A study on Consumer buying behavior towards Branded and Non Branded readymade garments in Ludhiana

Final Research Project Report

Submitted to Punjab Technical University, Jalandhar in partial fulfillment of the requirement of the degree of

Bachelor of Business Administration

By Vaani Student (BBA) Roll No: 81501320261

Department of Business Management Punjab College of Technical Education, Ludhiana 2008-2011

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PREFACE

In this Era of Globalization and Liberalization of the Economy, business practices are in the process of getting modified at greater speed with the change in the policies and procedures of government. In the context, business education is also witnessing great transformation which strikes for excellence to meet the global standards so that our new managers are not only able to feel the pulse of those changes but may also be able to get them absorbed to do the right things at a right time .therefore Finance plays a very potent force in an organization to achieve its endeavor. I have taken my project report Consumer buying behavior regarding branded and non -branded readymade garments in Ludhiana. Hope this report will prove to be an indispensable companion for all those who are concerned & who are in any way interested in the subject matter of this report.

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CERTIFICATE-I

This is to certify that the thesis/dissertion entitled, Consumer buying behavior towards Branded and Non branded readymade garments in Ludhiana submitted for the degree of bachelor of Business Administration (BBA), in the Major specialization in Marketing from Punjab Technical University, Jalandhar, is a bonafide research work carried out by Vanisha, student of BBA, under my supervision and that no part of this thesis has been submitted for another degree. The assistance and help received during the course of investigation have been fully acknowledged.

______________ Mr. Pankaj Maini (Major Advisor)

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ACKNOWLEDGMENTI express my sincere gratitude and indebtedness to my Major Advisor Mr. Pankaj Maini, Faculty, Department of Business Management, Punjab College of Technical Education, Ludhiana for their ever willing and constant encouragement in exploration of my present investigation and preparation of the project. I am also thankful to members of Advisory Committee and other faculty members of the department for their unending support and guidance. I would fail in my duty if I do not acknowledge the blessing of almighty God and the efforts of my friends whose tremendous support and inspiration cannot be explained in words. I am equally thankful to my respondents and all those who made the completion of study possible.

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CHAPTER NO. 1 Introduction:-

CHAPTER NAME

PAGE NO.

1-17

2 3 4 5

Title and Objectives Need and Scope Limitations

18 18-19 19 20-23 23-26 27-40 41-43 41-42 42 43 44

Review of literature Research methodology Analysis and interpretation Summary and Conclusion (i) Results and Findings (ii) Suggestions (iii) Conclusion Bibliography Annexure Questionnaire

45-47

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TABLE INDEX

Table no. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10.1 4.10.2 4.10.3 4.10.4 4.11

Table descriptionNumber of people like to do shopping Number of people like to do shopping through various places Frequency of visits Number of people who are brand conscious Number of people buy different brand of cloths Number of people prefer a particular brand or company Number of people thinks brand is a status symbol Number of parameters which effects consumer buying decision Preference of people regarding type of cloth Consideration on price while buying a cloth Consideration on design while buying a cloth Consideration on discount while buying cloths Consideration on sales promotion while buying an cloth Satisfaction of customers regarding brand/company available in the market

Page no.27 28 29 30 31 32 33 34 35 36 37 38 39 40

GRAPH INDEX6

Graph no. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10.1 4.10.2 4.10.3 4.10.4 4.11

DescriptionNumber of people like to do shopping Number of people like to do shopping through various places Frequency of visits Number of people who are brand conscious Number of people buy different brand of cloths Number of people prefer a particular brand or company Number of people thinks brand is a status symbol Number of parameters which effects consumer buying decision Preference of people regarding type of cloth Consideration on price while buying a cloth Consideration on design while buying a cloth Consideration on discount while buying cloths Consideration on sales promotion while buying an cloth Satisfaction of customers regarding brand/company available in the market

Page no.27 28 29 30 31 32 33 34 35 36 37 38 39 40

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CHAPTER-1 INTRODUCTION8

Consumer Buying BehaviorDefinition of Buying Behavior: Buying Behavior is the decision processes and acts of people involved in buying and using products.

Need to understand: Why consumer makes the purchase that the make? What factors influence consumer purchases? The changing factor in our society Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for: Buyers reactions to a firms marketing strategy has a great impact on the firms success. The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy. Marketers can better predict how consumers will respond to marketing strategies.

What influences consumers to purchase products or services? The consumer buying process is a complex matter as many internal and external factors have an impact on the buying decisions of the consumer. When purchasing a product there several processes, which consumers go through. These will be discussed below.

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Problem Recognition

Information Search

Evaluation and Selection of Alternatives

Decision Implementation

Post-purchase Evaluation

1. Problem/Need Recognition How do you decide you want to buy a particular product or service? It could be that your DVD player stops working and you now have to look for a new one, all those DVD films you purchased you can no longer play! So you have a problem or a new need. For high value items like a DVD player or a car or other low frequency purchased products this is the process we would take. However, for impulse low frequency purchases e.g. confectionery the process is different. 2. Information search So we have a problem, our DVD player no longer works and we need to buy a new one. Whats the solution? Yes go out and purchase a new one, but which brand? Shall we buy the same brand as the one that blew up? Or stay clear of that? Consumer often goes on some form of information search to help them through their purchase decision. Sources of information could be family, friends, neighbours who may have the product you have in mind, alternatively you may ask the sales people, or dealers, or read specialist magazines like What DVD? to help with their purchase decision. You may even actually examine the product before you decide to purchase it.

