A Project Report On Market survey to ascertain Mayurs position In Market as Influenced by Consumer Behaviour

For Rajasthan Spinning and Weaving Mills Ltd. Kharigram, Bhilwara (Rajasthan)

Submitted by: Kuldeep Vaishnav MBA (2004-2006) Vishwakarma Institute of Management Pune

CERTIFICATE
This is to certify that Mr. KULDEEP VAISHNAV Has successfully completed project work on

Market Survey to ascertain mayurs position in market As Influenced by Consumer Behaviour

Towards the completion of Master Degree in Business Administration Of University of Pune During the academic year 2004-2006.

Dr. Sharad Joshi (Director)

Prof. Smita Sovani (Project Guide)

Acknowledgement
Many people have directly & indirectly played a very crucial role in planning and execution of this project work. At the outset, I would like to express my gratitude to Sales Manager of Pagariya Tower Showroom of Maruti Suzuki Ltd. Aurangabad. Mr.Yogesh Haral for giving me this opportunity to learn while working for this organization. The unconditional help extended by Mr. Ulhas Kulkarni really deserves a mention at this platform who is the Assistant sales Manager in Showroom. I am thankful to our Marketing Department head Mr. Ketan Joshi and my project guide Mr. Satish Kadam sir for their invaluable guidance given to me from time to time The customers/users who were the focal center of my study have played an extremely important role by giving their inputs & suggestions. It is only through their feedback that an organization can improve and innovate. I would like to thank all the employees of Pagariya Tower Showroom for their inputs and cooperation.

Kuldeep Vaishnav

Table of Contents
S.No. 1. Particulars Introduction Statement of objectives

PART A
2 About Us LNJ Bhilwara Group RSWM, Kharigram Quality Policy of the Company Overview of the Textile Industry Manufacturing Process at RSWM Statement of Objectives Research Methodology

3 4 5 6

PART B
7 8 9 10 Current segmentation, target market, positioning Current Marketing Mix SWOT Analysis of Mayur Survey Findings: Analysis & Interpretation Consumer Survey Insights from the Consumer Survey Retailer Survey Agent Survey Recommendations Conclusion

11 12

PART C
13 14. 15. Appendix Questionnaire for Customers Questionnaire for Retailers Questionnaire for Agents

Introduction
The market for the suiting & shirting is one of the most competitive markets in India, and to sustain and grow, one needs to be really focused, alert and innovative. It is very crucial to simultaneously keep a track of the changes in the marketplace, changes in the consumer behaviour & preferences. Another important feature of this market is the high reliance that customers have on the retailers for deciding their purchase. Thus, the power in the retailers hands is also high. In this situation, it is extremely important for any manufacturer & seller and Mayur, per se to regularly take feedback on the consumer perceptions and tastes, and the retailers feedback. This results in identification of areas where some action is required, be it the margins of retailers or the change in product, price etc. In light of this backdrop, the objectives set out for this study are: 1. To ascertain the position of Mayur in the minds of the Consumer 1.1 Understand the consumer buying behaviour 2. To assess the satisfaction level & efficiency of each stage In the distribution channel (Agents, Wholesaler, Retailer) And take their feedback 2.1 In partnership with the retailers: Learn about the consumer buying behaviour at the Retail outlet 2.2 Take their feedback and the customer feedback from Them. 3. Develop a plan of recommendations to enhance the customer and the dealer/retailer satisfaction.

LNJ BHILWARA GROUP

To me Bhilwara group is not a Business house, I see it is an institution that is committed to seek excellence L. N. Jhunjhunwala, Chairman- emeritus.

The LNJ Bhilwara group follows the Belief of creating modern, stable and successful companies that benefit all its stakeholders and begets their prosperity. For decades, the group has been concentrating all its resources to bring greater enrichment in product designing, creativity, innovation and work practices, with continuous ethos of Quality and excellence. Realizing the need for worldwide Integration, the Groups activities have been centered on Quality, efficiency, customer satisfaction and sharing the ideas of people of all levels and going to great lengths to achieve them to bring the fruits of Philosophy to a greater number of people, it has taken up the task of continuing to identify new focus areas that will drive the growth of the group in the years to come.

The Group: Silent Features

The LNJ Bhilwara group, founded by Mr. L. N. Jhunjhunwala is a business group with a global presence. It actively seeks growth and profitability by investing in variety of systematically identified business making it a multi-product conglomerate with interests in a range of industries such as textiles, graphite electrodes, Power generation, sponge iron, information technology and IT enabled services. The group started its operations in 1961. it has risen to become one of the largest business firms in the Indian federation, with over 20000 employees and production units positioned at strategic locations across the country. Following the success of their early power project the 15 MW at Tawa Nagar (M.P) in early 1997, the group has recently commissioned in July 2001. Indias first hydroelectric IPP 86 MW Malana power project in a record time of 30 months at Kullu (H.P)

BACKGROUND Registered office Head / Corporate office Incorporation year Ownership group Main activity Listed on Kharigam, P.O. Gulabpura Dist. Bhilwara, Rajasthan, Pin 311021 Bhilwara Bhawan, 40-41, Community centre, New Friends Colony, New Delhi, Pin - 110065 1960 LNJ Bhilwara Group Cotton & blended yarn Bombay Stock Exchange, Calcutta Stock Exchange, Delhi Stock Exchange, National Stock Exchange

RSWML, the flagship company of the LNJ Bhilwara Group, manufactures yarn (viscose, blended and cotton) and fabric, for domestic and export markets. The company has an installed capacity of 1, 31,276 spindles and 173 looms spread over three locations, Kharigram, Banswara and Bhilwara, in Rajasthan. RSWM has consolidated its position in spinning and weaving, by expanding capacities, modernizing existing operations and introducing new value added products, which are the key success factors in the highly competitive polyester viscose (PV) yarn industry. The Rs. 15,790 million LNJ Bhilwara Group is engaged in various businesses like textiles yarn spinning, woven and knitted fabrics, knitted garments, fabric processing, manufacture of graphite electrodes, sponge iron and power generation. The other major companies in the group are HEG Limited (manufacture of graphite electrodes), Maral Overseas Limited (export of knitted garments), BSL Limited (spinning and weaving worsted yarn), Bhilwara Spinners Limited (spinning and weaving PV yarn), Bhilwara Processors Limited (textile processing) and Malana Power. The founder of LNJ Bhilwara group is Shri Lakshmi Niwas Jhunjhunwala, set up a jute export company at the young age of 19 and within three years it had become one of the Indian top ten concerns. Diversifying into iron and steel manganese and iron ore in the next few years saw third largest Iron Exporter. In 1960 he ventured into another area i.e. cotton textiles under the name Rajasthan spinning and weaving mills Ltd. The flagship of LNJ Bhilwara group which started with cotton, later diversified into synthetic and worsted woolen and

knitted garments too. Simultaneously, the groups made its way into other areas like graphite, electrodes, sponge iron oil drilling, hydropower production and financial services. Today a group is all set to explore other areas like petrochemicals and telecommunications. The LNJ Bhilwara group has annual Turnover as ----- from its various units with interests in spinning, weaving, knitting, processing, knitwear and readymade garments in textiles, graphite electrodes, oil drilling, sponge iron, hydel power and financial services A. Rajasthan Spinning and Weaving Mills Ltd. 1. Gulabpura Synthetic, Regenerated Cellulosic Blended Grey, Dyed Yarns and Fabrics Synthetic Regenerated Cellulosic cotton Blended Grey & Dyed Yarns Cotton Mlange Yarns

2.

Banswara

3.

Mandpam

B. HEG Ltd. 1. Mandideep 2. 3. 4. 5. C . 1. 2. Durg Durg Tawa Rishabhdev Maral Overseas Ltd. Maral Ltd. (Indore) Jammu

Graphite Electrodes Sponge Iron Waste Heat Recovery Power Hydro Electric Power Synthetic Blended and Grey Yarns

Sarovar Cotton Yarns, Cotton Knitted Fabrics and Knitwears Cotton Knitted Fabrics and cotton Knitwears

3.

Noida

Knitwears and sweaters

D . 1.

BSL Ltd. Mandpam Yarns, Worsted and Synthetic Fabrics, Ready made Garments and Accessories

E. Bhilwara Spinners Ltd. 1. Bhilwara Synthetic, Blended Grey & Dyed Yarns

F. Bhilwara Processors Ltd. 1. Mandpam Processing of synthetic and Worsted Fabrics Tops Fibre Dyeing

G . 1.

Bhilwara Melba De Witte Pvt. Ltd. Mordi Banswara Specialized automotive and Furnishing Fabrics

H .

Malana Power Company Ltd. Malana (Kullu) Manali Hydroelectric Power Hydroelectric Power

I. 1.

Indo Canadian Consultancy Services Ltd. Noida Power Engg. Consultancy

J 1.

