately placed with financial institutions 2)TI LIC 6IC 8 its
subsidiary4 -?D debentures worth $s ? crores. The Company also allotted debentures worth
$s -./? crores to the %rmy 6roup Insurance Fund.

# The Aata 5hoe rganisation consists of 1 independently run companies in 3 countries

throughout the world. ?> ?3 333 bonus shares issued in prop. -:-.

1/55 ) %greement was arrived at with %didas of West 6ermany for manufacture and
marketing of sports and special application footwear spots goods and sports wear in India and
the products were expected to be launched in ,ecember -<.

'arketing of 5tarB clothings designed by 'ur"ani International &ew Hork ).5.%. and
sourced through Inmark Arands *vt. Ltd. was launched.

% new brand of shoe TigreB was introduced during the year for sales through wholesalers and
independent retailers.

1/5/ ) The Company successfully launched %didasB collection of hi#tech sports footwear. %s
a result of the $8, activities special leather board was developed as a substitute for insole
leather.

1//6 ) % highly versatile sample -<#station bicolour in"ection moulding plant was installed in
the Aangalore factory for production of 5tate#of#the#artB in"ection moulded shoes with
synthetic and textile uppers and specially developed *@C compounds as soleing material.

*ursuant to a 5cheme of %rrangement between the Company and Aata *roperties Ltd. a
wholly#owned subsidiary of the Company certain properties constituting the real estate
division of the Company were transferred to A*L for better development and management
with effect from -st +uly.

1//1 ) % promotional brand TigreB was launched to keep the factories full at all times and
thereby reduce losses due to under recovery of overheads.
 

The Company issued non#convertible debentures aggregating $s 0.?3 crores to 5AI 'utual
Fund. These debentures are redeemable in three e7ual installments at the end of 1th /th and
<th year from the date of allotment. &egotiations were in progress for private placement of the
remaining debentures.

1//3 ) The workers at Aatanagar factory went on strike from 0rd +anuary to >0rd 'ay which
resulted in substantial loss of production during the initial 1 months of the yr. The Company
undertook to set up a green field export oriented unit at 9osur in Tamilnadu with the 5tate#of#
the#art technology.

ver the years the Company with the collaboration of Aata ,evelopment Ltd. London
).(. and its association with Aata Ltd. Toronto has been building up its own well#e7uipped
and up#to#date $8, organisation.

1//0 ) The Company undertook to expand and modernise its existing plants for capacity
optimisation to become cost efficient on a global basis. %part from it also undertook 
expansion and upgradation of its retail stores. Export riented )nit was also to be set up at
9osur in Tamil &adu.

# ,uring +anuary the Company issued -3?33333 &o. of e7uity shares of $s -3 each at a
 premium of $s >3 per share on rights basis in the proportion of -:-. %llotment of -<?1 &o. of 
e7uity shares was kept in abeyance since the matter was sub#"udice. The balance -3; <-;;
shares were allotted.

1//4 ) -0--;333 &o. of e7uity shares allotted to Aata 2A&4 A@ %materdown The
 &ortherlands the holding company.The Long Term %greement with the Aata 'aGdoor )nion
representing employees of Aatanagar and Calcutta ffices was signed at bipartite level
satisfactorily without any disruption of work.

1//7 ) The Company has received a notice in writing from a member of the Company under 
5ection >?/ of the Companies %ct -?1 signifying his intention to propose the appointment
of 'r Thakur as a ,irector of the Company.

1// ) IndiaBs largest shoe company Aata India 2AIL4 has performed admirably to stage a
remarkable turnaround for the year ended ,ecember -1.
 

Aata has entered into a marketing tie#up with &ike wherein the latterBs products will be offered
from select Aata outlets.

The companyBs debt#e7uity ratio is also set to improve dramatically to 3.13:- from -.3:- in
,ecember -1 and >.31:- in ,ecember -1.

Aata India a ?- per cent subsidiary of Canada based Aata 5hoe rganisation had last
revalued its buildings in -1 and the latest exercise which will cover all fixed assets is
expected to substantially prop up its reserves.

1//5 ) Aata India a subsidiary of the Canadian multinational Aata 5hoe rganisation has
suspended its after#sales service.

Every Aata outlet -333 owned and over 133 "oint ventures were expected to sell 9ush
*uppies 'arie Claire and %didas.

Aata India has proposed a dividend of <? paise per share to its shareholders for the year ended
,ecember <.

The shoe ma"or had concluded long term wage agreements with the workers of its factories at
Faridabad 29aryana4 and 'okamehghat 2Aihar4 for three years up to >33-.

1/// ) Aata needed to launch new products on a regular basis by expanding its womenBs
range and moving into the premium segments it had vacated.

The company launched the 5undropsB line at &ew ,elhi on %ugust -1. The company signed
seven long#term agreements and the last in Aatanagar is in an advanced stage of negotiations
which will be settled soon.

AataBs Faridabad factory workersB union finally reached an agreement with the company
management ending the nearly eight#month#old lock#out at the unit.

Aata India is aiming to achieve a -? per cent growth in turnover and profits in - to reach
the target set out in the @ision >33- plan drawn up by Compass the international board of the
Aata 5hoe rganisation 2A54.
 

5hoe ma"or Aata India which is set to unleash a new advertisement campaign for its new
ladies range 5undropsB has signed up film actress $ani 'ukher"ee to endorse the line.

3666 ) Aata India 2Aata4 is the largest footwear manufacturer and produces a wide range of 
footwear such as canvas rubber leather plastic and so on.

The Company has lifted the lock#out at its *eenya factory in (arnataka. The lockout was
declared on 'arch <th following a strike by the employeesB union.

3663 ) Aata India Ltd has informed A5E that the Aoard appointed 'r +aswant 5ingh as
Wholetime ,irector 'arketing 8 Commercial of the Company w e f %ugust 3- >33>.'r 
'5' 6haGnavi ,irector retail has resigned from the Aoard.

Aata India Ltd has informed A5E that at the meeting of the Aoard of ,irectors of the
Company held on 5eptember -/ >33> 'r 5tephen +ohn ,avies was appointed the 'anaging
,irector of the Company. The Aoard also appointed 'r C 'orGaria as Executive @ice
Chairman. 'r F 6arcia 'anaging ,irector of the Company has resigned from the Aoard.

3660 ) Aata India has decided to appoint brand managers for each product group. Each of 
these managers will be assisted by a dedicated team who in a new#found aggression will
tackle dwindling sales.