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3. Evaluation of different purchase options. So what DVD player do we purchase? Shall it be Sony, Toshiba or Bush? Consumers allocate attribute factors to certain products, almost like a point scoring system which they work out in their mind over which brand to purchase. This means that consumers know what features from the rivals will benefit them and they attach different degrees of importance to each attribute. For example sound maybe better on the Sony product and picture on the Toshiba , but picture clarity is more important to you then sound. Consumers usually have some sort of brand preference with companies as they may have had a good history with a particular brand or their friends may have had a reliable history with one, but if the decision falls between the Sony DVD or Toshiba then which one shall it be? It could be that the a review the consumer reads on the particular Toshiba product may have tipped the balance and that they will purchase that brand. 4. Purchase decision Through the evaluation process discussed above consumers will reach their final purchase decision and they reach the final process of going through the purchase action e.g. The process of going to the shop to buy the product, which for some consumers can be as just as rewarding as actually purchasing the product. Purchase of the product can either be through the store, the web, or over the phone. 5. Post Purchase Behaviour Ever have doubts about the product after you purchased it? This simply is post purchase behaviour and research shows that it is a common trait amongst purchasers of products. Manufacturers of products clearly want recent consumers to feel proud of their purchase; it is therefore just as important for manufacturers to advertise for the sake of their recent purchaser so consumers feel comfortable that they own a product from a strong and reputable organisation. This limits post purchase behaviour. i.e. you feel reassured that you own the latest advertised product. Types of Consumer Buying Behaviour

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Types of consumer buying behavior are determined by: Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk: Personal risk Social risk Economic risk The four type of consumer buying behavior are: Routine Response/Programmed Behavior--buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc. Limited Decision Making--buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand. Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend alot of time seeking information and deciding.Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process. Impulse buying, no conscious planning. The purchase of the same product does not always elicit the same Buying Behavior. For eg Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.

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Factors Effecting Consumer Buying Behaviour Why do we need to learn about consumer buying behavior? The simple answer is that no long can we take the customers for granted. Consumer buying behavior determines how our consumers decide to buy our product and what are the various factors responsible for this decision? Out of 11000 new products introduced by 77 companies, only 56% are present after 5 years. Only 8% of new product concepts offered by 112 leading companies reached the market. Out of that 83% failed to meet marketing objectives. What we need to understand here is why consumers make the purchases that they make, what factors influence consumer purchases and changing factors in our society The central focus of marketing is the consumer. To devise good marketing plans, it is necessary to examine consumer behavioral attributes and needs, lifestyles, and purchase processes and then make proper marketing-mix decisions. The study of Consumer behavior includes the study of what they buy, why they buy, how they buy, when they buy, from where they buy, and how often they buy. An open-minded consumer-oriented approach is imperative in todays diverse global marketplace so a firm can identify and serve its target market, minimize dissatisfaction, and stay ahead of competitors. Final consumers purchase for personal, family, or household use.

Major Factors affecting consumer buying behavior

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Consumer purchases are influenced strongly by or there are four factors. 01. Cultural Factor 02. Social Factor 03. Personal Factor 04. Psychological Factor. 01. Cultural Factor:Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class Culture:The set of basic values perceptions, wants, and behaviours learned by a member of society from family and other important institutions. Culture is the most basic cause of a persons wants and behaviour. Every group or society has a culture, and cultural influences on buying behaviour may vary greatly from country to country. Sub Culture:A group of people with shared value systems based on common life experiences and situations.Each culture contains smaller sub cultures a group of people with shared value system based on common life experiences and situations. Sub culture includes nationalities, religions,racial group and geographic regions. Many sub culture make up important market segments and marketers often design products. Social Class:-

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Almost every society has some form of social structure, social classes are societys relatively permanent and ordered divisions whose members share similar values, interests and behaviour. 02. Social Factors:A consumers behaviour also is influenced by social factors, such as the (i) Groups (ii) Family (iii)Roles and status Groups:Two or more people who interact to accomplish individual or mutual goals. A persons behaviour is influenced by many small groups. Groups that have a direct influence and to which a person belongs are called membership groups. Some are primary groups includes family, friends, neighbours and coworkers. Some are secondary groups, which are more formal and have less regular interaction. These include organizations like religious groups, professional association and trade unions. Family:Family members can strongly influence buyer behaviour. The family is the most important consumer buying organization society and it has been researched extensively. Marketers are interested in the roles, and influence of the husband, wife and children on the purchase of different products and services. Roles and Status:A person belongs to many groups, family, clubs, organizations.The persons position in each group can be defined in terms of both role and status.For example. M & X plays the role of father, in his family he plays the role of husband, in his company, he plays the role of manager, etc. A Role consists of the activities people are expected to perform according to the persons around them.

03. Personal Factors:-

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It includes i) Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life Style (v) Personality and self concept. Age and Life cycle Stage:People change the goods and services they buy over their lifetimes. Tastes in food, clothes, furniture, and recreation are often age related. Buying is also shaped by the stage of the family life cycle.

Occupation:A persons occupation affects the goods and services bought. Blue collar workers tend to buy more rugged work clothes, whereas white-collar workers buy more business suits. A Co. can even specialize in making products needed by a given occupational group. Thus, computer software companies will design different products for brand managers, accountants, engineers, lawyers, and doctors. Economic situation:A persons economic situation will affect product choice Life Style:Life Style is a persons Pattern of living, understanding these forces involves measuring consumers major AIO dimensions. I.e. activities (Work, hobbies, shopping, support etc) interest (Food, fashion, family recreation) and opinions (about themselves, Business, Products) Personality and Self concept:Each persons distinct personality influences his or her buying behaviour. Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to ones own environment. 04. Psychological Factors :-

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It includes these Factors. i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes Motivation :Motive (drive) a need that is sufficiently pressing to direct the person to seek satisfaction of the need Perception :The process by which people select, Organize, and interpret information to form a meaningful picture of the world. Learning:Changes in an individuals behaviour arising from experience. Beliefs and attitudes :Belief is a descriptive thought that a person holds about something Attitude, a Persons consistently favourable or unfavorable evaluations, feelings, and tendencies towards an object or idea.

