Final Hitesh Project

THREE MANDATORY PROJECT REPORTS ON
GENERAL MANAGEMENT, SPECIALIZATION & SOCIAL

RELEVANCE
“ORGANIZATIONAL CULTURE OF MNC VS INDIAN COMPANIES”

“A STUDY OF MARKET STRATEGY FOR LADIES’ ACCESSORIES IN
LUXURY SEGMENT”
“CORPORATE SOCIAL RESPONSIBILITY OF AMUL”
Submitted in partial fulfillment for the award of the degree of

MASTER OF MANAGEMENT STUDIES
UNIVERSITY OF MUMBAI
Submitted by Ms. VAISHNAVI S. GAWANDE

ROLL NO. 2020040
2020-2022
Under The Guidance of PROF. RAJAN GUNABALAN
LALA LAJPATRAI INSTITUTE OF MANAGEMENT

MAHALAXMI, MUMBAI – 400 034
THREE MANDATORY PROJECT REPORTS ON
GENERAL MANAGEMENT, SPECIALIZATION & SOCIAL

RELEVANCE
“ORGANIZATIONAL CULTURE OF MNC VS INDIAN COMPANIES”

“A STUDY OF MARKET STRATEGY FOR LADIES’ ACCESSORIES IN
LUXURY SEGMENT”
“CORPORATE SOCIAL RESPONSIBILITY OF AMUL”
Submitted in partial fulfillment for the award of the degree of

MASTER OF MANAGEMENT STUDIES
UNIVERSITY OF MUMBAI
Submitted by Ms. VAISHNAVI S. GAWANDE

ROLL NO. 2020040
2020-2022
Under The Guidance of PROF. RAJAN GUNABALAN
LALA LAJPATRAI INSTITUTE OF MANAGEMENTMAHALAXMI,

MUMBAI – 400 034
GENERAL MANAGEMENT PROJECT
DECLARATION
I hereby declare that this project report submitted by me to the partial fulfillment of
the requirement for the award of MASTER OF MANAGEMENT STUDIES
(MMS) of the University of Mumbai is a bonafide work undertaken by me and it has
not been submitted to any other University or institution for the award of any other
degree or diploma certificate or published any time before.
Name: Vaishnavi Sanjay Gawande
Roll No. 2020040 Signature of the student
VAISHNAVI SANJAY GAWANDE

CERTIFICATE
This is to certify that the “Organizational culture of MNC vs Indian Companies”,

has been successfully completed by Ms. Vaishnavi Sanjay Gawande during the
MMS II, SEM IV in partial fulfillment of the Master’s degree in Management Studies
recognized by the University of Mumbai for the academic year 2020-2022. This
project work is original and has not been submitted earlier for the award of any degree,
diploma or associateship of any other University / Institution.
Date : 10/04/2022
DR. V. B. ANGADI PROF. RAJAN GUNABALAN

DIRECTOR (PROJECT GUIDE)
ACKNOWLEDGEMENT
This project has been a great learning experience for me. I take this opportunity to
thank Prof. Rajan Gunabalan, my internal project guide whose valuable guidance &
suggestions made this project possible. I am extremely thankful to him for his support.
He has encouraged me and channelized my enthusiasm effectively.
I express my heart-felt gratitude towards my parents Mr. Sanjay Gawande and Mrs.
Seema Gawande, siblings and all those friends who have willingly and with utmost
commitment helped me during the course of my project work.
I also express my profound gratitude to Dr. V. B. Angadi, Director of Lala Lajpatrai

Institute of Management for giving me the opportunity to work on the projects and
broaden my knowledge and experience.
I would like to thank all the professors and the staff of Lala Lajpatrai Institute
especially the Library staff who were very helpful in providing books and articles I
needed for my project.
Last but not the least, I am thankful to all those who indirectly extended their co-
operation and invaluable support to me.
EXECUTIVE SUMMARY
Organizational culture is defined as the underlying beliefs, assumptions, values and ways of
interacting that contribute to the unique social and psychological environment of an
organization. Organizational culture includes an organization’s expectations, experiences,
philosophy, as well as the values that guide member behaviour, and is expressed in member
self-image, inner workings, interactions with the outside world, and future expectations.
Culture is based on shared attitudes, beliefs, customs, and written and unwritten rules that
have been developed over time and are considered valid.
The way the employees looks towards their organisation or their work is variably affected by
their respective organisational cultures. It has seen that the companies positive and friendly
outlook towards their employees have developed a better productivity in their employees and
hence enjoys the least attrition rates.
Hence the study is done on the organisational cultures of various MNCs and Indian
Companies, and a research is done on how the change in this mere factor has affected the
behaviour of the employees in the organisation. Also certain measures have been discussed
which can be implemented in order to achieve desired cultures in an organisation which leads
to better employee involvement. We have also discussed the perspective of the employees
towards their organisation and is certain interpretation is done from their responses.
The cultures followed by MNCs are different than that of the Indian Companies and therefore
the behaviour of the employees in their working pattern. Hence a comparative analysis is
done on the organisational cultures of MNCs and Indian Companies.
An absolute definition would allow not only for a more rigorous study of organizational
culture, but also increase our understanding of how it influences other organizational
outcomes such as productivity, employee engagement, and commitment. One thing is
undoubtedly known about culture: It is constantly being created, changed, and splintered to
ensure the success of its parent organization.
Contents of General Management Project
Chapter Description Page

No. No.
I INTRODUCTION 1
II LITERATURE REVIEW 2
III CULTURES IN SOME ORGANISATIONS 14
FACTORS OF ORGANISATIONAL CULTURES 22
EMPLOYEE INVOLVEMENT 23
IV METHODOLOGY 29
V DATA ANALYSIS AND INTERPRETATION 30

VI FINDINGS 39
VII CONCLUSION 40
VIII RECCOMENDATIONS 41
BIBLIOGRAPHY
ANNEXURE
Organizational culture of MNC vs Indian Companies
CHAPTER 1
INTRODUCTION
Organizational culture refers to the beliefs and behaviours that determine how a company's
employees and management interact and handle outside business transactions.
Organizational culture can be described, for example, as the dominant value adopt by
organization, the philosophy that guides an organization’s policy toward employees &
customer, the way things are done around the organization. A closer look at the wide array of
definitions does uncover a central theme organizational culture refer to a system of
sharedmeaning. In every organization, there are patterns of beliefs, symbols, rituals, myths, and
practices that have evolved over time. Organizational culture refers to the beliefs,
ideologies,principles and values that the individuals of an organization share.
Culture is based on shared attitudes, beliefs, customs, and written and unwritten rules that have
been developed over time and are considered valid. Culture also includes the organization’s
vision, values, norms, systems, symbols, language, assumptions, beliefs, andhabits.
The important of organizational culture are the culture decides the way employees interact at
their workplace, creating the brand image of the organization. Brings all the employees ona
common platform, represents certain predefined policies which guide the employees and give
them a sense of direction at the workplace, and the way employees interact at their workplace.
In some of the organisation employees are involved in the decision-making purpose and in
some organisation, employee is given less important.
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CHAPTER 2
LITERATURE REVIEW
Organizational culture and performance is advantageous since the cultural values are
observable and measurable. For the cultural effect on performance, it is vital that both financial
and non- financial (i.e.cultural values, norms) measures are used to get more comprehensive
results. Organizational culture and performance reveal that companies know how to develop
their cultures in an effective way most probably have the benefit of advancement in
productivity and the quality of work life among the employees. Managementshould provide a
precise guideline and direction to motivate the employees in achieving thecompany’s
objectives.
Organizational culture is an important determinant for the fit of employees to the organization.
It assert that a good fit between employee and organization is very important.The difference in
perceptions of employees with the existing values may lead to a decrease in the performance of
employees. The process of translating a new idea into a product or service that creates value to
others is called as innovation. Relationships are found amongst culture factors and the
organisation’s commitment to supportive environment, constraint freeenvironment, Research
and Development, strategic direction, technically sound team and adequate funding (Journal of
Advanced Research in Engineering & Management (IJAREM)Ms.V.Kalaiarasi,
Dr.S.Sethuram, Assistant Professor, Department of Management, SRIT).
Employee involvement, several comments involved the use of information. All employees
were concerned with communication, use and accuracy of metrics, and the relationship
between information being used to make decisions and the company direction. The
rewardsprocess was also discussed by many employees, but especially the non-managers.
Many employees were concerned about the linkage between pay and performance, and about
the company employee incentive plan that is not available for employees represented by a
union(Capella University August 2004)
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Indian Companies and Global MNCs
The Indian IT industry has grown very rapidly in the last few years. There are a whole lot of
interesting issues resulting from this growth. One of them is the evolution of the
multinationals and the Indian IT companies. What makes it interesting is the fact that both
have endured significant evolution over the years. While the MNCs are becoming more
localized in the Indian market, the Indian companies are fast adopting a global outlook.
Multinationals companies are the ones that are headquartered somewhere else and have an
operation in India. Some familiar names include IBM, HP, Accenture, EDS and CSC. On the
other hand, some of the Indian companies include TCS, Infosys, Wipro, Satyam and HCL.
Let us take a look at how the two are placed v/s each other with their respective strengths and
weaknesses.
But, today if one looks at where the two are, the situation has changed quite a bit. While the
Indian companies are increasingly enhancing their global presence, the global MNCs are
increasingly leveraging India in world sourcing. If one looks at the headcount of the top 5
Indian IT companies-TCS, Wipro, Infosys, HCL and Satyam-it is somewhere around 40,000
for the first three tier one companies and immediately followed by tier two companies at
about 20,000 employees. This compares very well with anybody in the world. Looking at the
size in terms of number of people, Indian companies are ramping up very fast and growing.
The growth in terms of headcount for Tata has been almost 30% over the last 3 years. This is
where the competition is going to be.
Even though revenue wise they are much smaller when compared with the multinationals,
that is also is growing rapidly. In terms of profits: the profits for the top 5 Indian IT
companies last year grew at somewhere around 20-30%.
Furthermore, the Indian companies are now listed on the New York Stock Exchange and
most of them are on NASDAQ. By having a listing there they are not only getting visibility
but also access to low cost capital, as the cost of capital in the US is very low as compared to
India.
The Indian companies are expanding their global outlook and reach and setting up centers
globally in the US, China, Japan, Malaysia, Czech Republic, etc. For instance, Infosys plans
to have around 25% local staff by 2012, TCS is asking every employee to learn a foreign
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language
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and Wipro CEO’s main office is in the US. So, in another couple of years, we’ll have MNCs
which are of foreign origin and MNCs which are of Indian origin.
Some of the key strengths of the Indian companies v/s the foreign MNCs is that these
companies can take a longer term perspective as they don’t have as much stock market
pressure as the typical American companies. Furthermore, in the West, every successful
company piles up a lot of debt and that is how they are able to leverage and do acquisitions.
Indian companies are not doing as many acquisitions and as a by-product of that have very
strong financials. Another factor working in favor of the Indian companies is their flexibility,
as they are not wedded to an approach. They are also investing for the future-in training and
process maturity. By contrast, the multinationals have a short-term orientation, quarter-to-
quarter focus, lack of much India experience, higher cost structure in India and higher sales
cost.
However, the multinationals score over the Indian companies in terms of their size, financial
muscle, and visibility. Even their relationships are typically at the CEO level, whereas the
Indian companies’ relationships with customers are largely at the CIO or lower level.
Multinationals are now enhancing their local presence. Most understand the change in
environment and are building and leveraging their India resources, using India as the main
offshore option, scaling up offshore strength, doing acquisitions in India, pursuing local
markets, providing end-to-end services from offshore, involving offshore in client facing
roles and pricing aggressively. Many of them are also using profit center and direct selling
approaches. Companies like IBM, HP, Accenture, CSC and even other IT MNCs like Keane,
Perot, Convergys are increasingly ramping up their Indian operations in terms of their head
count and customer base. India is becoming an integral part of their global sourcing strategy,
they are promoting India in the large deals and are investing including in acquisitions. The net
result of this evolution is that the differences between the Indian companies and global MNCs
are getting blurred in the short term but the gap will widen in the long term.
A multinational corporation (MNC) is usually a large corporation incorporated in one country

which produces or sells goods or services in various countries. The two main characteristics
of MNCs are their large size and the fact that their worldwide activities are centrally
controlled by the parent companies. Importing and exporting goods and services, Making
significant investments in a foreign country .Buying and selling licenses in foreign markets
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engaging in
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contract manufacturing—permitting a local manufacturer in a foreign country to produce

their products.
Opening manufacturing facilities or assembly operations in foreign countries MNCs may gain
from their global presence in a variety of ways. First of all, MNCs can benefit from the
economy of scale by spreading R&D expenditures and advertising costs over their global
sales, pooling global purchasing power over suppliers, and utilizing their technological and
managerial know-how globally with minimal additional costs. Furthermore, MNCs can use
their global presence to take advantage of underpriced labor services available in certain
developing countries, and gain access to special R&D capabilities residing in advanced
foreign countries.
The main characteristics of multinational companies are:
In general, there is a national strength of large companies as the main body, in the way of
foreign direct investment or acquire local enterprises, established subsidiaries or branches in
many countries.
It usually has a complete decision-making system and the highest decision-making center,
each subsidiary or branch has its own decision-making body, according to their different
features and operations to make decisions, but its decision must be subordinated to the
highest decision- making center.
MNCs seek markets in worldwide and rational production layout, professional fixed-point
production, fixed-point sales products, in order to achieve maximum profit.
Due to strong economic and technical strength, with fast information transmission, as well as
funding for rapid cross-border transfers, the multinational has stronger competitiveness in the
world.
Types of Multinational Companies
The classification of MNCs can be done based on various criteria. I will present one
criterion, that is, the relationship between the parent company and the subsidiaries.
Generally speaking, the individual firms, which bestir themselves in a given country and act
on national level only, have fewer advantages than MNCs. These advantages that the MNC
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has, can be for instance the ability to make economies of scale or to conduct research and
development, in one place, which will be served for all firms that are part of the Group. It is
obvious therefore that a national level firm can have huge motivation to expand across
borders in order to become a MNC and “acquire” these advantages.
The main types of MNCs are the following:
International
The one-direction flow of information from the parent company to its subsidiary is the main
characteristic of this type of MNC. The competencies of minor importance are transferred to the
subsidiaries, whereas the main competencies are centralized. Moreover, the research and
development is initially carried out at the parent company and it is transferred to the subsidiaries
afterwards. It can be said that in this category belong firms, which operate with lower number of
decentralized subsidiaries or they have “export department” only, and they do not plan to expand
abroad.
Global
The tight bond between the parent company and the subsidiary is the main characteristic of this
type of MNC. Furthermore, the elements that compose the ownership structure are linked with one
another but in practice the subsidiaries are directed by the parent company. As far as the research
and development, it looks quite similar to the “International” model. To be more particular, the
research and development is carried out at the parent company. The parent company has the utmost
power, since it is the one, who decides about the plans and the goals of each subsidiary. Global
structure is used by large MNCs, which own subsidiaries all over the world.
Multidomestic
The two aforementioned MNCs are more centralized than multidomestic MNCs. Every subsidiary
acts in a particular segment and due to this fact, the subsidiary is given autonomy, as a result the
subsidiary can monitor its partial contributions itself. As for research and development, it can be
carried out in each subsidiary in every country separately. This allows the appropriate adjustment
of the products or services to the concrete market (in order to match with the culture, to comply
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with the given socioeconomic situation and so on). The individual subsidiaries not only
communicate with each other but they also cooperate occasionally.
Transnational
The transnational model is a little bit different than the rest presented types. This model presents a
specific system, in which the individual subsidiaries are assigned to a particular goal or an activity,
which they develop for the rest of the subsidiaries in the Group. The research and development is
carried out in every subsidiary and it is shared among all subsidiaries, including the parent
company. In other words, the flow of information is not only from the subsidiaries to the parent
company but also there is flow of information from subsidiary A to subsidiary B.
The Organization Structure of a Multinational Company
Multinational companies are faced with two opposing forces when designing the structure of
their organization. They are faced with the need for differentiation that allows them to be
specialized and competitive in their local markets. They are also faced with the need to
integrate. The structures adopted therefore have to find a balance between these opposing needs
and also remain in strategic alignment for the company to thrive. Multinational companies have
therefore evolved many structural permutations to suit their business needs.
Subsidiary Model
Owning foreign subsidiaries is one of the most basic structural models of a multinational
company. The subsidiaries are self-contained units with their own operations, finance and
human resource functions. Thus the foreign subsidiaries are autonomous allowing them to
respond to local competitive conditions and develop locally responsive strategies. The major
disadvantage of this model however is the decentralization of strategic decisions that makes it
difficult for a unified approach to counter global competitive attacks.
Product Division
Organizational structure of the multinational company in this case is developed on the basis of
its product portfolio. Each product has its own division that is responsible for the production,
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marketing, finance and the overall strategy of that particular product globally. The product
organizational structure allows the multinational company to weed out product divisions that
are not successful. The major disadvantage of this divisional structure is the lack of integral
networks that may increase duplication of efforts across countries.
Area Division
Organization using this model is again divisional in nature, and the divisions are based on the
geographical area. Each geographical region is responsible for all the products sold within its
region. Therefore all the functional units for that particular region namely finance, operations
and human resources are under the geographical region responsibility.This structure allows the
company to evaluate the geographical markets that are most profitable. However
communication problems, internal conflicts and duplication of costs remain an issue.
Functional Structure
Functions such as finance, operations, marketing and human resources determine the structure
of the multinational company in this model. For example, all the production personnel globally
for a company work under the parameters set by the production department. The advantage of
using this structure is that there is greater specialization within departments and more
standardized processes across the global network. The disadvantages include the lack of inter
department communication and networking that contributes to more rigidity within the
organization.
Matrix Structure
Matrix organizational structure is an overlap between the functional and divisional structures.
The structure is characterized by dual reporting relationships in which employees report both to
the functional manager and the divisional manager. Work projects involve cross-functional
teams from multiple functions such as finance, operations and marketing. The members of
teams would report both to the project manager as well as their immediate supervisors in
finance, operations and marketing. The advantage of this structure is that there is more cross-
functional communication that facilitates innovation. The decisions are also more localized.
However there can more confusion and power plays because of the dual line of command.
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Transnational network
Evolution of the matrix structure has led to the transnational network. The emphasis is more on
horizontal communication. Information is now shared centrally using new technology such as
“enterprise resource planning (ERP)” systems. This structure is focused on establishing
“knowledge pools” and information networks that allow global integration as well local
responsiveness.
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Advantages of MNCs
Access to Consumers –
Access to consumers is one of the primary advantages that the MNCs enjoy over companies
with operations limited to smaller region. Increasing accessibility to wider geographical
regions allows the MNCs to have a larger pool of potential customers and help them in
expanding, growing at a faster pace as compared to others.
Taxes and Other Costs –
Taxes are one of the areas where every MNC can take advantage. Many countries offer
reduced taxes on exports and imports in order to increase their foreign exposure and
international trade. Also countries impose lower excise and custom duty which results in high
profit margin for MNCs. Thus taxes are one of the area of making money but it again
depends on the country of operation.
Overall Development –
The investment level, employment level, and income level of the country increases due to the
operation of MNC’s. Level of industrial and economic development increases due to the
growth of MNCs.
Technology –
The industry gets latest technology from foreign countries through MNCs which help them
improve on their technological parameter.
R&D –
MNCs help in improving the R&D for the economy.
Exports & Imports – MNC operations also help in improving the Balance of payment. This
can be achieved by the increase in exports and decrease in the imports
.
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Disadvantages of MNCs
Laws –
One of the major disadvantage is the strict and stringent laws applicable in the country.
MNCs are subject to more laws and regulations than other companies. It is seen that certain
countries do not allow companies to run its operations as it has been doing in other countries,
which result in a conflict within the country and results in problems in the organization.
Intellectual Property –
Multinational companies also face issues pertaining to the intellectual property that is not
always applicable in case of purely domestic firms
Political Risks –
As the operations of the MNCs is wide spread across national boundaries of several countries
they may result in a threat to the economic and political sovereignty of host countries.
Loss to Local Businesses –
MNCs products sometimes lead to the killing of the domestic company operations. The
MNCs establishes their monopoly in the country where they operate thus killing the local
businesses which exists in the country.
Loss of Natural Resources –
MNCs use natural resources of the home country in order to make huge profit which results
in the depletion of the resources thus causing a loss of natural resources for the economy
Money flows –
As MNCs operate in different countries a large sum of money flows to foreign countries as
payment towards profit which results in less efficiency for the host country where the MNCs
operations are based.
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Organizational Culture in Indian Organizational Culture in Multi-

