SUMMER/FINAL INTERNSHIP PROJECT REPORT ON

“THE STUDY ON MARKET POTENTIAL & CUSTOMER SATISFACTION OF

United Colors of Benetton”

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF

UNDER GRADUATE DIPLOMA IN FASHION MERCHANDISING & RETAIL MANAGEMENT

UNDER THE GUIDANCE OF UNDER THE SUPERVISION OF

Mr. RASHMI MAM Mr. Mukesh Vinayak

TSI (United Colors Of Benetton)

SUBMITTED BY

PURNENDRA SINGH

08/01DFMRM/37

2008-11

CENTRE FOR RETAIL MANAGEMENT

FOOTWEAR DESIGN & DEVELOPMENT INSTITITUTE

MINISTRY OF COMMERCE & INDUSTRIES GOVT. OF INDIA

FURSATGANJ, RAEBARELI -229302 UP

CERTIFICATE

This is to certify that the project work done on ”THE STUDY ON MARKET POTENTIAL & CUSTOMER SATISFACTION OF UCB” is a bonafide work carried out by Mr. PURNENDRA SINGH under my supervision and guidance. The project report is submitted towards the partial fulfillment of three year, full time Under Graduate Diploma in fashion merchandising & Retail Management (DFMRM).

This work has not been submitted anywhere else for any other Degree/ Diploma.

Name &sign (Company guide) Name &sign (Faculty guide)

Mukesh Vinayak Rashmi Mam

TSI

PURNENDRA SINGH

08/01/DFMRM/37

Date -12/07/2010

ACKNOWLEDGEMENT

“Interdependence is a higher value than independence”

Some Says “Managers are born and some says managers are made”. I was also in

some dilemma before commencing my Summer Internship Project. But after the

successful completion of my summer internship project, I came to know that

managers are made if they are guided properly and are motivated to work willingly

towards fulfillment of specific goal.

It is with a sage sense of gratitude, I acknowledge the efforts of whole hosts of

well wishers who have in some way or other contributed in their own special ways to

the success and completion of this summer internship project.

First of all, I express my sage sense of gratitude and indebtedness to my H.O.D

Retail Department, Mr. S.P.Panday of “FOOTWEAR DESIGN AND DEVELOPMENT

INSTITUTE”, FURSATGANJ, from the bottom of my heart, for his unprecedented

support and faith that I do the best and his valuable recommendation and for

accepting this project.

I sincerely express my thanks to our Retail operation lecturer Mr. Bhaskar

Banarjee for his valuable guidance and intellectual suggestions during this project.

Also, I also express my sincere thankfulness to my mentor Ms. Rashmi for their

kind advice, suggestions and constant help in a lot of various ways during project

course.

Further I express my sage sense of gratitude to Mr. Mukesh Vinayak, Regional

Manager (UCB of HG retail Solution Pvt. Ltd.), Mr. Puneet who were kind enough to

give an opportunity to work under their immense expertise. I sincerely thank to both

of them for their valuable suggestions, motivation and encouragement. I express my

thanks to the UCB Supporting Team, for their support and encouragement in

bringing out this project report.

I would be failing in my duty if I don’t express my profound gratitude to the

entire respondent who has spent their valuable time to answer the questionnaire.

Last but not the least; I would also like to expand my thanks to all faculty

members of FDDI, Fursatganj, who have helped a lot during the course of my project.

Finally, I sincerely express my thanks to all my friends and the Staff members of

FDDI, Fursatganj for their support.

Purnendra Singh

(Roll No.: - 08/01/DFMRM/37)

DECLARATION

I, PURNENDRA SINGH OF FOOTWEAR DESIGN & DEVELOPMENT INSTITUTE, Raebareli hereby declare that this project report entitled “The Study on Market Potential & Customer Satisfaction of UCB” at PACIFIC MALL” for UCB , Ghaziabad is a bonafide record of work done by me during the course of summer internship project work of DFMRM program and all contents and facts are prepared and presented by me without any bias.

I also declare that it has not previously formed the basis for the award to me for any degree/diploma associate ship, fellowship or other similar title, of any Institute/Society.

PREFACE

I want to express my gratitude for the experience and practical knowledge that I gained during the summer internship project at UCB Store. It was my first experience when I went to the Store not to buy anything but to do the survey and to Study of Market Potential and Customer Satisfaction of UCB at Pacific Mall with reference to UCB retail India Ltd. The basic need of this survey is to interact with customers. On first day I was nervous, but because of the good image of the UCB in the market the people reacted positively.

For accomplishment of the project report I think about the conditions and views and then I used to compose the whole thing on computer. In making the project report theoretical knowledge was needed more than the practical which was given to us by my professors in my institutes. In the market the experience relating to the practical knowledge was very good which realized me about the real conditions of the retailing.

The project flows logically consisting of market research, data collection method and questionnaire. It hoped that the findings and the suggestions will help the company, confidently to formulate its strategy in comparison to its competitors. I have enjoyed my summer internship at UCB and have learnt lots of new things, which will be helpful to me during my work in any organization. I thank Adidas for giving this opportunity at their store and being good to me all the time.

I am please to work in this esteemed organization. I have tried my best to make this report a reader friendly & also did my level best to fulfill the objective of the summer training.

Lastly I am giving thanks to FOOTWEAR DESIGN & DEVELOPMENT INSTITUTE family who gave me their precious time to make project successful.

Place: PURNENDRA SINGH

Date:

TABLE OF CONTENTS

SrNo Particulars PageNo

1 Introduction 6

2.1 Introduction to Adidas 7

2.2 Aims and establishment of the company 8

2.3 Types of product/ services offer 9

2.4 Objective of the study

2 Methodology 11

3.1 Research Design 12

3.2 Sampling Design 13

3.3 Data Collection 14

3 Analysis And Recommendation 15

4.1 Data Findings and Analysis 16

4.2 Recommendation 18

4.3 Limitation of study

4.4 Overall experience

4 Annexure 20

5.1 Bibliography 28

Retailing – Customer is King

“A Customer is the most important visitor on our premises. He is not dependent

on us. We are dependent on him. He is not an interruption on our work. He is the

purpose of it. He is not an outside of our business. He is a part of it and we are

not doing him a favor by servicing him. He is doing us a favor by giving us an

opportunity to do so.”

Mahatma Gandhi

Some Published issue of Retail Industry

The retail industry is expected to grow into a USD 427 billion industry by 2010- FICCI.

India’s retail industry, which is in the middle of rapid growth, has already

scripted success stories fit to be the subject of a Bollywood film-Business Standard.

The impact of organized retailers that have seen swarming of malls lately, on the “mom-n-pop

stores” in 20 Indian cities- Indian Council of Research in International Economic Relations

(ICRIER).

Modern Retailing Comprehensive policy vital- The Hindu

Retail boom triggers ancillary industry growth- The Times of India

The Indian Macro Economy

Tops AT Kearney list of emerging markets for global Retailers to enter.