This also coincides with AataBs decision to recast its retail outlets along four customer 
segments into AaGaar Family City and Flagship stores abandoning its earlier territory#based
focus. %t the same time the company is also planning to raise its advertising budget to ?D of 
turnover against >D of turnover now.

  Strat"%ic S!it O"r Y"ar#)

 
Aata a subsidiary of the Toronto based A5 world!s largest manufacturer of footwear was
originally incorporated as Aata shoes company ltd in >0rd  ,ecember -0-.The parent
company sold 033 million pairs of shoes in more than 3 countries in -.The chairman of 
A5 Thomas + . Aata  inherited this legacy on his father!s death in -0>.Forced to leave his
 

home land CGechoslovakia in the wake of the &aGi invention Thomas Aata moved to Canada
with some >?3 managers supervisors workers 8 their families.

Two year after its in corporation Aata commenced its maiden footwear production at
(onnagar near Calcutta. 9owever it commissioned its first integrated shoe production facility
at Aatanagar in -01.The (ottayam 2(erala4 rubber collection centre came up in -0. Later
it set up another factory at Aatagun" 2Aihar4 in -;> which was supported by a tannery at
'okamghat near *atna. In -?- Aata!s Faridabad factory started producing canvas 8 rubber 
footwear. In -/0 Aata become a public ltd company 8 was henceforth called Aata ltd

Aata!s reasonably priced comfort able footwear particularly the study school shoes made it
one of the best known brands of the country. In the late -<3s Aata had a virtual monopoly in
the organiGed footwear industry with the market share of <>D in -<. The company
remained focused on basic 7uality footwear for the middle classes till the mid -<3 .Its early
 presence in the Indian footwear market which was till then dominated by the unorganiGed
sector gave it a head start in terms of brand development and retailing. In the late -<3s
under the leadership of @i"ay Lamba the company realiGed that the rising affluence of the
Indian middle class and the emergence of upwardly mobile professionals had brought a sea
change in consumer taste which it could ill afford to ignore. The new wave of consumerism
 brought in the new competitors in the early -3s. Lamba felt that over the years Aata had
ac7uired a dull image. 9e started toning it up by increasing the advertising budget
refurbishing its stores and introducing "aGGy new up market accessories like wallets belts ties
 briefcases cosmetics and perfumery.

 The change in the marketing thrust became all the more visible when in -> Lamba who
served Aata for >> long years was replaced by *radeep (umar ,utt a marketing expert from
Lipton India as new managing director. Considered a marketing guru# ,utt was instrumental
in strengthening the focus of the company to the upper segment with premium ranges which
included $ush Puppies# %estminister# &otto# Adidas for men and the "arie Claire range for 
women. Though the employees resisted Aata!s steps towards becoming a widely diversified
conglomerate its brand extension to appeals which initially started as a promotional gambit
slowly developed into a full fledged business under the aegis of 'r. ,utt.
 

The increased sales promotion drives gave the impression that ,utt had changed the focus to
the upper segment. Aut ,utt denied saying MIntroduction of some of the premium brands
were primarily for building an image for Aata. Aut as ever Aata has kept the medium category
segment as its target area.N The older employees in Aata viewed these changes with
apprehension as a vice president of the company commented MAata is synonymous with mass
 production not fashion wear and premium lines. It is basically value for money 8 volume
 business. %ny change in the product line has to be managed by insiders people whom have
grown with the organiGation and know the footwear trade inside out.N In fact in a conservative
company like Aata ,utts ascendancy itself was viewed with a fair amount of skepticism. The
resentment that a large section of the older employees had against the appointment soon came
to the surface. 5evere criticisms across alleging ,utt of unfairly inducting some of his trusted
man from outside the company. This had a demoraliGing effect on the employees of Aata.
bservers also attributed the deep financial irregularities to the policies of outsourcing a
charge though refuted by ,utt.

'eanwhile in the -0#; central budgets the withdrawal of the excise duty exemption on
footwear by the govt. on pairs costing $s. >33 and above forced Aata to raise prices by >3D.
For the middle#class customers the prices seemed to be exorbitant. The sales personnel also
ignored the popular segment and preferred to push high margin shoes which ranked in better 
incentives for them. Aata also blundered on the advertising front during -; when it spent
more in the first half of the year though the later was more lucrative being the festive season
in India.
For the calendar year -; ,utt targeted a net profit of $s. 033 million. *opularly known as
the O033 challenge! it called for suggestions from every executive of the company on the cost
control. Aut the scheme was immediately dropped after it miserably fell short of the target.
This kept ,utt from setting any target for -?. in an industry dominated by the small#scale
sector Aata was severely hit by the drop in volumes caused by switching over of a siGable
 portion of its fixed clientele to price competitive manufactures. In -? Aata for the first
time reported a loss of $s. ;>3 million. The country!s largest shoemaker!s sluggish
 performance was evident when the market share dropped from <>D in -< to ;3D in -?.
Thus when the new management team under (eith Weston took over in -? Aata faced a
deep crisis with a bloated unsalable product line diminishing market share and deteriorating
worsening negative cash flow.
 

  Indian Structur" And D""(op$"nt ' ,ata

Competition as phenomenon rewards the dynamic and at the same time penaliGes the sluggish.
Thus the strategy prescription for corporate dominance is to upgrade the anachronisms that
that have germinated and blossomed under regime of the closed economy. Change is the only
 prescription for corporate survival however in a large organiGation like Aata this
 phenomenon is considerably slow and positive outcome of which will only be visible after a
lapse of time.

The management is taking ma"or restructuring measures to distribution logistics reducing

costs strengthening merchandising and marketing along with launch of new products. It is
expected that these steps will contribute to the improved performance of the company in >330.

  ,ata) Opportuniti"# and T!r"at#

Aeing Oproactive! is one of the hackneyed expressions of modern "argon. %t the same time it
 portrays the importance of anticipating the future with creativity and innovation. The thrust
therefore is on innovation and creation of conditions and products that satisfies the
re7uirement of varied class of consumers. It is true that innovation that may be contemporary
today becomes old#fashioned tomorrow. 5till there is a little doubt that a Corporate which is
able to coalesce a realistic vision of consumers ever#changing future re7uirement is more
likely to succeed in this aggressively competitive regime.

The Company at present is on the stage of consolidation and in the process of re#inventing it
self although the basic ideology Mvalue for moneyN remains the same. The company in its true
sprit is consistently trying to give the consumers the full satisfaction of rupee spent. The
technical collaboration entered with Aata Limited Canada step towards this cause and will
only mould the Company!s future towards betterment.