Companies national Companies
Indian employee will need to work in Day 24x7 working environment, minimum 10
shift only, some companies are now hours job and can go up to 11 hours.
following 24x7. 9 hours job.
Indian companies have an average Big flashy infrastructure, so many things

infrastructure and they will not bend for extra activities, like (Snooker, TT,
towards extra activities facility Gym, Big halls etc)
Employees can find politics here along Employees feel competition here, people
with competition. always try to give their best to beat each
other and employee will always feel
motivated.
Technology is not that developed due to MNC’s is playing a vital role in the
which Indian companies is still globalization of world economy.
developing their strategy and business
model to grow rapidly.
Indian companies have their headquarters Multinational companies are the one that
in India itself and can be located at any have headquarters somewhere else and
state in India. have operation in India.
Indian employees are given multiple In MNC employees are allowed

activities pertaining to different job role, specifically to stick to their job role and
For example an accountant will be given a no different activities should be
task to handle a promotional event of the undertaken by them
company
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MNC is a multinational corporation that operates in resident country and in other countries
as well. The culture of MNC is different in one country and varies depending on the culture
organisation of that country. For instance, the culture in a Japanese company differs greatly
from an American company, Japanese employees embrace a group mentality & look their
superiors for approval before making big decision whereas employees in American
business culture tend to be self-motivated.
Different organisations have different culture. Where it is an Indian organisation or MNC

similarly they have different work culture. In some of the organisations employee are
involved in the decision-making purpose and in some organisation, employee are given
less important. India company have eco-friendly team work culture where as in
Multinational company give Health insurance, free snacks, paid vacation.
Referring the above instance, the culture of Indian companies can be derived, in some
Indian company employees are not allowed in decision making process whereas in some
firm they allow.
In Japan if someone leaves at the "normal time" they are looked down upon by their co-
workers as being lazy or careless.
Both the type of the organisation works different and culture varies, there is no scope of
uniformity between the culture and decision making of employee.
Hence a study is made on the organisation culture of MNC & Indian Company to know
their behavioural difference, to understand & analyse the approach towards working
environment to know the organisational structure difference between both.
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CHAPTER 3
CULTURES IN SOME ORGANISATIONS
1. Motilal Oswal
Motilal Oswal company culture is created by the self-motivated, committed professionals

who work here. With a core focus on values such as meritocracy, continuous learning,
passion and teamwork; we ensure the win-win partnership for our employees and clients
alike.
It also introduced a mobile app to its employees that has a method of marking attendance,
applying for leaves and other benefits. With the help of the app, staff members of the
company mark their attendance through cell phones by switching on their location. Also,
they can apply for leaves easily through this digital platform.
The Chairman and Managing Director of Motilal Oswal Financial Services says,
“Technology has become the business itself and hence it is imperative to transform
processes through the use of digital and technology while driving the business.”
Amongst the benefits of using this app, the biggest advantage identified by the company is
the experience of going paperless through the adoption of new technology. The app also
allows employees to wish their colleagues on their birthdays or anniversaries.
Company has also introduced virtual learning classroom for the staff; and has adopted
hiring analytics for improving the candidate experience.
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Motilal Oswal Smart watch App
The Motilal Oswal smart watch App is India 's first Smart Watch App, and the fastest and
most convenient way for you to stay on top of all vital information associated with your
investments. This app enables you to be updated with notifications and alerts on latest market
statistics, positions/limits updates right from their wrists. It provides you with real-time
trading alerts when you’re on the move, in a meeting, on the treadmill, in a movie or grabbing
lunch.
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2. TATA Consultancy Services
The work culture at TCS is bifurcated in two aspects; there is the organization work culture
which follows the Tata Group ethics and beliefs, good learning atmosphere and also a
healthy place to work at. The other is the project specific work culture, as there are
different client, the project culture varies according to the client and the work needs. But
the overall culture is filled with learning and growth option.
TCS has the work evaluation process twice a year,once for the appraisal and once for the
review, which helps employees assess their workingcapabilities, There are timely seminars,
webinars, trainings, workshops and other such eventsto promote learning.
TCS also encourages its employees for continuous learning and certification drives to
promote a more competitive and better working atmosphere. there are various training
programs available for the associates; we have a learning and Developmentcell which
conducts trainings across various technological platforms, also around better working
skills, communications skills, managerial skills, work life balance etc.
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Plus apart from this, the HR department of every project keeps a fun work event once
every month to promote a healthy working culture.
This is basically for the ethics and culture of work that we find with the company. We do
not call anyone sir/mam even the CEO is called by the first name. Also TCS does not call
its employees as employees they call us associates. Plus the timely review process at
various levels, the apt compensation and the services at the disposal are really good at
TCS. Technical associates report to the team lead, he reports to the project lead, the project
lead reports to the project manager and the project manager reports to the group manager.
But the best part is, all the managers for the project/domain are present at the same location
and are accessible to everyone. So the hierarchy is put acrosswell and is also easily
accessible.
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3. Reliance Industries Limited
A visible culture change is taking place at India’s largest private sector company, Reliance
Industries (RIL) is getting younger with average age reducing and there is no diktat on
formal dressing at work either sporting facilities such as a cricket stadium, a football and
basketball ground have come up at its Navi Mumbai campus while the canteen there boasts
of around 16 different cuisine facilities are being utilised by employees throughout the days
, indicating that they are taking charge of their work-life on working days.
On weekends, the campus isthrown open to the families of employees. enterprise provided
flexible working hours to employees, it has also extended maternity benefits, allowing
women to work half-day for a few months after maternity leave. The average age of
employees at RIL too has come down.The average age in retail and telecom is 27-28 years,
while in the non- consumer facing side itis 32. The company has also moved from a six-day
work week to a five-day one. The management said that providing flexibility at work has
not compromised on productivity.
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4. HP
A culture where employees know and understand each other can protect the company from
many bumps and bruises that occur. It’s important the company protects its core values.
The executives must understand how the values of each company will fit together. At
Hewlett Packard, the company's core value meant innovating, and contributing.
When a company, like Hewlett Packard, fails to integrate these core values into their way
of business, it eventually fails. Employees from every department must understand the core
values the company believes in. Freedom to choose projects and working atmosphere to
enable to get the maximum output from employee and maintain employee satisfaction.
People stick to their roles and are afraid of taking challenges and risks. Too much of
management and hierarchy kills the overall work environment.
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5. Apple
Apple organizational culture are creativity and innovativeness, working under pressure and
high level of secrecy. Creativity and innovativeness of Apple pursues the business strategy
of product differentiation with the focus on the design and functionality of products and
services. An effective implementation of this strategy in practice requires a high level of
creativity and innovativeness from employees at all levels.
In order to encourage their employees to be more creative and innovative, the company
attempts to develop relevant working environment. Creative design of Apple Campus,
informal dress codes and creatively designed working space. Ability to work under
pressure is a must-have skill for Apple employees at all levels. Most projects have strict
and challenging deadlines and working long hours is a norm in the company. CEO Tim
Cook sets example in terms of his loyalty to the company and working long hours. He is
known for sending emails to employees at 4:30 am. Moreover, Sunday is a work night for
many managers at Apple because of the executive meeting the next day.
High level of secrecy is an important feature of Apple organizational culture. It has been
noted that “Apple engineers, even senior engineers, have no idea what a final Apple
product will look like until it is launched. The people who work on the software have no
idea what the hardware is like, and the hardware guys have no idea of the software”. Apple
attempts to integrate diversity and inclusion as a cornerstone of its organizational culture.
2
Factors of organization culture are Productivity, leadership,

communication, participation & creativity
Productivity – Motilal Oswal has come up with new style of communication through their
mobile app and as well wrist watch. These will increase their productivity. It measures at
the individual or group level direct behaviours to the business unit goals, if properly
aligned.
Leadership- It refers to the process of influencing others to follow enthusiastically towards

realization of shared goals. Influence is a two- way process. The leader influences and is
influenced by followers
Communication- Motilal Oswal has come up with new style of communication through
their mobile app and as well wrist watch. It is a process of exchanging information and
understanding between people. Example
Creativity- As we all know Apple is known for the creativity. They believe in innovation.
2
Employee Participation- Participation of employees in decision making is understood as
making up one’s mind. It can be done alternatives. Employee involvement basically means
to create an environment where people tend to have an impact on the actions as well as the
decisions that are about to affect their jobs. Like suggestion box,employee survey,
leadership teams
WHY YOU SHOULD EMPLOYEE HAVE INVOLVEMENT IN DECISION

MAKING?
Involving employees in decision making can be beneficial for the business and employees.
When you let employees help with decisions, it shows that you trust them. Even if you only
let employees give input to assist you in making the final decision, you still show that you
value their opinions. Asking employees for their opinions can give you different
perspectives to make better decisions.
While you have an overarching idea of your business, your employees are in the day-to-day
trenches. Employees often work more closely with customers, so they know what buyers
need and request. Employees can also come up with revenue-generating and cost-saving
ideas. Letting employees make decisions frees you up for work in other areas. Employees
will give not give their opinions simply. Below are threeways you can let employees help
you make decisions.
2
METHOD OF EMPLOYEE INVOLVEMENT IN DECISION MAKING
 Suggestion Box
Gathering good ideas is the first step to making good decisions. Create a system for
employees to give you their suggestions. This might be a physical suggestion box. It might
have a digital alternative, such as a designated email or online form. This helps the
company to make timely decisions. When employees give you suggestions, respond to
them. Tell them how you will use their ideas. If the idea isn’t right at the time, make a note
of it.
 Employee Surveys
regularly survey employees to get their feedback. Company might use a paper or electronic
survey. The surveys can help the company learn their opinions, ideas, and level of
satisfaction. When determining how to do a performance review, make sure you include a
short employee survey. After you give employees feedback, ask them to give you
feedback. Their responses can help you make decisions that will help the business and their
positions improve.
 Leadership Teams
you might set up leadership teams, or committees, at the business. The people on these
teams don’t have to be managers. The teams can comprise any employees. The leadership
teams might have a general focus on the business or can create specific teams. For
example, you might have a team that focuses on marketing decisions and another team that
focuses on developing your products or services. The teams should regularly meet to
generate ideas and make decisions. Or, you might set up a communication channel for
ongoing conversation. Committee members should feel free to give input about upcoming
decisions.
2
ADVANTAGES OF EMPLOYEE INVOLVEMENT
1. Employee Feel valued
The good part about employee involvement is that the employees will begin to feel like
they are a part of a team. It will make them feel valued. When most associates are involved
in the same perception of decision making, it will help them see each other as capable.
They will soon have their own management and ownership positions at work, show more
commitment and effort which will help the company reach great heights of success.
2. Can make even better decisions
The associates happen to make much better day to day decisions since they have proper
information about the company and its current issues. When people sit together and work
on
2
something, it is quite obvious that the decisions will be much better. In fact, there will be
new and creative ideas floating all the time at the workplace. To keep things short, we can
say that employee participation is a great way to get more people involved so that the
decisions made in the process are better.
3. Feel more responsible
The associates will also feel a much bigger and stronger sense of responsibility when it
comes to making decisions. When employee become responsible for making a decision
andthat decision turns out to be a horrible one, employee do whatever is possible to make
corrections and turn things right as quickly as possible. The same is actually quite true for
others. When associates have been involved in making such decisions, the chances will
increase the chances of success since most members belonging to the team have been
committed to correcting the parts of such decisions that are not aligned with the vision and
values of the company.
4. Will focus on problem
When there is energy participation inside the company, there are chances that the problems
shall be focused on more. There will be changes made in the management and solutions
shall be found in the current problems the market is facing. Employee who aren’t involved
in decision making shall also help and give away some really great comments that will help
the company grow. When there are more employees, there is a bigger chance of seeing
creative solutions to problems since there are so many people with so many differing ideas.
5. People are motivated
With employee involvement, the motivation and morale are much higher in most
organizations since the associates will be involved in the decision-making of the company.
When people have been involved the process of decision making, they will know how to
make a difference in the success of the company or its department.
2
DISADVANTAGES OF EMPLOYEE INVOLVEMENT
1. Risks of security
A journal published by management study guide once said that security risks can increase
if there are more people in the workplace. This typically means that sharing valuable
information and data with a larger chunk of employees could become a huge risk. There is
some information which is needed to make important decisions and we understand if we
want to give that away but always remember that data that is of sensitive nature shouldn’t
be passed on so easily since it comes with a threat.
2. Traditional authority of management
Another disadvantage of participative management is that most employees shall have a

much tougher time when it comes to recognizing the difference between employee and
management levels. When you are removing the fine barrier between employees and
2
management and the employee is still an essential purpose of such management,

thecompany still must have properly designated leaders so that they can avoid the need for
uncertainty or chaos of command when they are difficult situations enter our lives.
3. Not everyone has strong desires for creativity and achievement, or they satisfy these
sufficiently off the job.
4. Participation is time consuming, and if decisions are made by groups, reaction to changing
environments may be particularly slow.
5. Sharing information with unions raises their bargaining power, so companies may lose.6
Cooperating with management may lower unions' legitimacy with members, so they may
lose as well.
3
CHAPTER 4
METHODOLOGY
The survey technique is intended to secure one or more items of information from a sample
of respondents who are representatives of a larger group. The information is recorded on a
form known as questionnaire. As data are gathered by asking questions from persons who
are believed to have desired information, the method is known as questionnaire technique.
REASONS FOR WIDE USE OF THIS METHOD:

It can secure both quantitative and qualitative information directly from the respondents.
It is the only method of directly measuring attitudes and motivations.
It is quite flexible in terms of the types of data to be assembled, the method of collection or
the timing of research.
PRIMARY SOURCE: Primary sources of data are the data which needs the personal
efforts of collect it and which are not readily available. Primary source of data are the other
type of source through which the data was collected. The data has been collected directly
from respondent with the help of structured questionnaires.
QUESTIONNAIRES: It is the set of questions on a google form which was being given to
the Employee to fill it, bases on which the data was interpreted.
SECONDARY SOURCE: - Secondary source of data is collected by someone other than

the user.
3
CHAPTER 5
DATA ANALYSIS & INTERPRETATION
The study of organizational culture MNC’s & Indian companies, especially the impact of
employee decision making.
a. Sample size 40 respondents in MNC’S & 40 from Indian companies.
In your Organizational view culture through?

35%
30%
25%
20%
15%
10%
5%
0%
Stories Symbol Rituals Goals All of the above
MNC'SIndian companies
INTERPRETATION
 In MNC’S organizational view culture through there symbol most of the time i.e. 30% and
17.5% employee say that organizational view culture through stories, symbols, rituals &
goals
 In Indian companies organizational view culture through the goals most of the time i.e.
32.5% and whereas 20% employee say that organizational view culture through stories,
symbols, rituals & goals
3
Does every manager has the authority to make decision for his/her department?
90%
80%
70%
60%
50%
40%
30%
20%
10%
Yes No Maybe
0%
INTERPRETATION
 In MNCs 80% responses said that Managers have the authority to make decision for
his/her department
 Whereas in Indian companies 82.5% said yes that the that Managers have the authority to
make decision for his/her department
3
A conscientious attempt is made to consider everyone’s view before a decision
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
MNC'S Indian companies
Yes a lot of attemptNot at all
INTERPRETATION
 In MNCs a lot of conscientious attempt is made to consider everyone’s view before a

decision is made (i.e. 62.5%) which is more than Indian companies. Indian companies is
47.5%.
3
Does your company have HR policies to cope up with employee’s grievance
90%
80%
70%
60%
50%
40%
30%
20%
10%
Yes No Don’t Know
0% MNC'SIndian companies
INTERPRETATION
 MNCs have more HR policies than Indian companies to cope up with employee’s
grievances and employee related problems (i.e. 85%)
3
Mark the activities that are being practiced in your company (1 or more)
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00% Yoga/ meditation Motivation lecture Spiritual classes Employee counselling
INTERPRETATION
 In MNCs employee counselling is done more. (I.e. 69.2%)
 Whereas in Indian companies motivation and spiritual classes is done more (i.e. 32.5%)
3
Organisational take care of your?

50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Medical insuranceSalary reimbursement Social securities Travel
INTERPRETATION
 From the 40 responses of MNC’s, 40% employee told that organisational take care of their
salary reimbursement, 35% said their organisational take care of their Social security’s
where as 12.5% said their organisational take care of their Medical insurance and Travel
 From the 40 responses of MNC’s, 45% said their organisational take care of their salary
reimbursement, 35% said there organisational take care of their Social security’s where as
15% said there organisational take care of their Travel.
3
Organisational has a positive value system that people understand and believe?
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
Strongly Disagree Disagree Neutral Agree Strongly Agree
INTERPRETATION
 80% respondents working in MNCs agree with the statement that the organization has a
positive value system that people understand and believe in.
 41% respondents working in Indian companies agree with the statement that the
organization has a positive value system that people understand and believe in.
3
Management actively solicits inputs from employees before major decision are m
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
MNC's Indian Companies
No, not at allYes, a lot
INTERPRETATION:
 85% from MNCs insists output from employees before major decisions are made.
 Whereas only 52.5% Indian companies insists output from employees before major
decisions are made.
3
Does your company use suggestion box?

60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Yes No Maybe
+
INTERPRETATION
 From the 40 responses of MNC’s, 37.5% employee told their organisational have
suggestion box &32.5% employee said no they do not have suggestion box in their
organizational
 From the 40 responses of MNC’s, 50% employee told their organisational have suggestion
box & 22.5% employee said no they do not have suggestion box in their organizational
4
CHAPTER 6
FINDING
 Indian Company Managers have slightly more authority to make decision for their
department as compare to MNC’s
 In MNCs employees are a part of decision making to an extent whereas in Indian

companies the employees aren’t given much importance in this context
 MNCs have more HR policies than Indian companies to cope up with employee’s
grievances and employee related problems
 In MNCs employee counselling is done more, whereas in Indian companies, motivation

and spiritual classes is done more. This create connection between employees and results in
better productivity
 MNCs & Indian companies takes care of employees Salary reimbursement and Social
securities is given less important in both the companies.
 In MNCs most of the employee agree with the statement that the organization has a
positive value system that people understand and believe in and in Indian companies less
employees agree with the statement that the organization has a positive value system that
people understand and Believe in.
4
CHAPTER 7
CONCLUSION
This research has provided the result regarding to study of the Organizational Cultures of
MNC and Indian Companies.
 MNCs are more influenced by productivity factor and Indian companies by

Participation factor.
 In MNCs employees are a part of decision making to an extent whereas in Indian
companies the employees aren’t given much importance in this context.
 MNCs takes care of employee’s Medical insurance whereas in Indian companies
top authorities think employees are happy when their Salary reimbursement is done
properly.
 In MNCs employees respect each other’s perspective and work accordingly
whereas in Indian companies objective things are given more importance.
 Indian Company’s Managers have slightly more authority to make decision for
their department.
 MNC’s have more HR policies than Indian companies to cope up with employee’s
grievance & employee related problem. Indian companies use high number of
suggestion box as they believe employee have better innovation idea in them.
 Indian Culture is based on relationships while the western ones are transaction-
based. Indian companies will compensate with performance of long term
employees, while MNCs practice perform-or-perish.
 Indian Companies usually have day shift with 9 working hrs. while MNCs have 24
hour work culture with min. 10 working hrs.
 Indian Companies have simple infra while the MNCs have fancy infra with
amenities like canteens, Bunkers, sports area, etc.
 MNCs are ready to opt for new changes easily while it takes considerable time for
the Indian companies
4
CHAPTER 8
RECOMMENDATIONS
 In Indian companies, the employees are not given more importance when it comes to
decision making, hence, Indian companies should adopt this culture of making
employees part of decision making.
 Indian companies should frame more HR policies for employees. Employees in Indian
companies have less sense of belongingness as compared to the employees in MNCs.
Hence, Management should try developing sense of belongingness in their employees.
 Indian companies should invest their time and money in training their employees with
latest skills and technology.
 MNCs should improve the work – life balance of their employees.
 Indian companies should develop a positive environment at workplace.
4
Organizational culture of MNC vs Indian
BIBLOGRAPHY
1. https://www.researchgate.net/publication/224008707_Literature_Review_on_Organization
al_culture_and_its_Performance
2. https://gothamculture.com/what-is-organizational-culture-definition/
3. https://www.managementstudyguide.com/importance-of-organization-culture.htm
4. Organisational behaviour (K. Aswathappa)
5. https://www.peoplematters.in/news/technology/hr-goes-digital-for-motilal-oswal-
financial- services-14980
6. https://www.slideshare.net/nishchal/motilal-oswal-financial-services-ltd-987318
7. https://content.wisestep.com/advantages-disadvantages-employee-involvement/
8. https://content.wisestep.com/advantages-disadvantages-employee-participation/
9. https://www.ukessays.com/essays/management/organisational-culture-and-employee-
perspective-management-essay.php
10. http://timesofindia.indiatimes.com/articleshow/63932380.cms?utm_source=contentofintere
st&utm_medium=text&utm_campaign=cppst
11. https://www.indeed.co.in/cmp/Hewlett-Packard-
Enterprise/reviews?fcountry=IN&floc=Bengaluru%2C+Karnataka
12. https://research-methodology.net/apple-inc-report-2-2/
13. https://blog.impraise.com/360-feedback/hewlett-packard-packs-up-its-innovative-
culture- performance-review
14. http://smbp.uwaterloo.ca/2018/05/employee-engagement-in-every-cup-a-starbucks-case-
study/
ANNEXURE
Name:
Email:
Gender
 Male
 Female
 Prefer not to say
Age
 18-25
 26-35
 36-50
 More than 51
Educational Qualification
 HSC
 Graduation
 Post-Graduation
1. In your Organizational view culture through?
 Stories
 Symbol
 Rituals
 Goals
 All of the above
2. Does every manager has the authority to make decision for his/her department?
 Yes
 No
3. A conscientious attempt is made to consider everyone’s view before a decision is made?
 Not, at all
 Yes, a lot of attempt
 Somewhat
4. Does your company have HR policies to cope up with employee’s grievance and
employee related problem?
 Yes
 No
 Don’t know
5. Mark the activities that are being practiced in your company (1 or more)
 Yoga/ meditation
 Motivation lecture
 Spiritual classes
 Employee counselling
 Team outing
6. Organisational take care of your
 Medical insurance
 Salary reimbursement
 Social securities
 Travel
7. Organisational has a positive value system that people understand and believe?
1. Strongly Disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly Agree
8. Management actively solicits inputs from employees before major decision are made?
 No, not at all

 Yes, a lot
9. Does your company use suggestion box?
 Yes
 No
SPECIALIZATION PROJECT
DECLARATION
I hereby declare that this project report submitted by me to the partial fulfillment of the
requirement for the award of MASTER OF MANAGEMENT STUDIES (MMS) of
the University of Mumbai is a bonafide work undertaken by me and it has not been
submitted to any other University or institution for the award of any other degree or
diploma certificate or published any time before.

CERTIFICATE
This is to certify that the “A Study of Market Strategy for Ladies Accessories in
Luxury Segment”, has been successfully completed by Ms. Vaishnavi Sanjay
Gawande during the MMS II, SEM IV in partial fulfillment of the Master’s degree in
Management Studies recognized by the University of Mumbai for the academic year
2020-2022. This project work is original and has not been submitted earlier for the
award of any degree, diploma or associateship of any other University / Institution.
Date : 10/04/2022

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY
With the substantial increase in the standards of living, more people are inclining towards
towards the premium products. Ladies accessories is one of them where manufacturers see
huge potential for business. Hence large number of big brands has come up with their
products in market.
But as these brands falls under the premium category, the companies have to implement many
strategies to uplift their brands from their competitors.
The Study is done on various marketing strategies adopted by some of these luxury brands in
women accessory segment. Also the impact of these strategies on customers is analysed
which has affected the perception of people towards these brands.
We have also used various marketing tools in order to study these strategies adopted by the
companies, and hence a comparative study is done of marketing patterns of these brands in
luxury segment.
A growing number of young working women (with high paying jobs) and having an increased
awareness of global fashion and beauty trends are driving up the demand for high-end luxury
products and accessories across various segments, be it jewellery, watches, apparels,
footwear, cosmetics and others. Jewelry, watches, apparel and accessories, personal care and
electronic products are the top five categories for women luxury buyers in aforesaid centers.
Rising purchasing power, growing awareness of global brands and the penetration of luxury
products' distribution well beyond large metros to other smaller cities will contribute to the
growth of luxury industry in India as we go ahead, the survey stated.
Contents of Specialization Project
Chapter Description Page No.