2nd Fastest growing economy in the World and 50% of the total GDP led by services such as IT, telecommunications, healthcare and retailing.GDP growth rate for the year 2007-08 ended at 9.4% (in 1st quarter) and current GDP (6 %) is better than China and other developed country.Reserves crossed the $150 billion mark, showcasing India as one of the top ten holders of Foreign exchange reserves.Population – 1000+ Million – 50 Million Rich and 300 Million Middle class65% of population below 35 years and 54% below age 25 yearsWorking population in India is growing like most other developed countries.China has issues of median age 30-34 years at the early stage of development and psychology issues after implementation of “one child policy”Housing Boom – due to nuclear family, low interest rates, tax benefits from government and lastly strong Indian values driven by savings and “owning home”Economy - 4h largest economy in the world on PPP basis (next only to USA, China and Japan) -One of the fastest growing economy with 6.5% average growth in GDP for last 10 years and is expected to rank 3rd by 2010, just behind the US and ChinaFragmented retailing with 5 million retailers and 95% less than 500 sq ft – nation of shop-keepers -brilliant trading and entrepreneur community Over 3.9 million tourists visited India this year, up from 3.0 million last year.India is on the track to be the servicing capital of the world (As China is manufacturing capital) and Organized retail growing at 25-30%+ p.a. compound growth.IPL has again drastically changed the outlook of the whole world towards India. It has the highest paid players across the Globe / Sports.Real Estate & Retailers in India are the most aggressive in Asia in expanding their businesses, thus creating a huge demand for real estate. Their preferred means of expansion is to increase the number of outlets in a city and also expand to other regions.Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expanding at a rapid pace.Besides the 6 metros, India has 61 other cities with populations greater than 0.5 million and contributes about 14% to the country’s GDP.

India Vs World

Indian retail is fragmented with over 12 million outlets operating in the country which

is 13 times more the all retail outlets operating in USA (0.9 million outlets).

India has the highest number of outlets per capita in the world - widely spread retail

network but with the lowest per capita retail space (@ 2 sq. ft. per person)

Annual turnover of Wal-Mart (Sales in 2001 were $219 billion) is higher than the size

of Indian retail industry. Almost 100 times more than the turnover of HLL (India's

largest FMCG Company).

Wal-Mart - over 4,800 stores (over 47 million square meters) where as none of India's

large format store (Spencer’s, Big Bazaar, Shoppers' Stop, Westside, Lifestyle) can

compare.

The Wal-Mart sales per hour of $22 million are incomparable to any retailer in the

world. Numbers of employees in Wal-Mart are about 1.3 million where as the entire

Indian retail industry employs about three million people.

One-day sales record at Wal-Mart (11/23/01) $1.25 billion - roughly two third of

HLL's annual turnover.

Developed economies like the U.S. employ between 10 and 11 percent of their

workforce in retailing (against 7 percent employed in India today).

60% of retailers in India feel that the multiple format approach will be successful here

whereas in US 34 of the fastest-growing 50 retailers have just one format

Inventory turns ratio: measures efficiency of operations. The U.S. retail sector has an

average inventory turns ratio of about 18. Many Indian retailers have inventory turns

levels between 4 and 10 - KPMG surveyed.

Global best-practice retailers can achieve more than 95 percent availability of all

SKUs on the retail shelves (translating into a stock-out level of less than 5 %).The

stock-out levels among Indian retailers surveyed ranged from 5 to 15 percent.

1. Executive Summary

Executive Summary

Retailing is emerging as a sunrise industry in India and is presently largest employer after agriculture.

Some economists say that Retailing is one of the pillars of the economy in India, and some say it is

gold mine of Indian economy. Retailing in its present form started in the latter half of 20 th century in

USA and Europe. Retail industry is divided into organized and unorganized sectors. Over 12 million

outlets operate in the country and only 5% of them being larger than 500 sq ft (46 m²) in size.

Organized retailing in India is projected to grow at the rate of 25-30% p.a., is estimated to grow from

the US $ 330 billion in 2007 to US $ 427 billion by 2010 and US $ 637 billion by 2015. Indian Retail

Sector is growing very fast with so many new players are coming in this growing organized sector

and trying to attract customers by giving attractive offers and offering competitive prices etc.

Adidas Retail India Ltd is India’s leading retailer that operates in multiple formats. We have offices in more than 55 countries and 50 nationalities represented amongst our staff at the Group’s Headquarters in Herzogenaurach, Germany. We have more than 150 subsidiaries and source products from a multi-tiered external supply chain in more than 60 countries.

The motive of the study is to know the market potential at Anand Vihar, Ghaziabad with reference to EBO & find out the customer’s perception about EBO & what are the customers’ expectations from UCB. The main purpose of the study is to find out the target customers, preferences of the customers and sales potential with reference to Adidas.

The study is done with the help of primary data given by respondents during survey and secondary data to know the market potential and customer Satisfaction of UCB at Pacific Mall, Anand Vihar with reference to UCB, and also to understand the current market position of Adidas at that area and know the potential customers. This study is done with the help of area mapping and catchment analysis technique. Primary data is collected through personal interview using structured questionnaire and secondary data is collected from management of the HG retail India Ltd, various book, journals and UCB website.

Anand Vihar is a developed area of Ghaziabad and it consists of all classes of families. Most of the families belong to Socio Economy Class (SEC) A & B. Most of the residents fall in to age group 18-45. Most of the families have 4 to 5 members in their families. Residents are well educated and holding jobs. Their monthly incomes are ranging from 10,000-20,000 and above. Approximately 86.5% people visit Supermarket for shopping and 50.75% people visit to UCB. From the above data it can be observed that there is not potential for good market opportunities for EBO.

The reason for visiting EBO as mentioned by the respondents varied from better services to pricing to variety of products available with the EBO. 44.75% respondents visit super

markets for the lesser prices offered by the super markets and 46.75% mentioned that the quality of product provided by the EBO is the reason for their visit to EBO.

The other factors which attract the respondents to various EBO’S are variety of products offered, new products like new stylish shoes and Apparels, availability of Accessories, exchanging policies, accepting debit/ credit cards, fast billing, booking counters, customer service, courteous and friendly behavior and ambience.

Most of the customers complained regarding customer service, variety of product with deep assortment, store image, arrangement of products, pricing, product knowledge of employee, quality of products, product updation, opening time at Pacific Mall with reference to UCB.

Company can enhance its business or increase its sales by doing these things; provide better customer service than its competitors, increase the variety of merchandise with deep assortment, arrangement of product should be in proper way that creates good store image, provide innovative product like as Accessories , shoes etc to the customers. Company should also include apparels segment in the store, should advertise through pamphlets about various offers, provide extra space for merchandise and employ knowledgeable sales staff.

This study helped me a lot for analyzing the market, understanding retail business and how to respond in critical situations. Findings and suggestions/recommendation of this report might be helpful for the company to improve its performance and business.

2. Introduction to retailing

Introduction

The word retail has its origin in French word retaillier and means “to cut a piece off’’ or “to

break bulk”. The term Retailing is defined as “All activities involved in selling goods and

services directly to final consumers for their personal and non-business use”. In simple terms,

it implies a first-hand transaction with customer. Retailing involves a direct interface with the

customer and the coordination of business activities from end to end right, from the concept

or design stage of a product or offering, to its delivery and post delivery service to the

customer. The industry has contributed to the fastest changing and dynamic industries in the

world today.