MarketingMarketing is the process of performing market research, selling products and/or services to customers and promoting them via advertising to further enhance sales. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and creates value for their customers and for themselves. Marketing is used to identify the customer, to satisfy the customer, and to keep the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. Marketing evolved to meet the stasis in

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developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable. The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.

INTRODUCTION TO THE INDUSTRYThe Textile Sector in India ranks next to Agriculture. Textile is one of Indias oldest industries and has a formidable presence in the national economy in as much as it contributes to about 14 per cent of manufacturing value-addition, accounts for around one-third of our gross export earnings and provides gainful employment to millions of people. The textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employement generating after agriculture. Textile Industry is providing one of the most basic needs of people and the holds importance; maintaining sustained growth for improving quality of life. It has a unique position as a selfreliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing; it is a major contribution to the country's economy. This paper deals with structure, growth and size of the Indian textile industry, role of textile industry in economy, key advantages of the industry, textile industry export and global scenario and strength, weakness,opportunities. The Indian textile industry is one of the largest in the world with a massive raw material and textiles manufacturing base. Our economy is largely dependent on the textile manufacturing and trade in addition to other major industries. About 27% of the foreign exchange earnings are on account of export of textiles and clothing alone. The textiles and clothing sector contributes about 14% to the industrial production and 3% to the gross domestic product of the country.

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Around 8% of the total excise revenue collection is contributed by the textile industry. So much so, the textile industry accounts for as large as 21% of the total employment generated in the economy. Around 35 million people are directly employed in the textile manufacturing activities. Indirect employment including the manpower engaged in agricultural based raw-material production like cotton and related trade and handling could be stated to be around another 60 million. A textile is the largest single industry in India (and amongst the biggest in the world), accounting for about 20% of the total industrial production. It provides direct employment to around 20 million people. Textile and clothing exports account for one-third of the total value of exports from the country. There are 1,227 textile mills with a spinning capacity of about 29 million spindles. While yarn is mostly produced in the mills, fabrics are produced in the power loom and handloom sectors as well. The Indian textile industry continues to be predominantly based on cotton, with about 65% of raw materials consumed being cotton. The yearly output of cotton cloth was about 12.8 billion m (about 42 billion ft). The manufacture of jute products (1.1 million metric tons) ranks next in importance to cotton weaving. Textile is one of Indias oldest industries and has a formidable presence in the national economy inasmuch as it contributes to about 14 per cent of manufacturing value-addition, accounts for around one-third of our gross export earnings and provides gainful employment to millions of people. They include cotton and jute growers, artisans and weavers who are engaged in the organized as well as decentralized and household sectors spread across the entire country. The textile industry is a group of related industries which uses a variety of natural (cotton, wool, etc.) and/or synthetic fibers to produce fabric. It is a significant contributor to many national economies, encompassing both small and large-scale operations worldwide.. Subdivision of the textile industry into its various components can be approached from several angles. According to reference, the classical method of categorizing the industry involves grouping the manufacturing plants according to the fiber being processed, that is, cotton, wool, or synthetics. The modern approach to textile industry categorization, however, involves grouping the manufacturing plants according to their particular operation. Wool Scouring; 19

Wool Finishing; Dry Processing; Woven Fabric Finishing; Knit Fabric Finishing; Carpet Manufacture; Stock and Yarn Dyeing and Finishing. Traditionally, the textile industry is very energy, water, and chemical-intensive. About 60% of the energy is used by dyeing and finishing operations. Environmental problems associated with the textile industry are typically those associated with water pollution. Natural impurities extracted from the fibre being processed along with the chemicals used for processing are the two main sources of pollution. Effluents are generally hot, alkaline, strong smelling and colored by chemicals used in dyeing processes. Some of the chemicals discharged are toxic. Other environmental issues now considered equally important and relevant to the textile industry include air emissions, notably Volatile Organic Compounds (VOC). BRANDING There are many different definitions of a brand, the most effective description however, is that a brand is a name or symbol that is commonly known to identify a company or its products and separate them from the competition. A well-known brand is generally regarded as one that people will recognise, often even if they do not know about the company or its products/services. These are usually the businesses name or the name of a product, although it can also include the name of a feature or style of a product. The overall branding of a company or product can also stretch to a logo, symbol, or even design features (e.g. regularly used colours or layouts, such as red and white for Coca Cola.) that identify the company or its products/services. For example: The Nike brand name is known throughout the world, people can identify the name and logo even if they have never bought any of their products.

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However, not only is the company name a brand, but the logo (The tick symbol) is also a strong piece of branding in its own right. The majority of people that are aware of the company can also identify it (or its products) from this symbol alone. The clothing and running shoe company Adidas is well known for using three stripes on its range of products. This design feature branding allows people to identify their products, even if the Adidas brand name and logo is not present. BRANDED GOODS: A brand is the identity of a specific product, service, or business. A brand can take many forms, including a name, sign, symbol, color combination or slogan. The word brand began simply as a way to tell one person's cattle from another by means of a hot iron stamp. A legally protected brand name is called a trademark. The word brand has continued to evolve to encompass identity - it affects the personality of a product, company or service. A concept brand is a brand that is associated with an abstract concept,rather than a specific product, service, or business. UNBRANDED GOODS: An unbranded good is a good which is not recognized by a name. goods are treated as a commodity goods or cases where consumer are reluctant to make brand distinctions,for example toothpicks, cloth pins. In this stage consumer memory network consist primarily of a node identifying the product category. Such goods are often seen in developing countrie. Informaton about the product is limited to the users. So consumers are unaware about the brand.