No.
I INTRODUCTION 1
II REVIEW OF LITERATURE 3
III STRATEGY USED BY BRANDS 25
IV METHODOLOGY 55
V DATA ANALYSIS AND 58

INTERPRETATION
VI FINDINGS 66
VII CONCLUSION 68
VII RECCOMENDATIONS 69
BIBLIOGRAPHY / REFERENCES
ANNEXURE
51
A Study of Market Strategy for Ladies Accessories in Luxury Segment
CHAPTER 1
INTRODUCTION
The project highlights on “A Study of Market Strategy for Ladies Accessories in Luxury
Segment” The main purposes of the study is to determine the Market Strategy of Brand for
Ladies Segment and Customer Buying Pattern.
The Objectives of the study is to study market strategy of ladies accessories, to study and
analyse brand management for ladies accessories in luxury segment and also understand the
consumer buying pattern. The limitation of the project is only based on luxury segment and
the study is limited to Mumbai area during the short span of time.
The scope of project is done in South Mumbai. The brand which are used to study the market
strategy are Chanel, Louis Vuitton, Manolo Blahnik, Tiffany & co., Versace, & Gucci.
The research methodology adopted for this study is descriptive. Descriptive study is
undertaken in order to understand the consumer buying pattern and the market strategy in
ladies accessories on luxury segment.
A fashion is an event put on by a fashion designer to showcase their upcoming lineof

clothing /or accessories during Fashion Week. Fashion debut every season, particularly the
Spring/Summer and Fall/Winter seasons. This is where the latest fashion trends are made. The
two most influential fashion weeks are Paris Fashion Week and New York Fashion Week,
which are both semi-annual events.
In a typical fashion, models walk the catwalk dressed in the clothing or accessories created
by the designer. Clothing is illuminated on the runway using various forms of lighting and
special effects. The order in which each model walks out wearing a specific outfit, is usually
planned in accordance to the statement that the designer wants to make about their collection.
It is then up to the audience to not only try to understand what the designer is trying to say,
but also to visually deconstruct each outfit and try to appreciate the detail and craftsmanship
of every single piece.
Occasionally, fashion take the form of installations, where the models are static, standing or
sitting in a constructed environment. A wide range of contemporary designers tend to produce
their shows as theatrical productions with elaborate sets and added elements such as live
music.
1
A Study of Market Strategy for Ladies Accessories in Luxury
Jewellery consists of small decorative items worn for personal adornment, such as
brooches, rings, necklaces, earrings, pendants, bracelets, and cufflinks. Jewellery may be
attached to the body or the clothes. From a western perspective, the term is restricted to
durable ornaments, excluding flowers. It is one of the oldest type of artefact – with 100,000-
year-old beads made from Nassarius shells thought to be the oldest known jewellery. The
basic forms of jewellery vary between cultures but are often extremely long-lived; in
European cultures the most common forms of jewellery listed above have persisted since
ancient times, while other forms such as adornments for the nose or ankle, important in other
cultures, are much less common.
Jewellery may be made from a wide range of materials. In most cultures jewellery can be
understood as a status symbol, for its material properties, its patterns, or for meaningful
symbols. The patterns of wearing jewellery between the sexes, and by children and older
people can vary greatly between cultures, but adult women have been the most consistent
wearers of jewellery; in modern European culture the amount worn by adult males is
relatively low compared with other cultures and other periods in European culture.
Clothing may make up the majority of an outfit, but significant than you may think. You
might find yourself spending just as much time shopping for accessories as you do for clothes
— and rightfully so.
We can also look to an iconic fashion icon like Iris Apfel, who has been known to say things
about the importance of accessories like, "My mother knew if you bought a couple of really
good architectural outfits and put your money into accessories, you could create a million
different looks; she taught that to me, which I think was invaluable."
Clothing is a staple. It keeps us warm, protect us from sun rays and accentuates our bodies.
However, life will be dull if there will be only clothes to play with. In fact, we will look so
uniformed and our personalities and style will be hidden inside us.
Accessories, is not only limit to jewellery. It also includes handbags, sunglasses, belts, shoes
are also part of accessories. And we never say, no. Woman nowadays don’t live without a
single accessory in their wardrobe.
2
CHAPTER 2
LITERATURE REVIEW
A fashion accessory is an item used to contribute, in a secondary manner, to the wearer's

outfit, often used to complete an outfit and chosen to specifically complement the wearer's
look. It has the capacity to further express an individual’s identity and personality as there are
accessories that come in different, shapes, sizes, hues etc. The term came into use in the 20th
century.
Fashion accessories can be loosely categorized into two general areas: those that are carried and
those that are worn.
Accessories that are worn may include jackets, boots and shoes, cravats, ties, hats, bonnets,
belts, suspenders gloves muffs, necklaces, bracelets, watches, sashes, shawls, scarves, lanyar
ds, socks, pins, piercings, rings, and stockings.
The type of accessory that an individual chooses to wear or carry to complement their outfit
can be determined by several factors including the specific context of where the individual is
going. For example, if an individual is going to work their choice of accessory would differ
toone who is going out to drinks or dinner thus depending on work or play different
accessories would be chosen. Similarly, an individual's economical status, religious and
cultural background would also be a contributing factor.
Fashion is a popular style, in clothing, footwear, lifestyle, accessories, makeup, hairstyle and
body Fashion is a distinctive and often constant trend in the style in which people present
themselves. A fashion can become the prevailing style in behaviour or manifest the newest
creations of designers, technologists, engineers, and design managers.
3
Advantages of luxury brands
 Sign of High Standard of Living:

The consumption of more and more items of luxuries is a symbol of high standard of living.
The United States is known as a developed country because there standard of living is very
high and they consume more and more luxuries.
 Development of Art and Craft:

The consumption of luxuries helps in the development of art and craft. When rich people
purchase costly items of art and paintings, it gives incentives to the workers. The poor worker
always tries to make an improvement in there art or craft because of the high prices available
for new designs.
 Stimulus to New Inventions:

To produce different types of luxury goods, producers make new inventions. Therefore, the
use of luxuries gives incentives to new inventions.
 Reduction in Inequality:
Production of luxuries helps in reducing the inequalities of wealth distribution in the society.
Artists are generally from the poor class who prepare articles of art. Rich persons are
accustomed to purchase these luxurious goods. In this way, wealth is transferred from the
rich to the poor workers which reduce the income and wealth inequalities in the country.
 Income to Government:
Certain luxuries are a major source of income to the Government. The government collects
money by imposing taxes on luxuries brands.
4
Disadvantage of Luxury brand
 Decrease in Efficiency:
The consumption of luxuries sometimes causes a decline in the efficiency and ability to
work. The use of opium and liquor decreases the efficiency to work of a person.
 Wastage of Resources:
Our resources are limited. These scarce resources are wasted in the production of luxury
goods. It creates a further shortage of the resources for the production of necessities. From
the social point of view, the resources used in the production of luxuries are simply a waste.
 Spread of Dissatisfaction:
Only a very small group in the society uses luxuries and the majority of people restrict their
consumption to bare necessaries of life. As a result, the feelings of dissatisfaction and
jealousy arise in the mind of the poor which lead to social unrest.
 Home production reduce

There are less number of customer who use luxury brands goods. Indian customer believe in
foreign goods more than Indian production. Consumption or uses of brand are less than the
local item.
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Key Trends Shaping the Luxury Industry
As the global economy regains its strength and the middle classes in developing economies
expand, sales of luxury goods and experiences are on the rise.
The 16th edition of Bain & Company's 'Luxury Goods Worldwide Market Study' found that
the global luxury market is estimated to have grown to almost EUR1.2 trillion (USD 1.4
trillion) in 2017 - a 5% increase over the previous year.
This is promising news for the luxury industry - let's take a look at five key trends that are
shaping the market.
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Spending Increases Across Nearly All Segments

 Bain & Company tracks nine segments across the global luxury market - personal luxury
goods, luxury cars, luxury hospitality, luxury cruises, designer furniture, fine food, fine wines
and spirits, private jets and yachts, and fine art - of which luxury cars, hospitality, and personal
goods account for more than 80%.
 Luxury cars is the most significant segment by size, growing 6% in 2017 to EUR489 billion
(USD 571 billion). Personal luxury goods claim the second spot at EUR262 billion (USD 306
billion), up 5%, with luxury hospitality taking third, coming in at EUR191 billion (USD 223
billion), a 4% increase.
 Luxury cruises saw the fastest level of growth - up 14% - though remains the smallest
segment at EUR2 billion (USD 2.34 billion). The only segment to see a decline was private jets
and yachts
- down 2% to EUR23 billion (USD 26 billion).
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Personal Luxury Goods Rebound, Spurred by Sustained Growth in Key Regions
 The luxury personal goods market experienced growth across all regions. Europe saw the
most significant increase at 7%, taking the top spot from the Americas to claim the largest
share of the global market - 33% vs. 32%.
 China, however, was the year's top performer, increasing its share of the market from 7% in
2016 to 8% in 2017, with growth up at 18% - the most significant level of growth by far.
Fueled by renewed customer confidence and the rapidly emerging and fashion-conscious
middle class, local buying by Chinese customers boosted sales in mainland China by 15%,
making it a crucial EUR20 billion (USD 23 billion) market for luxury brands.
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Online Sales Continue to Grow
More and more luxury sales are taking place online and could make a significant impact on
physical store sales in the longer term.
Luxury online sales jumped 24% in 2017, reaching an overall market share of 9%. Bain
estimates that by 2025, online sales of personal luxury goods will make up 25% of the total
market.
Online options are most frequently used for accessories (41%), apparel (26%), and beauty items
(18%). The Americas took the largest share of online sales at 47%, followed by Asia and the
Rest of the World at 28%, and Europe at 25%.
"With the remarkable growth of the online channel, the role of physical stores will need to
change," writes Bain. "Stores haven't lost their purpose, but brands need to reinvent them to
better engage with customers, in a way that transcends channels. Stores will have to pivot from
a transactional role to become venues for a broader range of customer interactions. Luxury
brands have grown accustomed to presenting a monologue about themselves in stores that feel
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like temples. Increasingly, they will need to transform stores into places that feel like home,
delivering
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distinctive, immersive experiences and engaging in a genuine dialogue with customers."
Millennials Are Both Driving Growth and Redefining the Luxury Market
Millennial (Gen Y) and Gen Z consumers are proving to be the main growth engine in the
luxury market, accounting for 30% of luxury sales, yet fueling a massive 85% of all growth in
2017. But the younger generations are also reshaping what "luxury" is, thereby what luxury
brands need to do to appeal to them.
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While previous generations purchased luxury items to signify social status, class, and
accomplishments, the millennial generation has a different set of values. For them, such
achievements aren't as significant. Luxury items are more about self-expression and defining
who they are.
For example, luxury apparel brands are reinterpreting streetwear - and even collaborating with
streetwear brands and artists - to appeal to younger customers. As Oliver Abtan, Partner and
Managing Director at The Boston Consulting Group, puts it: "Collaboration covers demand for
newness in a less risky way. It gives brands a cool edge and strengthens brand awareness as well
as increases willingness to buy the brand. Collaboration is increasingly in demand and turns out
to be a very effective purchasing incentive."
There Are 5 Types of Luxury Shoppers
In a separate study, Mindshare North America surveyed 1,600 luxury adult shoppers in the US
to define how luxury is changing.
"The definition and perceptions around luxury have changed a great deal over the years and brands
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need to understand the nuances to succeed," said Mark Potts, Head of Insights at Mindshare
North America. "While there are certain fundamental and immutable human motivations around
luxury, our research shows that consumers' luxury behaviors are shifting due to everything from
changing demographics to evolved values and priorities to new influencers."
According to the study, luxury consumers are primarily divided into five categories:
1. Strivers: This category makes up 24%, and consists of consumers who see "luxury as reflective
of success". 57% of Strivers are millennials, 58% are male, and 34% identify themselves with
an ethnicity other than white. At present, Strivers are mostly middle to upper middle class
because they are still early in their careers, but will eventually work their way into the more elite
income brackets.
2. Only the Best: This is the second-largest group, making up 23% of luxury consumers. This
cohort views luxury as "unsurpassed quality and service", and are generally older than Strivers -
26% are 65 or older, and 41% are between 45 and 64. 28% of this group have annual household
incomes (HHI) of $150,000 or above, 27% make between $100,000 and $149,000, and 26%
have incomes of $75,000 to $99,000.
3. Comfort First: The next largest group regard luxury as a "meaningful way of life", and
contains the biggest percentage of consumers aged 65 and over - 42%. Only 9% of Comfort
First consumers are millennials. This group also has the highest percentage of white consumers
- 81%. More than one third (35%) have annual household incomes of $150,000 or higher.
4. Aesthetes: Aesthetes define luxury as "the pinnacle of aesthetics and design" and make up 17%
of luxury consumers. 62% of this cohort are female. 21% are between the ages of 45 and 54,
20% are 35 to 44, and 20% are 65 or older. Aesthetes tend to be high earners - 33% have an
annual HHI of $100,000 to $150,000, with 28% earning $150,000 or above.
5. Trendsetters: This is the smallest group, representing 16% of luxury consumers. Trendsetters
are defined as those who "use luxury to stand out". 46% are under the age of 34, and 40%
identify themselves with an ethnicity other than white. This group also has the highest
percentage of consumers from the southern parts of the US - 36%.
"There are different reasons people buy luxury," said Paul Bloom, Professor of Psychology at
Yale University, who Mindshare North America consulted with on the research. "One is pure
aesthetics. Some things are just more joyous to look at, to smell, to taste. Another is signaling -
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we sometimes buy luxury items to show things to other people, and what we're trying to show is
a really complicated question. And third is the idea of essentialism - we're not just sensitive to
how things look, but to beliefs about their creation. Some luxury items resonate not merely
because of aesthetics, or signaling, but because pleasure's deep."
Strategies for Luxury Brands to Succeed in Indian Market
The Indian luxury landscape is rapidly evolving. With the rise in middle class population and
increase in disposable income, demand for luxury goods has expeditiously increased in the
country. Be it Canali's nawab suit, Chanel's tote bag or Balenciaga's clutch, luxury goods are
flying off Indian racks. Ralph Lauren launched its first store last year in New Delhi's luxury
mall DLF Emporio and brands like Alexander McQueen and Saint Laurent are all set to have
their first standalone stores in India by the middle of this year. The Indian luxury market is
expected to grow ten-fold from the current $30 billion to $180 billion by 2025. However, India
still lags far behind other developing economies like China in terms of its share in the global
luxury market. India is a culturally diverse nation with varied languages, religions, food, music,
dance and customs. With such diversity, the Indian market offers opportunities as well as
challenges to luxury brands. Therefore, it is critical for luxury players to understand
idiosyncrasies of typical Indian consumers to successfully serve this lucrative and growing
market. Here are four key strategies for luxury brands to succeed in this complex market.
Understand Indian buyers: Indians perceive luxury brands differently. Their values, beliefs and
attitude towards luxury vary significantly from their Western counterparts. Luxury goods are
mainly purchased for personal or social orientation. Indians buy luxury primarily for social
gratification. They go for loud brands and signal their status through luxury consumption.
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Therefore, marketers must highlight symbolic value derived from luxury brands to gain traction.
Indians are extremely value-conscious buyers. They are now well-travelled and educated, and
therefore, are aware of offers abroad. They want a full product mix, the latest variety and style
without a premium. They compare the product and prices across markets and clinch the best
deal. Therefore, luxury brands must make sure that they maintain parity while catering to the
Indian market.
Indians, even today, are skeptical about buying luxury brands. For instance, they may buy gold
worth a million dollars instantly but when it comes to spending the same amount on luxury
brands, they may consider it as wasteful expenditure. They look for value of raw material and
potential resale price while making their purchase decisions. However, with greater exposure to
international luxury brands, this mindset is gradually changing. Luxury marketers need to raise
brand awareness among Indians. They may hire opinion leaders, influencers or film stars to
promote these brands. For example, Shahrukh Khan's association with luxury watch brand Tag
Heuer has been a huge success.
Entice young luxury shoppers: The demand for international luxury brands is rising among
young Indian consumers with increased access to the Internet, overseas travel and growing
discretionary income. Millennials are the next rulers of the luxury market. They are
experimental, discerning and demanding. Luxury brands can no longer use standalone platforms
to attract and engage these consumers; they have to provide seamless bespoke experience that is
consistent across all platforms. Young consumers choose social media to stay updated, and
therefore, a strong social media presence is key for success of these brands. Marketers should
unleash the power of social media to tell their brand story and engage consumers to tell their
own stories of brand interaction.
Invest in sales personnel: Sales personnel are the brand ambassadors who serve as the face and
voice of the organisation. They interact with the customer and make or break the brand. Hence,
luxury brands should put sincere efforts to empower and enrich their employees. They should be
trained to understand what the brand stands for, its DNA, history and heritage so that they can
rightly pitch those to customers.
Focus on innovation: "Because the purpose of business is to create a customer, the business
enterprise has two-and only two-basic functions: marketing and innovation," said management
guru Peter Drucker.Today, luxury brands need to be innovative to gain attention of new luxury
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consumers. It is through innovation that these companies can extend existing products and
invent new products suitable for Indian customers' wants. For example, Mercedes Benz
introduced compact luxury hatchback A class, particularly for the Indian market, to attract
aspirational buyers.
They need to tell an enthralling brand story, a clear approach and a system to deliver a
consistent, notable experience for consumers.
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The top Luxury brand in Ladies Segment
 Tiffany & co
Tiffany & Co. (colloquially known as Tiffany's) is an American luxury jewellery and
specialty retailer headquartered in New York City. It sells jewellery, sterling silver, China,
crystal, stationery, fragrances, water bottles, watches, personal accessories, and leather goods.
Tiffany is known for its luxury goods, particularly its diamond and sterling silver jewelry.
These goods are sold at Tiffany stores, and through direct-mail and corporate merchandising.
Tiffany & Co. was founded in 1837 by the jeweller Charles Lewis Tiffany and became famous
in the early 20th century under the artistic direction of his son Louis Comfort Tiffany. In 2018
net sales totalled US$4.44 billion. In 2019 Tiffany operated 326 stores globally in countries
such as the United States, Japan, and Canada, as well as Europe, the Latin America and Pacific
Asia regions.
LVMH purchased Tiffany & Co for $15.8 billion in January 2021.
Tiffany is known for its luxury goods, particularly its diamond and sterling silver jewellery.
George Frederick Kunz (1856–1932), a Tiffany's gemmologist, became instrumental in the
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international adoption of the metric carat as a weight standard for gems. The Tiffany Yellow
Diamond (128.54 carats (25.708 g)) is usually on display in the New York City flagship
store.
In 1886, founder Charles Tiffany conceived of the Tiffany Setting ring design, in which six
prongs hold the diamond off of the band, in order to better accentuate the diamond.
Like other similar diamond retailers, Tiffany's enacts a strict policy against the repurchasing
of diamonds sold from its stores. In 1978, a woman in New York City was denied after she
attempted to sell back a diamond ring she had bought from Tiffany two years earlier for
$100,000. Writing for The Atlantic publication in 1982, Edward Jay Epstein explained the
rationale for such a policy:
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 Manolo Blahnik
It was observed that Manolo Blahnik recently established market for the luxury sneakers has
been rapidly growing since 2014. Most of the fashion designers’ brand have already benefited
from the market and established their presence in this segment. Ever since the iconic
appearancein the “Sex and the City series. Manolo Blahnik is one of the most anticipated shoe
designers in the world.
Since 1971 Blahnik designs individual shoes, where each design has its own story. It was
knownas a very independent designer, not picking up every trend. However in order to be able
to stay fashionable in a fast moving market like shoes market, Manolo Blahnik should consider
introducing a shoe collection and now they are high earning brand in shoe.
Blahnik's boutiques are located in London, New York, Geneva, Madrid, Barcelona, Moscow,
Dubai, Abu Dhabi, Doha, Hong Kong, Kuala Lumpur, Seoul, Singapore, Tokyo, and
Taipei. Bloomingdales (for which he created his first American collection), Nordstrom, Neiman
Marcus, Barneys, Bergdorf Goodman and Saks Fifth Avenue carry his line in the United States
and newly opened in Dubai Mall. The company has signed a long-term deal with the shoe wear
retailer Kurt Geiger to operate Manolo Blahnik boutiques.
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In 2000, Blahnik, together with Neiman Marcus, launched the first commercial virtual reality
online showroom featuring 3D models of his shoes. The entire collection was sold out online
within three weeks.
Blahnik was elevated to the International Best Dressed List Hall of Fame in 1987. In 2007,
Blahnik was appointed as an honorary Commander of the Order of the British Empire for his
service to the British fashion industry.
Blahnik currently resides in Bath, United Kingdom and was awarded an honorary degree
from Bath Spa University in July 2012.
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 Versace
It is an Italian luxury fashion company and trade name founded by Gianni Versace in 1978.
The main collection of the brand is Versace, which produces upmarket Italian-made ready-
to- wear and leather accessories, while other diffusion lines are Versace Collection.
The Versace logo is the head of Medusa, a Greek mythological figure. The logo came from the
floor of ruins in Rome that the Versace siblings played in as children. Gianni Versace chose
Medusa as the logo because she made people fall in love with her and they had no way back.
They are known for its innovative designs having symbolic flashy prints and bright colours.
The company announced in 2018 that it would stop using fur in its collections.
On 25 September 2018, American Michael Kors Holdings acquired all outstanding shares in
Gianni Versace S.r.l. for $2.12 billion (USD); the acquisition was completed on 31 December
2018, keeping on Donatella Versace as head of creative design.
Versace was often described as the "Rock n' Roll designer" because they designed for many
famous clients, including Elton John and Michael Jackson. Versace designed the stage
costumes and album cover costumes for Elton John in 1992. Versace has also designed
clothing for the Princess of Wales and Princess Caroline of Monaco. The Versace company is
known for using the same models in their ads as they do on the runway
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 Gucci
Gucci is an Italian luxury brand of fashion and leather goods. Gucci was founded by Guccio
Gucci in Florence in 1921. Gucci generated about €4.2 billion in revenue worldwide in 2017
according to BusinessWeek and climbed to 41st position in the magazine's annual 2009 "Top
Global 100 Brands" chart created by Interbrand, it retained that rank in Interbrand's 2014
index. Gucci is also the highest-selling Italian brand.
Its product lines include
 Handbags
 Ready-to-wear
 Footwear
 Accessories
 Makeup
 Fragrances
 Home decoration
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In 2019, Gucci operated 487 stores for 17,157 employees, and generated €9.628 billion in
sales (€8.2 billion in 2018). Marco Bizzarri is CEO of Gucci since December 2014, and
Alessandro Michele creative director since January 2015. Gucci is a subsidiary of the
French luxury group Kering.
In 2015, Gucci launched its own environmental profit and loss initiative. In October 2017,
Gucci announced it would ban furs from its stores in 2018. In June 2018, the brand launched
'Equilibrium', its platform to communicate on its social and environmental efforts and
progress. In September 2019, Marco Bizzarri announced Gucci's intention to go entirely
carbon neutral. In 2020, Gucci joined the UNDP-led Lion's Share Fund to support wildlife
conservation.
The name "Gucci" turned into an eponymous adjective, "I feel Gucci!" and "That’s so
Gucci!", to describe something that feels like the high-flying luxury of Gucci.
The earliest known instance of the word being used in this sense is found in the September
1999 issue of Harper's Bazaar, in which singer Lenny Kravitz describes his bedroom as "very
Gucci."
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 Louis Vuitton
Louis Vuitton (LV) is a French fashion house and luxury retail company founded in 1854by
Louis Vuitton. It was observed that the label's LV monogram appears on most of itsproducts,
ranging from luxury trunks and leather goods to ready-to-wear, shoes, watches, jewelry,
accessories, and sunglasses.
It is one of the world's leading international fashion houses; it sells its products through
standalone boutiques, lease departments in high-end department stores.
Through the e-commerce section of its website. Louis Vuitton was named the world's most
valuable luxury brand.
The label's LV monogram appears on most of its products, ranging from luxury bags and
leather goods to ready-to-wear, shoes, watches, jewellery, accessories, sunglasses and books.
Louis Vuitton is one of the world's leading international fashion houses. It sells its products
through standalone boutiques, lease departments in high-end departmental stores, and through
the e- commerce section of its website.
For six consecutive years (2006–2012), Louis Vuitton was named the world's most valuable
luxury brand. Its 2012 valuation was US$25.9 billion. In 2013, the valuation of the brand was
US$28.4 billion with revenue of US$9.4 billion. The company operates in 50 countries with
more than 460 stores worldwide.
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 Chanel
It was observed that the Chanel Brand is a high fashion house that specializes only in women's
high sewing and ready-to-wear clothes, luxury goods, and fashion accessories...
A fashion designer, Coco Chanel catered to women's taste for elegance in dress, with blouses
and suits, trousers and dresses, and jewelry of simple design that replaced the opulent, over-
designed, and constrictive clothes and accessories. The Chanel product brands have been
personified by fashion models and actresses.
Chanel is well known for the perfume Chanel No. 5 and the Chanel Suit. Chanel's use
of jersey fabric produced garments that were comfortable and affordable. Chanel revolutionized
fashion – both high fashion (haute couture) and everyday fashion (prêt-à-porter) – by replacing
structured-silhouettes, based upon the corset and the bodice, with garments that were functional
and at the same time flattering to the woman's figure.
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CHAPTER 3
STRATEGY USED BY BRANDS
 CHANEL
It was observed that Chanel uses a mix of demographic and psychographic segmentation
strategies to make its offering available to the target market. Selective targeting strategies were
used by the company to promote its offering to the selected.
1. SWOT
 Strength- It was seen that it was strong online presence very active on twitter, Instagram
and good website. It posted a very high revenue based on its brand value. It was ranks 80th
on the world’s most valuable brand. The sales reach around $5.2 billion. Chanel is a highly
established brand worldwide since manyyears. Brand is also known for its comfortable and
functional clothes with the perfect style. Classic and timeless designs make a major part of
their collection.They have around 1300 employees. Chanel’s brand designer Karl Lagerfeld
hasbeen their head designer and creative head since 1983.
 Weakness- It was seen that competing with many other premium brands it means where
limited market growth. It is competing with Louis Vuitton, Gucci,Versace, and H&M. it is at
a healthy 80th rank in the world it still needs to do a lot in order to become the leader in the
premium segment. Being a premium segment it gives a very little room for expansion.
 Opportunities – It was observed that Chanel has an online presence but it is notso
strong they can work on it in such a way that it can maintain its exclusivity as well as
increase its sales and profits. Emerging markets have huge potential. They should increase its
presence in emerging markets. They can start workingon some new products. It also have
been seen that Chanel is a brand of a younggeneration.
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 Threats- It was seen that the channel company has a huge competition exists inthis
category. Their main competitors are Louis Vuitton, Gucci, Versace, and H&M. It is a
very little scope for market growth in this segment being a niche category. As luxury
brands get copied a lot and there is little a brand can do to tackle this problem. There are
many brands that copy the style and elegance ofChanel and the luxury brands are sell the
copied product at much cheaper and affordable rates.
On the study of the SWOT Analysis of Chanel, we have come to know that it is one of the
leading fashion brands. It has the strongest social media presence and a loyal customer
base. It still has some opportunities like untouched market segments and innovative
products. Even though it has such success it has some flaws keeping it back.
It has high prices for its product and there are similar products in the market from other
brands at a cheaper price with the same quality. There is also an increase in counterfeit
products in the market which causes a large amount of loss for them. They can use digital
use social media to bring awareness of the quality of the product and tell that they provide
the best quality products. Such things are part of the advance digital marketing tactics
which is needed in this rapid digitalization period.
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2. STP - Chanel uses a mix of demographic and psychographic segmentation strategies to make
its offering available to the target market. Selective targeting strategies are usedby the company
to promote its offering to the selected customer groups. It has been successful in positioning
itself on the emotional quotient like more of luxury product companies do and it uses
value- based positioning strategy.
3. 4P’s
 Product:
It was seen that the Chanel is one of the world’s leading fashion brand. Being a high- end
luxury premium segment brand, they offers a wide range of fashion products. Chanel’s
products are mostly targeted at women, it also have fragrances for men. Otherproduct
categories in its marketing mix are as follows:
 Haute couture Fashion
 Ready-to-wear clothes
 Fine Jewellery
 Watches
 Fragrance
 Skincare
 Sunglasses
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The products of Chanel were all international fame and followed by high-end customers
worldwide including renowned Hollywood celebrities and more. There products are
created by many individuals who are highly skilled at their craft. They comes up with
limited editions of products, especially in the fashion clothes and fine jewellery segment.
The company is known for its simple, stylish products made from expensive and
valuable raw materials.
 Price:
It was seen that Chanel is a premium brand for high class customer. The first Chanel shop
was established, it has been catering to the fashion needs of high-class aristocratsof the
society, people who believe in indulgence and gratifying human appetite for the finer
things. Its target segment still remains the same niche and cash rich customer. Therefore,
they charges exorbitant amount of money in its marketing mix pricing strategy but the
prices are justified most of the time because-
•The quality of raw materials used for Chanel products is exquisite and rare
• The final products are of world class quality and exemplify style and elegance
• The target segment is rich and therefore willing to pay
The product categories within Chanel have different pricing strategies, for example the
Haute Couture is priced in the extreme high-end segment, starting from $10,000 to
$60,000, with the far end going beyond $100,000, as compared to the normal wear
everyday fashion wear which is mostly in the range of $1000 to $50,000.
 Place:
By was observed that Chanel caters to the high class aristocratic segment and its storesare
usually located in the high-end posh localities. It also has its stores at airports sincethat is
where most of the potential customers travel. The stores can even be found in thelobbies
of five-star luxury hotels which again cater to its targeted customer base. The Chanel
boutiques are located around the world including cities like New York, Boston,Sydney,
Miami, Bangkok, Geneva, Tokyo, Moscow, Los Angeles, Paris, Dubai and
London - which is the biggest in the world. It has around 310 Chanel boutiques out of
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which 128 are situated in North America, 94 in Asia and 70 in Europe. Its fragrance
andskincare counters are available across high-end luxury malls. Chanel products can be
purchased online as the stores are not accessible to many customers due to exclusive
locations around the world which are restricted to high-end localities.
 Promotion:
As observed that Chanel is a widely well-known brand which has an extreme brand
loyalty factor associated with it. For promotions, it usually places ads for its products
inhigh-end fashion magazines like Marie Claire, Harper’s Bazaar, Vogue, Elle etc. They
also does point of sale marketing by employing classy store layouts and creative use
ofmannequins to lure the customers into their boutiques. It also employs supermodels
andHollywood actors to do modelling for their brand and gets a lot of promotion through
the fame of the models. Chanel also gets a lot of publicity when renowned celebrities
wear its Haute Couture or carry its bag on the red carpets of coveted award shows and
film festivals garnering the eyeballs of fashion magazine journalists and critics who
thenacknowledge the brand and product through various channels like magazines, blog
posts, newspapers and television.
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 LOUIS VUITTON
 Swot analysis of Louis Vuitton
Strengths:
Strengths are Aspects as what each business does best in its range of operations which can give,
giving its competitors.
 Louis Vuitton has unbeatable brand recall and global presence.