Competition in days to come will be more aggressive. %lthough the company is com3petent to
withstand this competition a massive restructuring is presently re7uired to give support to the
company!s endeavour. The company in its present form will only lose its market share until
 

and unless the company rationaliGes its huge workforce to make the products price
competitive. Aut unfortunately our entire system is strained by the anti7uated labour laws.
The 5cheme of arrangement is a step towards this direction and will not only be beneficial to
the Company but also to the )nits which will independently function under a more focused
management and attain economic viability.

Threats are faced from unorganiGed sectors having low cost of production. %lso chap imports
from neighboring countries is eating into company!s market share. Within such inhibitions the
 brand Aata definitely gives a level of comfort in minds of consumers.

% well#planned and organiGed communication strategy is being adopted to disseminate the

 product based knowledge. *rint media campaigns are prolifically adopted as means of 
reaching out to the rural consumers.

The company!s extensive retail network is the foundation of its sale. The existing network is
 being refurbished and worked upon to provide a comfortable shopping ambience. &ew shops
are being added to strengthen the existing retail network. $ani 'ukher"i continues to be
Aata!s brand ambassador.

 Int"rna( Contro( Sy#t"$# and T!"ir Ad".uacy)

Aata has proper and ade7uate system of internal controls to ensure that all assets are
safeguarded and protected against loss from misuse or disposition and that transactions are
authoriGed recorded and reported correctly.

The internal control is supplemented by an extensive program of internal audits review by

management and documented policies guidelines and procedures. The internal control is
designed to ensure that the financial and other records are reliable for preparing financial
statement and other data and for maintaining accountability of assets.

 T!" Out(oo8 )

The Company is responding its image from 'anufacturing Company to 'arketing Company.
The path breaking exercise is therefore to align its position and stress on corporate brand
 building with more emphasis on marketing of 7uality services and products. )ndoubtedly the
existing high powered electrifying brand image with deep penetration level will offer the
 

much re7uired support to the present exercise. Arand managers are working on this new
corporate brand building exercise hat will be a departure from the past and that visualiGes
combating competition.

The company!s focus is on O7uality sale! with stress on consumer satisfaction. Puantity sale
can increase the turnover but 7uantity without 7uality will only destabiliGe the consumer 
confidence that has taken ages to build up. Even if the company has to outsource its product it
would not hesitate to go into strategic tie#ups as ultimately the consumers satisfaction is too
important to ignore.

The company has also identified strategic areas where cash drain is taking place and depleting
the financial resources. It plans to concentrate on these core areas and implement strategies to
restrict such financial drains. % Company of this stature has many unrelated cost which are
indispensable also the company is fully committed to its social liabilities and social costs
which add to the cost of production. The Company is thus emphasiGing on cost reduction as a
 policy matter because the old age adage Ma rupee saved is a rupee earnedN is still relevant
today.
 

CHAPTER-3
 
*ITERATURE REVIEW

391 *ITERATURE REVIEW)

Literature $eview is the documentation 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 further 
investigation It is an extensive survey of all available past studies relevant to the field of 
investigation. It gives us knowledge about what others have found out in the related field of 
study and how they have done so.

% successful brand is an identifiable product service person or place augmented in such a

way that the buyer or user perceives relevant uni7ue added values which match their needs
most closely. Furthermore its success results from being able to sustain these added values in
the face of competition. 5uccessful brands deliver benefits to satisfy customer needs. These
needs include rational needs 2such as features packages or the price of a brand4 and
emotional needs 2such as prestige distinctiveness style or the social reassurance of a brand4.
Arand loyalty measurement has not flourished in the marketing literature. % personBs attitude
toward a brand is relevant to the degree of their brand loyalty. Arand awareness is linked to
consumers 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 identity is one of the most
influential factors in determining how consumers differentiate between similar products and
services.

5cott 6alloway stated a very good definition showing importance of brands in today!s world
of marketing that MArand is the face of a business strategyN

2 5cott 6alloway in %lker >333 :004

another well appreciated definition of brand given by %merican 'arketing %ssociation cited
in 2(otler >330: ;-<4 M % brand is name term sign symbol or services of one seller or a
group of seller to differentiate them from those of competitorsN.

% brand is essentially a marketer!s promise to deliver a specific set of features benefits and
services consistently to buyers. The marketer must think that he is offering a contract to the
customer about how the brand will perform 2 kotler >3304

Le *la et ala 2>330: 04 give a more profound and in depth definition of brand: Arand is the
interaction between core company 2 product or service 4 strengths and what is customer 
 

value.Company strengths are what company does well. The things that the customers value
include the benefits of a products features as well as what the customer see as the ongoing
worth of a relationship with the company.

%ccording to (apferer 2-/ : ?14 M*roducts are mute: the brand is what gives them a
meaning and purpose telling us how a product should be read. % brand is both a prism and a
magnifying glass through which products can be decodedN.

$enault invites us to perceive its models as cars for living!.. brands guide our perception of 
 productsN. 9ence it can clearly be seen from the above paragraph that branding goes a long
way in giving a distinct identity to a product.

$owley 2-/4 explains that brand communicates with consumers according too him when
consumers are familiar with a brand they expect the same 7ualities benefits and advantages
from products or services which are provided under that specific brand this easily makes
their decision in favour of the brand instead of searching or gathering information regarding
 products fulfilling their re7uirements. Therefore it can be suggested that brand accelerates
consumers! process of decision making as it provides two different ways of communication
 between suppliers and their consumers 2$owley -/4

+ames $.*. 2-;4in his study examined the brand loyalty and brand switching behavior 
of cooking oil consumers and observed the existence of a positive relationship between age
and education of the consumers and their brand loyalty. Television and newspaper 
advertisements played a significant role in shaping the brand loyalty behavior of the
housewives. 'ostly out of stock situation 2554led to brand switching behavior with the
consumers. Aesides store loyalty and brand loyalty of the consumers are positively
correlated.