Maral Fashions New Delhi

Readymade Garments Retailing

K. Bhilwara InfoTech Ltd. 1. Noida Information Technology 2. Bhopal IT Enabled Services

Company Profile Rajasthan Spinning & Weaving Mills Ltd. Is the Flagship of LNJ Bhilwara Group. It is leading manufacturer of Synthetic yarn and Fabrics. Rajspin was established at Kharigram, Gulabpura in 1972 with 8640 spindles exclusively in Polyester Viscose Blended yarn. The company also laid down the process house at Banswara a step towards Forward integration. This unit has largest sophisticated State-of-the-Art Systems, processing machines like Sinzing machines from U.K., Finishing machines with latest technology from Germany and K.D.Finish machine from Italy. In the late eighties the company identified, export as a thrust area. In 1989- 1990, a unit with 10368 spindles of latest technology was set up at Banswara to increase capacity. It was very first year of its Exporting, the unit established its supremacy in Quality requirements and so a Major share of production was exported. Need to diversify was felt and a new unit with 9216 spindles for special cotton mlange was set up at Mandapam in 1993-94. This unit is mainly striving for production of high value added mlange yarn to meet Domestic and Overseas requirement of mainly knitting Industry. In the Export Market the Company has been established as a reliable supplier of high Quality P/V Blended yarn. 30% of its production is exported and Rajspin has 40% shares in over 2000crores LNJ Bhilwara group. The company has been awarded for its excellence many times. RSWM has 25% market share for Export of its P/V yarn and 30% market share for 100% polyester yarn from India. The companys manufacturing unit Mayurs suiting is also well established in Domestic and Export market. The Management apart from its Business activity takes keen interest in Development and welfare of the society. In 1977 a school Vivekananda Kendriya vidhayalaya, affiliated to CBSE, was established. In 1984 a Textile training institute was established offering degree and Diploma sources, in the name of ManikyalalVerma textile Institute at Bhilwara. The company has also sponsored sportsmen. Its sponsorship brought Mr. Anand, the chess player into Limelight. Similarly many more upcoming tennis players in Rajasthan are being sponsored. A sports training center in Jaipur was established in 1995 by state authority with lead sponsorship of RSWM. The company conducts many community welfare programmes. Donations have been given for hospitals, schools, eye camps, family planning programmes, deaf and dumb schools and installation of road lights etc.

Introduction to RSWM, Kharigram Rajasthan Spinning and Weaving Mills Ltd. Gulabpura is the Flagship company of the esteemed Bhilwara group. RSWM has also been accorded Golden Trading House status. The unit has Beautiful Infrastructure and real working environment provided to all its employees right from the echelon down to the floor- men in the Hierarchal peaking order. The Decade in which the seeds of enterprise was sown in the Desert sand of Rajasthan in 1961. With a small textile unit with just 12500 spindles manufacturing 20s carded cotton hosiery yarn. Another 13000 spindles for synthetic yarn were added making RSWM the pioneer of viscose and polyester spinning on the modified cotton system as also the spinning of dyed synthetic fibre. A unit that began spinning out a success story. A dream that started small and grew on the wings of an embedding passion to grow, to lead, to show the way. A vision that saw a small Textile unit Pioneer a boom in the textile synthetic yarn Market. It emerged as a leader in yarn and Fabric overtime. A leader called Rajasthan Spinning and Weaving Mills Ltd. Or RSWM a name that stands for worldclass yarn and fabrics. They have an installed capacity of 131,376 spindles and 69 Looms they have also build Mayur, one of the Indias top Textile brands. With a product range that includes P/V yarn and fabric, Flameretardent Fabric, speciality Tencil and Lycra Blends.RSWM also do grey yarn , with strengths in P/Cand other cotton blended yarns The unit provides employment to 2500- 3000 workers and to about 320- 325 staff members including employees , personnel and Executive. All the workers and staff members are governed by same rules which fall under the perview of Industrial employment standing orders act 1946. The factory has five mills of yarn production and three mills for the production of fabric . This unit takes all types of production be it mass , Job or Batch Concerning both yarn and Fabric. It basically caters to the procured orders in both the sections. All the departments make a Composite unit fabricated in such a way that all departments are individual in their own capacities but cannot do without each other. The management of the whole unit is perfect at its stance as each department is headed by the General manager to the vice President then scrolling to the manager heading the officers which have supervisors under them and last but the most important unit - the workers. RSWM promises to not only to manufacture the finest blended yarns, cotton Milange yarns and synthetic yarns and fabrics. The real challenge is to ensure that the finished yarns and fabrics reach the customers on time. The centrialiuzed production planning cell (CPPC) has an experienced team of production planners, who ensure that every thing happens on time. Across all

plants cumputerization is a key tool towards enhancement of productivity , information, Dissemination and Development. VSAT links connect all shipment points. All shipping movements are tracked on a continuous basis to ensure the the orders are delivered on time ERP systems have been implemented across the board .

RSWM s Gulabpura unit has the Distinction of being Indias first composite Textilemill to claim the coveted ISO 9002 and IS/ ISO 9001:2000 accreditation . TQM has been implemented at the Banswara unit
Quality Policy We shall produce yarn and Fabrics confirming to internationally acceptable Quality standards with consistency to the true satisfaction of our customers as per their needs. In order to achieve this we shall: Involve All our suppliers of fibers, yarns and components to obtain incoming materials of standard quality. All staff members and workers to attain high quality consciousness, productivity and improve their working skills. Upgrade Technology and work practices to reach highest quality level in the country and establish leadership. Implement IS/ ISO 9001:2000. This is the commitment of company to Quality

Overview of Textile Industry Rajasthan is a part of the 'Color Belt' of Western India. The starkness of the desert, the arid, colourless landscape - are balanced by the brilliant range of colors found in the textile of Rajasthan. Spinning units, Waeving units, Dyeing and processing units, printing Industries. The State has a deep-rooted tradition of textiles. The modern textile industry also has gained prominence in Rajasthan with the establishment of Spinning, weaving and processing industries in last two decades. The State is the largest producer of polyster/viscose blended yarn and the second largest producer of blended suitings in the country. These units are located in Bhilwara, Udaipur, Alwar and Bhiwadi area. Out of 862 spinning mills in India, 69 spinning mills are in Rajasthan. Many of these spinning mills are engaged in manufacture of synthetic blended yarn which accounts for 40% of allIndia production of the yarn. The prominent spinning units are : Rajasthan Spinning & Weaving Mills Ltd, Bhilwara Syntex Ltd, Banswara Syntex, Jaipur Syntex, Jaipur Polyspin Lts, Bhawal Synthetics Ltd, Sangam group, Reliance Chemotex, Shri Rajasthan Syntex, Orient Syntex, Parasrampuria Synthetics. Textile industry is a profitable investment area with a vastly increased export potential. With an annual production of 9 lac bales of cotton, the State offers excellent scope for setting up cotton yarn, cotton fabric, denim and other cotton textile projects. The Sanganer and Bagru prints, The Bandhej work has unique indentity in Intenational market Fabrics. If one takes into account the yarns and the floor coverings/carpets, the total export figure crosses 1000 crores a year.

Formal/Organised sector

Mill sector- The state has 7 composite mills with spinning and carding facilities and 27 mills with spinning facilities. 8 mills have got ISO 9000 Registration. The main concentration is in Bhilwara, Alwar, Jaipur and Banswara districts. Total employment generated 30,000 Powerloom Sector- Total powerlooms installed in the state are 12745 as per Directorate of Industries census 1999. The prominent clusters are

Bhilwara, Kishangarh and Sawai Madhopur. Total employment generated: 40,000

Handloom Sector- The state has 33023 handlooms installed with about 62,000 weavers working. 80% of these are in rural areas. 815 weaver cooperative societies are registered. The artisan based household units and micro enterprises consist of this sector; usually not registered with any govt. authorities. The sector is the source of livelihood for majority of rural people. Over 2 lac people are directly and indirectly engaged in the sector, as per the rough estimates. 60% of these consist of rural women and children, who generate alternative employment in the poor rural households.

Informal/Unorganised sector

Manufacturing Process at RSWM QUALITY CONTROL The SQC (Statistical Quality Control) of each of the department fulfils these a fore-mentioned Quality checks efficiently. There are also quality circles in the whole unit to maintain the decorum of the work and to call for active participation from all the members of the unit in their full individual capacity. They are named according to the kind of work they are carrying out to motivate to perform them better. The names are: Blow room Spinning preparatory Ring frame Post spinning weaving preparatory weaving Finish Folding1 Finish Folding2 Finish Folding3 Sangam Samta Sartaj Sirmaur Srishti Sarachna Anusandhan Nirikshan Lakshaya

All the levels of Hierarchy encountered many drawbacks and discrepancies at the initial phase. Members faced problems related to irregularity of meetings, incompetence and lack of leadership not keeping higher level informed, ineffectiveness of group discussions, Conflict etc. The difficulties encountered by the middle management were lack of faith in the concept, loss of authority and doubts about top management commitment, not motivating the members etc. and the problems faced by Top management were no realization of need, only floral reorganization, not rewarding effective circles, training and attention to the problem, not making QC an integral part of quality movement etc. Spinning/SQC: The production of the yarn carried out, is segregated in two sections that is Dyed and Ecru section. The total number of spindles in the five mills are 51600 out of which 29760 produced Dyed yarn and the rest 21840 looks to the production of Ecru Yarn the Total production capacity of the five mills is 40 tons/Day, mill no. 1, 2, 3produced almost 6 tons/ day per mill and mill no. 4& 5 as being dabbed with the latest Technologies. Produces handsome amount around 11 tons/ day each .