 It has an extremely huge level of Customer Loyalty.
 Louis Vuitton is recognized very easily by everyone, The reason being its logo and
monogram canvas on most of its products.
 It also makes customized products for its few Elite Customers.
 The fantastic marketing using celebrities from the sports and film industry has been a
plus point
 Louis Vuitton effectively collaborates with top designers worldwide.
 It has exclusive availability in most of the large shopping hubs and multi-retail brands
with 450+ stores and more than 50 countries worldwide.
 Louis Vuitton is one of the oldest fashion brands with more than 150 years of establishment.
 In the luxury, segment customers are always hyped about the quality of products that they use
and are willing to pay a premium for it. No doubt, one of the biggest strengths of Louis
Vuitton is its strong association with quality.
Weaknesses:
These are the key areas where the business or the company should make enhancements
Intense competition results in low market shares.
 The focus on exclusivity makes Louis Vuitton patent or copyright most of their designs
and they rely on centralized decision making and this as an outcome pushes down the
morale.
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 Louis Vuitton is French in style and design and it lacks sensitivity to trends in foreign countries.
3
 Japan is one of Louis Vuitton’s biggest markets with more than 85 % per cent of Japanese
women-owned Louis Vuitton products. This has reduced the ability of the company to work
in other markets.
 Louis Vuitton is a luxury brand and even a basic offering from the company costs about 1500
USD. This makes it impossible for the masses to purchase a Louis Vuitton bag or suitcase
and as a repercussion, the company targets a niche market.
 Fake emulations hurt sales and affect brand reputation as a reaction.
 Weak online presence and online sales.
 Louis Vuitton has quite limited channels of distribution. They make sales only through stores
Opportunities:
Opportunities refer to those avenues in the business environment on which it can capitalize to
increase its returns.
 Revamping the brand image trying to attract more Millennials and Gen Z.
 Strategic collaborations with certain other companies having the same customer segment.
 Potential in Asia by and large, especially in China and India.
 Development of new products and services inducing Louis Vuitton competitive advantage.
 Tie-ups with top lifestyle events, hotel chains, and fashion houses can boost business.
 It is estimated that the global market for luxury goods is around 42 billion dollars, having a
growth rate of 4 per cent per annum. This is surely a huge opportunity for luxury
merchandise companies like Louis Vuitton.
 Due to the significant rise in per capita income in most countries across the world, there is
an indication of a sharp increase in disposable income as well. This can be seen as one of the
reasons for the surge in demand for non-essential items and luxury goods.
Threats:
Threats are those factors in the environment that can be detrimental to the growth of the
business. Some of the threats include:
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 Global recession or financial crisis

 Intensification in popularity of substitute fashion products
 Increasing competition from the emerging countries can result in the decline of sales
 Counterfeit cases all around the world adversely affect Louis Vuitton along with diluted
market shares and negative image
 Government policies on international trade can become the reason for slowdown operations
 The prime forte of Louis Vuitton is their ability to create exclusive merchandise so it also
means that they would need to customize for individual cultures. Their team which mostly
consists of European designers will find managing multinational customization a huge
challenge
Conclusion
With the above SWOT analysis of Louis Vuitton, it can be concluded that this brand is doing
well enough in the market with its long-established strategies but there are certain threats that
can hamper the growth of the company in this ever-changing world like restricted target market.
There are several opportunities taking advantage of which Louis Vuitton can create for itself an
established brand in the long-term too. So, this amazing brand is already on the top but to
sustain their position in the market they need to take their SWOT analysis seriously.
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1. 4P’s
 Product
It was seen that the main emphasis of the company is on the premium quality
ofthe goods. This has resulted in unique and original merchandises that closely
resemble the aspirations and imaginations of the consumers. In order to tackle the
market of fraudgoods the company has paid a lot of effort in the design itself, &
therefore it is not easyto imitate its products. All the goods and designs are
registered to counter fake goods. The portfolio of luxury goods that the company
deals in includes items like leather goods that are made from hundred percent
original leather and exclusive ready- to-wearclothes line that are designed with
utmost care and are hundred percent original. They are famous for its handbags
and beautiful watches.
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 Place
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It has been seen that (LV) Louis Vuitton is very clear in its distribution policies. Its
products are highly exclusive and sold with the same mindset of providing exclusive
accessibility. To purchase a Louis Vuitton product the customer has to reach its
personalized stores. The sale ofthese items is through limited channels of exclusive
distribution. They do not sell any of their branded products in departmental stores. They
feel that they have the best possible options to sell their products in their own stores, as
their salespersons are highly professional
with a keenmindset to tackle the customers in an intimate and warm environment. In

the long term,this marketing strategy helps in the reduction of intermediary costs that
other brands face whileselling through long channels of distribution. This also results in
direct dealings with the customers that lead to efficient and friendly relations. All its
stores are located at very high profile and prime locations.
 Price
It was seen that LV has made handsome investments to maintain the rich quality of its
products. The contemporary designs of the products have helped the company to
maintain a premium pricing policy. It also have been see that the cost price of the
products is actually much higher because of its uniqueness, material and quality the
value of the product simply results in premium pricing. Louis Vuitton product is actually
a style statement and hence, the customer is happy to pay the exorbitant prices.
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 Promotions
They have employed a promotional strategy for its products with the help
of celebrity endorsements. Famous actors like Jennifer Lopez, Kate Moss, Scarlett
Johansson and Uma Thurman have been associated with the brand as its ambassadors.
They has also takenan active part in sponsoring mega sporting events like motorsports and
yachting. These eventsare attended by mostly the high society and by associating with
these events; the company hasmade a direct link with the target audience. Advertising is
the main tool to create awareness about the
product and keeping with its illusion of exclusivity the company has managed to makeads
that are really individual and fashionable. Company does not advertise on television but it
does follow a policy of high profile advertisement in newspapers and fashion magazines.
Mostof the advertisements revolve around the celebrities and this is to create an emotional
connection of the consumer.
2. Service differentiation:
They are also adopting customization; customers can come to the outlets of Louis Vuitton
and place the special orders. The company doesn’t provide the facility of ordering through
website but they prefer the self appearance of the customer as it is more suitable. They
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respects every customer. When shopping in the Louis Vuitton storeproves the best service
to every customer, and it doesn’t want the store too crowded, so it limits the number of
customers.
3. Delivery Strategy:
It was seen that LV delivers the customized products door to door. But if anybody has
standard size or willing to buy any accessories like wallets, belts, they can visit the Louis
Vuitton outlets and find the product.
4. Personnel Differentiation:
Their staff is one of the highly paid staff who is motivated to produce the products
withhighest standards of quality. Company management gives the complete training time
totime to all the staff members to meet the standard which is making Louis Vuitton the well
known luxury brand of the earth.
5. Channel Differentiation:
It has been seen that the company markets its product through its own stores, high end
departmental stores throughout the world, which allows it to control product quality and
pricing. It also allows LV to prevent from fraud products entering its distribution channels.
Louis Vuitton has neither discount sales nor any duty-free stores.
6. Customer analysis in the Marketing strategy of Louis Vuitton: –

They are both the manufacturer and distributor of the luxury goods able to attract customers
in the age group of 20-45 years. Customers of LV are more inclined to superior design,
perfection and art.
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 GUCCI
Gucci is an Italian luxury brand of fashion and leather goods. Gucci was founded by Gucci
Gucci in Florence, Tuscany, in 1921. Gucci generated about €4.2 billion in revenue
worldwide in 2008 according to BusinessWeek and climbed to 41st position in the magazine's
annual 2009 "Top Global 100 Brands" chart created by Interbrand it retained that rank in
Interbrand's 2014 index. Gucci is also the highest-selling Italian brand.
1. SWOT analysis of Gucci
 Strengths
It was observed that a fashion brand which is selling at premium prices requires a
very strong brand equity. Gucci’s brand ranks 38th in the whole world in 2015. Its
quality and the trademark that it represents, Gucci products are of the highest quality and
the most luxurious items in the market. There are very few companies which can match
Gucci’s standards in fashion. Gucci has about 500 stores across many countries.Its major
presence is in UK, US and Japan as well as in other emerging countries. It is not easy in
the fashion business and one of the advantages of Gucci is that it does not wait for events
to launch something new but it keeps changing things so that the store layout always
looks fresh.
 Weaknesses
As observed early one of the major weakness for any brand in the fashion industry is that
there is continual change required. So some years are good and some are bad. A major
point where Gucci faces flak is in its advertising. It regularly uses sexual innuendos and
shows the female in bad form due to which it has repeatedly faced criticism over the
years. However, many marketers feel that Gucci proves over and overagain that “Sex
sells”. As the brand is iconic in, it has been fraud in many countries over many years.
This is one problem which Gucci faces again and again.
 Opportunities
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For Gucci Youth is more brand conscious then ever the youth of today literally demand
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premium brands as the earning power is on the rise and more and more people are having
a successful career. Emerging markets like China and India are hotspots for brands like
Gucci as the consumption can increase in these markets for ultra premium brands. One
major advantage for Gucci is that fashion never ends. Fashion keeps changing.
 Threats
Competition a major threat of Gucci is that today, like any other sector, it is not the
onlylion in the jungle. There are others which are equally big though not bigger then
Gucci.Christian Dior, Ralph Lauren, Burberry are some of the brands which have
repeatedly been a thorn in Gucci’s side.
2. BCG Matrix in the Marketing strategy of Gucci
It was observed that the product is categories such as Leather goods, Shoes, Ready to wear,
and Accessories. Its business segment Leather goods, shoes and accessories are starred in the
BCG matrix having a share in revenue as 55%, 17% and 15% while readyto wear product
segment is a question mark due to the presence of a large number of brands in this segment.
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3. Distribution strategy in the Marketing strategy of Gucci –
They have various channels to make the products available to the end customers. It
distributes its products through company owned stores, e-commerce sites, wholesalers,
distributors and retailers. As of December 2016, it has 520 company-owned stores globally.
4. Gucci Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Gucci analyses the brand with the marketing mix framework which
covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like
product innovation, pricing approach, promotion planning etc. These business strategies,
based on Gucci marketing mix, help the brand succeed.
Gucci marketing strategy helps the brand/company to position itself competitively in the
market and achieve its business goals & objectives.
Let us start the Gucci Marketing Strategy & Mix to understand its product, pricing,
advertising & distribution strategies:
Product:
The product strategy and mix in Gucci marketing strategy can be explained as follows:
Gucci is one of the top most luxury fashion brands well known globally. Since its inception in
1921, the brand has established as a leading fashion label. Gucci has a diverse product portfolio
in its marketing mix with great length, width and depth. Gucci product line ranges from
handbags, shoes, ready to wear products, jewelry, watches and other accessories. It has
products for men, women and children. It has great length in each of the product category. In
handbags it has totes, shoulder bags, backpacks, clutches, crossbody bags etc. Each bag has
different variety of colors to choose from. Gucci have duffle bags, briefcases, portfolios, totes
and backpacks for men. In their ready to wear segment they have jackets and coats, denims,
leather and fur, skirts, tops and shirts, pants and shorts, sweaters and cardigans, sweatshirts,
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T-shirts and suits for men. Gucci
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have a range of fancy shoes for women like pumps, sandals, ballerinas, moccasins and loafers,
slides and mules, boots and wedges. For men they offer laceups, boots, sneakers, sandals,
loafers. Some of the loafers are made from precious skin. Gucci offer accessories like
sunglasses, belts, scarves, luggage bags, wallet, hats, gloves etc. Gucci also has beauty products
ranging from fragrances to nail paints, eye and face makeup. In the children section one can
find clothes and shoes for new born and grownups of age 12.
Pricing:
Below is the pricing strategy in Gucci marketing strategy:
Gucci mostly offers premium priced products.
The price of the apparels depends on the quality of fabric and the work done on the apparels.
The pricing strategy in its marketing mix includes all sort of charges and expenses it incurs.
When the products are exported the rate of the products increases due to several charges
imposed on them. The materials used in making of Gucci products are of premium quality
therefore the pricing of the products are also high. Their finished goods have a made in Italy
trademark on them. Their prestigious pricing makes the product act as a status symbol. Even in
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other products
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Gucci follows premium pricing. Despite the pandemic, the pricing of the products were
maintained, as the brand still maintains a supreme quality. Gucci’s customers are not affected
by this because they get high quality products. Gucci tries to offer discounts time to time to
enhance sales and keep their loyal customers happy.
Place & Distribution Strategy:
Following is the distribution strategy in the Gucci marketing mix:
Gucci is optimizing its existing network to drive organic growth and profits. Gucci operates in
Europe, united states of America, Asia, Middle East, Australia. Its major business functions are
merchandising, marketing and communication, store planning. The collateral aspects of the
Gucci’s business are handled by the support staff functions like Human resources, Finance,
Corporate social responsibility, legal and corporate affairs. From product development to the
technical area Gucci’s supply chain is very efficient and helps in delivering products with
cutting edge innovation. It has 500+ directly operated stores, a directly operated online store
which works in 25+ markets. Gucci have limited number of franchises and selected
departments and specialty stores through which they sell their products. Their stores are placed
in expensive up street locations keeping in mind their clientele. They have visually appealing
outlets which give a great, relaxing experience to the customers. Each Gucci store is uniquely
designed and have classic interiors. The services provided by the employees make the
customers feel special and exclusive.
With the growing penetration of ecommerce websites, Gucci has spread its business via multi-
brand online platforms as well.
Promotion & Advertising Strategy:
The promotional and advertising strategy in the Gucci marketing strategy is as follows:
Gucci makes itself visible through advertisements, banners, look books, social and print media
as a part of its marketing mix. Their marketing campaigns features on various social media
platforms like Facebook, Pinterest, YouTube, Instagram, Tumblr. They have hired various
bloggers to promote their content on social media. Gucci also has an app in eight different
languages and it is called Gucci style app. It acts as a magazine consisting of fashion, geo
location tips, interactive videos etc. Alessandro Michele has been driving Gucci’s advertising
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campaigns
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effectively. He understands the importance of connecting the past history of Gucci with the
contemporary outlook of the customers. It leverages the rich heritage of Gucci and its
craftsmanship. The ad campaigns showcase contemporary designs focusing on the classy &
young generation. Gucci’s fashion shows are well accepted and recognized by the fashion
experts and by the targeted audience. Gucci has an excellent customer relationship services
which acts as a huge means of word of mouth promotions. Gucci offers its client a repair
service and also allows them to pre order items that are still under production. Hence, the
marketing mix of Gucci luxury fashion brand is completed.
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 MANOLO BLAHNIK
4 P’s of Marketing
 PRODUCT
There all Products are handcrafted produced select from Italian manufacturers to
deliver ultimate quality and high comfort. The variety of the offered products ranges
from flats over low heels to high heels.
Flats include: Ballerinas, boots, loafers, flat sandals, and lace-ups.
Heels include (5-12cm): Boots, mules, pumps, stilettos, sandals, and wedges.
Materials used for the products even exceed this variety. Besides a preference for
rareanimal skins, furs and fine fabrics like satin or silk, Manolo Blahnik also likes to
use extravagant material like feathers and applications in forms of sequins, glitter and
brooches. The sole is made of leather showing the brand and size.
Shoe sizes range from 35 to 42 in Italian size and the shoes come packaged in a strong
white box.
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 PRICE
The pricing strategy of Manolo Blahnik is psychological and based on the perceived
value of the product. Manolo Blahnik has positioned itself at a price premium. The
price is sustained by the uniqueness and exclusivity of the shoes. Manolo Blahnik
premium pricing strategy makes the brand aspirational for consumers. Manolo Blahnik
cannot and will not be compared to other products. The high price is partly warranted
by superior quality, but also the uniqueness and exclusivity of our shoes.
 PROMOTION
As observed luxury brand awareness does not necessarily lead to growing, but rather
to decreasing demand. Promotion was a key characteristic in creating mainstream
demand for Manolo Blahnik. The brand and the product featured highly through
product placement on the extremely popular television franchise for the target
audience – “Sex and the City”. This instantly aroused the attention of the target
consumer, eliciting the intended reaction and responses from the consumer. The
partnership was so successful because it did not impose the product on the consumer,
but rather earned a positive interpretation of exclusivity, elitism and elegance through
precise product positioning.
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 PLACE
Manolo Blahnik consumers purchase a top quality, unique and desirable shoe at high
end, luxury department stores and shopping malls across the world. However,
selective distribution reduces exposure to a few businesses that sell only upscale
products. There is a paradox in the success of luxury brands jeopardizing future
success as increasing sales volumes reduces rarity. Manolo Blahnik shoes are available
to fashion-conscious, upper-class customers in all continents and 30 countries across
the world. Customers in serviced countries can purchase the product on limited
websites online as well as in specialized boutiques, shopping mall concessions and
high-end boutiques
1. MARKET SEGMENTATION
It was seen that geographically the women’s luxury shoe market is targeted towards the
developed world, namely the United States, the European Union, and Japan. However,China,
India, and Russia have rapidly expanding luxury markets, capturing the attentionof high-end
brands worldwide. China is set to overtake Japan to become the second- largest luxury market
in 2016. Within this wide geographic area Manolo Blahnik targets a very specific consumer –
upper-middle class to extraordinary wealthy women betweenthe ages of 24 and 55. The brand
is focused on women who desire a sense of class fromtheir shoes, targeting consumers who
desire a refined classy.
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The phenomenal success of Manolo Blahnik product placement in the Sex and the City
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franchise refreshed the target market of the brand, convincing a new generation of women
that Manolo’s are more than a shoe. Manolo Blahnik shoes are a symbol of elegance, class,
independence and success for the metropolitan woman. The roaring success of the
partnership suddenly allowed wealthy women to really feel like they are living a glamorous
and cosmopolitan lifestyle.
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 TIFFANY & CO.
Tiffany & Co. seems to think so, and it only takes a quick glance at the luxury retailer’s social
media following to be convinced that the company must be right. It has 7.1 million followers
on Instagram, 9.4 million on Facebook, 1.58 million on Twitter, and 171,000 over on
Pinterest, Tiffany & Co. is proving that there’s plenty of room for luxury on the world’s most
popular social networks, and that no allure need be lost.
Followers are just one dimension. When it comes to digital marketing – and indeed to
Tiffany’s business model – its engagement that counts. But has Tiffany & Co. managed to
retain its air of exclusivity and preserve its appeal to high-end customers at the same time as
broadening its appeal so phenomenally across social media?
Augmented Reality
The Tiffany & Co. is making engagement a top priority on more than social media. The
retailer has designed a purchasing process to make the user experience as exciting and
engaging as possible – most notably through its Engagement Ring Finder mobile app. In what
might be considered an unusual step for a luxury jewellery-maker, Tiffany has decided that
the engagement ring shopping experience needn’t be confined to a physical store.
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There can be no doubt that Tiffany’s digital marketing strategy is out-sparkling the luxury
competition in terms of engaging its customers, particularly on social media. Indeed, Tiffany
& co is one of the most visible luxury brands online, and its strategy only serves to reinforce
its reputation for quality, beauty and opulence, rather than tarnishing it as many luxury
retailers fear may happen if they move towards the masses on social. And combined with a
mobile app strategy that brings the emotional excitement and experience of engagement ring
shopping into the digital age, Tiffany & Co. has crafted a truly enticing online marketing
strategy.
The last word goes to Chris Ramey, president of Affluent Insights, as he praises Tiffany &
Co. for its clear understanding of how the internet has revolutionized marketing, and the
retailer’s willingness to embrace it.
“Selling products today is a failed strategy. Tapping into your prospect’s deep-seated values
and emotions is key. Tiffany understands marketing evolution as well as anyone. Emotive
selling connects consumers who are disinclined to buy more stuff. This is the new reality for
selling luxury.
4 P’S
 Product:
As observed of different brands, but Tiffany & Co is majorly into luxury jewellery and
specialty items. It has a wide product range in its marketing mix which includes
watches, customized water bottles, personal accessories, designed silver ware, china
ware and premium leather goods. We can infer, Tiffany & Co focuses on affluent class
people and the brand is associated with style, elegance, exclusivity and sophistication.
They are a unique The Blue Box style of wrapping and presenting their products which
they claim to melt the hearts of the people as they receive it. Tiffany have specially
handcrafted engagement rings, for bride and groom, wedding rings, exclusive huge list
of jewellery collection, also products manufactured under the famous designers
worldwide, bracelets, gift cards, bands, studded watches and premium fragrance
perfumes. They have diversified their products to baby items, pet items, accessories,
frames, decorative sets, eye wear, textiles, and custom made key rings and may more.
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Tiffany & Co
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positioned itself as a provider of all luxury goods to the premium segment of the
society. They have made to order products which are specially designed by the
designers which gives customers a sense of exclusivity.
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 Price:
It was seen that being a luxury goods manufacturer, the prices are as according to the
affluent segment of the society. But Tiffany & Co. aimed to expand their revenue by
expanding low price products in the market. The price was as low as $30-$60. This
helped to increase sales by increasing the volumes sold. The pricing strategy in its
marketing mix was a step by step increase in prices over a period of time. They had
prices of all the expensive products at the same price for continuously 2 years, thereby
focusing on the low priced goods. Tiffany & Co have increased revenue from the high
priced goods, by offering discounts, promotional material and increased online
presence.
 Place:
Tiffany was started in 1837 in New York and it is the official Headquarters. They
established this as their flagship store in 1940, which was ahead of its time creation.
The interiors, floorings and window displays were best in class and it became a
Hollywood attraction as a location set in movies. Each store served as connect with the
customer and were designed to its best in style, offered several products, gave the
customer an elite feeling. In India, Tiffany & Co. have its stores at two locations only;
one in Ahmedabad, Gujarat and the other in Chennai, Tamil Nadu. The company
operates in 22 countries worldwide, and has approximate sales of $3.7 billion as of
year 2012. The majority share of sales, approximately 50% takes place in the US.
 Promotion:
They promoted themselves on their goodwill they earned from the mail order
catalogue, the ‘Blue Book’, which is still prevalent in the 21st century since 1845.
They had the first of its kind catalogue which was in colour that reached to over 15
million in 1994. They had their print media till the early 21st century active, but later
they stopped promoting on print ads and all forms of newspaper advertising. Tiffany
focused more on the engagement with the customers, and then focused their strategy
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towards digital
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media. As every product is available online, they created their digital presence. Being
a luxury brand, it was a challenge to sell their product which may be a once in a while
purchase for customers. They had their content strategy so well, that they garnered
millions of followers on social media. There was a plenty of room for luxury brand to
expand their business online. The key aspect of their online presence was the
augmented reality feature. Tiffany have an application Engagement Ring Finder app
which displays several suitable ring options to the consumer after it puts her finger
under the phone camera. This helped customers to get what they desired especially in
luxury segment without having visited the store. Emotive selling is their main strategy
in selling products online. This completes the marketing mix of Tiffany & Co.
SWOT
Talking about the Tiffany and Co. business, let’s understand how this corporation can cater to
different individuals using SWOT analysis. SWOT analysis of Tiffany and Co. helps us to
understand companies through the lens of internal and external factors. Internal factors refer to
strengths and weaknesses, which can be controlled by the corporation.
To better understand the SWOT Analysis Of Tiffany and Co., refer to the infographic below:
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Strengths
As one of the leading companies in its industry, Tiffany and Co. has numerous strengths that
enable it to thrive in the marketplace. These strengths not only help it to protect the market
share in existing markets but also help in penetrating new markets.
 Legacy: Tiffany & Co. was established in the year 1883, which started to sell stationery and
fancy goods, now became one of the largest luxury jewellery brands of all time with
maintaining the legacy of 184 years.
 Global Appearance: Tiffany and Co. is a US-based international company that was
established in 1837. It has 326+ stores across the United States, Japan, and Canada, as well as
Europe, the Latin America and Pacific Asia regions and has more than 15000 employees. It
has a revenue of 5 Billion USD in the year 2020. Tiffany and Co. have a strong brand name,
awareness and global presence which makes it one of the biggest strengths of the company.
 Strong Brand Image: Tiffany and Co. have a good presence and a wide variety of products.
The company is also successful in keeping the product differentiation and superior quality
products. It is also engaged in various sponsorships of sports awards through which its brand
can get awareness worldwide.
 Maintain Status Quo: To maintain its status in the market it does not encourage celebrity
endorsement for building its brand image and also never put its products on sale and discount.
The products are standardized and fixed priced which are non-negotiable across the globe to
keep things the way they are presented.
 Wide Variety of Products: It deals in a wide range of products like for men and women, it
deals in watches, perfumes, jewellery, lifestyle accessories, leather goods, tableware,
wallpaper. It also focuses on new product lines and also introduces the existing product to a
new segment, Tiffany and Co. earns good revenue by selling its products to China and the
Asian market.
Weaknesses
Weaknesses are the areas where Tiffany and Co. can improve upon. Strategy is about making
choices and weaknesses are the areas where a company can improve using SWOT analysis
and build on its competitive advantage and strategic positioning.
 Counterfeited Products: Nowadays has made it easier for design pirates to make fake
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products due to which fake products look more accurate and quicker than ever as detailed
shots of the
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products are posted within a few minutes of launching them, so sometimes it is hard to trust
them, due to which other brands also suffer somewhere.
 Aged Designs: Although the brand makes designs that are signature and enjoy global
recognition, Tiffany and Co. have been sticking to the manufacturing of old designs which
gives its competitors an edge over it.
 Extremely Expensive: Tiffany and Co. is a brand that is way more expensive than its
competitors. However, people with disposable income are always willing to pay for it but
somehow it is losing its potential customers.
 Unable to Capture the Interest of Youngsters: An old name in the luxury business is a lack
of appeal for millennials who are more attracted towards luxury brands that follow trends and
modern styles.
Opportunities
 Investing in Digitalisation & E-commerce: Tiffany and Co. have been investing in its online
store for the past few years and e-commerce platforms have also been successfully established
for the new customer base. Tiffany and Co. have more growth and revenue from Asian
markets such as China, so in October 2018, Tiffany and Co..com opened in China which
adopted new payment methods, using traditional & digital sentiments in its product line can
help the brand in establishing a stronghold in the country.
 Brand Equity: Brand equity is a value premium that a company generates through its
product with a recognizable name when compared to others. Tiffany and Co. have a wide
variety of products in which it deals, it’s especially jewellery and leather goods. The watches
are going slow from 2016 and they only contribute three per cent of the brand’s 5.0 billion
revenue. Tiffany and Co. are working hard on brand equity to widen its range of products.
 Global Expansion: Tiffany and Co. have 300+ stores but still, in a few countries, there is not
much awareness about this brand, so by providing brand awareness to the products they can
target their customers more globally. Tiffany and Co. are facing certain turndowns in some
categories, wider economic, shifting of consumer preference, and fluctuating demand.
 Strengthening Product Line: The brand has already a well-established name and is globally
recognized for its innovations and craftsmanship. It can use its strength to its other products
such as fragrances, watches, water bottles, and others. Tiffany and Co. have to be very
particular about its marketing strategy, it can introduce its product to a new segment and
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should also focus
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on new product lines.