393 A,OUT THE TOPIC)

 

$eview of literature shows the previous studies carried out by the researcher in this field.
*revious studies are reviewed in order to gain insight into extent of research. The research
 problem can be more understood and made specific referring to theories reports records and
other information made in similar studies. This will provide the researcher with the
knowledge on what lines the study should proceed and serves to narrow the problem. The
main ob"ective of the study is to measure Arand %wareness of T&*L products among the
 people and the reviews are as follows:

,rand

% traditional definition of a brand was: Mthe name associated with one or more items in the
 product line that is used to identify the source of character of the item2s4N:;ot("r< 3666=9  

The %merican 'arketing %ssociation 2%'%4 definition of a brand is Ma name term sign
symbol or design or a combination of them intended to identify the goods and services of 
one seller or group of sellers and to differentiate them from those of competitorsN

,rand E.uity

:Roon"y< 1//4=  defines brand e7uity as a set of assets and liabilities linked to a brand!s name
and symbol that adds to or subtracts from the value provided by a product or service to a
customer. 9owever many factors can be attributed to the value of the brand for example
awareness recall and recognition. Arand e7uity as a differentiating factor that can influence
consumers! response to brand!s marketing activities. In an attempt to define the relationship
 between customers and brands the term brand e7uity in the marketing literature emerged

There have been different perspectives or considering brand e7uity the customer#based
 perspectives the financial perspectives and combined perspectives. The first perspective of 
 brand e7uity is from a financial market!s point of view where the asset value of a brand is
appraised :Far.u!ar< 1//1= . Customer#based brand e7uity is evaluating the consumer!s
response to a brand name :;"(("r< 1//0=. While this study focus on the customer based
 perspectives.

A Fra$"&or8 or +"a#urin% Cu#to$"r-,a#"d ,rand E.uity

 

Aa8"r :1//1=  defines Arand e7uity as the value that consumers associate with a brand. It is
the consumers! perception of the overall superiority of a product carrying that brand name
when compared to other brands. Arand e7uity refers to consumers! perception rather than any
ob"ective indicators9 % conceptual framework for measuring customer#based brand e7uity is
developed by using the conceptualiGation of %aker!s five dimensions of brand e7uity

Fi" Di$"n#ion# o ,rand E.uity) T!" Propo#"d +od"(

A FRA+EWOR; FOR +EASURIN> CUSTO+ER-,ASED ,RAND E?UITY

19 ,rand A&ar"n"##
 

Aa8"r :1//1= defines brand or name awareness as Mthe ability of a potential buyer to recognise
or recall that a brand is a member of a certain product category.N Therefore it is important that
a link between product class and brand is implicated because the scope of brand awareness is
very wide ranging from an unsure sensation that the brand name is recognised to a conviction
that it is the only one in the product class. Arand awareness refers to the strength of a brand!s
 presence in the consumer!s mind.

It is a measure of the percentage of the target market that is aware of a brand name 9
'arketers can create awareness among their target audience through repetitive advertising
and publicity. Arand awareness can provide a host of competitive advantages for the
marketer. These include the following)

• Arand awareness renders the brand with a sense of familiarity.

•  &ame awareness can be a sign of presence commitment and substance.

• The salience of a brand will decide if it is recalled at a key time in the purchasing
 process.

• Arand awareness is an asset that can be inordinately durable and thus sustainable.
It may be extremely difficult to dislodge a brand that had achieved a dominant
awareness level. Arand awareness is vitally important for all brands but high
 brand awareness without an understanding of what sets one apart from the
competition does one virtually no good.

Arand awareness is measured according to the different ways in which consumers remember 
a brand which may include brand recognition brand recall top of the mind brand and
dominant brand.

• ,rand r"co%nition: It related to consumers! ability to confirm prior exposure to that

 brand when given the brand a cue. It re7uires that consumers can correctly
discriminate the brand as having been previously seen or heard.

• ,rand r"ca(() Arand recall relates to consumers! aptitude to retrieve the brand from
memory given the product category the needs fulfilled by the category or a purchase
 

or usage situation as a cue. It re7uires consumers to correctly generate the brand

from memory when given a relevant cue.

• Top-o-$ind @rand) This is the brand name that first comes to mind when a
consumer is presented with the name of a product classification.

• Do$inant ,rand) The ultimate awareness level is brand name dominance where in
a recall task most consumers can only provide the name of a single brand.

%ccording to Aa8"r :1//7= for new or niche brands recognition can be important. For well#
known brands recall and top#of#mind are more sensitive and meaningful. Arand knowledge
and brand opinion can be used in part to enhance the measurement of brand recall.

39 ,rand A##ociation#

% Arand association is the most accepted aspect of brand e7uity :Aa8"r 1//3=9  %ssociations
represent the basis for purchase decision and for brand loyalty. Arand associations consist of 
all brand#related thoughts feelings perceptions images experiences beliefs attitudes
:;ot("r and ;"(("r 3667=  and is anything linked in memory to a brand. C!"n A9C9H :3661=
categoriGed two types of brand associations # product associations and organiGational
associations.

a9 Product A##ociation#

*roduct associations include functional attribute associations and non#functional associations.

Functional attributes are the tangible features of a product 2d" C!"rnatony and +cWi((ia$<
1/5/=. While evaluating a brand consumers link the performance of the functional attributes
to the brand 2Pitta and ;at#ani# 1//4= . If a brand does not perform the functions for which
it is designed the brand will has low level of brand e7uity. *erformance is defined as a
consumer!s "udgment about a brand!s fault#free and long#lasting physical operation and
flawlessness in the product!s physical construction.

 &on#functional attributes include symbolic attributes :Far.u!ar ' H"rr 1//0=  which are the
intangible features that meet consumers! needs for social approval personal expression or 
 

self#esteem Consumers linked social image of a brand trustworthiness perceived value

differentiation and country of origin to a brand.

Social 'mage

*a##ar :1//4=  limit the reference of the image dimension to the social dimension calling it
social image as social image contributes more to brand e7uity. 5ocial image is defined as the
consumer!s perception of the esteem in which the consumer!s social group holds the brand. It
includes the attributions a consumer makes and a consumer thinks that others make to the
typical user of the brand.

 Perceied Value

@alue appeared in several brand e7uity models :F"(d&ic8 1//7= define perceived value as the
 perceived brand utility relative to its costs assessed by the consumer and based on
simultaneous considerations of what is received and what is given up to receive it. Consumer 
choice of a brand depends on a perceived balance between the price of a product and all its
utilities :*a##ar 1//4=. % consumer is willing to pay premium prices due to the higher brand
e7uity.

Trustworthiness

Arand e7uity models :*a##ar 1//4=   regard trustworthiness of a product as an important

attribute in assessing the strengths of a brand. %lso define trustworthiness as the confidence a
consumer places in the firm and the firm!s communications and as to whether the firm!s
actions would be in the consumer!s interest. Consumers place high value in the brands that
they trust.