Machines like Laxhmi- Rieters, schlafhorst, Volkmann, Leewha materias like viscose, cotton & acrylicare imported from Nagda, Grasim ,Rayon, Melange- the sister concern and reliance respectively. They are the only liason holder to manufacture the polynosic and Tencil Yarn, the raw material for the same is procured from Dupont an American co operation The yarn produced is usually a poly viscose blend in the ratio of 65/35. at the inception level , fibers of the two categories are blended manually which in the Blow- room are properly blended and dried this preparation is called Lap. This Lap is formed into carding, and then out of carding Card- sliver is prepared. This is further subjected into the form of Drawing- sliver. From eight-card sliver one drawing sliver is prepared. Further Roving is formed from the drawingsliver, and then the ring yarn is prepared called thread. The next follow up step is to make auto corner where threads are wounded. Round the cones: cheese winding is the next step in the process. Then the thread is doubled in the twofor- one twister. In the new high Techno savvy Air- Jet spinning machines three steps are skipped and directly cheese- winding is prepared out of drawing- sliver. Static Quality Control (SQC) In the dye house the polkyester fibre is dyed as per the ratio demanded to match the closest shadesegment . In the P/V blend viscose shade is kept constant as it is imported from Nagda, Grasim Rayon. In the cotton blends the cotton is not coloured as it is imported in the coloured state from milange. The machines of assorted Technologies like Dalal, obermier, H.T.H.P., and autoclave are used for fiber colouring. There are Six machines for colouring the fiber. These machines are of Different capacities: No. of machines 1 3 2 1 Capacities utilized 50 Kg. 100 Kg. 200 Kg. 400 Kg,

It takes almost2:00 to 2:20hrs to colour fibre for lighter shades and about 3:50 to 4:00 hrs to colour the Ecru fibre for Darker shades. Too much variations from the set standards are not accepted , The standard tolerance from the set standards is not accepted, the standard Tolerance of colour variance for Export production of fibres is at the most 0.75 and that for the domestic is 1:00.

This variation is checked in Photo Spectra Meter, which is Computerized System. The dyed fibres are then passed through assorted Local Tests for colour fasting in the lab. Weaving /SQC The production of Fabrics is bifurcated in two sections: Piece- Dyed Fibre- Dyed The capacity of the plant is 1.2million meters per month but this capacity is is not fully exhausted as the complete fabric market is under recession. The plant utilizes upto 60%- 65% of its capacity making up to 6-7lackh meters per month. There are 173 weaving looms segregated into following patterns. Machine Sulzer-Aj Toyoda Ruti C Sulzer P7100/P7200 No. Of Machines 16 32 80 45

There are various kinds of weave and width like plain stripe & checks, Matt, Oxford, Twills, Herringbone, Fancy Dobby Design up 65 cms width. The selvedge:m Leno, Tuck- in or closed with monogram is used. The plant carries Job, Mass and Batch production and in the case of job production, it is case sensitive to use the blend, the weave and of course the selvedge. The various finishes that are given to the fabric are piece- dyed, Fibre- Dyed, Suede, Enzyme treatment, Airo and Petra. The product- Mix of the fabric: P/V blended fabrics Fibre dyed and Piece Dyed Tencel, Tencel- Polyester & Tencel Cotton Polyester Cotton blended Polyester/ Polynosic Stretch Fabrics In the technique of weaving , the first and the foremost step is that marketing people give advice concerning the fabric colours, shade and Design and directions through Design and Development. The yarns procured as per the requirement. The threads are first wound round longitudinally over the shuttle loom usually in the sets of 1000 ends and 40 sets like this making up to 40,000 ends. This process is called warping. The warping can be of two styles: sectional and direct. Direct warping is the mostly favoured for the solid colours. The next step is sizing where all the endsa are properly adjusted and

to improve the strength of the yarn and improve the strength of the yarn and remove the pilling of the fabric. The next follow up step is to prepare the drawing pattern of wrap, weft and selvedge. Knotting is done in three waysheald wires, heed shaft and reed shaft. Pinning is the last process in the warping section these are sensors. The shuttle so prepared is loaded on the shuttle- loom the process next to warping is of wifting in which the threads are passed through the wrap intersecting it . The shuttle looms can be of two sorts- Pirn winding and cone winding. Now the weaving takes place on the looms. The average production is 75- 80 meters per shifty per machine. The looms that company is using are shuttle loom- 80 looms of Lakshmi Reiter. 64 out of 80 are used for suiting and rest for shirting. The shuttles looms can be further segregated into projectile and Air- Jet Toyoda. The projectiles are total 45 in number, Sulzer P7100 and P7200 and generally only stripes or plain Fabric is manufactured over it and same for the Sulzer- AJ. As for the air Jet Toyoda they are 32 in number and all the checks and stripes are manufactured over them. The fabric ones made is send for inspection but the fabric subjected to inspection is only the first piece of every Fabric Then is the process of mending where by the defects can be corrected manually. The defects so encountered are generally corrected manually and same procedure is adopted for the whole beam. Then the final inspection is conducted, variation and discripencies are Located though they cant be corrected at this stagebut the caution is taken in the finish Folding section. Where all the errors are practicably corrected. The fabric then is send to the process house. The processhouse is in Mordi (Banswara)the fabric after finishing is is recalled from the process house but the Export Quality does not come Back, it is directly Exported. RSWM , Gulabpura has also passed the test for supplying fire retardant fabric to railways. The unit also enjoys accredition for supplies to aircrafts and also to Naval establishments.

SQC (Statistical Quality Control) Each fabric in order to be approved has to undergo a series of Tests. First of all the strengths of the yarns imported from outside the plant has to pass the Fibre- strength Test and Count strength Test, the unevenness and wobbling %age are checked. Then the fabric has to pass the assorted tests like: Crease Recovery Tearing Strength Shrinkage(chemical) PIlling

 Fabric strength Colour fastnessd Heat tests The fabric failed here is sold in the domestic market at very Low prices. Some of the Defects like Pilling and Spotting can be furbished in the process house but the major indictable faults cant be corrected. Designing: The most imperative of all the departments is the designing departments. The current colours, Material, look, finish, weave, and cloth are the things that fluctuate the production the most. The production is market sensitive and so subsists in Todays sky Rocketing market one has to change according to consumer sensitive market. The main product attribute is poly- viscose, the price is too low and basically focuses on the lower market segment and hence innovations are not at all frequent. Considering the market situation the production has to take a u-turn and they ultimately have to resurrect to the production of premium Range. Though the work of the designing department is to innovate new designs to make the product not just sale-able but to invoke in people the Tempo to purchase the product, for that the market demand has to be considered. The designer survey the market and even the feedback from the marketing people is received at times the designs are also inspired from the foreign magazines and when the job production for exports is undertaken then they also suggest the design and the weave of the fabric. The design once passed is experimented in the blankets then out of these the cards are prepared then the meeting is held with the marketing personnel who have placed the order at times these cards are send to the customer outside India who places the orders for job production for ultimate approval.

Marketing (Domestic) Looking to the present market situation when the market is under recession, the market has extensively declined for poly- Viscose so to carve a niche in the market for the major producer of the poly- viscose is really a tough going. So the unit is going for all types of production job, Batch and Mass production. But the problem lies somewhere in the cyclical phase of the market as the impulsive. Purchases are taste bound rather. Many of the leading companies favor high prices for almost the same product range to skim the market like Grasim, Raymond etc. Market skimming makes the sense under the following conditions: A sufficient number of buyers have a high current Demand; the unit cost of producing a small volume are not so high that they cancel the advantage of charging what the terrify will bear. The high initial price does not attract more does not attract more competitors to the market. And the high price communicates the image of a superior product. A company might aim to be the product- Quality leader in the market, vie-a Vis RSWMs Mayur. In order to retain itself in the market the company has started manufacturing Poly- Cotton, Tencel, Polynosic, and fabric for RMG (Readymade Garments) They are catering to all leading Brands. They do Job production for these selective companies. They are catering to the premium segment of the society by the indirect supply of Tencel. And Polynosic, which are infect impeded by the readymade garment manufacturer which needs the high precision stitching. The RMG customers for Mayur fabrics are Provogue, Madura , Arvind, and Mohan RMG Maral. Only the Trouser lengths are supplied to these RMG manufacturers. They have also started manufacturing fire retardant fabric.