Retailing, it is an emerging trend in the India and Hyderabad is not far behind which is also

witnessing the stupendous growth and opportunities presented by this sector. Many

institutions- Manufacturing, Wholesalers and retailers – do retailing, but most retailing is

done by Retailers. A business wholesales come from primarily from retailing. It is a proven

fact that in India the retail industry has become the 2nd largest employer after agriculture.

Indian retail sector is in boom period and many reasons are contributing to it.

The retail scenario in India is unique. Much of it is in the unorganized sector, with over 12

million retail outlets of various sizes and formats. Almost 95% of these retail outlets are less

than 500 sq. ft. In size, the per capita retail space in India being 2 sq. ft. compared to the US

figure of 16 sq. ft. Thus India’s per capita retailing space is the lowest in the world.

With more than 9 outlets per 1000 people, India has the largest number of outlets in the

world. Most of them are independent and contribute as much as 95% to the total retail sales.

Because of the increasing number of nuclear family, working women, greater work pressure

and increased commuting time, convenience has become a priority for the Indian consumers.

The growth and development of organized retailing in India is driven by two main factors –

lower price and benefits the consumers can’t resist. According to experts, economies of scale

drive down the cost of supply chain, allowing retailers to offers more benefits offered to the

customers. Globally, retailing is customer-centric with an emphasis on innovation in

products, process and services. In short, the customer is the king.

The Indian retail market is the 5th largest retail destination globally. It is estimated to grow

from the US $ 330 billion in 2007 to US $ 427 billion by 2010 and US $ 637 billion by 2015.

In Saharaganj, Adidas Performance came up as the organized retail outlet in the form of a

E.B.O in the year 2005, with its inception in Lucknow, shopping got an altogether new

meaning in Lucknow. Some of the striking features of Adidas – small store and different

formats having nice store image, along with soothing music and luring visual display of the

products with self-selection facility magnetizing customers to choose from a wide assortment

and variety of the products priced with entrancing fables offers.

The emergence of organized retailing has led to competition which has resulted to the

demographics & psychographic changes in the life of urban consumers. The life style and

purchasing power of the middle class & upper class segment have fuelled the growth of

organized retailing to intense competition among the big players.

Adidas Retail is facing big intense competition from organized retail outlets like Reebok,

Nike , Puma, Woodland , and from unorganized retailers like Footwear shops, Garment shops

etc. Competition in retail sector has become extremely keen. Many new players coming in the

retail market has increased the degree of competition by adopting 5 P’s (i.e. place, product,

price, promotion and people) for successful retailing. While some of the exiting retailers

survived, others failed to do so.

Retail Sector and its scope in India

Retail Sector and its scope in India

Structure of Indian Retail Sector

The retail industry continued in India in the form of Kirana stores till 1980. Soon, following the

modernization of the retail sector in India, many companies started pouring in the retail industry in

India like Bombay Dyeing, Grasim etc. From that time the retail sector in India can be widely split into

the organized and the unorganized sector.

Organized Retail Sector

After 50 years of unorganized retailing and fragmented Kirana stores, the Indian retail industry has

finally begun to move towards modernization, Systematization and consolidation. Today, modernization

is the catch phrase and the key to understanding retail in the next decade.

There has been a boom in retail trade in India owing to a gradual increase in the disposable incomes

of the middle class households, as a result of good performance of IT, Service and Infrastructure sectors.

More and more players are entering the retail business in India to introduce new formats like malls,

supermarkets, discount stores, department stores and even changing the traditional looks of bookstores,

chemist shops, and furnishing stores.

Organized retail formats prevalent globally

Malls

Supermarkets

Hypermarkets

Discount Stores

Department Stores

Specialty Stores

Internet Retailing

Convenience Stores

MBO

Unorganized Retail Sector

The unorganized retail sector basically includes the local Kirana stores, hand cart, the

vendors on the pavement (sidewalk) etc. This sector constitutes about 95% of the total retail trade. As

70% of the employment is generated in Agriculture sector, hence this form of retailing is widely seen in

those areas and of course to some parts of the urban. There is a lot of hue and cry in the sector for

opening of sector for direct investment from the foreign players, but government cannot neglect the

interests of small players. One of main reason of not opening this sector to FDI is it may shrink the

employment in the unorganized sector and expand that in the organized.

The Evolution of retail in India

Traditional Established Emerging

Formats Formats Formats

Itinerant Salesman Kirana shops Exclusive retail outlets

Haats Convenience/Department stores Hypermarket

Melas PDS Malls/Multiplexes

Kiosks Pan/Beedi shops Specialty Malls

Post Office Fast food outlets etc.

India's Largest retail Chains:

1. PDS (Public Distribution System): 463,000

2. Post offices: 160,000

3. KVIC (Khadi & Village industries): 7,000

4. CSD (Canteen Stores Department) Stores:3,400

(Source business world marketing White book 2005)

Current Scenario of Indian Retail Sector

The Indian retail market, which is the fifth largest retail destination globally, has been ranked the

2nd most attractive emerging market for investment after Vietnam in the retail sector by AT Kearney’s

seventh annual Global Retail Development Index (GDRI), in 2008. The share of retail trade in the

country’s gross domestic product (GDP) was between 8-10% in 2007. It is currently 12%, and is likely to

reach 22% by 2010.

A McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian consumer

market is likely to grow four times by 2025. Commercial real estate services company, CB Richard Ellis'

findings state that India's retail market is currently valued at US$ 511 billion

Indian retail on the fast-track

The Indian retail market is the fifth-largest retail destination globally. It is estimated to grow

from the US$ 330 billion in 2007 to US$ 427 billion by 2010 and further US$ 637 billion by

2015. Indian retail showed a growth rate of 49.73% with a turnover of US$ 25.44 billion in

2007-08 as against US$ 16.99 billion in 2006-2007.

Retail contributes to 10 per cent of India’s Gross Domestic Product and provides

employment to 8 per cent of India’s working population.

Higher disposable incomes, easy availability of credit and high exposure to media and brands

has considerably increased the average propensity to consume over the years.

GRDI

India ranked first for the third consecutive year on the Global Retail Development Index – 2007,

conducted by AT Kearney across 30 emerging economies. India is ranked as the most preferred retail

destination for international investors.

GCCI

India ranked first for the fifth time on the Global Consumer Confidence Index – June 2007,

conducted by The Nielsen Company. Indians were judged as the world’s most optimistic consumers,

with high financial confidence about their income for the next 12 months.

The contribution of retail sector to GDP has been manifested below:

Country Retail Sector's share in GDP (in %)

India 10

USA 20

China 8

Brazil 6

The analysts foresee bright future of the retail sector. A huge number of shopping malls, nearly 100,

have come up in the recent past, generating 20mn sq ft. retail space, extending more space of about

12mn sq ft to it. Nearly 60 malls are on the verge of completion and may be operational by the end

of current financial year. A forecasted number of nearly 200 malls, in a move to make additional

50mn sq ft of retail space, will be completed within the next two-years.