 )ifferentiation*)istinctieness

The 'arketing 5cience Institute :*"ut!"##"r 1/55=  states that the underlying determinants of 
consumer#based brand e7uity are that brands provide benefits to consumers by differentiating
 products as they facilitate the processing and retrieval of information.

ther marketing literatures :Ri"# and Trout 1/54=  also stress the importance of the
distinctive character of brand positioning in contributing to the success of a brand.
 

,istinctiveness is defined as the degree to which the consumer perceives that a brand is
distinct from its competitors. % brand can have a price premium if it is perceived as being
different from its competitors.

Country of origin

T!a8or and ;o!(i :1//7= argue that brand country of origin must also be considered. 9e
defines brand origin as Mthe place region or country to which the brand is perceived to
 belong by its customersN. Country of origin is known to lead to associations in the minds of 
consumers. The country of origin of a product is an extrinsic cue which similar to brand
name is known to influence consumers! perceptions.

Country of origin refers to the country of origin of a firm or a product :o!an##on "t a(9
1/54= or the country where the product is manufactured or assembled. %lso states that less
concern should be given to the place where brands manufacture their products and more to
the place where people perceive the brand!s country of origin to be. Therefore country of 
origin in the proposed framework referred to the brand!s country of origin.

@9 Or%aniBationa( A##ociation#

rganiGational associations include corporate ability associations which are those

associations related to the company!s expertise in producing and delivering its outputs and
corporate social responsibility associations which include organiGation!s activities with
respect to its perceived societal obligations

%ccording to Aa8"r :1//7= consumers consider the organiGation that is the people values
and programs that lies behind the brand. Arand#as#organiGation can be particularly helpful
when brands are similar with respect to attributes when the organiGation is visible 2as in a
durable goods or service business4 or when a corporate brand is involved.

Corporate social responsibility 2C5$4 must be mentioned as another concept that is

influencing the development of brands nowadays especially corporate brands as the public
wants to know what where and how much brands are giving back to society. Aoth branding
 

and C5$ have become crucially important now that the organiGations have recogniGed how
these strategies can add or detract from their value :,(u$"nt!a( and ,"r%#tro$ 3660= . C5$ 
can be defined in terms of legitimate ethics or from an instrumentalist perspective where
corporate image is the prime concern.

09 P"rc"i"d .ua(ity

*erceived 7uality is the customer!s "udgment about a product!s overall excellence or 
superiority that is different from ob"ective 7uality :"it!a$( 1/55=9 b"ective 7uality refers
to the technical measurable and verifiable nature of products=services processes and 7uality
controls. 9e classified the concept of perceived 7uality in two groups of factors that are
intrinsic attributes and extrinsic attributes. The intrinsic attributes are related to the physical
aspects of a product 2e.g. colour flavour form and appearance4 on the other hand extrinsic
attributes are related to the product but not in the physical part of this one 2e.g. brand name
stamp of 7uality price store packaging and production information It!s difficult to generaliGe
attributes as they are specific to product categories.

"it!a$( :1/55= classify the concept of perceived 7uality in two groups of factors that are
intrinsic attributes and extrinsic attributes. The intrinsic attributes are related to the physical
aspects of a product 2e.g. colour flavour form and appearance4 on the other hand extrinsic
attributes are related to the product but not in the physical part of this one 2e.g. brand name
stamp of 7uality price store packaging and production information. It!s difficult to
generaliGe attributes as they are specific to product categories :O(#on and aco@y 1/3=

29 ,rand *oya(ty

Loyalty is a core dimension of brand e7uity. >r"$@("r and ,ro&n :1//7=  define brand
loyalty as the attachment that a customer has to a brand and describe different levels of 
loyalty. Aehavioural loyalty is linked to consumer behaviour in the marketplace that can be
indicated by number of repeated purchases or commitment to rebuy the brand as a primary
choice9  Cognitive loyalty which means that a brand comes up first in a consumers! mind
when the need to make a purchase decision arises that is the consumers! first choice. The
cognitive loyalty is closely linked to the highest level of awareness 2top#of#mind4 where the
matter of interest also is the brand in a given category which the consumers recall first.
 

Thus a brand should be able to become the respondents! first choices 2cognitive loyalty4 and
is therefore purchased repeatedly 2behavioural loyalty4.

C!aud!uri ' Ho(@roo8 :3661= mention that brand loyalty is directly related to brand price.
Identify price premium as the basic indicator of loyalty. *rice premium is defined as the
amount a customer will pay for the brand in comparison with another brand offering similar 
 benefits and it may be high or low and positive or negative depending on the two brands
involved in the comparison.

Cu#to$"r Sati#action

P"t"r and O(#on :1//0=   mention that interaction between the people!s emotions
moods affection and special feelings is called consumer behaviour in other words in
environmental events which they exchange ideas and benefits each is called consumer 
 behavior. Auying behavior reflects who purchase product for personal use and not for 
 business purposes.

Ni%"( F9Pi"rcy :1//7= in his study MThe effects of customer satisfaction

measurement: the internal market versus the external marketN $eports some of the findings
of a recent study of the internal market effects of customer satisfaction measurement and
identifies a number of ways in which use of customer satisfaction information have negative
effects within the organiGation which may stand in the way of implementation of market
strategies of service and 7uality. This suggests a management agenda which extends far 
 beyond the ac7uisition of customer satisfaction data and reporting systems to consider the
full impact of such measurement systems.

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:3, ;ot("r< P!i(ip and ;"(("r ;"in *9:3667=<  'arketing 'anagementN :+th edition,
Upper Saddle Rier# -./ Prentice $all,

-1. *a##ar< W9:1//4=<    'easuring Customer#Aased Arand E7uityN  .ournal of Consumer 

 "ar1eting ->2;4: --#-.

:<, *"ut!"##"r :1/55= N ,efining measuring and managing brand e7uity: % conference

summary.$eport Q<<#-3;N Cambridge# "A/ "ar1eting Science 'nstitute,

-<. Ni%"( F9 Pi"rcy :1//7=< NThe effects of customer satisfaction measurement: the internal

market versus the external marketN @l:-; *p.-3/

-. O(#on< 9C9 and aco@y< 9 :1/3=<  Cue utilisation in the 7uality perception processN In

@enkatesan '. Ed. *roceedings of the Third %nnual Conference of the %ssociation for 

Consumer $esearch%ssociation for Consumer $esearch Chicago IL pp. -1/#/.

>3. P"t"r<9P9 and 9C9O(#on< :1//0= 13< MConsumer behaviorN @ol: ?*p.-?.

>-. Pitta< D9 A9 and ;at#ani# ( 1//4=<   )nderstanding brand e7uity for successful brand

extensionN .ournal of Consumer "ar1eting ->2;4: ?-#1;.