As for the media- Mix, the company has promulgation plan. Earlier Shahrukh Khan was associated with Mayur. The hiring of shahrukh Khan gave impetus and Tempo to the product sale, which augmented up to 70-80% in 1992- 1993 because of the celebrity tag attached to it. The association was annihilated due to his high prices and the product sale diminished owing to the fact that there was no Brand image and equity as the company was never able to establish any strong and mental association with its customers. Whilst the Brand name recognition and perceived Brand Quality and other assets like Channel relation ships were not all that strong. The next tele commercial was done by Foresight ad company with Chandrachur singh , that proved rather detrimental than to improve product image. Continuous Bombardments with ads, Medias and Telecommercials can never elongate the market specially in suiting. And now days Virendra Sehwag has well impact on consumers. Though the advertisement budget is of RSWM is almost 4-5% of the entire sale of Mayur Fabric, which is the set amount according to the Industry standards. As far as the FRC are concerned, this is explicitly an industrial product and it sell due to relation based Marketing and need no TELE- Commercial.

Another way to advertise is Gift media, focusing basically to hold the mind of Loyal Customers. The Budget share of the Gift media is usually 25- 30% of the Total advertising Budget. Then comes another media weapon that is electronic media30- 40 of the Total advertising budget is held by this media. Hoardings are another section of print media that is outdoor publicity like Tough fabrics for little Devils Marketing (Export) Companies cant just stay domestic and expect to maintain their market. Despite the many challenges in the international arena (shifting Borders, unstable Governments, foreign exchange problems, corruption and technological Pirating) companies need to go global. The company is on good marketing terms with South African Countries and the Gulf due to the cost effective and Durability standards. The colour, trend and choice of the people there is commensurate to the P/V fabric production. But the market of the Mayur Fabric does not have good share of the markets of the European countries, American countries and Australia. These markets basically demand the eco friendly elegant and ecstatic feel of the cloth. The Export of the Mayur is done from Mordi process house although the procurement of the Export orders is done from the Mumbai head office. Budget: Spinning: During the preparation of the Budget several considerations are kept in mind and henceforth all the expenditures of each step per day for each different type of yarn is prepared. The report so prepared are on the unify system still as the work of installing the ERP is in the second progressive stage. The foremost step is the preparation of FRS (Front Roll Speed) report in which the RPM of the winder roller is recorded. This report is prepared For all the 5 mills of the unit for all the machines in the installed and working. The wrapping test report is prepared where by for every count of each yarn different value is incurred and different valuation is done. There fore this report also is done on the individual Basis for each machine. For the production losses, Breakdown report is prepared. Losses for all the five mills, the total number of idle spindles, marginal costing and wastages are recorded here under. Costing of the useable wastage and saleable waste is recorded. The daily gain and loss report is prepared.

The report for daily power consumption is maintained. How much electricity is consumed for running the spindles and cost incurred in running them. The monthly report is prepared which is the consolidated report for the whole spinning section. The report for total raw material is how much it is consumed is also prepared. Then at last procurement of raw material is prepared.

Weaving: while making the budget for fabrics, the marketing personal give details about the current market demand and its structure. Then marketing programme is framed and according to the market, Quality and production are undertaken as per the production plan. There the Budget estimation is constituted. The work is still on unifying system because ERP system is in the second phase of progress. Each Quality descriptions comes from finish folding department with estimated costing comes to the Budgeting section and the value loss report are prepared there. Every machine has got different charges weaving charge is a consolidated figure of Wage salary +Power and water expenses +Insurance +fixed interest + Depreciation + Fixed overheads + Stores. Quality wise fabric production detail report is prepared then breakdown report is prepared Then profit and loss report is prepared. Then procurement of raw material and its consumption is prepared.

Finish- folding: This is the last station for the fabric, where it is Examined and approved for various kinds of processes it has to undergo. The cloth is manufactured in Beam length that is equal to 350 meters the fabrics so approved are send to Mordi process house for further finishing and processing. Then they are send back to the unit but the fabrics for the export are directly send to Mumbai on the Wagons the whole sections is categorized into grading, folding, stamping , trigging , trouser lengths, screening/ sampling, noting and packing graders check the material for defects, gaze and meters length then they grade the fabric accordingly. Next step is of Folding, which is carried Out by the folders. They also check the fabric and fold them. The stumpers do stamping. The taggers apply Tags to the various brands but of course according to the brands. Trouser length and cutters cut the fabric with a minute defects in to trouser lengths. Screening is done in the screening section. This department is the most imperative one to

The marketing people as this are the place where sample are prepared to procure the orders. the best piece is cut down from the fabric. On 5 th and 20th of every month the personnel of process house of mordi and marketing people come to check the quality of the fabric. Weaving personnel come on and off to check the weaving defects. But various defects can be encountered while examining the fabric. These defects can be due to yarn , weaving and processing. Defects due to yarn: Yarn Patta Slub Neps Coarse end/ count Defects due to weaving: Design Cut Missing end Float Shiners Loom oil Reed mark Temple mark Loose ends Weft bar( machine fault) Jhiri Starting mark Denting/wrong drought Holes/ fold mark Amri cut Stoppage loom Defects due to processing: Streaks, Fold mark Crease mark Colour spot Singeing burn Handling dagi Mooncut Oxidation mark Border cut process strain Guider abrasion colour patchy border cut process stain

Guider arasian Wrapper Mangledagi CSU(Central Shade Variation) Face back

Than are prepared for the domestic market in a set of 7.20 to 12.00 meters Where as for export, than prepared are of 20-40 meters length. Then there are short lengths than as 1. 3.60-6.00 meters for suiting 2. 4.50-6.75 meters for shirtings 3. 8.00-25.00 meters for shirtings Safari- the standard lengthis2.40meters Shirting-standard length is 2.25 meters The various departments of RSWM are as follows: Personnel department and administration department Production department Commercial and finance department Marketing and sales department Personnel and Aministrative Department: The general manager looks after all the personnel, Legal and secretarial matters of the company. He reports to the executive director to the president. reporting to him are the factory manager, labour officers, security officer, legal advisor etc. Some of the functions carried out by the personnel department are: Recruitment & selection: Rajspin has got its own recruitment and, selection and training system. A person in the age group of 22-28 years is inducted and imparted training for various specialized fields. The recruitment and selection of the technical personnel and managers is made through placing advertisement in leading newspapers, journals etc. Working: There are three shifts in a day. The first shift starts with the prayer of employees and the workers in the morning (i.e. 7A.M. 3 P.M.)Every member and staff member is prescribed in uniform. At present there are about 3500 workers, 325 staff members and 35 managers of the Roll. Union Management Relationship: In respect of general matter of the common interest, union and management handles them through negotiations. After the discussion and Agreement is finally signed by both the parties.

Production Department: This department is divided into two separate sub departments: Spinning department Weaving department

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Spinning Department: Spinning is the heart of any composite mill. Here the fibre is transformed into yarn. The fibre is passed through different machinelike Blow room, carding, Draw frame, speed frames and Ring frames

Process sequence: Raw material: Common raw materials in Synthetic spinning are Polyester, Viscose, Acrylic, Nylon, and polypropylene fibres. These are received in the form of Bales in dyed and grey conditions. Mixing: It is the first stage in the spinning process. Here the fibres are being mixed to avoid the generation of static chare, some anti-static agents are added to mixing. Mixing is done in blender Blow Room: The Mixing is further opened. So that the wastes like hard chips are removed. In this section, input is in the form of the fibre while the output obtained is in the Lap form. Carding machine: Carding is the process used to get all the cotton fibres running in one direction in a long thick length called slivers. Then the lap form is treated in the Carding machine. Feeding by Lap or in opened stage, the fibres are individualized hared chips sort fibres and entanglements are removed in the form of dropping, fly and flat strips respectively. The product is Card sliver. Carding is the heart of spinning. Draw frame: The card sliver is subjected to doubling and Drafting process to parallel the fibre and to make uniform sliver. The fibres are in the haphazard way in the card sliver and to make the fibre oriented the sliver is passed through D/F Make- L R Model- DO/25 RISTER SB 95L No. Of D/F- 30 Simplex or Speed frame: The draw frame is drafted, slightly twisted and wounded on the speed frame Bobbin , for the formation of Roving. Here the input is sliver and output is Roving. (Roving is the process when fibres are drawn out and twisted in preparation for spinning) Ring frames: Spinning of roving into yarn of required count and twist is done here. The input is Roving and output is single yarn. Cone winding machines:

 Electronic gauges clear defect in the yarn and cleared yarn is wound on Cones. This package is in the big size.

Cheese

CONE

TFO: Two for One Two twist inserted in one revolution. In the doubling twist is imported to the yarn wound on the cheeses. Here doubling defect is also removed from the yarn. Packing: All the cones, after the checking are packed in Cartoons or Bags as per the established packing process and send to the yarn go down.