India retail industry is expanding itself most aggressively; as a result a great demand for real estate is

being created. Indian retailers preferred means of expansion is to expand to other regions and to

increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new

shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing

at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and

convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket

consists of non- branded items. The global retail giants like Wal-Mart, Spar International, Tesco, K-

Mart/SEARS, Carrefour, ZARA, FCUK, Carrefour Group and The Home Depot, NEXT, Mother Care,

lKEA, Trussardi, DKNY and many more have made plans to march in the Indian market.

Companies like Spencer’s, Shoppers Stop, Trent, Reliance, Lifestyle, Pantaloons Tanishq, Crossroads,

Vishal and More already have planned to invest over Rs 5,000cr. Trent is on the edge to take both its

brands 'Star India Bazaar' and 'Westside' to new cities, meanwhile Shoppers' Stop has recently

geared up for expansion of present ones and to add 11 new stores including two hypermarkets.

Pantaloon has planned to add eight 'Big Bazaar' malls within the next 6 to 8 months and also Spencer

has geared up for opening 15 hypermarkets in near future.

After partition, Reliance Industries Ltd (RIL) is substantially getting ready to enter in

field of retailing. RIL is poised to emerge as the single largest player in this sector. On the

other hand, Tosco’s, Wal-Marts or Safeway does ultimately enter in the country. So finally,

Shoppers' Stops, Westside, Pantaloons and West sides in coming years have will face stiff

competition.

Major Indian Retailers:-

RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s Super, Daily,

Express & Fresh

Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station,

Brand Factory, Depot, aLL, E-Zone etc.

The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark, and Titan

Industries with World of Titans showrooms, Tanishq outlets, Chroma.

K Raheja Corp Group Formats: Shoppers’ Stop, Crossword, Hyper City, Inorbit

Lifestyle International- Lifestyle, Home Centre, Max, Fun City and International Franchise

brand stores.

Pyramid Retail-Formats: Pyramid Megastore, True-Mart

Nilgiri’s-Formats: Nilgiri's’ supermarket chain

Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.

More-Formats: Supermarket chain and hypermarket chain

Vishal Retail Group-Formats: Vishal Mega Mart

BPCL-Formats: In & Out

Reliance Retail-Formats: Reliance Fresh

Reliance ADAG Retail-Format: Reliance World

German Metro Cash & Carry:- Wholesale

Shoprite Holdings-Formats: Shoprite Hypermarket

International Retailers:-

The world's largest retailer, Wal-Mart, has tied-up with Sunil Mittal's Bharti Enterprises

to enter Indian retail market.

Microsoft's first shop-in-shop pilot has been launched with the Tata Group subsidiary

Infiniti Retail's multi-brand consumer durables retail format, Croma.

The Walt Disney Company, consumer product retailing arm of global animation

giant, will soon add 135 new stores to its existing 15 stores.

World's leading coffee chain, Starbucks' enters India through a tie-up with the

country's leading multiplex operator PVR Limited.

Apple Inc has entered into an exclusive marketing and distribution deal with Reliance

Retail through "iStore by Reliance Digital".

Some of the international players that have already entered India include McDonald's,

Pizza Hut, Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton, Swarovski, Sony,

Sharp, Kodak, Medicine Shoppe among others.

Company Profile

Type Public (BIT: BEN)

Industry Fashion

Founded 1965

Headquarters Ponzano Veneto, Italy

Key people Luciano Benetton, ChairmanCarlo Benetton, Deputy ChairmanAlessandro Benetton, Executive Deputy ChairmanFranco Furnò and Biagio Chiarolanza, delegating operative management of the companyGiuliana Benetton, DirectorGilberto Benetton, Director

Products Clothing, Accessories and Footwear

Revenue 2,049 million euro (2009)

Employees 9,511 (2009)

Website benettongroup.com

Today, the Benetton Group is present in 120 countries around the world. Its core business is fashion apparel: a group with a strong Italian character whose style, quality and passion are clearly seen in its brands, the casualUnited Colors of Benetton, the glamour oriented Sisley, the leisurewear brand Playlife. The Group produces over 150 million garments every year. Its network of around 6,000 contemporary stores around the world, offers high quality customer services and generates a total turnover of over 2 billion euro.

In 1965, Luciano Benetton, the eldest of four children, was a 30-year-old salesman in Treviso. He saw a market for colourful clothes, and sold a younger brother's bicycle in order to buy his first second-hand knitting machine. His initial small collection of sweaters

received a positive response in local stores in the Veneto region, and soon after he asked his sister and two younger brothers, Gilberto and Carlo, to join him. In 1965, the entity known as the "Benetton Group" is formed.

In 1966, the Benettons opened their first store in Belluno and three years after in Paris, with Luciano as chairman, his brother Gilberto in charge of administration, their younger brother Carlo running production, and Giuliana as a chief designer.

History-

1960s- The idea of color

1965s- The Benetton group is established.

1970s- A business model making the difference: unique flexible & innovative.

1980s- Benetton communication campaigns: known all over the world.

1990s- A global company present in 120 countries.

2000- Benetton grows with the market: around 150 million garments old annually in 500 contemporary stores

UCB position in the market-

According to independent market research, UCB holds a market share of 34% and is thus the world’s leading Apparel brand. In Etely, UCB holds a market share in apparel of over 38%, in some core markets such as Itely and the Paris the figure is over 50%.

BENETTON GROUP.

Brands –

UCB-A global brand, and one of the most well known in the world, United Colors of Benetton has an international style that combines color, quality and fashion. Each season the womenswear, menswear, childrenswear and underwear collections offer a total look for everyday, for work and for leisure, in the city and outdoors. The Benetton Baby label is a new product line dedicated to the prenatal and the under-fivesworld.The brand is present in many other sectors, from the elegant accessories to the eyewear lines and perfumes, from the home collection to baby products. The above products are available in selected specialized shops worldwide.www.benetton.com

Undercolors of Benetton is an extension of the Benetton brand, featuring underwear, beachwear and sleepwear collections, as well as accessories for women, men and children. A wide selection of recurring basic colors is enriched every season with the latest trends. Undercolors is available in its own chain of stores which now has more than 500 locations in thirty countries and in selected Benetton Shops.www.benetton.com/undercolors

SisleyThis is the Group's most fashion forward brand. Sisley presents elegant and seductive collections, with special attention given to the choice of design, fabrics and new shapes. Its creative artists and independent sales teams concentrate their efforts on its image and on strong-impact advertising campaigns. The brand has created the very fashionable Sisley Young line for children from 8 to 12 years old.www.sisley.com

Playlife is more than a fashion brand, it’s a multi-brand that brings together different life-styles and multiple purchasing experiences: Playlife, the heritage brand that draws inspiration from the preppiness of the American campus; Anthology of cotton, the comfort of cotton jersey in a collection just for her; Jean’s West, the historic brand associated with denim and everything that looks good with it; Killer Loop, the urban wear rich in technical details.

www.playlife.com

Products Clothing Fragnanences Footwear Accessories Home furnishing Tiles Paint

Food retail

Brand Portfolio

PRODUCT MARKET CONTEXT ROLES-

Endorse /Sub brand Benefits brands Co- brands Driver roles

Brand portfolio structure-

brand Grouping brand hierarchy trees brand range

Portfolio Roles-

Strategic brands Linchpin brands Silver bullets Cash cow brands

Portfolio Graphics-

Logo Visual Presentation

Objective of the Study

Objectives of the study

To study Ghaziabad area demographic wise.