>>. Ri"#< A( and Trout< ac89 :1/54=<Challenges and opportunities facing brand

management: %n introduction to special issueN .ournal of "ar1eting Research 0-: -;#

-?<.
 

>0. Roon"y< 9 A9 :1//4=<  Aranding: a trend for today and tomorrowN .ournal of product 5

brand management  ;2;4 ;<#??.

>;. T!a8or and ;o!(i C!iran"" S9 :1//7=<  Arand rigin: ConceptualiGation and

$eviewN .ournal of Consumer "ar1eting -0 204: >/#;>.

>?. "it!a$(< V9A9 :1/55=< Consumer perceptions of price 7uality and value: a means#end

model and synthesis of evidenceN .ournal of "ar1eting ?>204: >#>>.

 

  CHAPTER-0
  RESEARCH
+ETHODO*O>Y

091O,ECTIVES OF THE STUDY)

PRI+ARY O,ECTIVE  

•  To ,now the brand awareness of ata *ndia td. mon0 the people.
•  To measure the oyalty of the customers towards the rand ata.
•  To ,now the popularity of the brand ata amon0 the consumers.

SECONDARY O,ECTIVES -

• To find out the company!s position in the footwear industry in the market.
 

• To find how much Aata brands are aware in the market among the consumers.
• To find out the loyal customers of Aata.
• To determine the factors which is affecting Aata!s promotional activitiesR
• To find out drawbacks of Aata brand.

093 RESEARCH +ETHODO*O>Y

$esearch is an endeavour to discover answers to intellectual and practical problems through

the application of scientific method. $esearch is the systematic process of collecting and
analyGing information 2data4 in order to increase our understanding of the phenomenon about
which we are concerned or interested. It is an extensive survey of all available past studies
relevant to the field of investigation. It gives us knowledge about what others have found out
in the related field of study and how they have done so. % research methodology is the
specification of methods and procedures for ac7uiring the information needed to structure or 
to solve problems. It is the overall operational pattern or frame work of the pro"ect that
stipulates what information is to be collected from which sources and by what procedures. If 
it is a good design it will ensure that the information obtained is relevant to the research
 problem and that it was collected by ob"ective and economical procedures. % research design
might be described as a series of advance decisions that taken together from a specific
master plan of model for the conduct of the investigation. %lthough research designs may be
classified by many criteria the most useful one concerns the ma"or purpose of the
investigation.
 

Typ" o r"#"arc!- Exploratory research or Formulative research.

The research has been conducted within the data and information available to gain familiarity
with the problem to generate new ideas or to make a precise formulation of the problem. The
current scenario is observed and an attempt has been done to relate the various variables.

The ma"or purposes of exploratory studies are the identification of problems the more precise
formulation of problems 2Including the identification of relevant variables4 and the
formulation of new alternative courses of action. %n exploratory study is often the first in the
series of pro"ects that culminate in one concerned with the drawing of inferences that are used
as the basis of management action. That is an exploratory study is often used as an
introductory phase of a larger study and results are used in developing specific techni7ues for 
the larger study. 5econdary sources of information as used in the section are the rough
e7uivalent of the MLiteratureN on the sub"ect.
 

RESEARCH DESI>N)
The research design states that the conceptual structure within which the study should be
conducted is descriptive in nature. The researcher used descriptive study to describe the
awareness of Aata among the consumers in market and to find loyal customers of Aata and
also to find out its demand efficiency brand image and its features.

Sa$p(in% Unit- The sampling unit selected as respondents who are the customers in  the
market buy footwear of Aata brand from different stores of ,elhi and 6urgaon.
Sa$p(in% SiB"- The sample has taken as <3 for collecting accurate information  but  received
only 13 samples from the respondents so 13 is the sample siGe taken for measuring the
awareness and loyalty of Aata brand.

DATA CO**ECTION)

The data collected are pri$ary data among the various customers to find out the level of 
awareness and loyalty of Aata among different footwear and its demand based on
 prescription and its features in various angles.
S"condary data was collected using internet and books.

+ETHOD OF DATA CO**ECTION) %s survey is best suited for descriptive research so

the research conducted directly for individual respondents through 7uestionnaire methods.
The interview is structured where the 7uestions asked in a se7uence and prescribed manner.
Therefore the received data is about the respondent!s awareness of Aata and loyalty towards
Aata and there is lesser degree of inaccuracy in survey method.
 

SA+P*IN> DESI>N)

• The below given 7uestions about brand awareness and brand loyalty contains sampling#

• Which single company comes to mind first in the shoe marketR Which
other companies come to mindR

• Which company do you view as the leader in the shoe marketR

• %re you aware of A%T%!s offerings in the shoe marketR If so to what extentR *lease list
the types of services that you know A%T% to offer in the shoe market.

• What three words best describe A%T%!5 position in the shoe marketR

• verall how satisfied are you with A%T% shoesR

• 9ow likely are you to continue to choose=repurchase A%T% shoesR

• 9ow likely are you to recommend A%T% shoes to a friend=associateR

 

*I+ITATIONS)

• Arand awareness dimension was not found significant in the tested model.

• Arand loyalty help the marketing researchers and marketing managers to understand
the market.

• These measures also help out to segment the market.

• The measures help to know the consumption fre7uency.

• Arand awareness measures the accessibility of the brand in memory.

• These measures help the Consumers rely only a few piece of information with which
they feel confident to help them decide how the brand might perform.

• It is a well known fact that a distinctive brand identity is one of the most influential
factors in determining how consumers differentiate between similar products and
services.
 

CHAPTER-2
  DATA
INTERPRETATION

ANA*YSIS AND INTERPRETATION)

 

?u"#tion1- %re you familiar with Aata shoesR

FA+I*IARITY RESPONSES

 &E@E$ 9E%$, ?

9E%$,&E@E$ A)H <

A)H CC%5I&%LH >1

A)H & $E6)L%$ A%5I5 >-

TA,*E 1) Fa$i(iarity &it! ,ata #!o"#

67**8*T9

&1
351 231

431

;8 <8( <8(=;8 >9

>9 ?CCS*?9 >9 8)>89

  .

Fi%ur" 1) Fa$i(iarity o ,ata ,rand

Int"rpr"tation- ;0D of the customers buy Aata products occasionally 0?D customers buy 
on regular basis and -0D customers have but never buy <D never heard.
 