Weaving department: Weaving is a process of interlacement of two sets of thread called warp and weft. Weft: The weft is the yarn or thread, which runs across the loom. Warp: The weft threads that are passed over and under the wrap threads to make cloth. In a mechanic loom a shuttle carries the weft. As per specification given by the design and development department. Weaving department produce required fabrics. It has the following two sections: Preparatory section: It includes wrapping, sizing and drawing. 1. Wrapping: according to the number of ends in the fabric and actual length of the same wrapper beam is prepared. The wrapper can be prepared in two ways either in direct or indirect way.

2. Sizing: if required the size is applied on the sheet of the yarn, so that it can with stand the abrasion and beat up force at loom stage.

If the yarn is used then the sizing is required but if piled yarn is used then no sizing is required. 3. Drawing: it is the process of threading the yarn into the held eye and then from the dent of the read according to the design. Prepared fabrics are sending to the gray folding department where folds are detected and removed. From here the material goes to processing house. Dye House; It is the integral part of the production department. In this department mainly polyester and acrylic fibres are dyed. Samples are prepared on the beaker dyeing m/c, and then yarn is prepared and matched with the actual sample visually. After the sample is checked, the mixing proportion is send to the development department. Here with the help of the miniature spinning plant yarn is prepared and checked on computer. Approved by senior officer it is send to the party (customer) for selection. Computer performs following three functions in this department: 1. Colour matching 2. Keeping stock position of colours and chemicals 3. Preparation of production slips Design and Development: Various samples are developed fabrics are produced in bulk. Various shades are developed and given to marketing executive, agents &dealers, new designs and shades are also produced according to their choice and Demand. 1. The feedback of the latest design and development in a market gathered through various sources like market report and latest trend in fashion industry 2. Feedback from the members of the distribution channel. 3. By tracing the popular design and shade of the competitors like Vimal, Raymonds, Siyaram etc. some of the design are developed in house by professional designers of the organization. Apart from these function the department maintains tight quality control through its laboratory and statistical quality control process. Commercial and Finance Department: This department is also divided into two sub department, and headed by general manager (commercial) and another by vice president (finance). This department takes care of preparing spinning Budget, estimation of exercise, fibre purchase various legal matters related to commercial aspects of the organization, stores and the department of electronic data processing (EDP)

This main function of finance is to plan the procurement of funds, taking various investment decision, preparation and maintenance of balance sheet etc. one of the important function included liason with Banks. The main Bankers of Rajspin are: Bank of Rajasthan Bank of Baroda SBI Standard chartered bank Global trust Bank U.T.I Bank Marketing and sales Department: The functions of marketing and sales department are profound under the regime of vice president (marketing) who reports to Executive director through Vice president. Reporting to him are manager of Domestic /export sales, manager (Publicity and advertising), manager of gray folding, packing and warehouse. Thus the department is divided into two main divisions: Export sales Domestic sales Export Sales: There are two ways of procuring the order: a) Sending a sample through the mail to the parties. b) To move with the sample personally The second way is found more effective. In this case, executive move with the samples and the party requests to open a letter or credit as their respective banks, after the quality and price is agreed upon. From the mill the products is packed and send to the Bombay office for documentation. After documentation the product is send for shipping and payment slip is submitted in the bank with 15 Days. Domestic Sales: In domestic market the order are procured in three ways: Sending the samples personally through mail to the respective agents and dealers. Inviting the dealers at particular place (hotels etc.) where the product demonstration and order are booked there by. Dealers come to the mill and select the shades and Designs according to their requirement and place the order for the same. The fabric of Rajasthan spinning is marketed under the Brand name of Mayur Suiting. The organization has its own publicity (advertisement and sales

promotion) department, which entrusted with the task of preparing advertisement Budget for the year and to place order in various advertisement agencies according to their planning. About CPPC CPPC was formed on 1st June 2002. It is a centralized unit for production to solve the entire production related problem at one stage only. This centralized unit is known as Central Production planning Cell (CPPC). CPPC Comprises of an experienced Team of Production Planners which act as a bigger strength to the company, who ensures that every thing happens on time. The main departments under CPPC are: 1) Dying 2) Spinning 3) Weaving 4) Processing There are seven marketing areas: 1) 2) 3) 4) 5) Mayur Domestic: Selling of Fabric in India. Fabric Export: Fabric is exported outside India in other markets of the world. Yarn Export: Yarn made is also exported to the other countries of the world. Yarn Domestic: Yarn is sold on Regular Basis as per order. Ready Made Garments: Ready made Garments are also sold to Allen Solly, Van Huesen. 6) Institutional selling: Institutional selling is also followed By RSWM to institutions like Police, Military and Schools. 7) Flame retardant: Flame retardant is produced as a Niche Product. CPPC plays a very important role. All the problems of production are solved at one place in one Cell.

Statement of Objectives The market for the suiting & shirting is one of the most competitive markets in India, and to sustain and grow, one needs to be really focused, alert and innovative. It is very crucial to simultaneously keep a track of the changes in the marketplace, changes in the consumer behavior & preferences. Another important feature of this market is the high reliance that customers have on the retailers for deciding their purchase. Thus, the power in the retailers hands is also high. In this situation, it is extremely important for any manufacturer & seller and Mayur, per se to regularly take feedback on the consumer perceptions and tastes, and the retailers feedback. This results in identification of areas where some action is required, be it the margins of retailers or the change in product, price etc. In light of this backdrop, the objectives set out for this study are: 1. To ascertain the position of Mayur in the minds of the Consumer 1.2 Understand the consumer buying behaviour 2. To assess the satisfaction level & efficiency of each stage In the distribution channel (Agents, Wholesaler, Retailer) And take their feedback 2.1 In partnership with the retailers: Learn about the consumer buying behaviour at the Retail outlet 2.2 Take their feedback and the customer feedback from Them. 3. Develop a plan of recommendations to enhance the customer and the dealer/retailer satisfaction.

Research Methodology Type of research The research was exploratory in nature. The objective was to understand and explore the consumer behaviour and the retailers perspective in detail. Scope of the Study Mayur is also being exported but for the purpose of this study, the scope of the study has been kept limited to the Domestic market only. Modus Operandi The methodology for conducting the research has been focused on surveying the retailers, agents and the consumers. The consumers and the retailers were surveyed for two different regions i.e. the rural & the urban markets. Definition of the Population Consumers All the people (men, women young ) form the universe of the study. Retailers The approved retailers of Mayur as well as other retailers formed the population for the Retailers Survey. Agents Mayur has close to 24 agents all over the country, thus the population size for this survey is 24. Sampling Technique Used Consumers Simple random sampling was done to select the consumers at the textile shops and in the market. Retailers The sampling technique was a three stage stratified sampling. At the first stage, the two strata were-the rural and the Urban markets. At the second stage, the urban market was further divided in different strata based on the size of market, location and the type of market. Similarly, for rural markets, different locations were identified. Some markets were chosen for reasons of their ability to represent all kinds of shops. At the third stage, from each of these markets, the retailers were picked at random and interviewed. Agents All the agents were sent the questionnaires by post.

Sample Size Consumers (120) Rural (50) Urban (70) Retailers (50) Rural (30) Urban (30) Agents (24) (only 6 responded) Data Collection Primary data collection Consumers Structured interviews based on questionnaire Retailers Structured interviews based on questionnaire Agents Mailed questionnaires (22) Structured interviews based on questionnaire (2) Secondary Data Collection Research papers available at the RSWM World wide web

PART B

Segmentation, Target market and Positioning

Demographic Age wise segmentation Monthly Household Income (Rs.) Social Class 16-23 24-34 34 Above Below 5000 5000-10000 10000-15000 15000 above Sec A (Upper class) Sec B (Upper middle class) Sec C (Middle class) Sec D (Lower middle class)

Sec E (Lower class) Geographic Metros Mini Metros Class A Towns Class B Towns Class C Towns Rural Occasion Behavioural Regular, Occasionally

Urban

Target Market
On the basis of Market Segmentation Mayur is targeting its various product lines:

 Its new Range Geetanjali is targeting to the Economy segment. The new Bonsai range is targeted to the Middle class and upper middle class

Positioning

In the past, the Mayur Suitings brand campaign has been themed around `stars ki pasand' (what the stars like).