CURRENT SCENARIO OF INDUSTRY: Under the WTO framework, exports of textile and apparel products will be quota-free and will only be based on market considerations namely product attributes, pricing, promotion such as 21

advertising, brand building and other sales promotion techniques, physical distribution - its cost and logistics decisions. Since the 90s, the WTO members have embarked on liberalisation and economic reforms programmes with a view to bring about rapid and substantial economic growth and move towards globalisation of the economy. In accordance with WTO policies, there have been substantial changes in policies such as reduction in import tariffs, binding of import tariffs, phasing out of quantitative restrictions and pruning of the negative list of imports. The new policies have substantially released restrictions on foreign investment, industrial licensing, foreign exchange controls, etc. The capital market has been opened to foreign investment, banking sector controls have been eased and private investment encouraged. The exporting community of textiles and clothing are continuously putting their effort in assessing the world trade situation beyond the quota regime, when the Multi-Fibre Arrangement (MFA) will be fully integrated into the general WTO rules and regulations. With the present strength and potential of the Indian textile industry, the question that often arises is whether India has a satisfactory world share in the textile and clothing trade. India accounts for about 21 per cent of the worlds spindleage (second largest after China), 58 per cent of the worlds loomage and 15 per cent of the worlds cotton production. India stands 11th amongst the exporting nations of apparel and clothing. However if we look at countries like Sri Lanka and Bangladesh, their export performance of textile and clothing, especially the apparel and garment exports, is more than satisfactory and impressive if compared to their industry strength. Such performance in garment exports by Sri Lanka and Bangladesh is basically due to the quota-free access given to them by the EU, the US and Canada, whereas Indias export potential is restricted by the imposition of quota from these developed nations. At present, international trade in textiles and clothing is governed by the quota regime, wherein countries like the EU, US, Canada, etc, have given quotas to different countries for different textiles and clothing products. These quotas are generally based on the historical exports to these countries and bilateral relationships. Hence despite India having a strong manufacturing base and high export potential, it does not have enough quota to these countries. On the export side, the most important development of the quota regime is the planned end of textile quotas, which may provide a safe niche to the Indian textile industry.

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WTO, with phasing out the quotas, moves towards globalisation, but the developing countries like India will face new challenges. For instance, doing away with the multi-fibre arrangements in the textile and apparel sector would only benefit those countries who had export potential, but quota restrictions stood in their way. Those countries to whom quotas provided a shield against their low competitive ability would lose out. The message for developing countries is clear. In the new environment they can only go forward through greater competitivenes. In the post quota regime, the Asian majors of textiles like South Korea, Taiwan, Indonesia, Thailand, Hong Kong, etc are expected to reap maximum benefit due to their respective positioning in the textile trade. Countries like India may enjoy very little benefit due to the overall competitiveness. With its entry into the WTO, China, too, is all set to give a very tough competition to Indias textile marketing in the European Union and in USA. When we talk of competitiveness, we should concentrate more on product quality, service quality with lower cost elements. Quality and cost competitiveness are both required for making room at the international trade scenario especially when the quota regime will be over. The qualitative issues actually have impact on the efficiency in the supply chain and business stability. Thus these are going to gain more prominence once ATC would be integrated into WTO rules and regulations. If we look at the Indian textile industry, leaving the spinning sector, the weaving and the apparel sectors are lagging behind as far as the updated machinery and technology is concerned. Indian weaving sector is dominated by traditional grey fabrics produced in handlooms and power looms. The apparel sector is largely in the small scale sector, as it does not attract big investments. This has resulted in an orthodox way of doing business, which implies that we in the apparel trade are not as professional as our counterparts and competitors. To be in the forefront and to be leaders in the textile trade during the quota free regime, the quality and cost part must be considered more seriously. This is because, more market share would move to those countries who can provide quality products at very competitive prices when the whole international market will be free for all. The quality in the textile sector is to be built into the products through quality of designs, quality of processes, quality of human resources, quality of management, quality of leadership and above all quality of strategic response to turbulent external environment despite which businesses are expected to perform the world over. Therefore, to survive in such an environment

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we need to go for modern technology and should emphasise on the quality of finished products. The government should emphasise and introduce the global quality standards like ISO 9000 and ISO 14000 in the production of textile products. In the post quota scenario, it will become important that our industry focus more on the production of fine quality processed cloth. A major portion of good quality yarn should be utilised domestically in the organised mills sector for the production of high value-added fabric of better quality. And then later this fabric should be used in the production of garments. As garments provide the highest value-added product among the textile items, maximum focus should be towards the units producing garments. A market-oriented strategy must be introduced to capture a good share of the international market. Product differentiation must also be done through the promotion of brand names and advertising. Infrastructure in terms of communication services, export procedures, appropriately trained manpower, material inputs and transport facilities, as well as stable enforceable contracts with foreign investors are also needed. Otherwise, any increase in the share or the maintenance of the current share in the global market would be difficult. It is heartening that India currently exports more than 100 garment product categories along with its customary yarn and fabrics. Many of the worlds leading companies like Banana Republic, Tommy Hilfiger, Gap, Liz Claiborne, Polo, etc are already sourcing goods from India. With traditional relationships with the worlds major producers, we hope that our exports would achieve new heights in the post quota regime. Coming back to the synthetic textiles industry, it is getting stronger and stronger and Indias share in the world trade of synthetic textiles has marginally improved to 3.50 per cent over the previous years. Indias export of synthetic and rayon textiles has been increasing steadily over the past decade and reached an all-time high of Rs 7630 crore during 2002-03. The export growth is more than 29 per cent during 2002-03 as compared to 2001-02 and the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) is expecting the export growth to continue even in the post-quota regime. Currently, Indian MMF spun and blended fabrics (grey and processed) and blended yarn are exported under quota (Cat. 3, Cat. 3a and Cat. 23) to the European Union. It is worth-mentioning that category 3, 3a and 23 account for only around eight per cent of the total exports of MMF textiles. So in the quota-free regime, India has to compete with rest of the world for this eight per cent of its total export, which would not be difficult.