 Attract Tourists Through Capitalizing in Asia: Tourists from other countries often invest in
goods of Tiffany and Co. which the brand can take advantage of to capitalize more on nations
like India and Europe where tourists are the main attraction.
Threats
 Substitution of the Product: Easy substitution of the products is possible as various options
are available to the customers such as Harry Winston, Cartier, Tous, Pandora Jewelry, etc.
 PETA: The backlash from People for the Ethical Treatment of Animals (PETA) over the use
of animal skin for the products as most of the products such as belts, watches, wallets, etc are
manufactured using leather and many products are such made that its deficit is from the
animals and are dependent on that on a large scale.
 Online Competitors: There are some competitors which are taking over the market using
online channels such as BlueStone and CaratLane. People are more pronto easement in
buying if trust is built up properly.
Conclusion
Tiffany and Co. are one of the oldest and prestigious brands, which has a market franchise
with experience of more than 180 years. Also, it has been using different kinds of marketing
strategies to gain brand awareness and to get global reach to the customer.
They have been having many showrooms for centuries and now launching digital stores and
pop-up stores to make their brand more accessible, it has also been focusing on its digital
marketing strategy for better brand visibility and brand awareness.
As most people are using digital media, every business needs to make a strong digital
presence of its business thus digital marketing is very essential.
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CHAPTER 4
METHODOLOGY
The survey technique is intended to secure one or more items of information from a sample of
respondents who are representatives of a larger group. The information is recorded on a form
known as questionnaire. As data are gathered by asking questions from persons who are
believed to have desired information, the method is known as questionnaire technique.
REASONS FOR WIDE USE OF THIS METHOD:
It can secure both quantitative and qualitative information directly from the respondents.
It is the only method of directly measuring attitudes and motivations.
It is quite flexible in terms of the types of data to be assembled, the method of collection or the
timing of research.
PRIMARY SOURCE: Primary sources of data are the data which needs the personal efforts
of collect it and which are not readily available. Primary source of data are the other type of
source through which the data was collected. The data has been collected directly from
respondent with the help of structured questionnaires.
QUESTIONNAIRES: It is the set of questions on a google form which was being given to the
Customer to fill it, bases on which the data was interpreted.
 SECONDARY SOURCE: - Secondary source of data is collected by someone other than the
user. Common sources of secondary data for social science include censuses, surveys,
organizational records and data collected through qualitative methodologies or qualitative
research.
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OBJECTIVE & LIMITATION OF RESEARCH
OBJECTIVE
1. To study Market strategy of Ladies accessories in Luxury segment-
Main objective of these project is how luxury brand do marketing strategy of their
product. Does they do before market strategy (4P’S) or after market strategy (BCG
MATRIX, SWOT) or they use both. Which is more useful for the company. As these
project is base only on ladies segment and ladies are very choice they don’t like old
fashion product every day they want new and fancy product in which they can look
pretty. Does the strategy of the brand is use rightly or they have to change on the
monthly or yearly bases. As to start or develop market every company have to use
strategy in any wat it can be distribution strategy, sales strategy and many more
strategycan be used to be in the market.
2. To study Brand analysis of Ladies accessories in Luxury segment—

Brand analysis is a process of developing brand strategies plan and different luxury
brand do different type of analysis. It help brand to identify whether the brand are
introduce in a right way and also help the brand analysis which product to introduced
in which stage brand analysis include brand strategy, market analysis, competitive
analysis and brand value. Developing financial estimates for the value of a brand.
Typically done in the context of mergers and acquisitions. Developing or evaluating
brand strategies including elements such as brand identity and visual branding.
3. To understand Consumer Buying Pattern of Ladies accessories in Luxury

segment It give the idea how the consumer buy the product from which range and also
there like and dislike. What will be most important for the customer to buy the product
quality, uniqueness and so on?
6
LIMITATION
Limited Area:-
While doing the project only the limited area was cover that was south Mumbai as it can be
done Pan India also but due to shortage of time it was not possible and only 60 respondent
were done in the short period of time
Short period:-
As the project was having a limited time only limited Mumbai area was cover and not more
than 60 respondent was calculated. As project is mostly related to ladies accessories very less
time was given to the topic & No proper analyse was done while doing the project.
6
CHAPTER 5
DATA ANALYSIS AND INTERPRETATION
From the sample size of 60 people. 55% female (34) and 43.3% Male (26) responded to the
survey done for the project. The survey was done in the south Mumbai area only
6
Among the 60 respondent says that 13.3% response was NO (6) and 85% response was YES
(54) they said that they had purchases luxury brand accessories in there life for there daily use
or office use.
6
Among the 54 positive survey who said they purchases luxury accessories were carried
forward in the survey. As most of the customer buy watches which is 31.5% as compare to
jewellery that is 22.2% and shoes which is also 22.2% this survey also suggest that most of
the customer love watches to buy or gifted there loving one it also give light that most of the
customer highly use watches than any other accessories.
6
Among the 55 positive survey most of the customer spent the average between 30,000 to
50,000 or less than 30,000 as both have the same percentage that is 40%. The diagram given
above also says that there are were less number of customer who spent above 70,000 for there
accessories. There are some (18.2%) percent of the customer who spend 50,000 to 70,000 for
there accessories. There were tie between less than 30,000 and 30,000-50,000 most of the
customer pay huge amount on the accessories depend on the preference of accessories they
useor gifted there loves once. Approximate 42 people
6
Among the 55 positive survey most of the customer, 76.4% purchases 1 to 5 times per year
which is positive reaction from the customer they say that they love to buy new item
accessories if it is useful for them in the daily use they responses was toward the basis need
like watches, belt, sunglasses and 18.2% buy more than 5 to 10 time in a year depend on there
like toward the brand.
Among the 55 positive survey most of the customer say that 26.8% buy product because of
there design. They love the design provided by the brand on different accessories from these
we can make out that the customer need different design and uniqueness in the product.
23.2% prefer quality to buy the branded accessories, quality is important for them then
uniqueness of the product. And lest preference is given to the advertising
6
Among the 55 positive survey most of the customer say that 44.6% Magazine receive fashion
information from magazine as every month different magazine has different fashion
accessories and branded company are least interested in advertising in TV serials and
newspaper. 23.2% customer received fashion information from websites of the company.
25% customer received fashion information from there friends and family.
6
Among the 55 positive survey most of the customer prefer Offline i.e 80% for buying branded
accessories the customer want to buy the product offline because they are paying huge for that
product so they want to touch and feel the product and also to find out whether it suits to them
or no. 20% prefer to buy Online because they want to safe there time and utilized that time in
something else.
7
Among the 44 Offline customer prefer to buy the product from the specialty stores 47.7%
refer to buy from Specialty store, least percentage was given to Malls i.e. 22.7% and the
second highest percentage is given to Multi Brand outlets i.e. 29.5%. We can find that 47.7%
buy from Specialty store them our loyal customer or they love the band to use. In Multi Brand
Outlets customer may have different option to buy the product in a same range with a
uniqueness in them.
7
CHAPTER 6
FINDINGS
Fromtheaboveprimary datathefindingforladiessectorin luxurybrandwere
 Mostly use magazine or fashion show- Magazine is mostly use by the brand as there is
less growth in social media as compare to magazine, exhibition and so on.
 Before services – Some brand gives before service, employees go to the customer
home with there product so customer can touch the product. It also save the customer
time. Every things is done on the door step of the customer which is useful for the
customer they can save there time and utilize the time for other work.
 Ready to pay huge amount for customize product- Designs customized apparels that
are simply breathe taking and unique. It charges extra for such items because of its
exclusive nature. The company has adopted high premium pricing for such products.
All its customers are ready to pay the prices set up by the brand and hence the
company has been able to hold its reputation in the consumer market with success
 Uniqueness in the product- Designs customized apparels that are simply breathe taking
and unique.
 After services- After services is been given by the brand in these way some customer
are loyal and some love to buy from the brand for their services. Services play a huge
role to develop the business.
 Customer mostly prefer to buy watches as an accessories as compare to other

accessories like jewellery, shoes, makeup and so on.
7
From the secondary data in market strategy finding were:-
 Customization- As seen above some of the brand do customization in the product or

services for their customer requirement. As each customer pay huge for the luxury
accessories so they want well as per their preference.
 Distribution- Products are highly exclusive and sold with the same mindset of
providing exclusive accessibility. Some of brand have limited channels of exclusive
distribution. Brand do not sell any of their branded products in departmental stores.
 Handcrafted produced- Employee are highly skill in manufacturing the product and
most of product are branded make handcrafted product.
 Social networks- now a coming generation are mostly using social media. That’s why
now brand are focusing more on social media.
 Logistic support
7
CHAPTER 7
CONCLUSION
 From the above source that is primary and secondary data I can concluded by saying
that the Indian consumer prefer branded accessories. The brand use different market
strategy to manufacture, promote their product with unique technique in them.
 Service provided by the brand employee create Customer relationship management

(CRM data) to the company which can be use future to maintain the relation and also
to take feedback any time from the customer.
 Brand do customization in the product or services for their customer requirement. As

each customer pay huge for the luxury accessories so they want well as per their
preference. Employee are highly skill in manufacturing the product and most of
product are branded make handcrafted product. Products are highly exclusive and sold
with the same mindset of providing exclusive accessibility. Some of brand have
limited channels of exclusive distribution. Brand do not sell any of their branded
products in departmental store.
 The Indian Luxury Consumer has grown from “Aspirer” to “Acquirer” There has been
an observant annual growth of 25 per cent in the luxury sector. Its present and future is
estimated to be at US$4.77 billion. The market in India has increase three times its
current share at US$14.73 billion by 2019.
7
CHAPTER 8
RECOMMENDATIONS
 The companies should implement Big Data Analysis for excellent understanding and
satisfying the target customer.
 Market driven firms should understand customer requirement and strategize

accordingly.
 Brands should go for customization of product and services.
 Luxury Brands should invest their resources in research for distinctive product
development.
 By providing a superior value proposition and meeting the problems, desires and
needs of the customers more appropriately, the brand can head toward enhancing and
improving the customer satisfaction and loyalty metrics.
 Enduring Brand relationships are important developments and a manner in which this
can be achieved by encouraging loyalty towards the brand by using tools such as
incentive programmed for the customers.
 Creating a loyal customer base there is more of a guarantee of more of future sales and
profits, which in turn contributes to positive brand equity.
7
BIBLIOGRAPHY
https://en.wikipedia.org/wiki/Versace
https://en.wikipedia.org/wiki/Tiffany_%26_Co.
https://en.wikipedia.org/wiki/Manolo_Blahnik
https://www.therichest.com/expensive-lifestyle/fashion/the-top-10-luxury-brands-that-
women-love/
http://www.yourarticlelibrary.com/economics/consumption-of-luxuries-advantages-and-
disadvantages/10550
https://en.wikipedia.org/wiki/Gucci
https://en.wikipedia.org/wiki/Louis_Vuitton
https://en.wikipedia.org/wiki/Chanel
https://www.marketing91.com/swot-analysis-chanel/
https://www.mbaskool.com/marketing-mix/products/17280-chanel.html
https://www.marketing91.com/marketing-mix-louis-vuitton/
http://guillermoserrahv.wixsite.com/manoloblahnik/marketing-mix
http://guillermoserrahv.wixsite.com/manoloblahnik/market-segmentation
https://www.marketing91.com/marketing-strategy-gucci/
https://www.marketing91.com/swot-gucci/
https://luxury.wbresearch.com/tiffany-co-diamond-digital-marketing-strategy-ty-u
https://www.mbaskool.com/marketing-mix/products/17449-tiffany.html
ANNEXURE
1. Gender
 Male
 Female
 Prefer not to say
2. Have you ever purchases branded accessories?
 Yes
 No
 Maybe
3. If yes then what kind of accessories have you purchases?
 Shoes
 Jewellery
 Watches
 Make-up
 Hand bags
 Other
4. How much do you usually spend on luxury accessories?
 Less than 30,000
 30,000-50,000
 50,000-70,000
 70,000 & Above

5. How often do you purchase a new item of accessories?
 1-5 times per year
 More than 15 times
6. Out of the following what influence the purchasing power?
 Brand Name
 Product Design
 Price range
 Quality
 Advertising
7. You prefer receiving fashion information from which of the following sources?
 T.V Channel
 Newspaper
 Magazine
 Website
 Friends or family members
 Other
8. Which mode do you prefer while buying branded accessories?
 Online
 Offline
9. Which type of offline do you prefer most while buying branded accessories?
 Multi Brand Outlets
 Specialty Stores
 Malls
SOCIAL RELEVANCE PROJECT
DECLARATION
I hereby declare that this project report submitted by me to the partial fulfillment of the
requirement for the award of MASTER OF MANAGEMENT STUDIES (MMS) of
the University of Mumbai is a bonafide work undertaken by me and it has not been
submitted to any other University or institution for the award of any other degree or
diploma certificate or published any time before.

CERTIFICATE
This is to certify that the “Corporate Social Responsibility of Amul”, has been
successfully completed by Ms. Vaishnavi Sanjay Gawande during the MMS II, SEM
IV in partial fulfillment of the Master’s degree in Management Studies recognized by
the University of Mumbai for the academic year 2020-2022. This project work is
original and has not been submitted earlier for the award of any degree, diploma or
associateship of any other University / Institution.
Date: 10/04/2022

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY
Project work helps me to deal with the real business situation. Project report consists of thebrief
description of an organization AMUL. And also consist of a section which provide the overview
and background information about the various department of the organization also suchRole of
activism, Corporate Social Responsibility (CSR).
In this case the company is reorganizing. The AMUL is taking care of its employees and society is
more competitive and aggressive. It take care of its customers. This case is about the activities and
functions of company is how affected its environment, structure and responsibility. AMUL has
various csr initiatives for the society by doing various activities and benefiting the society.
AMUL is a Model Corporate Entity with Social Responsibility and also builds a powerful
partnership with society for ‘Sustainable Development’. This includes making substantial
investments for nearly a decade and a half in them to make them fully self-reliant, providing them,
sanitation facilities, medical facilities, enhancing their income standards by providing various
programmes to poor people. AMUL also firmly believes that the only vehicle for raising the
villagers by providing them health care services, a focus on providing grants for opening schools
and opening adult literacy camps as well. AMUL also believes in maintain environment by
planting nearly 600 crores of plants and carried out various social activities for society.
Amul Relief Trust" (ART) under the Chairmanship of Dr. V. Kurian in 2001 with a donation ofRs.
50 Millions for reconstruction of the school buildings damaged in the 2001 earthquake in the
Kutch area. At a cost of Rs.41.1 millions in Kutch area. Four of these schools started re-
functioningfrom the last two academic sessions and the other two schools from the current session.
INDEX
Sr. No Particulars Page

No.
INTRODUCTION
OBJECTIVES
1 SCOPE & SIGNIFICANCE OF THE STUDY 1
LIMITATION OF STUDY
REVIEW OF LITERATURE 4
2
INTRODUCTION OF CSR IN
INDIA CSR POLICY IN INDIA
TYPES OF CSR
3 ADVANTAGES OF CSR
ISSUES FACED BY COMPANIES 6
RESEARCH METHODOLOGY 24
4
CORPORATE RESPONSIBILITY BY AMUL 25