The concept of ``fabric with feelings'' has correlation with the importance of feelings in the personal and social lives of every individual-like gifting the new fabrics on the occasion of marriage

Marketing Mix
The current marketing mix is as follows:

Product Product Ranges-Yarns

a) Commodity products 100% Polyester 100%Viscose 100%Acrylic Polyester Viscose Blended Polyester Acrylic Blended Acrylic Viscose Blended

b) Industrial yarn 100% Polyester Sewing Thread (Super high Tenacity) 100% Polyester multifold (5kgs. Cones) 100% Polyester

b) Hi-Tech yarns Tencel standard Tencel/ Polyester blends Flame Retardant Flame Resistant

 Micro polyester & Acrylic Polyamide Blends Lycra Twisted yarns Mlange Yarns in polyester or Acrylic Polyester yarns Optical white yarns c) Specialty Yarns Polyester Linen and Viscose Linen yarns. Slub yarns Neppy Yarns Super high twist Yarns Polyester/Viscose Texturised yarns Tusser silk Blended yarns Mottle yarns Polyester/ wool Blended (Dyed) Z/Z Crepe yarns Polyamide/Polyester/ Lenin yarns Tencel/ Textures Twisted yarns Carpet Yarns Cationic polyester blended Polyamide/Wool (70/30) Anti Pill- Polyester Hydrophilic Acrylic d) Packing cartoon and pallets

Product Ranges- Fabric

Weaves Twills Tropical Satin Fancy Blends Polyester/Viscose Polyester/Cotton Polyester/ Wool Tencel and its blends Lycra with Polyester and Viscose Polynosic with Polyester Linen and its blends Flame Retardant Blends Polyester/ Polyamide

The new ranges introduced to compete with the Bhilwara mills are: Geetanjali (Economic Range) Bonsai (Gift Packages for occasions)

Pricing
Prices of the product range vary from the lowest price to the highest price on the basis of Yarn used Dye used Weaving methods

Place
The distribution channel is as follows:

Distribution channel
Fabric Manufacturer

Agent

Dealer

Retailer/Stockist/ARC

SWOT Analysis Of RSWM (Mayur)

To understand about the composite industry of India, the market dynamics, in the process to frame an action plan, we really need to look certain things in detail, which will form a picture of the current status Rajasthan spinning and weaving mills Ltd. One we must understand the strengths on which Textile mills and composite mills can capitalize and leverage on them to attain a more competitive status and thus improve its performance and image in terms of product Quality, price competitiveness and to top it all, the market shares. Here we call strengths as certain Advantages that lie with one company and place it on a higher platform either by leveraging the distribution channels, established brand equity, innovative product development structure or association with internationally accepted brands. While a business concern devices strategies for itself they leverage on the strengths keeping in the mind the constraints i.e. weakness and convert each opportunity from a potential gain to again in hand. This is not a process in isolation because in a business environment many factors operate simultaneously. Few of them can be speculated with a certainty whereas for few others there is lot of underlying uncertainty which cannot be easily provided for and retaliation is the only alternative that lies with the concern. This is where come into play the apparent threats and the many not so apparent on the face threats still potential in nature .this had to be dealt with and in the process maintaining the focus towards reaping the most out of every opportunity.

Customer

Having done an analysis of the trends in the market and the fast pace at which other Brands is catching up, it is very important to take charge of the situation, and do analysis of strengths, weaknesses, opportunities and threats.

SWOT analysis of Mayur will lead to a lot of tough exploration and paint an insightful picture indicating clearly, where all it needs to focus.

STRENGTHS Mayur One of the largest composite mills. All the operations are carried on at one place only. One of the units which is independent. CPPC is one of the central cells which solve the problem of all the sections at one single place and resolve the problems as soon as possible. Positioned as Fabric with feelings Marketing to Corporate It also has Computer Aided Design Systems for Designing and all State-ofthe-Art Systems for the Cotton System of Spinning, Weaving and Test Equipment.

Mayur Suitings is the leading brand ofWeaknesses Rajasthan Spinning Mayur & Weaving Mills - the flagship The incentive to the retailers company of LNJ Bhilwara is not in tune with the Group competition. Award received from the Awareness regarding Mayur Synthetic and Rayon Textiles is low, specially in rural Export Promotion Council markets. (SRTEPC), Low advertising results lower It has established a brand recall in consumers mind. name for available at nearly Mayur is its products and is also planning butacquire more every retailer to the viability brands retailer is overlooked. for the Costly range of fabrics

Opportunities Mayur Increased reference by retailers. New product Geetanjali and Bonzai needs to be advertised. The company should focus on its core competence. Become market survey; offer innovative schemes on promotion different

occasions. Instead of being everywhere with low & interest of the the retailer, be at most of the places linkage strengthen with retailer to Threats Mayur increase the sales. China marketwith the readyComing up is the major threat. garments will be made LNJs other unit Bhilwara is beneficial. producing the same cloth and is selling at lower rates which is eating up the sales of Mayur Local players and Fly-byNight operators, selling at extremely low prices

Summing up the SWOT analysis

The approach that Mayur have taken differs on certain key aspects. Mayur is one of the largest composite mills in India.

 All the processing after procuring the raw material which is fibre to make a cloth is done at one unit which is divided into different departments. It is also focusing on industrial marketing.

From the SWOT analysis, we understand many factors on which Mayur has to focus. Mayur has to now see for itself and focus on certain things which it does not have as strength, but others are focusing sharp on it. It should see that some of these have nots are very critical for capturing the mind-share and heart-share of the consumers.

FINDINGS Zone: - Jaipur

The findings of the research have been classified in these three categories: Findings from the Consumer Survey Findings from the Retailer Survey Findings from the Agent Survey

Findings from the Consumers Survey

Since the consumer survey was done in rural and urban areas, A huge chunkform the findings of buyers buy only on the rural and urban consumers survey are separately listed. special occasions like festivals, Consumer survey in Urban Areas The first preference is branded clothes but for most of them, what they actually buy is different from this. The factor playing the leading role is price The customers are loyal to the retailer and they always buy from the trusted retailer. They buy what their retailer trusts and keeps in his shop. From those customers who have used Mayur, there were complaints of bobbling and loosening of the cloth after wash. When people go to buy clothes, the brand name of Mayur is not on their minds. People remember the advertisements of Raymonds and Grasim more than the Mayur People are now increasingly buying imported clothes, good quality at competitive rates. The middle & lower middle income groups perceive imported cloth as a brand in itself.

The association of the brand Mayur with these film actors is as shown.

People who have tried "Mayur"

In the urban markets, close to 60% people have never tried Mayur.
40% 60% Yes No

Factors in order of importance

6 5 4 3 2 1 0

Pri c

ec

Bra De Pro Qu sig alit nd du ns y le ct Im on att an ag s id ve rib dc e l era ute olo tion s urs

Quality along with other factors like designs, brand image play an important role. The attributes like the kind of weaving, the kind of yarn & the technology used, play the least important role.

Rating

factors

You Prefer...

25%

12%

unbranded cloth Branded Both Imported

23%

40%

The purchase mix of the urban people contains a share of unbranded, imported clothes with a higher share of the branded clothes.

Satisfaction Level with Mayur

Highly satisfied Satisfied

45% 10% 5% 10%

Moderate satisfied Dissatisfied Can't Say

Nearly 45% of the customers are cant say. No Customer is highly satisfied with the product of Mayur.

Frequency of Buying Clothes

10% 20% 58%

Most people buy on occasions.

Once a Year Twice a year Thrice a year occasionally

12%

Association with Actors featured in our Adertisements

15% 20% 35% Shahrukh Khan Virendra Sehw ag Both N one

An equal percentage of people associate it with Shahrukh khan and Virendra Sehwag .

30%

Consumer Survey in the Rural Areas

From those customers who have used Mayur, there were complaints of bobbling and loosening of the cloth after wash The customers are not aware of the brands in the market. They solely depend on what the retailer shoes to them. Their decision is highly influenced by the retailer When they go to buy, they specify the range and then the retailer decides what fits in their budget range They buy most often from the local vendors selling in maruti vans; low price is the driving factor.

Qualityassociation ofother factorstried like Close toalong people have brand Mayur The Apart 55% price, the never that from with other factors designs, brandthe purchase decision is This Mayur. with these film actors is very low. influences image play an important role.durability. our choice of the kind the indicates that The attributes like media for of weaving, the not effective. yarn & the rural areas is kind of technology used, play the least important role.
Factors in order of importance
Rating
6 5 4 3 2 1 0

Pr ic

co

Pr od n. ..

uc

ta t .. .

Br an

De Im ag

si

gn

Qu s a. .

al

ity

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ve

factors

Association with stars featured in our ADs

20%

Apart from price, the other factor that In the urban markets, close to 80% people haveinfluences the choice/purchase is never tried Mayur Durability.

35%

Shahrukh Khan Virendra Sehwag 20% Both None

25%

factors influencing the purchase

35%

30%

fashion Durability Both

Mayur is not on the list of brands with high recall value.

35%

Brand Recall People who have tried "Mayur"

Ranking in descending order

4 3 2 1 0

Raymonds Grasim others 45% others

You
55% Reymonds

P re fe r-

Yes No

The purchase mix of the urban people contains a share of unbranded, imported clothes with a higher share of the branded clothes

Grasim

23%

0%

Brand Name

u n b r a n d e d c l o th B ra n d e d

54% 23%

B o th Im p o r te d

Awareness about New Product Range

20% Yes No 80%

Very less people know about the new product ranges. No awareness..

INSIGHTS FROM THE CONSUMER SURVEY

Thats one of the most interesting finding that we came across in the process of interviewing the consumers. If we ask ourselves, what does Mayur as a brand promise to the buyer; the answer is: quality, Fine fabric and fabric with style which the stars like. The very fact that a considerable percentage of people are buying clothes of unorganized mill indicates that they feel the need for clothes which suits to their pocket economically, and a reasonably good quality. Also, the fact that they are buying the products with local mills means that they see some of these advantages, or the values being fulfilled by these low prices local products. In the rural markets of Rajasthan, people assertively say that what matters at the end is the quality of stitching.