To study and measure satisfaction level of UCB apparels users.

To suggest alternatives for enhancing customer satisfaction.

To study about customer preferences and frequency of shopping.

To know the target customer’s of UCB franchisee stores at Ghaziabad.

To understand the customer’s expectation from retail service provider.

The main objective of the study are-

SWOT analysis of the product sold

Research Methodology and Scope of the Study

Research Methodology

The study is relied on primary as well as secondary data.

The primary data is collected through personal interviews using structured Questionnaire.

The Secondary is collected from management of the UCB India Retail Ltd, various books, journals

and Internet.

Sampling Methods:

Probability sampling method or simple random sampling

Universe: -

The research work was accomplished in Pacific Mall. So Pacific mall is my Universe.

Sample Size: -

Sample size was 50.

Research Instrument: -

For this study, for the collection of various data requirement, structured questionnaire is used. This

questionnaire contains qualitative and quantitative information of the customers. The questionnaire

contains of both open-ended and close ended questions, which would help to know the situation

prevailing in the market.

Statistical Tools Used

For the purpose of data analysis, Percentage Method is used for calculation and result was

interpreted.

No. of Respondents

Percentage = ---------------------------×100

Total Respondents

TYPES OF QUESTION INCLUDED

DICHOTOMOUS QUESTION

Which has only two answer “YES” or “NO” ?

MULTIPLE CHOICES QUESTIONWhere respondent is offered more than two choices.

IMPORTANCE SCALE

A scale that rates the importance of some attributes.

RATING SCALEA scale that rates some attribute from “highly satisfied ” to “highly unsatisfied “ and “very inefficient” to “Very efficient”

SAMPLING UNIT- Who is to be surveyed? The researcher must define the target population that will be sampled.

The sample Unit taken by me; General public of different age group, different gender and different profession.

EXTENT:- Where the servey should be carried out?I have focused entire UCB customer of Ghaziabad city for the servey

TIME-FRAME:- When t he survey should be conduct. I conducted my survey for 8weeks from 27 may to 18th-Jun.

SAMPLING FRAME:-

The source from which sample is drawn.

SAMPLING TECHNIQUE- How should the respondent be chosen?

In the Project sampling is done on basis of Probability sampling. Among the probability sampling design the sampling design chosen is stratified random sampling.Because in this survey I had stratified the sample in different age group, different gender and different profession.

SAMPLE SIZE-Consumers of shoes, 50 respondent

STEPS FOLLOWED IN COMPLETING THE STUDY- I visited marketing, consumer behavior , management books, journals are consulted.(ii) Internet sites containing information on UCB & marketing are browsed.(iii) Sample survey was conducted.(iv)Data was thoroughly checked for error.

DATA PROCESSING METHDOLOGY-

Once the primary data have been collected, they are (I) Edited – inspected, corrected andmodified.

(ii) Tabulation – bring similar data together and totaling them in meaningful categories.Questionnaires are edited both in the field and later in home. Field editing took place just often the interview. Generally editing is required for open type of questions. Brief notes or

symbols are frequently used during the interview to initially record the interviewer’s response since it was not desirable to interrupt the flow with lengthy note taking. Then immediately after the interview, brief notes are respondent. The responses are thoroughly checked in home for incorrect, inconsequential or contradictions categories are developed only often the replies has been reviewed. This review provided a feel for the pattern of answers and thus determine what categories best represent the answers.

The collected data are placed into an order. Percentages of respondents answered similarly are calculated and placed in a table. Then this is interpreted. This involved drawing conclusion from the gathered data. Interpretation changes the new information immerging from the analysis into information that is pertinent or relevant to the study.

CONCLUSION WAS DRAWN BASED ON THE SURVEY FINDINGS Finally recommendation was made to improve the sales strategy of UCB Apparels to increase the level customer satisfaction.

SAMPLE DESIGN-THE BASIS OF DESIGN - Consumers of UCB Apparels are chosen randomly, so that unbiased, representative sample may be obtained.

Scope of the Study

With the help of primary data given by the respondent during survey and secondary data, study is done to help the UCB to understand the market potential at Pacific Mall, Ghaziabad market, also to understand the customer Satisfaction and, potential customers and current market position of UCB at that mall.

Assumptions of the Study

The assumptions of the study are----

Questionnaires which were filled by both husband and wife and other members of family have been considered by me as filled by male (earner) only.

Those questionnaires which are more than 80% filled, I have taken them in to consideration as a full filled questionnaire.

Customers who visit occasionally to UCB in a month or with 15 days, I consider that once in a week.

LITERATURE REVIEW

The study of consumer behavior has evolved since the Information Processing Model (Bettman, 1979) assumed that the individual is logical in his/her buying process. This model was criticized because it failed to treat different consumption phenomena motivated by symbolic meanings (Holbrook and Hirschman, 1982). Individuals are not always looking for efficiency and economy, but also for distraction, aesthetic, expression, etc. (Boyd and Levy, 1963). Calling for a broadening of theoretical frameworks of consumer behavior, many authors pleaded in favor of the study of all consumption forms (Holbrook, 1986), being inspired by European semi logy and American semiotic (Levy, 1959, 1963, 1981; Hirschman, 1980; Kehret-Ward, Johnson and Louie, 1985; Mick, 1986; Holbrook, 1986; O’Shaughnessy and Holbrook, 1988; Nöth, 1988; Stern, 1988; Grafton-Small and Linstead, 1989). These are the study of signs, meanings and production of symbols. Fantasy, emotion and pleasant aspects of consumption were then tackled from an experiential point of view. The Experiential View is a phenomenological perspective that perceives consumption as a primary state of consciousness having a variety of symbolic meanings, responses and hedonist criteria (Holbrook and Hirschman, 1982; Olshavsky and Granbois, 1979). The basis of the traditional Information Processing Model is the optimization of the utility of a product under the basis of a utilitarian evaluation of its tangible characteristics. Nevertheless, it neglects emotional aspects. On the other hand, the Experiential View leaves out different factors such as economic conditions, expectations, some elements of the marketing mix (price, distribution), perceived risk and conflicts, but mostly the social influence of the consumers’ reference groups (Holbrook and Hirschman, 1982; Business Central Europe, 1994) which is the aim of the Symbolic Interactionism Perspective. Acquisition, possession and consumption are activities taking place in a process of impressions creation or identity management which is, according to Belk (1978), an interactive process concerning both the image of goods consumed and that of the individuals consuming them. The Symbolic

