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A REPORT
ON
“CONSUMER BEHAVIOUR TOWARDS ACTION SHOES”“CONSUMER BEHAVIOUR TOWARDS ACTION SHOES”
BY
A Summer Training Project Report
Submitted in partial fulfillment of the requirement for the Award of
Degree of
BACHELOR OF BUSINESS ADMINISTRATION
Submitted by : Guided By :-
Vinod Kumar Ms. Surinder Kaur Walia
BHARATI VIDHYAPEETH UNIVERSITY INSTITUTE OF MANAGEMENT &
RESEARCH, NEW DELHI
AN ISO 9001: 2008 Certified Institute
NAAC Accredited Grade “A” University
Ranked in Top 50 B – schools in India By Business India
Recipient of B – school leadership award from Star News
CERTIFICATE OF ORIGINALITY
This is to certify that the project report entitled “Consumer Behaviour Towards
Action Shoes Submitted to Bharati Vidyapeeth University in partial fulfillment of the
requirement for the award of the degree of BBA VISem is an original work carried
out by Vinod Kumar under the guidance of Ms. Surinder Kaur Walia. The matter
embodied in this project is a genuine work done by Vinod Kumar to the best of my
knowledge and belief and has been submitted neither to this University nor to any
other University for the fulfillment of the requirement of the course of study.
Vinod Kumar Ms. Surinder Kaur Walia
i
CERTIFICATE
This is to certify that the Project titled “Consumer Behaviour Towards Action
Shoes” is an academic work done by “Vinod Kumar” Submitted in the partial
fulfillment of the requirement for the award of the Degree of course from “Bharati
Vidyapeeth University, New Delhi “.It has been completed under the guidance of
Mrs. Rosie Walia We are thankful to HCL Info systems Ltd for having allowed our
student to undergo project work training. The authenticity of the project work will be
examined by the viva examiner which includes data verification, checking duplicity of
information etc. and it may be rejected due to non fulfillment of quality standards set
by the institute.
Dr. AR. Deshmukh
Director
ii
ACKOWLEDGEMENT
Achievement is finding out what you would be then doing, what you have to do. The
higher the summit, the harder is the climb. The goal was fixed and we began with a
determined resolved and put in ceaseless sustained hard work. Greater challenge,
greater was our effort to overcome it.
This project work, which is my first step in the field of professionalization, has been
successfully accomplished only because of my timely support of well-wishers. I
would like to pay my sincere regards and thanks to those, who directed me at every
step in my project work.
I would also like to thank the faculty members and the staff members of Action Shoes
for their kind support and help during the project.
Vinod Kumar
iii
CONTENTS
CHAPTER-1 : Introduction 1
1.1. Overview of the industry
1.2. Company Profile
1.3. Problems faced by the organization
1.4. Competitors Information
1.5. SWOT Analysis
CHAPTER-2: Research Methodology 57
2.1 Statement of problem
2.2 Objectives of the study
2.3 Research methodology
2.4 Limitations of the studies
Chapter 3: Conceptual Discussion 62
Chapter 4: Data Analysis and Interpretation 70
Chapter 5: Findings and recommendations 84
Chapter 6: Conclusion 87
Bibliography 89
Annexure 90
Questionnaire
iv
CHAPTER 1
INTRODUCTION
1
1.1 OVERVIEW OF THE INDUSTRY
The Footwear Industry is a significant segment of the Leather Industry in India. It is
the engine of growth for the entire Indian leather industry and India is the second
global largest producer of footwear after china.
The footwear sector has matured from the level of manual footwear manufacturing
methods to automated footwear manufacturing systems. While leather shoes and
upper are produced in medium to large scale units, the sandals and chappals are
produced in the household or cottage sectors.
India produces 2065 million pairs of Different Categories of Footwear (Leather
Footwear 909 million pairs, Leather Shoe uppers 100 million pairs and Non-leather
footwear 1056 million pairs)
India produces more of gents footwear while the world’s major production is in ladies
footwear.
Presently the Indian Footwear market is dominated by Men’s footwear market that
accounts for nearly 58% of the total Indian footwear retail market.
Fig.1 Volume share in footwear
By products, the Indian footwear market is dominated by casual footwear market that
make-ups for nearly two-third of the total footwear retail market.
2
Fig.2 Volume share of products segment in footwear
As footwear retailing in India remain focused on men’s shoes, there exists a plethora
of opportunities in the exclusive ladies and kids footwear segment with no organised
retailing chain having a national presence in either of these categories.
The Indian Footwear Industry is provided with institutional infrastructure support
through premier institutions like Central Leather Research Institute, Chennai,
Footwear Design and Development Institute, Noida, National Institute of Fashion
Technology, New Delhi, etc in the area of technological development, design and
product development and human resource development.
There are nearly 4000 units engaged in manufacturing footwear in India. The industry
is dominated by small scale units with the total production of 55%. The total turnover
of the footwear industry including leather and non-leather footwear is estimated at
Rs.8500-9500 crore (Euro 551.3-1723.1 Million) including Rs.1200-1400 crore (Euro
217.6-253.9 Million) in the household segment.
Strength of India in the footwear sector originates from its command of reliable
supply of resources in the form of raw hides and skins, quality finished leather, large
installed capacities for production of finished leather and footwear, large human
capital with expertise and technology base, skilled manpower and relatively low cost
labour, proven strength to produce footwear for global brand leaders and acquired
technology competence, particularly for mid and high priced footwear segment.
3
Resource strength of India in the form of material and skilled manpower labour is a
comparative advantage for the country.
The Indian Footwear Industry provides employment opportunities to a total of 1.1
million people, mostly from the weaker sections of the society. Out of this, about 0.2
million are employed in the organized sector, 40% of whom are women.
The major production centres in India are Chennai, Ranipet, Ambur in Tamil Nadu,
Mumbai in Maharashtra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal,
Ludhiana, Sonipat, Faridabad, Pune, Kolkata, Calicut and Ernakulum.
The Indian footwear retail market is expected to grow at a CAGR of over 20% for the
period spanning from 2013 to 2014.
Footwear is expected to comprise about 60% of the total leather exports by 2014 from
over 38% in 2011-12.
Indian Footwear Industry Overview:
Indian leather industry is the core strength of the Indian footwear industry. It is the
engine of growth for the entire Indian leather industry and India is the second largest
global producer of footwear after China.
Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks,
Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and
Colehaan are manufactured under license in India. Besides, many global retail chains
seeking quality products at competitive prices are actively sourcing footwear from
India.
While leather shoes and uppers are produced in medium to large-scale units, the
sandals and chappals are produced in the household and cottage sector. The industry
is poised for adopting the modern and state-of-the-art technology to suit the exacting
international requirements and standards. India produces more of gent’s footwear
while the world’s major production is in ladies footwear. In the case of chapels and
sandals, use of non-leather material is prevalent in the domestic market.
4
Leather footwear exported from India are dress shoes, casuals, moccasins, sport
shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear exported from
India are Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other
materials.
With changing lifestyles and increasing affluence, domestic demand for footwear is
projected to grow at a faster rate than has been seen. There are already many new
domestic brands of footwear and many foreign brands such as Nike, Adidas, Puma,
Reebok, Florsheim, Rockport, etc. have also been able to enter the market.
The footwear sector has matured from the level of manual footwear manufacturing
methods to automated footwear manufacturing systems. Many units are equipped with
In-house Design Studios incorporating state-of-the-art CAD systems having 3D Shoe
Design packages that are intuitive and easy to use. Many Indian footwear factories
have also acquired the ISO 9000, ISO 14000 as well as the SA 8000 certifications.
Excellent facilities for Physical and Chemical testing exist with the laboratories
having tie-ups with leading international agencies like SATRA, UK and PFI,
Germany.
One of the major factors for success in niche international fashion markets is the
ability to cater them with the latest designs, and in accordance with the latest trends.
India, has gained international prominence in the area of Colours & Leather Texture
forecasting through its outstanding success in MODEUROP. Design and Retail
information is regularly made available to footwear manufacturers to help them
suitably address the season's requirement.
The Indian Footwear Industry is gearing up to leverage its strengths towards
maximizing benefits.
Strength of India in the footwear sector originates from its command on reliable
supply of resources in the form of raw hides and skins, quality finished leather, large
installed capacities for production of finished leather & footwear, large human capital
with expertise and technology base, skilled manpower and relatively low cost labor,
proven strength to produce footwear for global brand leaders and acquired technology
competence, particularly for mid and high priced footwear segments. Resource
5
strength of India in the form of materials and skilled manpower is a comparative
advantage for the country.
The export targets from 2010-11 to 2013-14 as tabulated below reflects the fact that
footwear sector is the most significant segment of the Leather Industry in India.
The export targets from 2010-11 to 2013-14
(In Million US$)
Product 2010-11 2011-12 2012-13 2013-14 2014-15
Actual Export
Leather 688.05 726.85 785.00 847.80 915.63
Footwear 1212.25 1967.88 2597.60 3428.83 4526.05
Garments 308.98 358.53 372.87 387.78 403.30
Leather Goods 690.66 733.34 798.69 870.06 948.04
Saddlery & Harness 81.85 105.66 127.85 154.70 187.19
Total 2981.79 3892.26 4682.01 5689.17 6980.21
India has emerged in recent years as a relatively sophisticated low to medium
cost supplier to world markets –The leather industry in India has been targeted
by the Central Government as an engine for economic growth. Progressively, the
Government has prodded and legislated a reluctant industry to modernise. India was
noted as a supplier of rawhides and skins semi processed leather and some shoes.
In the 1970’s, the Government initially banned the export of raw hides and skins,
followed this by limiting, then stopping the export of semi processed leather and
encouraging local tanneries to manufacture finished leather themselves. Despite
protestations from the industrialists, this has resulted in a marked improvement in
the shoe manufacturing industry. India is now a major supplier of leather footwear
to world markets and has the potential to rival China in the future (60% of Chinese
exports are synthetic shoes).