5
IMPACT OF AMUL CSR ON SOCEITY 46

6
CSR ACHIEVEMENTS 48
7
FUTURE OUTLOOK 50
8
CONCLUSION 52
9
BIBLOGRAPHY
Corporate Social Responsibility of
CHAPTER 1
INTRODUCTION
Corporate social responsibility (CSR, also called corporate conscience, corporate citizenshipor
sustainable responsible business/ Responsible Business) is a form of corporate self-regulation
integrated into a business model. CSR policy functions as a self-regulatory mechanism whereby
a business monitors and ensures its active compliance with the spirit of the law, ethical standards
and international norms. With some models, a firm's implementation of CSR goes beyond
compliance and engages in "actions that appear to further some social good, beyond the interests
of the firm and that which is required by law." CSR aims to embrace responsibility for corporate
actions and to encourage a positive impact on the environment and stakeholders including
consumers, employees, investors, communities, and others.
The term "corporate social responsibility" became popular in the 1960s and has remained a term
used indiscriminately by many to cover legal and moral responsibility more narrowly construed.
Proponents argue that corporations increase long term profits by operating with a CSR
perspective, while critics argue that CSR distracts from business' economic role. A 2000 study
compared existing econometric studies of the relationship between social and financial
performance, concluding that the contradictory results of previous studies reporting positive,
negative, and Critics questioned the "lofty" and sometimes "unrealistic expectations" in CSR or
that CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a
watchdog over powerful multinational corporations.
Political sociologists became interested in CSR in the context of theories of globalization,

neoliberalism and late capitalism. Some sociologists viewed CSR as a form of capitalist
legitimacy and in particular point out that what began as a social movement against uninhibited
corporate power was transformed by corporations into a 'business model' and a 'risk management'
device, often with questionable results.
CSR is titled to aid an organization's mission as well as a guide to what the company stands for to
1
its consumers. Business ethics is the part of applied ethics that examines ethical principles and
moral or ethical problems that can arise in a business environment. ISO 26000 is the recognized
international standard for CSR. Public sector organizations (the United Nations for example)
adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to similar
principles, but with no formal act of legislation.
1 OBJECTIVES
 To study the concept of CSR
 To study the Importance of CSR
 To understand Benefits of CSR
 To study various CSR Activities held by Amul
2 SCOPE & SIGNIFICANCE OF THE STUDY
The study is confined to analyzing the social responsibility undertaken by Amul limited
through their corporate offices branches and subsidiaries.
India is the 2nd highest populous country in the world. Most of the population is living in the
villages. India has achieved 65 % literacy rate only. Majority of the rural people are illiterates,
not accessible to good health facilities and nutritious food. 20 percent of the rural people are in
the poverty line. The business houses are earning profits by rendering their services to customers
in society. The government alone can’t uplift the downtrodden people
The corporate houses have to come forward to do their part towards development of the society.
This contribution will be helpful to the organizations to enhance their brand awareness and
reputation in the market. The society development should be treated as an integral part of the
organization’s strategy. CSR strategies promote the corporate sustainable development as well as
society as at large. Therefore community development is a responsibility of the government, non-
governmental organizations and business organizations as well.
2
3 LIMITATION OF STUDY
1. No proper breakdown of expenses made for CSR available, also there is no estimate is
shown by company for expenses made by them for CSR
2. In detail information were not disclosed by company regarding CSR Activities
3. Total expenditure for CSR is not disclosed by the company.
3
CHAPTER 2
LITERATURE REVIEW
1. Prasenjit Maiti on his paper entitled “It is Politics or Profits or even Compassion?
Unraveling the Motivation for Corporate Citizenship” tried to analyses theoretically the motives
of corporate before their CSR initiatives. The study found that CSR is related to profits, power
plays, politico-legal equation, situation of market flux, responsible images, humane concerns and
other ethical dynamics.
2. Mallen Baker in his article on “Four emerging trends in Corporate Responsibility” tried
to elucidate three basic things about the trends of CSR that have changed from last so many
years. Firstly, the relationship between business and society has changed. They have come closer
because of the social and environmental problem prevailing around the world. Secondly, the
strategy of the businessman to develop business also affected the society a lot. Their new
ideas, concept, developments also came with CSR management that reflects in their product and
services. Lastly, the changes of CSR are also affected by other parties like outside agencies and
the firm’s own goals that interfere the firm’s activity.
3. Harbajan Bansal, Vinu Parida and Pankaj Kumar in their paper entitled “Emerging trends
of CSR in India” analyzed 30 companies of 11 sectors listed in the Bombay Stock Exchange with
the help of their annual reports. Some of these sectors were Transport Equipment sector, Finance
and Metal Mining sector, IT & Power, Capital goods, Telecom, Housing, FMCG, Oil & Gas,
Cipla etc. The study concluded that the companies today are working not only to earn profit but
have also realized the importance of being social friendly. Social Responsibility today has started
taking a turn in the new direction.
4
4. Harish Kumar (2012) in his research article entitled “CSR Revisited” has thrown
lights onfour different approaches of companies towards CSR viz; Good Governance,
Ruinous CSR, Discretionary CSR, and Illusion CSR. He also tried to highlight
argument against the CSR as wellas the CSR driver. The researcher also found eight
factors that drive the CSR initiatives. They are Philanthropic Attitude, Governmental
Actions, Environmental Concern, Ethical Consumerism, Crises and Calamities,
Globalization and Market force, Social Awareness & Education, and SocialExpectation.
5. Dr. M. Ramana Kumar in his study on CSR (Analysis of select Indian Private
and Public sector companies) tried to analyse the CSR activities carried out by Indian
Private (Reliance Industries Ltd.) and public sector companies (ONGC) and also study
the Indian government policies and programmes of CSR. The study revealed that though
the Indian public and private firms are making efforts in the CSR areas, still there is a
requirement of more emphasis on CSR. The study found that there is a significant
difference in the CSR practices of RIL and ONGC as the CSR budget of ONGC is more
than RIL during the year 2009-10, 2010-11, and 2011-12 and average CSR score of
ONGC is more than that of RIL during 2009 to 2013.
5
CHAPTER 3
CORPORATE SOCIAL RESPONSIBILITY IN INDIA
3.1. CSR IN INDIA

Now Corporate Social Responsibility (CSR) is well accepted among shareholders as well as with
various other stakeholders of society in India. The term CSR is new normal for Indian
organisations. CSR tends to focus on what is done with profits after they are made. Larger
corporations understand that CSR is an integral part of business framework for sustainable
development. Companies also consider that CSR is an approach towards sustainable development
and focus on the triple bottom line of Economic, Environmental and Social performance.
In India, the term Corporate Social Responsibility (CSR) is widely being used even though related
concepts and terms, such as business responsibility, sustainable development, philanthropy,
sustainability, corporate citizenship, responsible business, triple bottom line, shared value, value
creation, business ethics, socio-economic responsibility, bottom of pyramid, stakeholder
management, corporate responsibility, and corporate social performance.
The CSR activities of Indian companies are in line with the provisions of Section 135 with
Schedule VII to the Companies Act, 2013. The CSR initiatives of companies thrust on creating
value in the lives of the communities around its areas of business and manufacturing operations.
CSR has become an effective tool to work in the line of Sustainable Development Goals (SDGs)
with a strong focus on social performance indicated in the CSR projects of the organizations. The
SDGs, otherwise known as the Global Goals, are a universal call to action to end poverty, protect
the planet and ensure that all people enjoy peace and prosperity.
Most of the businesses consider community as one of its apex stakeholders and believes in
inclusive growth. This year most of the organisations continued its CSR initiatives in the realmof
Education, Health, Livelihood, Rural Development and Social Entrepreneurship.
Organization’s diverse projects and operations touch lives of people in many ways and createvalue
6
by helping in overall and holistic development of communities within multiple geographies.
Through its various initiatives, Companies endeavor to play a relevant role by serving
communities and projects that address gaps in basic societal requirements.
Conscious business decisions by the Companies have directly and indirectly created value for
multiple stakeholders and helped in improving lives of the people and species. Businesses in
India believed in creating societal value by providing affordable products and services which
have assisted in the growth of relevant and allied industries. Across all its areas of operations
ofBusiness, there are inherent linkages and interconnections with the immediate and long
term societal impact.
Most of the business have a practice of reporting the CSR performance not only in Annual
Report but also in dedicated Annual CSR Report and Sustainable Development Report. These
reports are externally verified and are in accordance with the Global Reporting Initiative
(GRI)guidelines and Business Responsibility Report, mandated by the law and competent
authorities.
CSR initiatives are conceptualized and implemented through Corporate Foundations, Non-
Government Organisation (NGOs) and Agencies and not-for-profit organisations. Most of the
organisations worked on 4P model (Public-Private-People-Partnership) for empowering
communities and stakeholders. Businesses have positively impacted lives particularly of several
hundreds of thousand underprivileged people through various CSR activities and approaches.
It has been observed that for Indian Companies, Corporate Social Responsibility (CSR) is the
commitment of businesses to contribute to sustainable economic development by working
withthe employees, their families, the local community, experts and the society at large to
improve lives in ways that are good for business and for its development.
In the broad manner, CSR segment of the organisation is guided by the Board of Governance,
Business DNA, CSR and Sustainability Mission of the Companies. In compliance with the
provisions of Section 135 of the Companies Act, 2013 with the Companies (Corporate Social
Responsibility Policy) Rules, 2014, Companies have taken measures and steps to ensure
7
improvement and betterment.
8
Most of the businesses seek to continue its contribution to the society through its distinct value
proposition that meets the needs of millions of people, enhancing their lives through education,
healthcare, improving quality of living by providing attitude, means and enabling livelihoods by
creating employment opportunities through and for the Business, By the Business and Beyond
the Business.
For the Business, value is being created for the society through business including employment
generation, market growth and opportunity creation. By the Business- value is also being created
through Corporate Social Responsibility (CSR) interventions across different operating facilities
with appropriate linkages to local communities in which businesses operate and Beyond
Business- value is being created through interventions for the societies in diverse
geographiesacross India through creation of demand and services.
At public sector business organisations in India, CSR has been also looked upon as closely
linked with the principle of sustainable economic development, which demand that organization
should make decisions and act based not only on financial factors but also on immediate and
long term social and environmental consequences of their operations and activities.
Businesses in India have been sensitive towards the concerns of society and is committed to
operating its core business in a socially responsible way by taking into consideration the wider
interests of the community and the environment.
Seven pillars of CSR strategy
1. Need of partnership in CSR
2. Cross learning
3. Supplementing and nurturing CSR
4. Per beneficiary cost reduction and maximizing the impact while reaching more people
9
5. Knowledge management and documentation
6. Use and reuse of resources for better CSR
7. Capacity building of the CSR workforce and re-skilling
Need of partnership in CSR
Business organisations now recognise Corporate Social Responsibility (CSR) as a great

opportunity to significantly strengthen their businesses – while building, strengthening and
renewing human, social and natural resources and wealth. Finding the right kind of partners is
absolutely important to the success of a CSR strategy. We are in connected world.
All issues are connected to the other issues, perspective and environment. Working alone is good
but working together is great. Working alone yields lesser benefits as compared to the working
together always. CSR world should explore togetherness by partnering with other entities.
Togetherness in addressing the social and environmental issues is good for all. CSR world
should encourage partnership to execute the mega social projects.
To fulfil the corporate social responsibility (CSR) goals businesses have to realise and act in
partnership. Formation of partnerships has played a very significant role in progress and
prosperity across the world. Partnership brings companies, businesses, people and society
together and then pool their resources together in order to achieve the set goals. Partnerships
isCSR is need of hour. Partnership opens doors for cross learning of knowledge and experiences.
Cross learning in CSR
Cross learning is key to CSR strategies. Learning improves performance and minimise risks.
Effective partnership among likeminded organisations for CSR execution ensures cross
learning in Corporate Social Responsibility. CSR leaders from different organisations must visit
specific CSR locations of other organisation where CSR projects are being implemented and
meanwhile they should meet the beneficiaries to gain new insights. CSR leaders must build a
deep understanding of the socio-economic issues and they must be open enough to understand
issues
1
both from a business and a societal perspective. Learning from others in CSR can save time and
resources. Concentrate on your CSR efforts but same time CSR leaders must learn from variety
of successful CSR programmes. The greatest opportunities will come from areas where the
business significantly interacts with society. Cross learning in CSR is immensely helpful in
supplementing and nurturing CSR programme and projects.
Supplementing and nurturing CSR
Good CSR strategy and projects must be encouraged and supplemented. Opportunities for
complementing and supplementing ongoing social projects and initiatives, programmes must be
explored. Supplementing CSR emphasises on the sustainability of projects and programmes to
ensure they remain relevant and viable even upon disengagement at the end of the project period.
Every organisation explore possibilities for collaborating and co-operating with other
corporations in order to synergise its efforts and increase both financial and social resources as
well as outcomes and impact. Businesses may consider in supplementing even in smaller well
defined CSR projects. Supplementing the CSR projects by the smaller or larger organisations
matter in order to ensure optimal utilisation of the CSR budget and resources.
Per beneficiary cost reduction in CSR
Per beneficiary cost reduction and maximizing the impact while reaching more beneficiaries in
CSR is key to success. Business organisations have a variety of motives for being attentive to
CSR and run a CSR projects. Leaders can increase impact and reduce costs when they
understand the role of Corporate Social Performance (CSP) in driving CSR Performance (CP).
Business should think of reaching more people by using less money and resources. Reduction in
per beneficiary cost can be achieved by the partnership, collaboration, cross learning and reuse
of resources.
Knowledge management and documentation
CSR reporting practices strengthen organizations. The process of documenting and

communicating CSR practices provides benefits to corporations, including the ability to
formalize their position on CSR, identify organisational strengths and weaknesses, and
1
managestakeholder
1
relationships and expectations. In India, any shortfall in spending in CSR shall be explained in
the financial statements and the Board of Directors shall state the amount unspentand reasons for
not spending that amount. As per the CSR Law, the CSR Committee of organisation shall
institute a transparent monitoring mechanism for implementation of the CSR projects or
programs or activities undertaken by the company.
Documentation, reporting and communication of the CSR performance in crucial to the CSR
strategy. Documentation of the CSR must be organised and structured and should be accessible.
Companies can explore the new way of documentation, reporting and communications.
Use and reuse of resources for better CSR
Effective use and reuse of resources can improve the CSR performance. Awareness on use and
reuse of resources among across the stakeholders can help in achieving the desired goals of CSR
sustainability. Sustainable CSR can be achieved through community and beneficiaries
engagement. CSR is a process oriented task.
Recycling and reuse often are the easiest places to start. CSR leaders should take the essential
steps to recycle the commonly recyclable materials, and look for easy opportunities to replace
disposable or recyclable items with reusable ones. CSR leaders also should look for partners to
help with more challenging to recycle or exotic materials, as well as for opportunities to
introduce reusable packaging. And of course, look upstream to design new idea, services and
programmes.
Capacity building of the CSR workforce and re-skilling
In the fast changing world, capacity building of CSR workforce and re-skilling them are always
relevant and are key to CSR performance. Human resource are fundamental requirement. CSR
leaders must empower their subordinates by providing them right attitude, knowledge,
information and trainings. Same time, CSR managers also be open to learn new things.
Developing soft skill, professional skill, project management skill and leadership skill among
CSR workforce is continuous process. Rigorous training, development and re-skilling of the CSR
manners can save time, efforts and resources.
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3.2. CSR POLICY AS PER COMPANIES ACT 2013
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3.3. TYPES OF CSR
The idea behind corporate social responsibility is that companies have multiple responsibilities to
maintain. These responsibilities can be arranged in a pyramid, with basic responsibilities closer
to the bottom. As a business meets lower-level responsibilities that obligateit to shareholders and
the law, it can move on to the higher level responsibilities that benefit society.
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ECONOMIC RESPONSIBILITIES
A company's first responsibility is its economic responsibility -- that is to say, a companyneeds

to be primarily concerned with turning a profit. This is for the simple fact that if a companydoes
not make money, it won't last, employees will lose jobs and the company won't even be ableto
think about taking care of its social responsibilities. Before a company thinks about being a good
corporate citizen, it first needs to make sure that it can be profitable.
LEGAL RESPONSIBILITIES
A company's legal responsibilities are the requirements that are placed on it by the law. Next to
ensuring that company is profitable, ensuring that it obeys all laws is the most important
responsibility, according to the theory of corporate social responsibility. Legal responsibilities
can range from securities regulations to labor law, environmental law and even criminal law.
ETHICAL RESPONSIBILITIES
Economic and legal responsibilities are the two big obligations of a company. After a company
has met these basic requirements, a company can concern itself with ethical responsibilities.
Ethical responsibilities are responsibilities that a company puts on itself because its owners
believe it's the right thing to do -- not because they have an obligation to do so.
Ethicalresponsibilities could include being environmentally friendly, paying fair wages or
refusing to dobusiness with oppressive countries, for example.
PHILANTHROPIC RESPONSIBILITIES
If a company is able to meet all of its other responsibilities, it can begin meeting philanthropic
responsibilities. Philanthropic responsibilities are responsibilities that go above andbeyond what
is simply required or what the company believes is right. They involve making an effort to
benefit society -- for example, by donating services to community organizations, engagingin
projects to aid the environment or donating money to charitable
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3.4. ADVANTAGES OF CSR
Organizations of all sizes are rapidly discovering that Corporate Social Responsibility
(CSR) and sustainable business practices can foster improved green programs and overall
environmental stewardship.
Today, we are seeing increased awareness and active participation by business professionals
in the development of CSR policies. Organizations are increasingly more involved in green
initiatives by adopting sustainable processes and practices, adapting products and services to the
low-carbon economy and innovating in all areas their business. The net positive on reducing
waste, designing green buildings, implementing green operations and maintenance plans — all
have continually proven to yield a positive return on investment (ROI).
CSR has come to rely on a more complex set of factors than corporate governance alone,
and likewise also depends on sustainable development, environmental impact and supply chain
management.
The development of the new carbon trading markets, verified emission reductions (VERs), also
known as carbon offsets, and renewable energy credits (REC‘s), it has become easier for
organizations to create and measure direct ROI from CSR. Likewise, CSR efforts have shown to
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yield measurable returns in waste reduction, improved efficiency, diminished liabilities,

improved community relations, and brand recognition.
Through communicating clear and measurable sustainability objectives and the implementation
of practical and equally functional corporate governance mechanisms, organizations are realizing
that they can have a achieve ROI through their sustainability efforts.
Integral strategies in ensuring substantive long-term results include:
 Define path of progress in CSR and strategically manage expected organizational outcomes
 Ensure basic CSR values are culturally integrated across the organization
 Adopt an effective engagement strategy with stakeholders to create buyer awareness and
loyalty
 Properly map organizational objectives and critical success indicators with CSR
performance metrics
Innovative organizations that understand the value of CSR work to create a corporate culture in
which each employee is committed to doing his or her part to improve the environment.
According to Forrester Research, effective CSR and sustainability practices within large
companies have been shown to contribute to a profit increase up to 35 percent. Other benefits of
CSR activities are as follows:
1. Increased employee satisfaction

The way a company treats its community says a lot about how a company treats its employees.
People that feel respected and supported in their jobs are often more productive and satisfied at
work. Giving your employees opportunities to volunteer, especially during working hours,
creates a sense of community within your organization, as well as a connection to the
surrounding community. Employees will gain motivation and pride in their work through these
personal- development opportunities.
Employees that are actively involved in the community are also acting as brand ambassadors.
The more engaged and invested they are in your organization, and the greater community, the
more productive they will be. In fact, companies with highly engaged employees saw 21% better
business profitability. What could be better than happy employees promoting your brand while
helping their neighbors?
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2. Improved public image

In today’s digital era, companies that demonstrate corporate social responsibility are gaining
exposure — and praise — for their involvements. Your brand’s reputation can only benefit from
good deeds in your community. Think about it: Consumers feel good when they buy products
and services from companies that are helping their community.
Don’t miss the opportunity to publicize your CSR initiatives and spread the word about your
community involvement. Tweet, post, and share your social programs. Letting the public know
about your good deeds will only work to increase your brand’s public image.
3. Increased customer loyalty

In a 2016 Neilson survey, 56% of participants said “a brand being known for its social value”
was a top purchasing driver. And 53% of participants said “a brand with community
commitment” was a leading purchasing driver.
Customers are more likely to be loyal to your brand if your corporate values align with their
personal ones. What’s more, millennials — the largest population, over baby boomers, by 2019
— are driving the market these days. According to Forbes contributor Sarah Landrum,
millennials prefer to do business with “corporations and brands with pro-social messages,
sustainable manufacturing methods, and ethical business standards.” CSR programs work to
showcase your corporate values and demonstrate that team work, community involvement, and
engagement are at the top of your core values.
4. Increased creativity
Want your employees to start thinking outside of the box? Want to increase innovation in your
company? CSR initiatives encourage your employees to try new things and get re-energized
about their jobs.
Through this social involvement, employees will feel empowered to start contributing to the
bigger picture. They might come up with new ideas about products or internal processes or
innovate new problem-solving solutions. When you demonstrate your company’s values and
passions through community giving, employees will feel encouraged (and supported) to develop
new and better ways to do their jobs.
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3.5.ISSUES & CHALLENGES FACED BY COMAPNIES
Many companies think that corporate social responsibility is a peripheral issue for their
business and customer satisfaction more important for them. They imagine that customer
satisfaction is now only about price and service, but they fail to point out on important changes
that are taking place worldwide that could blow the business out of the water. The change is
named as social responsibility which is an opportunity for the business. Some of the drivers
pushing business towards CSR include:
 The Shrinking Role of Government: In the past, governments have relied on legislation
and regulation to deliver social and environmental objectives in the business sector.
Shrinking government resources, coupled with a distrust of regulations, has led to the
exploration of voluntary and non-regulatory initiatives instead.
 Demands for Greater Disclosure: There is a growing demand for corporate disclosure
from stakeholders, including customers, suppliers, employees, communities, investors, and
activist organizations.
 Increased Customer Interest: There is evidence that the ethical conduct of companies
exerts a growing influence on the purchasing decisions of customers. In a recent survey by
Environics International, more than one in five consumers reported having either rewarded
or punished companies based on their perceived social performance.
 Growing Investor Pressure: Investors are changing the way they assess companies'
performance, and are making decisions based on criteria that include ethical concerns. The
Social Investment Forum reports that in the US in 1999, there was more than$2 trillion
worth of assets invested in portfolios that used screens linked to the environment and social
responsibility. A separate survey by Environics International revealed that more than
aquarter of share-owning Americans took into account ethical considerations when buying
andselling stocks. (More on socially responsible investment can be found in the 'Banking
and investment' section of the site.)
 Competitive Labour Markets: Employees are increasingly looking beyond paychecks and
benefits, and seeking out employers whose philosophies and operating practices match
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their own principles. In order to hire and retain skilled employees, companies are being
forced to improve working conditions.
 Supplier Relations: As stakeholders are becoming increasingly interested in business
affairs, many companies are taking steps to ensure that their partners conduct themselves in
a socially responsible manner. Some are introducing codes of conduct for their suppliers, to
ensure that other companies' policies or practices do not tarnish their reputation. Dr Ratnam
said the concept of CSR had different meanings depending on the stakeholder and that
depending on the specific situation of the enterprises expectations can also vary. A CSR
project can begin in response to a crisis or adverse publicity that a company may suffer. The
motive for launching CSR can vary between philanthropy or notions of corporate
citizenship. In India, over time, the expectations of the public has grown enormously with
demands focusing on poverty alleviation, tackling unemployment, fighting inequality or
forcing companies to take affirmative action.
 Lack of Community Participation in CSR Activities: There is a lack of interest of the
local community in participating and contributing to CSR activities of companies. This is
largely attributable to the fact that there exists little or no knowledge about CSR within the
local communities as no serious efforts have been made to spread awareness about CSR and
instil confidence in the local communities about such initiatives. The situation is further
aggravated by a lack of communication between the company and the community at the
grassroots.
 Need to Build Local Capacities: There is a need for capacity building of the local non-
governmental organizations as there is serious dearth of trained and efficient organizations
that can effectively contribute to the ongoing CSR activities initiated by companies. This
seriously compromises scaling up of CSR initiatives and subsequently limits the scope of
such activities.
 Issues of Transparency: Lack of transparency is one of the key issues brought forth by the
survey. There is an expression by the companies that there exists lack of transparency on the
part of the local implementing agencies as they do not make adequate efforts to disclose
information on their programs, audit issues, impact assessment and utilization of funds. This
reported lack of transparency negatively impacts the process of trust building between
companies and local communities, which is a key to the success of any CSR initiative at the
locallevel.
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 Non-availability of Well Organized Non-governmental Organizations: It is also reported

that there is non-availabilityof well-organizednongovernmentalorganizations in
remoteandruralareasthat canassessandidentifyrealneedsofthe
communityandworkalongwithcompaniesto
 COST-BENEFIT ANALYSIS
In competitive markets cost-benefit analysis of CSR initiatives, can be examined using

a Resource-Based View (RBV). According to Barney (1990) "formulation of the RBV,
sustainable competitive advantage requires that resources be valuable (V), rare (R), inimitable (I)
and non- substitutable (S)." A firm introducing a CSR-based strategy might only sustain high
returns on their investment if their CSR-based strategy could not be copied (I). However, should
competitors imitate such a strategy, that might increase overall social benefits. Firms that choose
CSR for strategic financial gain are also acting responsibly.
RBV presumes that firms are bundles of heterogeneous resources and capabilities that are
imperfectly mobile across firms. This imperfect mobility can produce competitive advantages for
firms that acquire immobile resources. McWilliams and Siegel (2001) examined CSR activities
and attributes as a differentiation strategy. They concluded that managers can determine the
appropriate level of investment in CSR by conducting cost benefit analysis in the same way that
they analyze other investments.
Reinhardt (1998) found that a firm engaging in a CSR-based strategy could only sustain an
abnormal return if it could prevent competitors from imitating its strategy.
 TRIPLE BOTTOM LINE
"People, planet and profit", also known as the triple bottom line form one way to evaluate
CSR. "People" refers to fair labour practices, the community and region where the business
operates. "Planet" refers to sustainable environmental practices. Profit is the economic value
created by the organization after deducting the cost of all inputs, including the cost of the capital
(unlike accounting definitions of profit).
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This measure was claimed to help some companies be more conscious of their social and moral
responsibilities. However, critics claim that it is selective and substitutes a company's perspective
for that of the community. Another criticism is about the absence of a standard auditing
procedure.
 BRAND DIFFERENTIATION
CSR can help build customer loyalty based on distinctive ethical values. Some companies
use their commitment to CSR as their primary positioning tool, e.g., The Co-operative Group,
The Body Shop and American Apparel.
Some companies use CSR methodologies as a strategic tactic to gain public support for their
presence in global markets, helping them sustain a competitive advantage by using their social
contributions as another form of advertising.
 WHY SHOULD BUSINESS BE SOCIALLY RESPONSIBLE:-
Social responsibility is a voluntary effort on the part of business to take various steps to
satisfy the expectation of the different interest groups. The various interest groups may be
owners, investors, employees, consumers, government and society or community. But the
question arises, why the business should come forward and be responsible towards these interest
groups. Let us consider the following points:
 PUBLIC IMAGE
The activities of business towards the welfare of the society earn goodwill and reputation
for the business. The earnings of business also depend upon the public image of its activities.
People prefer to buy products of a company that engages itself in various social welfare
programmes. Again, good public image also attracts honest and competent employees to work
with such employers.
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 GOVERNMENT REGULATION
To avoid government regulations businessmen should discharge their duties voluntarily. For
example, if any business firm pollutes the environment it will naturally come under
strictgovernment regulation, which may ultimately force the firm to close down its business.
Instead,the business firm should engage itself in maintaining a pollution free environment.
 SURVIVAL AND GROWTH