A suit stitched suit out of the cloth of any local mill, is well stitched looks as good as any other branded suit. In this case, the good looks to the suiting and shirting can be given by Tailor. If we take cues from this kind of consumer behaviour, we really need to introspect, and do it hard, with the basic question that we have not been able to communicate a considerable amount of differentiation for our brand Mayur, from the local players. When we explore the question for urban markets, where people do buy branded clothes, the findings are as follows. It is the Brand name and the perception which tilts the decision of the consumer towards other brands. This perception can be directly attributed to the advertising of the company. If people are buying Raymonds, its so much because of their brand building efforts. It is the Strong Brand Name Communicated to the people. And now the same strategy has also been used by Grasim, which is positioning itself as Cool fabric. When ever the consumer is planning to buy clothes in hot summer days, the first name that comes to their minds is Grasim. Positioned as a fabric with a temperature below 5 degree from outside. This is how they have made a strong positioning statement and created differentiation in the consumers mind. Thus, Mayur needs to do a focused communication telling how Mayur is different and what does Mayur offer and promiseIt really has to work hard to create something more than the stars ki pasand'; to show to the Consumer what is mayurs unique selling proposition.

FINDINGS FROM THE RETAILERS SURVEY

The retailers were covered from both the urban as well as rural markets. The findings have been separately depicted in the form of highlighted points and pie charts. Common Findings from the Urban & Rural Retailers No representatives of Mayur Mills visit them for suggestions, understanding their needs. No retailers meet/conference is done, there are no organization activates for the entire team. The retailers are working aloof in their areas, in their own ways. Low motivation and attachment with the company. Very less number of glow signs and boards. Even on retailers demand, they are not given. The retailers are not aware about the new product range of the company. In the villages, it is nil. In the urban market, it is minimal. According to the policies, the retailers have to pay a sum of money to get the name of their shop, printed on the poly bags. Most of the retailers have this grievance that even after making the payment, they get the poly bags without their shops name.

Unlike other companies, Mayur never undertakes any retailers survey. The retailers are not very happy about it.

The retailers fear and hence are hesitant in pushing the brand Mayur because of the customer complaints they had to handle on account of the loosening and bobbling of the cloth. The ARCs (Approved Retail Counter) are less worse off than the Stockists because they can return the defective stock to the company. The retailers do not want to damage the trust customers have on their shop and thus, minimize all such opportunities. These opportunities are the sales for Mayur.

The incentive on selling a product of mayur is too low to motivate them to sell it against the other offerings where they are also able to manage reasonable margins.

The retailers are linked to the company through the wholesalers and there is no direct communication between the company & the retailer. The representatives from the company visit few retailers in bigger cities but in the rural markets, the retailers are left in isolation at the mercy of the wholesaler. The company is losing sight of the fact that it is the retailer who plays the most crucial role in the purchase decision of the buyer. The role of the retailer increases as we move from the urban to rural markets. Here, we are weakening our linkage with the retailer as they become more important for us.

The product range in terms of colour and designs is too less.

Findings from the Urban Retailers

The designs as well as colour shades that Mayur is offering is not in tune with the changing taste of consumers in the marketplace and the trends. Mayur is still selling the same old thick cloth, whereas people like fine, smooth clothing. Because of this problem, we have to bring in other brands otherwise we tend to lose our customers to retailers who are selling those brands. This is leading to a drop in the sales of Mayur.

They assertively say that they dont even know whether Mayur has taken cognizance of this fact, because their is no feedback flow from them to the company.

AThe average turnover of the do not ask large number of customers retailers in for a particular brand. lakhs to 1 crore. urban areas is Rs. 50

Most of the retailers are not aware about the new product range of Mayur.

Turnover of the Retailers Most of the retailers in the urban area have an annual turnover of 50 lakhs to Rs. 1 crores.

0% 35% Less than 50 lakhs 50 Lakhs 1 crore 65% Above 1 crore

Do People ask for any Particular Brand ?

44% 56%

Yes No

Awareness about New Product Range

30% Yes

The awareness of most of the retailers about the new ranges launched by Mayur is very low. This shows that the new brands have not been promoted well.

Which brands are you selling?

70%

No

4 3 2 1 0 Raymonds Mayur Siyaram

The brands that retailers are selling are shown here. the reach of Raymonds is the highest. It shows that the availability of Mayur is just next to Raymonds, then where is it lacking? Answers to this have been explored in the study.

Satisfaction level with "Mayur"

0% 45% 55% satisfactory poor high

The retailers are just satisfied with Mayur. The percentage of dissatisfied and unhappy retailers is alarming.

Performance on delivery front is satisfactory

Delivery time

The largest target income group level for Mayur is Rs. 5000 to Rs. 10000 per month.

12% 11% prompt delivery average 67% huge delays

A major area of complaints is inconsistency in the quality within the same roll of cloth.

Quality &Consistency
20%

25% very high average poor 55%

The assortment mix of the retailers consists of both branded and unbranded. Few retailers keep only unbranded & branded.

Retailers dealing in...

30%

35%

Branded Unbranded Both

Which income le v e l group would M ayur?

2% 5% 17% 1%
Les s than Rs . 5000 Rs . 5000-Rs . 10,000 Rs .10000-Rs . 20000 A bov e Rs . 20000 Can't Say

35%

75 %

Findings from the Retailers in the Rural Markets

These retailers just do not want to keep Mayurs products. It does not get sold because of : High Price, quality failure. For the retailer, it results in : Blocking of working capital Risk of losing the buyer (quality problems) Unproductive occupancy of shelf space

The retailers insufficient.

margins

are

Annual Sales Turnover

0% 3% Less than 2 lakhs 2Lakhs 5 lakhs Above 5 lakhs 97%

Most of the Retailers are small Quality & consistency is less retailers with annual turnover of a major area than 2of dissatisfaction of the consumers as lakhs. well as the retailers

Retailers are dealing in...

10% Branded Unbranded Both 70%

Most of the retailers are very small retailers with an annual turnover of less than Rs. 2 lakhs.

20%

The responsiveness of the company ahs been rated average.

Do people ask for any particular Brand?

30% Yes No 70%

The satisfaction level of In the rural markets, most of the the retailers retailers with the incentives is few keep local brands, low. keep branded & unbranded clothes.

Profit Margin WhichQuality and Consistency buy Income level group would Delivery Time satisfaction Mayur? returns & Level with 0%
25% 33%17% 2% 60%
15%

incentives 15% 40%

1%

17%

25%

Generous
Less than Rs. 5000 Just Adequate Rs. 5000-Rs. 10,000 Inadequate Rs.10000-Rs. 20000 Above Rs. 20000 Can't Say

prompt delivery very high

Yes average average

Very few customers ask for a brand; even many of these customers buy local brands. They generally begin group The mode income levelwith the price Mayur buying range. is R. 5000 to Rs. 10000 p.m.

huge delays poor No

50%
85%

65% 50%

FINDINGS FROM AGENTS SURVEY

The satisfaction Level of Dealers is Low As the incentives are low and there is no Brand awareness and with out Brand awareness very less customers are there who can Buy Mayur. The overall support of the company is low as the actions on the complaints are not taken. The Monetary return which acts as the motivation factor is Low. The support from the company in terms of brand building efforts & advertisement, which helps the retailers, is very little. For the good performance of the Regional Teams, Conferences should be held and special guidance should be given to the retailers and others in the supply chain to increase sales and perform better. Other companies are going with Business Growth needs But No serves are conducted By RSWM or no direct feedback is taken from people at different levels in the supply chain. The company is not trying to create awareness and Differentiation in the mindset of people, which can help Mayur making a special position in the mindset of the people. The Designs and colours are on the same old pattern. Mayur should go with the Market. Today the choice of the consumers is the fine clothing and people prefer Fine and light clothing. The trend of the Heavy clothes is gone and Mayur should produce according to the Demand. The policies are only in Papers they are not implemented fully. The policies should be more retailers friendly so that it acts as a motivation factor.

Recommendation Plan
From this survey conducted on the retailers as well as the consumers, lot of issues/factors have been identified that directly or indirectly affect the sales and market position of Mayur. Some very interesting and crucial findings were arrived at, which should really be seen as trigger points for further research and change in the practices that are followed today. The recommendations have been grouped in three categories; One, addressing the Business Strategy Two, addressing the Customers; and Three, addressing the Retailers.

1.

Strategic Focus

Mayur has to rethink on what it wants to position itself, what it wants to stand for. It cannot be a one stop shop for all the segments. Each firm needs to have a clear strategy i.e. either cost leadership or differentiation? Firms that dont pursue a clear strategy middle of the readers do the worst. On one hand, we are catering to the higher middle-income group by offering differentiated products at relatively higher prices. Here, the strategy is to position us as higher in perceived value. On the other hand, we are also offering products that compete with local brands and here we are competing on price. The strategy followed is cost leadership.