6
India is often referred to as the sleeping giant in footwear terms. It has an installed
capacity of 1,800 million pairs, second only to China. The bulk of production is
in men’s leather shoes and leather uppers for both men and ladies. It has over 100
fully mechanised, modern shoe making plants, as good as anywhere in the world
(including Europe). It makes for some upmarket brands including Florsheim (US),
Lloyd (Germany), Clarks (UK), Marks and Spencer (UK).
India has had mixed fortunes in its recent export performance. In 2000, exports of
shoes were US$ 651 million, in 2001 these increased to 663 million but declined
in 2002 to 623 million dollars (See Statistics).
The main markets for Indian leather shoes are UK and USA, which between them
take about 55% of total exports.
India has not yet reached its full potential in terms of a world supplier. This is due
mainly to local cow leather that although plentiful, has a maximum thickness of 1.4
– 1.6mm, and the socio / political / infrastructure of the country. However, India
is an excellent supplier of leather uppers. Importation of uppers from India does not
infringe FTA with Europe or the USA.
The potential is set to change albeit slowly, but with a population rivalling China for
size, there is no doubt the tussle for world domination in footwear supply is
between these two countries.
Few Interesting Facts:
- The Indian footwear retail market is expected to grow at a CAGR of over 20%
for the period spanning from 2008 to 2011.
- Footwear is expected to comprise about 60% of the total leather exports by
2011 from over 38% in 2006-07.
- Presently, the Indian footwear market is dominated by Men's footwear market
that accounts for nearly 58% of the total Indian footwear retail market.
- By products, the Indian footwear market is dominated by casual footwear
market that makes up for nearly two-third of the total footwear retail market.
7
- As footwear retailing in India remain focused on men's shoes, there exists a
plethora of opportunities in the exclusive ladies' and kids' footwear segment
with no organized retailing chain having a national presence in either of these
categories.
- The Indian footwear market scores over other footwear markets as it gives
benefits like low cost of production, abundant raw material, and has huge
consumption market.
- The footwear component industry also has enormous opportunity for growth
to cater to increasing production of footwear of various types, both for export
and domestic market.
In a Nutshell:
There are nearly 4000 units engaged in manufacturing footwear in India. The industry
is dominated by small scale units with the total production of 55%. The total turnover
of the footwear industry including leather and non-leather footwear is estimated at
Rs.8500-9500 crore (Euro 551.3-1723.1 Million) including Rs.1200-1400 crore (Euro
217.6-253.9 Million) in the household segment.
India's share in global leather footwear imports is around 1.4% Major Competitors in
the export market for leather footwear are China (14%), Spain (6%) and Italy (21%).
The footwear industry exist both in the traditional and modern sector. While the
traditional sector is spread throughout the country with pockets of concentration
catering largely to the domestic market, the modern sector is largely confined to select
centres like Chennai, Ambur, Ranipet, Agra, Kanpur and Delhi with most of their
production for export.
Assembly line production is organized, and about 90% of the workforces in the
mechanized sector in South India consist of women. In fact, this sector has opened up
plenty of employment opportunities for women who have no previous experience.
They are trained to perform a particular function in the factory itself.
Shoe business is huge and increasingly diversified business driven by a host of
demographic lifestyle, and fashion trends. It would not be exaggerating to say that
8
globally the shoe industry is having expanding market rather it is axiomatic. As the
world population increases so the living standards of people rise thus increasing the
demand of shoes.
The shoe market consists of the total revenues generated through the sale of all
type of men’s, women’s and children’s shoes. The global figure includes the
Americas, Asia Pacific and Europe. Americas consist of Brazil, Canada, Mexico and
US, while Asia pacific consists of Australia, China, India and Japan. Europe
comprises of Czech Republic, France, Denmark, and Germany etc.
According to the report published by SATRA, Asia including India Subcontinent is
the largest market for SHOES in terms of consumption. Next to Asia is Americas and
then followed by Europe and rest of the world. In monetary terms the market shows a
different picture as Asia lies behind Europe and North America but irony to the
situation is that Asia is the leader in terms of shoes consumption and market. It is
merely because of the population density in the Asia.
China is the largest producer and exporter of shoes and it is also the biggest consumer
of footwear by virtue of the size of its population. Overall the shoe production is
highly concentrated in Asian market and the consumption in the US and European
market.
According to SATRA (Shoe and allied trade research association, UK)
the global trend of footwear industry are as follows.
Consumption
(Millions of pairs)
2003 2005 2007 2009 2013
Asia (all) 4744 5222 5474 5840 6528
Americas 3011 3274 3279 3433 3611
Europe (all) 2239 2396 2544 2717 2886
Rest of the world 1086 1187 1172 1317 1399
Total 11080 12079 12469 13307 14424
9
The Footwear Industry is a significant chunk of the Leather industry in India.
India ranks second among the footwear producing countries next to China. The
industry is labor intensive and is concentrated in the small and cottage industry
sectors. While leather shoes and uppers are concentrated in large-scale units, the
sandals and chappals are produced in the household and cottage sector. India produces
more of gents’ footwear while the world’s major production is in ladies footwear. In
the case of chappals and sandals, use of non-leather material is used to manufacture
these in the domestic market.
The industry is on the edge of adopting the modern and state-of-the-art
technology to suit the exacting international requirements and standards. The Indian
Footwear Industry is all set for leveraging its strengths towards maximizing benefits.
Strength of India in the footwear sector originates from its command on reliable
supply of resources in the form of raw hides and skins, quality finished leather, large
installed capacities for production of finished leather & footwear, large human capital
with expertise and technology base, skilled manpower and relatively low cost labor,
proven strength to produce footwear for global brand leaders and acquired technology
competence, particularly for mid and high priced footwear segments. India has the
competitive advantage over other countries in the form of materials and skilled
manpower.
The footwear industry exists both in the traditional as well as modern sector.
While the traditional sector is spread throughout the country with clusters of
concentration catering largely to the domestic market, the modern sector is largely
confined to selected centers like Chennai, Ambur, Ranipat, Agra, Kanpur and Delhi
with most of their production for export.
Assembly line production is organized, and about 90% of the workforces in the
mechanized sector in South India consist of women. In fact, this sector has opened up
plenty of employment opportunities for women who have no previous experience.
Presently the key players in Indian market are Bata, Adidas, Liberty, Action, Relexo,
Reebok and NIKE.
10
SHOE INDUSTRY – PEST ANALYSIS
Political
• Recent merger between Adidas and Reebok.
• Home market lobbying/pressure groups.
• Very few sporting events apart from cricket fixtures to attract customers.
Economic
• Marginal share of 2.44 percent in global trade worth US$ 97.606 billion.
• Estimated target of 12 bn $ (7bn $ export + 5 bn $ domestic) trade by the year
2014 overseas economies and trends.
• The Indian footwear retail market is expected to grow at a CAGR of over 20%
for the period spanning from 2013 to 2014. Footwear is expected to comprise
about 60% of the total leather exports by 2014 from over 38% in 2011-12.
• Growing middle class and growing buyer power leading customers to look for
branded shoes.
• Seasonality issues – sports is more of a rage in summers.
• Lack of targeting of market segments for kids and women.
Social
• Lifestyle trends – upward shift.
• Demographics
• Consumer attitudes and opinions changing favorably towards branded shoes
• Media views
• Consumer buying patterns
• Fashion and role models
11
• Buying access and trends
• Advertising and publicity
Technological
• Competing technology development
• India offers benefits like low cost of production, abundant raw material, and a
huge consumption market
• Research funding in design and requirements
• Manufacturing maturity and capacity
• Information and communications
• Consumer buying mechanisms/technology
• Innovation potential
• Technology access, licensing, patents
12
SWOT ANALYSIS OF SHOE INDUSTRY
13
MAJOR PLAYERS IN SHOE MARKET
PUMA NIKE
WOODLAND
ADIDAS BATA RELAX0
LIBERTY ACTION
14
IMPORTS:
In 2008, the global import of footwear (leather and non-leather) in terms of value was
around US$43278 million, accounting a share of 63.42% in the total global import of
leather products. Out of this, import of leather footwear accounted for US$ 26379
million and non-leather footwear US$ 16899 million.
India's share in global leather footwear imports is around 1.4%. Major Competitors in
the export market for leather footwear are China (14%), Spain (6%) and Italy (21%).
EXPORTS:
India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet
its own domestic demand. Footwear exported from India are Dress Shoes, Casuals,
Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and
Chappals made of rubber, plastic, P.V.C. and other materials. The major markets for
Indian Leather Footwear are the U.K - 16.31%, the U.S.A.- 9.22%, Germany -
16.66%, Italy - 15.32%, France - 7.81% and Russia. Nearly 75% of India’s Export of
Footwear is to Germany, the USA, the U.K and Italy.
The export targets from 2010-11 to 2013-14 as tabulated below reflects the fact that
footwear sector is the most significant segment of the Leather Industry in India.
The export targets for 2010-11 (In Million US$)
Product 2014-15Leather 915.63Footwear 4526.05Garments 403.30Leather Goods 948.04Saddler & Harness 187.19Total 6980.21
15
Fig.3 Export targets for 2013-14
India’s Export of footwear – Last Five Year’s (In Million
US$)
Product 2010-11 2011-12 2012-13 2013-14 2014-2015Footwear 1045.24 1236.91 1475.83 1727.40 1299.22% Growth 14.76% 18.34% 19.32% 22.09% (13.21%)
Fig.4 India's Export of footwear
16
1.2 COMPANY PROFILE
" A relentless race against time...,
The burning passion to win...,
A strong desire to set the trends....,
No wonder, life is all Action...."
Action shoes was incorporated in the year 1972. The beginning was with a range of
footwear made from PVC, with a vision to serve the average Indian population at that
point of time. In the year 1979, the group ventured into sports shoes market by the
brand name of Action and made a revolution.