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As far as USA is concerned, it is one of the most important markets for Indian textile products. In the textile category, USA is the major buyer of MMF textile items, as the share of MMF textile imports in the total textiles accounted for more than 51 per cent during 2002. The share during January-June 2003 has risen to 52.52 per cent, whereas the share of cotton textiles declined marginally from 37.77 per cent in January-June 2002 to 37.08 per cent in January-June 2003. The share of wool and silk textiles constitutes 7.86 per cent and 2.88 per cent in 2002 and in the current year the same trend is maintained. Quota is one of the major impediments for Indian MMF textiles to make a big impact in the US market at present. It has been observed that Indian export growth has been impressive for major MMF textile items, which were removed from the quota regime. When all the products would be integrated into WTO rules and regulations (49 per cent of the products to be integrated in Phase-IV on January 2005), then Indias exports to USA would further increase with a higher market share. With the phasing out of quotas, the process of tariff and non-tariff negotiations at the WTO is also getting streamlined by January 2005. Under the tariff negotiations of WTO, all the member countries should finalise the bound rates of import tariff. Since earlier the domestic markets were given protection through high tariff rates, the WTO mandate for tariff negotiations now would not allow the imposition of import tariffs beyond a certain limit. It is therefore expected that the non-tariff barriers would be more prominent in the post-quota regime. Thus, though, the new global trading system would reduce the chances of developed countries adopting protection measures unilaterally, they can still use their economic clout to their advantage by imposing nontariff barriers. Currently Indian exports are affected by a series of non-tariff barriers also from the developed countries including anti-dumping measures, unilateral rules of origin, disproportionate phasing out of quotas, banning the use of various dyes, etc. As we have already mentioned that the nontariff barriers would be more prominent even in the WTO regime, the Indian textile industry should be prepared to handle there NTBs properly, so that exports should not be affected much. With all this anticipation, the government must play a big role. The government should also be fully prepared to give, whatever facilities are necessary, to exporters so that they can counter the challenges posed by the WTO regime. In brief, global competitiveness in terms of quality and cost is the only alternative for survival in the WTO regime i.e. the post MFA era.

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TITLE OF THE STUDYStudy on consumer buying behaviour towards branded and non branded readymade garments in Ludhiana

OBJECTIVES OF THE STUDY1) To know the factors affecting while buying a branded or non branded garments. 2) To know the satisfaction level of consumer.

NEED OF THE STUDYThere are different national and international products present in India. So to identifyThe customer and their buying behaviour have been the focus of a number of international And national product. The result of these studies have bee useful to the provide solution toVarious marketing problem. Understanding buying behaviour is not enough without understanding the composition And Origin of the customers are attracted by imported goods because of their high quality. So that most of Indian company product losses their credibility and loyalty in Domestic customers.

SCOPE OF THE STUDYCustomer loyalty is an important element in the marketing activities. This customer loyalty Decides the fate of the product and organisation. There are various factors influence to The customer loyalty. These factors are Post Purchase behavior, Reputation, Product availability, Branding and convenient etc.The scope of the study is restricted to Ludhiana.

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LIMITATIONS OF THE STUDY 1) The Study is Restricted to Ludhiana.

2) The Response of the Migrant can be Biased and Subjective.3) Many Respondents were not vocal in sharing their actual views.

4) Due to time Constraints the sample size was kept small and view of majority were not taken.

CHAPTER - 2 REVIEW OF LITERATURE1) TITLE: STRATAGIES FOR REALISING VISION 2010 OF INDIAN TEXTILE AND APPAREL INDUSTRY

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AUTHOR: J.N SINGH Textile commissioner, ministry of textile, GOI SOURCE: http://www.textileassociationindia.org/JTA_ISSUES/Art%206.pdf REVIEW: Indian textile industry has been growing very well. Increase in the young population and also increase in use of plastic money the demand is increasing in the domestic market which is met by the increasing supply supported by the new women working force. Also our stand in the world market is stronger than ever, with the quantitative restrictions on china we are in a better position now. Many Indian companies have bought western brands which has made penetration in the EU and the USA fairly easy further strengthening our exports, but we are facing stiff competition from Indonesia and Bangladesh so there is lot more to be done. The industry needs more investments in the sector and also need to modernize to compete with the other countries as our equipment and machinery are still outdated and even our labor laws are restrictive which pose a serious threat on the further growth of this industry. So though India has strength it also has weaknesses which are needed to be taken care of to increase our share in the world textile trade. 2) TITLE: SCOPE OF BIOTECHNOLOGY IN TEXTILES AUTHOR: G.V.N SHIRISH KUMAR Department of fibers and textile processing technology, MUICT, Matunga, Mumbai. SOURCE: http://www.textileassociationindia.org/JTA_ISSUES/MA-Art2-07.pdf REVIEW: India has wide range of textile of varies designs and manufactured by different techniques when compared to different countries of the World. The speciality in the weave of textile in each region is developed based on location, climate and cultural influences. The rich and beautiful