Interactionism Perspective deals with the relationship between consumers and the products they consume, and suggests that a significant proportion of consumption behaviors consist of social behaviors, and vice versa (Solomon, 1983). This leads us to consider the importance of socialization processes (family, reference groups) through which individuals learn the meanings of symbols and those of consumption. With the aforementioned meanings being negotiated and built through interactions with others, consumption is not only an individual activity, but also a social process of goods definition (Gallant and Kleinman, 1983). Since individuals are often motivated to acquire products according to what they mean to them and to members of their social reference groups (Leigh and Gabel, 1992), their behavior is subject to the pressures of cultural norms and the expectations of socialization institutions rules such as those coming from family and other reference groups (Faber, O’Guinn and McCarthy, 1987; Engel, Blackwell and Miniard, 1993). Thus, Symbolic Interactionism Perspective considers the human spirit as fundamentally social, and dependent on shared symbols. The symbols being generated at a global level (Geertz, 1973; Solomon, 1983; McCracken, 1986, 1988; Leigh and Gabel, 1992), the Symbolic Interactionism Perspective accepts as precept the fact that society and its culture precede every individual action, and that a cultural consensus results from interactions, communication, and negotiation between social actors (Charon, 1989).

The informational value of the country of origin was also found to vary according to the level of involvement of the consumer in purchasing the product and the presence of other cues such as brand name, guarantee and price (Ahmed and d’Astous, 1993). In a recently published meta-analysis of country-of-origin effects, Peterson and Jolibert (1995) conclude that the average effect size is lower (0.19) for purchase intention, higher (0.30) for quality/reliability perceptions and context dependent. More specifically, they found that the characteristics of the study (research design, type of respondents, study cues, sample size, stimulus context etc.) influence the relative effect of country-of-origin to a lesser degree for quality/reliability perceptions than for purchase intention. However, the type of respondents (students, consumers or businesspeople) had no influence on quality/reliability perceptions.

This is a tall order, one that some companies have been able to fill at least to some extent. For example, Amazon keeps track of customers’ purchases and suggests other books they might like. Dell builds computers from mass-made parts to customers' specifications. But Simonson argues some companies can take the concept too far, like the Custom Foot chain of shoe stores that took detailed measurements and specifications from each customer to design one-of-a-kind shoes. Simonson argues that Custom Foot didn't take into account that some customers were put off by the individualized attention and felt obligated to buy the shoes because the store went to so much trouble. They often didn't come back. Indeed, an Internet search produces no Website.

In view of this, the HKTDC conducted a survey study in four major mainland cities in February 2007. The study was composed of two interlocking surveys. The first survey (survey on shoppers) successfully interviewed a total of 1,000 shoppers of leather consumer goods in four major cities, namely Beijing (BJ), Chengdu (CD), Guangzhou (GZ) and Shanghai (SH). The second survey (survey on retailers) interviewed managers/officers-in-charge of major department stores in these four cities.

The survey study analyses leather consumer goods in terms of consumer behavior, the competitiveness of Hong Kong brands and the consumer segments with the greatest biggest spending power. The main survey findings are as follows:

CONSUMER BEHAVIOUR-Shopping locations, Department stores were the most preferred type of retailers, followed by outlets in shopping malls and chain stores. Product variety, guaranteed quality, brand choice, price, services and store environment were cited as the major reasons for visiting a Apparel goods store.

SHOPPING TIME-

Fourty-eight percent of respondents visited Apparel goods shops at least once a month.

Shopping during weekends is common. Other popular shopping occasions include National Day (1st October), sales time (August/February), New Year's Day (January), 15 August etc.

MARKETING CHANNEL-Promotional activities in shopping malls and Single Alone stores are the most popular promotional and sales activities, followed by discount/price reduction, , discount coupons, promotional stands, exhibitions, buy-one- (or more) gets-one-free.

PURCHASING POWER-On average UCB customers purchase power are very high.

SELECTION CRITERIA-When choosing Apparel goods, product quality stood out as the principal consideration for respondents, followed by product material, craftsmanship, style/design, price and brand.

POPULAR BRANDS- Most respondents considered brands important.

SWOT ANALYSIS

Strengths-

Global brand recognition Extensive retail distribution network Flexibility from wholesale distribution. New collection structure Outsourcing and delocalization of promotion.

Weaknesses-

Concentarated sales mix Wholesale distribution limits control Still limited brand awareness on international markets Competitive market

Opportunities-

Development of men’s collection Accessories Development of underwear collection Development of children wear Development of licenses and further brand extension Re launch of playlife Expansion into emerging markets Exposure to currencies Real estate spin off

Threats-

Collection & fashion risk

Mature sector Low sector entry barriers Macroeconomics scenario Real estate investment End of markup policy

4 P’s –

PRODUCT-

Segmentation:

Targets Men and Women.

Generally of the age between 15 years to 50 years.

Serving Niche segments for some products.

The consumer is a fashionable or an fashion follower.

Targeting:

Targets the youth who is educated.

The consumer is from Upper Middle Class.

The consumer is working & loves sports.

The consumer is fashionable and stylish.

Positioning:

A combination of colors, energy & practically customers who buy Benetton product feel good about themselves as they have a social conscience & also they feel morally strong by using them.

A very clear and unequivocal position that would not be forgotten by customer easily.

Price-

The prices of the products are skimming. The prices are psychological.

The segment is niche, so the prices are higher. Some products are having penetration prices.

Promotions-

Official Sponsor of the car champion ship. UCB LIFESTYLE Promotions are done with GIFT VOUCHER.

Introduction to Market Potential and Catchment Analysis

Market Potential

Market Potential:-

Market Potential is the total amount of a product/service that customers will purchase within a

specified period of time at a specific level of industry wide marketing activity or estimated maximum

total sales revenue of all suppliers of a product in a market during certain period of time.

This is an important aspect of marketing since one has to do market research related to his industry

product which can be business to consumer or business to business. Market potential is basically

carried out to know the strength in the industry also to allocate the target to the sales force based

on optimum market research which normally includes the customer’s requirement and their

expansion plans, investment etc. With optimum information a company can know amount of

investment for a product, also for a particular area.

Total Market Demand:-

The total market demand for a product or service is the total volume that would be bought by a

defined consumer group in a defined geographic area in a defined time period in a defined

marketing environment under a defined level and mix of industry marketing effort. Total market

demand is not a fixed number but a function of the stated conditions.

Market demand in Market potential

Market forecast

Market minimum Planned expenditure

Industry marketing expenditure

Market demand as a function of Industry marketing expenditures

Fig (1): Market Demand

Figure (1) shows the relationship between total market demand and various market conditions. In

this figure, upper limit of market demand is called Market Potential.

Companies have developed various practical methods for estimating total market demand.

A common method to estimate total market demand is as follows:-

Q = n × q × p

Where Q = total market demand

n = number of possible buyers in the market

q = quantity purchased by an average buyer per year

p = price of an avg. unit

Benefits of Market Potential Analysis:-

Understand market potential for a single store, network of stores or a new market.