The Action group is one of the India's leading business conglomerates. Action is not
only a leading brand in footwear, but also group has made investments in various
streams un-related to the existing line of business. The group commenced its
operations as a source of footwear and its components in domestic and export
markets, gradually moving its core competence into other diversified fields such as:
(API) Chemicals and Plasticizers,
(MICROTEK) Computer Monitors and Peripherals,Power Back Up/Inverters,
(OKAYA) Batteries,
(SUN CITY) Housing Projects and;
(SRI BALAJI ACTION MEDICAL INSTITUTE) Health Care.
There are different individual companies under a common umbrella, each dedicated to
a specific line of product manufacturing, procuring or other particular business
activities.
17
Today the group strategy is to be competitive and to be a leader in the quality of
goods and services provided.
With over three decades of experience in footwear industry, Action is synonymous
with quality shoes for the whole family-ranging from casuals to formals; from daily
wear to sportswear and from an elegant collection for ladies to a fun range for kids.
True to its name Action is always on the move to scale newer heights in footwear
designing and manufacturing. Intensive R& D efforts and the latest technology go
into the making of Action footwear. They have in-house manufacturing facilities,
including modern equipments and machineries specially procured from different
countries to manufacture footwear at par with international class and quality.
Each Action shoe is the product of a relentless quest for quality, high level of
workmanship and a true commitment to customer satisfaction. At Action we strive to
listen to the customers in their local markets and identify their footwear needs and
then provide products that exceed the customer's expectations in terms of quality,
style and value.
Action has carved a special niche in the Indian footwear market and in the hearts of
millions of its consumers throughout the country.
Action is headquartered in Delhi, supported by multiple manufacturing and
development units in rest of the states like - Haryana, Himachal Pradesh and Daman
etc. A number of its executives are based in customer geographies with the express
purpose of creating and nurturing channel partners as well as customers relationship.
Having pioneered the development of footwear range from casuals to formals, from
daily wear to sportswear and from elegant collection for ladies to fun range for kids,
Action now operates a specialised technology and research driven ‘CORPORATE
SALES’ division which caters to the variant needs of institutional segments.
Corporate division of Action shoes manufactures a full range of shoes i.e. (Safety
boots) with Steel toe and Fibre toe-cap for Industrial workers, comfort, sturdy and
Heat/Cold resistance shoes for Military, Navy & Police, oil resistant and anti skid
18
shoes for working in professional Kitchens and water resistant and anti- fungal shoes
for Miners.
The company manufactures products as per client's specifications with the Shortest
Lead Time and the Highest Quality. Company’s clientele includes… Asian Paints,
Asashi India Glass, Jet Airways, Hindalco Industries, Maruti Udyog Ltd, Samsung
India Ltd, Indian Army, Indian Air Force, Delhi University, Park Royal, Parle
Biscuits, Mother Diary, Hyatt Regency, Le- Meridian and many more.
Action has a diversified segment on sole manufacturing completely dedicated in
making world-class soles. Action has made a name in manufacturing high quality PU
and TPR soles in domestic as well as international market.
It has always been a pioneer in research and development of new materials and styles
in order to best meet the ever-changing market demands. Action ‘SOLE DIVISION’
has a team of dedicated researchers who are in constant endeavour to develop the best
technology on soles that fulfils the need and requirement of every end user.
Best of all, the soles are also made according to their clients specifications. Their
excellent production capabilities, guarantee prompt delivery of every order in addition
to designing new moulds within the shortest lead time after receiving the order.
Company continually concentrate its efforts on attracting and maintaining world-class
talent, producing high quality products and above all delivering customer satisfaction.
We present a comprehensive collection of premium quality PU and TPR Soles for
men and women's casual & formal footwear. Some of their esteemed national and
international clients are…. CLARKS, BATA, LIBERTY, PONDS, FRANCO
LEONE, HIKER, JOSEPH SIEBEL etc.
19
VISION:
To nurture a financially strong, growth oriented group through leadership and
innovation and to widen future options by entering newly emerging industries where
the potential seems enormous.
Action as a group shall continue to seek opportunities where it can leverage it’s
resources and skills
MISSION:
At Action- the group’s mission is to work together, respecting each other, our skills
and knowledge to:-
1. Build higher quality of products and services.
2. Continually strive to enhance customer satisfaction.
3. Improve customer retention and loyalty.
4. Gain a competitive advantage and larger market share
5. Elimination of scrap, waste, defects and errors.
6. To create a great place to work.
7. Be welcomed in the communities in which we operate.
The brand ' ACTION ' has been able to maintain its aura of exclusivity and distinction
since its first pair of non-formal sporty shoes hit the stores. It continues to be the most
preferred brand in India.
With the growing popularity, proliferation comes along. The company
has elaborated the brand concept by launching a variety of sub-brands
and shoes to suit different occasions. The new products were coined with
attractive catchword, thus helping the customers finding the right shoes.
Action’s range of brands cater to every need in shoe world
20
THE FOUNDERS OF ACTION GROUP
The Action group, one the india’s largest business conglomerates
cane into existence in early 1970s, under the aegis of Shri Mange
Ram Aggarwal – a visionary, a leader, a philanthropist.
Action group began its operations by stepping into the
Footwear industry with Action shoes. This endeavour
reaped rich awards with Action Shoes fast becoming a
household name. Propelled by the spirit of constant
growth and innovation backed by commitment to
excellence the group is today a corporate giant with an
annual turnover in excess of 800 Million USD.
History of the Company
1949: Action adopts the trademark three-stripes.
21
1955: The first license is given to a factory in India to manufacture Action
shoes.
1972: Action introduces the “Trefoil” logo.
1984: Kathe Dassler dies, leaving the company to Horst, the Dasslers’ first-
born.
1987: Horst dies at the age of 51.
1987: Ron More is brought in from Action Canada to run operations and a
new facility is acquired in Warren, New Jersey.
1988: Action is incorporated.
1989: Rob Strasser and Peter Moore of Sports Incorporated present Action
with the “Equipment” concept. The footwear and apparel line is introduced in
1991.
1990: Bernard Taupie purchases 80% of Action stock.
1993: A group of investors led by Robert Louis-Dreyfus, former head of the
British advertising group Saatchi & Saatchi P.L.C., acquires control of Action.
Action America is formed in February; Rob Strasser is appointed CEO and
Peterr Moore becomes Worldwide Creative Director.
1993: Rob Strasser dies on October 30. Peter Moore is named CEO of Action
America n November 9, while maintaining his role as Worldwide Creative
Director.
1994: Action moves from eighth to third position in Indian Footwear Industry
Rankings. Indian Footwear and apparel sales increase by an estimated 75%.
1995: Action goes public on the stock exchange in Frankrurt.
1997: Performance Logo becomes the worldwide Action logo.The acquisition
of Salomon broadens the Action product range to include Taylor Made for
golf products and Mavic for cycle components.
1999: Action achieves record sales and passes the 1 billion dollar mark in
gross sales in the India.
2000: Action proudly celebrates the 100th birthday of our founder, Adi Dassler
2005: The Salomon Group (including Salomon, Mavic, Bonfire, Cliché and
Arc’Teryx) is being sold to Amer Sports in October 2005. The new Action
Group is focusing even more on its core strength in the athletic footwear and
apparel market as well as the growing golf category. The legal name of the
company will change to “Action AG” in May/June
22
2006: Action-Salomon AG acquires Reebok
The closing of the Reebok transaction on January 31, 2006 marks a new chapter in the
history of the Action Group. By combining two of the most respected and well-known
brands in the worldwide sporting goods industry, the new Group will benefit from a
more competitive worldwide platform, well-defined and complementary brand
identities, a wider range of products, and a stronger presence across teams, athletes,
events and leagues.
BRAND ARCHITECTURE
The brand ' ACTION ' has been able to maintain its aura of exclusivity and distinction
since its first pair of non-formal sporty shoes hit the stores. It continues to be the most
preferred brand in India.
With the growing popularity, proliferation comes along. The company has elaborated
the brand concept by launching a variety of sub-brands and shoes to suit different
occasions. The new products were coined with attractive catchword, thus helping the
customers finding the right shoes.
Our range of brands cater to every need in shoe world
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Health plus is our top of the line product manufactured with a careful quality concept,
taking into consideration the Anatomic Structure of the feet. Our feet are the main
center of our nervous and circulation system, which summarize the whole body
organs in itself. The whole day work cause strain on ridge/ankles and pain in our feet.
Health
plus brings relief to all these problems due to special levels/stages provided by
Anatomic sole support. Anatomic base with technically designed 5 pressure points
help your feet for natural movement and walk with full joy and confidence. Health
plus is excellent to use at all occasions and places like home/picnic/shopping etc. It
comes in the size group of 36-41 for ladies and 6-11 for gents and has been priced
in the range of
Rs.700- Rs.1700.
24
Campus symbolises the carefree attitude of youth. with campus lightweight casual
shoes and sandals for young people and kid's freedom is in the air. A combination of
soft synthetic leather/Nubuck and breathable mesh with padded tongue and soft plus
collar lining shoes are manufactured through the latest world class stuck-on process
using EVA and Phylon soles which provides cushion and shock absorption. The
perfect combination of style and comfort gives you a retro feel. The shoes comes in
the size and prize range of 8-13 (Rs. 399-499), 3-5 (Rs. 599), 6-10 (from Rs. 599-
1399). The sandals comes in the size and prize range of 3-5 (Rs. 399-429), 6-10
(Rs. 468-499).
25
"Digital approach to your life" Dot Com is our top of the line product, tailored to
represent your image of maturity and brilliance before the society. An ultimate
achievement by the house of Action in comfort, style and quality in footwear
technology Dot Com formal and semi - formal shoes, sandals & sleepers have become
a precious element, without which final grooming of a complete gentle man is next to
impossible. Check it out and experience for yourself before you get changed and start
this believing. It comes in the size group of 6-10 and has been priced in the range
of Rs.700 to Rs.1300.