?u"#tion3- What attributes associated with Aata shoesR

AT TRI,UTES RESPONSES
5THLE .
,)$%AILITH ><
C 'F$T -/
*$ICE -3
T9E$5 1

Ta@(" 3) Attri@ut"# a##ociat"# ,ata #!o"#

Fi%ur" 3) Attri@ut"# a##ociat"# ,ata S!o"#

Int"rpr"tation- ;3D customer!s associate!s durability for Aata products >;D associates 

comfort and -;D associate!s price and -0D associates style  D associates others.
 

?u"#tion0- Loyalty of customers towards bataR

*OYA* CUSTO+ERS RESPONSES

'$E T9%& >3 HE%$5 -0

AETWEE& -3#> 3HE%$5 -.

AETWEE& -#-3HE%$5 >>

 &E@E$ )5E, 1

Ta@(" 0) *oya(ty o cu#to$"r#

2$1
##1
7?8  T</: #$
 9/8S
-T@ : 2$A
3%1
#$9/8S
T@  2A
3#1 2$98S

;8 >S(

Fi%ur" 0) *oya(ty o cu#to$"r#

Int"rpr"tation- 0/D of the customers are using Aata products for -3 years 0>D of the
customers are using for >3 years and >> D of the customers are using for more than >3 years
and -3 D customers they have never use d Aata products.
 

?u"#tion2- 5uitable 5hoe brandR

SUITA,*E SHOE ,RAND RESPONSES

A%T% >-
$EEA( -.
%,,I,%5 ->
 &I(E 1
(9%,I' 5 >

Ta@(" 2) Suita@(" #!o" @rand

Fi%ur" 2 ) Suita@(" #!o" @rand

Int"rpr"tation- 0?D of the customers are suitable with Aata 0>D customers are suitable 
with $eebok and >3D of the customers are suitable with %ddidas -3D customers are suitable
with &ike 0D customers are suitable with (hadims
 

?u"#tion4- 5atisfaction level for sports wearR

SATISFACTION *EVE* FOR SPORTS WEAR  RESPONSES

F)LLH 5%TI5FIE, -.

5%TI5FIE, -;

 &T 5%TI5FIE, >/

Ta@(" 4) Sati#action (""(

3#1
 6>9 ST*S6*(
451
 ST*S6*(

#31  ?T ST*S 6*(

Fi%ur" 4) Sati#action (""(

Int"rpr"tation- ;?D customers are not satisfied with Aata sports wear 0>D are fully 

satisfied and >0D are not at all satisfied with Aata s ports wear.
 

?u"#tion7- @ariety of items and services while shopping in Aata storesR

VARIETY OF ITE+S ' SERVICES RESPONSES

F)LLH 5%TI5FIE, >.

5%TI5FIE, -/

 &T 5%TI5FIE, -;

Ta@(" 7) Vari"ty in ,ata #tor"#

Fi%ur" 7) Vari"ty in ,ata #tor"#

Int"rpr"tation- ;<D customers are fully satisfied with the variety of items and services in

Aata stores ><D are satisfied and >0D are not satisfied.
 

?u"#tion- ,oes the cost of Aata shoes affect purchasing choicesR

COST AFFECT RESPONSES

'$E ES*E5I@E -.

LE55 ES*E&5I@E /

*%H%ALE $%&6E 0;

Ta@(" ) Co#t a"ct o ,ata #!o"#

Fi%ur" ) Co#t a"ct o ,ata #!o"#

Int"rpr"tation- ? /D customers are satisfied with the cost of Aata product s 0>D

customers feel they are more expensive and ->D feel the Aata products are less expensive.
 

?u"#tion5- ,o %dvertisements capture the best 7ualities of Aata products and servicesR

?UA*ITY OF ADVERTISE+ENTS RESPONSES

@E$H 6, P)%LITH /

6, P)%LITH -/

*$ P)%LITH 01

Ta@(" 5) Ad"rti#"$"nt# .ua(ity

Fi%ur" 5) Ad"rti#"$"nt# .ua(ity

Int"rpr"tation- 13D customers think the 7uality of advertisements for Aata products and 

services are poor ><D think they are good and ->D think they are very good.
 

?u"#tion/- What are the chances of you recommending Aata shoes to friends and
relativesR

RECO++ENDIN> ,ATA SHOES RESPONSES

ESCELLE&T 1
@E$H 6, 1
6, 0>
F%I$  -0
*$ 0

Ta@(" /) R"co$$"ndin% ,ata #!o"#

Fi%ur" /) R"co$$"ndin% ,ata #!o"#

Int"rpr"tation- ?0D customers will recommend that Aata shoes are good >>D will 
recommend as they are fair and -3D will recommend very good and excellent ?D will
recommend as poor.
 

?u"#tion16- Would you repurchase of Aata products from Aata storesR

REPURCHASE OF ,ATA SHOES RESPONSES

'$E T9%& &CE I& % HE%$  >?

C%55I&%LH -1

@E$H FTE& --

$%$ELH <

Ta@("16) R"purc!a#" o ,ata product#

8>8C<S ?6 T S<?S

&

22 #5

2B

7?8 T< ?C *  98 ?CSS*?9

;89 ?6T 889

Fi%ur" 16) R"purc!a#" o ,ata product#

Int"rpr"tation- ;>D of the customers will repurchase more than once in an

year >/D will repurchase occasionally and -<D repurchase very often -0D
repurchase rare.
 

?u"#tion11- What is the nature inside Aata showroomR

NATURE IN ,ATA HI>H*Y SATISFIED DISSATISFIED

SHOWROO+ SATISFIED

C )$TE5H &%T)$E -; 0? --

F$IE&,LH 5%LE5 >. -? -1

ESEC)TI@E

  C& 6E&I%L E&@I$&'E&T >? >> -0

,I5 C)&T %&, FFE $  00 -. <

Ta@(" 11) Natur" in ,ata #!o& roo$

Chart Title
4$ 35 33
35 #D
3$ #5
#5 ##
2D
#$ 24 25 2B 23
25 22
2$
&
5
$

<*)<9 ST*S6*( ST*S6*( (*SST*S6*(

Fi%ur" 11) Natur" in ,ata #!o&roo$

Int"rpr"tation- 'any of the respondent s are satisfied with courtesy nature in Aata 
showroom some are highly satisfied with discounts and offer given by Aata and many of 
them think the sales executive are not friendly.
 