Every business is a part of the society. So for its survival and growth, support from the
society is very much essential. Business utilizes the available resources like power, water, land,
roads, etc. of the society. So it should be the responsibility of every business to spend a part of its
profit for the welfare of the society.
 EMPLOYEE SATISFACTION
Besides getting good salary and working in a healthy atmosphere, employees also expect
other facilities like proper accommodation, transportation, education and training. The employers
should try to fulfill all the expectation of the employees because employee satisfaction is directly
related to productivity and it is also required for the long-term prosperity of the organization. For
example, if business spends money on training of the employees, it will have more efficient
people to work and thus, earn more profit.
 CONSUMER AWARENESS
Now-a-days consumers have become very conscious about their rights. They protest
against the supply of inferior and harmful products by forming different groups. This has made it
obligatory for the business to protect the interest of the consumers by providing quality products
at the most competitive price.
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CSR STRATEGIESFOCUSING ON PROTECTIONRATHERTHAN

COMPETITIVE ADVANTAGE
A CSR strategy that is focused on avoiding regulatory liability and maintaining a license to operate in
thecurrent business will neither lead to current competitive advantage nor an imagination of future
business models. Managing regulations, risk and legitimacy (license to operate) is also reflected in
the main capabilities emphasized by the respondents: ethical behavior, social accountability
andstakeholder engagement. In order to leverage its CSR/sustainability strategy for competitive
advantage, an organization needs the advanced capabilities of organizational learning and
sustainable innovation. These two capabilities are building sustainable business models that will
lead to future sustained competitive advantage.
An Article on Corporate Social Responsibility In India:
Putting Social-Economic Development on a Fast Track by Ramya Ashish mentioned that

many CSR initiatives are executed by corporate in partnership with Non-governmental
organizations (NGOs) who are well versed in working with the local communities and are expertsin
tackling specific social problems. For example, SAP India in partnership with Hope Foundation,an
NGO that works for the betterment of the poor and the needy throughout India, has been working
on short and long-term rebuilding initiatives for the tsunami victims. Together,they also started The
SAP Labs Center of HOPE in Bangalore, a home for street children, where they provide food,
clothing, shelter, medical care and education. CSR has come a long way in India. From responsive
activities to sustainable initiatives, corporate have clearly exhibited their ability to make a
significant difference in the society and improve the overall quality of life. In thecurrent social
situation in India, it is difficult for one single entity to bring about change, as the scale is enormous.
Corporate have the expertise, strategic thinking, manpower and money to facilitate extensive social
change. Effective partnerships between corporate, NGOs and thegovernment will place India’s
social development on a faster track.
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CHAPTER 4:
RESEARCH METHODOLOGY
4.1. METHODOLOGY ADOPTED
The study has been carried out as a desk research with a theoretical approach.
The theoretical framework will mostly be based on books, while news articles,
Chronicles, research papers, and company reports will cover the analysis. This choice
Of method has been chosen with reference to the opportunities regarding the choice of
a contemporary subject.
4.2. DATA SOURCES:
The data sourced is secondary in nature and the knowledge is obtained only through various
articles available on various magazines and websites. There is no scope to collect primary data in
as the topic is theoretical in nature and does not include any kind of questionnaire to be filled.
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CHAPTER 5
CORPORATE SOCIAL RESPONSIBILITY IN AMUL
INTRODUCTION OF AMUL
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. The word
AMUL is derived from the Sanskrit word Amulya, meaning rare, valuable. The co-operativewas
initially referred to as Anand Milk Federation Union limited hence the name AMUL.
Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3 million milk producers
in Gujarat. Amul spurred India's White Revolution, which made the country the world's largest
producer of milk and milk products. In the process Amul became the largest food brand in India
and has ventured into markets overseas.
Dr.Varghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is
credited with the success of Amul.
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HISTORY
Amul the co-operative registered on 1 December 1946 as a response to the exploitation of

marginal milk producers by traders or agents of the only existing dairy, the Polson dairy, in the
small city distances to deliver milk, which often went sour in summer, to Polson. The prices of
milk were arbitrarily determined. Moreover, the government had given monopoly rights to
Polson to collect milk from mikka and supply it to Bombay city.
Angered by the unfair trade practices, the farmers of Kiara approached Sardar
Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised
them to form a cooperative and supply milk directly to the Bombay Milk Scheme instead of
Polson (who did the same but gave them low prices). He sent Morarji Desai to organize the
farmers. In 1946, the milk farmers of the area went on a strike which led to the setting up of the
cooperative to collect and process milk. Milk collection was decentralized, as most producers
were marginal farmers who could deliver, at most, 1–2 litres of milk per day. Cooperatives were
formed for each village, too.
The cooperative was further developed and managed by Dr.Verghese Kurien with H.M.
Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk (for the first time in
the world) and a little later, with Kurien's help, making it on a commercial scale, led to the first
modern dairy of the cooperative at Anand, which would compete against established players in
the market. Kurien's brother-in-law K.M. Philip sensitized Kurien to the needs of attending to the
finer points of marketing, including the creation and popularization of a brand. This led to the
search for an attractive brand name. In a brainstorming session, a chemist who worked in the
dairy laboratory suggested Amul, which came from the Sanskrit word "amulya", which means
"priceless" and "denoted and symbolised the pride of swadeshi production."
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread
to Anand's neighbourhood in Gujarat. Within a short span, five unions in other districts –
Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set up.To combine forces and
expand the market while saving on advertising and avoid competing against each other, the
GCMMF, an apex
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marketing body of these district cooperatives, was set up in 1973. The Kaira Union, which had
the brand name Amul with it since 1955, transferred it to GCMMF.
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.
Adding to the success, Dr. Madan Mohan Kashyap (faculty Agricultural and Engineering
Department, Punjab Agricultural University Ludhiana), Dr. Bondurant (visiting faculty) and Dr
Feryll (former student of Dr Verghese Kurien), visited the Amul factory in Gujarat as a research
team headed by Dr. Bheemsen. Shivdayal Pathak (ex-director of the Sardar Patel Renewable
Energy Research Institute) in the 1960s. A milk pasteurization system at the Research Centre of
Punjab Agricultural University (PAU) Ludhiana was then formed under the guidance of
Kashyap.
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THE AMUL BRAND
GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50
sales offices spread all over the country, more than 5 000 wholesale dealers and morethan 700
000 retailers. Amul became the world's largest vegetarian cheese and the largest pouched-milk
brand. AMUL is also the largest exporter of dairy products in the country. AMUL is
availabletoday in over 40 countries of the world. AMUL is exporting a wide variety of products
which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified
Butter(Ghee) and Indigenous Sweets. The major markets are USA, West Indies, and countries in
Africa,the Gulf Region, and SAARC neighbours, Singapore, The Philippines, Thailand, Japan
and China,and others such as Mauritius, Australia, Hong Kong and a few South African
countries. Its bid toenter the Japanese market in 1994 did not succeed, but it plans to venture
again. In September 2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.
In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The
Brand Trust Report, published by Trust Research Advisory. rediff.com; "India's top 20 brands:
Amul is No. 1"
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PRODUCTS
Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti Dahi, Yoghurt,
Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, flavoured milk,
basundi, Amul Pro brand and others. Amul PRO is a recently launched brown beverage justlike
bournvita and horlicks offering whey protein, DHA and essential nutrients to kids along withits
chocolatty taste. In January 2006, Amul launched India's first sports drink Stamina, which
competes with Coca Cola's Powerade and PepsiCo's Gatorade. Amul also offers mithaimate
which successfully competes with milkmaid by nestle by offering more fat % at lower price. In
August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product offering
in the milk products segment.
Other Amul brands are Amul Kool, a low calorie thirst quenching drink; Masti Butter Milk;Kool
Cafe, ready to drink coffee and India's first sports drink Stamina. Amul's Ice-creams are
madefrom milk fat and thus are ice-creams in real sense of the word, while many brands in India
sell frozen desserts made from vegetable fat. Amul cares for its consumers and tries to offer them
thebest products at best price. Amul's sugar-free Pro-Biotic Ice-cream won The International
Dairy Federation Marketing Award for 2007
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CORPORATE SOCIAL RESPONSIBILITY HELD BY AMUL
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Corporate social responsibility (CSR) has been defined as the ―commitment of business to
contribute to sustainable economic development working with employees, their families, the
local community, and society at large to improve their quality of life, in ways that are both good
for business and good for development.
To meet with the CSR it is expected that a business in its entire procurement-production-
processing-marketing chain should focus on human development involving the producer, the
worker, the supplier, the consumer, the civil society, and the environment. Indeed, a very tough
task. Most businesses would certainly flounder in not being able to achieve at least one or many
of those expectations. But AMUL has shown the way.
5.1. CSR-SENSITIVE ORGANISATIONAL STRUCTURE
AMUL is a three tier co-operative organization. The first tier is the co-operative society at the
village, of which; milk producers are voluntary members, managing the co-operativethrough a
democratically elected 9-member managing committee, and doing business by purchasing milk
from members and selling it to the district level co-operative. There are more than11,000 co-
operatives in villages of Gujarat. The second tier is the district co-operative that processes milk
into milk products, markets locally and sells surplus to the state co-operative for national and
international marketing. There are 12 district co-operatives each being managed by a15-member
board elected by the college comprising the nominated representatives or chairmen ofthe village
co-operatives. Third tier is the state level co-operative - the Gujarat Co-operative MilkMarketing
Federation (GCMMF) responsible for national and international marketing of milk and milk
products produced and sold to it. The GCMMF is managed by the boar democratically electedby
and from amongst the chairmen of the district co-operatives. The entire three-tier structure
withthe GCMMF at its apex, is a unique institution because it encompasses the entire chain from
production of raw material to reaching the consumer with the end product. Every function
involves human intervention: 23.60 lakh primary milk producers; 35,000 rural workmen in more
than 11,400 village societies; 12,000 workers in 15 dairy plants; 750 marketing professionals;
10,500 salesmen in distribution network and 600,000 salesmen in retail network. Accumulation
of human capital is sine qua non for the development and growth of any enterprise or economy.
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The GCMMF
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is sensitive towards CSR. It believes that technology and capital are replicable inputs but not the
human capital. Since men are the basis for achieving the CSR, the GCMMF lays emphasis on
their development into competent, courteous, credible, reliable, responsive communicators and
performers.
5.2.CSR-SENSITIVE BUSINESS PHILOSOPHY
The first step towards discharging the CSR is the business philosophy of the GCMMF. It
is two-fold: one, to serve the interests of milk producers and second, to provide quality products
to consumers as value for money. Evolution of an organizational system has ensured that the
corporate social responsibility towards the primary milk producers, village and the ecological
balance is fulfilled. The milk producers are paid for their milk in accordance with market forces
and realization of value for their produce. Invariably the price paid to the member-producers in
Gujarat is higher by 15 per cent than the national average.
5.3. CSR-ORIENTATION TO DISTRIBUTORS & RETAILERS
The GCMMF has identified the distributors and retailers are its important link in its
vendor supply chain. Through surveys the GCMMF found that 90% of the distributors do not get
any opportunity of exposure to latest management practices. The GCMMF realized that it was a
corporate social responsibility to strengthen the core business processes of its distributors so as to
keep them in mainstream business and compete with those with formal training in management.
The GCMMF has developed and trained all its distributors through Value-Mission-Strategy
Workshops, competence building, Amul Yatra, Amul Quality Circle meetings, computerization,
and electronic commerce activities. Competency Building Module of the GCMMF is meant to
infuse professional selling skills by making the distributors and their salesmen aware of latest
sales management tools and techniques; enhance their knowledge of products; positioning and
segmentation strategies for various products. Under Amul Yatra the distributors and their
salesmen are taken on a visit to Anand. During this visit they are shown dairy plants, their
upkeep, international standards of hygiene and quality; the practices adopted for clean milk
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production,
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and above all the cooperative philosophy. Through one to one talk with the farmers, the distributors
and salesmen realize AMUL is a large business of small farmers.
5.4. EARNINGS OF GCMMF
Nurturing its primary members - the milk producers - is the first mission of the GCMMF.
Discharge of this responsibility is reflected in the manner in which the GCMMF conducts its
business and shares its earnings. The milk from the village co-operatives is purchased at an
interim price. So as to maximize the earnings of the milk producers the GCMMF changes the
product profile during the fiscal and directs its sales and marketing activities towards those
products that would bring in maximum returns. True! Every business organization follows the
same principle. But the GCMMF follows it with the central interest of the producers. During the
fiscal, as the GCMMF finds that from its earnings it is possible to pay more to the producers for
milk, the final price is declared higher than the interim price being paid. Before the GCMMF
closes its financial accounts the co-operatives are paid ‘price difference‘, the amount between the
interim price and the final price. Thus profit of the GCMMF is very low. The net profit (PADT) of
the GCMMF during 2017- 18 was Rs.2490.68 core against a turnover of Rs 29,085 core, a
meagre 0.25%. Further out of, Rs 671 core was given as share dividend to the co-operatives. To
fulfill its corporate social responsibility towards its milk producers and co-operatives the
GCMMF works on razor thin profits and retention of funds.
5.5.CSR-ORIENTED TO STAFF
The GCMMF hires and trains people to take advantage over its competitors. It has
developed in-house modules for training and competence building to improve and upgrade of
their knowledge; communication skills to understand the customer, be responsive to customer
requirements, and communicate clearly for trouble shooting of problems. They are expected to
be courteous, friendly, respectful, and considerate to the customer. To improve the credibility
and trustworthiness of the managers it is important they perform consistently and accurately
every time and at all times. The structure of salary and perquisites is altogether different.
The first and
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foremost the staff must get satisfaction from the job they. They are recognized for their
contribution (Climate Survey) CSR-AMUL WAY.
5.6.TRIBHUVANDAS FOUNDATION
Tribhuvandas Foundation is an Integrated Rural Health & Development Programme of

Amul. Inspired by the great success of round the clock health care services to the livestock of
dairy farmers of Kaira, Shri Tribhuvandas Patel, the Founder Chairman of Amul felt the need of
such a service to the rural populace too as he could learn and experience the afflictions brought
to them by absence of medical services in rural villages of Kaira. He donated the prize money of
his Ramon Magsaysay Award and the fund he received from kaira farmers on his retirement, for
his life time service to them, to set up this Foundation. Dr V. Kurien also played an active role in
this set up. It was registered as a Charitable Trust under the Public Trust Act 1950, on July 1975.
The Foundation derives its uniqueness from the fact that it is a need-based programme for
villagers and is run by the villagers themselves. It fulfills the basic health care needs of the
villages. Apart from providing primary treatment for various common ailments, the Foundation
is also actively involved in promoting preventive health practices. It is headquartered at Anand
with sub- centers spread over the district Anand and Kheda. The Foundation has a dedicated
Team of Medical Officers, Nurses, Administrative staff, Dais (Traditional Birth Attendants) and
Village Health
Workers to provide the following services:

Treatment of common ailments; Immunization through vaccination – BCG, Triple
Vaccine, Polio, Measles, Tetanus, Anti rabies at subsidised rate; Treatment of tuberculosis and
anaemia ; Antenatal, postnatal care, neonatal and infant care ; Nutritional rehabilitation centers
for undernourished children and vulnerable mothers; Identification of suspected cases of cancer
and referrals ; Education and counseling on reversible and permanent methods of family
planning, health education sessions and referral of critical cases to secondary and tertiary care
centers; Building partnership with government for family planning programmes in rural areas;
Distribution of contraceptive tablets and condoms through regular camps; Laparoscopic TL and
minilap operations, insertion of Copper-T (IUD), and Tubectomy; Cancer awareness programme,
3
detection
3
camp and treatment at Shri Krishna Hospital, Karamsad; Balwadis (Day Care Centres) for pre-
school play and learning activities for children of three to five years.
It also provides continuous training and retraining to Village Health Workers who are chosen
from villages with the help of the Dairy Co-operative Societies. This enables the Village Health
Workers to carry out health education and primary health care from door-to-door, in groups and
at the Dairy Co-operative Societies Centres with confidence. The training focuses on primary
health care, waterborne disease, know your body, pregnancy and the delivery period, new born
care and care of the weak child, growth monitoring, breast feeding, common disease of
childhood, malaria, tuberculosis. Training is also imparted on other topics as the need arises.
The Foundation has pioneered in large scale implementation of the concept of ‘Safe Delivery
Kit’ in India ensuring a hygienic and safe delivery of pregnant mother. The Foundation in
partnership with Government of Gujarat, has made ‘Safe Delivery Kits’ accessible to inhabitants
of remote rural interiors who had been unable to access such services from state or private
agencies. The Safe Delivery Kit is supplied to various health centers of the government of
Gujarat The success of the initiative has been manifested by drastic fall in neonatal tetanus, and
maternal, neonatal, and infant mortality.
In association with Ankara Eye Hospital, the Foundation has helped in performing 2000
surgeries free of cost for the vision impaired patients. The efforts on to organize camps for
detection and improvement of vision of the rural people. The Foundation has been identified by
Government of Gujarat providing training inputs to members of Village Health and Sanitation
Committees of Village Panchayats of all the villages of Umreth, Anklav and Anand talukas of
Anand District and Balasinor and Virpur talukas of Kheda District for a period of one year from
2009-2010.
Tribhuvandas Foundation has become one of Asia’s largest community healthcare service
providers covering more than 700 villages. The Foundation still strives to extend its services to
as much villages as possible.
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5.7.TREE PLANTATION
Green Gujarat Tree Plantation Campaign by Milk Producers of Dairy Cooperatives

Amul Coops plant more than 609.18 lakhs trees
Milk Producer members of Gujarat Dairy Cooperatives- better known as AMUL have been
celebrating the nation's Independence Day in a novel manner by planting lakhs of saplings across
Gujarat and have taken up an ambitious plan to save the environment by planting trees, making
India green and thereby reducing the effects of global warming. The milk producers of Gujarat
Dairy Cooperatives are conducting mass tree plantation drive every year on Independence Day
for last five years. In last five years (2007 to 2011) the milk producers have planted around
311.98 lakhs trees). The most striking feature of these entire programmes was that it has been
initiated by milk producer members of the dairy cooperatives. The unique fact about the
programme was that the milk producer members took up the oath to protect tree saplings till it
survives and grows into tree.
Over the years, due to intensive agriculture and dairying various natural resources are
getting consumed at faster pace in Gujarat state of India. The state level apex body of dairy
farmers in Gujarat gave a serious thought in this direction and discovered a novel idea for giving
back to nature. The idea was "one member one tree" plantation on our 60th Independence day -
15th August 2007.To put this idea in to the practice a design team constituting of representatives
of member unions were formed. The team accepted the idea by heart and immediately decided to
spread it among farmer members of village dairy cooperative societies. Then the idea was
communicated to farmer members and they all welcomed it and enthusiastically agreed to
implement the idea.
For smooth implementation of the idea, the design team chalked out the road map for
various activities. Execution teams were formed at district union level to give final shape and put
the plan in action. Village level coordinators were identified and they were trained to streamline
activity of tree plantation. Various awareness materials were prepared. Through various
communication media farmer members were made aware of benefits of tree plantation and tree
plantation activity schedule
4
The entire plantation activity was coordinated at all the three tiers of Anand pattern - at
village, district and state level dairy cooperatives. On 15th August, 2007, after the flag hoisting
ceremony, each member took an oath to plant saplings and ensure that they grew in to trees. Then
individually they planted sapling on their own at their identified locations like their farm, near
their home, on Farm bunds, etc. They have taken necessary care to ensure that this sapling
survives and they also reported regarding the survival to village level coordinator and district
milk unions after five months. In this way, 18.9 lakh trees were planted on 15th August 2007.
This was just the beginning. Henceforth, the Village Dairy Cooperative Societies of Gujarat as a
mark of respect for our nation decided to conduct such event on every Independence Day and
accepted 15th August (Independence Day) as a "Green Revolution Day by Afforestation to
Protect Mother Earth from Pollution, Climate change and Global Warming".
But all this required immaculate planning and execution. An action plan of tree plantation
programme was drawn up months back in advance. After the identification of the chief
coordinator for each district milk union, the organization of a task force for the programme was
put in place. Roles and responsibilities were assigned to each member and area of operation
allocated. After preparing the overall action plan, each union issued a circular to the Dairy
Cooperative Societies regarding the programme and arranged meetings with the societies
covered. At the village level, coordinators were identified in respect of the villages to be covered
and the number of saplings required. Along with logistical arrangements direct contact was
established with different agencies for receipt of saplings. Pointwise methodology for
implementation of tree plantation programme on such a mass scale is as following.
4
Point wise Methodology of execution of programme is as following:
1. Member Unions were informed about the programme and channels of procurement of
saplings, almost six month before to scheduled date of programme.
2. Continuous follow up were taken from the member unions about the status of activities
planned for the programme.
3. A meeting on tree plantation programme was held at GCMMF Ltd., Anand almost a month
ago in which status of action plan was each Member Union was discussed at length.
4. Milk Unions identified the coordinator for the programme and organized a task force for the
successful implementation of the programme. The coordinator at Milk Union level chalked out
overall action plan for the programme and assigned roles and responsibilities and area of
operation to each member of task force.
5. Milk Unions (MUs) issued circular to their respective VDCSs (Village Dairy Cooperative
Societies) mentioning the entire activity and procedure planned for the celebration of the
programme. In circular details for milk producer members to make necessary preparations like
deciding the place, digging the pit, taking care of saplings etc. well in advance were also
provided. The circular was placed on notice board of VDCSs.
6. MUs task force members contacted & communicated about the concept to VDCS and
identified the village level coordinator and assigned them roles and responsibilities.
7. MUs Coordinator properly explored and communicated the saplings acquiring sources/nursery
details to VDCSs. They also ensured that saplings reach the VDCSs before 3 days.
8. A press note was prepared by the coordinator of the programme at MU level and which were
given in the newspapers on a day before tree plantation to boost morale of producer members
and mentally prepare them for the execution of programme on next day.
9. At time of handing over the saplings to members from VDCS, the producer members took
oath to protect the saplings and accepted the responsibility for successfully growing the sapling
into tree.
10. On 15th August, after the milk collection process, at a predecided time sirens at VDCSs were
sounded or other means like beating Thali/utensil, loudspeaker etc. were used to facilitate the
gathering producer members in time at predecided place in the village for celebration of
Independence Day in VDCS premises, common plot, school etc. After flag hoisting ceremony,
the tree plantation activity was executed by the producer members.
4
11. In many villages the milk producer members planted the trees after performing the Puja
(worship) of saplings before planting them.
12. To add fervour and enthusiasm in the programme at many places the Chairman, Managing
Director and Board of Directors of Member Unions participated in the programme.
13. Next day after the programme on a post programme press note was prepared giving details of
the programme celebrations along with photographs. Similar such notes were published in house
magazines/ newsletters.
14. After the completion of the programme the MU's were asked to submit the report on tree
plantation activity.
15. MUs conducted survey after 5 months to find out the survival rate of sapling under the
programme.
First tree plantation programme (15th August, 2007) was carried out on "one member, One tree"
basis. Second tree plantation programme (15th August, 2008) in which around 52.74 lakhs tree
were planted was conducted on "one member three tree" basis.
In year 2009 and in year 2010, in mass tree plantation programme around 84.24 and 83.5
lakhs tree saplings were planted respectively. The programme was conducted on "One member,
five tree" basis. Further, this year 2011 around 72.6 lakhs trees were planted, the programme was
carried out as per the same process and procedures followed in last year. Hence, in last five
years, milk producers of GCMMF planted around 311.98 lakhs tree saplings in 21 districts of
Gujarat. By doing so, milk producers of Gujarat Dairy Cooperatives have shown their concern,
awareness and commitment for betterment of environment.Yearwise details of tree plantation
and survival of tree saplings planted is as under.
4
According to statistics of Forest Survey of India considering on an average 30-40 cm diameter of