26
Action introduces 'MILANO' leather range a unique lightweight HI - TEC formal
shoe with a soft insole (for excellent comfort) and special P.U sole for extra grip. The
soft uppers, which gently hug the foot, are made up of genuine leather. Every care has
been taken to produce technically viable product, which can give the highest comfort
to the foot. World- class materials like upper leather, lining leather, inner lining has
been chosen to give you the best product. The product has been designed keeping in
view the Corporate Appeal and caters to the middle aged executives. It comes in the
size group of 6-10 and has been priced in the range of Rs.790 to Rs.1100.
27
Introducing the EVA FLOTTER range of footwear for the quality conscious Indian.
The EVA slippers are made of Ethyl Vinyl Acetate whose property enable us to give
much lighter products. The EVA products are much comfortable than the other
similar products because of its fine and uniform cell structure which gives excellent
flexibility and comfort ability. The EVA products are wash friendly and heat resistant,
so they are more suitable for summers. The EVA products are available in different
colors, which give good aesthetic appeal. The product is priced between Rs. 99 to
Rs.125 and serves the day-to-day purpose of both men and woman.
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School time has a complete range of school uniform shoes in black, brown as well as
white colors. It is available in various ranges with Velcro closure, laces and
removable straps for both boys and girls. Soft full grain leather looks synthetic upper
and soft lining enhanced comfort feature for growing feet. the PVC sole gives extra
gripping and durability. With an affordable prize ranging from Rs 140 to Rs. 248, it is
no doubt the most loved choice of students as well as parents. It comes in the size
and prize range of 7-10 (Rs. 149), 11-1(Rs. 182), 2-4 (Rs 206), 5-6 (Rs. 231), 6-11
big (Rs. 248)
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Mausam is the brand for men's footwear of all ages, ranging from trendy sandals,
slippers and moccasins to sports shoes. From colorful activity filled shoes for kids to
jazzy and fashionable shoes for young and vibrant people to stylish and comfortable
wear for the aged, Mausam has it all. The synthetic and textile fabric upper gives a
slick finish as well as freedom to your feet. the flexible PU soles and padded ankles
provide that extra bit of cushioning and bounce to the walk. The PVC soles adds to its
live. It comes in the size and prize range of 5-10, 11-1 (Rs. 149-198) for kids, 6-10
(Rs. 748-850) sports, 3-5, 6- 10 (Rs. 248-475) sleepers and sandals, 6-10 (Rs. 388-
513) moccasins and laces.
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Presenting the Florina range of sandals and sleepers for the lady of substance in a
divine combination of design, quality and comfort. The Florina range comes in
aesthetically exhilarating designs that glorify the style that marks the woman of today.
Florina comes in classic styles with a complete range of casuals, stylish and party
wear. Florina range of footwear comes lined with soft Lycra material for extra
comfort and soft P.U latex cushioned sole for extra cushioning. Walk on in the Florina
range of featherweight footwear for an experience as comforting and delightful as
walking on a bed of roses. It comes in the size group of 36-41 and has been priced
in the range of Rs.250 to Rs.450
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Action's Micro is a range of sleepers, sandals, shoes and moccasins made for all
seasons. this highly economical footwear for both men and women is the most used
range among all strata of society. With ultra-flexible PVC upper and sole this range
promises comfort and durability of the highest order and it's perfect for use in high
density rainfall areas, making it highly durable. Its USP is that it is light weight and
yet tough enough for rough treatment. It comes in the size and prize range of 1-2, 3-
4, 5-6, 7-9, 10-11 (Rs. 78-139) for gents and 3-4, 4-8, 5-7 (Rs. 68-94) for ladies.
35
Hooha is a collection of trendy shoes and sandals for children, who want to dare the
world. The innovative ranges of Hooha uses a lot of colours and cartoons,
complements to a child's growing. The synthetic upper gives it a sporty look and the
inner soft lining makes it ideal for a growing delicate feet. The use of micro-expanded
granules absorbs shock and are anti-skid. Attractive lights attached at the soles, make
your child jump out of the bunch of little trouble makers. Hooha shoes and sandals
comes in the size and prize range of 7-10, 11-1 (Rs. 199-224)
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With our Funtime range for children, it is time for making merry. Funtime's trendy
and animated collection is for your fun-loving kids between age ranges 4 to 9. The
electrifying coloured shoes have designs in lace-up and Velcro adjustable straps with
embroidered detailing for a perfect fitting. Padded tongue and collar, fully lined in
soft synthetic fabric, cushioned comfortable insole, with durable PVC sole keep your
children going all day long. The soft inner lining makes growing delicate feet breath.
It comes in the size and prize range of 5-10 (RS. 149-162).
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With Action's Roaming youth wear range, become a trend-setter and make waves.
Have your pick today from its complete range of fashionable quality slippers, sandals
and sports shoes, in the most economical price. The light upper is made of PU, tetron
and breathable mesh for extra comfort. The PVC sole gives extra grip adding mileage
to your dynamic life. Mileage, trendy, comfortable as well as its breath taking
economical price, makes Roaming the most sought after brand by young people. Its
comes in size and prize range of 6-10, 11-1, 2-5 (Rs. 199-399) for kids, 11-13, 1-5
(Rs. 347-462) for children and 6-10 (Rs. 487-699) for gents.
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Fly float is a range of trendy and economical sandals and slippers for leisure use for
both men and women. Home, picnic or shopping, Fly float light weight, is ideal for all
kinds of leisurely occasions. The imported synthetic leather upper gives it a classy
look and the inside of the upper sole is made up of suede, funky mesh and P.U. latex,
giving it extra comfort. This high quality range comes in Velcro fitting to suit every
foot. The sole with micro expanded granules with air technology, gives maximum
comfort to your feet and more mileage. It comes in size and prize range of 2-5, 6-11
(Rs.299-383)
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Action's Chanchal brand epitomizes simplicity, a range of winter foot wear for ladies.
Ideal for daily wear, Chanchal is comfortable and durable. Soft textile fabric upper
and soft lining hugs your feet, giving the warmth and cozy feel. The soft PVC sole
give extra protection to your heels and are long-lasting, making it an ideal daily
footwear. It comes in a variety of designs and floral colours that adds to a woman's
femininity. It comes in the size and prize range of 11-2, 3-8 (Rs. 137-173)
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Flotter is a new class of super comfort, stylish, lightweight and cushioned sandals and
slippers manufactured by Action. These are made from Synthetic uppers and PVC
sole for giving you an unforgettable comfort and durability. A special air cushion has
been provided in the insole so that you can walk more. Available in both ladies and
gents, Flotter hydro walk is available in different colors and styles. It comes in the
size group of 6-11 and has been priced in the range of Rs.125 to Rs.450.
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Action's Eazy line is a range of comfortable routine and household footwear for both
ladies and gents. Bring style home with Action's Eazy line ranges. The synthetic
fabric upper make it in vogue, trendy and comfortable. PVC materials use in the shoes
makes it highly durable and wash resistant. The Eva guard sole makes it slip resistant
making it the most sought after home footwear. It comes in the size range of 11-1, 2-
5 for kids, 4-8 for ladies, 6-11 for gents.
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BRAND ENDORSES
At Action group we constantly strive to create, maintain, protect and enhance the
brands. Our challenge is to develop a deep set of positive associations for the
brand.Our objective is not only to have a fairly high degree of .........
BRAND AWARENESS, but to move to ACCEPTABILITY PREFERENCE
Finally, BRAND LOYALTY
In order to achieve all these stages and to achieve higher attention & recall, Action
group often uses celebrities as spokespeople or endorsers.
Our brand have been associated with the world known celebrities like KAPIL DEV,
SACHIN TENDULKAR and so on is the list of different celebrities of different fields
including Indian Cinema like AJAY JADEJA, AMRISH PURI, APOORVA
AGNIHOTRI, AMAN TALWAR, RENUKA, PALLAVI JOSHI etc
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STORE CONCEPT
A new concept of exclusive showrooms has been introduced in the market by the
company to match the individual demand of the customers.
Convenience and variety is the general concept behind opening these stores. Keeping
in view the demand that varies from customer to customer and possibility of every
retailer to keep the complete range of footwear at all times, Action came up with this
idea of exclusive showrooms. This idea has not only given the company a chance to
provide the complete array of shoes to the customers but has also given salesman an
opportunity to interact with them on a personal level. These inputs of the customers
helps tremendously in new product innovations.
The first of its kinds was started in 1999 and after experiencing the tremendous
response the number of these stores have been increased to around 70.
Plans are on the anvil to open more than 200 showrooms by the year 2007.
FRANCHISING OFFER
Shape up your dreams with Action Exclusive showroom.
Low risk ,Profitability ,Respectability
Franchising is a way of doing business. A concept to promote mutual benefits. With
the opening of the economy the environment of franchising has caught on the new
market scenario. Today customers are getting more and more conscious about the
quality and the status-quo standards of the product they buy. The Customers of the
new millennium wants to buy branded and quality products from mega stores where
they do not have to worry about anything.
Action shoes, a business conglomerate of repute with a mega shoe brand "ACTION"
beckon you to grab this fortune.
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With your vast inherent entrepreneur talent and keen business acumen you can also
provide customers a shopping pleasure of global standards being the proud owner of
an ACTION super store.
All you need to have is an area of 800 to 1000 sq.ft. in the hub of your city, capability
to invest 12-15 lakhs and business acumen and you will soon become a millionaire.
What more you will get the return on your initial investment within 12-18 months.
You can yourself imagine the potential of the golden opportunity to rake in big bucks
and being the proud owner of Action store.
So what are you waiting for, opportunities don't knock twice
CORPORATE PORTFOLIO
We bring to you an opportunity to design and tailor your shoes to your taste and
need.