?u"#tion13- What is the impact on Aata ArandR

I+PACT ON ,ATA HI>H*Y SATISFIED DISSATISFIED

SATISFIED

*)ALIC $EL%TI&5 00 >- 1

%,@E$TI5E' E&T5 -0 >0 >;

5%LE5 *$'TI& -. >. ->

Ta@(" 13) I$pact on ,ata @rand

35

3$

#5

>-.*C 8
#$ ./T*?:S

 (;8T*S 7TS
25
 SS 8 ?7?T*?
2$

$
<*)<9 ST*S6*( ST*S6* ( (*SST*S6*(

Fi%ur" 13) I$pact on ,ata @rand

Int"rpr"tation- 'any of the respondent s are satisfied with the public relations of Aata
some of the respondents are satisfied with sales promotion and the customers are dissatisfied
with the advertisements of Aata.
 

  CHAPTER-4
  FINDIN>S
AND
SU>>ESTIONS

491FINDIN>S)

431 of the customers buy ata products occasionally= 351 customers buy on
 

re0ular basis= and 231 customers have but never buy= &1 never heard.
;3D customer!s associate!s durability for Aata products >;D associates comfort and -;D
associate!s price and -0D associates style D associates others.
  0/D of the customers are using Aata products for -3 years 0>D of the customers are using for 
>3 years and >>D of the customers are using for more than >3 years and -3D customers they
have never used Aata products.
  0?D of the customers are suitable with Aata 0>D customers are suitable with $eebok and >3D
of the customers are suitable with %ddidas -3D customers are suitable with &ike 0D
customers are suitable with (hadims.
  ;?D customers are not satisfied with Aata sports wear 0>D are fully satisfied and >0D are not
at all satisfied with Aata sports wear.
  ;<D customers are fully satisfied with the variety of items and services in Aata stores ><D are
satisfied and >0D are not satisfied.
  ?/D customers are satisfied with the cost of Aata products 0>D customers feel they are more
expensive and ->D feel the Aata products are less expensive.
  13D customers think the 7uality of advertisements for Aata products and services are poor ><D
think they are good and ->D think they are very good.
?0D customers will recommend that Aata shoes are good >>D will recommend as they are fair
and -3D will recommend very good and excellent ?D will recommend as poor.
;>D of the customers will repurchase more than once in a year >/D will repurchase
occasionally and -<D repurchase very often -0D repurchase rarely.
?0D customers are not convinced with their advertisements to buy their products and ;/D of 
the customers get attracted towards their products.
0<D feel there is discounts and offer in Aata showroom >0D feel there is a courtesy nature and
>3D feel the sales executives are friendly -<D feel there is a congenial environment.
1>D believe in public relations of Aata >?D believe in sales promotion and -0D believe in
advertisements of Aata Arand.

493 SU>>ESTIONS)

• 6ive sales discount and free samples to influence more sales in the growing shoe market.

• $educe the price level.

• 'ore advertisement should be aired.

• 5hould build awareness among the potential customers.

 

• Aring more design colour and design combination to be competitive.

•  To merge with the local companies and to expand more segmentation.

• 5hould come up with trendy stylish footwear which can attract young generation.

• 5hould concentrate on sportswear.

• Aata should also look after their footwear durability and comfort to maintain good relations with

their loyal customers.

• Company should engage in more marketing practices.

• 5hould open more retail outlets.

• 5hould be more customer centric and should develop its products according to the customer

needs.
 

CHAPTER-7

  CONC*USION

CONC*USION)
 

 From the analysis of Aata 5hoe Company India Ltd and the shoe industry we have
identified that the shoe industry is growing and identified their main weakness is
insufficient lack of development with the rapid changing market needs insufficient
 promotional activities and downward trend of 7uality.

 n the other hand distribution system and vertical integration are the strengths of 
Aata From strategic marketing viewpoint we see that Aata is taking corrective steps
in almost all the way.

 In very few sides Aata has lacking. Aased upon these facts recommended strategies
would assist in more growth of Aata shoe company India Ltd. in among the
upcoming fierce competition in the shoe industry.

It has been observed that the pattern of "ob performance and the 7uality of Aata product is
not highly appreciated by the consumers. The entire Aata 9ouse 6urgaon should improve
their 7uality of footwear and also should come with some good sports wear as customers are
not satisfied with Aata sports shoes. They should mainly concentrate on youngsters as now a
days they want stylish and designable shoes and chappals. 'y survey reveals the facts which
determine the mile stone achievement of the organiGation.

  ,I,*IO>RAPHY
 

,OO;S AND AUTHOR)-

• A$%&, '%&%6E'E&T AH (EL@I& (LIE&

  *%6E5#1/ T //

OURNA* AND +A>AINES)-

• T9E EC&'IC5 TI'E5

• C'*%&H +)$&%L5
• T9E 9I&,)
• T9E TI'E5 F I&,I%

WE,SITES)-

• www.bataindia.com
• www.google.co.in
• www.hindubusinessline.com
• www.wikipedia.org
 

  ANNEGURES

,ATA INDIA *TD9

 &%'E:

Email %,$E55:
 

C&T%CT &.:

-4 9ow familiar are you with A%T% shoesR

I!ve never heard of them

I!ve heard of them but never buy their products

I buy their products occasionally

I buy their products on a regular basis

>4 Which of the following attributes do you associate with A%T% shoesR

5THLE ,)$%AILITH C'F$T *$ICE T9E$5

04 9ow long have been using A%T% shoesR

;4 Which shoe brand do you feel is most suited to your needsR

?4 ,o you think A%T% serves the purpose of being a good brand for 5ports wearR
 

14 ,o you think you find a variety of items and services in the A%T% stores when shoppingR

/4 ,oes the cost of A%T% shoes affect your purchasing choicesR

<4 ,o you think our advertisements capture the best 7ualities of A%T% products and
  5ervices R

  If yes please specify.

4 9ow likely are you to recommend A%T% shoes to a friend or relativeR Would you say

  the chances are R

ESCELLE&T @E$H 6, 6, F%I$   *$ 

-349ow likely are you to repurchase products or services from A%T% storesR

--4 Which nature would you prefer in A%T% showroomR

NATURE IN ,ATA HI>H*Y SATISFIED DISSATISFIED

SHOWROO
+ SATISFIED

C)$TE5H

 &%T)$E
F$IE&,LH 5%LE5
ESEC)TI@E

C&6E&I%L
E&@I$&'E&T

,I5C)&T %&,
FFE$ 
 

->4 What is your impact on A%T% ArandR

I+PACT ON ,ATA HI>H*Y SATISFIED DISSATISFIED

,RAND SATISFIED

*)ALIC
$EL%TI&5

%,@E$TI5E'E&T5

5%LE5 *$'TI&