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products of the indian weavers have been rightly called, Exquisitepoetry in colorful fabrics. But with the advent of globalization and modern technology we always ourselves competing with the countries that not only have better technology but are always looking for new fabrics to meet consumer varied wants. India also has been spending a lot on the manufacturing of new and more appealing fabrics. We are spending more and more on research of such fabrics. A very new way to go about this research is through biotechnology. It offers the potential for new industrial processes that require less energy and are based on renewable raw material. It helps in the production of fabric free floppers, bollworms and bud worms in cotton etc providing almost 50% greater strength and better quality. These fibres materials are also called biopolymers. Biotechnology is one of the revolutionary ways to advance the textile field. 3) TITLE: GROWING IMPORTANCE OF COTTON BLENDS IN APPAREL MARKET. AUTHOR: DR.SHILPA P .CHARANKAR, Mrs. VEENA VERMA, Ms. MITTU GUPTA Department of textile and clothing Dr. Bhanuben Mahendra Nanavati College Of Home Science, Matunga, Mumbai 400019. SOURCE: Journal of textile association DATE: Vol 67 , Jan-feb-2007 REVIEW: As the need for innovation is increasing by every passing day due to the global competition and also todays consumer is seeking not just clothing but clothing with difference which not only has good appearance but is also durable and is climate specific. These things can be achieved by improving the spinning , weaving, and finishing efficiency. Rather than just producing cotton which is less durable than a fabric.Which is blend of nylon/wool/cotton should be produced. Blending is a complicated and expensive process, but it makes it possible to built in combination of properties that is permanent. It makes the fabric better and gives it a competitive edge. Its inevitablein a global economy where everyone needs to be prepared for the

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competition ahead and where the competition is not just from the domestic but also from the international players. 4) Title: WOMEN ENTRPRENEUER DEVELPOMENT IN GARMENT MAKING. AUTHOR: Dr. N . VASUGI Reader family science & community development department Avinashilingam Deemed University. SOURCE: Journal of textile association DATE: Vol 67 , Mar-Apr 2007 REVIEW: Textile industry is the largest foreign exchange earner and also the second largest Employment provider next to agriculture. Worldwide garment is the 3rd largest employer of the women even in indian garment industry 80% of the people in it are women. Further also it has lot of job opportunities for everyone women included with the increased investmentto push the growth forward and also with more and more does not mean we are free of weaknesswe are able to meet up the internal challenges of production we will be unstoppable.

CHAPTER - 3

RESEARCH MEHODOLOGYResearch Methodology is Logical and Scientific technique to solve a problem. When we talk of research methodology, we not only talk of research methods adopted to get desired results but we also consider logic behind these methods. All possible efforts were made to gather information in a natural way to achieve objectives of research. Research is an original contribution to existing stocks of knowledge making for its advancement in research for knowledge through objectives and systematic method of finding a solution to problem, 30

is research. Research refers to systematic methods consisting of enunciating the problem, forming a hypothesis, collecting facts or data, analysis of facts and reaching certain conclusion either in the form of a solution towards concerned problem in certain generalization for some theoretical formulation. In my Research the Research Problem is To study the consumer buying behaviour towards branded and non branded readymade garments in Ludhiana.

RESEARCH DESIGNResearch design is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and solve marketing research problems. When designing research, one is faced with a continual series of trade-offs. Since there are typically numerous design alternatives that will work, the goal is to find the design that enhances the value of the information obtained, while reducing the cost of obtaining it and make it as accurate as possible. The conceptual structure, within which this research is conducted, is descriptive in nature as it brings forward the results concerning the set objectives fact finding enquires. Moreover it describes the state of affairs as exists at present In my research the Research Design is DISCRIPTIVE RESERCHdesign. Selection of Objective/Problem identification Secondary Research and Literature Review

Research ObjectiveData Collection & Tabulation 1) To know the factors affecting while buying a branded or non branded garments. 2) To know the satisfaction level of consumer. Analysis of Data

SOURCES OF DATAReport PreparationPrimary data:

Primary data are those, which are collected afresh and for the first time, and thus happen to be original in character. It is the backbone of any study. It is obtained from respondents with the help of widely 31

Final Draft

used and well-known method of survey, through a well-structured questionnaire. So the primary data has been taken from different customers. In my research the source of primary data is well designed Questionnaire. Secondary data: Secondary data are those which have already been collected by someone else and which have already been passed through the statistical process. In this case one is not confronted with the problems that are usually associated with the collection of Original data. Secondary data either is published data or unpublished data. Secondary data is collected from publications, journals, and magazines, Records, web sites etc. In my research the source of secondary data is journals, internet, books etc.

SAMPLING PLANIt consists of:Universe of the study: The Universe is the specific group of people, Firms, Conditions, activities etc. which form the pivotal point of research project. In my research study the universe Is All the buyers of branded and non branded readymade garments.

Population: Population refers to part of universe from which the sample for conducting the research is selected. Universe and population can be same in some researches. It may be finite or infinite. In finite universe the number of items is certain, but in case of infinite the number of item is infinite i.e., we 32

cannot have an idea about the total number of items. The population for my study is finite i.e., all the buyers of branded and non branded readymade garments in Ludhiana. Sampling unit: Sampling unit refers to smallest possible individual eligible respondent. In my study the sampling unit is single buyer of readymade garments in Ludhiana.

SAMPLE SIZEThis refers to the total number of respondents selected from the population to constitute a sample. The size of the sample should neither be excessively large, nor too small. It should be optimum. An optimum sample is one which fulfills the requirement of efficiency, representativeness, reliability and flexibility. The sample size for my research is 50.

SAMPLING TECHNIQUEIn this research study, non-probability convenience sampling is opted for. Convenience sampling is done purely on the basis of convenience or accessibility. This sampling method has been mainly chosen because of time, financial constraints and lack of expertise.

MEASUREMENTMeasurement is accessed via a 5-point-Likert-type scale ranging from strongly agree tostrongly disagree. Analysis is done with the Calculation of Mean Score which is calculated with the help of following Formula. Mean Score = Total Score --------------------------Total Number of Respondents (n=50)

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Chapter no-4ANALYSIS AND INTERPRETATION

1) Number of people who are like to do shopping.Particulars Yes No No. of respondents 50 0Table - 4.1

Percentage (%) 100% 0

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Graph - 4.1

Interpretation: - As the Graph 4.1 shows, out of sample size of 50 all the consumers are like to do Shopping. As the graph shows 100% people are like to do shopping.