For more than 30 years Action has been manufacturing top quality footwear and its
components for the domestic and export markets. Having pioneered the development
of footwear range from casuals to formals, from daily wear to sports wear and from
elegant collection for ladies to fun range for kids, Action now operates a specialized
technology and research driven 'CORPORATE SALES' division which caters to
the variant needs of institutional segments. Corporate division of Action shoes
manufactures a full range of shoes i.e. (Safety boots) with Steel toe and Fibre toe-
cap for Industrial workers, comfort, sturdy and Heat/Cold resistance shoes for
Military, Navy & Police, oil resistant and anti skid shoes for working in
professional Kitchens and water resistant and anti- fungal shoes for Miners. It is
the policy of our Corporate Division to listen to your your needs & specifications
assess the communication points at both the ends, develop a detailed but concise
survey instrument, gather customer perspectives and then finally develop and deliver
high quality products and services meeting the customer requirements from time to
time. We have our R&D department with well-qualified professionals in diverse
streams who constantly research and develop new products. Our long-term
experience, services and quality are evident in every product we create to perfection.
We are able to manufacture products as per client's specifications with the Shortest
Lead Time and the Highest Quality. Our clientele includes… Asian Paints, Asashi
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India Glass, Jet Airways, Hindalco Industries, Maruti Udyog Ltd, Samsung India Ltd,
Indian Army, Indian Air Force, Delhi University, Park Royal, Parle Biscuits, Mother
Diary, Hyatt Regency, Le- Meridian and many more.
Sole Division
Action has a diversified segment on sole manufacturing completely dedicated in
making world-class soles. Action has made a name in manufacturing high quality PU
and TPR soles in domestic as well as international market. It has always been a
pioneer in research and development of new materials and styles in order to best meet
the ever- changing market demands. Action Sole division has a team of dedicated
researchers who are in constant endeavor to develop the best technology on soles that
fulfills the need and requirement of every end user. Action soles have double density
polyurethane with excellent abrasion resistance, zero oil migration, best slip
resistance, very high flexing property at subzero temperature and extra high tensile
strength, excellent cushioning and comfort due to its compact foaming and lightness.
This makes our soles both incredibly durable and surprisingly lightweight.
Best of all, the soles are also made according to our clients specifications. Our
excellent production capabilities, guarantee prompt delivery of every order in addition
to designing new molds within the shortest lead time after receiving the order. We
continually concentrate our efforts on attracting and maintaining world-class talent,
46
producing high quality products and above all delivering customer satisfaction. We
present a comprehensive collection of premium quality PU and TPR Soles for men
and women's casual & formal footwear. Available in a variety of designs and sizes
Ladies (35 - 41) and Gents (5 - 11), it comes in the price range from (Rs. 75 - Rs. 170)
for ladies and (Rs.80 - Rs 180) for gents. Some of our esteemed national and
international clients are…. CLARKS, BATA, LIBERTY, PONDS, FRANCO
LEONE, HIKER, JOSEPH SIEBEL etc.
ANATOMY OF THE SHOE
The anatomy of a shoe can be divided in an upper and lower (or bottom part).
Sections of the upper include vamp, quarter, toe box, throat, insole board, and top
line. The sections of the lower shoe consist of an outsole,shank and heel.
THE UPPER OF THE SHOE
All parts or sections of the shoe above the sole that are stitched or otherwise joined
together to become a unit then attached to the insole and outsole. The upper of the
shoe consists of the vamp or front of the shoe, the quarter i.e. the sides and back of the
shoe, and the linings. Uppers are made in a variety of different materials, both natural
and synthetic. Leather upper allows air to pass through to and from the skin pores
thereby providing an opportunity to keep the feet, cool. Ironically synthetics used as
uppers display elastic properties, which mean the shoe upper never quite adjusts to the
foot, shape in the same way as natural leather. Synthetics are cheaper to mass-produce
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and are now found in most mass produced footwear. Synthetic uppers are more
waterproof. Woven fabric such as cotton corduroy can be used as uppers.
VAMP
The vamp covers the dorsum of the foot (includes the tongue piece) and superior
aspects over the toes. This section i.e. the toe puff is reinforced which serves to give
the shoe its shape as well as protect the toes. The vamp is often made of more than
one piece, creating a decorative pattern. There are various types of vamps suited to
different styles of shoes.
QUARTER
The complete upper part of the shoe behind the vamp line covering the sides and
backpart. The top edge of the sides and back of the quarter describes the topline of the
shoe. Oxford style lacing shoes, the eyelet section is formed by the superior part of
the quarter (while the underlying tongue is part of the vamp). In the Gibson style the
lacing segment forms part of the vamp. The heel section of the quarter is frequently
reinforced with a stiffener. In boots the quarter is often referred to as 'top'. In athletic
shoes the vamp and quarter panels are often one continuous piece of nylon or leather
with additional leather pieces added to reinforce critical areas of the shoe.
COUNTER
The counter is a component of the quarter that stabilises the hindfoot in the shoe and
retains the shape of the posterior portion of the shoe. Counters are usually made from
fibreboard or heat moulded plastic. Sometimes a counter will extend medially to
support the heel and prevent prolonged pronation.
TOECAB
Many shoes incorporate a toecap into the upper of the shoe. Toecaps are either
stitched over or completely replace the distal superior aspect of the vamp and can be
made into a decorative features referred to as toe tips. The toe box refers to the roofed
area over and around the part of the shoe that covers the toes. The function of the toe
box is to retain the shape of the forefoot and allow room for the toes.
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LININGS
In quality shoes the quarters and vamps are lined to enhance comfort and durability.
Linings may consist of various materials ie leathers, fabrics, and manmade synthetics.
The lining on the insole segment is called 'the sock' and may be full-length, three-
quarter or just the heel section. Many linings are made of synthetic material and are
usually confined to the quarters and the insock.
THROAT
The central part of the vamp just proximal to the toe box. The throat is formed by the
seam joining the vamp to the quarter i.e. throatline. The throat is defined by the
connection of the rear edge of the vamp and the front part of the quarter. This refers to
the point where the lacing is attached to the vamp. The throat of the shoe dictates the
maximum girth permitted by the shoe.
THE SOLE OF THE SHOE Insole (inner sole)
A layer of material shaped to the bottom of the last and sandwiched between the
outsole (or midsole) and the sole of the foot inside the shoe. The insole covers the join
between the upper and the sole in most methods of construction and provides
attachment for the upper, toe box linings and welting. This provides a platform upon
which the foot can operate and separates the upper from the lower. The majority of
insole boards are made of cellulose and are treated with additives to inhibit bacterial
growth.
OUTSOLE
This is the outer most sole of the shoe, which is directly exposed to abrasion and
wear. Traditionally made from a variety of materials, the outsole is constructed in
different thickness and degrees of flexibility. Ideal soling materials must be
waterproof, durable and possess a coefficient of friction high enough to prevent
slipping.
SHANK
The shank bridges between the heel breast and the ball tred. The shankpiece or shank
spring can be made from wood, metal, fibreglass or plastic and consists of a piece
49
approximately 10cm long and 1.5 cm wide. The shankpiece reinforces the waist of the
shoe and prevents it from collapsing or distorting in wear. The contour of the shank is
determined by heel height. Shoes with low heels or wedged soles do not require a
shank because the torque between the rear and forefoot does not distort the shoe.
HEEL
The heel is the raised component under the rear of the shoe. Heels consist of a variety
of shapes, heights, and materials and are made of a series of raised platforms or a
hollowed section. The part of the heel next to sole is usually shaped to fit the heel, this
is called the heel seat or heel base.
Shoe Lasts Most shoes are made to a last. This is a foot model with dimensions and
shape similar to the anatomical foot but sufficiently different to not be exact. Shoe fit
and to some extent the last influences its durability.
Traditionally made from wood but are now available now in metal or plastic. Lasts
are not the same size and dimensions of the anatomical foot but instead an abstract
form with specific functions. Lasts provides a working surface on which flat leather
components can be given plastic form. To allow the last to be removed from the shoe
they are often hinged around the instep.
Shoe lasts are not made to resemble feet but instead to suit the shoe manufacture.
Modern lasts are totally unlike the foot with the sole of the last, flat in order to assist
in manufacture.
1.3 PROBLEMS FACED BY THE COMPANY
Action shoes is a 24 year old shoes company presently leads by Director H.K.
AGRAWAL, The brand 'ACTION ' has been able to maintain its aura of exclusivity
50
and distinction since its first pair of non-formal sporty shoes hit the stores. It
continues to be the most preferred brand in India. With the growing popularity,
proliferation comes along. The company has elaborated the brand concept by
launching a variety of sub-brands and shoes to suit different occasions. The new
products were coined with attractive catchword, thus helping the customers finding
the right shoes.
Action shoes also had brand ambassadors sport stars and film stars like master
blaster Sachin Tendulkar, Amrish Puri, Kapil Dev and many more. “After being a
strong player in the shoes market it started losing their market share after the arrival
of international players like Reebok, Nike, Adidas etc who are big financial bodies &
have large branding budget, better technology & new innovative designs than action
group. An action shoe is old company & market is aware of its premium brand
“Campus shoes”, but due to heavy competition recall rate of this brand comes down”.
Reasons are simple; brand promotion of their product is not up to the
competition & designs are not up to the market requirement and many other reasons
like Cannibalization, not proper justification with product pattern, style & it’s
branding, due to which there is decrease in sales.
If action shoes promote their product properly then it is easy for an old
company to win the faith of market again that they are best in their business. As
Campus shoes are old player of sports shoes people will strongly believe on Campus
product. For the strong branding if Campus shoes produce specialize products for
sport like Long tennis, Badminton, Basket ball, Cricket etc. this will create new
market for Campus & will generate a professional & big brand image in customers
eyes. By doing so company will became full market Coverage Company in sports
shoes.
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1.4 COMPETITORS INFORMATION
REEBOK
Reebok International Limited is a British producer of athletic footwear, apparel,
and accessories and is currently a subsidiary of Adidas. The name comes from
Afrikaans/Dutch spelling of Reebok, a type of African antelope or gazelle. The
company, founded in 1895, was originally called Mercury Sports but was
renamed Reebok in 1958. The company's founders, Joe and Jeff Foster.
