CHAPTER-1

Introduction

According to the Khadi &Village Industries Commission Act 1956, “khadi means
any cloth woven on a handloom from cotton, silk or woolen yarn- handspun in India
or from the combination of any two or all of such yarns. In the year of 1953,
the Indian government established the All India Khadi and Village Board (AIKVB).

The textile industry is a term used for industries primarily concerned with the
design or manufacture of clothing as well as the distribution and use of textiles. The
global textile and clothing industry is estimated to be worth about US$ 4,395 billion
and currently global trade in textiles and clothing stands at around US$ 360 billion.
The US market is the largest, estimated to be growing at 5% per year, and in
combination with the European Union nations, accounts for 64% of clothing
consumption.

The textile industry in India traditionally, after agriculture, is the only industry
that has generated huge employment for both skilled and unskilled labour in
textiles. The textile industry continues to be the second largest employment generating
sector in India. It offers direct employment to over 35 million in the
country.

The share of textiles in total exports was 11.04 per cent during
April–July 2010, as per the Ministry of Textiles. During 2009-2010, Indian textiles
industry was pegged at US$55 billion, 64 per cent of which services
domestic demand. In 2010, there were 2,500 textile weaving factories and 4,135
textile finishing factories in all of India. The Indian textile industry is one
the largest and oldest sectors in the country and among the most important in
the economy in terms of output, investment and employment. The sector
employs nearly 35 million people and after agriculture, is the second-highest employer in
the country.
 These differences render futile any attempt to generalize about the textile sector
as a whole. Indeed, successive textile policies of the government have been an
exercise in striking a balance between these segments.

In India, major production of handloom goods is in the category of cotton fabrics.

India is the World leader in global cotton yarn exports with 25 per cent market
share. India’s passage into modernity/ industrialization has centred, to a significant extent,
on the cotton textile industry.

Tracing the importance of the textile sector in the

Indian economy also brings us face to face with the different components –
such as the mill segment, the handloom segment and the power loom segment
– that make up this whole. These segments differ in terms of volume of
output, technology, the organization of production and so on and are often
placed in competing positions with one another, competing for raw materials, markets,etc.

Khadi is the only Indian fabric that is famous for its versatile feature. The cotton
is spun into threads and clothes are made using the spinning wheel called
charka. This was the result of the movement started by Mahatma Gandhi when it
was founded.

The British exploited Indian citizens by charging of high price for

the finished goods that were made out of the raw materials imported from
India. This lead to people boycotting foreign products and started making handmade
clothes. This was the evolution of khadi. This improved the economic state of
the country thus leading to the concept of self-reliance and encouragement for the rural
artisans.
 The wrong notion of ‘khadi limited to politicians’ has transformed to the ‘Pride of India’
thought. Adding to this the exceptional feature of khadi is that Indian flag
is only allowed to be made from khadi material. Khadi is promoted by MSMEs,
KVIC and Govt of India. Even though there has been stiff competition among
the textile industry, due to the efforts taken by Khadi and Village Industries
Commission, Khadi sector have been able to evolve as a symbol of Indian heritage
fabric. Among the proud lines offered by khadi, khadi shirts are preferred by the consumers.

In 1922, Mahatma Gandhi requested the Indian National Congress (INC) to

start a khadi department. In 1924, due to a large amount of work, a semi-independent body
All India Khadi Board (AIKB) was formed which liaisoned with the INC's

Khadi department at the provincial and district levels. In 1925, the All India
Spinner Association (AISA) was formed comprising the khadi department and
AIKB.Mahatma Gandhi was the founder of AISA. He made it obligatory for all
members of the INC to spin cotton themselves and pay their dues in yarn.

Khadi is sourced from different parts of India, depending upon its

raw materials - While the silk variety is sourced from West Bengal, Bihar, Odisha
and North Eastern states, the cotton variety comes from Andhra Pradesh, Uttar
Pradesh, Bihar and West Bengal. Khadi poly is spun in Gujarat and Rajasthan
while Haryana , Himachal Pradesh and Jammu and Kashmir, Karnataka are known for
the woolen variety.

This movement was highly publicized, leading to an alternative to British textiles.

Gandhi Ji wasof the belief that more than sales, this handwoven Khadi fabric
would bring about better changes to he daily lives of people.
Meaning and Definition of Khadi.