2) Number of people likes to do shopping through various places.Particulars E Shop Trade Shop Mall Super Market No. of respondents 5 20 15 10 Percentage (%) 10 40 30 20

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Interpretation:- In the above Graph maximum consumers likes to do shopping from trade shops and which is 40%. There are least consumers likes to do shopping from E Shop.

3) Frequency of visits.Category Weekly Monthly 15-20 days Rarely No. of respondents 10 20 20 ----Table- 4.3 Percentage (%) 20% 40% 40% ------

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Graph- 4.3

Interpretation: - As the Graph 4.3 shows 20% people are likely to do shopping weekly. 40% Peoples are likely to do shopping on monthly basis. 40% of people like to do shopping on 1520Days basis. And out of sample of 50 no one is there who likes to do shopping rarely. It means most of the people like to do the shopping at monthly and 15-20 days basis.

4) Number of people who are brand conscious.Particulars No. of respondents Percentage (%)

Yes No

20 30Table - 4.4

40% 60%

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70% 60% 50% 40% 30% 20% 10% 0% yes No

Graph-4.4

Interpretation: - From the above graph it is proved that out of the sample size of 50, 40% people are brand conscious and 60% people are not brand coscious. It means most of the peoples are not depend on branded product.

5) Number of people buy different brand of cloths.Category Levis Pepe Lee Puma No. of respondents 10 5 3 2 38 Percentage (%) 50% 25% 15% 10%

Any other

--------Table-4.5

Table-4.5

Interpretation: - Out of sample size of 20.The above Graph shows that the 50% peoples prefer Levis brand. 25% people prefer Pepe brand, 15% people prefer Lee brand and 10% people prefer brand of Puma. It means maximum people prefer brand of Levis

6) Number of people preffer a particular brand or company.Category Brand name Product feature Promotion activities Distribution system No. of respondents 15 --------------5 Percentage (%) 75% ------------25%

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Table-4.6

Graph-4.6

Interpretation:- Out of the sample size of 20.The above graph shows 75% people buy the branded garments because of brand name and 25% of respondents preffer branded garments because of the distribution system. As a result we can say that people preffer branded cloths because of brand name.

7) Number of people thinks brand is a status symbol.Category Highly disagree Disagree Neutral Agree Highly agree No of respondents ---------------12 8 Percentage (%) ----------------60% 40%

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Table-4.7

Graph-4.7

LEVEL OF AGREEMENT [(60*4) + (40*5) = 440/50 = 8.8] Interpretation: - Out of the sample size of 20.As a result, 60% respondents respond that brand is a status symbol. And 40% respondent responds to highly agree. So we can conclude that maximum peoples are agreeing that brand is a status symbol.

8) Number of parameters which effects consumer buying decision.Category Quality Price Easy Availability Discount Numbers 64 41 48 47 Mean rank 3.2 2.05 2.4 2.35

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Table-4.8

Graph-4.8

Interpretation :- From the rank given to some factors by respondents we come to know that most important factor took into consideration while buying a branded cloth is price. After that Easy availability and discount. And least common factor which effect the purchase decision is Quality.

9) Preference of people regarding type of cloth.Category Branded Non branded Both No of respondents -----12 8 Percentage (%) ----60% 40%

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Table-4.9

Graph-4.9

Interpretation:- Out of the sample size of 20. 60% people preffer non branded Readymade garments. And 40% people preffer both branded and non branded garments.As a result we can say that non branded garments are preffer more than branded garments.

10) Rating of the factors which consumer consider while buying the cloth.PRICE Particular Most important +2 Important +1 Neutral 0 ` Less important -1 Numbers 20 5 3 2 Percentage 60.66% 16.66% 10% 6.66%

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Least important -2

-------Table- 4.10.1

---------

Graph -4.10.1

Interpretation: - Out of the sample size of 30. the above graph shows that 61 % of people Consider that Price is a most important factor while buying cloths and 17% people consideredPrice is a important factor. 10% is for neutral and 7% is for least important. It means from the results we can conclude that maximum people thinks that price is a most important factor which they takes into consideration while buying.

DESIGN Particular Most important +2 Important + 1 Neutral 0 Less important -1 Least important -2 Numbers 10 15 5 0 0Table-4.10.2

Percentage 33.33% 50% 16.66%

`

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Graph-4.10.2

Interpretation :- out of the sample size of 30. 50% of people consider, Design is important factor which takes into consideration while buying cloths. 34% people respond that design is most important factor. So as a result we can say that, design is a important factor for buying cloths.

DISCOUNT Particular Most important +2 Important +1 Neutral 0 Less important -1 Least important -2 Numbers 7 10 5 5 3Table-4.10.3

Percentage 23.33% 33.33% 16.66% 16.66% 10%

`

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Graph-4.10.3

Interpretation :- 24% people consider that discount ia most important factor,34% people consider discount is an important factor and 17% is for neutral and less important respectively. 10% people respond that discount is a least important factor. as a result, maximum people said that discount is a important factor.

SALES PROMOTION Particular Most important +2 Important +1 Neutral 0 Less important -1 Least important -2 Numbers 3 5 5 10 7Table-4.10.4

Percentage 10% 16.66 16.66 33.33 23.33

`

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Graph-4.10.4

Interpretation:- in this above graph. It is shown that 34% respondent said that sales promotion is a less important factor. 10% people said that sales promotion is a most important factor. As a result we can say that. Sales promotion is a less important factor.

11) SATISFACTION OF CUSTOMER REGARDING BRAND AVAILABLE IN THE MARKET. Particulars Yes No No of responses 50 0Table-4.11

Percentage 100% 0

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Graph-4.11

Interpretation:- Out of 50 Sample size. 100% respondent responds that they are satisfied with the brand and company available in the market.