ADIDAS
Adidas Ltd. AG is a major German sports apparel manufacturer and part of the
Adidas Group, which consists of Reebok sportswear company, Taylormade golf
company, Maxfli golf balls, and Adidas golf. The company is the second largest
sportswear manufacturer in the world. Adidas was founded in 1948 and named
after its founder, Adolf (Adi) Dassler
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NIKE
Nike, Inc. is a publicly traded sportswear and equipment maker based in the
United States. The company is headquartered in the Portland metropolitan area of
Oregon, near Beaverton. It is the world's leading supplier of athletic shoes,
apparel and sports equipment with revenue in excess of $16 billion USD in 2007.
As of 2008, it employed over 30,000 people world-wide. Nike is the only Fortune
500 company headquartered in the state of Oregon.
PUMA AG
Puma AG Rudolf Dassler Sport (Puma) is a large German-based
multinational company that produces high-end athletic shoes and other sportswear.
The company is perhaps best known for its football shoes and has sponsored such
international football stars as Pelé, Johan Cruijff, Enzo Francescoli, Diego Maradona
and Lothar Matthäus. In the United States, the company is probably best-known for
the suede basketball shoe it introduced in 1968, which eventually bore the name of
New York Knicks basketball star Walt "Clyde" Frazier. Puma is the third largest
sportswear manufacturer in the world behind Nike and Adidas. The company also
offers lines shoes and sports clothing, designed by Lamine Kouyate, Amy Garbers,
and others.
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1.5 SWOT Analysis
STRENGTHS
1. Existence of more than sufficient productive capacity in tanning.
2. Easy availability of low cost of labour.
3. Exposure to export markets.
4. Managements with business background become quality and environment
conscious.
5. Presence of qualified leather technologists in the field.
6. Comfortable availability of raw materials and other inputs.
7. Massive institutional support for technical services, designing, manpower
development and marketing.
8. Exporter-friendly government policies.
9. Tax incentives on machinery by Government.
10. Well-established linkages with buyers in EU and USA.
WEAKNESSES
1. Low level of modernisation and upgradation of technology, and the integration
of developed technology is very slow.
2. Low level of labour productivity due to inadequate formal training / unskilled
labour.
3. Horizontal growth of tanneries.
4. Less number of organised product manufacturers.
5. Lack of modern finishing facilities for leather.
6. Highly unhygienic environment.
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7. Unawareness of international standards by many players as maximum number
of leather industries are SMEs.
8. Difficulties in accessing to testing, designing and technical services.
9. Environmental problems.
10. Non availability of quality footwear components
11. Lack of fresh investment in the sector.
12. Uneconomical size of manufacturing units.
13. Competition among units vying for export orders leading to undercutting.
14. Little brand image.
OPPORTUNITIES
1. Abundant scope to supply finished leather to multinationals setting up shop in
India.
2. Growing fashion consciousness globally.
3. Use of information technology and decision support software to help eliminate
the length of the production cycle for different products
4. Product diversification - There is lot of scope for diversification into other
products, namely, leather garments, goods etc.
5. Growing international and domestic markets.
6. Exposure to newer markets through Fairs/ BSMs
7. Retain customers through quality supplies and timely deliveries
8. Aim to present the customer with new designs, infrastructure, country &
company profiles.
9. Use of modern technology
10. Exhibit strengths in manufacturing, for example, strengths in classic shoe
manufacturing, hand crafting etc.
55
11. De-reservation of the footwear sector.
56
THREATS
1. Entry of multinationals in domestic market.
2. Stiff competition from other countries.(The performance of global competitors
in leather and leather products indicates that there are at least 5 countries viz,
China, Indonesia, Thailand, Vietnam and Brazil, which are more competitive
than India.)
3. Non- tariff barriers - Developing countries are resorting to more and more non
– tariff barriers indirectly.
4. Improving quality to adapt the stricter international standards.
5. Fast changing fashion trends are difficult to adapt for the Indian leather
industries.
6. Limited scope for mobilising funds through private placements and public
issues, as many businesses are family-owned.
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CHAPTER-2
RESEARCH METHODOLOGY
58
2.1 STATEMENT OF PROBLEM:
To study the perception, buying behaviour and satisfaction of preferred brand among
consumers for footwear.
2.2 OBJECTIVES SCOPE OF THE STUDY
The project was undertaken keeping the following objectives in mind:
To study and analyze various factors affecting the buying behavior of the
consumer while purchasing Action shoes.
To find out the reasons of consumer buying preference of Action over other
brands.
To compare various attributes of Action and other brands.
2.3 RESEARCH METHODOLOGY
RESEARCH DESIGN:
Here we followed descriptive and diagnostic research Study method
RESEARCH APPROACH: Survey approach
SAMPLE SIZE: Finite number of sample has been chosen that is 100
SAMPLE: Markets, Malls, Residential areas...
EXTENT: North Delhi
SAMPLING TECHNIQUE: Convenience sampling
RESEARCH INSTRUMENT: Questionnaire
QUETIONNAIRE DESIGN: The questionnaire was based on multiple-choice
questions and dichotomous questions.
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DATA SOURCE:
Source of information: There are two kinds of sources of information i.e. primary
and secondary.
PRIMARY SOURCE
The data collected and gathered from these sources is assembled specifically for the
research project at hand. The data collected is a fresh and for the first time and thus
happened to be original in character. It is used for satisfying various marketing
research objective.
Basically there were two instruments:
1. Structured Instrument
2. Unstructured Instrument
1. Structured instruments:
(a) Personal interview: This method involved asking questions generally in a
face to face contact to potential customers (data for them was collected
initially) It was in the form of direct personal investigation .In this case the
interviewer collected the information personally from the sources concerned.
The interviewee was allowed to ask questions from the interviewer regarding
his doubts Interviews were formal or informal depending upon their nature
and the person being interviewed .Following points were kept under
consideration:
• Planning the interview
• Preparation of questions before hand
• Not to make interview hasty
• Focusing on substance
• Accuracy of subject
60
2. Unstructured Instrument: (a) Questionnaire
A questionnaire consists of a number of questions printed or typed .In a definite
order on a form or set of forms. The questionnaire was mailed to potential
customers . They were to answer the questions on their own.
Main aspects of Questionnaire:
(1) Structured questionnaire
(2) Clear and smooth moving sequence of questions
(3) Simple and easy wordings
(4) Relevant questions
All the personal details were kept confidential.
(b) Secondary sources:
The data for these sources is that which have been previously collected for some
project other than at hand. The data colleted is historical in nature .It is the data which
you don’t have collected yourself but is already available. Some of these sources are:
(a) Magzine
(b) Internal Reports
(c) Financial reports
(d) Published industry data.
Sampling Unit: The elementary units or the groups cluster of such units may form
the basis of sampling process in this case each potential customer is our sampling
unit.
Sample size : Interview 100 persons and collected data through questionnaires
Technique of sampling: 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.
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Analysis of information: The information was analyzed with the help of pie charts
and graphs to reach at conclusions. For that editing, tabulation and interpretation of
data was done.
Editing: It involves a careful scrutiny of the completed questionnaires and or
schedules. It is the process of examining the collected raw data to detect errors and
omissions and to correct these when possible.
Tabulation: It involves arranging the data in concise and logical order. It involves
summarizing raw data and displaying the same in compact form.
Interpretation: It involves drawing the ultimate interferences and reach conclusions
STEPS FOLLOWED IN COMPLETING THE STUDY
(i) Marketing books, journals are consulted.
(ii) Internet sites containing information on action shoes & marketing are
browsed.
(iii) Sample survey was conducted.
2.4 LIMITATIONS OF THE STUDY
While surveying I encounter with some problems like:
1. A survey should not involve a large sample size otherwise the findings of the
surveys cannot be generalized.
2. But a large sample size may increase the time and cost of collecting the
primary data with the help of questionnaire.
3. In some of the showrooms it is not allowed to get the questionnaire filled.
4. Many of the respondents were not willing to fill the questionnaire.
5. Some people were not willing to respond and few of them who responded
were in hurry hence the active participation was lacking. Due to which i faced
difficulties in collecting information’s regarding our questionnaire.
6. Another problem which I faced was that people were hesitating to give
information about their views freely.
62
CHAPTER-3CONCEPTUAL DISCUSSION
63
CONCEPTUAL DISCUSSION Action entered the Indian market in 1996 by setting up a 100% subsidiary of Action
called Action India Ltd. and announced its joint venture with Magnum International
Trading Company Ltd. on October 1, 1996. The new joint venture – Action India Ltd.
– was incorporated with an initial investment of Rs. 8000 million with Action India
Ltd. holding 80% of the equity and Magnum holding the balance 20%. This
investment was raised to Rs 475 million with the equity structure remaining the same.
Currently, the total investment stands at Rs. 500 Million with the equity structure
changing to 91.4% by Action and 8.6% by magnum.
Action’ Range of Products in India
A month after announcing the joint venture, Action India Ltd. launched its range of
sports footwear, apparel and accessories in New Delhi on November 1, 1996.
Subsequently, Action products were also launched in Mumbai, Bangalore, Chennai,
Hyderabad and Calcutta. Currently, Action products are available in 30 cities in India.
The range of Action products available in India include sports footwear featuring
some of the most popular innovations and technologies developed by Action such as
Feet You Wear, Torsion system and adi wear. The sports footwear available in India
includes a wide range of core categories such as adventure, basketball cricket, golf,
indoor, running, tennis, training, soccer and workout.
Action has introduced in India, a wide range of sports wear for both men and women.
These include apparel for athletics, basketball, cricket, golf, running, soccer,
swimming, tennis and training for Men. The women’s range includes apparel for
athletics, golf, running, swimming, tennis, training and workout. Accessories include
bag packs, campus bags, medium and large kit bags, caps, socks, wrist and
headbands.
Action Markets its products in India through a combination of mega exclusive stores
(area of 1000 sq. feet and above), exclusive stores, multi-brand stores and distributors.
At present, Action is available in 75 exclusive outlets out of which 34 are company –
owned with 8 new Company – owned stores planned for 2006 and in 450 multi-brand
outlets in India.