These two strategies followed by Mayur are inconsistent and incompatible. If Mayur tries to cater to both these segments, it will end up being not particularly excellent at anything. Clarity in the strategic focus has to be brought about because different strategic dimensions require different and often inconsistent ways of organizing the firm.

2. Recommendations addressing Retailers Concerns

This has been very clearly depicted in the Findings section related to the Retailers, that all the other retailers (stockiest) except the ARC(approved retail counters) are linked to the company only through the wholesalers. The ARCs are directly linked. The problem identified was: a communication gap between the company & the retailers. This gap is a blatant error, because we now understand the important role that the retailer plays.

2.1 Appointment of Company Sales Representatives The company should appoint the sales representatives who go and

visit each retailer. The retailers in the rural markets should be covered. These sales representatives should act as channels of

communication between the two and take the retailers feedback and canalized it through the company.

2.2 Apart from the sales representatives, the whole network of retailers should be made more cohesive by forming a database of virtually all the retailers who are selling Mayur and keeping in close touch with them. They should be made to feel that they are an important identity for the company and that they are recognized.

2.3

Appropriate return and exchange policy should be formulated after a discussion between the agents of the distribution channels and the company representatives.

2.4

Relationship building with the retailers should be done by introducing formal mechanisms to take their feedback. On festivals, there should be some special incentives for the retailers. It can be discounts, or some non-monetary benefits and gifts. A sense of belonging to the organization should be created, which is absolutely nil at this point of time.

3. Recommendations to Enhance Customer Relationships

3.1 Changes in Media Planning One finding from the rural customers survey was that they have not seen the advertisements of Mayur. This means that the ad vehicle that we are using is not effective in that area. Another important thing that should be seen is the low or nil awareness of the consumers in rural areas on brands. That means there is less clutter of brands in their minds and its relatively easy to put our brand name in their minds. So, we should target these greener pastures with a change in our media planning strategy. For rural areas, we should advertise on channels like local cable operator, Aaj tak, Zee news, and Doordarshan. In addition to these ads on TV, there should be heavy focus on ads in the local/ regional newspapers that also mentions name of the retailers. This is going to enhance the visibility of our brand. 3.2 Taking customer feedback

Customer feedback should be taken as a practice and should be viewed seriously. If the customer feedback calls for a change in product mix, it should be examined and explored. The only way that a company can stay young & fresh, is to keep changing with the change in the marketplace.

BRINGING IT TOGETHER
The recommendations given above were focused at different entities like the retailers and the consumers. On each of these fronts, improvements were suggested. But there are certain key areas of improvement, which will become the underlined foundation for these three pillars. These areas are: Build in Quality in the manufacturing process to solve the problems of bobbling & loosening of the cloth. A flexible approach in deciding the product mix, it should be in tune with the times and not ignore the new trends. To sum it up, the company needs to: Network with the retailers Focus the communication Work on product design/patterns and quality.

The forces integrating this process and adding vitality to the whole process are the flows of feedback, Feedback from the consumer to the company Feedback from the retailer to the company (about the market trends) Feedback (of the consumer) from the retailer to the company.

Conclusion
From this survey of consumers & the retailers/agents/wholesalers, some very keen observations & findings have been arrived at. Why are retailers not interested in selling Mayur? Why are the customers not asking for our brand?

These are two different adverse possibilities for a company. Presently, Mayur is facing both these together. From this study, we have been able to identify these two major problems, study the causes behind each of these and recommended actions needed. Thus, we have suggested a plan of recommendations that addresses both of these problems, with a common underlined support through improved product quality and a more focused communication. The crucial factor on which Mayur and for that matter, any other suitings & shirtings manufacturers success depends on is the ease and speed with which they are able to adapt to the changes taking place in the marketplace and offer the same to the consumers.

The Two-Way Linkage with the Retailers is of Strategic Importance because Forces Generated From that Point Would Drive the Entire Growth Journey...

PART C
Appendix

Rajasthan Spinning and Weaving Mills Ltd.

Kharigram, Distt. - Bhilwara (Rajasthan) Questionnaire (Consumer) Name.. Address Age: Occupation: 1) Your monthly Income is a) Below 5000 c) 10000-15000 2) You Purchase clothes a) Once a Year c) Thrice a year b) Twice a year d) occasionally b) 5000-10000 d) 15000 above

3) Do you prefer cloth of local mill or standard mill? .. 4) Which cloth will you prefer: a) Fashionable b) Long lasting c) Long lasting and fashionable 5) When you go to market to buy clothes, which factors are in your mind? List according to preferences? Price consideration Product attributes Brand Image Designs and colours Quality level

5) To which film star do you associate MAYUR Suiting and shirting? Sharukh Khan Virendra Sehwag

6) Which Brand is Preferred By

Name of Brand Husband/Wife Relatives Children Parents Friends Reason for Preference

17) Which other brands do you prefer? Why? . .. (Rank the above brands according to preferences of your purchase)

19) Why you prefer these Brands? Rank accordingly (1- 5)? Brand Image Price consideration Product attributes Persuasion by Salesman Quality level

8) Have you tried Mayur suiting and shirting? Reason? . 9) How do you judge the Quality of cloth? 10) Who is the decision maker for purchasing cloth?... 11) What brands come to your mind when you have to buy clothes?

12) What comes to your mind when you hear of Mayur Suiting and shirting? . 13) Are you aware of Mayurs Geetanjali and Bonsai collection? (Yes/No) a) Print Advertising b) TV. Advertising c) Friends d) Any other

14) What is your opinion about Geetanjali collection? 15) Rank the factors by preference, which you consider while purchasing Mayur? i) Quality ii) Price iii) Availability 16) How satisfied are you with the product of Mayur? i. Highly satisfied ii. Satisfied Moderate satisfied Dissatisfied

Reason. 20) Any suggestions for Mayur Thanks

Rajasthan Spinning and Weaving Mills Ltd.

Kharigram, Distt. - Bhilwara (Rajasthan) Questionnaire (Dealers) Tick mark in appropriate place. No need to write your name at any place on this Envelope. This feedback form is totally confidential.

How many Retailers are working under you?.. Your annual Turnover is.. What is the satisfaction level of the retailers? Satisfactory Fair Good Low Poor .

What are the retailers demands?...

Overall Feedback

How is the overall support of The company? Satisfactory Fair Good Low Poor How is the monetary return? Where you rate your performance?

Reasons & Suggestions

Business Growth What is the performance level Of your regional team? What is the level of your team In extending resources? What is the level of your team In sharing good ideas? How is your team doing with Business growth needs? Satisfactor y Fair Good Low Poor

Reasons & Suggestions

Availability and Delivery How is the availability of Various types of Fabrics? How is the availability of Various shades Range in Mayur? How satisfied are you for The time taken for delivery? What is your opinion regarding The speed of the supplies? Reasons & Suggestions Satisfactor y Fair Good Low Poor

Customer satisfaction What is your opinion regarding the Company assistance in your Quest to provide higher Customer level satisfaction? What is your opinion regarding the Brand image of Mayur? Reasons & Suggestions Accounts and administration How responsive is company in Responding to your accounts Related issues? How friendly are the policies And procedures? Reasons & Suggestions Are you satisfied with your returns and incentives? (Yes/ No) Your suggestions to increase the sales of Mayur? Satisfactor y Fair Good Low Poor Satisfactor y Fair Good Low Poor

Rajasthan Spinning and Weaving Mills Ltd. Kharigram, Distt. - Bhilwara (Rajasthan) Questionnaire (Agents) Tick mark in appropriate place. No need to write your name at any place on this Envelope. This feedback is totally confidential.

How many Dealers are working under you?..

What is the satisfaction level of the Dealers? Satisfactory Fair Good Low Poor .

What are the Dealers demands?...

Overall How is the overall support of the company? How is the monetary return? Where you rate your performance? Satisfactor y Fair Good Low Poor

Reasons & Suggestions Business Growth What is the performance level of your regional team? What is the level of your team in extending resources? What is the level of your team In sharing good ideas? Satisfactor y Fair Good Low Poor

How is your team doing with business growth needs? Reasons & Suggestions

Availability and Delivery How is the availability of various types of Fabrics? How is the availability of Various shades Range in Mayur? How satisfied are you for the time taken for delivery? What is your opinion regarding the speed of the supplies Reasons & Suggestions ... Customer satisfaction What is your opinion regarding the Company assistance in your quest to provide higher Customer level satisfaction? What is your opinion regarding the Brand image of Mayur? Reasons & Suggestions Satisfactor y Fair Good Low Poor Satisfactor y Fair Good Low Poor

Accounts and administration How responsive is company in responding to your accounts related issues? How friendly are the policies and procedures? Reasons & Suggestions Are you satisfied with your returns and incentives? (Yes/ No) Your suggestions to increase the sales of Mayur Satisfactor y Fair Good Low Poor