CHAPTER-5SUMMARY AND CONCLUSIONRESULTS AND FINDINGS: 1. Out of the sample size of 50. All the consumers are like to do Shopping. 100% people are like to do shopping.

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2. Most of the consumers like to do shopping from trade shops. And there are least consumers Who like to do shopping from E Shops. 3. Out of sample of 50 no one is there who likes to do shopping rarely. It means most of the people like to do the shopping at monthly and 15-20 days basis. 4. Out of the sample size of 50, 40% people are brand conscious and 60% people are not brand conscious. It means most of the peoples are not depend on branded product 5. Out of sample size of 20. There are maximum consumers who purchases the brand of Levis and there are least consumers of Pepe brand. Rest all are stands in between them. 6. Maximum people preffer a particular brand or company because of brand name. least consumers preffer the brand because of distribution system. 7. There are maximum respondents who agrees that brand is a status symbol and there are some people who highly agrees that brand is a status symbol. No one is disagree upon the statement. 8. Most important factor took into consideration while buying a branded cloth is price. After that Easy availability and discount. And least common factor which effect the purchase decision is Quality. 9. Non branded garments are preffer more than branded garments. 10. Maximum people think that price is a most important factor which they take into consideration while buying. 11. Design is a important factor for buying cloths. 12. Maximum people said that discount is a important factor. 13. Sales promotion is a less important factor. 14. 100% respondent responds that they are satisfied with the brand and compan available in the market.

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SUGGESTIONS

Customers like best quality product at any price, so companies should add latest technologies to their products. After sale services is the area where branded and non branded company can highly satisfy the existing customers, because they can make more customers through their word of mouth. So Indian and international company should provide latest and realible sevices to their customers. Customers behaviour is always looks for some extra benefit with purchasing. They demand for affordable price for products and gifts with purchasing. International companies should make strategy to cater every income group customers In city.upper income group are affordable to purchase, but lower group is not. So International companies makes policies for to send their product and every home. The companies give more emphasis on advertising to create market awareness and make Brand image in the minds of customer.

CONCLUSIONAs the research has shown the comparison between customer buying behaviour regarding Branded and Non branded readymade garments in recent time. Since the consumer buying behaviour is the important factor to forecast the sale of any product on a particular area. So

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company should keep close eye on the market situation. Yet, customers were price sensitive.But the changing market trend and customer view and preference showed that customers are quality sensitive. They want qualitative product, easy availability of the product, and better performance by the product. These days no of customers buying things from malls are increased. Also the frequency to visit the malls has been increased. Thats why people are brand conscious. They feel satisfied with the range of product available here. From my research point of view we can conclude that there is maximum preference towards Non branded cloths. Because branded cloths are costly than the non branded cloths.

BIBLIOGRAPHY

reports/indian-textile-industry/indian-textile-industry1.asplex/chapt6.html http://www.udel.edu/ahttp://www.fibre2fashion.com/industry-article/market-research-industryhttp://en.wikipedia.org/wiki/Marketing 51

http://en.wikipedia.org/wiki/Marketing http://en.wikipedia.org/wiki/Sample_(statistics) http://www.scn.org/cmp/modules/rsh-samp.htm http://en.wikipedia.org/wiki/Data_source http://www.textileassociationindia.org/JTA_ISSUES/Art%206.pdf http://www.textileassociationindia.org/JTA_ISSUES/MA-Art2-07.pdf Journal: Journal of textile association Book: C.R Kothari (Research Methodology)

QUESTIONNAIRE Dear Respondent, I am conducting a research on the topicConsumer buying behaviour regarding Branded and Non Branded readymade garments in Ludhiana. Please spare a few minutes out of your busy schedule to fill this questionnaire. I will be highly thankful to you for your valuable response. Q1) Do you like shopping? 52

(a) Yes

(b) No

Q2) Where do you like to go for shopping? (a) E Shop (c) Mall (b) Trade shop (d) Super Market

Q3) How frequently you go their for shopping? (a) Weekly (c) 15-20 Days (b) Monthly (d) Rarely

Q4) Are you brand conscious while doing shopping? (a) Yes (b) No

If yes, then move to Q5. If no, then please skip to Q9. Q5) Which brands do you prefer most? (a) Levis (d) Puma (b) Pepe (c) Lee

(e) Any other, specify________

Q6) Why you prefer a particular brand/company? (a) Brand name (c) Promotion Activities (b) Product feature (d) Distribution System

Q7) Do you think branded cloths are status symbol? ------------|-----------------|----------------|-------------|---------------|-----------

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Highly Disagree

Disagree

Neutral

Agree

Highly Agree

Q8) Give rank to the parameters which effects your buying decision? (1 for most important and 4 for least important) FACTORS Quality Price Easy Availability Discount RANK

Q9) What type of cloths you prefer while shopping? (a) Branded (c) Both If Non branded or both are purchased by you, than move to Q10. Q10) If you prefer Non Branded garments, what attracts towards them? _________________________________________________ _________________________________________________ (b) Non Branded

Q11) Please rate the following factors which you consider while buying the cloths on following scales? (-2= least important, -1= less important, 0= neutral, +1=important, +2=most important) Price --------|--------|--------|--------|--------|--------2 -1 0 +1 +2 --------|--------|--------|--------|--------|--------

Design

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-2 Discount

-1

0

+1

+2

--------|--------|--------|--------|--------|--------2 -1 0 +1 +2

Sale promotion offers --------|--------|--------|--------|--------|--------2 -1 0 +1 +2

Q12) Are you satisfied with the brand/company available in market? (a) Yes (b) No

Personal Information:Name______________ Age________________ Gender_____________ Occupation__________ Marital Status________

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