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MARKETING STRATEGY
MARKETING PHILOSPHY
The Action marketing philosophy emphasizes catering to the masses, consistently
meeting the need and aspirations of every evolving generation. Action is committed to
producing the high quality shoes to suit every walk of life. Based on our cultivated
understanding of the Indian consumer psyche, most Action offerings are in the mid -
range price segments. However, Action also manufactures variety of premium
products for those who refuse to compromise, who seek and strive beyond ordinary.
MARKET POSITIONING
Action has consistently used "COMPLETE FAMILY FOOTWEAR" positioning and
continues to use it. The company virtually makes shoes for the entire family- more
precisely-for everyone- for all occasions.
DISTRIBUTION NETWORK
To complement our philosophy of catering to every walk of life, our powerful
distribution network is mushroomed far and wide. Action has established a wide
marketing network for distributing its products in India. The extensive distribution
network, built over the years, is a major strength for Action products. Action products
are available to consumers, even in the most remote places and in the smallest of
villages with a very meager population. The distribution network comprising of
DISTRIBUTORS, WHOLESALERS, RETAILERS AND EBO's through out the
country, ensures that the customer wherever located is served efficiently. We have a
network of more than 50,000 retail outlets all over India to sell our footwear, which
is being sold through more than 500 distributors appointed by the company.
TOTAL CUSTOMER SATTISFACTION QUALITY COMMITMENT
Quality is the cornerstone of our success. Everyday, millions of people all over the
India show their confidence in us by choosing Action products.
This confidence is based on our quality image and a reputation for high standards that
has been built up over many years.
Quality is our most successful product. It is the key to our success.
65
MANUFACTURING EXCELLENCE
The concept of " QUALITY MGT " in manufacturing is aimed at continuously
improving the quality of goods and services to better meet the 'needs and expectations'
of the customers.
Intensive R & D efforts and the latest technology go into the making of Action
footwear. We are equipped with rotary pouring machines for making polyurethane
and direct injection rotary machines for double density polyurethane to make shoes.
All these machines are supplied by world-class machine manufacturers from Italy. In
these machines all processing parameters and movements of parts are controlled
through PLC and Computer, which ensures ultra high precision and consistency for
the quality of shoes and unit soles.
Great care is exercised in the selection and quality control of raw material;
pacakaging material and standards are ensured at every stage of manufacturing
process.
Quality people
Adequate equipment, procedures and systems are needed to make QUALITY; so are
involved and dedicated people.
At Action we recruit and train the best people at all levels of our organization.
At Action we motivate employees by setting challenging goals and by giving them
responsibility and recognition.
Quality must be a way of life for everyone in the company.
Quality customers
At Action we are fully responsible for maintaining quality standards. Not only
manufacturing, marketing and human resource but CUSTOMERS also have vital role
to play in maintaining quality.
Our objective is to generate and retain high customer confidence and loyalty by
delivering high customer value.
66
Maximizing value to consumers and building customer relationship are the core
endeavors at Action.
At Action customer satisfaction is both a goal and marketing tool.
SOCIAL RESPONSBILITY
Action group endorses the principles of social responsibility and recognizes our
responsibility to the environment and the community in which we operate.
These principles are central to the values of Action group and guide our business
activities. At Action group we constantly strive to be the best and responsible
corporate citizen and extends support to various social organizations.
We are able to reach out to a diverse range of families and communities, and we do it
in many different ways.
The Action group runs "Lala Muni Lal Mange Charitable Trust" since 1977.
Today it is engaged in various kinds of charitable activities. It is running an 80 -
bedded hospital at Hissar (Harayana). This hospital has been working since 1979. It
also started a day care OPD in 1984 at Daya Basti, Delhi.
To cater to the needs of pilgrims at Vrindavan, the trust built an Ashram in 1994. This
Ashram has large accommodation and a beautiful temple. This Ashram is a boon for
the widows living in different parts of Vrindavan. Over 700 widows gather in this
Ashram daily. They participate in the Bhajan organized by the Ashram daily and get
the ration and other required goods of their daily use. Many a times Lala Mange Ram,
who is the chairperson of this trust himself joins this Bhajan Samaroh and gives them
moral support.
Now Lala Mange Ram has openened Sri Balaji Action Medical Institute in Delhi.
Spread over 6 acres of land and 400 bedded hospital (out of which 100 beds are ICU
beds), mission of this trust is to set up an institute for providing world-class integrated
healthcare facilities to all sections of the society with a humanitarian touch.
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WHAT WE DO
With over three decades of experience in footwear industry, Action is synonymous
with quality shoes for the whole family-ranging from casuals to formals; from daily
wear to sports wear and from an elegant collection for ladies to a fun range for kids.
True to its name Action is always on the move to scale newer heights in footwear
designing and manufacturing. Intensive R& D efforts and the latest technology go
into the making of Action footwear.
We have in house manufacturing facilities, including modern equipments and
machineries specially procured from different countries to manufacture footwear at
par with international class and quality.
Each Action shoe is the product of a relentless quest for quality, high level of
workmanship and a true commitment to customer satisfaction. At Action we strive to
listen to the customers in their local markets and identify their footwear needs and
then provide products that exceed the customer's expectations in terms of quality,
style and value.
Hardly surprising, Action has carved a special niche in the Indian footwear market
and in the hearts of millions of its consumers through out the country.
WHERE WE LOCATED
Action is headquartered in Delhi, supported by multiple manufacturing and
development units in rest of the states like - Haryana, Himachal Pradesh and Daman
etc. A number of its executives are based in customer geographies with the express
purpose of creating and nurturing channel partners as well as customers relationship.
GENERIC GROWTHSTRATEGIS
Action group is committed to growth. To ensure that the growth is maintained along
with a competitive edge, Action group has moved vertically as well. Action group
implemented a backward integration strategy by entering into chemicals and
plastisizers business.
CHEMICAL AND PLASTISIZERS:
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We have our plant located at Daman for the manufacturing of PVC compound, DOP,
DBP, DOA, and DIDP etc. under the brand name API providing employment
opportunities in backward areas of India. This ensures the availability and quality of
supplies and helps to control the cost and improve overall profits as well. The group
has also implemented forward integration strategy by opening ACTION
EXCLUSIVE STORES all over India with the ultimate objective to realize additional
profit potential. Conglomerate Diversification Action is not only a leading brand in
footwear, but also group has made investments in various streams un-related to the
existing line of business.
MICROTEK (COMPUTER PERIPHERALS & POWER BACK UP)
Year 1986, Action in a joint venture entered into an altogether different industry.
Brand MICROTEK was launched in the Indian market. Computer monitors
(colored/mono), speakers, keyboards, mouse, motherboard, UPS, cases, spikes,
suppressor etc. are manufactured under this brand name. Later on the company
extends its product line and goes into the making of INVERTERS and makes it
presence in the power back up segment also. Five manufacturing plants, more than 20
branch offices, 250 distributors and over 2500 strong dealers besides its own
showrooms, MICROTEK is the country’s largest computer peripheral and inverter
manufacturer. Microtek manufacturing facilities have been awarded ISO 9002
certification. The entire customer support activity is also ISO 9002 certified.
OKAYA (AUTOMOTIVE AND INDUSTRIAL BATTERIES)
Arrow International” has been promoted by multi crore ‘Microtek’ to give to the
Indian consumers OKAYA world class Japanese Technology batteries. Batteries for
all kind of cars, automobiles, heavy-duty trucks, motorcycles, telecommunication
systems, electric utilities etc are produced under the Brand name OKAYA. The Co.
enjoys UL CERTIFICATION, the ISO 9001:2000 by UNDERWRITERS
LABORATORIES INC. USA. The company caters to both replacement market and
original equipment customers.
SUN CITY (HOUSING AND COMMERCIAL PROJECTS)
Another joint venture is in the REAL ESTATES under the name SUN CITY
PROJECTS which is being promoted by three distinguished groups ACTION, ESSEL
69
(Zee Networks) and ODEON builders. Sun City Projects emerged with a mission to
provide ‘International Quality Housing, Leisure and Entertainment’ at affordable
prices. Outcome was an integrated township spread over 150 acres of land. Sun City
is also coming up with ‘North Square Mall’ (North Delhi) and ‘Cross River Mall’
(The biggest in East Delhi) with a new vision but the same mission “Affordable
International Standard Retail Spaces”.
SRI BALAJI ACTION MEDICAL INSTITUTE (HEALTH CARE)
Action group has also stepped into the HEALTH CARE sector and has recently
opened Action Medical Institute in Delhi. Spread over 6 acres of landscaped
sprawling grounds with 3 lacs square feet of centrally air - conditioned built up area,
mission of the group is to set up an institute for providing - world class integrated
health care facilities to all sections of the society with a humanitarian touch, whilst
maintaining high standard of ethical practice and professional competency with
emphasis on training and education leading to research. With a center of excellence in
Cardiology, Pediatric, Gynecology, Nephrology, Gastroenterology and Orthopedics,
the Institute with over 25 medical specialties and 400 beds will serve as a referral
hospital for Delhi and adjoining areas.
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CHAPTER-3
DATA ANALYSIS AND FINDINGS
71
Ques.1 Which brand do you prefer?
BRAND FREQUENCY PERCENTAGE
LIBERTY 14 14
ACTION 39 39
BATA 13 13
RED TAPE 14 14
ANY OTHER 20 20
Figure 5. Brand Preference
Interpretation:-
The above data shows that out of 100 target market around 23% of people prefer
Action shoes, 14% prefer liberty, 21% Bata, 14% Red Tape and 31% prefers other
brands like Reebok, Nike, Action, etc.
72
Ques.2 Are you satisfied with the quality of preferred brand?
OPTION FREQUENCY PERCENTAGE
YES 94 94
NO 6 6
Figure 6. Quality satisfaction percentage
Interpretation:-
Around 94% of consumers were satisfied with the quality of their preferred brand
while 6% of consumers who were not satisfied with the quality of brand they were
using and were even not aware of the presence of all the various brands they can
consider.