these trees, 106 trees would provide one hectare of green tree cover. Considering 47%
survivability of planted trees (based on post plantation survey data, around 148.12 lakhs out of
311.98 lakhs tree planted survived during last five years), when they fully grow up, would
provide additional 1,39,735 ha. Of green cover which is additional 6.41 percent forest cover of
Gujarat State of India.
5.8.AMUL RELIEF TRUST
A devastating earthquake (Richter scale – 7.9) hit Gujarat on 26th January 2001. The
epicenter of the quake was located in Kutch district. It caused death of thousands of people, tens
of thousands were injured, hundreds of thousands were rendered homeless and damage of
billions of Rupees was done. GCMMF formed a specific organization named "Amul Relief
Trust" (ART) under the Chairmanship of Dr. V. Kurien in 2001 with a donation of Rs.50 Million
for reconstruction of the school buildings damaged in the 2001 earthquake in the Kutch area. The
Trust reconstructed 6 schools damaged by the above earthquake at a cost of Rs. 41.1 millions in
Kutch area. Four of these schools started re-functioning from the last two academic sessions and
the other two schools from the current session.
 A school reconstructed by Amul Relief Trust in the earthquake affected Ratadia Village
in Mundra Taluka of Gujarat.
 A school reconstructed by Amul Relief Trust in the earthquake affected Nana Asalia
Village in Mundra Taluka of Gujarat.
 A school reconstructed by Amul Relief Trust in the earthquake affected Devpar Village
in Mandvi Taluka of Gujarat.
 A school reconstructed by Amul Relief Trust in the earthquake affected Toda Village in
Mundra Taluka of Gujarat.
 A school reconstructed by Amul Relief Trust in the earthquake affected Moti Bhadai
Village in Mandvi Taluka of Gujarat.
 A school reconstructed by Amul Relief Trust in the earthquake affected Kathada Village
in Mandvi Taluka of Gujarat.
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5.9. SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY)
Amul in its continued endeavor to improve the socio-economic conditions of rural people
extended its expertise in implementation of the Swarnjayanti Gram Swarozgar Yojana (SGSY)
of The Government of India (Ministry of Rural Development) on their Special Project on
“Improving Socio-economic Conditions of BPL Families of Kheda District through Animal
Husbandry and Dairying” – DAIRYING AS A TOOL FOR POVERTY ALLEVIATION.
The Swarnjayanti Gram Swarozagar Yojana is a holistic self-employment programme for
the rural poor of India. The basic objective of the programme is to bring below poverty line
families above poverty line by providing them in generating assets to become self-employed.
The purchase of assets is facilitated through a mix of government subsidy and bank credit.
It is a holistic self-employment programme as it supports all facets of self-employment like
organizing them into Self Help Groups, helping them in selection of key activities, building their
capacities, providing them appropriate training and exposure, building infrastructure, introducing
them to new technology, and providing them marketing support. The programme is implemented
through District Rural Development Agencies (DRDAs) with active involvement of Panchayati
Raj Institutions, banks, line departments of the Government and development institutions.
Amul has covered under this programme more than 8,755 beneficiaries to whom milch
animals were distributed in the District of Kheda and stood as guarantor for the bank loans.
These beneficiaries were then given membership of dairy co-operatives in order to bring these
poor households into mainstream economy by transforming dairying into active income-
generation enterprises. As part of this programme 12,647 women and men were trained in dairy
husbandry in addition to construction of number of cattle sheds, development of green fodder
plots, distribution of chaff cutters and stainless steel cans.
To provide ground water availability, 56 bore wells were dug. More than 50 mobile
Artificial Insemination units are pressed in operation for these farmers to deliver services at the
doorstep. A Mobile Diagnostic Laboratory has also been put in operation to provide effective
health services along with round the clock service of veterinary doctors. This initiative has
considerably helped in improving the socio-economic conditions and quality of life of a large
number of BPL families
4
Amul in its continued endeavor to improve the socio-economic conditions of rural people
extended its expertise in implementation of the Swarnjayanti Gram Swarozgar Yojana (SGSY)
of The Government of India (Ministry of Rural Development) on their Special Project on
“Improving Socio-economic Conditions of BPL Families of Kheda District through Animal
Husbandry and Dairying” – DAIRYING AS A TOOL FOR POVERTY ALLEVIATION Amul
has covered under this programme more than 8,755 beneficiaries to whom milch animals were
distributed in the District of Kheda and stood as guarantor for the bank loans.
These beneficiaries were then given membership of dairy co-operatives in order to bring
these poor households into mainstream economy by transforming dairying into active income-
To provide ground water availability, 56 bore wells were dug. More than 50 mobile
Artificial Insemination units are pressed in operation for these farmers to deliver services at the
doorstep. A Mobile Diagnostic Laboratory has also been put in operation to provide effective
health services along with round the clock service of veterinary doctors. This initiative has
considerably helped in improving the socio-economic conditions and quality of life of a large
number of BPL families.
4
5.10. BLOOD DONATION
Amul in association with the Indian red cross society aim to inspire, encourage and
initiate humanitarian services to minimize, alleviate and prevent human suffering at all times to
contribute for “humanity to peace”. Towards this objective Amul initiated blood donation
campaign since 1987. Blood donation camps are organized regularly in rural areas through
village dairy cooperative societies. Similarly camps are organized in Amul dairy campus
wherein employees and their family members join in donating blood. In addition, Amul
organizes donation of blood on emergency. Amul has made a trend in donating blood to the
society.
Amul in association with the Indian Red Cross Society aim to inspire, encourage and initiate
humanitarian services to minimize, alleviate and prevent human suffering at all times to
contribute for “Humanity to Peace”. Towards this objective Amul initiated blood donation
campaign since 1987. Blood donation camps are organized regularly in rural areas through
Village Dairy Co- operative Societies. Similarly camps are organized in Amul Dairy Campus
wherein employees and their family members join in donating blood. In addition, Amul
4
organizes donation of blood on emergency. Amul has made a trend in donating blood to the
society
4
5.11. AMUL SCHOLAR

Amul Scholarships: To encourage outstanding children of farmers in pursuing higher studies
Amul introduced scholarship schemes in 1992. The children are given scholarships for pursing
Diploma, Graduation, Post- Graduation and Doctorate. Every year the outstanding children are
identified from the villages and scholarships are provided to fulfill their dream of achieving
academic excellence. This effort has motivated greatly children to excel in their studies and
spread education in rural areas. Amul Scholar Felicitation Programme: Annually Amul felicitate
outstanding children of employees who have secured highest marks in 10th, 12th standards and
Gold Medalist in graduation. Amul Scholars’ Felicitation Programme was initiated in 2004 and
has facilitated many outstanding students of Amul family. Amul Vidya Shree & Vidya Bhushan:
Amul’s vision is to see an educated, talented and strong youth in a developed India of the future
and thereby contribute towards nation building. We at Amul believe that the sound education of
its youth is the foundation of every state. Hence it is the most basic constituent for a developing
nation like ours. Towards this philosophy, Amul Vidyashree & Vidyabhushan Awards have been
instituted to recognize the brilliance of the students across India as well as the quality of
education & guidance imparted by the schools they study in.The inception of these awards dates
back to 2004-05
The Awards recognize the academic brilliance of Class 10th and 12th top merit rankers
across India and the quality of education and guidance imparted by the schools they study in and
thereby encourage the spirit of enlightenment among today’s youth. In the first year of the Award
Foundation, Amul honored 500 students in Gujarat and other parts of India. In the second year it
acknowledged further 2267 students across schools in India. Moving ahead (2006-07) Amul
instituted Amul Vidya Bhushan” awards to recognize the toppers of STD 12th examination also.
The pan India details on these Awards are available in the following links. It is India’s first of its
kind award that recognizes and rewards brilliant minds of India. By winning this award, not only
the student gets recognized, but it also help the schools to enhance their image as an academy
that imparts quality education, worth emulating by others
5
5.12. RURAL SANITATION CAMPS
Amul Dairy has launched a novel scheme for total rural sanitation and set a target for itself
whereby not a single milk producer will attend to nature’s call in the open. The Dairy with the
support of District Rural Development Agency (DRDA) will provide interest free loans to its
milk producers in Anand and Kheda districts to set up ‘pucca’ toilet blocks, which will not only
help women milk producers avoid embarrassment but will also ensure hygiene.
The mission is not just about bringing a cultural change by imbibing good habits among milk
producers but also targeted towards encouraging hygienic practices in the milk supply chain.
Amul has prepared a model low-cost toilet block that costs Rs.11, 500 per unit. While DRDA
will support this initiative through subsidy ranging between Rs.4500 and Rs.4600 for BPL/APL
families, Amul will provide its members an interest free loan worth Rs.4300 returnable in four
years’ time. A member can pay up this loan by getting Rs.100 per month deducted from his/her
bill. Amul Dairy has launched a novel scheme for total rural sanitation and set a target for itself
whereby not a single milk producer will attend to nature’s call in the open. The Dairy with the
support of District Rural Development Agency (DRDA) will provide interest free loans to its
milk producers in Anand and Kheda districts to set up ‘pucca’ toilet blocks, which will not only
help women milk producers avoid embarrassment but will also ensure hygiene.
‘In five years’ time, dairy wishes to achieve the target of providing 100 per cent toilet
facilities in all villages where Amul has a society. The mission is not just about bringing a
cultural change by imbibing good habits among milk producers but also targeted towards
encouraging hygienic practices in the milk supply chain. Amul has prepared a model low-cost
toilet block that costs Rs.11,500 per unit. While DRDA will support this initiative through
subsidy ranging between Rs.4500 and Rs.4600 for BPL/APL families, Amul will provide its
members an interest free loan worth Rs.4300 returnable in four years’ time. A member can pay
up this loan by getting Rs.100 per month deducted from his/her bill.
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CHAPTER 6
IMPACTS OF AMUL CSR ON SOCEITY
Tribhuvandas Foundation
The Foundation has achieved a drastic reduction in percentage of Low Birth Weight in
Anand and Kheda districts – birth of babies with below 2.5 kg just 11% at the end of year 2008-
09 while it is 25-30% and even up to 40% in parts of India and Gujarat. The Foundation is
recipient of First Prize for the Best Effort in Family Welfare in the Voluntary Sector from the
Ministry of Health & Family Welfare, Government of India in 1993. The achievement in
creating a popular demand for ‘Balwadi’ across the rural community led to the initiation and
operation of government-run ‘anganwadis’. The Foundation has created a strong platform for
organized training of rural women on appliqué/handicrafts and sale of their works to generate
additional income
Amul Relief Trust
Amul Relief Trust" (ART) under the Chairmanship of Dr. V. Kurian in 2001 with a donation
of Rs. 50 Millions for reconstruction of the school buildings damaged in the 2001 earthquake in
the Kutch area. at a cost of Rs.41.1 millions in Kutch area. Four of these schools started re-
functioning from the last two academic sessions and the other two schools from the current
session.
Swarnjayanti Gram Swarozgar Yojana (Sgsy)
Amul has covered under this programme more than 8,755 beneficiaries to whom milch
animals were distributed in the District of Kheda and stood as guarantor for the bank loans.
These beneficiaries were then given membership of dairy co-operatives in order to bring these
poor households into mainstream economy by transforming dairying into active income-
5
5
Amul Scholar
Award Foundation, Amul honored 500 students in Gujarat and other parts of India. In the
second year it acknowledged further 2267 students across schools in India. Moving ahead (2006-
07) Amul instituted Amul Vidya Bhushan” awards to recognize the toppers of STD 12th
examination also. The pan India details on these Awards are available in the following links. It is
India’s first of its kind award that recognizes and rewards brilliant minds of India. By winning
this award, not only the student gets recognized, but it also help the schools to enhance their
image as an academy that imparts quality education, worth emulating by others
Tree Plantation
Inspired by this movement, whole dairy cooperative farmers of Gujarat under Gujarat
Co-operative Milk Marketing Federation Limited (GCMMF) have so far planted 312 lakh
saplings.
According to statistics of Forest Survey of India considering on an average 30-40 cm

diameter of these trees, 106 trees would provide one hectare of green tree cover.
Considering 47% survivability of planted trees (based on post plantation survedata, around
148.12 lakhs out of 311.98 lakhs tree planted survived during the last five years), when
they fully grow up, would provide additional 1,39,735 ha. Of green cover which is
additional 6.41% forest cover of Gujarat State of India It may be recalled that Amul had a
humble beginning of two Village Dairy Cooperative Societies collecting 247 litres of milk
in 1946 which has now grown to over 14000 Village Dairy Cooperative Societies
collecting more than one core litres of milk per day. Similarly, the tree plantation drive
which had started with 18.9 lakh saplings in 2007 has now grown into a mass tree
plantation drive with plantation of one crores saplings in 2010 thereby leading the way for
greening Gujarat for posterity. (ANI)
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CHAPTER 7
CSR ACHIEVMENTS
This effort to provide green cover to the earth was also acknowledged when the state level
apex body of Gujarat Dairy Cooperatives - GCMMF received four successive prestigious
"SRISHTI's G-Cube Award"-2007, 2008, 2009 and 2010 for Good Green Governance in the
"Service Category".
Further, "Amul Green" movement has also been awarded by International Dairy Federation for
best environment initiative in the "sustainability category" during the 4th Global Dairy
Conference held at Salzburg Congress Center, Austria on 28th April, 2010.
5
It has been estimated that when one tree is cut, in monetary terms there is loss or Rs. 33
lakhs (Oxygen worth of Rs. 5.3 lakhs, Land Fertility of Rs. 6.4 lakhs, Rs. 10.5 lakh for reduction
of pollution of atmosphere and Rs. 5.3 lakh towards Flowers / Fruits and habitation to birds -
animals). But the benefits that accrue to mankind when a tree is planted cannot be measured in
money and is priceless.
The producer members of GCMMF have really set an example for all the cooperatives and other
institutions to turn India green in the era of Global warming and environmental crisis.
When 3 million dairy farmers of Gujarat have planted more than 311.98 lakh trees in just five
years and are planning to plant more trees every year, they are doing an invaluable - truly Amul -
service to the society.
In an era of global warming, Amul is contributing its share in making Gujarat lush green. In this
way, the milk producers of Gujarat are ushering in a silent revolution of greening Gujarat.
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CHAPTER 8
FUTURE OUTLOOK
Amul is launching innovative programmes like the “cow to consumer” to make the dairy sector
“contemporarily cool” and commercially viable for today’s youth who are moving to cities and
reluctant to join the milk industry, the dairy giant’s Managing Director Rupinder Singh Sodhi has
said. In 1970, per capita of milk consumption in India was 111 gm. and today it is 350 gm., it is
growing at the rate of 2 per cent per annum. The demand for milk by 2050 would touch 540
million litres and to meet India’s demand in the coming years there is a need to make the dairy
industry commercially viable for India’s youth, said Sodhi.
“By 2050, 50 per cent of India would be urbanized, which means that we would have more
mouths to feed and less hands to produce. In case of shortage of milk, we would become
dependent on milk from edible oil and pulses,” Sodhi told PTI.What is required is how to make
dairy “contemporarily cool” and “commercially viable” business for today’s youth who are
drifting to cities and reluctant to join the dairy industry, he said on the sidelines of the
International conference on South-South and Triangular Cooperation here. “We are trying
modernize dairy farming using milking machines instead of hand milking, we are also using bulk
milk coolers, modern sheds, modern watering system etc. The idea behind propagating a
commercial dairy farmis to attract today’s youth,” 57-year-old Sodhi said.
Listing, the programmes introduced by the company to modernize dairy farming, Sodhi said
the biggest innovation that Amul is bringing in India’s dairy industry is through ‘Cow to
Consumer’. Under the ‘Cow to Consumer’ programme, Amul creates a digital account for a
farmer. When a farmer goes to deposit milk at a collection center, the quality and quantity of
milk is assessed and updated on the card that comes with the account. Based on the quantity and
quality, money is transferred to the account of the farmer immediately which could be accessed
by him through a mobile app, he said.
5
“We have opened more than 26 lakh such digital accounts for farmers in the last few months and
40 to 45 per cent farmers have been covered under the scheme,” he said. One of the main reasons
for introducing such schemes was to make the dairy industry attractive for the tech-savvy youth,
he added.
Another programme aimed at attracting youth is dairy entrepreneurship scheme under which
youth can go for a farm size of 20-30 cows and buffaloes and it would be easily financed by the
banks with Amul marketing for it. “One would earn Rs 40,000 per month through commercial
dairy farming which in many cases is more than the amount you would earn in urban India,” he
said.
Calling India a country of small holder farmers, he said the youth of the country needs to
realize that animal husbandry is a very attractive business at this time when the land is shrinking
and population is increasing. “We need to be able to increase milk productivity on reduced
number of farms with the shrinking of land, then only we will be able to meet India’s increasing
demands and the country’s youth has an very important role to play in taking the dairy industry
of the country forward,” he added.
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CHAPTER 9
CONCLUSION
Corporate Social Responsibility (CSR) is about how companies manage the business
processes to produce an overall positive impact on society. Thus companies consider the interests
of society by taking responsibility for the impact of their activities on customers, suppliers,
employee’s shareholders, communities and other stakeholders, as well as the environment. This
is seen to extend beyond the statutory obligation to comply with legislation as organizations are
voluntarily taking further steps to improve the quality of life for employees and their families as
well as for the local community and society at large. If a company chooses to follow the way of
CSR, it will integrate ethical concerns in its activities and in its interaction with all the
stakeholders. This implies that the corporate units function in such a way that their CSR activities
in all likelihood actually reach out to the beneficiaries –the society in general. This is why prior
to corporate social responsibility lies the work of preparing the society for the same, which
should be the joint efforts of corporates, non-governmental organizations and definitely the
monitoring authority, that is the government. Such concerted efforts can expectedly produce the
desired results. The groundwork is essential, since an unresponsive, obstructive unwilling,
suspicious recipient, in this case the society, will actually deter all efforts directed towards
development and cause unnecessary delay and confusion.
AMUL is doing very well for society and its activities are benefiting the people, mostly,
farmers and women and trying to improve the quality life of people and also the environment.
Social welfare and community development is at the core of AMUL. CSR philosophy and this
continues to be a top priority. AMUL embraces responsibility for impact of its operations and
actions on all stakeholders including society and community at large. It revolves around our
deeply-held belief in the principle of symbiotic relationship with the local communities,
recognizing that business ultimately has a purpose - to serve human needs. Close and continuous
interaction with the people and communities in and around the manufacturing divisions has been
the key focus while striving to bring Amul. Amul Limited process the environment initiatives,
education programs, health care programs, rural development program, etc. at their own working
community for enhancing the quality life of the company’s employees and maximizing the
shareholders profit.
5
Leadership Programme by Indian Development
BIBLIOGRAPHY
 http://en.wikipedia.org/wiki/Corporate_social_responsibility
 https://www.google.co.in/search?q=csr+companies+act+2013
 http://en.wikipedia.org/wiki/Amul
 http://www.amuldairy.com/index.php/csr-initiatives
 www.amuldairy.com

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THREE MANDATORY PROJECT REPORTS ON

GENERAL MANAGEMENT, SPECIALIZATION & SOCIAL

“ORGANIZATIONAL CULTURE OF MNC VS INDIAN COMPANIES”

Submitted in partial fulfillment for the award of the degree of

Submitted by Ms. VAISHNAVI S. GAWANDE

Under The Guidance of PROF. RAJAN GUNABALAN

LALA LAJPATRAI INSTITUTE OF MANAGEMENT

GENERAL MANAGEMENT, SPECIALIZATION & SOCIAL

“ORGANIZATIONAL CULTURE OF MNC VS INDIAN COMPANIES”

Submitted in partial fulfillment for the award of the degree of

Submitted by Ms. VAISHNAVI S. GAWANDE

Under The Guidance of PROF. RAJAN GUNABALAN

LALA LAJPATRAI INSTITUTE OF MANAGEMENTMAHALAXMI,

Name: Vaishnavi Sanjay Gawande

Roll No. 2020040 Signature of the student

VAISHNAVI SANJAY GAWANDE

This is to certify that the “Organizational culture of MNC vs Indian Companies”,

DR. V. B. ANGADI PROF. RAJAN GUNABALAN

I also express my profound gratitude to Dr. V. B. Angadi, Director of Lala Lajpatrai

Chapter Description Page

V DATA ANALYSIS AND INTERPRETATION 30

Indian Companies and Global MNCs

A multinational corporation (MNC) is usually a large corporation incorporated in one country

contract manufacturing—permitting a local manufacturer in a foreign country to produce

The main characteristics of multinational companies are:

Types of Multinational Companies

The main types of MNCs are the following:

The Organization Structure of a Multinational Company

Organizational Culture in Indian Organizational Culture in Multi-

Indian companies have an average Big flashy infrastructure, so many things

Indian employees are given multiple In MNC employees are allowed

Different organisations have different culture. Where it is an Indian organisation or MNC

CULTURES IN SOME ORGANISATIONS

Motilal Oswal company culture is created by the self-motivated, committed professionals

Motilal Oswal Smart watch App

2. TATA Consultancy Services

3. Reliance Industries Limited

Factors of organization culture are Productivity, leadership,

Leadership- It refers to the process of influencing others to follow enthusiastically towards

Employee Participation- Participation of employees in decision making is understood as

WHY YOU SHOULD EMPLOYEE HAVE INVOLVEMENT IN DECISION

METHOD OF EMPLOYEE INVOLVEMENT IN DECISION MAKING

ADVANTAGES OF EMPLOYEE INVOLVEMENT

1. Employee Feel valued

2. Can make even better decisions

3. Feel more responsible

4. Will focus on problem

5. People are motivated

DISADVANTAGES OF EMPLOYEE INVOLVEMENT

2. Traditional authority of management

Another disadvantage of participative management is that most employees shall have a

management and the employee is still an essential purpose of such management,

REASONS FOR WIDE USE OF THIS METHOD:

SECONDARY SOURCE: - Secondary source of data is collected by someone other than

DATA ANALYSIS & INTERPRETATION

a. Sample size 40 respondents in MNC’S & 40 from Indian companies.

In your Organizational view culture through?

A conscientious attempt is made to consider everyone’s view before a decision

MNC'S Indian companies

Yes a lot of attemptNot at all

 In MNCs a lot of conscientious attempt is made to consider everyone’s view before a

Does your company have HR policies to cope up with employee’s grievance

0.00% Yoga/ meditation Motivation lecture Spiritual classes Employee counselling

 In MNCs employee counselling is done more. (I.e. 69.2%)