Deploy resources effectively by ranking markets in priority order.

Forecast total opportunity in terms of number of customers and revenue potential.

Estimate your market share.

A market potential analysis may include:

A customer profile to understand where to find more like them

Market penetration and market share reports showing performance in existing markets and

expected performance in new markets

Market ranking reports allowing you to prioritize resource deployment into new markets

A geographic view of market opportunity on detailed maps

Market potential can be expressed as a function of:

The number of customers purchasing

Amount purchased

Frequency of purchase

In other words, market potential = (how many * how much* how often)

Bottom Up or Top Down Market Analysis:-

A Bottom Up approach to market sizing starts with a company customers. How much and

often do they buy? What is their profile? How many potential customers do you have in the

market based on your customer profiles? How can you reach them?

A Top Down approach starts with market and industry data. It takes a close look at a

geographic market area and profiles the consumers and/or businesses to let you know their

propensity to buy your products and services.

Estimating the market or market potential for a new business or business expansion is critical in

determining the economic feasibility of a venture. But market potential is very essential for the

company and by knowing market potential a company can make its position in the market by finding

how many players are there in that sector.

CATCHMENT ANALYSIS

Introduction about Ghaziabad :-

Anand vihar is developed area of Ghaziabad and it consists of all class of family. In his area

5.4% families belong to Socio Economy Class (SEC) A+, 38.6% families belong to SEC A,

52% families belong to SEC B and 4% families belong to SEC C. All this result has been

found with the help of Area Mapping technique and catchment analysis, all these data are

approximate. By all these data we can find that this area is having good market opportunities

retail Supermarket.

If a company doesn’t know who its shoppers are, how can company give them what

they want?  If company doesn’t know where they come from, how can company

communicate with them? Finding answers to these questions is vital but catchment

analysis is very helpful in that.

A company or retail store will be able to optimize its activities if and only if company

knows its market in depth. Its market penetration, its success and its potential depend

on geographical factors, hard to grasp, hard to fully understand, but catchment

analysis is very helpful.

In the catchment analysis, first part is the area mapping of that local market and

through that finds the locations of the competitors, customers and traffic between

them. Through that we quantify the sizes and potentials of that local catchment areas

and market of that area as whole.

With the help of catchment analysis, company knows the best location for business,

target and potential customers

Type of catchment area

There are four type of catchment that is following

Unitary Catchment

It is hub of the catchment area around the outlet, from where maximum number of

people comes to the retail stores for shopping.

Secondary Catchment

This area is called secondary catchment area which is around 2 km far away retail

stores from where some people come to the shop for shopping.

Tertiary Catchment

The area from where only some selected or loyal customers come to the retail stores

that is more than 2 km far from outlet.

Outer Catchment

Outer catchment area is totally outer area from where only less no. of person

sometimes comes to the outlet,

9. Data Analysis and Interpretation

Data Analysis and Interpretation

Research in retail is very essential, as customer preferences and choices are dynamic and change

frequently, the retail company needs to understand these before redesigning its processes for

enhancing business and many more. Since customer interaction takes place at the store and near

store, there is a big opportunity to gather first hand information and feedback from customers

through research and survey. Research is carried out at the retail level for concept testing, business

feasibility analysis, identification of the right product mix, target customer and market potential.

The major objectives of analysis of data are:-

To evaluate and enhance data quality

Describe the study population and its relationship

Examine effects of other relevant factors

Seek further insight into the relationship observed or not observed

Evaluate impact and importance

Target Customers—

Out of 50 respondents who answerd the questionnaire, 33.5% people fall in the age group 18-25

years, 38% people fall in the age group 26-35 years,14% people fall in the age group 36-45 years,

6.75% people fall in the age group 46-55 years and 7.75% people fall in the age group 56+ years.

From the above analysis, it is observed that majority of the residents fall in the age group 18-25 and

26-35.

34%

38%

14%

7%

8%

Age Group of Respondents

18-2526-3536-4546-5556+

No. of family member’s of the Respondents-

Out of 50 respondents who answerd the questionnaire, 34.5 people belong to 5 member’s family,

33.75% people belong to 4 member’s family, 13.5% people belong to 6 member’s family, 10.5%

people belong to 3 member’s family, 5% people belong to 2 member’s family, 1% people belong to 8

member’s family.

18%

14%

11%7%21%

29%

family member

123456

Target Customer- Education Wise

Out of 50 respondents who answered the questionnaire, 1.75% people belong to S.S.C. category

education level, 7% people belong to Inter category education level, 53.75% people to Graduate

category education level, 34.5% people belong to Post Graduate category education level and 3%

people belong to others category education level.

Occupation of Respondents

On this basis of 50 respondents who answered the questionnaire, 43% people belong to Service

category, 21.75% people belong to Business category, 18.25% belong to Student category, 6.75%

people belong to House Wife category and 10.25% people belong to Others category.

18.25

6.75

43

21.75

10.25

Occupation of Respondents

StudentHouse WifeServiceBusinessOthers

Monthly Income of Respondents

Out of 50 respondents who answered the questionnaire, 17% people belong less than 5000 monthly

income category, 19.5% people belong to 5000-10,000 monthly income category, 37.25% people

belong 10,000-20,000 monthly income category and 26% people belong to more than 20,000

monthly income category.

Out of 50 respondents who answered the questionnaire, 71% people go to Supermarket’s

for shopping, 16.50% people shop from malls, 11.25% people shop at local retailers and

1.25% people shop at others.

66%

17%

1%

16%

Regular shopping place of Re-spondents

Super marketMallsotherlocal retailer

For Better Price

Out of 50 respondents who answered the questionnaire, 44.75% said very high about pricing

of products, 28.5% said average, 12% said low and none said very low regarding Better Price

in reasons for visiting a UCB.

14%

33%

52%

PRICE RANGEvery low low average high very high

Out of 50 respondents who answered the questionnaire, 57% said good about products knowledge of employee, 22.5% said average, 7.25% said very good and 1%

said very poor regarding Convenience/Opening Hours in reasons for visiting a UCB store.

Most of the customers do not buy during promotions. Generally, the respondents who buy occasionally or twice a year do not buy during promotions but go for seasonal offers (34%). Moreover, when they buy is not fixed (23%).

Ranking different brands of jeans revealed the respondents followed by UCB (45)

gave that Pepe Jeans (30) the highest rank. Levis, the brand in question was ranked

third (20).

%

During Promotions Seasonal Offer Not Fixed0

1

2

3

4

5

6

7

8

9

Every 3 monthsOccasionallyEvery 6 monthsOnce a year

BRANDS

The highest ranked attribute was given to durability of mess and Apparel followed by

durability of attachment and range of fitting styles.

UCB Pepe Jeans Levis Lee Mufti0

5

10

15

20

25

30

35

40

45

50

Durabilit

y of m

ess

Durabilit

y of a

ttachmen

t

Fitting s

tyles

Sales

promotions

Trned

y look

Adverti

sing

Using t

echnology

Range

of size

s

Aftersale

s serv

ice0

5

10

15

20

25

Majority of them said that they couldn’t say whether advertising and sales

promotions affected their post purchase satisfaction(41%), followed closely by those

to whom advertising and promotions affected(39%).