73
Ques.3 Are you satisfied with the price range of preferred brand?
OPTION FREQUENCY PERCENTAGE
YES 62 62
NO 24 24
NO COMMENTS 14 14
Figure 7. Price Range
Interpretation:-
Nearly24% of people are not satisfied with the price range at which the various
footwear companies are offering their products. Few of the consumers search for the
better price and designs while the others search for less price durable shoes or
footwear. 62% of the the customers are satisfied with the price range at which the
companies offer their products while 14% didn’t liked to give any comments on the
price range of their preferred brand.
74
Ques.4 Which of the factor you consider important for preferred brand?
FACTORS FREQUENCY PERCENTAGE
COMFORT 57 57
DURABILITY 18 18
VARIETY 19 19
ANY OTHER 6 6
Figure 8. Important factors for brand preference
Interpretation:-
From the sample size of 100, 23% of consumers are the customer of Action shoes.
Among them majority of the users said that the comfort level of Action shoes is
excellent followed by durability and variety of the shoes.
75
Ques.5 Do you normally switch over the brands?
OPTION FREQUENCY PERCENTAGE
YES 57 57
NO 43 43
Figure 9. Brand switch..
Interpretation:-
From the above data it’s clear that most of the consumers are loyal towards the brand
they opt. And 43% of people prefer to change over the brands more frequently.
Focussing Action shoes than around 57% of customers of Action are loyal towards
the brand and are even not at all willing to switch over the brand.
76
Ques.6 Does advertising play any role in selection of brands of shoes?
OPTION FREQUENCY PERCENTAGE
YES 62 62
NO 38 38
Figure 10. Role of advertisements
Interpretation:-
Around 62% of consumers are in support of advertising and firmly believe that their
selection decision or preference is influenced by the advertising. While 38% were
against the advertising and said that they go for the products only if they are available
with reasonable cost and are available in wide variety.
77
Ques.7 Which form of advertising media do you think is more effective?
MEDIA FREQUENCY PERCENTAGE
PRINT 14 14
T.V. 78 78
RADIO 8 8
Figure 11. Advertising media preference
Interpretation:-
For judging the effectiveness of various forms of advertising media like Television,
Radio, Print media. The consumer were asked about the most effective source and the
above data reveals that around 78% of consumers consider television as a better
media to make the customers aware with the brands while 14% consider print media
and remaining 8% polls for Radio.
78
Ques.8 What kind of promotional tool do you prefer?
PROMOTIONAL
TOOL FREQUENCY PERCENTAGE
LUCKY COUPON 26 26
DISCOUNT 70 70
FREE GIFTS 4 4
Figure 12. Promotional tool preference
Interpretation:-
The above table shows that around 70% of consumers strongly prefer discounts as a
promotional tool. And maximum time of year their buying decisions are even
influenced with the discount season of the market. And remaining 26% and 4% prefer
lucky coupon and free gifts respectively.
79
Ques.10 Do you think weight is the factor for choosing preferred brand?
OPTION FREQUENCY PERCENTAGE
YES 73 73
NO 27 27
Figure 13. Weight as factor in selection of footwear
Interpretation:-
The above data reveals that approximately 73% of customers are price conscious. And
for remaining 27% of customers price plays a less prominent role in selection of
shoes.
80
Ques.10 Does the cost of shoes affect your purchasing choice?
OPTION FREQUENCY PERCENTAGE
YES 54 54
NO 46 46
Figure 14. Influence of price in selection of footwear
Interpretation:-
The above data reveals that for 54% of customers the purchasing choice is effected by
the cost of the footwear. Their purchasing decision is influenced by the cost of the
product for maximum times. While if considering the remaining 46% of customers,
their decision is rarely influenced by the cost of the products and mostly like to go for
the variety and design without considering the cost.
81
Ques.11 How often do you shop?
DURATION FREQUENCY PERCENTAGE
A WEEK 11 11
IN A MONTH 36 36
IN 3 MONTHS 16 16
OCCASIONALLY 37 37
Figure 15. Duration of shopping
Interpretation:-
The above table shows the shopping durations of people for purchase of footwear.
Basically the shopping duration depends upon the size and size and weight of the
product. But majority of people purchase these goods on the duration of 3 months. At
present time 16% of the customers goes to purchase the product in a duration of
3months. At the same time around 37%of customers goes to purchase the shoes
occasionally, while the remaining 36% of customers who are fashion conscious and
as well as brand conscious goes to purchase the pairs at a duration of month.
82
Ques.12 Are you brand conscious?
OPTION FREQUENCY PERCENTAGE
YES 55 55
NO 45 45
Figure 16. Brand consciousness
Interpretation:-
The above table shows the brand consciousness of the common customers. On the
basis of the above table, at present time around 55% of customers are brand conscious
and the remaining 45% are not brand conscious. They like to go for the designs and
variety and keep on switching to various brands.
83
Ques.13 What more you want from preferred brand?
The feedback from the customers shows that large number of the customers of age
group 15yrs to 30yrs search for the design, variety and range of footwear at
reasonable rates. While customers falling under the age group of 25yrs and above
search for the comfortable, durable as well as cost effective range of footwear. So the
companies can focus their goals or objectives towards providing the wide range and
variety in footwear that is easily available for a reasonable range, which will gradually
make them to satisfy the customers and thereby gain the market share and customer
confidence in them.
PRESONAL DETAILS:
AGE Frequency
Less than 20yrs 35
20yrs-25yrs 31
25yrs-30yrs 19
30yrs and above 15
Figure 17.
84
CHAPTER-5CHAPTER-5
FINDINGS ANDFINDINGS AND RECOMMENDATION RECOMMENDATION
85
5.15.1 FINDINGS FINDINGS
1. Action’s vision is to remain a leader in Indian footwear industry. The
company will continue to produce the quality products that have been
provided in the past.
2. Action will continue to meet the ever-changing needs of the customers,
through product innovation.
3. Action despite being one of the most popular brand has not really caught the
Indian market. It has still to capture the southern market of the country.
4. Action will continue to focus on making the strong effort on price leadership.
It will serve both the high-income and middle-income group of the society.
5. Branded sports shoes mainly targeted to youth who are fun loving extrovert
and enthusiastic.
6. Sports shoes are now not only for sports in India, this has now matter of style
and fashion.
7. Most of the customers have full faith on the quality of the brand and they
don’t find any problem in this.
8. Considering the price aspect of the footwear then there remains abundance
scope for companies to capture the market, with low range and variety
footwear.
9. While purchasing the decision for purchase is influenced by price, for the
maximum numbers of customers.
10. The customers like to go for quality footwear within a cost effective range.
11. The companies can even go for building customer loyalty by satisfying the
customers in the best possible manner.
86
5.25.2 RECOMMENDATION RECOMMENDATION
1. India customers are price sensitive so in order to increase sale some lucrative
offer like discount since majority of customers have favored this promotional
tool, should be introduced.
2. There should be no play with quality in order to reduce price since majority
care about quality more than price.
3. Customers want to associate themselves with the brand and they don’t feel
more impact of celebrities on her buying decision. So there is fewer need of
going for ad involving high profile celebrity. In stead some favorable should
be done directly to the customer.
4. Purchasing power of Indian customers is going up so it need to expand
geographically.
87
CHAPTER 6CHAPTER 6
CONCLUSION CONCLUSION
88
CONCLUSION
Youth prefers visit to get knowledge about the product. They also acquire
knowledge through other means like TV commercial, Print media, Internet etc
Branded footwear companies can even go for advertising their new product
launch through the most preferred media like television and print media
(newspapers and magazines, etc.) Buyers are rational and they search a lot
before buying a shoe. They also get influenced by some opinion leader and
also play as opinion leader.
Customers want quality that is bundle of benefits and they switch brand
mainly because of price and offer. And finally the feedback from customers
revealed that they like to have variety in footwear, with some new designs and
colour combinations. Considering the views of many of the customers, they all
like to go for quality and durability at even slightly higher costs.
So winding up with the market, there lays abundant scope for companies to
capture the untapped sectors like those of middle income group and lower
income group. There even lies the wide scope for capturing the brand
conscious people who like to go for quality, variety, design, durability at even
higher costs.
89
BIBLIOGRAPHYBooks:
KOTLER PHILIP,MARKETING MANAGEMENT,( EDITION 2005).
RAMASWAMY V.S AND NAMAKUMARI S, MARKETING
MANAGEMENT
( SECOND EDITION).
RAVICHANDRAH.N, COMPETITION IN INDIAN INDUSTRY.
Web Siteshttp://www.adidas.com
http://www.indiainfoline.com
http://www.webcrawler.com
http://www.indiatimes.com
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ANNEXURE
QUESTIONNAIRE
Ques.1 Which brand do you prefer?
LIBERTY
ACTION
BATA
RED TAPE
ANY OTHER
Ques.2 Are you satisfied with the quality of preferred brand?
YES
NO
Ques.3 Are you satisfied with the price range of preferred brand?YES
NO
NO COMMENTS
Ques.4 Which of the factor you consider important for preferred brand?
COMFORT
DURABILITY
VARIETY
ANY OTHER
Ques.5 Do you normally switch over the brands?
YES
91
NO
Ques.6 Does advertising play any role in selection of brands of shoes?
YES
NO
Ques.7 Which form of advertising media do you think is more effective?
T.V.
RADIO
Ques.8 What kind of promotional tool do you prefer?
LUCKY COUPON
DISCOUNT
FREE GIFTS
Ques.10 Do you think weight is the factor for choosing preferred brand?
YES
NO
Ques.10 Does the cost of shoes affect your purchasing choice?
YES
NO
Ques.11 How often do you shop?
A WEEK
IN A MONTH
92
IN 3 MONTHS
OCCASIONALLY
Ques.12 Are you brand conscious?
YES
NO
Ques.13 What more you want from preferred brand?
93