"Khadi can and should have only one meaning, viz, hand- woven cloth made from
hand-spunthread. Silk-thread, just fiber and wool woven in this manner may be called,
if we like, silk,jute and woolen Khadi, respectively. But it would be ridiculous
for anyone dressed in Khadisilk to claim that he was encouraging Khadi.
(Gandhi M. , Navjivan, 1924)

Customer

A customer is a purchaser of a product or service. Acustomer is a person or organization

that purchases or obtains goods or services from other organizations such as
manufacturers, retailers, wholesalers, or service providers. A customer is not
necessarily the same person as the consumer, as a product or service can be paid
for by one party, the customer, and used by another, the consumer.

Attitude

A mental position consisting of a feeling, emotion, or opinion evolved in response

to an external situation. An attitude can be momentary or can develop into a habitual
position that has a long-term influence on an individual's behavior. Attempts can be
made to modify attitudes that have a negative effect in the workplace, for example,
through education and training. The employee attitude survey is one tool used
to assess prevalent attitudes in the workforce. Attitude studies are often done before
and after exposure to an advertising campaign to determine the change (if any) in
attitude on the part of the consumer. The results of a before and after study will
also reflect the success of the campaign. Mental position or emotional feelings
about products, services, companies, ideas, issues, or institutions. Attitudes are
shaped by demographics, social values, and personality. As the consumer
attempts to evaluate a product, service, or the like, he or she will develop an attitude
about the thing being evaluated. In advertising, the desire is to generate
favourable perceptions towards the thing being advertised, and to promote positive
consumer attitudes.
Four Major Customer Expectations
A. Accuracy

B. Availability

C. Partnership

D. Advice.

Accuracy and availability are actions that your competitors can apply but the other
two expectations, partnership and advice, are attitudes that cannot be easily duplicated.
Most important and effective attitude to bring customer delight are as follows:

 Listen to his voice of feelings.

 Attending customer at his place.

 Best quality lower price.

 Advice him for his growth.

After sales service , at free cost, across the country. Customer must be treated like a V.I.P
Customer is to be welcomed on RED CARPET. In the 21st century customer is a real asset.

STATEMENT OF THE PROBLEM

 Day by Day new products are introduced in the Market due to Mushroom growth.
Product advertisements are also coming out frequently in all the media such
as print, internet, radio, television and out door.

 Selecting their right products Customer‟s should be more cautions about the price,
quality, profitability and reliability of the product. In order to identify the Rural
marketing product they have to visit the exhibitions conducted by Khadi bhavans in the city.
  Coimbatore city is the industrially populated city with more middle and upper
class people. Coimbatore city is the third largest city in TamilNadu which is also called
as Manchester of South India. It is one of the main industrial centre in India. So the
study conducted in Coimbatore City is more appropriate.

 The Khadi and Village industrial products are to develop the rural and urban
marketing.So the government is mainly concentrating in the KVIC to develop
the rural marketing. This will help to provide employment, producing
saleable articles and creating Self reliance amongst people, building up strong
rural community spirit. Through this research the researcher wanted to highlight
the Positive and Negative opinion about the KVIC products in the mind of Customer‟s.

MATERIALS AND METHODS

 The proposed study is descriptive and is mainly based on primary data, collected
in the year December 2021. The questionnaire prepared for the study
consisted of different sections that seek information regarding the demographic
profile, khadi awareness, and consumer behaviour towards its acceptance.

 The data was collected through a well-structured questionnaire via google

forms.The locale of the study was the four blocks of Panipat district namely
Israna, Madlauda, Samalkha, and Panipat.The sample for the study was selected
using purposive and convenient sampling techniques.

 The sample size was 292, wherein, 146 were male respondents and 146
were female respondents.The sample was equally divided according to gender
and place of residence in four blocks of the Panipat district of Haryana
where the close-ended questionnaire was executed among the youth.

 Partial responses were not considered for analysis. Statistical tools

applied were descriptive and to check the correlation of variables phi-coefficient,
and Cramer’s V were applied.
OBJECTIVES:

The main objective of the study is:

1. To analyse the consumer perception of consumers towards khadi readymade shirts.

The secondary objectives are:

1. To study and analyse the factors that influenced the purchase decision of khadi shirts among
users.
2. To analyse the relationship between availability of khadi readymade shirts in rural, urban and
semi urban areas in Ernakulam
3. To critically analyse the influence of age in consumers buying behaviour of khadi shirts.

SCOPE OF THE STUDY:

 The proposed study entitled “A Study on Marketing Practices in Handloom and
Khadi Industries in Kerala” is focusing on the marketing mix and brand image
strategies followed by Handloom and Khadi industries in Kerala.