Findings of the Study

Findings of the Study

After completing the survey and analyzing the responses of the persons contacted. I came across the

following facts—

Consumer life style and spending pattern are changing, more and more customers are visiting EBO.Demographics of Anand Vihar are very nice for retail business. In this area 38% people belong 26-35 age group category, 33.5% people belong to 18-25 age group category, and 14% people belong to 36-45 age group category and rest other age group.Anand Vihar is mixture of Joint family and Nuclear family because 34.5% family are having only 5 family member’s, 30.75% family are having only 4family member’s, 13.5% family are having 6 family member’s and 10.5% family are having 3 family member’s.Residents of Anand Vihar are well qualified. 53.75% people are Graduate, 34.5% people are Post Graduate and 7% people have studied Intermediate/ S.S.C.In Anand Vihar area most of the people are service man. 43% people are job holders, 21.75% people are business man, 18.25% people are students and 6.45% women are house wives, 10.25% people do other works. Among the women respondent most of them are job holders or business women. This finding indicates that earning person is the decision maker for a family even for shopping or any other work. Most of the customers complained---In UCB, several variety of product is not available, stock of 1 variety of brand is not sufficient; company should keep more variety of product.UCB use skimming pricing strategy in own product that why product are very costly .Product assortment is not good.Arrangement of products is not systematic, we face problem many times for selection of products.Footwear are not available in the store.Accessories are available at few quantity.For Shoes and hand bags, carry bag is small.Store opening time should be decreased.Most of the customers were not too happy with level of service.Maximum time Light doesn’t work properly.Products are not updated; new launched products are not available. VM is very poor and floor is very small.Back storage area is very small according to merchandise availability.

Suggestions and Recommendations

Suggestions and Recommendations

Most of the customers believe that stock is not updated and no offer schemes are provided by Adidas on the old stock. Same price is charged for both the fresh stock and old stock. Respondents feel offers should be provided on the old in other retail stores.UCB should employ experienced sales staff so that they can better explain the quality and features of the products.

Some of the people find in-store environment of UCB Store very dull, so try to maintain nice store image which attracts the customers and it works in word of mouth marketing for attracting more customers.Variety of products should be increased for better selection by the customers so that customers can choose from a huge lot of items of different companies having different features as the customers of Anand Vihar complained more regarding variety of products.Company should try to include kids’ apparels segment in the LIFE PLAY for attracting the customers.To improve Product visualization the Company should do visual merchandising in better way.UCB should do intensive advertisement through pamphlets, local newspaper, banners, FM Radio, Kiosks for creating more awareness.Variety of products should be increased with deep assortment for better selection by the customers so that customers can choose from huge lot of items of same company.Customers are very eager to know about offers, discount schemes provided by UCB then UCB should do better marketing for creating awareness about offers and discount schemes. Complained and feedback should be taken care in well manner to create the loyalty and goodwill.Merchandise should be arranged properly.Company should offer competitive price with good quality of products because most of the customers visit to Supermarket for better price and quality of products. Company should give information to the customers through the marketing gimmick (sms) using database of customers.Billing should be fast because customers don’t want to stay in the store after purchasing the products at the time of sale.

Limitations of the Study

Limitations of the Study

Following are the few limitation of the particulars research study.

The sample size chosen is limited to 50 only because of time and financial constraint.

This study was based purely in ANAND VIHAR, GHAZIABAD.

Data collected may not be a representation of the entire population.

The time duration for this project was only for a period of 45 days.

I also took the view of respondents who don’t shop from Adidas.

This study was limited to the capabilities and willingness of the respondents in appropriately

answering the questions and information given by respondents may be correct and may not

be correct.

Conclusion

Conclusion

The products of the company are good in quality but the style should be improved in order

to cater all the segments of the market that are already being occupied by the competitors.

In the organized retail market of GHAZIABAD, UCB has come up with E.B.O in the city in

2001, giving good competition to its competitors like PEPE JEANS, LEVIS and other retail

outlets. In the near future, it plans to open many stores in other malls in GHAZIABAD and

other cities and some stores in other parts of U.P Many more competitors has entered the

market and many are about to enter the market, making Adidas journey even tougher.

Hence, UCB has to take some important steps to overcome its problem areas and implement

the suggestions before the existing and new retailers grab the opportunity Making Adidas

existence even more challenging.

To sum up UCB is facing tough competition from its competitors PEPE JEANS, LEVIS etc, who

have grabbed half of the market by establishing its stores in prime area of the city. UCB has

to do intensive media advertisements by roping in celebrities as brand ambassadors to

create awareness of its existence, since most of the customers came to know only through

friends and family.

PLAY LIFE has good brand awareness but still UCB lacks in terms of availability of

products, range of items, high pricing and offers and discounts which can mesmerize

the customers to walk in to UCB as compared to its competitors PEPE JEANS,

LEVIS, LEE etc.

Company can enhance its business or increase its sales by providing better customer

service than its competitors, increase the variety of merchandise with deep assortment

and intensive promotion with the help of pamphlets, kiosks, radio about various

offers.

Annexure

FEEDBACK FORM

Name:-

Address:-

Extremely DissatisfiedSomewhat Dissatisfied

Neither Satisfied nor Dissatisfied

Somewhat SatisfiedExtremely Satisfied

Contact No:-

1. What is your age group?

i) 18-25 ii) 26-35 iii) 36-45 iv) 46-55 v) 56+

2. How many Members’ do have in your family including with you

3. Your Education Level

1. S.S.C 2. Inter 3. Graduate 4. Post Graduate 5. Others

4. Your Occupation

1. Student 2.House Wife 3. Service 4.Business 5. Others

5. What is your monthly income?

1. < 5000 2. 5000-10,000 3. 10,000 - 20,000 4. >20,000

6. Where do you shop regularly?

1. Supermarket’s 2. Local market 3. Others

7) How satisfied are you on the following parameters of UCB jeans?

Durability of mess

Price vis-à-vis quality

Range of colours

Range of fitting styles

Range of sizes

Durability of stitching

with upper

Washing convenience

Range of shades

After sales service

7) Rate the following attributes on a scale of 1-9 in affecting your decision making process: (9 being the most important and 1 being least)

Attributes Rate

a. Durability of cloth

b. Durability of stitching

c. Trendy clothes

d. Range of fitting styles

e. Range of sizes

f. Range of shades

g. After sales service

h. Advertising

i. Promotion

If, any other please specify

SUGGESTIONS

THANK YOU

Bibliography

Bibliography

Books:-

Marketing Management (13th Edition) - By Philip Kotler, Keller,

Principles of Marketing (11th Edition) – By Philip Kotler and Gary Armstrong

Research Methodology -- C.R. Kothari

Retailing - A.J. Lamba

Reference:-

www.google.com

www.adidasgroup.com

www.indiaretailing.com

www.retailindustry.com

www.adidasperformanceretail.com

www.ibef.org

www.thebrandreporter.com

www.shoefashion.com