 In this study marketing practices means marketing mix and brand image of Handloom
and Khadi textile industries in Kerala. It intends to emphasize the effect of
marketing practices on satisfaction and loyalty of Khadi/Handloom customers in
Kerala.

 For the purpose of this study, the Kerala Handloom and Khadi industries refers to
Khadi, Hantex and Hanveev textile sales outlets in Kerala only. Even though there
are a large number of factors affecting the marketing practices this study will be
considering only 4 P’s of marketing mix, namely, Product Attributes, Place
Characteristics.

 Price Affordability And Promotional Effectiveness; and Brand Image.

The study also intends to analyze how the Choice Overload of customers may
prevent the building of satisfaction and loyalty in Handloom/Khadi textile customers in
Kerala.
NEED OF THE STUDY:

 In today‟s world of rapidly changing technology, customer taste and preferences are
also characteristics by fast changes. To meet this changing environment a
firm has to constantly innovative and understand the latest customer needs and
wants.

 Customer satisfaction is a function of the products perceived performance

and his expectations. Recognizing the high satisfaction leads to high customer
who are aiming for “TCS – Total Customer Satisfaction”.

 There becomes a need for understanding the Customer‟s Attitude and

Preferences towards the Khadi and Village Industries, which help the government
as well as the companies involving (KVI) in improving the product features like quality,
packaging, pricing etc.,

 Companies now- a days concentrate more on rural segment, develop the product
on meeting of special needs of customer requirement based on the market
segmentation. Rural customerpreferences based on the Khadi and Village
Industrial products are changing and become highly diversified.

 The customer behaviour on developing the rural and urban

KVI products are always analyze to determine the underlying currents and
cross- currents in the customerminds.

 After sales service, at free cost, across the country. Customer must be treated like
a V.I.P.customer is to be welcomed on RED CARPET. In the 21st century
customer is a real asset
MISSION

“To ensure the quality of the products”

VISION

“ To provide more and more employments to Rural Unemployed youths under

Khadi and Village Industries Sectors ”

MOTTO
“ To Popularize Khadi and Village products world-wide.”

COMPETITORS

 Uncertified khadi products seller

 Ready made garments
 handlooms

CUSTOMERS

 All type of customers.

TURNOVER

 6-10 crores per year

ADVANTAGES OF KHADI

 Provides employment and hence food to poor people who spin and weave Khadi cloth.

 It is made of cotton, so farmers get money

 It is eco-friendly

 It is porous and made of cotton, so healthful.

 Austere, simple. Hence it is a statement about your lifestyle and values.

 Connects you to freedom movement, to Gandhi and to all those who believe in
his values.

 Khadi gives food to hungry stomachs and your dress become s a flag of the values you
cherish.

 Khadi clothes, which are made of hand-spun and hand-woven cotton, have several benefits
when worn in summer.

 Khadi fabric is very breathable, allowing air to circulate freely through the fibers.
This helps to keep the body cool and dry, even in hot and humid weather.

 The texture of Khadi fabric is soft and lightweight, making it very comfortable
to wear in summer. The fabric is also gentle on the skin and does not
cause irritation or rashes.
DISADVANTAGES OF KHADI

 Cost and Affordability : Khadi is often more expensive compared to machine-made

fabrics due to the labor-intensive process involved in its production. This can
make it less affordable for some consumers.

 Inconsistency in Quality : Handspinning and handweaving may result in variations

in the texture, thickness, and overall quality of Khadi fabric. This inconsistency
can be a drawback for those looking for uniformity in their textiles.

 Limited Availability: Khadi production relies on traditional handcrafting methods,

limiting its scalability. As a result, there might be challenges in meeting the
demand for Khadi, and it may not be readily available in large quantities.

 Time Consuming Production Process: Hand-spinning and handweaving are time-

consuming processes. This can lead to delays in production and may not be
suitable for those who require large quantities of fabric in a short amount of time.

 Limited Variety and Design Option: Khadi fabric may not offer the same range
of designs, patterns, and colors as machine-made fabrics. This limited variety
might be a drawback for consumers seeking a broader range of choices.

 Maintenance Challenges: Khadi fabric can be delicate and may require special care
during washing and maintenance. This can be a disadvantage for individuals
looking for low-maintenance textiles.

 Perception and Market Trends: The preference for handcrafted and traditional
products may vary among consumers. Some may appreciate the cultural and
historical significance of Khadi, while others may prioritize modern, trendy fabrics.